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Monday 14 August 2017
New Hampshire Man Sentenced for Laundering Proceeds from the Illegal Sale of MarijuanaRead the Press Release
BOSTON – A New Hampshire man was sentenced Friday, Aug. 11, 2017, in federal court in Boston for laundering the proceeds from illegal marijuana sales.
Douglas Mercier, 49, of Pelham, N.H., was sentenced by U.S. Senior District Court Judge Mark L. Wolf to four months in prison, three years of supervised release, and ordered to pay a fine of $25,000. In February 2017, Mercier pleaded guilty to one count of conspiracy to launder monetary instruments.
On approximately 15 occasions between June and October 2015, Mercier made cash deposits - derived from the illegal sale of marijuana - of just under $10,000 to banks in Massachusetts and New Hampshire.
Acting U.S. Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. Assistant U.S. Attorney Eric Rosen of Weinreb’s Narcotics & Money Laundering Unit is prosecuting the case.
Navajo Man from Shiprock Sentenced to Prison for Federal Involuntary Manslaughter and Assault ConvictionRead the Press Release
ALBUQUERQUE – Travis Arthur Mustache, 35, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced this morning in Albuquerque, N.M., to 37 months in prison for his conviction on federal involuntary manslaughter and assault charges. He will be on supervised release for three years after completing his prison sentence.
Mustache was arrested in March 2017, on an indictment charging him with involuntary manslaughter and assault resulting in serious bodily injury. According to the indictment, Mustache killed one victim and seriously injured another while driving his vehicle under the influence of alcohol on the Navajo Indian Reservation in San Juan County, N.M., on June 15, 2016.
On April 11, 2017, Mustache pled guilty to the indictment and admitted killing one victim and assaulting the second victim, causing her to sustain serious bodily injury, by driving recklessly while under the influence of alcohol. Mustache acknowledged that the alcohol rendered him incapable of exercising clear judgment and a steady hand in operating the vehicle. According to plea agreement, the second victim suffered from rib fractures, a liver laceration, bruised lung tissue and scalp bruises as the result of the assault.
This case was investigated by the Farmington office of the FBI, the Shiprock office of the Navajo Nation Division of Public Safety and the New Mexico State Police and was prosecuted by Assistant U.S. Attorney Sarah Mease.
Midasco Settles False Claims Act Allegations Involving I-495 HOV ProjectRead the Press Release
ALEXANDRIA, Va. – Midasco, LLC, located in Elkridge, Maryland, has agreed to pay $450,000 to settle False Claims Act allegations related to their work on the Virginia I-495 HOV/HOT Lanes Project.
The government investigated allegations that Midasco had not complied with the Davis-Bacon Act, specifically that they had not paid workers who performed electrical work on the HOT Lanes Project the prevailing wage required by federal labor standards. Instead, Midasco improperly classified workers as supervisors and paid them a salary in order to avoid paying the higher wages they were entitled to as electricians. The alleged conduct occurred between July 2012 and May 2015.
Midasco worked as a subcontractor on the HOT Lanes Project, a project that created approximately 29 miles of reversible high-occupancy toll lanes along the I-95/I-495 corridor. Midasco’s contract included installation of highway signing, lighting, toll gantries, ITS infrastructure, and electrical communication components.
The investigation was initiated after a lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds and to receive a share of any recovery. The False Claims Act permits the government time to investigate allegations in qui tam complaints and to intervene in such lawsuits, when the government deems it appropriate. This case is captioned United States ex rel. David Ridley, et al. v. Midasco, LLC et al. (1:12-cv-1170 AJT-TCB).
The resolution in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia, the Commonwealth of Virginia’s Attorney General’s Office, the Department of Labor Office of Inspector General, and the Department of Transportation Office of Inspector General. The matter was investigated by Assistant U.S. Attorney Monika Moore and Assistant Attorney General Peter Broadbent. The civil claims settled by this False Claims Act agreement are allegations only; there has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Miami Resident Sentenced to Prison for Stolen Identity Refund Fraud SchemeRead the Press Release
Used Stolen IDs to Seek More Than $2 Million in Fraudulent Refunds
A Miami-Dade County, Florida resident was sentenced to 70 months in prison for his role in a stolen identity refund fraud scheme, announced Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents and information provided to the court, from approximately 2008 through January 2015, in Broward and Miami-Dade counties, Jean Leroy Destine, 36, and others, obtained stolen IDs, to include the personal identifying information of prisoners and deceased individuals. They used this information to prepare and file with the Internal Revenue Service (IRS) approximately 2,000 tax returns seeking more than $2 million in fraudulent refunds. Destine and his co-conspirators covered their tracks by recruiting individuals to obtain Electronic Filing Identification Numbers (EFINs) in their names from the IRS and then used these EFINs to electronically file the fraudulent returns. The conspirators directed the refunds to debit cards as well as treasury checks mailed to various addresses. The refund checks were cashed at different check cashing stores and funds were withdrawn from the debit cards at Western Union locations and ATMs.
In addition to the term of prison imposed, U.S. District Judge Federico A. Moreno ordered Destine to serve three years of supervised release and to pay $2,108,000.00 in restitution to the IRS. Destine pleaded guilty in May 2017 to one count of a multi-object conspiracy to defraud the IRS, commit wire fraud and commit aggravated identity theft and one count of aggravated identity theft.
Acting U.S. Attorney Greenberg and Acting Assistant Attorney General Goldberg commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Neil Karadbil of the Southern District of Florida and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Related court documents and information may be found on the website of the United States District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican National Arrested, Charged with Id Theft and Lying to A Border OfficerRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Juan Luis Jimenez Cortez, a/k/a Fernando Castillo, 45, a native of Mexico living in Chicago, Illinois, was arrested and charged by criminal complaint with aggravated identity theft and making materially false and fictitious statements to a federal officer. The charges carry a minimum penalty of two years in prison, a maximum of five years and a $250,000 fine.
Assistant U.S. Attorney Stephanie O. Lamarque, who is handling the case, stated that according to the complaint, on August 13, 2017, a Customs and Border Protection Officer encountered the defendant driving a vehicle with an Illinois registration. During primary inspection, Cortez stated that while attempting to drive to Chicago, Illinois, he accidently drove across the Lewiston Queenston Bridge to Canada, and was sent back to the United States side of the border by Canadian border officials. The defendant presented an Illinois Drivers’ License listing the name Fernando Castillo as his proof of identity. Cortez was then referred for a secondary inspection.
During the secondary inspection, the defendant claimed to be a Puerto Rican born United States citizen, and he presented a Social Security card. Criminal record checks using the name and date-of-birth listed on the Illinois Drivers’ License showed multiple narcotic related arrests, including a 2010 conviction in Puerto Rico for drug trafficking. When asked about the drug arrest, Cortez replied that he has never been arrested for drugs. The defendant subsequently admitted that his true name is Juan Luis Jimenez.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and is being held pending a detention hearing on August 16, 2017.
The complaint is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
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.
Mescalero Apache Man Pleads Guilty to Domestic Assault by a Habitual Offender ChargeRead the Press Release
ALBUQUERQUE – Jeffrey Reed Palmer, 35, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., pled guilty today in federal court in Las Cruces, N.M., to a domestic assault by a habitual offender charge.
Palmer was arrested on April 27, 2017, on a criminal complaint charging him with domestic assault of an intimate partner by a habitual offender. According to the criminal complaint, Palmer caused the victim to suffer a contusion to the nose and a minor head injury. Palmer committed the crime on Aug. 4, 2016, on the Mescalero Apache Indian Reservation in Otero County, N.M. Palmer was charged as a habitual offender based on his two prior domestic violence convictions in Jan. 2014, from the Lincoln County Magistrate Court, and in Nov. 2009, from the Twelfth Judicial District court in Otero County.
During today’s proceedings, Palmer pled guilty to a felony information charging him with domestic assault by a habitual offender. In entering the guilty plea, Palmer admitted that on Aug. 4, 2016, he assaulted his intimate partner. Palmer also admitted that he was previously convicted on a battery against a household member charge in Alamogordo, N.M., in 2009, and again in Ruidoso, N.M., in 2014.
At sentencing, Palmer faces a maximum penalty of ten years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services. The case is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Marijuana Grower Sentenced to 5 Years in Prison for Cultivation in Sequoia National ForestRead the Press Release
FRESNO, Calif. — Abel Toledo-Villa (Toledo), 35, a native and citizen of Mexico, was sentenced today by Chief U.S. District Judge Lawrence J. O’Neill to five years in prison, U.S. Attorney Phillip A. Talbert announced.
Toledo pleaded guilty in May to conspiring to manufacture, distribute and possess with intent to distribute 3,850 marijuana plants grown in the Sequoia National Forest in Kern County. When law enforcement officers searched the grow site, Toledo was found leaving the area in a vehicle that contained about 8.5 pounds of processed marijuana, fertilizer, a rifle, and 106 rounds of ammunition.
At the grow site, agents found significant deforestation, large piles of trash, discarded chemical bottles, and miles of plastic irrigation lines. During the course of the offense, Toledo caused damage to public land and natural resources in the amount of $5,233. In sentencing Toledo, Judge O’Neill ordered Toledo to make restitution to the U.S. Forest Service in that amount.
This case was the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Southern Tri-County High Intensity Drug Trafficking Area (HIDTA) task force, California Department of Justice’s Campaign Against Marijuana Planting (CAMP), California Department of Fish and Wildlife, Kern County Sheriff’s Office, Riverside County Sheriff’s Department, Fontana Police Department, and Victorville Police Department. Assistant U.S. Attorney Karen Escobar prosecuted the case.
Manhattan U.S. Attorney Announces the Arrest of Sean Austin and Braulio Moncion for Gunpoint Robbery of the Customer Center in Yonkers, New YorkRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Charles Gardner, Commissioner of the Yonkers Police Department (“YPD”), announced the arrest of SEAN AUSTIN and BRAULIO MONCION on charges of Hobbs Act robbery and a firearms offense.
According to the allegations contained in the Complaint[1] charging AUSTIN and MONCION, and other documents in the public record:
On August 12, 2017, AUSTIN and MONCION committed a gunpoint robbery of The Customer Center, doing business as Sprint, located in Yonkers, New York. AUSTIN entered the store carrying a silver firearm. He displayed the firearm to two store employees, racked the slide, and instructed them not to move. MONCION subsequently entered the store, at which point AUSTIN and MONCION took cellphones, cash, and car keys from the employees. AUSTIN and MONCION then ordered the employees to remain in the bathroom of the store while they stole numerous cellphones. The robbery was captured on the store’s surveillance cameras. Following the robbery, AUSTIN and MONCION fled in one of the employee’s vehicles, which had been parked outside the store. Law enforcement pursued AUSTIN and MONCION to the Bronx, where they were ultimately apprehended by the Yonkers Police Department. Numerous stolen cellphones were recovered from the vehicle that AUSTIN and MONCION had used to flee the scene. In addition, law enforcement recovered a firearm and ammunition magazine that the defendants had discarded during the pursuit.
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AUSTIN, 44, of New York, New York, and MONCION, 41, of the Bronx, New York, are each charged with one count of Hobbs Act robbery, which carries a maximum sentence of 20 years in prison, and one count of use of a firearm during and in relation to a crime of violence, which carries a maximum sentence of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
AUSTIN and MONCION were arrested on August 12, 2017, and were presented today in White Plains federal court before United States Magistrate Judge Paul E. Davison and detained on consent.
Mr. Kim praised the investigative work of the Yonkers Police Department and the FBI’s Westchester County Safe Streets Task Force, which comprises agents and task force officers from the FBI, the U.S. Probation Office, the Westchester County Police Department, the Westchester County District Attorney’s Office, the New York City Police Department, the City of Yonkers Police Department, the Peekskill Police Department, and the Mount Vernon Police Department.
The case is being prosecuted by the Office’s White Plains Division. Assistant United States Attorneys Christopher J. Clore and Gillian Grossman are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Man Arrested for Trying to Detonate What He Thought was a Vehicle Bomb at Downtown Oklahoma City BankRead the Press Release
Oklahoma City, Oklahoma — Jerry Drake Varnell, 23, of Sayre, Oklahoma, was arrested early Saturday morning in connection with a plot to detonate a vehicle bomb at BancFirst, 101 N. Broadway, in downtown Oklahoma City, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
According to a criminal complaint filed in the Western District of Oklahoma yesterday, the FBI arrested Varnell at approximately 1:00 am on August 12, 2017, after he attempted to detonate what he believed to be an explosives-laden van he had parked in an alley next to BancFirst. The complaint alleges that Varnell initially wanted to blow up the Federal Reserve Building in Washington, D.C., with a device similar to the 1995 Oklahoma City bombing because he was upset with the government.
The complaint explains that after Varnell’s intentions came to the attention of law enforcement, an undercover FBI agent posed as a person who could assist him. According to the complaint, Varnell took a series of actions to advance his plot. He identified BancFirst as the target, prepared a statement to be posted on social media after the explosion, helped assemble the device, helped load it into what he believed was a stolen van, drove the van by himself from El Reno to BancFirst in downtown Oklahoma City, and dialed a number on a cellular telephone that he believed would trigger the explosion.
Varnell is charged with attempting to use explosives to destroy a building in interstate commerce. If convicted, he would face a maximum sentence of 20 years in prison and a mandatory minimum sentence of five years’ imprisonment. He is expected to make his initial appearance in federal court in Oklahoma City today at 3:00 pm.
This arrest is the culmination of a long-term domestic terrorism investigation involving an undercover operation, during which Varnell had been monitored closely for months as the alleged bomb plot developed. The device was actually inert, and the public was not in danger. "There was never a concern that our community’s safety or security was at risk during this investigation," said Kathryn Peterson, Special Agent in Charge of the FBI in Oklahoma. "I can assure the public, without hesitation, that we had Varnell’s actions monitored every step of the way."
U.S. Attorney Yancey said: "I commend the devoted work of the FBI and our state law enforcement partners in ensuring that violent plots of this kind never succeed."
The investigation was conducted by the FBI Joint Terrorism Task Force, including members from the Oklahoma City FBI; Homeland Security Investigations, part of the U.S. Department of Homeland Security; the Oklahoma City Police Department; the Edmond Police Department; the Oklahoma Highway Patrol; the Oklahoma Bureau of Narcotics and Dangerous Drugs; and the Oklahoma State Bureau of Investigation. The FBI worked in conjunction with BancFirst during the investigation. Oklahoma District Attorney Angela Marsee, of District 2, also provided assistance. The case is being prosecuted by Assistant U.S. Attorney Matt Dillon, with assistance from the Justice Department’s Counterterrorism Section.
Reference is made to court records for further information. The public is reminded that this complaint is only an allegation and that Varnell is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Lexington Real Estate Appraiser Sentenced for Conspiracy to Commit Wire Fraud and Making False StatementsRead the Press Release
LEXINGTON Ky. – A Lexington man, who pled guilty in May of 2017, was sentenced in federal court today, to five months in prison and five months home confinement. He was also ordered to pay a $5,500 fine.
Senior U.S. District Court Judge Joseph M. Hood sentenced 34-year-old Matt Garner for conspiracy to commit wire fraud and making false statements to a federal agency.
Matt Garner, 34, a former licensed real estate appraiser, made false statements in connection with appraisals he submitted for use by lenders in connection with federally-backed mortgages.
Garner owned and operated Lexington-based Garner & Associates. Between 2012 and 2016, his company was paid for more than 700 appraisals, on homes being purchased or refinanced in numerous counties surrounding Lexington and Owensboro, Ky. In his guilty plea, acknowledged that, in a significant percentage of these appraisals, he falsely certified on federal appraisal forms that he had personally visited the property and conducted the appraisal. , in fact, had paid unlicensed individuals a small portion of the appraisal fee to perform the appraisals.
Under federal law, Garner must serve 85 percent of his prison sentence. He will also be under supervision of the U.S. Probation Office for three years, following his term of incarceration.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky, and Amy S. Hess, Special Agent in Charge, Federal Bureau of Investigation, Louisville Field Office, announced the sentence today.
The Louisville Division of the Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorneys Ken Taylor and Kate Anderson represented the federal government
Last of 4 Defendants Sentenced for Growing Marijuana at an Archaeological Site in the Sequoia National ForestRead the Press Release
FRESNO, Calif. — Rafael Torres-Armenta (Torres), 30, a native and citizen of Mexico, was sentenced today to three years and one month in prison for conspiring to manufacture, distribute and possess with intent to distribute marijuana in connection with a large-scale cultivation operation that impacted a prehistoric site, U.S. Attorney Phillip A. Talbert announced.
Chief U.S. District Judge Lawrence J. O’Neill also ordered Torres to pay $5,233 in restitution to the U.S. Forest Service for the damage to public land and natural resources caused by their cultivation activities.
According to court documents, Torres conspired with Carlos Piedra-Murillo (Piedra), 30, of Michoacán, Mexico, Juan Carlos Lopez, 33, of Flagstaff, Arizona; and Javier Garcia-Castaneda (Garcia), 38, of Michoacán, Mexico, to cultivate marijuana in the Domeland Wilderness. The Domeland Wilderness is a federally designated wilderness area about 55 miles northeast of Bakersfield and is known for its many granite domes and unique geologic formations. Law enforcement officers seized over 8,000 marijuana plants, 17 pounds of processed marijuana, a .22‑caliber rifle, a pellet rifle, and hundreds of rounds of .22‑caliber ammunition.
In June 2017, Piedra was sentenced to two years and one month in prison, Lopez was sentenced to five years in prison, and Garcia was sentenced to three years and one month in prison.
The marijuana cultivation operation caused extensive environmental damage. It covered about 10 acres and was within the burned area of the 2000 Manter Fire. Some of the new vegetation and trees that sprouted after the fire had been cut and trimmed to make room for the marijuana plants. Water was diverted from a tributary stream of Trout Creek, a major tributary to the Kern River. Fertilizer and pesticides, including illegal carbofuran and zinc phosphide, highly toxic pesticides from Mexico, were found at the site. Large piles of trash were found near the campsite. The moving of soil to accommodate a basin around each marijuana plant caused extensive damage to a large prehistoric Tűbatulabal archaeological site. Holes were dug in the middle of the archaeological site and artifacts were found scattered on the surface among the marijuana plants.
This case was the product of an investigation by the U.S. Forest Service, the Bureau of Land Management, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the California Department of Fish and Wildlife. Assistant U.S. Attorney Karen Escobar prosecuted the case.
Justice Department Sues Glendale, AZ, for Violating Employment Rights of Arizona Air National Guard MemberRead the Press Release
The Justice Department filed a complaint today alleging that the City of Glendale, Arizona, violated the employment rights of Arizona Air National Guard member Captain Rebecca Cruz under the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA). Captain Cruz has served the United States honorably as a member of the Arizona Air National Guard since 2007.
According to the complaint, filed in the United States District Court for the District of Arizona, Captain Cruz’s military service was a motivating factor in Glendale’s decision to terminate her employment. The Department claims that, in March 2016, the City of Glendale hired Captain Cruz as a Management Analyst in its Public Works Department, knowing at that time that she also served as a member of the Guard. Approximately two months after she was hired, the Guard notified Cruz that she would need to attend military training for a new Air National Guard job classification to which she was being assigned. Cruz provided her military orders conveying that schedule to the City of Glendale, and six days later she was fired.
“In order to provide the security our nation depends on, members of our National Guard, like Captain Cruz, are often called away from their civilian jobs,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “These brave men and women must be able to fulfill their military obligations without fear that they will lose their jobs in the process, and the Department of Justice is here to ensure those protections.”
USERRA protects the rights of uniformed servicemembers to retain their civilian employment following absences due to military service obligations, and provides that servicemembers shall not be discriminated against because of their military obligations.
This lawsuit seeks damages equal to the amount of Cruz’s lost wages and benefits caused by the City of Glendale’s failure to comply with USERRA, as well as liquidated damages for what the Department alleges is Glendale’s willful violation of USERRA. It also seeks an order requiring the City of Glendale to reinstate Cruz to her prior position, to comply with all provisions of USERRA in the future, and to pay all related litigation fees.
This case stems from a referral by the U.S. Department of Labor (DOL), pursuant to an investigation by the DOL’s Veterans’ Employment and Training Service. The case is being handled by the Employment Litigation Section of the Department of Justice’s Civil Rights Division, which works collaboratively with the DOL to protect the jobs and benefits of National Guard servicemembers upon their return to civilian life.
The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as on DOL’s website at www.dol.gov/vets/programs/userra/main.htm.
Inmate Sentenced for Drug and Weapon PossessionRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that U.S District Court Judge Matthew W. Brann sentenced Stephen Morrison to 21 months’ imprisonment on August 11, 2017, for possession of AB-Pinaca (synthentic cannabinoid), a Schedule I controlled substance, and a sharpened weapon, commonly called a “shank,” while an inmate at the Federal Correctional Institution at Allenwood, Pennsylvania (FCI Allenwood).
According to United States Attorney Bruce D. Brandler, Morrison was discovered with the synthetic cannabinoid and weapon on his person at FCI Allenwood in September 2016. Morrison was indicted on December 20, 2016, and pled guilty on April 6, 2017.
The investigation was conducted by the Federal Bureau of Investigation and officers at FCI Allenwood. Assistant United States Attorney Sean A. Camoni prosecuted the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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In Largest Case Prosecuted in U.S. Focusing on White Supremacist Prison Gang Members, Swift Justice Leads to Conviction of 89 Members/Associates of Aryan Brotherhood of Texas and Aryan CircleRead the Press Release
DALLAS — Prosecutors in the Northern District of Texas have wrapped up what is believed to be the largest prosecution in the nation’s history of individuals connected to violent white supremacist gangs, announced John Parker, U.S. Attorney for the Northern District of Texas.
The 89th and last defendant to be sentenced in the case, Jeramy Weatherall, 29, of Dallas, Texas, was sentenced today by U.S. District Judge Jane J. Boyle to 20 years in federal prison, following his guilty plea in March 2017 to one count of possession of methamphetamine with the intent to distribute.
Out of 91 defendants charged, 89 were convicted, one remains a fugitive and is believed to be in Mexico, and one died before trial began. They received a combined total of 1,070+ years in federal prison. Casey Rose, 36, of Mesquite, Texas, was sentenced to life in federal prison, following his conviction at trial in September 2015 on conspiracy, drug trafficking and firearm charges.
“The Aryan Brotherhood of Texas and the Aryan Circle have essentially been decimated in north Texas,” said U.S. Attorney Parker. “The outstanding collaborative work of the Texas Department of Public Safety and the Dallas Police Department helped ensure that each of the 89 defendants who were arrested have now been convicted and sentenced.”
“Strong law enforcement partnerships and the hard work of all those involved led to a successful investigation and the resulting prosecutions,” said Department of Public Safety Region 1 Commander Jack Webster. “We continue to work with our law enforcement partners to proactively protect the citizens of Texas in an ever-changing threat environment.”
“The Dallas Police Department is proud to have participated in this investigation that resulted in 89 convictions of dangerous gang members who terrorized communities with their criminal activity,” said Interim Dallas Police Chief David Pughes. “It is a great example of the success of local and Federal Law Enforcement working together with the United States Attorney to ensure that the worst career criminals are brought to justice.”
The defendants were members of the Aryan Brotherhood of Texas (“ABT”), the Aryan Circle, the “Irish Mob,” the “Dirty White Boys,” the “White Knights,” and the “Peckerwood” – all of which are violent white supremacist gangs. Each of these gangs are organized crime groups, but in recent years, the white supremacy ideology of each of these groups has taken a backseat to traditional criminal ventures, such as drug-dealing. The defendants in this case included several high-ranking members of these organizations.
Particularly noteworthy is that collectively, the defendants were held accountable for 956 kilograms of methamphetamine, with a conservative street value of just under $10 million, as well as the possession and use of 88 firearms and dangerous weapons.
Combined, the 89 defendants had been previously convicted of 736 crimes. Of the 736 previous convictions, 234 were drug-related offenses; 76 were violent offenses; 36 were gun offenses; 37 were burglaries; seven were sex or child abuse offenses; and one was a murder conviction. Fifteen of the defendants were deemed “career offenders” under the U.S. Sentencing Guidelines. Some defendants had as many as 25 prior convictions. In fact, only six of the 89 had no prior convictions.
The investigation was led by the DPS-CID Gang Unit and the Dallas Police Department Criminal Intelligence Unit with assistance from the Garland Police Department Neighborhood Police Officer Unit, the Collin County Sheriff's Office, the Mesquite, Sherman, Denison and Sulphur Springs Police Departments and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Assistant U.S. Attorney P. J. Meitl was in charge of the prosecutions.
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Importer of Crystal Methamphetamine Ordered to PrisonRead the Press Release
LAREDO, Texas – A 45-year-old man has been ordered to federal prison following his conviction for conspiracy to import crystal methamphetamine, announced Acting U.S. Attorney Abe Martinez. Mexican National Juan Manuel Lozano-Alvarez pleaded guilty May 2, 2017.
Today, U.S. District Judge Marina Garcia Marmolejo handed Lozano-Alvarez a total sentence of 70 months in federal prison. Not a U.S. citizen, he is expected to face deportation proceedings following the sentence.
On March 1, 2017, Lozano-Alvarez was driving a tractor-trailer and applied for entry into the U.S. from Mexico at the Colombia Solidarity Bridge in Laredo. A subsequent examination of the vehicle revealed a set of nested wooden boxes in the tractor. The boxes contained 13.36 kilograms of crystal methamphetamine. Lozano-Alvarez was also carrying the equivalent of approximately $1,000 in cash.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Giselle S. Guerra prosecuted the case.
Illinois Resident Pleads Guilty to Synthetic Drug ConspiracyRead the Press Release
FRESNO, Calif. — Timothy Ortiz, aka Michael Fitton, 46, of Waukegan, Illinois, pleaded guilty today for his role in a large-scale smokeable synthetic cannabinoids trafficking organization that shipped misbranded synthetic drugs interstate from a processing lab in Millbrae, California, U.S. Attorney Phillip A. Talbert announced.
Smokeable synthetic cannabinoids, commonly known as “spice” or “K2,” is falsely touted as legal alternatives to controlled substances. In some instances, they are far more lethal.
In pleading guilty, Ortiz acknowledged that from 2011 to 2013, he was involved in the importation of raw synthetic cannabis from China that was processed and distributed from warehouses in Pensacola, Florida and Millbrae and Stockton, California. Ortiz set up the Millbrae processing lab and served as its director of operations and production manager. The drugs were sold under various brand names such as “Bizarro,” “Orgazmo,” or “Headhunter.” To evade detection by federal law enforcement, Ortiz and his co-defendants deliberately misbranded and marketed their product as “potpourri” or “herbal incense” that they claimed was “not for human consumption,” even though they knew that it would be used as an intoxicant.
According to the plea agreement, Ortiz and his co-defendants shipped at least 24 tons of misbranded smokeable synthetic cannabinoids that contained the synthetic drugs AM-2201 and XLR11 to smoke shops and retail outlets throughout the United States. They generated in excess of $33 million in sales. At the time of the illicit enterprise, AM-2201 was a schedule I controlled substance and XLR11 was a controlled substance analogue that was placed under schedule I as a controlled substance in May, 2013. Ortiz has agreed to forfeit $137,110, which represents the proceeds that he derived during his participation in the illegal operation. Ortiz and his co‑defendants distributed the drugs to the Stuffed Pipe smoke shops in the Central Valley and to numerous retail establishments throughout the United States.
This case is the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the Drug Enforcement Administration; the Internal Revenue Service, Criminal Investigation, and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with assistance from the Food and Drug Administration and the Fresno County Sheriff’s Office. The OCDETF program was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF program is the centerpiece of the U.S. Attorney General’s strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. This OCDETF investigation was also part of a nationwide law enforcement effort coordinated by the DEA’s Special Operations Division. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Ortiz is scheduled for sentencing on October 30, 2017. He faces a maximum statutory penalty of three years in prison and a $250,000 fine, or twice the gross gain from the crime. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Co-defendants Timothy New, 34, of Pensacola, Florida, pleaded guilty to the fraudulent shipment of misbranded drugs, and Natalie Middleton, 31, of Clovis, pleaded guilty to money laundering. In December 2016, New was sentenced to two and a half years in prison and Middleton was sentenced to four months in prison. Douglas Jason Way, aka Jason Way, 44, of Evanston, Illinois, is scheduled for a jury trial in February 2018. Way is charged with multiple controlled substance offenses and the misbranding charge, and if found guilty, faces a maximum penalty of 20 years in prison and a $10 million fine. The charges against him are only allegations; Way is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Huntington man sentenced to federal prison for role in heroin conspiracyRead the Press Release
HUNTINGTON, W.Va. – A Huntington man involved with others in distributing heroin in 2016 was sentenced today to a year and three months in federal prison, announced United States Attorney Carol Casto. Philip Reed Starkey, 48, previously pleaded guilty to conspiracy to distribute heroin.
From the summer of 2016 to September 2016, Starkey participated with Tonya Lynn Thompson and others in a conspiracy to distribute heroin in the Huntington area. During this time period, Starkey and Thompson received heroin on consignment. Starkey and Thompson would then distribute the heroin and return the proceeds from the distributions back to the heroin source.
On September 5, 2016, a deputy with the Cabell County Sheriff’s Department seized $6,407 in cash from Starkey and Thompson during a traffic stop on U.S. Route 60 in Huntington after agents received information they would be delivering the money that day. Starkey and Thompson admitted that the money constituted proceeds from heroin distributions, and that they were delivering the money back to the heroin source. Starkey previously admitted that he and Thompson were responsible for distributing up to 400 grams of heroin during the conspiracy. As part of the plea agreement, Starkey admitted that he was responsible for all the drug trafficking conduct charged in the superseding indictment. Thompson previously pleaded guilty to conspiracy to distribute heroin and faces up to 20 years in federal prison when she is sentenced on October 30, 2017.
The Huntington FBI Drug Task Force and the Cabell County Sheriff’s Department conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution. Chief United States District Judge Robert C. Chambers imposed the sentence.
This prosecution was part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Huntington man pleads guilty to federal heroin crimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man caught with heroin in January 2015 pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Daniel Justin Watts, 32, entered his guilty plea to a single-count indictment charging him with possession with intent to distribute heroin.
On January 7, 2015, agents with the Huntington FBI Drug Task Force arrested Watts in a parking lot at 1034 14th Street West in Huntington after observing Watts distributing heroin in the area. Watts was transported to the Huntington Police Department and, during a search, was found to be in possession of heroin he had concealed in his groin area. The heroin was packaged for distribution, and Watts admitted that he intended to sell the heroin. As part of the plea agreement, Watts further admitted that he distributed heroin in West Huntington during the months of December 2014 and January 2015.
Watts faces up to 20 years in federal prison when he is sentenced on November 20, 2017.
The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
This prosecution is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of 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 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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Hearing Set for Khleborod and Barrero in Federal CourtRead the Press Release
Columbia, South Carolina-------United States Attorney Beth Drake announced today that a hearing for Theodore Vitaliy Khleborod, age 28, and Ana Milena Barrero, age 24, has been set for Thursday morning, August 17, 2017, at 10:00 A.M. in the federal courthouse in Greenville. Khleborod and Barrero have been charged in a multi-count, superseding indictment with conspiring to possess with the intent to distribute numerous drugs, including fentanyl and U-47700.
The case was investigated by Special Agents with ICE-Homeland Security Investigations, Border Enforcement Security Task Force (BEST), the United States Postal Inspection Service, the Drug Enforcement Administration, the Greenville County Sheriff’s Office, the Greenville Police Department, and the Spartanburg County Sheriff’s Office.
Assistant United States Attorney Andy Moorman, Deputy Criminal Chief for the Narcotics Division, is prosecuting the case.
The United States Attorney stated that all charges are merely accusations and that the defendants are presumed innocent until and unless proven guilty.
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Greer Man Sentenced to 82 Months on Child Porn ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Scott Linnell, age 36, of Greer, was sentenced today in Greenville for possession of child pornography, a violation of Title 18, United States Code, Section 2252A. United States District Judge Bruce Howe Hendricks, of Charleston, sentenced Linnell to 82 months in the Bureau of Prisons and ordered that he be under lifetime supervision.
Evidence presented at the change of plea hearing established that on March 10, 2015, an undercover law enforcement officer signed into the undercover Kik user account in order to conduct child exploitation investigations on the Kik Messenger application. On that same day, the undercover agent saw that user “phx_medic” had posted sexually explicit material in the Kik Messenger chat room “#lolitalovers” on March 8, 2015. At this time, the undercover agent observed that user “phx_medic” had posted fourteen images into the Kik chat room. The undercover agent was able to download and save these images to an undercover device. The IP address was logged.
In a second, unrelated undercover investigation, an individual at the same IP address was found to be trading child pornography and engaging in sexually explicit chats on a web forum used by individuals interested in sexual contact with children.
Based on these incidents, further investigation traced the IP address involved in the illicit activity to Linnell’s home. On May 27, 2015, a federal search warrant was executed at the home. Computers and other devices were seized. A forensic examination of the devices seized revealed 8,906 images of child pornography. Of these images, 773 were of infants and toddlers. Ninety of these images were sadistic, masochistic, or violent.
The case was investigated by agents of the United States Postal Inspection Service and ICE - Homeland Security Investigations. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
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Gang Member Sentenced for Firearm PossessionRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore has sentenced Rorn Sorn (34, St. Petersburg) to six years and five months in federal prison for possessing a firearm as a convicted felon. He pleaded guilty on April 24, 2017.
According to court documents, on December 17, 2016, Sorn and another individual entered Club Lust in St. Petersburg and went into the restroom. A few moments later, a security guard heard a gunshot go off in the restroom and observed Sorn and another male as they were exiting the restroom. The security guard asked the men if they had fired a gun. Sorn replied, “It was an accident, man. I was just trying to take a selfie.” Nightclub employees observed a bullet hole in the bathroom mirror that went through the wall into the ladies’ room.
Officers from the St. Petersburg Police Department arrested Sorn a short time later. A .40 caliber firearm, a gun magazine, marijuana, and Xanax pills were recovered from his pockets. Sorn, a member of the Asian Pride Gang, has prior convictions for burglary of a dwelling and attempted first-degree murder and is therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Shauna S. Hale.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Fresno Man Sentenced to 18 Months in Prison for a Conspiracy to Distribute MarijuanaRead the Press Release
FRESNO, Calif. — U.S. District Judge Anthony W. Ishii sentenced Iran Dennis “Denny” Foster, 46, of Fresno, today to 18 months in prison for conspiring to distribute and possessing with intent to distribute marijuana, U.S. Attorney Phillip A. Talbert announced.
Iran Foster is one of seven defendants named in a multicount indictment returned on April 9, 2015, charging them with a variety of drug trafficking offenses. One of the defendants was former Fresno deputy police chief Keith Foster. His nephew, Iran Foster, regularly traveled to Northern California to purchase marijuana for distribution. Iran Foster pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute marijuana. According to the plea agreement, Iran Foster admitted that his primary source of income was derived from marijuana sales.
Keith Foster proceeded to trial, and on May 23, 2017, a jury found him guilty of conspiracy to distribute and possess with intent to distribute heroin and conspiracy to distribute and possess with intent to distribute marijuana. He is scheduled to be sentenced on November 13, 2017.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation. Assistant U.S. Attorneys Melanie L. Alsworth and Dawrence W. Rice Jr. are prosecuting the case.
Five co-defendants have pleaded guilty and have either been sentenced or are awaiting sentencing. Ricky Reynolds is scheduled to be sentenced on November 13, 2017. Randy Flowers, 51, was sentenced on July 10, 2017 to two years and nine months in prison. On October 11, 2016, Rafael Guzman, 43, of Fresno was sentenced to three years and four months in prison. Jennifer Donabedian, 38, of Fresno, pleaded guilty to concealing a felony and served 12 months’ probation. Sarah Ybarra, 39, of Fresno, pleaded guilty to conspiracy to distribute marijuana and served one year in prison.
Founder, CEO, and Employee of International Adoption Guides (IAG) Sentenced for Adoption Fraud SchemesRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Mary Mooney, age 58, of Mooresville, North Carolina; James Harding, age 57, of Lawrenceville, Georgia; and Alisa Bivens, age 36, of Gastonia, North Carolina were sentenced last week in federal court in Charleston, South Carolina. Mooney was sentenced for Accreditation Fraud regarding adoption conducted in Kazakhstan, in violation of 42 U.S.C. § 14944, and Harding and Bivens were sentenced for conspiring to defraud the United States in connection with adoptions conducted in Ethiopia, in violation of 18 U.S.C. § 371.
United States District Judge David C. Norton of Charleston sentenced Mary Mooney to 18 months incarceration, 3 years of supervised release, and $223,946.04 of restitution to victims who adopted children from Kazakhstan. James Harding was sentenced to 12 months incarceration, 3 years supervised release, and $301,224.25 of restitution. Alisa Bivens, was sentenced to one year probation, and $31,800 restitution to two victims listed in the Indictment with whom she had direct contact.
Evidence presented at James Harding and Alisa Bivens guilty pleas and sentencings established that they and Mary Mooney on behalf of IAG submitted fraudulent documents to the U.S. Department of State to facilitate adoptions of Ethiopian children by U.S. parents from 2006 until 2009. In support of U.S. visa applications for the Ethiopian children, they submitted false documentation, including contracts of adoption signed by orphanages that could not properly give the children up for adoption because, for example, the child in question was never cared for or never resided at the orphanage. Harding and Bivens admitted to a scheme conducted with Mooney to pay bribes to two Ethiopian officials, a teacher at a government school, and a head of a regional ministry for women’s and children’s affairs, to facilitate the fraudulent adoptions. Both Harding and Bivens pled guilty and cooperated, providing substantial assistance to the Government.
Evidence presented at Mooney’s hearings established that she made false statements to the Council on Accreditation (COA), which granted IAG accreditation to provide adoption services. IAG marketed itself as a COA-accredited adoption services provider and numerous clients relied on IAG’s accreditation to confirm IAG’s adoption services were ethical and in compliance with the law. Mooney admitted in support of IAG’s application for accreditation she made several false representations, including: falsely stating that IAG was in substantial compliance with the relevant regulations; intentionally failing to list her co-defendant, Alisa Bivens, as one of IAG’s employees providing adoption services; and intentionally failing to disclose that James Harding, another co-defendant, was the functional director and head of the company. All of these false and fraudulent statements were material to COA’s decision to accredit IAG to conduct intercountry adoptions.
“The defendants undermined the laws and regulations designed to ensure the integrity of the inter-country adoption process. The Diplomatic Security Service conducted an excellent investigation to uncover the scheme to profit from fraudulently securing the adoption of children, some of the most vulnerable victims in society,” stated United States Attorney Beth Drake.
"This sentencing makes a strong statement to those who would attempt to exploit the most vulnerable among us. The Diplomatic Security Service is dedicated to ensuring those who commit these crimes are brought to justice,” said Christian J. Schurman, Deputy Assistant Secretary for International Programs at the State Department’s Diplomatic Security Service (DSS). “Our global presence allows DSS to work with both U.S. and foreign law enforcement to stop those who would profit from illicit schemes like fraudulent adoption.”
The case was investigated by the U.S. Department of State’s Diplomatic Security Service. Assistant United States Attorney Jamie Lea Schoen of the District of South Carolina and Department of Justice Trial Attorney Derek Ettinger handled the sentencings in this case.
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Former Medical Doctor and Business Partner Indicted for $7.1 Million Medicare Health Care Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – Two Californians, a former medical doctor and his business partner, who were indicted on July 5, 2017 for a $7.1 million Medicare health care fraud scheme that occurred at three Las Vegas hospices, made their initial appearances in federal court today, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Camilo Q. Primero, 74, of San Dimas, Calif., and Aurora S. Beltran, 61, of Glendora, Calif., are each charged with one count of conspiracy to commit health care fraud; one count of health care fraud; one count of fraudulent concealment involving a federal health care program; three counts of false statements relating to a health benefit program; and thirteen counts of money laundering. The defendants face a criminal forfeiture money judgment in the amount of at least $7,083,130.
According to the indictment, from about Jan. 1, 2012 to about July 5, 2017, Primero, a former medical doctor and owner of Angel Eye Hospice, Vision Home Health Care, and Advent Hospice, all in Las Vegas, Nevada, and Beltran, Primero’s business partner, allegedly operated a scheme to fraudulently obtain $7.1 million from the federal Medicare program. They allegedly filed false enrollment documents with Medicare to enable Primero to operate hospice and home care agencies through nominees. Furthermore, they allegedly submitted hospice care claims for people who were not terminally ill and did not require hospice care.
The case is being investigated by the FBI and the U.S. Department of Health and Human Services-OIG, with assistance from IRS-Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Patrick Burns.
For prevention tips and information about Medicare fraud, visit www.medicare.gov.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty in a court of law.
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Former Manager of Mescalero Apache Tribe Owned Childcare Center Pleads Guilty to Theft ChargeRead the Press Release
ALBUQUERQUE – The former manager of Team Members Childcare Center (TMCC), a childcare center owned by the Mescalero Apache Tribe and operated at the Inn of the Mountain Gods (IMG) on behalf of its employees that require childcare pled guilty today in federal court in Las Cruces, N.M., to a theft of government money charge.
Gina McPherson, 49, of Capitan, N.M., was arrested on May 1, 2017, and was charged by criminal complaint with theft of public money. According to the criminal complaint, McPherson committed the crime from Sept. 2011 through Jan. 2016, on the Mescalero Apache Indian Reservation in Otero County, N.M. McPherson was the manager of TMCC from March 2011 through her resignation in Dec. 2015. During her time as manager, McPherson enrolled TMCC into the Child and Adult Food Care Program (CACFP) administered by the State of New Mexico Children, Youth and Families Department (CYFD), which enables qualifying childcare centers to provide meals to children from eligible families free of charge. Within a few months of McPherson’s resignation, IMG management became aware that TMCC was not receiving meal reimbursement funds from CACFP although CYFD records showed that funds had been disbursed to TMCC since Aug. 2011. Further investigation revealed that CYFD paid over $400,000 to McPherson for TMCC meals consumed by TMCC children from Aug. 2011 through Jan. 2016.
During today’s proceedings, McPherson pled guilty to an information charging her with theft of government money. In entering the guilty plea, McPherson admitted that while she was employed by IMG in Mescalero, N.M., as the manager for a child daycare program, she stole more than $400,000 in federal funds that were intended as reimbursement for meals consumed by children attending the daycare program. McPherson also admitted that, unbeknownst to IMG management, she enrolled the daycare attendees in a meal reimbursement program administered by CYFD which used funds disbursed by the federal Food and Drug Administration. The meal reimbursement checks went directly to McPherson and she converted those funds to her own use.
At sentencing, McPherson faces a maximum penalty of ten years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Las Cruces office of the FBI and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
Former Madison County, Virginia Detective Pleads Guilty to Sexually Exploiting MinorsRead the Press Release
A former detective with the Madison County Sheriff’s Office, who was most recently assigned to the Internet Crimes Against Children Task Force, pleaded guilty today in the U.S. District Court for the Western District of Virginia in Charlottesville to multiple charges of sexually exploiting minors. Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Rick A. Mountcastle for the Western District of Virginia made the announcement.
Bruce Arlie Harvey, 41, of Reva, Va., pleaded guilty to three counts of transporting a minor across state lines with the intent to engage in criminal sexual acts, three counts of interstate travel with minors with the intent to engage in illicit sexual conduct and one count of possession of child pornography.
According to the information presented during the guilty plea hearing, Harvey, while a karate instructor at the Virginia Tong Leong School of Karate in Madison, began making sexual advances toward the two minor female victims in this case while they were students at the karate school. Harvey engaged in illegal sexual acts with these children after he began giving them private karate lessons and began traveling with each of them to karate competitions and other events at various out-of-state locations, including Ocean City, Md. This conduct took place between 1998 and 2007.
At the time of his arrest on May 3, investigators recovered a Sony microcassette in a bedroom closet that contained a film clip dated Feb. 14, 2007, that showed one of the victims performing a sexual act with Harvey in his Madison County home.
The FBI and the Virginia State Police investigated this case. Assistant U.S. Attorney Nancy S. Healey and Trial Attorney Lauren S. Kupersmith of the Child Exploitation and Obscenity Section of the Justice Department’s Criminal Division are prosecuting this case.
Former Madison County Detective Pleads Guilty to Sexually Exploiting MinorsRead the Press Release
Charlottesville, VIRGINIA – A former detective with the Madison County Sheriff’s Office, who was most recently assigned to the Internet Crimes Against Children Task Force, pled guilty today in the United States District Court for the Western District of Virginia in Charlottesville to multiple charges of sexually exploiting minors, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting United States Attorney Rick A. Mountcastle announced.
Bruce Arlie Harvey, 41, of Reva, Va., pled guilty today to three counts of transporting a minor across state lines with the intent to engage in criminal sexual acts, three counts of interstate travel with minors with the intent to engage in illicit sexual conduct, and one count of possession of child pornography.
“Harvey abused his positions of trust as a law enforcement officer and as a karate instructor to sexually exploit two of his female karate students beginning when each was approximately 13 years old, and lasting at least two years for one victim, and at least four years for the other victim,” Acting United States Attorney Rick A. Mountcastle said today. “This case shows that child predators infiltrate every aspect of our society, including law enforcement. Parents should always be on guard and should always remember that child predators may gravitate to vocations and places where they can occupy positions of trust and have easy access to children. Criminals who exploit children should know that there is no longer a statute of limitations for these types of crimes and the United States Attorney’s Office will aggressively prosecute them no matter how long ago they exploited their victims,” said Acting United States Attorney Mountcastle. “While there is little that we can do to reverse the trauma and harm that Harvey inflicted on the two innocent victims, it is our sincerest hope that this prosecution will be a first step toward healing, restoration, and renewal for each of them,” he added. Acting United States Attorney Mountcastle commended the teamwork of the Federal Bureau of Investigation, the Virginia State Police, and the prosecutors.
“Harvey was every parent's worst nightmare. A multi-victim predator camouflaging himself in positions of trust. School resource officer. Child exploitation investigator. Karate instructor. Despicable,” said Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Division. “I want to, once again, thank the United States Attorney's Office for their tenacity, for their expertise, and for their professionalism.”
According to the information presented during the guilty plea hearing, Harvey, while a karate instructor at the Virginia Tong Leong School of Karate in Madison, began making sexual advances toward the two minor female victims in this case while they were students at the karate school. Harvey engaged in illegal sexual acts with these children after he began giving them private karate lessons and began traveling with each of them to karate competitions and other events at various out-of-state locations, including Ocean City, Maryland.
At the time of his arrest on May 3, 2017, investigators recovered a Sony microcassette in a bedroom closet that contained a film clip dated February 14, 2007, that showed one of the victims performing a sexual act with Harvey in his Madison County home.
The Federal Bureau of Investigation and the Virginia State Police investigated this case. Assistant United States Attorney Nancy S. Healey and Department of Justice- Child Exploitation and Obscenity Section Trial Attorney Lauren S. Kupersmith are prosecuting it.
Former Brookhaven Resident Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – Brian Monroe Lewis, 33, formerly of Brookhaven, Mississippi, pled guilty today before Senior U.S. District Judge David C. Bramlette III to possession of a firearm by a convicted felon, announced Acting U.S. Attorney Harold Brittain.
Lewis admitted that, on December 20, 2016, he possessed a HiPoint brand, model C9, 9mm handgun after having previously been convicted in Mississippi state court for aggravated assault in 2006 and possession of a cocaine in 2010.
Lewis is currently detained in the Madison County Jail and will be sentenced on November 14, 2017, by Senior U.S. District Judge David C. Bramlette III, at the U.S. Courthouse in Natchez. Lewis faces a maximum sentence of 10 years in prison and a $250,000 fine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Carla J. Clark is prosecuting the case for the government.
Florida Resident Sentenced to Prison for Stolen Identity Refund Fraud SchemeRead the Press Release
A Miami-Dade County, Florida resident was sentenced to 70 months in prison for his role in a stolen identity refund fraud scheme, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida.
According to documents and information provided to the court, from approximately 2008 through January 2015, in Broward and Miami-Dade counties, Jean Leroy Destine, 36, and others, obtained stolen IDs, to include the personal identifying information of prisoners and deceased individuals. They used this information to prepare and file with the Internal Revenue Service (IRS) approximately 2,000 tax returns seeking more than $2 million in fraudulent refunds. Destine and his co-conspirators covered their tracks by recruiting individuals to obtain Electronic Filing Identification Numbers (EFINs) in their names from the IRS and then used these EFINs to electronically file the fraudulent returns. The conspirators directed the refunds to debit cards as well as treasury checks mailed to various addresses. The refund checks were cashed at different check cashing stores and funds were withdrawn from the debit cards at Western Union locations and ATMs.
In addition to the term of prison imposed, U.S. District Judge Federico A. Moreno ordered Destine to serve three years of supervised release and to pay $2,108,000.00 in restitution to the IRS. Destine pleaded guilty in May 2017 to one count of a multi-object conspiracy to defraud the IRS, commit wire fraud and commit aggravated identity theft and one count of aggravated identity theft.
Acting Assistant Attorney General Goldberg and Acting U.S. Attorney Greenberg commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Neil Karadbil of the Southern District of Florida and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Eagle Butte Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on August 10, 2017, by U.S. District Judge Roberto A. Lange.
Donni DaRae Traversie, a/k/a Donna Dupris, age 27, was sentenced to 78 months in custody, followed by 3 years of supervised release, a fine of $500, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $100.
Traversie was indicted by a federal grand jury on January 19, 2017. She pled guilty on May 16, 2017.
Between April of 2012 and January of 2017, Traversie knowingly and intentionally conspired with others to distribute methamphetamine in the District of South Dakota. Traversie received distributable quantities of methamphetamine and distributed some of the methamphetamine in South Dakota. The individuals who provided Traversie with the methamphetamine knew that she intended to engage in further distribution. Traversie admitted that her distribution conduct involved between 500 grams and 1.5 kilograms of methamphetamine.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Traversie was immediately turned over to the custody of the U.S. Marshals Service.
Eagle Butte Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on August 10, 2017, by U.S. District Judge Roberto A. Lange.
Kenneth Bowker, Jr., age 58, was sentenced to 24 months in custody, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Bowker was indicted by a federal grand jury on April 12, 2017. He pled guilty on July 17, 2017.
The conviction stems from Bowker failing to register as a sex offender as required by federal law between January 26, 2017, and February 5, 2017. Bowker had previously been convicted of a sex offense in federal court, which requires him to register for the rest of his life.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Jay Miller prosecuted the case.
Bowker was immediately turned over to the custody of the U.S. Marshals Service.
Dubuque Man Pleads Guilty to Robbing Bank, Illegally Possessing a Gun, and Selling HeroinRead the Press Release
A man who robbed a bank, possessed a gun as a felon, and sold heroin causing an overdose, all within the span of one year, pled guilty today in federal court in Cedar Rapids.
Gregory Stapleton, age 31, from Dubuque, Iowa, was convicted of aiding and abetting a bank robbery, distributing heroin, furanyl fentanyl, and acryl fentanyl resulting in serious bodily injury, and possessing a firearm as a felon.
Court documents show that Stapleton assisted in the robbery of the Fidelity Bank and Trust in Maquoketa, Iowa, on March 8, 2017. Stapleton visited the bank the day prior to the robbery in order to “case” the bank. During the robbery, Stapleton was parked across the street listening to a police scanner. Stapleton also provided his codefendant, Dante Rhodes, a vehicle for Rhodes to drive to Maquoketa and rob the bank. Rhodes pled guilty to the bank robbery earlier this month.
Stapleton’s drug and gun charges were contained in an Information that was filed on August 9, 2017. Stapleton admitted that, on January 8, 2017, he gave a mixture of heroin, furanyl fentanyl, and acryl fentanyl to another person. The heroin mixture sold by Stapleton caused an overdose in which the victim sustained serious bodily injury. Stapleton also admitted that he possessed a firearm on July 28, 2016. Stapleton has two prior drug felony convictions and was prohibited from possessing firearms.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Stapleton remains in custody of the United States Marshal pending sentencing. Stapleton faces a mandatory minimum sentence of 20 years’ imprisonment and a possible maximum sentence of life imprisonment, a $1,500,000 fine, $300 in special assessments, and up to a lifetime term of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Justin Lightfoot and was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, and Firearms, the Maquoketa Police Department, the Dubuque Police Department, and the Dubuque County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-1022.
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Drug Trafficker Pleads Guilty to Making Arrangements to Send Tractor-Trailers Loaded with Narcotics from Sinaloa, Mexico Destined for San Diego, CaliforniaRead the Press Release
Assistant U.S. Attorneys Adam L. Braverman (619) 546-6717 and Fred A. Sheppard (619) 546-8237
NEWS RELEASE SUMMARY – August 14, 2017
On the day scheduled for his trial, Jesus Manuel Salazar-Nunez entered a guilty plea before United States District Court Judge Dana M. Sabraw to an indictment charging him with conspiracy to import methamphetamine, cocaine and heroin into the United States from a place outside thereof, in violation of Title 21, United States Code, Sections 952, 960 and 963.
Jesus Manuel Salazar-Nunez was charged in a sealed indictment on September 15, 2015. A sealed arrest warrant was issued that same day. Salazar-Nunez was arrested the following day when he flew into Hartsfield-Jackson Atlanta International Airport from Guadalajara, Mexico.
In 2015, Drug Enforcement Administration agents intercepted the communications of the defendant and others making arrangements for tractor-trailers to travel from Sinaloa, Mexico to Baja California, Mexico, carrying hundreds of pounds of methamphetamine, cocaine and heroin among canned food and drinks, frozen shrimp and vegetable boxes and other household goods. Once they arrived at a Tijuana warehouse, the narcotics were unloaded, distributed to couriers and smuggled into San Diego, California. connection with the entry of his guilty plea, Salazar-Nunez admitted to making arrangements for four tractor-trailers that were seized by Mexican law enforcement, including: a tractor-trailer stopped on March 28, 2015, with a total of approximately 285 kilograms of methamphetamine, 3 kilograms of heroin and 11 kilograms of cocaine; two tractor-trailers stopped on April 28, 2015, with a total of approximately 422 kilograms of methamphetamine, 38 kilograms of heroin and 4 kilograms of cocaine; and a tractor-trailer stopped on August 21, 2015, with approximately 165 kilograms of methamphetamine.
Salazar-Nunez is scheduled to be sentenced on November 9 before Judge Sabraw.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
DEFENDANT Criminal Case No. 15-CR-2380-DMS
Jesus Manuel Salazar-Nunez Age: 35
SUMMARY OF CHARGES
Conspiracy to Import Methamphetamine, Cocaine and Heroin, in violation of Title 21, United States Code, Sections 952, 960 and 963.
Penalties: Mandatory Minimum 10 years and Maximum Life in Prison, $10,000,000 fine, $100 Special Assessment, Supervised Release up to Life
INVESTIGATING AGENCIES
Drug Enforcement Administration
Customs and Border Protection Office of Field Operations
Customs and Border Protection Office of Border Patrol
San Diego Law Enforcement Coordination Center
Homeland Security Investigations
Internal Revenue Service
Driver who Fled Border Patrol and Crashed While Transporting Unauthorized Immigrants Sentenced to 48 Months in PrisonRead the Press Release
Assistant U.S. Attorney Meghan Heesch (619) 546-9442
NEWS RELEASE SUMMARY – August 14, 2017
SAN DIEGO – Miguel Angel Tejada-Loaiza was sentenced in federal court today to 48 months in prison for transporting unauthorized immigrants and in the process fleeing U.S. Border Patrol Agents and crashing his vehicle into a guard rail.
Tejada-Loaiza, himself a Mexican citizen without status in the United States, drove six other unauthorized immigrants near the Otay Mesa Port of Entry after the group had unlawfully entered the United States. Two passengers were ejected from the vehicle and were hospitalized for several weeks with serious injuries.
On April 23, 2017, U.S. Border Patrol Agents spotted a Ford Expedition vehicle parked in an area where a seismic intrusion device had detected movement. An agent heard yelling coming from the vehicle and saw the driver, Tejada-Loaiza, signaling for people to enter the vehicle. Agents followed the Expedition in a marked Border Patrol unit and tried to pull the vehicle over. Tejada-Loaiza abruptly turned onto a north-bound road and sped up, failing to yield to the agents. Tejada-Loaiza reached speeds of approximately 75 miles per hour.
Tejada-Loaiza suddenly made a sharp turn, colliding with the end of the guardrail. The vehicle slid down an embankment, ejecting two passengers. One suffered major injuries that required emergency back surgery; he was on a ventilator in the hospital for over three weeks. The other was an unaccompanied minor who suffered lacerations on his face and body.
Tejada-Loaiza pleaded guilty to Illegal Transportation of Aliens for Financial Gain on May 23, 2017. In his plea, he acknowledged he knew he was in violation of immigration laws when he transported the six unauthorized immigrants in the vehicle. Tejada-Loaiza admitted the individuals he transported were paying others as much as $5,000 to be smuggled into the United States and transported illegally.
At sentencing, U.S. District Judge Larry A. Burns focused on the “callous” nature of Tejada-Loaiza’s decisions and noted that of the alien smuggling cases he has seen over the years, “this case is at the very aggravated end of the spectrum.”
“Smuggling endangers not only those being transported illegally, but the general motoring public,” said Acting U.S. Attorney Alana W. Robinson. “Smugglers commodify human beings, prioritizing profits over public safety. Our office will vigorously prosecute individuals who capitalize on the illegal smuggling of people into and within the United States.”
“The circumstances surrounding this case are tragic, and once again demonstrate the disregard for human life displayed by these smugglers,” said Chief Patrol Agent Richard A. Barlow, U.S. Border Patrol. “We are grateful to the U.S. Attorney’s Office for their hard work and dedication to punish the individuals who endanger the lives of so many people.”
DEFENDANT Case Number: 17CR1298-LAB
Miguel Angel Tejada-Loaiza Age: 21 Mazatlan, Sinaloa, Mexico
SUMMARY OF CHARGE
Illegal Transportation of Aliens for Financial Gain – Title 8, United States Code, Section 1324(a)(1)(A)(ii); Maximum Penalty: 10 years in prison.
AGENCY
U.S. Border Patrol
Detroit man sentenced to over 17 years in federal prison for involvement in heroin conspiracyRead the Press Release
HUNTINGTON, W.Va. – A Detroit man was sentenced today to 17 and a half years in federal prison for his role in a heroin conspiracy, announced United States Attorney Carol Casto. Mark Steven Bush, Jr., 30, of Detroit, previously pleaded guilty to conspiracy to distribute 100 grams or more of heroin.
Between November 2014 and June 8, 2016, Bush led a conspiracy with other individuals who either sold heroin for him, rented and purchased cars in their name for him, stored heroin and guns for him, or transferred proceeds of drug trafficking for him. During the conspiracy, those selling drugs for Bush would receive heroin on consignment or “front.” Bush would later receive proceeds from the sales. Bush enlisted the aid of others who permitted Bush to title cars in their names in exchange for payments of heroin. These individuals also provided transportation for Bush and those selling heroin on Bush’s behalf. Bush utilized another individual who made trips to Detroit to deliver money and transport heroin and oxymorphone pills back to Huntington on Bush’s behalf or on the behalf of individuals working with Bush. Bush also stored and distributed heroin at various residences in the Huntington area. In a search at 729 Oxford Drive on May 23, 2016, approximately 85 grams of heroin and four firearms were seized, all of which Bush admitted he possessed. As part of the plea agreement, Bush also admitted to the other drug trafficking activity charged in the indictment.
At today’s hearing, the Court found that Bush was responsible for the distribution of up to 10 kilograms of heroin in the Huntington area. The Court further found that Bush possessed firearms during the conspiracy, and that he served as a leader and organizer of at least five other participants.
The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by Chief United States District Judge Robert C. Chambers.
This prosecution is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of 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 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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Council Bluffs Resident Sentenced for Possession of Child PornographyRead the Press Release
COUNCIL BLUFFS, IA - On August 11, 2017, Shawn Sidney Beu, 38, from Council Bluffs, Iowa, was sentenced heather Jean Reekrby United States District Court Judge Stephanie M. Rose to 240 months in prison followed by ten years of supervised release for possession of child pornography, announced United States Attorney Kevin E. VanderSchel.
Beu pleaded guilty to possession of child pornography on April 4, 2017. The guilty plea resulted from an investigation that began with a tip received by the Department of Homeland Security from the National Center for Missing and Exploited Children that a cloud storage facility used by Beu contained child pornography. A search warrant served on Beu’s residence located numerous computer devices that contained images of child pornography; some of these images were determined to have been created by Beu in his residence. In addition to federal charges, Beu was convicted in Pottawattamie County District Court of several counts of sexual exploitation of a minor as a result of this investigation.
The Council Bluffs Police Department and Department of Homeland Security conducted the investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
-END-
Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Colombian National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON – A Colombian national was sentenced on Friday, Aug. 11, 2017, in federal court in Boston for illegally reentering the United States after deportation.
Elkin Dario Macias Villa, 47, pleaded guilty to one count of unlawful reentry of a deported alien before U.S. District Court Judge Indira Talwani, who immediately sentenced Macias Villa to time served and one year of supervised release. Macias Villa will be subject to deportation upon completion of state court proceedings for a drug trafficking charge.
Macias Elkin was encountered in Boston on May 17, 2017, after having been previously deported from the United States in March 2004.
Acting United States Attorney William D. Weinreb and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Christine J. Wichers of Weinreb’s Major Crimes Unit prosecuted the case.
Cleveland Doctor Sentenced in Hospice Fraud CaseRead the Press Release
OXFORD, Miss. – Robert H. Norman, Acting United States Attorney for the Northern District of Mississippi; Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General; Christopher Freeze, Special Agent in Charge at the Federal Bureau of Investigation, and Mississippi Attorney General Jim Hood announced that:
Dr. Nathaniel Brown, 62, of Cleveland, Mississippi, was sentenced Thursday, August 10, 2017 before United States District Judge Neal B. Biggers, Jr. in Oxford, Mississippi. Dr. Brown was sentenced to serve thirty-nine (39) months in federal prison followed by three (3) years supervised release and ordered to pay $1,941,254 in restitution to the Medicare program.
In January, Dr. Brown pled guilty to conspiracy to commit healthcare fraud in violation of 18 U.S.C. §§ 1347 & 1349. Brown admitted to referring patients who were not hospice appropriate to Milestone Hospice and Sandanna Hospice which led to $1,941,254 in Medicare payments to Milestone and Sandanna. Brown also admitted to receiving $47,750 in payments by check from the hospice owner in addition to cash payments.
Dr. Brown is a corrupt doctor who participated in a hospice scam to exploit patients and their families,” said Special Agent in Charge Derrick L. Jackson, of the U.S. Department of Health and Human Services, Office of Inspector General. “The verdict today should send a clear message to dishonest medical professionals who abuse our health care system - they will be caught and face significant criminal charges.”
“Joint investigations continue to be indispensable in the fight against fraud in healthcare benefit programs,” said Attorney General Jim Hood. “We will continue to work with our federal and state partners in this ongoing battle to protect the resources needed to serve our most vulnerable citizens.”
"It is important the Medicare fund is properly guarded against inappropriate billing by health care providers, and patients are receiving those services billed to Medicare,” said Christopher Freeze, Special Agent in Charge of the FBI in Mississippi. “The FBI will continue to take a strong stance against individuals who engage in health care fraud.”
This case was investigated jointly by the US Department of Health and Human Services, Office of Inspector General, the Medicaid Fraud Control Unit of the Mississippi Attorney General’s Office and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorneys Clay Dabbs and Clay Joyner.
Charleston drug dealer sentenced to over five years in federal prison for heroin chargeRead the Press Release
CHARLESTON, W.Va. – A Charleston heroin dealer was sentenced today to five years and three months in federal prison for a drug crime, announced United States Attorney Carol Casto. Albert Bowman, Jr., 40, previously pleaded guilty to distribution of heroin.
Bowman admitted that on July 5, 2016, he sold heroin to a confidential informant working with law enforcement. The controlled purchase took place inside Bowman’s residence on Russell Street in Charleston. Officers also executed a search warrant at the residence and located cash, additional drugs, and firearms. Bowman additionally admitted that he had distributed over 130 grams of heroin in the months leading up to the search warrant. As part of the plea agreement, Bowman also admitted to evidence of the other drug trafficking conduct charged in the indictment.
The investigation was conducted by the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Haley Bunn is responsible for the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
This case was brought 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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Canadian man charged with production of child pornography after meeting teen at Rocky River parkRead the Press Release
A Canadian man arrested at a park in Rocky River was charged in federal court with production of child pornography.
Joseph B. Haggerty, 49, was scheduled to be in court Monday afternoon.
Homeland Security Investigations (HSI) agents in Austin, Texas, received a tip that Haggerty had been soliciting nude images from children. Haggerty was scheduled to fly to Cleveland from Toronto on Thursday. HSI agents in Cleveland followed him upon his arrival in Ohio to Linden Park in Rocky River, where he met a minor female, according to a criminal affidavit.
Haggerty had a reservation at the Days Inn on Lake Avenue in Lakewood. He was carrying a bag with clothing, 12 condoms, a stuffed animal and a package of baby pacifiers, according to the affidavit.
The minor he met in Rocky River told agents she met Haggerty on Kik in December 2016 and they subsequently communicated via Skype. She said the calls would last hours and Haggerty would direct her to strip naked and engage in sexually explicit conduct, according to the affidavit.
The girl told her relatives she was going on a camping trip for the weekend but actually planned to go the Lakewood hotel with Haggerty, according to the affidavit.
HSI agents contacted the Royal Canadian Mounted Police’s Internet Child Exploitation Unit, which executed search warrants at Haggerty’s home. They found nude images of the Ohio minor, contact information for the child in Texas, as well as evidence of an estimated five other potential victims.
“This defendant victimized at least one child and possibly many more,” Acting U.S. Attorney David A. Sierleja said. “This case is another stark reminder to parents that they need to know who their children are communicating with on social media and in real life.”
“Through our partnerships with state, local, federal and international law enforcement agencies, HSI will continue to vigorously investigate child exploitation cases like this one to ensure that special agents continue to serve as a powerful barrier between predators and children," said Steve Francis, Special Agent in Charge of HSI’s Detroit Office, which includes Ohio.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This case was investigated by HSI’s Cleveland and Austin offices, with assistance from the Rocky River Police Department and the Royal Canadian Mounted Police. It is being prosecuted by Assistant U.S. Attorney Brian McDonough.
A charge 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.
Canadian Man Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Lawrence Hong, 21, of Canada, who was convicted of possession of a firearm by an unlawful user of a controlled substance, was sentenced to time served by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Michael P. Felicetta, who handled the case, stated that on January 21, 2017, the defendant presented himself for inspection as a non-immigrant visitor to the United States from Canada at the Peace Bridge Port of Entry. Hong was traveling alone in a 2016 Volkswagen that had an Ontario registration. The defendant told the Customs and Border Protection (CBP) officer performing the primary inspection that he was going to Buffalo to shop for a few hours at the mall and that he had nothing to declare. Despite his professed planned shopping trip, defendant had no explanation for the presence of his pet dog in the vehicle with him nor could the defendant provide details of what he intended to do with the dog while he was shopping.
Hong was referred for a secondary inspection during which a CBP officer ran a narcotics detection K-9 dog on the defendant’s vehicle. The officer opened the driver's side door of the vehicle and discovered a 9 mm handgun. During a full inspection the vehicle, $1,122.00 in cash as well as a piece of paper containing Xanax pills, hypodermic needles, and elastic bands were discovered.
Also during the secondary inspection, Hong told an officer that he was going to Ohio to purchase another firearm. The defendant also told the officer that the firearm discovered in his vehicle was previously purchased in the United States and illegally smuggled into Canada. Hong further admitted that he was a heroin addict who was undergoing methadone treatment.
The sentencing is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
Canadian Man Arrested for Attepting to Ship Live Snakes Through the MailRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Chaoyi Le, 28, of Mississauga, Ontario, Canada, was arrested and charged by criminal complaint with attempt to export and send from the United States, seven live ball pythons and three live albino western hog-nosed snakes, contrary to United States laws and regulations. The charges carry a maximum penalty of 10 years in prison.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that on February 28, 2014, the defendant had an encounter with U.S. Fish and Wildlife Service personnel in Chicago, IL while traveling from Toronto, Ontario to Shanghai, China. Le was found to be in possession of 55 live reptiles, many afforded protection under the Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES). CITES is a treaty providing protection to fish, wildlife, and plants that may become imperiled due to the demands of international markets. The live reptiles possessed by the defendant included 19 ball pythons, eight surinam horned frogs, two tiger leg tree frogs, four red eye tree frogs, five crested geckos, four giant day geckos, a fisher chameleon, and 10 Jackson’s chameleons. Le was charged at that time by Violation Notice and paid a $5,000 fine.
The defendant was subsequently stopped on April 22, 2014, while entering Canada from the United States. At that time, he had three live albino western hog-nosed snakes hidden within his socks. Le, who indicated that he intended to mail the reptiles to China, failed to report for his appearance in federal court in September of 2014. However, on August 11, 2017, the U.S. Fish and Wildlife Service was notified that Le had boarded a flight from Shanghai, China, bound for Los Angeles, California. The defendant was arrested upon landing in California.
The criminal complaint is the result of an investigation by the U.S. Fish and Wildlife Service, under the direction of Honora Gordon, Special Agent-in-Charge, Northeast Region: and the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski of the Boston Division.
Le made an initial appearance today in the Central District of California and will be returned to the Western District of New York at a later date.
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.California Man Pleads Guilty to Drug ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Steven Bennett, 47 of Los Angeles, California, pleaded guilty to conspiracy to possess 50 grams or more of methamphetamine, and conspiracy to commit money laundering before Senior U.S. District William M. Skretny. The charges carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Joel L. Violanti, who is handling the case, stated that between July 2012, and January 18, 2013, the defendant conspired with others to distribute over 50 grams of methamphetamine and over 500 grams of cocaine. Bennett had the illegal narcotics shipped from California to Buffalo. The drugs would then be distributed in the Buffalo area. During that time frame, the Drug Enforcement Agency utilized and eavesdropping warrant to intercept phone calls between Bennett and his co-conspirators.
The plea is the result of an investigation by the Drug Enforcement Agency, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and the Internal Revenue Service, Criminal Investigation Division, under the direction of James D. Robnett, Special Agent in Charge, New York Field Office.
Sentencing is scheduled for November 29, 2017, at 10:00 a.m., before Judge Skretny.
Bridgeport Man Sentenced to More Than 12 Years in Federal Prison for Sex Trafficking 2 Minor GirlsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JASON PRAWL, also known as “Boots,” 29, of Bridgeport, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 151 months of imprisonment, followed by five years of supervised release, for trafficking two minors to engage in sex.
According to court documents and statements made in court, PRAWL recruited, harbored and transported two minor victims to engage in commercial acts. In the summer of 2015, PRAWL began promoting a 17-year-old female to engage in prostitution. PRAWL arranged prostitution appointments for the victim that were priced at $60 for 10 minutes, $100 for 30 minutes, $150 to $200 for an hour, and $500 or more for longer than an hour. PRAWL kept all of the money that the victim earned.
Beginning in approximately December 2015, a second 17-year-old victim began to see prostitution clients at PRAWL’s residence. PRAWL used the website Backpage.com to advertise the minor victim’s services, and the victim saw approximately four clients a day for approximately 30 days. PRAWL took approximately $20 from each appointment, as well as money for gas and other expenses when he would drive the minor victim to appointments away from his residence.
The investigation revealed that PRAWL attempted to recruit a third minor into prostitution.
Judge Shea ordered PRAWL to pay restitution of $10,080 to the first minor victim and $2,500 to the second minor victim.
PRAWL has been detained since his arrest on related state charges on March 9, 2016. On May 9, 2017, he pleaded guilty to one count of sex trafficking of a minor.
This matter was investigated by the Connecticut Human Trafficking Task Force, Federal Bureau of Investigation, Homeland Security Investigations, Connecticut State Police, Bridgeport Police Department and Milford Police Department. The case was prosecuted by Assistant U.S. Attorneys Sarala V. Nagala and David E. Novick.
Bridgeport Man Pleads Guilty to Distributing Heroin to Monroe Overdose VictimRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CAREEM BENTLEY, also known as “C-Lows,” 34, of Bridgeport, waived his right to be indicted and pleaded guilty today in New Haven federal court to one count of distribution of heroin.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on November 23, 2016, Monroe Police and emergency medical personnel responded to a residence in Monroe on a report of a suspected drug overdose. At the scene, responders encountered an unresponsive 37-year-old male lying on the floor. The male was pronounced deceased. Investigators seized the victim’s cellphone, multiple folds of suspected heroin, and other items, and subsequently concluded that the victim purchased heroin from BENTLEY in the late evening of November 22, 2016.
BENTLEY was arrested on a criminal complaint on April 26, 2017, and is currently detained. He is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on November 3, 2017, at which time he faces a maximum term of imprisonment of 20 years.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and Monroe Police Department. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe and Fairfield Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Bloods Gang Members Indicted for Racketeering, Attempted Murder, Assault and Drug TraffickingRead the Press Release
A 14-count superseding indictment was unsealed today in the United States District Court for the Eastern District of New York, charging members and associates of the Bloods street gang based in Roosevelt, Long Island with racketeering, conspiracy to murder rival gang members, conspiracy to distribute controlled substances, three gang-related attempted murders, attempted robbery and related firearms counts. The indictment was returned under seal by a federal grand jury sitting in Central Islip, New York on August 8, 2017, and relates to the gang’s activities in and around Roosevelt beginning in 2008. The superseding indictment adds three new defendants, Jermaine Green, Johnny Green and Tysaan Robinson. Jermaine Green and Johnny Green, who are brothers, were arrested this morning in Roosevelt. Tysaan Robinson was already in state custody. The defendant Tyshawn Jackson is a fugitive.
The charges were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Madeline Singas, Nassau County District Attorney, and Patrick J. Ryder, Acting Commissioner, Nassau County Police Department (NCPD).
According to court filings, between 2008 and 2016, the defendants, along with other members and associates of the Bloods street gang, carried on a violent gang war against the Crips within Roosevelt, New York. Armed with an arsenal of weapons, including AK-47s, rifles and handguns, the Bloods engaged in dozens of shootings, targeting members of the rival Crips on the residential streets of Roosevelt. The indictment charges the defendants with several of the shootings, including three attempted murders on residential streets in broad daylight. To fund their activities, the defendants engaged in robberies and widespread narcotics trafficking, including dealing crack cocaine, heroin and marijuana, throughout Nassau County.
In a related investigation, between 2014 and 2017, the Office successfully prosecuted 20 members of the Rollin’ 60s Crips, the chief rival of the Bloods in Roosevelt, for offenses including racketeering, murder, robbery, witness tampering, drug trafficking and related firearm offenses. The leader and founder of the Rollin’ 60s Crips, Raphael Osborne, received three life sentences plus 135 years following his conviction after a five-week trial in 2016.
“As alleged, the actions of these gang members jeopardized the safety of the Roosevelt community, putting dozens of lives at risk. We will continue to work diligently to dismantle criminal organizations like the Bloods to provide safe communities for the people on Long Island,” stated Acting United States Attorney Rohde. Ms. Rohde thanked the FBI Long Island Gang Task Force, NCPD Gang Investigations Squad and Nassau County District Attorney’s Office Special Operations Bureau for their assistance in the ongoing investigation. The FBI Long Island Gang Task Force also includes the Nassau County Sheriff’s Department, Suffolk County Police Department, Suffolk County Sheriff’s Department, Rockville Center Police Department, Suffolk County Probation Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Hempstead Police Department, New York State Police and Homeland Security Investigations.
“Gangs and their turf wars do more than just impact the gang members, their actions degrade and demoralize the communities where they operate,” stated FBI Assistant Director-in-Charge Sweeney. “No one deserves to live in a world where they fear the drug dealers on the corner, and anticipate the next barrage of bullets flying by their windows at night. The FBI Long Island Gang Task Force and our law enforcement partners have had a long standing commitment to eradicating these dangerous criminals and their associates since 2003, and we won’t stop even when they attempt to rebuild after we take out their leadership.”
“For nearly a decade these alleged Bloods members terrorized the residents of Roosevelt as they fought a violent gang war against their rivals,” DA Singas said. “With this indictment, and continued focus and cooperation in law enforcement, we will break up these gangs and make our streets safer. I thank the U.S Attorney's Office, the FBI and Nassau County Police Department for their hard work in this investigation.”
“The recent indictments of these Blood gang members sends a direct message that there will be zero tolerance of their activities that place our residents at risk and create their criminal enterprise,” stated NCPD Acting Commissioner Ryder. “I would like to congratulate all of the agencies and personnel involved with this multi-jurisdictional investigation for a job well done."
The defendants are scheduled to be arraigned this afternoon before United States Magistrate Judge Gary R. Brown at the federal courthouse in Central Islip. The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Nicole Boeckmann and Michael Maffei are in charge of the prosecution.
The Defendants:
ALLAZEEM CARTER
Age: 29
Hempstead, New York
JERMAINE GREEN
Age: 26
Roosevelt, New York
JOHNNY GREEN
Age: 23
Roosevelt, New York
TYSHAWN JACKSON
Age: 25
Roosevelt, New York
DONALDSON JOSEPH
Age: 27
Hempstead, New York
TYSAAN ROBINSON
Age: 26
Freeport, New York
DAQUAN WAGNER
Age: 29
Roosevelt, New York
E.D.N.Y. Docket No. 16-106 (S-1) (JFB)
Bay Area Man Sentenced to Prison for Participating in Mortgage Fraud Scheme Involving Sacramento HouseRead the Press Release
FRESNO, Calif. — Mahendra Prasad, 55, of Fremont, was sentenced today by U.S. District Judge Lawrence J. O’Neill to 15 months in prison and ordered to pay $328,000 in restitution for his role in a mortgage fraud scheme, U.S. Attorney Phillip A. Talbert announced.
On May 22, 2017, Prasad pleaded guilty to one count of mail fraud affecting a financial institution. According to court documents, in 2006, Prasad caused loan application packages that contained false statements to be submitted to a mortgage lender in order to buy a property in Sacramento. The false statements included statements concerning Prasad’s employer, income, and purported intention to occupy the property as his primary residence. Following his fraudulent purchase, Prasad, with the assistance of others, rented the property as Section 8 housing and collected rents. Prasad did not reside in or occupy the property as his primary residence.
In 2013, Prasad applied to a bank to sell the property to another person at a loss to the bank. He falsely claimed to the bank that the “short” sale was an “arm’s length” transaction, and that neither he nor the buyer were related by commercial enterprise. Prasad’s conduct caused a loss to a financial institution of approximately $328,000.
This case was the product of an investigation by the Federal Bureau of Investigation, the Stanislaus County District Attorney’s Office, the Federal Housing Finance Agency Office of Inspector General, and the Federal Deposit Insurance Corporation Office of Inspector General, with assistance from the Office of the Special Inspector General for the Troubled Asset Relief Program. Assistant U.S. Attorneys Henry Z. Carbajal III and Christopher D. Baker are prosecuting the case.
Co-defendants Jyoteshna Karan, Praveen Singh, Sunita Singh and Nani Isaac are scheduled for a jury trial in U.S. District Court in Fresno, on Monday, December 11, 2017. The charges against the four remaining defendants are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Bakersfield Man Sentenced for Structuring over $4.2 M in Proceeds of Synthetic Drug SalesRead the Press Release
FRESNO, Calif. — Ramsey Jeries Farraj, 41, of Bakersfield, was sentenced today to 18 months in prison for conspiring with his former business partner, Majed Bashir “Mike” Akroush, 49, also of Bakersfield, to structure $4,204,965 obtained from the sale of smokeable synthetic drugs, U.S. Attorney Phillip A. Talbert announced.
Smokable synthetic cannabinoids are commonly known as K-2 or spice. They are sometimes marketed as incense or potpourri but contain powerful hallucinogenic chemicals. Consumption of smokable synthetic cannabinoids can lead to illness or even death.
Farraj’s sentence follows his guilty plea in May. According to court documents, Farraj and Akroush obtained synthetic cannabinoids from Haitham Eid Habash, aka Eddie Habash, 54, of Hawthorne, and Zaid Elodat, 30, of Lawndale, and sold the drugs over the internet through their online businesses Blue Whale and World of Incense. They deposited over $4.2 million in proceeds in amounts under $10,000 into various bank accounts they maintained in order to avoid filing a currency transaction report, or CTR, that is required for amounts over $10,000.
In sentencing Farraj, U.S. District Judge Dale A. Drozd ordered the forfeiture of over $5 million seized from various bank accounts, seven properties, a 1962 Chevrolet Impala, one Rolex watch, and the domain names and websites utilized to conduct the illicit drug sales.
The case is part of a nationwide synthetic drug takedown in connection with Project Synergy Phase III that targeted the synthetic designer drug industry, including wholesalers, money launderers and other criminal facilitators. In connection with this case, federal law enforcement officers arrested and charged Farraj, along with Akroush, Habash, and Elodat, and executed 12 search warrants in Bakersfield and the Los Angeles area. Over 1,000 pounds of synthetic drugs, nearly a half a million dollars in cash and four firearms were seized.
Elodat previously pleaded guilty and is scheduled for sentencing later this year. The charges against Akroush and Habash are pending; they are scheduled to appear in federal court in Fresno for a status conference on September 25. If convicted, they face a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. As to Akroush and Habash, the charges are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the U.S. Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, and the California Highway Patrol, with assistance from the Federal Bureau of Investigation, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); the U.S. Postal Inspection Service, the California Department of Motor Vehicles, the Kern County Probation, the Kern County Sheriff’s Office, the Bakersfield Police Department, and the Los Angeles County Sheriff’s Office. Assistant U.S. Attorneys Karen A. Escobar, Grant B. Rabenn, and Jeffrey A. Spivak are prosecuting the case.
This case was also designated an Organized Crime Drug Enforcement Task Force (OCDETF) case. The OCDETF program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Ashland City Woman Facing Federal Charges for Credit Card FraudRead the Press Release
Samantha Jean Thompson, 39, of Ashland City, Tenn. was arrested by FBI agents this morning, after being indicted by a federal grand jury last week on charges of bank fraud, wire fraud and identity theft, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee.
According to the indictment, between May 2014 and October 2016, Thompson was employed as the office manager and bookkeeper of Builder's Supply Source, Inc., a cabinetry supply company in Nashville, Tenn. The indictment alleges that Thompson used her position to make fraudulent charges to American Express credit cards issued to company employees, utilizing the mobile payment application Square, Inc. Thompson renamed her account with Square to closely resemble the name of a legitimate vendor and then used Square to process cash transfers to her personal bank account. During this execution of this scheme, Thompson made fraudulent transfers 289 times that totaled more than $500,000.
If convicted, Thompson faces up to 30 years in prison and a $1,000,000 fine.
This case was investigated by the Federal Bureau of Investigation and the Metropolitan Nashville Police Department. Assistant U.S. Attorney Siji Moore is prosecuting the case.
An indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
Arizona Man Pleads Guilty to Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Shane Grafman, 33, of Phoenix, AZ, who pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine and 100 kilograms or more of marijuana, and money laundering conspiracy, was sentenced to 108 months by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that in April 2009, Shane Grafman and co-defendant Jordan Ali began assisting one another in their drug distribution businesses. The defendants obtained the narcotics in the State of Arizona, and then utilized several methods to send the marijuana and cocaine to the Buffalo area, including cars, trucks, shipping crates, and United States Postal Service parcels. Grafman also utilized private jets to travel from Arizona to Buffalo to pick-up his drug proceeds.
During the investigation, law enforcement officers seized approximately $1,000,000 in United States currency, including $671,385 from a hidden compartment within a Honda Ridgeline driven by Grafman.
A total of six defendants were arrested and convicted in this case.
Today’s sentencing is the culmination of investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge James D. Robnett; United States Postal Service Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam Cohen; Buffalo Police Department, under the direction of Commissioner Daniel Derenda; Erie County Sheriff's Department, under the direction of Sheriff Tim Howard; Niagara Frontier Transit Authority, under the direction of Chief George Gast; Tempe, Arizona Police Department; Apache County, Arizona Sheriff's Department; and the Oklahoma State Police.