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Monday 28 August 2017
Erie Woman Admits Dealing FentanylRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
Tiesha Lasha Henderson, 30, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on March 15, 2017, Henderson possessed with intent to distribute 67.27 grams of fentanyl. The fentanyl was discovered when members of the Erie County Drug Task Force executed a search warrant at Henderson’s residence in Erie, Pennsylvania. According to information provided to the court, Henderson attempted to flush the fentanyl down the toilet before officers executed the warrant. The fentanyl was packaged in three baggies, one of which had been diluted or “cut” for redistribution to other individuals in Erie, Pennsylvania.
Judge Cercone scheduled sentencing for December 11, 2017 at 3:00 p.m. The law provides for a minimum sentence of 5 years to a maximum sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Erie County Detective Bureau, the Erie Police Department, the Millcreek Township Police Department and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Henderson.
Erie Man Sentenced to Prison for Illegally Possessing Gun and AmmunitionRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to time served of 20 months in prison on his conviction of violating federal firearms laws, Acting United States Attorney Soo C. Song announced today.
United States District Judge David S. Cercone imposed the sentence on Adam John Carlson, 34.
According to information presented to the court, Carlson possessed a firearm and numerous rounds of ammunition which he was precluded from possessing because of an active protection from abuse order.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
This case was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Acting United States Attorney Song commended the Erie Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Carlson.
Erie Felon Gets Prison Time for Illegally Possessing FirearmRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 32 months in jail on his conviction of violating federal firearms laws, Acting United States Attorney Soo C. Song announced today.
United States District Judge David S. Cercone imposed the sentence on Kevin Dimitri Tate, 24.
According to information presented to the court, Tate unlawfully possessed a .380 ACP firearm while being prohibited from firearm possession because he is a convicted felon.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
This case was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Acting United States Attorney Song commended the Western Pennsylvania Fugitive Task Force, Erie Bureau of Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Tate.
Dorchester Man Sentenced for Firearm OffenseRead the Press Release
BOSTON – A Dorchester man was sentenced today in federal court in Boston for being a felon in possession of three firearms.
Byron Newberry, 44, was sentenced by U.S. District Court Senior Judge Mark L. Wolf to three concurrent terms of 30 months in prison and three years of supervised release. In November 2014, Newberry pleaded guilty to three counts of being a felon in possession of a firearm.
During an investigation into gun sales in Boston’s Dorchester neighborhood from March to April 2012, investigators learned that Newberry and two other co-conspirators possessed illegal firearms and ammunition for sale. During a six-week period, undercover law enforcement officers purchased a shotgun, a semi-automatic rifle with ammunition, and a .38 pistol from Newberry and his co-conspirators.
One of Newberry’s co-conspirators, Michael Collins, was sentenced to 15 years in prison in January 2014.
Acting United States Attorney William D. Weinreb and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Assistant U.S. Attorney Dustin Chao of Weinreb’s Criminal Division prosecuted the case.
Detroit drug dealer sentenced to five years in federal prison for pushing pain pillsRead the Press Release
CHARLESTON, W.Va. – A Detroit man was sentenced today to five years in federal prison for dealing pain pills, announced United States Attorney Carol Casto. Deangelo Cann, 26, originally from Detroit, previously pleaded guilty to distribution of oxymorphone.
Cann admitted that on February 3, 2015, he sold oxymorphone pills to a confidential informant working with law enforcement. The drug deal took place in the parking lot of the Embassy Suites Hotel in Charleston. As part of his plea agreement, Cann further admitted to all the drug trafficking activity charged in the indictment.
The Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney John J. Frail is responsible for the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Defendant Sentenced to 70 Months Imprisonment for Trafficking MethamphetamineRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announced that on August 15, 2017, United States District Judge William H. Steele sentenced Arturo Hernandez-Esquivel, 38, an illegal alien from Mexico, to 70 months in prison for possession with intent to distribute methamphetamine. Judge Steele ordered that the defendant be delivered to a duly authorized immigration official for possible deportation immediately following the completion of his term of incarceration. The court also ordered that Hernandez-Esquivel pay a $100 special assessment and imposed a term of supervised release of five years.
On January 10, 2017, Alabama State Trooper Joseph Bennett observed a gray Jeep SUV following too close behind a commercial vehicle on 1-65 southbound in Baldwin County, Alabama. Trooper Bennett pulled over the vehicle. Hernandez-Esquivel was the driver and sole occupant. Hernandez-Esquivel gave the trooper verbal and written consent to search the vehicle. Law enforcement officials found approximately 478.5 grams of methamphetamine (actual) concealed in the vehicle.
In February 2017, a federal grand jury for the Southern District of Alabama charged Hernandez-Esquivel with one count of possession with intent to distribute methamphetamine in violation of 21 USC § 841(a)(1). On May 11, 2017, the defendant pled guilty to the offense before Judge Steele.
The Drug Enforcement Administration and the Alabama Law Enforcement Agency investigated the case. Assistant United States Attorney Sinan Kalayoglu prosecuted the case.
Contractor Charged in Relation to Cash Kickbacks of Macomb Township OfficialRead the Press Release
An owner of a contracting firm, Christopher Sorrentino, 51, of Macomb Township, was charged today in an information with one count of structuring financial transactions to avoid currency reporting requirements, Acting United States Attorney Daniel L. Lemisch announced.
Lemisch was joined in the announcement by David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Manny Muriel, Special Agent in Charge of the Detroit Field Office of the Internal Revenue Service.
The information alleges that in November of 2014, Sorrentino, at the direction of an elected official of Macomb Township, accepted a check from Macomb Township in payment for work Sorrentino did not perform. Sorrentino deposited the township check into his bank account. The elected official directed that Sorrentino pay him a cash kickback of $66,000. In order to accomplish this without creating a currency transaction report, Sorrentino wrote seven checks in amounts slightly less than $10,000. Sorrentino then caused all of the checks to be cashed and provided $66,000 in cash to the elected official.
This case is part of the government’s wide-ranging corruption investigation centered in Macomb County, Michigan. The investigation of this case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey and R. Michael Bullotta.
The charge carries a maximum sentence of 5 years’ imprisonment and a fine of $250,000
An information is only a charging document 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.
Construction Manager and Financier Who Laundered Money for Calexico Tunnel Organization Pleads GuiltyRead the Press Release
Assistant U. S. Attorney Sherri Walker Hobson (619) 961-0287
NEWS RELEASE SUMMARY – August 28, 2017
SAN DIEGO – Habib Sayb Mujica, an American citizen who spent almost six years in a Mexican prison for firearms trafficking only to be arrested in the U.S. upon his release, pleaded guilty in federal court today to tunnel-related charges.
According to his plea agreement, Mujica, 35 admitted that he participated in a conspiracy to construct, finance and use an unfinished tunnel that was discovered in Calexico in 2011. The tunnel was discovered by Homeland Security Investigations agents at a warehouse at 361 W. 2nd Street in Calexico.
Mujica acknowledged in his plea agreement that he instructed Ricardo Rosales-Rafael to rent the large Calexico warehouse with drug proceeds. He further admitted that approximately $340,172 in cash was deposited into bank accounts to facilitate the rental of the Calexico warehouse and to rent various machines and tools to construct the tunnel’s exit point for the purpose of smuggling controlled substances.
Mujica also admitted that he intended to operate a business known as Baja Bikes, but this was only a front to conceal the tunnel activities inside. To construct the tunnel, Mujica arranged for a Horizontal Directional Drilling Machine (HDD) to initiate the construction of a tunnel, and purchased multiple tools and equipment, including alignment tools, pipes, level tripod, jack hammer, drills, electric saws, forklift hydraulic lift, air compressors and tool boxes.
Mujica, who recently completed a sentence of almost six years in a Mexican prison following his conviction for gun trafficking there, was expelled from Mexico to the United States in May 2017. He was arrested by U.S. authorities after his explusion.
Mujica is scheduled to be sentenced for the tunnel-related crimes on November 27, 2017, at 9 a.m. before Judge Thomas Whelan. Mujica also faces gun charges in an unrelated criminal case, criminal case number 11cr3531JAH.
The following photos depict the warehouse and the Horizontal Directional Drilling Machine used to construct the tunnel:
DEFENDANT Case Number 17CR2505W
Habib Sayb Mujica Age: 35 Calexico, California
SUMMARY OF CHARGES
Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h)
Maximum penalty: 20 years’ imprisonment and $500,000 fine
Conspiracy to Construct, Finance, and Use Tunnel – Title 18,U.S.C. Section 555
Maximum penalty: 20 years’ imprisonment and $250,000 fine
AGENCY
Homeland Security Investigations, Calexico
Chicago Police Officer Convicted of Federal Civil Rights ViolationsRead the Press Release
CHICAGO — A federal jury today convicted a Chicago police officer of federal civil rights violations for using unreasonable force against two individuals while on duty.
MARCO PROANO was convicted on both counts of deprivation of rights under color of law. Proano used unreasonable force with his service weapon while on duty as an officer of the Chicago Police Department on Dec. 22, 2013. Proano fired 16 shots into a vehicle that contained numerous people, wounding two individuals who suffered bodily injuries as a result of the unreasonable force.
The jury returned its verdict against Proano, of Chicago, after a week-long trial in the courtroom of U.S. District Judge Gary Feinerman.
The conviction was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
Each count of the indictment is punishable by up to ten years in prison. Judge Feinerman scheduled a sentencing hearing for Nov. 20, 2017, at 2:00 p.m.
The government is represented by Assistant U.S. Attorneys Georgia Alexakis and Erika Csicsila.
Career Offender Sentenced to More Than Ten Years for Dealing Methamphetamine and Crack CocaineRead the Press Release
Tampa, FL – U.S. District Judge Charlene E. Honeywell has sentenced Dameon Q. McDonald (38, Plant City) to 12 years and 10 months in federal prison for possessing with the intent to distribute crack cocaine and 5 grams or more of methamphetamine. He pleaded guilty on May 22, 2017.
According to court documents, on February 24, 2017, law enforcement officers executed a search warrant at a Plant City home. As soon as they entered, McDonald tried to flee, carrying a blue bag in his hand. Officers stopped him as he was about to exit the backdoor. Among the items in McDonald’s bag were $4,078 in cash, more than 20 grams of 99%-pure methamphetamine, and distribution quantities of crack cocaine and marijuana. McDonald has numerous prior convictions, including several prior drug-trafficking offenses.
This case was investigated by the Plant City Police Department and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Gregory T. Nolan.
Bureau of Prisons Employee Sentenced for Providing Marijuana to PrisonerRead the Press Release
CLARKSBURG, WEST VIRGINIA – Cody Tyler Layman of Terra Alta, West Virginia, was sentenced today to eight months incarceration for providing an inmate with marijuana, Acting United States Attorney Betsy Steinfeld Jividen and Department of Justice Office of the Inspector General Special Agent-in-Charge Michael P. Tompkins announced.
Layman, age 32, pled guilty to one count of “Introduction of a Prohibited Object - Marijuana” in April 2017. Layman admitted to providing an inmate with marijuana at the United States Penitentiary Hazelton on August 27, 2016.
“The introduction of contraband into our facilities is an issue of critical concern,” said Acting United States Attorney Betsy Jividen, “as it places both staff and population at significant risk of harm. When the contraband is introduced by an officer, who is empowered with a position of trust and authority, the violation is an egregious affront to the rule of law, and to the thousands of correctional workers everywhere who serve at great personal risk and peril for the greater good of all.”
Layman resigned from his position at the USP during the investigation.“Corruption of those who work in our prisons undermines the public’s faith in the criminal justice system,” stated Office of the Inspector General Special Agent-in-Charge Michael P. Tompkins. “The OIG is committed to investigating these cases to help ensure that those who engage in corruption and misconduct are brought to justice.”
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The Department of Justice, Office of the Inspector General investigated.
Senior U.S. District Judge Irene M. Keeley presided.Buffalo Man Sentenced on Heroin ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-305BUFFALO, N.Y. — Acting U. S. Attorney James P. Kennedy, Jr. announced today that Dellsean Hamilton, 28, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and distribution of, heroin and fentanyl and being a felon in possession of a firearm, was sentenced to 100 months in prison and six years supervised release by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that between March 2015, and February 29, 2016, the defendant conspired with Brittney Ridgeway and others to sell heroin and fentanyl. During the course of the conspiracy, Hamilton and Ridgeway regularly sold heroin, fentanyl, and butyryl fentanyl in the Buffalo and Cheektowaga areas. On March 25, 2015, Cheektowaga Police conducted a traffic stop of a vehicle occupied by Ridgeway, the defendant and a juvenile and recovered $2,315 in cash. Ridgeway was found with 141 envelopes containing nearly four grams of fentanyl.
On July 15, 2015, the Erie County Sheriff’s Narcotics Unit executed warrants at two residences linked to Hamilton. At 16 Dash Street, deputies seized drug paraphernalia, including wax envelopes commonly used to package heroin. At 75 Edison Street, they seized approximately 2,000 wax envelopes containing approximately 50 grams of heroin, additional envelopes containing more than a gram of a mixture of heroin, fentanyl, and butyryl fentanyl, three firearms, and a digital scale.
Hamilton was arrested on state charges and while on bail, the defendant and Ridgeway continued their narcotics trafficking activities. On December 11, 18 and 23, 2015, Hamilton sold butyryl fentanyl to a confidential source working with the Drug Enforcement Administration and the Cheektowaga Police Department. This resulted in a federal search warrant and arrest warrant. On January 11, 2016, the defendant was arrested and found in possession of a large amount of cash and baggies containing approximately a gram of fentanyl. Inside of Hamilton’s vehicle, which was occupied by Ridgeway, officers seized approximately $5,000 in cash. During a subsequent search of Hamilton’s residence at 1150 East Lovejoy in Buffalo, officers seized a semi-automatic pistol and ammunition.
While incarcerated on the federal charges, Hamilton continued his drug trafficking activities with Ridgeway. Specifically, during a recorded jail call between the two, Hamilton instructed Ridgeway not to consent to the search of a residence again. Ridgeway then continued trafficking heroin as Hamilton had done prior to his incarceration. On February 4 and 11, 2016, Ridgeway sold butryrl fentanyl and fentanyl, respectively, to a confidential source working with DEA and the Cheektowaga Police Department.
Brittney Ridgeway was convicted and sentenced to time served (approximately 16 months) in prison.
Today’s sentencing is the culmination of an investigation by the Cheektowaga Police Department, under the direction of Chief David Zack; the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Buckeye Lake Man Sentenced to 24 Years for Receiving, Possessing Child Pornography While on Supervised ReleaseRead the Press Release
COLUMBUS, Ohio – Joshua D. Chapman-Sexton, 31, of Buckeye Lake, Ohio, was sentenced in U.S. District Court to 292 months in prison and a lifetime of supervised release for receiving and possessing child pornography while on supervised release.
Chapman-Sexton was convicted of all counts charged following a four-day trial in February. He had been previously convicted of similar federal charges in 2010 and had been released from prison after serving his sentence.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Westerville Police Chief Joe Morbitzer, Buckeye Lake Police Chief Jimmy Hanzey and members of the FBI’s Child Exploitation Task Force announced the sentence handed down Friday by U.S. District Judge Algenon L. Marbley.
According to court documents and testimony, a thumb drive and PlayStation gaming console taken from Chapman-Sexton's home contained more than 700 images of children engaged in sexual activity and evidence of online searches for child pornography and other sites related to sexual activity with children.
Despite the defendant’s claim that he had been set up and the child pornography was planted on the device when it was stolen on February 28, 2016, forensic evidence revealed that the child pornography had been downloaded continuously from July 2014 until February 27, 2016.
Chapman-Sexton was indicted by a federal grand jury of two counts of receipt of child pornography and one count of possession of child pornography in July 2016.
“Only a few months into his term of supervised release for his possession of child pornography conviction, the defendant began searching for child pornography again,” U.S. Attorney Glassman said. “Some of the files that he accessed and saved to a thumb drive were identical to the videos he had possessed on his computer in 2010. Many others depicted prepubescent boys suffering unimaginable sexual abuse. The circumstances of Chapman-Sexton’s offenses clearly demonstrate the need to protect the public through the significant period of imprisonment received today.”
U.S. Attorney Glassman commended the investigation by the FBI’s Child Exploitation Task Force, as well as Assistant United States Attorneys Heather A. Hill and Jessica W. Knight, who represented the United States in this case.
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Bradenton Fentanyl Dealer Sentenced to PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich has sentenced Jarvis Lanard McCants (29, Bradenton) to 12 years and 6 months in federal prison for conspiring to possess with the intent to distribute fentanyl. He pleaded guilty on May 4, 2017.
According to court documents, law enforcement officers received information on McCants and his drug trafficking activities. They then executed a search warrant at McCants’s residence in Bradenton. Agents approached McCants as he sat in the driver’s seat of a vehicle near his home, identified themselves, and ordered him out of the vehicle. McCants disregarded the commands and drove away at a high rate of speed, eventually striking another vehicle. He then exited the vehicle and fled on foot, but was soon apprehended.
During a search of the residence, agents recovered narcotics, including 22 grams of a brown powdery substance that tested positive for fentanyl and 23 grams of white powder that tested positive for cocaine, along with drug paraphernalia, a loaded firearm, and $8,656 in cash.
This case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Manatee County Sheriff’s Office, and the Bradenton Police Department. It was prosecuted by Assistant United States Attorney Shauna S. Hale.
Arkansas Man Sentenced to Prison for Federal Drug Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Dellrick Davonte Smith, 24, of Monticello, Ark., was sentenced today in federal court in Albuquerque, N.M., to 36 months in prison followed by five years of supervised release for his methamphetamine trafficking conviction.
Smith was arrested in March 2017, and was charged with a methamphetamine trafficking offense after the DEA seized 1.4 kilograms (3.136 pounds) of methamphetamine from him during an interdiction investigation at the Greyhound Bus Station. The methamphetamine was concealed in various bundles taped to Smith’s body.
Smith subsequently was indicted on April 11, 2017, and was charged with possession of methamphetamine with intent to distribute on March 24, 2017, in Bernalillo County, N.M.
On May 24, 2017, Smith pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Smith admitted transporting 1.4 kilograms of methamphetamine to Albuquerque on a Greyhound bus by concealing the methamphetamine in bundles strapped to his body.
This case was investigated by the Albuquerque office of the DEA and Assistant U.S. Attorney George C. Kraehe prosecuted the case.
Amarillo Man Convicted on Drug and Firearm Charges Faces Life in Federal PrisonRead the Press Release
AMARILLO — Following a four-day jury trial before U.S. District Judge Sidney A. Fitzwater, a federal jury has convicted Moises Jimenez, 39, on felony drug and firearm offenses, announced U.S. Attorney John Parker of the Northern District of Texas.
Jimenez was convicted yesterday on one count of distribution and possession with intent to distribute cocaine, one count of distribution and possession with intent to distribute 500 grams or more of methamphetamine, and one count of possession of a firearm in furtherance of a drug trafficking crime. Jimenez faces a mandatory sentence of life in federal prison. Sentencing is scheduled for December 4, 2017.
The government presented evidence at trial that on January 20, 2015, the Amarillo Police Department executed a search warrant at Moises Jimenez’s apartment. A search of the apartment yielded one kilogram of methamphetamine, almost 300 grams of cocaine, a Lorcin, .25 caliber pistol, approximately $22,000 in cash, and drug trafficking paraphernalia. During post-arrest interviews with a detective of the Amarillo Police Department, Jimenez admitted to possessing the controlled substances and firearm. He also admitted that he had delivered 50 pounds of methamphetamine less than a week before officers executed the search warrant. A search of Jimenez’s cell phones yielded text messages consistent with drug trafficking. Further, recorded telephone calls made by Jimenez while he was in jail corroborated his involvement in drug trafficking.
The Amarillo Police Department investigated the case with the assistance of the Drug Enforcement Administration. Assistant U.S. Attorneys Russell Lorfing and Sean Long prosecuted the case.
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Albuquerque Felon Pleads Guilty to Unlawfully Possessing Firearms and AmmunitionRead the Press Release
ALBUQUERQUE – Jason M. Lutz, 39, of Albuquerque, N.M., pled guilty today in federal court to violating the federal firearms laws by unlawfully possessing firearms and ammunition. Under the terms of his plea agreement, Lutz will be sentenced to 100 months in prison followed by three years of supervised release.
Lutz, whose prior criminal history includes convictions for conspiracy to commit kidnapping, distribution of methamphetamine and aggravated assault with a deadly weapon, is being prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Lutz was arrested in Oct. 2015, on an indictment charging him with being a felon in possession of firearms and ammunition on July 31, 2014, in Bernalillo County, N.M. At the time, Lutz was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
During today’s proceedings, Lutz pled guilty to the indictment and admitted that possessing two firearms and multiple rounds of ammunition on July 31, 2014, despite his status as a convicted felon. Lutz remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the New Mexico State Police and is being prosecuted by Assistant U.S. Attorney George C. Kraehe.
Action for Defrauding a Program for Individuals with Developmental Disabilities Settles for Approximately $2 MRead the Press Release
SACRAMENTO, Calif. — Two Bay Area companies and the two individuals who head them will pay approximately $2 million to resolve federal and state False Claims Act allegations that they knowingly overbilled a program designed to serve Californians with developmental disabilities, U.S. Attorney Phillip A. Talbert announced today.
A federal lawsuit, filed by whistleblower Beverly McCaffery, contends that Alternative Learning Center, its president Alice Soard, Adult Educational Technologies Inc., and its executive director Wendell James defrauded California’s Department of Developmental Services (DDS) by billing for services that were never provided. The lawsuit was brought in the Eastern District of California because the false claims were submitted to the DDS in Sacramento.
“These defendants took advantage of a government program designed to help some of our most vulnerable citizens, diverting funds over a number of years that may have been used to provide services to others in need,” said U.S. Attorney Talbert. “My office will continue to work closely with our federal and state partners to safeguard the integrity of this important program, and results like this one help accomplish that objective. We encourage anyone who has additional information about abuse of this program to come forward.”
“It is reprehensible that Adult Educational Technologies, Alternative Learning Center, Alice Soard, and Wendell James charged Medicaid for services that were never provided to developmentally disabled patients — services that were badly needed,” said Special Agent in Charge Steven J. Ryan of U.S. Department of Health and Human Services Office of Inspector General, San Francisco Regional Office. “Such repulsive scams, which cheat both patients and taxpayers, will not be tolerated. Thanks to our hardworking investigators and our law enforcement partners, these companies and executives will pay dearly for their heartless behavior.”
DDS administers programs that enable individuals with developmental disabilities to live in the community instead of being institutionalized. DDS contracts with nonprofit regional centers around the state, who in turn contract with “vendors,” such as Alternative Learning Center and Adult Educational Technologies Inc., who commit to provide in-home support to these individuals, including personal care and homemaking.
According to the settlement agreement, Alternative Learning Center and Adult Educational Technologies Inc. were authorized to provide services in Alameda and Contra Costa counties. It is alleged that the defendants submitted claims for payment for services that were never performed, fraudulently retained overpayments to which they knew they were not entitled and intentionally falsified documents to reflect services that were never actually performed in order to provide support for their false claims for payment.
The terms of the settlement require each defendant to make substantial up-front payments to the United States and California, along with additional payments over a period of time, plus interest. Alternative Learning Center will pay a total of $562,600, Adult Educational Technologies, Inc. will pay $322,500, Alice Soard will pay $159,400, and Wendell James will pay $107,500. Alice Soard has also agreed to sell her primary residence and remit the proceeds to the government.
The False Claims Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. Ms. McCaffery will receive a 20 percent share of all settlement proceeds paid to the United States.
This case was investigated by the United States Office of Inspector General of the U.S. Department of Health and Human Services, the Federal Bureau of Investigation, and the California Department of Justice, Office of the Attorney General, Bureau of Medi-Cal Fraud and Elder Abuse. Assistant U.S. Attorney Colleen M. Kennedy handled the case.
Friday 25 August 2017
Volkswagen Engineer Sentenced for His Role in Conspiracy to Cheat U.S. Emissions TestsRead the Press Release
A Volkswagen engineer was sentenced today by U.S. District Judge Sean F. Cox of the Eastern District of Michigan to 40 months in federal prison, and two years of supervised release, for his role in a nearly 10-year conspiracy to defraud U.S. regulators and Volkswagen customers by implementing software specifically designed to cheat emissions tests in hundreds of thousands of Volkswagen “clean diesel” vehicles sold in the U.S., the Justice Department announced today. During the hearing, the Court noted that the sentence took into consideration the defendant’s cooperation in the investigation and prosecution of the company and others.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Deputy Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division, and Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan made the announcement.
James Robert Liang, 63, of Newbury Park, Calif., pleaded guilty last year to one count of conspiracy to defraud the U.S., commit wire fraud and violate the Clean Air Act.
In connection with his guilty plea, the defendant admitted that he was employed by Volkswagen AG (VW) from 1983 until May 2008, working in its diesel development department in Wolfsburg, Germany. Beginning in about 2006, he and his co-conspirators began to design a new “EA 189” diesel engine for sale in the U.S. When Liang and his co-conspirators realized that they could not design a diesel engine that would meet the stricter U.S. emissions standards, they designed and implemented software to recognize whether a vehicle was undergoing standard U.S. emissions testing on a dynamometer, versus being driven on the road under normal driving conditions (the defeat device), in order to cheat U.S. emissions tests. VW tasked Liang with making the defeat device work by calibrating it to recognize specific U.S. emissions tests’ drive cycles. In May 2008, Liang moved to the U.S. to assist in the launch of VW’s new “clean diesel” vehicles in the U.S. market. While working at VW’s testing facility in Oxnard, California, he held the title of Leader of Diesel Competence.
Liang further admitted that, for over eight years, employees of VW and its U.S. subsidiary met with the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board (CARB) to seek the certifications required to sell each model year of its vehicles to U.S. customers. During these meetings, some of which Liang personally attended, Liang’s co-conspirators lied to the regulators by telling them that the VW diesel vehicles complied with U.S. emissions standards. Instead, these diesel vehicles were cheating the U.S. emissions test through use of the defeat device.
Liang admitted that for each new model year from 2009 through 2016, Liang’s co-conspirators continued to falsely and fraudulently certify to EPA and CARB that VW diesel vehicles met U.S. emissions standards and complied with the Clean Air Act. Liang further admitted that he and his co-conspirators knew that VW falsely marketed VW diesel vehicles as “clean diesel” and environmentally-friendly, while, at the same time, promoting the vehicles’ increased fuel economy, a result achieved by using the defeat device. At the same time, Liang and his co-conspirators also continued to improve and refine the defeat device to better recognize when the VW diesel vehicles were being tested versus being driven on the road.
Liang also admitted that he helped his co-conspirators continue to lie to the EPA, CARB and VW customers even after the regulatory agencies started raising questions about the vehicles’ on-road performance following an independent study commissioned by the International Council on Clean Transportation, which showed that the diesel vehicles’ emissions on the road were more than 30 times higher than shown on the dynamometer.
The FBI’s Detroit Office and EPA-CID are investigating the case. Deputy Chief Benjamin D. Singer and Trial Attorney Alison L. Anderson of the Criminal Division’s Fraud Section, Senior Trial Attorney Jennifer L. Blackwell of the Environment and Natural Resources Division, and Criminal Division Chief Mark Chutkow and Economic Crimes Unit Chief John K. Neal of the U.S. Attorney’s Office of the Eastern District of Michigan are prosecuting the case.
Volkswagen Engineer Sentenced for His Role in Conspiracy to Cheat U.S. Emissions TestsRead the Press Release
DETROIT, Michigan – James Robert Liang, a Volkswagen engineer, was sentenced today by U.S. District Judge Sean F. Cox of the Eastern District of Michigan to 40 months in federal prison for his role in a nearly 10-year conspiracy to defraud U.S. regulators and U.S. Volkswagen customers by implementing software specifically designed to cheat U.S. emissions tests in hundreds of thousands of Volkswagen “clean diesel” vehicles, the Justice Department announced today.
Liang, 63, of Newbury Park, California, pleaded guilty last year to one count of conspiracy to defraud the United States, to commit wire fraud, and to violate the Clean Air Act. According to court records, from 1983 until May 2008, Liang was an employee of Volkswagen AG (VW), working in its diesel development department in Wolfsburg, Germany.
Acting United States Attorney Daniel L. Lemisch stated, “This sentence sends a strong message of deterrence to automotive engineers and executives who should think twice before knowingly breaking United States laws for the benefit of their employer.”
“The actions of James Robert Liang and others with which he conspired to fraudulently represent that Volkswagen AG was in compliance with regulatory emissions standards significantly impacted thousands of victim consumers”, said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. “Today’s sentencing is significant as it demonstrates there is and will be personal culpability for corporate executives who knowingly cheat American consumers, violate federal laws, and purposely utilize technologies that further endanger our environment."
"As this case demonstrates, the U.S. Environmental Protection Agency is committed to ensuring a level playing field for companies that follow the rules and pursuing individuals whose actions create an unfair competitive advantage for their employer," said Larry Starfield, Acting Assistant Administrator for EPA's Office of Enforcement and Compliance Assurance.
Beginning in about 2006, he and his co-conspirators started to design a new “EA 189” diesel engine for sale in the United States, according to the plea agreement. When Liang and his co-conspirators realized that they could not design a diesel engine that would meet the stricter U.S. emissions standards, they designed and implemented software to recognize whether a vehicle was undergoing standard U.S. emissions testing on a dynamometer or being driven on the road under normal driving conditions (the defeat device), in order to cheat U.S. emissions tests. VW tasked Liang with making the defeat device work by calibrating it to recognize specific U.S. emissions tests’ drive cycles. In May 2008, Liang moved to the United States to assist in the launch of VW’s new “clean diesel” vehicles in the U.S. market. While working at VW’s testing facility in Oxnard, California, he held the title of Leader of Diesel Competence.
According to Liang’s plea agreement, for over eight years, employees of VW and its U.S. subsidiary met with the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board (CARB) to seek the certifications required to sell each model year of its vehicles to U.S. customers. During these meetings, some of which Liang personally attended, Liang and his co-conspirators lied to the regulators by telling them that the VW diesel vehicles complied with U.S. emissions standards, when, in fact, they did not. Instead, these diesel vehicles were cheating the U.S. emissions test through use of the defeat device.
For each new model year from 2009 through 2016, Liang’s co-conspirators continued to falsely and fraudulently certify to EPA and CARB that VW diesel vehicles met U.S. emissions standards and complied with the Clean Air Act, according to the plea agreement. Liang admitted that during this time, he and his co-conspirators lied to the U.S. public by marketing VW diesel vehicles as “clean diesel” and environmentally-friendly, while, at the same time, promoting the vehicles’ increased fuel economy, a result achieved by using the defeat device. At the same time, Liang and his co-conspirators also continued to improve and refine the defeat device to better recognize when the VW diesel vehicles were being tested versus being driven on the road.
In connection with pleading guilty, Liang admitted that he helped his co-conspirators continue to lie to the EPA, CARB, and VW customers even after the regulatory agencies started raising questions about the vehicles’ on-road performance following an independent study commissioned by the International Council on Clean Transportation, which showed that the diesel vehicles’ emissions on the road were more than 30 times higher than shown on the dynamometer.
The FBI’s Detroit Office and EPA-CID are investigating the case. Deputy Chief Benjamin D. Singer and Trial Attorney Alison L. Anderson of the Criminal Division’s Fraud Section, Senior Trial Attorney Jennifer L. Blackwell of the Environment and Natural Resources Division, and Criminal Division Chief Mark Chutkow and Economic Crimes Unit Chief John K. Neal of the U.S. Attorney’s Office of the Eastern District of Michigan are prosecuting the case.
Two California Men Indicted on Cocaine ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-305
BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a three-count indictment charging Armando Ernesto Abarca, 21, of Modesto, California, and Raul Everado Ledesma Abarca, 34, of San Diego, California with conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine, possession with intent to distribute five kilograms or more of cocaine, and maintaining a drug-involved premises. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the indictment, between September 2014, and September 2016, the defendants conspired with others to possess and distribute cocaine. The defendants are also accused of renting a storage unit in Amherst, NY to store the cocaine.
The defendants were arraigned before U.S. Magistrate Judge Michael J. Roemer and are being held.
The indictment is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; Immigration and Custom Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; and the Internal Revenue Service, Criminal Investigations Division, under the direction of James D. Robnett, Special Agent-in-Charge, New York Field Office. Additional assistance was provided by ICE-HSI in Los Angeles, California.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Texas Residents Indicted for Laundering and Structuring Proceeds from Sale of Second-Hand Prescription DrugsRead the Press Release
A federal grand jury sitting in Houston, Texas returned an indictment, which was unsealed today, charging two Texas residents with conspiring to commit money laundering and structuring currency transactions, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Abe Martinez for the Southern District of Texas. One of the defendants was also charged with tax evasion, filing false tax returns and failing to file tax returns.
Kenneth J. Coleman, 50, and Marcus T. Weathersby, 44, are charged in a nine-count indictment filed in the Southern District of Texas. According to the indictment and information provided to the court, Coleman owned Acacia Pharma Distributors Inc. and Four Corner Suppliers Inc., which allegedly purchased bottles of prescription medications from illegitimate sources and then sold the medications to another wholesale distributor who then sold them to pharmacies as new. Federal regulation requires wholesale distributors of prescription medications to provide to a buyer a pedigree – a written statement identifying each prior sale, purchase or trade of the drugs being sold that includes the business name and information of all parties to the prior transactions, starting with the manufacturer. Coleman and Weathersby are alleged to have created false pedigrees, which were provided to the wholesale distributor to whom Acacia and Four Corners sold the drugs. That distributor allegedly withheld payment until these false pedigrees were received.
The indictment alleges that Coleman and Weathersby deposited proceeds from the fraudulent sale of these second-hand prescription drugs into Acacia’s and Four Corner’s business bank accounts and used the funds to pay the suppliers of the illicit pharmaceuticals. Coleman and Weathersby are also charged with making approximately 240 cash withdrawals, totaling over $2 million in amounts less than $10,000, to evade bank-reporting requirements.
Coleman is also charged with evading Acacia’s and Four Corner’s income tax liabilities, filing false 2012 and 2013 individual income tax returns and failing to file individual and corporate tax returns. Weathersby was arraigned earlier today and detained pending his trial set for Oct. 16 in front of U.S. District Court Judge Lee H. Rosenthal. Coleman made his initial Court appearance earlier today and has been released on bond.
If convicted, Coleman and Weathersby face a statutory maximum sentence of 20 years in prison for the money laundering conspiracy and a maximum sentence of five years for the conspiracy to structure currency transactions. Coleman also faces a five-year statutory maximum sentence for each count of tax evasion, a maximum sentence of three years in prison for each count of filing a false tax return, and up to one year in jail for the failure-to-file charges. Both Coleman and Weathersby face a period of supervised release, restitution, forfeiture and monetary penalties.
An indictment is not a finding of guilt. It merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Martinez thanked agents of IRS Criminal Investigation, the FBI, and the Federal Department of Agriculture, who conducted the investigation, and Trial Attorneys Sean Beaty and Terri-Lei O’Malley of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Stilwell Man Pleads Guilty to Sexual Abuse of A Minor in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that STEVEN DON WALLIS, age 30, of Stilwell, Oklahoma, pled guilty to SEXUAL ABUSE OF A MINOR OR WARD IN INDIAN COUNTRY, in violation of Title 18, United States Code, Sections 1153 and 2243(a), punishable by up to 15 years imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that from in or about January 2017 to on or about April 5, 2017, in Indian Country, within the special maritime and territorial jurisdiction of the United States, in the Eastern District of Oklahoma, the defendant, STEVEN DON WALLIS, an Indian, did knowingly engage in and attempt to engage in sexual acts with a female child who had attained the age of 12 years but had not attained the age of 16 years and who was at least four years younger than the defendant.
The charge arose from an investigation by the Adair County Sheriff’s Office, the Cherokee Nation Marshal Service, and the Federal Bureau of Investigation.
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 Edward Snow represented the United States.
St. Francis Man Charged for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
George Scott, age 32, was indicted on August 16, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 22, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
In November 2012, Scott was convicted of Abusive Sexual Contact. As a result of his conviction, he is required to register as a sex offender. It is alleged that between March 30, 2017, and June 8, 2017, Scott, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under Federal Law, failed to properly register as a sex offender.
The charge is merely an accusation and Scott is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the United States Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Scott was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Siblings from Picuris Pueblo Sentenced to Prison for Federal Assault and Firearms ConvictionsRead the Press Release
ALBUQUERQUE – Steven Archuleta, 26, and his sister, Cheryl Shemayme-Archuleta, 33, both members and residents of Picuris Pueblo, N.M., were sentenced late yesterday afternoon in federal court in Albuquerque, N.M., for their convictions on assault and firearms charges. Archuleta was sentenced to 111 months in prison followed by three years of supervised release, and Shemayme-Archuleta was sentenced to 60 months in prison followed by three years of supervised release.
Archuleta was arrested on July 21, 2016, on a criminal complaint charging him with assaulting a non-Indian man and a non-Indian woman with a dangerous weapon and using a firearm during a crime of violence on July 17, 2016, in Indian Country in Taos County, N.M. According to the complaint, on July 17, 2016, Archuleta shot at the victims from his vehicle, striking the male victim in the leg, groin and back.
Archuleta was subsequently charged on Aug. 10, 2016, in a four-count indictment with assaulting each of the two victims with a dangerous weapon, assaulting the male victim and causing him serious bodily injury, and discharging a firearm in relation to a crime of violence. The indictment charged Shemayme-Archuleta with aiding and abetting Archuleta in committing the four crimes. According to the indictment, the defendants committed the crimes on July 17, 2016, in Taos Pueblo.
On Jan. 6, 2017, Archuleta pled guilty to a felony information charging him with assault resulting in serious bodily injury and brandishing a firearm during a crime of violence. In entering the guilty plea, Archuleta admitted that on July 17, 2016, he fired four rounds at the victims’ vehicle, and acknowledged that the male victim was struck by shrapnel in addition to sustaining a gunshot to the leg. Archuleta also acknowledged that Shemayme-Archuleta drove the vehicle he was in during the shooting.
Shemayme-Archuleta also entered a guilty plea on Jan. 6, 2017, to a felony information charging her with aiding and abetting the possession of a firearm during a crime of violence. In entering the guilty plea, Shemayme-Archuleta admitted that on July 17, 2016, she aided and abetted Archuleta when he shot at the victims’ vehicle by picking up the firearm while knowing that the firearm would be used to assault the victims, and driving Archuleta when he committed the assault.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Joseph M. Spindle.
Shreveport man sentenced to more than 12 years in prison for receiving child pornographyRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Shreveport man was sentenced Wednesday to 151 months in prison for receiving child pornography.
James Vail, 52, of Shreveport, was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of receipt of child pornography. He was also sentenced to 10 years of supervised release. According to the April 18, 2017 guilty plea, state police detected Vail downloading and trading images of child pornography using his computer via an internet-enabled electronic device. State police searched his home, and Vail admitted during the search that he used an online peer-to-peer program to trade child pornography. A forensic examination of his computer revealed numerous images of child pornography downloaded from October 2015 to June 2016.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
The U.S. Department of Homeland Security and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.
Saratoga County Man Indicted on Child Pornography ChargeRead the Press Release
ALBANY, NEW YORK – Peter Farnum, age 41, of Ballston Lake, New York, was indicted yesterday for possession of child pornography.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Farnum was arrested July 26, 2017, on a criminal complaint. According to the complaint, Farnum used a home computer between October 2015 and April 2016 to view and store thousands of files containing child pornography. As alleged in the complaint and indictment, the images included children under 12 years old.
The charges in the complaint and indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Farnum will be arraigned at a later date. If convicted, he faces up to 20 years in prison, a maximum $250,000 fine, and a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI and its Child Exploitation Task Force, with the assistance of the Saratoga County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Joseph A. Giovannetti.
San Francisco Man Sentenced to 20 Years in Prison for International Methamphetamine ConspiracyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that NASER YOUSEF GHEITH, a/k/a “Nick,” age 38, from San Francisco, California, was sentenced yesterday for his participation in an international methamphetamine distribution scheme.
U.S. District Judge Lance M. Africk sentenced GHEITH to 20 years imprisonment, followed by 10 years of supervised release.
According to court documents, GHEITH previously pled guilty to one count of conspiracy to distribute and possession with intent to distribute 500 grams or more of methamphetamine. GHEITH was a member of a methamphetamine distribution ring that extended from California to Louisiana and Germany. The seizures in this case included approximately two pounds of methamphetamine recovered in Texas from a vehicle that was traveling from San Francisco to New Orleans, as well as shipments of methamphetamine that were intercepted in Cologne, Germany, by the German Customs Investigation Bureau (the Zollkriminalamt or ZKA).
GHEITH is the second of three defendants to have pled guilty in this case. Previously, CHRISTOPHER BYRON FRITCHIE was sentenced to 90 months in prison for his role in the scheme. A third defendant, RYAN ERNST NYBERG, is still at large. NYBERG acquired German citizenship and agents believe he is still residing in Germany.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration (DEA). The DEA New Orleans Division Office investigated this case with assistance from the DEA Frankfurt, Germany Country Office and the DEA San Francisco Division Office. Assistance was also provided by the German Customs Investigation Bureau (the Zollkriminalamt or ZKA) and the Texas Department of Public Safety. Assistant United States Attorneys Matthew Payne and Maria Carboni are in charge of the prosecution.
Sacramento Man Sentenced to over Four Years in Prison for Filing False Tax ReturnsRead the Press Release
SACRAMENTO, Calif. — Omar Kabiljagic, 46, of Sacramento, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to four years and three months in prison for filing fraudulent tax returns, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented during a four-day trial, Kabiljagic submitted a series of fraudulent tax returns to the Internal Revenue Service falsely reporting that in 2008 and 2009, he earned interest from “original issue discount” (OID) bonds. He falsely reported that this interest income had been withheld by various financial institutions, and claimed that this entitled him to hundreds of thousands of dollars in tax refunds. The IRS repeatedly warned Kabiljagic that his filings were frivolous and that he risked criminal charges if he persisted. Nevertheless, on June 25, 2009, Kabiljagic filed two more tax returns that falsely claimed refunds totaling $863,520.
Kabiljagic’s co-defendant, Suvada Mahmutovic, 67, pleaded guilty to filing a false claim using the same scheme. One of Mahmutovic’s claims resulted in a fraudulent refund of more than $263,000, which Kabiljagic helped her cash. On July 6, 2017, Mahmutovic was sentenced to 21 months in prison.
“Despite being warned several times, Mr. Kabiljagic repeatedly and persistently filed false tax returns with IRS,” said Michael T. Batdorf, Special Agent in Charge IRS Criminal Investigation. “When his scheme finally worked, he helped his co-defendant open a bank account, carried the cash home in a duffle bag, and wired it overseas through his own bank accounts. Once again this shows the severe nature of fraudulent tax refund schemes perpetrated against the IRS. Today’s sentencing sends a clear message that those involved in these types of schemes will be held accountable for their crimes.”
On April 4, 2017, a jury found Kabiljagic guilty of two counts of filing fraudulent tax returns. In sentencing Kabiljagic, Judge Burrell found that Kabiljagic had obstructed justice by testifying falsely at trial.
This case was the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorneys Matthew G. Morris and Amy Schuller Hitchcock prosecuted the case.
Rosebud Man Found Not Guilty of Assault and Child Abuse ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man was acquitted of Assault With a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, and Child Abuse as a result of a federal jury trial in Pierre, South Dakota, beginning on August 22, 2017, and concluding on August 23, 2017.
Dustin Witt, age 26, was indicted by a federal grand jury on March 15, 2017.
The charges stemmed from an alleged incident that occurred in June 2016, in Rosebud.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The U.S. Attorney’s Office prosecuted the case.
Restaurant Owner Sentenced for Illegal FirearmsRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that an Auxvasse, Mo., man has been sentenced in federal court for illegally possessing 21 firearms and three firearm silencers.
Billy Bush Owen, 54, of Auxvasse, was sentenced by U.S. District Judge Stephen R. Bough on Thursday, Aug. 24, 2017, to 18 months in federal prison without parole. The court also ordered Owen to pay a fine of $3,600.
Owen, the owner of Panhead Billy’s BBQ in Kingdom City, Mo., admitted that he was in possession of 21 firearms on Dec. 9, 2015, including handguns, rifles and shotguns, as well as three silencers. Under federal law, it is illegal for anyone who has been convicted of a felony to possess any firearms (including silencers) or ammunition. Owen has prior felony convictions for transporting a controlled substance and possession of a dangerous weapon by an addict.
Owen was being investigated by MUSTANG (the Mid-Missouri Unified Strike Team and Narcotics Group) when officers executed a search warrant at this residence on Dec. 9, 2015. Officers found 21 firearms, three silencers and 9,337 rounds of ammunition in the residence. Three of the firearms and 3,610 rounds of ammunition were in the bedroom, and the remaining firearms and the suppressors were in a safe in the garage. Officers also seized $35,109, digital scales, a drug ledger and nearly 22 pounds of marijuana from the residence.
This case was prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Callaway County, Mo., Sheriff’s Department and MUSTANG.
Ponchatoula Man Pleads Guilty to Theft of Firearms from Premises Owned and Operated by a Federally-Licensed Firearms DealerRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that ANTWON SEYMORE, age 19, pled guilty yesterday to theft of firearms from a premises owned by a federally-licensed firearms dealer and aiding-and-abetting.
According to the court documents, on or about April 8, 2016, SEYMORE, and a juvenile broke into The Tickfaw Auction Company, located at Hwy. 51, Tickfaw, a business owned and operated by a federally-licensed firearms dealer, and stole 25 handguns. All those guns were manufactured outside of Louisiana and necessarily had been shipped and transported in interstate and foreign commerce.
SEYMORE faces a maximum term of imprisonment of ten years, and/or a fine of $250,000, and three years of supervised release following any term of imprisonment. U.S. District Judge Lance M. Africk set sentencing on November 16, 2017.
Acting U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this matter. Assistant United States Attorney Michael E. McMahon is in charge of the prosecution.
Philadelphia Police Officer Pleads Guilty to Drug DistributionRead the Press Release
PHILADELPHIA – Stanley Davis, 50, of Philadelphia pleaded guilty today to one count of distribution of controlled substances.
During the offense conduct, Davis was a Philadelphia Police Officer assigned to work as a task force officer with the Federal Bureau of Investigation working on narcotics investigations. In September or October of 2016, Davis was working in the Kensington section of Philadelphia, an area where illegal drugs were frequently bought and sold. Davis spotted two young women who were in Kensington attempting to buy drugs. Davis approached the women, ostensibly to gain information on drug trafficking activity in the area. Davis exchanged phone numbers with the women and began sending them text messages. The text messages soon turned sexual in nature. Davis entered into a sexual relationship with the first woman and later entered into a sexual relationship with the second woman. During the course of these relationships, Davis provided each woman with controlled substances, including heroin and crack.
Davis is scheduled to be sentenced on December 8, 2017 before the Honorable R. Barclay Surrick in the United States District Court for the Eastern District of Pennsylvania.
The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Justice, Office of the Inspector General with assistance from the Pennsylvania State Police and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Robert J. Livermore.
Palm Desert Man Arrested in Stock Scheme that Targeted Nearly 100 Elderly Victims across U.S. and Allegedly Caused over $1 Million in LossesRead the Press Release
SANTA ANA, California – A Palm Desert man who is accused of running a stock investment scheme that allegedly defrauded more than 90 victims out of more than $1 million has been arrested on federal fraud charges.
Robert Mark Seibert, 64, was arrested in Bermuda Dunes Wednesday afternoon by FBI agents.
The arrest of Seibert was announced today by Acting United States Attorney Sandra R. Brown and Danny Kennedy, the FBI’s Acting Assistant Director in Charge of the Los Angeles Field Office.
Seibert, who allegedly used the alias “John Grey” when communicating with his victims, was arrested pursuant to a 16-count indictment returned by a federal grand jury on August 16.
Seibert had an initial appearance yesterday afternoon in United States District Court in Santa Ana, where a United States Magistrate Judge ordered him held without bond. Seibert pleaded not guilty to the charges in the indictment, and a trial was scheduled for October 17.
According to the indictment, Seibert operated his scheme through a series of businesses, including Universal Stock Transfer, National Discount Marketers, and New Global Productions. Seibert allegedly offered to sell victims stock in other companies – Intertech Solutions; Radio Shack; New Global Energy; SnackHealthy, Inc.; Uranium Energy Group; and Organovo Holdings – often at a discount from current market prices. After victims made investments, Seibert issued certificates as evidence of stock ownership and advised that if they did not earn a profit, he would return their money within 30 days.
The indictment alleges that Seibert did not hold or control any stock in other companies for sale, the victims’ money was not used to purchase stock, and they did not receive their money back after 30 days – or any time thereafter.
Investigators allege that Seibert defrauded at least 90 victims, who collectively sent more than $1 million to the defendant. According to the indictment, victims either mailed or wired amounts ranging from $2,000 to $21,000 to the companies operated by Seibert.
The indictment charges Seibert with 14 counts of mail fraud and two counts of wire fraud.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The maximum statutory penalty for each of the 16 counts in the indictment is 20 years in federal prison.
This investigation is being conducted by the Federal Bureau of Investigation.
The case is being prosecuted by Assistant United States Attorney Gregory W. Staples of the Santa Ana Branch Office.
Orlando Man Sentenced to 75 Years for Producing Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge John Antoon, II today sentenced Jamie P. Esposito (32, Orlando) to 75 years in federal prison for producing and possessing child pornography. He pleaded guilty on March 29, 2017.
According to court documents and evidence presented at sentencing, Esposito sexually abused a 7-year-old child one to two times per month over an 18 to 24-month period. He chronicled the abuse by taking pictures and videos, and shared them with multiple people online. When federal law enforcement officers executed a search warrant at Esposito’s home on November 29, 2016, they discovered more than 2,700 images of child pornography, including the images and videos he had produced of the child.
In addition, in July 2016, Esposito arranged to take the child to Tampa to be sexually abused by Richmond McDonald and Shauna Boselli. Esposito took pictures and video of the acts. McDonald and Boselli have been charged separately (case number 8:16-cr-517-T-33AEP) and have pleaded guilty to enticement of a minor. They are scheduled to be sentenced on October 4, 2017.
“This crime is beyond comprehension and no punishment can bring back the innocence of this child,” said HSI Tampa Special Agent in Charge James C. Spero. “But we hope that today’s sentencing can bring some solace to this young victim.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Shawn P. Napier.
Operator of Global Cybercrime Marketplace Pleads Guilty to Access Device Fraud and Aggravated Identity TheftRead the Press Release
Earlier today, Djevair Ametovski, a Macedonian citizen also known as “xhevo,” “sindrom” and “sindromx,” pleaded guilty to access device fraud and aggravated identity theft, crimes related to his operation of “Codeshop,” a website he created for the sole purpose of selling stolen credit and debit card data, bank account credentials and personal identification information — obtained through illegal hacking and phishing schemes — for financial gain. The plea was entered before United States Magistrate Judge Steven L. Tiscione at the federal courthouse in Brooklyn.
The guilty plea was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and David E. Beach, Special Agent-in-Charge, United States Secret Service, New York Field Office (USSS).
“Cybercriminals such as the defendant profit directly from the mass hacking of online businesses and theft of personal and financial information, and provide a platform for others to do the same,” stated Acting United States Attorney Rohde. “This Office, together with our law enforcement partners, will work tirelessly to shut down these illegal businesses and hold their operators accountable for their crimes.” Ms. Rohde praised the extraordinary efforts of the Secret Service, the agency responsible for leading the government’s investigation, and also thanked the Slovenian Ministry of the Interior and Ministry of Justice, for their assistance in the investigation and effecting the defendant’s extradition, the United States Marshals Service, for their assistance in transporting the defendant to the United States, the U.S. Department of State’s Diplomatic Security Service in Slovenia and the Netherlands, for their assistance in facilitating the defendant’s extradition, and the Justice Department’s Office of International Affairs, for their assistance with multiple international requests for legal assistance during the investigation and with the defendant’s extradition.
“Technology has essentially erased geographic boundaries and changed the way criminals do business,” said USSS Special Agent-in-Charge Beach. “The Secret Service continues to develop innovative ways to combat emerging cyber threats. The success in this case demonstrates the collaborative efforts of our worldwide network of law enforcement partners and the transnational investigative capabilities of the United States Secret Service.”
As detailed in court papers, Ametovski ran a sophisticated online global marketplace for selling the stolen credit and debit card data, bank account credentials and personal identification information of victims around the world. As part of his operation, Ametovski worked with co-conspirators to steal victim account data both by hacking into the computer databases of financial institutions and other businesses, and by perpetrating “phishing” scams wherein the conspirators sent forged emails to unwitting accountholders that fraudulently induced the accountholders to surrender private information.[1] Ametovski and his co-conspirators then packaged this stolen victim account data for sale and posted the data on the Codeshop website, a fully indexed and searchable website that allowed users to search through databases of stolen data by bank identification number, financial institution, country, state and card brand to find the precise data that they wished to buy. Users of the Codeshop website who bought stolen data from the website could use it to make online purchases and to encode plastic cards with the data and use the cards to withdraw cash at ATMs. Ametovski used a network of online money exchangers and anonymous digital currencies (like Bitcoin) to reap revenues from the Codeshop website and to conceal all participants’ identities, including his own. Over the course of the scheme, Ametovski obtained and sold stolen credit and debit card data for more than 1.3 million cards.Ametovski was arrested in Ljubljana, Slovenia, in January 2014, and was extradited to the United States in May 2016.
When he is sentenced by United States District Judge Eric N. Vitaliano, Ametovski faces up to 15 years in prison for access device fraud, and an additional mandatory sentence of two years’ imprisonment for aggravated identity theft. He is also subject to restitution, criminal forfeiture, and fines.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Saritha Komatireddy, Tiana A. Demas and David K. Kessler are in charge of the prosecution. Additional assistance was provided by Marcus Busch of the Justice Department’s Office of International Affairs.
The Defendant:
DJEVAIR AMETOVSKI, also known as “xhevo,” “sindrom” and “sindromx”
Age: 30
Nationality: Macedonian
E.D.N.Y. Docket No. 16-CR-409 (ENV)
[1] “Phishing” is a common cyber fraud tactic that involves sending an email to a user falsely claiming to be an established legitimate enterprise in an attempt to deceive the user into surrendering private information. In this case, such emails commonly directed users to visit a bogus website where they were asked to update personal information, such as their password, social security number, and bank account number previously provided to a legitimate organization.
Okreek Woman Sentenced on Cocaine and Marijuana ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that an Okreek, South Dakota, woman convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on August 21, 2017, by U.S. District Judge Roberto A. Lange.
Maria Joy Dog Soldier, age 40, was sentenced to 36 months of probation and 6 months home confinement, a fine of $1,000, and forfeiture of $1,101. A mandatory special assessment to the Federal Crime Victims Fund in the amount of $100 was also imposed.
Dog Soldier was indicted by a federal grand jury on March 15, 2017. She pled guilty on June 5, 2017.
The conviction stemmed from an incident on April 29, 2016, during a routine patrol of the Rosebud Casino parking lot by a law enforcement officer and his K9 dog, when the K9 alerted to the presence of the odor of narcotics. Dog Soldier was present in the vehicle. A search of the vehicle revealed 15 plastic baggies containing cocaine and 3 plastic baggies containing marijuana and drug paraphernalia. Also found during the search was $1,101 in cash.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Ocean Springs Man Sentenced for Accessing with Intent to View Child PornographyRead the Press Release
Gulfport, Mississippi. – Kristopher Michael Brumfield, 39, of Ocean Springs, Mississippi, was sentenced on August 24, 2017, by Chief U.S. District Judge Louis Guirola, Jr., to 120 months in federal prison followed by a lifetime of supervised release for accessing with intent to view child pornography, announced Acting U.S. Attorney Harold Brittain and Homeland Security Investigations (HSI) Special Agent in Charge Raymond R. Parmer, Jr.
In addition to the prison term, Brumfield was ordered to pay a fine of $15,000 and a $5,000 special assessment under the Justice for Victims of Trafficking Act of 2015.
In August, 2014, HSI identified three user profiles contained within a foreign photo sharing website which contained child pornography. The HSI investigation that followed identified Brumfield as the individual who knowingly accessed the website and viewed the uploaded images of minors engaged in sexually explicit conduct. It was further determined that via email, Brumfield corresponded with other users of the website, and subsequently traded numerous videos of children engaged in sexually explicit conduct via his email accounts.
This case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorneys Andrea Jones and Glenda Haynes.
North Dakota Man Sentenced to 15 Years for Production of Child PornographyRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the sentencing of JUSTIN EDWARD WYLIE, 28, to 15 years in federal prison for production of child pornography. WYLIE was indicted on May 17, 2016, and pleaded guilty on November 14, 2016, to one count of production of child pornography. The defendant was sentenced on August 25, 2017, before Senior Judge Paul A. Magnuson in U.S. District Court in St. Paul, Minn.
According to the defendant’s guilty plea and documents filed in court, through online contact, WYLIE coerced three minor victims to engage in sexually explicit conduct for the purpose of producing child pornography. The defendant came to law enforcement's attention when law enforcement officers downloaded thirteen child pornography files from WYLIE’S IP address over the peer-to-peer file sharing network BitTorrent. On March 14, 2014, upon execution of a search warrant of WYLIE’S home and electronic devices, law enforcement recovered more than 7,000 suspected child pornography images and 102 suspected child pornography videos.
This case resulted from an investigation conducted by the FBI and the Breckenridge Police Department, and the North Dakota Bureau of Criminal Investigation.
The case was prosecuted by Assistant U.S. Attorney Melinda A. Williams.
This case is part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals resources to locate, apprehend, and prosecute individuals who sexually exploit children while identifying and rescuing victims. For more information about PSC, please visit http://www.justice.gov/psc/ For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”
Defendant Information:
JUSTIN EDWARD WYLIE, 28
Wahpeton, N.D.
Convicted:
- Production of child pornography, 1 count
Sentenced:
-
180 months in prison
-
15 year term of supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
New Orleans Man Pleads Guilty to Conspiracy to Commit Mail FraudRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that CORTEZ THOMPSON, age 34, of New Orleans, pled guilty yesterday to conspiracy to commit mail fraud.
According to court documents, from in or about December 2012 and continuing though in or about June 2013, THOMPSON and his co-conspirators were involved in a scheme to unlawfully obtain money through the distribution of counterfeit United States Postal Service money orders. To this end, THOMPSON and his co-conspirators would, among other things, procured, produced, and caused to be produced counterfeit United States Postal Service money orders, distributed them via the mail, and negotiated them in order to share the illegal proceeds of the crime.
THOMPSON faces a maximum term of imprisonment of five years, a fine of $250,000 and three years of supervised release following any term of imprisonment. U.S. District Judge Susie Morgan set sentencing for November 29, 2017.
Acting U.S. Attorney Evans praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations in investigating this matter. Assistant United States Attorney Loan AMimi@ Nguyen is in charge of the prosecution.
New Orleanians Sentenced for Heroin and Firearms ConspiraciesRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that KEITH FOSTER, age 37, and THOMAS MAROLD, age 53, both of New Orleans, were sentenced yesterday. Both defendants had previously pled guilty to conspiracy and possession with intent to distribute heroin, conspiracy to use a firearm in furtherance of a drug trafficking crime and possession of a firearm in furtherance of a drug trafficking crime.
U.S. District Court Judge Lance M. Africk sentenced FOSTER to 295 months of incarceration, to be followed by 5 years of supervised release. MAROLD was sentenced to 30 months of incarceration, to be followed by 3 years of supervised release.
According to court documents, in October 2015, KERMERIC JOHNSON received a jail phone call from heroin dealer and co-conspirator, FOSTER, wherein FOSTER informed JOHNSON that a confidential informant had caused him and MAROLD to be arrested. FOSTER then told JOHNSON where to locate a firearm and instructed JOHNSON to “take care” of the informant. JOHNSON agreed to do so and, in subsequent jail calls, stated that he was attempting to locate the informant.
On October 29, 2015, St. Bernard Parish Sheriff’s Office deputies surveilled JOHNSON’s residence, and observed JOHNSON exit the residence. Deputies observed JOHNSON carrying two items, one wrapped in a blue shirt, and the other in a red blanket. JOHNSON placed both items inside the trunk of a vehicle before he and the other male drove away. Deputies conducted a traffic stop and obtained a search warrant for the vehicle. In the trunk of the vehicle, deputies found a Smith and Wesson, 9mm caliber semi-automatic handgun wrapped in the shirt and a Marlin Model Glenfield 65, .22 caliber rifle, wrapped in the blanket.
Acting U.S. Attorney Evans praised the work of the ATF New Orleans Division Office, St. Bernard Parish Sheriff’s Office and New Orleans Police Department in investigating this matter. Assistant United States Attorney Nolan D. Paige was in charge of the prosecution.
McAlester Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that MICHAEL KEITH BEALL, age 61, of McAlester, Oklahoma, pled guilty to POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), punishable by not more than 20 years imprisonment, and up to a $1,000,000.00 fine or both.
The Indictment alleged that on or about April 17, 2017, within the Eastern District of Oklahoma, the defendant, MICHAEL KEITH BEALL, did knowingly and intentionally possess with the intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charge arose from an investigation by the Pittsburg County Sheriff’s Office, the Oklahoma Bureau of Narcotics, and the Oklahoma Highway Patrol.
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 Dean Burris represented the United States.
Maryland Man Sentenced to 14 Years in Prison for Shooting Childhood Friend in Southeast WashingtonRead the Press Release
WASHINGTON – Timothy Dugger, 30, of Landover, Md., was sentenced today to 14 years in prison for repeatedly shooting a man in a mid-day attack nearly two years ago in Southeast Washington, announced U.S. Attorney Channing D. Phillips.
Dugger was found guilty by a jury in June 2017 of a total of 14 charges, including assault with intent to kill while armed, aggravated assault while armed, assault with a dangerous weapon, fleeing law enforcement, reckless driving, and various firearms offenses. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Judith Bartnoff. Following his prison term, Dugger will be placed on five years of supervised release.
According to the government’s evidence, in the early afternoon of Sept. 11, 2015, Dugger picked up the victim and his family and drove them to the 2900 block of Southern Avenue SE. The victim left his family there and made his way back to Dugger’s car, where Dugger was in the driver’s seat. As the victim approached the car, Dugger fired multiple shots at him, striking him in the back, chest, and arm. Dugger then made a U-turn on Southern Avenue, fired more shots, and drove off. He led the Metropolitan Police Department (MPD) on a chase before crashing the vehicle into a retaining wall the 2300 block of R Street SE. While fleeing, Dugger had tossed the gun from the car, and it was recovered and found to have his fingerprints on it.
According to medical testimony, the victim, then 30, could have died if the bullets entered his body at different trajectories. Dugger and the victim had been friends since childhood. Dugger has been in custody since his arrest.
In announcing the sentence, U.S. Attorney Phillips commended the work of the Metropolitan Police Department. He also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Sarah C. Santiago and Kathleen “Katie” Kern, who both assisted in investigating and indicting the case; Paralegal Specialist Tamaya Reid; Victim/Witness Advocate Diana Lim, and Litigation Technology Specialists Leif Hickling and William Henderson. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Ellen D’Angelo and Maryam Adeyola, who investigated the case and prosecuted it at trial.
Louisiana Company Pleads Guilty to Transporting and Dumping Hazardous Waste in Savannah NeighborhoodRead the Press Release
SAVANNAH, GA – Boasso America, Inc. (Boasso), headquartered in New Orleans, Louisiana, and with a facility in Garden City, Georgia, entered a guilty plea yesterday before Senior U. S. District Court Judge William T. Moore, Jr. for the illegal transportation and dumping of hazardous waste. Boasso pled guilty to a felony violation of the Resource Conservation and Recovery Act (RCRA), a law regulating the storage and transportation of hazardous waste. Boasso’s guilty plea follows the convictions of two of its former employees, Ray Mitchell, 52, of Pooler, Georgia, and Maurice Miller, 40, of Savannah, for their individual roles in the illegal transportation and dumping of hazardous waste. Earlier this year, Miller was sentenced to 28 months in federal prison. Mitchell was sentenced to 20 months in federal prison.
According to evidence presented during multiple guilty plea hearings, Boasso provides transportation services for tank containers containing hazardous wastes. Boasso’s Garden City facility stored and transported its customers’ tanks containing hazardous waste. In 2015, rather than properly transporting and safely disposing of drums and totes at its Garden City facility that contained the hazardous chemical naphthalene, Boasso employees Mitchell and Miller illegally transported and dumped a significant amount of naphthalene into the ground of a nearby Savannah neighborhood. Exposure to amounts of naphthalene, a main ingredient found in mothballs, can cause serious health issues. Once discovered, law enforcement and environmental officials quickly removed the hazardous waste before it caused any health concerns. Further investigation by law enforcement officials uncovered that Boasso employees fabricated invoices in an effort to hide their illegal dumping of hazardous waste.
The investigation of this case was led by the United States Environmental Protection Agency (EPA), with assistance from the Georgia Department of Natural Resources (DNR), the Savannah-Chatham Metropolitan Police Department (SCMPD), and Savannah Fire Department’s Haz-Mat team.
As part of its plea agreement, Boasso has agreed to pay full restitution, including cleanup costs; has agreed to pay the maximum criminal fine penalty of $500,000; and has agreed to establish, implement, and enforce an effective environmental compliance plan, so that future dumping incidents do not happen.
Acting United States Attorney James Durham said, “This company and some of its employees callously dumped hazardous waste into a local community, all to save a little time and money. Because of their dangerous decisions, the company will be paying a significant amount of money and their employees are spending a lot of time in a federal prison. I want to thank the EPA, Georgia’s DNR, SCMPD and the Savannah Fire Department for quickly investigating this case, and for ensuring Boasso’s hazardous waste was properly removed before anyone was injured.”
“This corporate defendant and some of its employees knowingly allowed hazardous waste to be illegally dumped without regard for the potential dangers that its release could pose to public health,” said Andy Castro, Special Agent in Charge of EPA’s criminal enforcement program for Georgia. “These corporate and individual convictions show that those who put public health and the environment at risk by violating the law will be held to account.”
Assistant United States Attorneys Tania D. Groover and Carlton R. Bourne prosecuted the case on behalf of the United States. For additional information, please contact the U. S. Attorney’s Office at (912) 201-2522.
Las Vegas Businessmen Sentenced to Prison in Montana Public Corruption CaseRead the Press Release
GREAT FALLS - The United States Attorney’s Office announced that Zachary Brooke Roberts and Martin Gasper Mazzara were sentenced to 20 months of prison and are required to pay $2.5 million in restitution to the Chippewa Cree Tribe. The shell company of Encore Services, LLC, was also convicted, and the court ordered it to pay the same amount of restitution. The sentencing occurred on August 25, 2017, before U.S. District Judge Brian Morris, in Great Falls, Montana.
Roberts and Mazzara, through a backdated and inflated 15% Fee Agreement, were paid over $3.5 million from the Chippewa Cree Tribe. Roberts and Mazzara then funneled money from Nevada back to Montana to Ideal Consulting. Ideal Consulting was a shell company used to distribute payments to Neal Rosette and Billi Anne Morsette, both of whom were tribal officials. This scheme was created to conceal from the tribal people the $1.2 million in kickbacks to Rosette and Morsette. Both Rosette and Morsette were previously sentenced for receiving bribes from Roberts and Mazzara.
Roberts and Mazzara engaged in the above scheme by inflating their invoices from 10% to 15%, submitting those false invoices to the Chippewa Cree Tribe, and then funneling and concealing the 5% that went back to the shell company of Ideal Consulting. In order to perpetuate the scheme, Roberts and Mazzara generated false invoices from Encore Services, LLC, and they also accepted false invoices from Ideal Consulting. For example, Ideal Consulting submitted invoices for “consulting” services to Roberts and Mazzara, but those invoices were bogus and no consulting services ever occurred from Ideal Consulting.
When the above scheme was discovered, Roberts and Mazzara, in October of 2012, backdated a “Joint Venture Agreement” by over 15 months to act as cover for the money paid to the tribal officials through Ideal Consulting.
In a sentencing memo filed in federal court, Assistant U.S. Attorneys Ryan G. Weldon and Bryan T. Dake stated, “This case is about an insatiable appetite to make money at the expense of others. The defendants initially arrived on the Rocky Boy’s Indian Reservation to use tribal sovereignty to circumvent maximum interest rates and other regulations under state laws. When that failed, the parties instead began to victimize the tribal people. In doing so, the defendants and others concocted a scheme to funnel money back to tribal officials, all of which totaled $1.2 million.” Weldon and Dake explained that it takes two sides to generate a corrupt transaction—a corrupt public official and a corrupt businessman. Both must be held accountable because both are essential to the creation of a corrupt transaction. “Such accountability also acts as a deterrent to remind future businessmen that sharp business tactics, when dealing with public officials, can easily end in the loss of everything—reputation, fortune, and freedom.”
The convictions of Roberts and Mazzara were for conspiracy to commit wire fraud and engaging in monetary transactions in property derived from specified unlawful activity. The convictions and sentencing of these defendants are the latest in a series of prosecutions and convictions relating to public corruption, fraud, and theft in federal grants, contracts, and programs brought by the investigators and prosecutors of the U.S. Attorney’s Guardians Project, an anti-corruption strike force created in 2011. These cases were investigated by the Department of Interior, Office of Inspector General, Health and Human Services, Office of Inspector General, and the Internal Revenue
Jacksonville Man Pleads Guilty to Illegally Possessing Semi-Automatic Handgun with Extended MagazineRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces that Reginald Kevin Winford (26, Jacksonville) today pleaded guilty to possessing a firearm as a convicted felon. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the court documents, police officers stopped Winford for a traffic offense and saw a baggie of cocaine on the floorboard of his car, prompting a search of the vehicle. During the search, officers discovered a loaded semi-automatic handgun and an extended magazine containing 29 rounds of ammunition. As a previously convicted felon on multiple offenses, Winford is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl McCrary, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy on reducing violent crime in communities.
Indictment Unsealed Charging Three with Conspiracy and Bribery to Smuggle Cell Phones into Private Federal PrisonRead the Press Release
Oklahoma City, Oklahoma – An indictment was unsealed Wednesday charging CHARLES DANIEL LYNN, 34, of El Reno, Oklahoma; ARMANDO TABARES, 30, of Mission, Texas; and JOSE TOMAS CASTILLO-GARZA, 39, currently an inmate in United States Bureau of Prisons custody, with conspiracy to commit wire fraud and bribery, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
On August 16, 2017, a federal grand jury returned an indictment alleging that Lynn was a correctional officer at Great Plains Correctional Facility, a Federal Bureau of Prisons-contracted low-security facility in Hinton, Oklahoma. Great Plains houses over 1,800 federal inmates.
The indictment alleges that in the summer or early fall of 2016, inmate Castillo-Garza asked Lynn to smuggle cell phones into the facility. Lynn and Castillo-Garza allegedly agreed that Lynn would be paid thousands of dollars by wire transfer in exchange for his smuggling of cell phones and other contraband into the facility. The indictment further alleges Castillo-Garza arranged with Lynn to have Castillo-Garza’s brother-in-law, Tabares, send wire transfers and contraband to Lynn.
According to the indictment, Castillo-Garza and/or other inmates working with him threatened another inmate’s safety to secure that inmate’s promise to arrange for money to be wired to Lynn outside the facility. Castillo-Garza is alleged to have coordinated with another inmate to have additional funds sent to Lynn. In total, approximately $7,750.00 was sent to Lynn as bribes to smuggle contraband into the facility, according to the indictment.
The indictment states that Tabares and Lynn communicated about the types of contraband to be smuggled and that Tabares purchased the materials and sent approximately 8-9 packages to Lynn between October and December 2016. After Lynn received the packages, he smuggled the items, including cell phones, into the facility and delivered the items to Castillo-Garza, according to the indictment. It is also alleged that Lynn escorted Castillo-Garza to various parts of the facility to distribute the contraband to other inmates.
Count 1 charges all three defendants with conspiracy to commit wire fraud. If convicted, defendants each face up to 20 years in prison and a $250,000.00 fine. Count 2 charges Lynn with accepting a bribe as a public official, and Count 3 charges Castillo-Garza and Tabares with bribing a public official. If convicted on the bribery counts, each defendant faces up to 15 years in prison and a $250,000.00 fine.
The public is reminded these charges are merely accusations and that the defendants are presumed innocent unless proven guilty beyond a reasonable doubt. Reference is made to court filings for further information.
This case is the result of a joint investigation by the Department of Justice Office of the Inspector General and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney K. McKenzie Anderson.
Idaho Falls Man Pleads Guilty in Access with Intent to View Child Pornography CaseRead the Press Release
POCATELLO – Thomas Wayne Anderson, 57, of Idaho Falls, Idaho, pleaded guilty yesterday to accessing with intent to view child pornography, Acting U.S. Attorney Rafael Gonzalez announced. Anderson was indicted by a federal grand jury in Pocatello on February 28, 2017.
According to the plea agreement, Anderson was initially apprehended in connection with a series of vandalism at recreational sites managed by the Bureau of Land Management. Pursuant to a search warrant, authorities searched Anderson’s laptop computer and found screen captures of child pornography that appeared to be from videos depicting child pornography. In court, Anderson admitted to using online video-conferencing services to view child pornography with other individuals.
The charge of access with intent to view child pornography is punishable by up to 20 years in prison, a maximum fine of $250,000, and up to a life-term of supervised release.
Sentencing is set for November 20, 2017, before U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Idaho Internet Crimes Against Children (ICAC) Task Force and the Bureau of Land Management.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Husband and Wife Charged with BriberyRead the Press Release
PHILADELPHIA – A federal indictment was unsealed today charging Nazik Modawi and her husband Abboud Wali with conspiracy and bribery, announced Acting United States Attorney Louis D. Lappen.
According to allegations contained in the indictment, the defendants made two bribe payments in November through December 2016 to Southeastern Pennsylvania Transportation Authority (SEPTA) employees for the purpose of expediting their application for a certification from SEPTA’s disadvantaged business enterprise (DBE) program. SEPTA employees immediately reported the cash payments to authorities.
The charge of conspiracy carry a maximum sentence of 5 years in prison and a $250,000 fine; charges of bribery concerning agencies receiving federal funds carry a maximum sentence of 10 years in prison and a $250,000 fine.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
The case was investigated by the Federal Bureau of Investigation and the United States Department of Transportation, Office of Inspector General, with assistance from the SEPTA Inspector General. It is being prosecuted by Assistant United States Attorney Denise S. Wolf of the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
Houston Bookkeeper Charged in a Scheme to Embezzle from a ClientRead the Press Release
HOUSTON – A 64-year-old Houston woman has been taken into custody following the return of a 16-count indictment alleging wire and mail fraud and filing false tax returns, announced Acting U.S. Attorney Abe Martinez.
A federal grand jury returned the indictment under seal yesterday against Gwendolyn M. Berry, which was unsealed as she was taken into custody today. She made her initial appearance this morning before U.S. Magistrate Judge Mary Milloy and was permitted release upon posting bond.
The indictment alleges Berry took funds in excess of $1.7 million from a family for whom was she provided bookkeeping services between September 2008 and Oct. 1, 2014. Berry allegedly took money from the education accounts of the minor children, as well as other bank accounts belonging to the family. Berry used the money to make payments for the benefit of herself and her family, according to the charges.
Four counts of the indictment charge Berry with filing a false federal tax return for the tax years 2011 through 2014. In each of these tax returns, Berry allegedly omitted reporting some of her income which, if reported, would have changed the amount of federal income tax due and owing. If convicted of any of these charges, she faces up to three years in prison.
In addition, upon conviction of any of the remaining 12 fraud counts, Berry also faces a possible sentence of up to 20 years in federal prison.
IRS - Criminal Investigation and the Secret Service conducted the investigation. Assistant U.S. Attorney Melissa Annis is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.