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2 October 2017
Maryland Pimp Sentenced to 20 Years in Prison for Illegal Firearms Possession and Enticing and Coercing Women to Travel to Engage in ProstitutionRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States District Judge George L. Russell III sentenced Jason David Young, a/k/a Bird, J Bird, and Chris, age 34, of New Carrollton, Maryland, to 20 years in prison, followed by five years of supervised release for illegal possession of firearms and for enticing and coercing women to travel across state lines to engage in prostitution.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Gary Gardner of the Howard County Police Department; Chief Henry P. Stawinksi III of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Howard County State’s Attorney Dario Broccolino; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to his plea agreement, from September 2013 through October 2015, Young was a pimp and used physical, mental and emotional abuse and threats in order to cause women to engage in commercial sex acts for his financial benefit. Young admitted that he transported the women across state lines to engage in prostitution. In January 2015, Young drove two women to Tennessee to engage in commercial sex acts. Young rented hotel rooms and posted several online advertisements to recruit customers. Both women were arrested for prostitution following an undercover operation executed by the Knox County Sheriff’s Office.
On at least two occasions in 2014, Young was stopped by police and a gun was found in the car. On each occasion, the woman traveling with Young claimed that the gun was hers. One of the women later admitted to police that Young had given her the firearm, and that he routinely possessed firearms. She stated that Young had the women take responsibility for the firearms if discovered by police. One of the guns, a 9mm handgun recovered on December 15, 2014, was stolen.
On February 12, 2015, the Prince George’s County Police Department arrested Young for a parole violation. Young was outside of a local business that was owned by a friend. The owner consented to a search of the business and officers recovered a bag belonging to Young. The owner also told police that he had seen Young with firearms, and when the owner saw police outside the shop, he hid the firearms above the ceiling tiles so Young would not get in trouble. Investigators recovered the two .45 caliber handguns from the ceiling. Both handguns had been stolen.
Investigation showed that all three of the stolen handguns had been taken from a prostitution customer, a gun collector who kept a gun safe on the same floor of his house as the master bedroom. Young had gone to the house once with two of the women he trafficked, and the gun safe was not fully locked and closed. Women who worked for Young twice stole firearms from the customer and provided them to Young. A total of five firearms were stolen from the customer’s home.
Young took photos of the five firearms using his cell phone and sent them to other individuals. The photos of the guns were taken inside the apartment Young provided to the women. He controlled all of the women’s money and movements and threatened to beat them if they did not comply with his instructions. Young’s cell phone contained images of the injuries resulting from a severe beating he inflicted on one of the women. In addition, Young provided the women with narcotics and withheld narcotics from addicted women in order to exert control over them.
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
Acting United States Attorney Stephen M. Schenning commended HSI-Baltimore, Howard County, Prince George’s County, and Montgomery County Police Departments, and the Howard County and Prince George’s County State’s Attorney’s Offices for their work in the investigation. Mr. Schenning recognized the U.S. Marshals Service, Knox County (TN) Sheriff’s Office, and Prince William County (VA) Police Department for their assistance, and thanked Assistant U.S. Attorneys Zachary A. Myers and Patricia C. McLane, who prosecuted the case.
Madison Man Sentenced on Possession of Child PornographyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Madison, South Dakota, man convicted of Possession of Child Pornography was sentenced on September 25, 2017, by U.S. District Judge Karen E. Schreier.
Scott Roger Kraft, age 60, was sentenced to 140 months in custody, followed by 8 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Kraft was indicted for Possession of Child Pornography and Felon in Possession of Firearm and Ammunition by a federal grand jury on July 12, 2016. He pled guilty to Possession of Child Pornography on May 9, 2017.
On March 30, 2016, law enforcement searched Kraft’s home for child pornography. Kraft had been on parole supervision for a 2015 felony conviction for sexual exploitation of a minor in Lake County. Police found compact discs containing photos and videos of child pornography, along with a loaded handgun, in Kraft’s Madison home.
This case was investigated by the South Dakota Division of Criminal Investigation, the Bureau of Alcohol, Tobacco & Firearms, and the Department of Homeland Security. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Kraft was immediately turned over to the custody of the U.S. Marshals Service.
Louisville Felon Sentenced to 15 Years in Prison for Being an Armed Career Criminal, Possession of Controlled Substances and Possession of A FirearmRead the Press Release
Federal Prosecution resulted from “Project Recoil”
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman today announced the recent sentencing of a Louisville felon, as an Armed Career Criminal, in United States District Court, by District Judge Greg N. Stivers, to 180 months in prison, for possession of a firearm by a convicted felon and possession of controlled substance.
Tommy M. Slaughter, 26, was convicted by a federal jury in Louisville, on June 28, 2017, of felon in possession of a firearm, and two lesser counts of possession of controlled substances including heroin and cocaine.
According to information presented during the three-day trail, while patrolling Portland in West Louisville, Louisville Metro Police officers witnessed a hand to hand drug transaction. At the time police recovered drugs, more than $100, and a loaded handgun in defendant Slaughter’s pants pocket.
Slaughter has a lengthy arrest record in Jefferson County and the federal prosecution stemmed from “Project Recoil,” the on-going partnership of multiple Jefferson County, Kentucky law enforcement agencies to maximize penalties for the most violent offenders and to reduce violent crime in our community.
Slaughter’s juvenile convictions begin at age 9 and included violent criminal acts. Adult convictions included possession of loaded concealed firearms, possession of controlled substances, assaults in which he attempted to strangle one victim and stomped on the face of a second victim. Further, Slaughter has prior convictions in Jefferson County Circuit Court for Burglary 2d: that being a single count of Burglary 2d on December 24, 2009 and eight counts of Burglary 2d on May 17, 2010.
This case was prosecuted by Assistant United States Attorney Randy Ream and was investigated by the Louisville Metro Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Louisville Felon Sentenced to 10 Years in Prison for Possession of A Firearm, Ammunition, and MethamphetamineRead the Press Release
Federal Prosecution resulted from “Project Recoil”
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman today announced the sentencing of a Louisville felon, in United States District Court, by Chief Judge Joseph H. McKinley Jr., to 120 months in prison, for possession of a firearm and ammunition by a convicted felon and possession of methamphetamine. There is no parole in the federal system.
Robert J. Vance, 29, was charged in a superseding indictment on May 2, 2017, and pleaded guilty to all three counts on June 23, 2017. The federal prosecution stemmed from “Project Recoil,” the on-going partnership of multiple Jefferson County, Kentucky law enforcement agencies to maximize penalties for the most violent offenders and to reduce violent crime in our community.
According to information presented in court, Louisville Metro Police (LMPD) officers were patrolling “hot spots” in high crime areas of Portland, located in west Louisville. Near midnight on December 17, 2017, the officers pulled into the intersection of 29th and Alford Streets and observed a gold van at one corner of the intersection with the passenger side door open, and defendant Vance was standing at the driver’s side door. When officers initiated their lights, Vance ran and tripped in an alley. A bag containing over 50 grams of pure meth was found several feet from where Vance landed, along with a liquor bag containing a Glock, Model 21, 45 caliber pistol. The officers located a shoulder holster in the Toyota SUV which contained an extra clip of ammunition for a .45 caliber Glock.
Vance was previously convicted of a Class D Felony on February 11, 2013, in Bullitt County Circuit Court, Shepherdsville, KY, in Case Number 12-CR-0073, of Assault Under Extreme Emotional Disturbance.
This case was prosecuted by Assistant United States Attorney Randy Ream and was investigated by the Louisville Metro Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Meth, Firearm, U.S. Currency found with Robert VanceLocal Man Sentenced to 105 Months in Federal Prison for Bank RobberyRead the Press Release
DALLAS — Tommy Nelson, Jr., 52, was sentenced today by U.S. District Judge David C. Godbey to 105 months in federal prison for the robbery of Shinhan Bank located in Dallas, announced U.S. Attorney John Parker of the Northern District of Texas.
Nelson pleaded guilty in April 2017 to one count of Bank Robbery. He has been in custody since his arrest in January 2017.
According to documents filed in the case, on January 17, 2017, Nelson grabbed a cash box from a team of bank employees while they restocked the drive thru ATM at Shinhan Bank. An armed security guard who was also present attempted to stop Nelson and the two began struggling. During the struggle Nelson attempted to take the security guard’s handgun. While fighting over the handgun the weapon fired one round striking Nelson in the finger. Once the officer was able to get control of his handgun he held Nelson at gunpoint until officers arrived.
The Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Mark Penley was in charge of the prosecution.
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Lawrence Man Sentenced for Drug and Firearm OffensesRead the Press Release
BOSTON – A Lawrence man was sentenced today in federal court in Boston for drug and firearm offenses.
Melvin Difo, 31, was sentenced by U.S. District Court Judge Douglas P. Woodlock to five years in prison and five years of supervised release. In June 2017, Difo pleaded guilty to one count of possession with intent to distribute cocaine, heroin, and oxycodone; one count of conspiracy to distribute and possess with intent to distribute oxycodone; and one count of possession of a firearm by a convicted felon.
In the fall of 2015, after federal investigators learned that Difo was receiving oxycodone for re-sale, they arranged to have sources make numerous controlled purchases of narcotics from Difo. In August 2016, two federal search warrants were executed, one at Difo’s home, where a firearm was seized, and one at Difo’s business, where approximately 40 grams of heroin, 100 grams of cocaine and 50 oxycodone pills were seized.
Acting United States Attorney William D. Weinreb and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. The Massachusetts State Police and Lawrence Police Department provided valuable assistance with the investigation. Assistant U.S. Attorney Eric Rosen of Weinreb’s Criminal Division prosecuted the case.
Lawrence Man Sentenced for Trafficking Drugs, GunsRead the Press Release
KANSAS CITY, KAN. – A Lawrence man was sentenced Monday to 15 years for trafficking drugs and guns, U.S. Attorney Tom Beall said.
Petsamai Phommaseng, 36, Lawrence, Kan., pleaded guilty to one count of conspiracy to distribute methamphetamine. In his plea, he admitted he worked with co-defendant Damon Douglas Griffin and others to distribute methamphetamine in Douglas, Franklin and Anderson counties. Griffin, who was known by the street name Guido, provided methamphetamine to Phommaseng and other street dealers.
Phommaseng obtained methamphetamine from Griffin on credit and paid Griffin back after he sold the drugs. Phommaseng paid for the drugs in cash or gave Griffin firearms in payment.
Griffin was sentenced to 105 months in federal prison.
Beall commended the Kansas Bureau of Investigation, the Franklin County Drug Enforcement Unit and Assistant U.S. Attorney Sheri Catania for their work on the case.
Johnstown Bank Manager Sentenced to Prison for Stealing from Customer AccountsRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been sentenced in federal court to 20 months in prison, three years’ supervised release and ordered to pay restitution to First National Bank in the amount of $270,434.70, on her conviction of misapplication of funds by a bank employee, Acting United States Attorney Soo C. Song announced today.
United States District Judge Kim R. Gibson imposed the sentence on Anna Wilson, 35, of Johnstown, Pa.
According to information presented to the court, from Nov. 15, 2015, to Aug. 15, 2016, Wilson, while employed as a branch manager at First National Bank in Johnstown, Pa, removed approximately $270,434.70 from customers’ accounts and thereafter converted those funds to her personal use.
Assistant U.S. Attorney John J. Valkovci, Jr. prosecuted this case on behalf of the government.
Ms. Song commended the United States Postal Inspection Service and the Social Security Administration, Office of Inspector General, for the investigation that led to the successful prosecution of Wilson.
Haitian National Sentenced to 4 Years in Prison for Role in Eastern Connecticut Insurance Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MACKENZY NOZE, 33, a citizen of Haiti last residing in Norwich, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 48 months of imprisonment for staging car accidents for the purpose of defrauding automobile insurance companies.
On June 15, 2017, a jury found NOZE guilty of one count of conspiracy to commit mail and wire fraud, five counts of wire fraud and three counts of mail fraud.
According to the evidence presented during the trial, between March 2011 and February 2014, NOZE and others conspired to stage numerous car crashes in eastern Connecticut for the purpose of defrauding automobile insurance companies and enriching themselves. A high percentage of these planned crashes were single-vehicle accidents on remote roads where there were no witnesses other than the occupants of the crashed vehicle. After each staged accident, the defendants filed fraudulent property damage and bodily injury claims with various automobile insurance companies. They then collected payouts on the fraudulent claims from the victim insurance companies. These payouts typically ranged from approximately $10,000 to $30,000 per accident.
The evidence at trial indicated that NOZE participated in as many as 50 staged crashes, 11 of which were described in detail during the trial.
Judge Meyer ordered NOZE to pay restitution in the amount of $207,083.36.
NOZE was arrested on May 23, 2016, and is detained. He is a lawful permanent resident of the U.S. and faces immigration proceedings after he serves his sentence.
Six other individuals have been charged and convicted as a result of this investigation.
This matter has been investigated by the Federal Bureau of Investigation, the Norwich Police Department and the National Insurance Crime Bureau. The case is being prosecuted by Assistant U.S. Attorneys Avi Perry and Michael J. Gustafson.
Geary County Man Sentenced in Kidnapping, Death of Junction City WomanRead the Press Release
TOPEKA, KAN. – A Geary County man was sentenced Monday to 16 years in federal prison for taking part in the kidnapping of a Junction City woman who was killed during the abduction, Acting U.S. Attorney Tom Beall said.
Drexel A. Woody, 27, who lived on Fort Riley at the time of the crime, pleaded guilty to one count of kidnapping resulting in death. The body of Amanda Clemons, 24, of Junction City, was found in February 2014 in Geary County, Kan.
In Woody’s plea, he admitted that on Feb. 7, 2014, he and some of the co-defendants met the victim, who was a prostitute, at a hotel in Junction City and kidnapped her. The defendants beat the victim in retribution for comments she had made on social media. During the beating, the defendants demanded the victim pay $300. They took the victim to another hotel room in an unsuccessful attempt to get the money, after which they transported her to the Woody residence on Fort Riley.
While at the Woody residence, the defendants allowed the victim to call her young son and her mother. The victim’s mother realized the victim was in danger and called Junction City Police. When police called the victim’s number to check on her, and the defendants listened to the call on speakerphone. Fearing arrest, the defendant along with Anderson and Middleton took victim to a bridge in a remote part of Geary County, where Anderson and Middleton resumed the beating and attacked her with a knife. The victim broke free and jumped off the bridge, falling 15 feet and breaking her ankle. Anderson and Middleton found the victim in the snow and resumed the assault during which they cut her throat and killed her.
Co-defendants include:
Larry L. Anderson of Manhattan, Kan., who was sentenced to 336 months.
Marryssa M. Middleton of Fort Riley, Kan., who was sentenced to 336 months.
Shantrell D. Woody of Fort Riley, Kan., who is set for sentencing Nov. 20.
Christopher Pugh of Junction City, Kan., who is set for sentencing Oct. 10.
Beall commended the Junction City Police Department, the Grandview Plaza Police Department, the Geary County Sheriff’s Office, the Riley County Police Department, the Fort Riley Criminal Investigation Division, the FBI, Assistant U.S. Attorney Tony Mattivi, Assistant U.S. Attorney Jared Maag and Geary County Attorney Steven Opat for their work on the case.
Fort Defiance Family Sentenced to Prison for Health Care FraudRead the Press Release
PHOENIX – Last week, U.S. District Judge Steven Logan sentenced Vestah Tikium to 33 months in federal prison, followed by three years of supervised release. Tikium’s son, Terdell Dawes, was sentenced to 24 months in federal prison, while her other son, Terrell Dawes, was sentenced to 18 months in federal prison. Tikium and her sons also were ordered to pay more than $3 million in restitution. All three had previously pleaded guilty to conspiracy to commit health care fraud. All defendants are members of the Navajo Nation.
Tikium and her sons falsely billed Arizona’s Health Care Cost Containment System (AHCCCS) for tens of thousands of medical transports that never occurred, generating more than $3 million in fraudulent payments from AHCCCS. AHCCCS is Arizona’s Medicaid agency that offers health care programs to low-income Arizona residents. Tikium and her sons owned and operated Diné Transport, which purported to provide non-emergency medical transportation for AHCCCS recipients on the Navajo reservation. Approximately 95% of the claims submitted by Diné Transport between March 2013 and July 2013 were false.
“Health care fraud is a prevalent problem that causes higher health care costs and increased taxes for everyone,” stated Acting U.S. Attorney Elizabeth A. Strange. “Our office will continue to work with our law enforcement partners to target those who perpetuate health care fraud, and we will prosecute them to the full extent of the law.”
“The FBI views health care fraud as a serious crime problem,” said FBI Special Agent in Charge Michael DeLeon. “It degrades the integrity of our health care system and legitimate patient care. The sentences handed down on these individuals sends a clear message to those persons who are defrauding our health insurance programs. The FBI remains committed to investigating health care fraud and bringing these individuals to justice. The FBI will continue to work aggressively with our law enforcement partners to investigate those who violate the public trust by cheating the medical insurance system.”
In the last year, five other individuals have been convicted and sentenced for perpetrating similar frauds to falsely bill AHCCCS for non-emergency medical transports that purportedly occurred on the Navajo Reservation:
- In November 2016, Sylvia Begay was sentenced to 28 months in federal prison and ordered to pay more than $2.1 million in restitution (CR-15-08252);
- Also in November 2016, Virgil Begay was sentenced to 21 months in federal prison and ordered to pay more than $1.3 million in restitution (CR-15-08252);
- In March 2017, Natasha Begaye was sentenced to probation and ordered to pay approximately $380,000 in restitution (CR-15-08250);
- Also in March 2017, Cortasha Upshaw was sentenced to probation and ordered to pay approximately $245,000 in restitution (CR-15-08251); and
- In April 2017, Elseddig Musa was sentenced to 57 months in federal prison and ordered to pay more than $1.2 million in restitution (CR-15-01265).
The investigation in this case was conducted by the Federal Bureau of Investigation and AHCCCS Office of Inspector General. The Navajo Nation Police Department also assisted in the investigation. The prosecution was handled by Bridget Minder and Peter Sexton, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-17-08096
RELEASE NUMBER: 2017-095_Tikium
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Former Minich Electric Office Manager Admits Defrauding EmployerRead the Press Release
ERIE, Pa. - A resident of Bradford, Pennsylvania, pleaded guilty in federal court to a charge of mail fraud, Acting United States Attorney Soo C. Song announced today.
Tyler Little, 30, pleaded guilty to one count before United States District Judge Davie S. Cercone.
In connection with the guilty plea, the court was advised that Little was an office manager at Minich Electric in Bradford. From November 2012 to September 2015, he wrote numerous checks to himself from the Minich Electric business account, failed to deposit numerous cash payments made by customers and used the funds for his own personal use and used the business credit card without the owner’s knowledge or permission to purchase numerous items for himself resulting in a loss of approximately $77,516.81 to Minich Electric.
Judge Cercone scheduled sentencing for February 26, 2018 at 1:30 p.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Little on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Little.
Former Easton Resident Pleads Guilty to Possessing Meth and XanaxRead the Press Release
The United States Attorney for the District of Connecticut announced that CAVAN DEVINE, 25, formerly of Easton, waived his right to be indicted and pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to one count of possession of 50 grams or more of methamphetamine and a quantity of Xanax.
According to court documents and statements made in court, on December 4, 2016, Easton Police seized a bag belonging to DEVINE that contained approximately 744 grams of methamphetamine, 577 and one-half pills labeled “Xanax,” and drug paraphernalia. DEVINE was arrested the next day. A subsequent search of a hotel room rented by DEVINE revealed an additional quantity of methamphetamine, as well as items used to process, package and mail drugs. Investigators also seized a laptop computer.
The investigation established that DEVINE had obtained the methamphetamine and Xanax over the internet, which he was also using to distribute the drugs.
Judge Arterton scheduled sentencing for December 22, 2017, at which time DEVINE faces a maximum term of imprisonment of 40 years.
DEVINE is released on a $200,000 bond and residing at an inpatient drug treatment facility while awaiting sentencing.
This matter is being investigated by the Drug Enforcement Administration, U.S. Postal Inspection Service, Connecticut State Police and Easton Police Department. The case is being prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
Former Cross Lanes postal worker pleads guilty to stealing pain pills from the mailRead the Press Release
CHARLESTON, W.Va. – A former postal worker who stole oxycodone and hydrocodone pills from packages pleaded guilty today, announced United States Attorney Carol Casto. Brittany Harrison, 31, of Cross Lanes, entered her guilty plea to theft of mail by a postal employee.
Harrison was a federal postal support employee who worked in the Charleston Main Post Office as a mail processing clerk. Through working at that post office, Harrison learned to identify packages that contained oxycodone and hydrocodone pills. After identifying these packages, Harrison opened them and stole the pain pills inside. On April 8, 2016, she opened a package from the Department of Veterans Affairs Medical Center in Huntington that was to be delivered to a Charleston resident and stole oxycodone pills from the package. Harrison further admitted to stealing pills contained in at least six other packages, including 168 oxycodone pills on April 12, 2016, and another 168 oxycodone pills on April 13, 2016. On April 13, 2016, Harrison gave a statement to federal officers in which she admitted stealing the pain pills. Harrison is no longer an employee with the United States Postal Service.
Harrison faces up to five years in federal prison when she is sentenced on January 4, 2018.
The United States Postal Service, Office of Inspector General, and the United States Postal Inspection Service conducted the investigation. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Federal Jury Convicts Navajo Man from Gallup on First-Degree Murder and Witness Tampering ChargesRead the Press Release
ALBUQUERQUE – A federal jury sitting in Santa Fe, N.M., returned a verdict on Saturday afternoon (Sept. 30, 2017) finding Brian Tony guilty on first-degree murder and witness tampering charges after a five-day trial, announced Acting U.S. Attorney James D. Tierney, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, and Director Jesse Delmar of the Navajo Nation Division of Public Safety.
Tony, 46, an enrolled member of the Navajo Nation who resides in Gallup, N.M., was arrested on June 3, 2016, on a criminal complaint charging him with killing a man by stabbing him in the head and neck and hitting him with a hammer. According to the criminal complaint, Tony committed the murder on the Navajo Indian Reservation in McKinley County, N.M., on May 9, 2016. At the time, Tony was on supervised release for a prior conviction on a federal assault charge.
In June 2016, a federal grand jury indicted Tony on a second-degree murder charge. The indictment was superseded on Aug. 8, 2017. The superseding indictment charged Tony with first-degree murder and two counts of witness tampering. The superseding indictment charged Tony with murdering the victim deliberately and with premeditation by beating him with a hammer and rock and stabbing him with a knife on May 9, 2016, in McKinley County. It also charged Tony with engaging in witness tampering between May 2016 and Aug. 2017, in Santa Fe County, N.M.
Trial on the superseding indictment commenced on Sept. 25, 2017, and concluded the afternoon of Sept. 30, 2017 when the jury returned a guilty verdict on all three counts in the superseding indictment. The evidence at trial established that on the evening of May 8, 2016, Tony, who was accompanied by his brother and his girlfriend, drove to a residence in Gallup, and picked up the victim and the victim’s friend. While at the residence, Tony retrieved a hammer and placed it in his vehicle.
The victim’s friend testified that Tony drove the victim and the three others to a location called “Superman Canyon,” where Tony directed the victim to get out of the car and follow him to an area beyond the sight of those in the vehicle. Thereafter, the victim’s friend attempted to get out of the vehicle after hearing the victim yell, but Tony’s brother prevented him from doing so by threatening him with violence. The victim’s friend testified that Tony later returned to the vehicle covered in blood, without the victim, and with the victim’s knife sticking through his forearm.
While Tony and the victim were off on their own and out of the sight of the other three, the victim called “911,” and requested assistance. The jury heard the victim’s nearly ten minute call to “911,” during which the victim said that he was on foot in a ditch and was bleeding as the result of having been hit in the head with a hammer. The victim identified Tony as the person who hit him and described the vehicle in which they had traveled. The call ended with the victim saying, “Hurry, here he comes now! Hurry!” The following day, law enforcement authorities found the victim’s body in a ravine located by Rock Flats Road near Churchrock, N.M. A hammer was located in the ravine near the victim’s body and a large rock with bloodstains was next to the victim’s body. The victim was wearing an empty knife sheath on his belt. An autopsy revealed that the victim had been stabbed repeatedly in the head and neck and had blunt-force trauma wounds on his head.
The evidence at trial established that, following Tony’s arrest in June 2016, he was detained at the Santa Fe County Detention Center from which he placed more than 1,000 calls to friends and relatives. During these calls, which were recorded, Tony implored his friends and relatives to convince the victim’s friend to leave town and to prevent him from testifying. The jury heard a number of these calls and heard Tony as he attempted to intimidate, threaten and persuade his girlfriend from cooperating with law enforcement authorities.
Tony testified in his own defense and claimed that he acted in self-defense when he killed the victim.
The jury deliberated approximately 10 hours before returning the guilty verdict.
Tony has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Tony faces a statutory mandatory sentence of life imprisonment.
This case was investigated by the Albuquerque and Gallup offices of the FBI and the Navajo Nation Division of Public Safety.
Assistant U.S. Attorney’s Joseph M. Spindle and Nicholas J. Marshall are prosecuting the case under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Federal Forfeiture of St. Albans Crack House Sought Pursuant to 2007 Plea AgreementRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that it has filed a Complaint seeking civil forfeiture of a residence in St. Albans related to drug trafficking activity that occurred in the house from 2004 through 2006. The underlying drug trafficking case involved the 2006-07 prosecution of Robin Keller, formerly of 25 Lower Gilman Street in St. Albans, Vermont. Keller was arrested in March 2006 and eventually pled guilty to conspiracy to distribute crack cocaine. As part of the plea agreement, reached in March 2007, Keller agreed to forfeiture of the 25 Lower Gilman Street property. The government agreed to postpone the forfeiture until Keller’s two minor children who resided in the home became adults. Both children have now reached the age of majority.
According to court records, Keller used a network of couriers to distribute over ten kilograms of crack cocaine in the St. Albans area from 2004 until March 2006, when she was arrested at the Back Street Bar in St. Albans. Keller purchased cocaine powder largely from a Holyoke, Massachusetts source and then cooked the powder into crack cocaine at the home on Lower Gilman Street in St. Albans, where she lived with her two young children. A March 2006 search of Keller’s home by the Vermont Drug Task Force resulted in the seizure and eventual forfeiture of over $170,000 in cash, much of it hidden in the floor joists of the house.
In July 2007, Judge William K. Sessions III sentenced Keller to 168 months in prison (later reduced to 140 months). Judge Sessions stated at the time that "countless people suffered as a result of the drugs" that Keller distributed and that Keller used "intimidation," including tire slashing to ensure payment for her drug sales. Judge Session also stated it was the "largest crack cocaine case" he had seen in federal court at that time.
This matter was investigated by the Vermont Drug Task Force of the Vermont State Police. The case is being prosecuted by Assistant U.S. Attorney Joseph Perella.
Executive Director of Tribal Investment Firm Sentenced to Federal Prison for FraudRead the Press Release
United States Attorney Randolph J. Seiler announced that Tally Colombe, age 42, of Fort Thompson, South Dakota, was sentenced to federal prison for a term of 27 months and ordered to pay restitution in the amount of $39,997. Colombe appeared before U.S. District Judge Roberto A. Lange on September 19, 2017.
Colombe pleaded guilty to Wire Fraud and Program Fraud in June 2017.
According to plea documents filed with the Court, beginning on or about June 1, 2015, through and including October 1, 2016, in the District of South Dakota and elsewhere, Colombe, having devised a scheme and artifice to defraud by means of false and fraudulent pretenses, representations and promises, caused to be transmitted by means of electronic wire communications in interstate commerce, writings, signs, signals, pictures and sounds for the purpose of executing such scheme and artifice to defraud.
It was part of the scheme and artifice to defraud that Colombe, while serving as the Executive Director of Hunkpati Investments, used the business debit card to make personal purchases from several businesses, all without knowledge and authorization from Hunkpati Investments.
Beginning on or about June 1, 2015, through and including October 1, 2016, Colombe, as an agent of Hunkpati Investments, which was an organization and agency that received in each of the calendar years of 2015 and 2016 benefits in excess of $10,000 under a federal program involving a grant, contract, subsidy, loan, guarantee, insurance, and other form of federal assistance, did knowingly and intentionally embezzle, steal, obtain by fraud, and otherwise without authority knowingly convert to the use of persons other than the rightful owner, and intentionally misapply property worth at least $5,000 which was owned by and was under the care, custody and control of Hunkpati Investments.
Hunkpati Investments (Hunkpati), located in Fort Thompson, South Dakota, is a Native Community Development Financial Institution established to provide financial opportunities to stimulate economic development on the Crow Creek Sioux Reservation. Hunkpati services include a savings incentive program and lending for credit builder and small business loans. Hunkpati is funded by grants from the U.S. Department of Treasury, the U.S. Department of Agriculture, the U.S. Department of Health and Human Services, the Northwest Area Foundation, and several other small foundations. In 2015, Hunkpati received in excess of $30,000 in grants from federal agencies.
Hunkpati is governed by a Board of Directors (Board). Colombe served as an agent, that is, Executive Director, of Hunkpati from May of 2015, to approximately November of 2016, and reported to the Board. Prior to becoming the Executive Director, Colombe also served on the Board as a Board Member. As Executive Director, Colombe was responsible for advising the Board on the financial status of Hunkpati as well as maintaining compliance for Hunkpati’s spending pursuant to the federal grant requirements.
The unlawful purchases, and therefore the wire transfers, were made without authorization from the Board. Colombe did not disclose the purchases to the Board. Colombe and the United States agreed to an amount just under $40,000 as the restitution and loss amount.
The investigation is being conducted by the Federal Bureau of Investigation and the United States Attorney’s Office. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the United States Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the United States Attorney’s Office at (605)330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Eastern Kentucky Hospital System to Pay U.S. Government $150,000 to Settle Allegations that it Violated the Controlled Substances ActRead the Press Release
LEXINGTON, Ky. – Appalachian Regional Healthcare, Inc. (“ARH”) has agreed to pay the United States $150,000, to settle civil allegations that it unlawfully filled fraudulent prescriptions for stimulants and that it failed to make and maintain complete and accurate records of its controlled substances, in violation of the federal Controlled Substances Act.
The settlement resolves a civil lawsuit that was filed by the United States against ARH in May of 2016. In the lawsuit, the United States alleged that Harlan ARH Hospital Pharmacy knowingly filled fraudulent prescriptions for Schedule IV stimulants. Specifically, the United States alleged that ARH knew the prescriptions were fraudulent because ARH was aware that no doctor-patient relationship existed between the Harlan ARH Emergency Room physician, who was writing the prescriptions, and the ARH nurses and staff, who were filling the prescriptions at ARH pharmacies. The lawsuit further alleged that individuals in Harlan ARH’s management were made aware of the improper prescribing in 2010; yet, the Harlan ARH Hospital Pharmacy continued filling those prescriptions until 2014. The United States alleged that, as a result of these improperly filled prescriptions, ARH illegally dispensed thousands of stimulant pills to its employees and their family members.
The lawsuit further alleged that ARH failed to make and maintain complete and accurate records of its controlled substances at two other pharmacies, Hazard ARH Regional Medical Center Clinic Pharmacy and Middlesboro ARH Pharmacy, and that, because of that failure, Government auditors were prevented from being able to determine whether other controlled substances had been diverted for illegal use.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky and the Drug Enforcement Administration, Diversion Control Division jointly announced the settlement. The Diversion Control Division and the U.S. Attorney’s Office conducted the investigation of alleged violations. Assistant U.S. Attorneys Katherine Crytzer and Daniel Hancock represented the federal government in this case.
Eagle Butte Man Sentenced for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Assaulting, Resisting, Opposing, and Impeding a Federal Officer was sentenced on September 18, 2017, by U.S. District Judge Roberto A. Lange.
Douglas LaPlante, Jr., age 26, was sentenced to 12 months in custody, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
LaPlante was indicted by a federal grand jury on February 15, 2017. He pled guilty on June 28, 2017.
The conviction stems from an incident on October 28, 2016, when LaPlante’s girlfriend called the Cheyenne River Sioux Tribe (CRST) Police Department because he was intoxicated and she wanted him removed from the residence. A CRST Officer responded to the call. After gaining access to the apartment, the officer confirmed that LaPlante’s girlfriend still wanted him to be removed. Once he got confirmation, the officer attempted to remove LaPlante from the residence. LaPlante doubled up his fist and hit the officer in the face/jaw. A struggle ensued between the officer and LaPlante and the two of them fell to the floor. When LaPlante got up, he repeatedly advanced on the officer, swinging at him. At one point, LaPlante got close enough that the officer grabbed him and took him to the ground. LaPlante continued to resist and attempt to get away. The officer was able to retrieve his O.C. spray from his duty belt and apply a single stream to LaPlante's face. This brought LaPlante into compliance, and he was taken into custody.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
LaPlante was immediately turned over to the custody of the U.S. Marshals Service.
Eagle Butte Man Charged with Assault with a Dangerous WeaponRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon.
Colton White Feather, age 22, was indicted on September 12, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 26, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 4, 2017, White Feather unlawfully assaulted an adult male with a knife, with intent to do bodily harm to said victim.
The charge is merely an accusation and White Feather is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
White Feather was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Dominican National Sentenced for Illegal Reentry after DeportationRead the Press Release
Boston – A Dominican national was sentenced today in federal court in Boston for illegally reentering the United States after being deported.
Jose Manuel Arroyo, a/k/a Juan Manuel Tejeda-Serrano, 39, a Dominican national residing in Boston, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to 21 months in prison and three years of supervised release. Arroyo will be subject to deportation proceedings upon completion of his sentence. In May 2016, Arroyo pleaded guilty to one count of illegal reentry after deportation.
Between 2005 and 2014, Arroyo was deported from the United States five times. Between 2010 and 2013, Arroyo was convicted of illegal reentry after deportation on three occasions in federal court in Boston, as well as once in Texas in 2006. Arroyo most recently came to the attention of federal immigration officials after being arrested for identity fraud. In March 2017, Arroyo, under the name Juan Manuel Tejeda-Serrano, pleaded guilty in federal court in Boston to one count of conspiracy to distribute and possess with intent to distribute controlled substances, including cocaine. His sentencing is scheduled for November 2017.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney David Tobin of Weinreb’s Major Crimes Unit prosecuted the case.
District Teenager Sentenced to 14 Years in Prison for Series of Armed RobberiesRead the Press Release
WASHINGTON – Jarod Ingram, 17, of Washington, D.C., has been sentenced to a 14-year prison term for a series of armed robberies he committed earlier this year against people responding to sales notices on “OfferUp, U.S. Attorney Jessie K. Liu announced today.
Ingram was charged as an adult given the serious nature of his crimes. He pled guilty in April 2017, in the Superior Court of the District of Columbia, to armed robbery and firearms offenses. He was sentenced on Sept. 29, 2017, by the Honorable Thomas J. Motley. Following his prison term, Ingram will be placed on five years of supervised release.
According to the government’s evidence, Ingram committed four robberies in less than three weeks of victims who set up meetings by using the digital application “OfferUp,” which permits users to buy or sell items. The victims were planning to purchase iPhones or a laptop computer that were listed on the site.
The first armed robbery took place at about 7:15 p.m. on Jan. 20, 2017, in the 300 block of Taylor Street NE. The victim was robbed of $300 that he had brought for an iPhone. The second crime took place at about 2:30 p.m. on Feb. 4, 2017, in the 400 block of Taylor Street NE, with another victim likewise surrendering $300 at gunpoint.
Two more armed robberies took place on the following day, Feb. 5, 2017. The first occurred at noon in the 600 block of Riggs Road NE; in this instance, Ingram robbed a woman of $500 and took an iPhone out of her pre-school son’s hands. Finally, at 3:50 p.m. on Feb. 5, 2017, Ingram robbed a man of $250 in the 4900 block of Third Street NW. An investigation by the Metropolitan Police Department (MPD) led to Ingram’s arrest the following day.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department (MPD). She also expressed appreciation for the efforts of those who handled the case from the U.S. Attorney’s Office, including Paralegal Specialist Donville Drummond, Victim/Witness Advocate James Brennan, and Assistant U.S. Attorney Gregory Rosen, who investigated and prosecuted the matter.
Director of South Korea’s Earthquake Research Center Sentenced to 14 months in Federal Prison for Money Laundering Stemming from Million Dollar Bribe SchemeRead the Press Release
LOS ANGELES – A former director of South Korea’s Earthquake Research Center at the Korea Institute of Geoscience and Mineral Resources (KIGAM) has been sentenced to 14 months in federal prison for using a Southern California bank account to launder bribes he received from two seismological companies, including one based in Pasadena.
Heon-Cheol Chi, 59, of South Korea, was sentenced today by United States District Judge John F. Walter on one count of engaging in financial transactions with criminally derived property stating that this sentence “should send a clear message that this will not be tolerated by the law." Chi was convicted in July of the money laundering charge following a four-day jury trial in United States District Court. According to the evidence presented at trial, Chi laundered the proceeds of bribes he had accepted in violation of South Korea law. In addition to the prison term, Chi was ordered to pay a $15,000 fine and to serve one year of supervised release following the completion of his term in federal custody.
According to trial testimony, from at least 2009 through 2015, Chi abused his official position at KIGAM to demand and receive over $1 million in bribes from two seismological companies in exchange for providing them with unfair business advantages in the South Korean seismological market. The trial evidence showed that Chi advocated the purchase and use of equipment from these two companies by KIGAM and other South Korean customers. He also provided these companies with market intelligence and inside information, including confidential information about their competitors and the KIGAM bidding process.
The evidence showed that Chi directed that his bribe payments be paid in cash or wired to his personal account at a Bank of America branch in Glendora. Chi transferred approximately half of the bribe payments sent to that account to an investment account he held in New York City, and spent approximately 70 percent of the remaining funds in South Korea, where he resided and worked.
In addition to his use of cash payments and the U.S. banking system, the trial evidence showed that Chi took a number of steps to conceal his bribery scheme, including instructing representatives of the companies to delete or not respond to his emails, requesting that these company representatives not inform his colleagues at KIGAM of his illegal arrangements with these companies, and by sending fictitious invoices listing a false address in New Jersey.
The evidence at trial included numerous emails in which Chi admitted that he was acting illegally and that he accepted bribes that exceeded his legitimate income from KIGAM by a substantial margin.
The case against Chi is part of an ongoing investigation by the FBI’s International Corruption Squad in Los Angeles. Assistant United States Attorney Poonam Kumar of the Major Frauds Section, and Trial Attorneys David Fuhr and Anna Kaminska of the Criminal Division’s Fraud Section, prosecuted the case.
The Criminal Division’s Office of International Affairs provided substantial assistance in this matter.
Detroit felon sentenced to federal prison for gun crimeRead the Press Release
HUNTINGTON, W.Va. – A Detroit man was sentenced today to a year and three months in federal prison for a gun charge, announced United States Attorney Carol Casto. Deandre Lamar Harris, 31, previously pleaded guilty to being a felon in possession of ammunition.
On January 18, 2014, members of the West Virginia State Police conducted a search at 345 Sixth Avenue in Huntington, a residence used by Harris. The search was conducted after law enforcement received information that a stolen firearm had been taken there to pay a drug debt to another individual. Law enforcement located Harris in the residence, along with two other individuals, one of whom was alleged to have received the firearm. At the time of the search, Harris was in possession of several rounds of .25 caliber ammunition. Harris was prohibited from possessing ammunition under federal law because of felony convictions in 2007 in Cabell County Circuit Court for malicious wounding and for attempt to commit a felony.
The West Virginia State Police conducted the investigation. Assistant United States Attorney R. Gregory McVey handled the prosecution. United States District Judge Robert C. Chambers imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
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Defendants in Massachusetts Registry of Motor Vehicles Identity Theft Scheme Agree to Plead GuiltyRead the Press Release
BOSTON – Five individuals have agreed to plead guilty in federal court in Boston for their roles in a scheme to produce false identification documents through the Massachusetts Registry of Motor Vehicles (RMV).
Evelyn Medina, 56, of Boston; Annette Gracia, 37, of Boston; Kimberly Jordan, 33, of Randolph; David Brimage, 46, of Boston; and Bivian Yohanny Brea, 41, of Boston, have agreed to plead guilty to one count of producing without lawful authority an identification document or a false identification document. At the time of their arrest, Medina, Gracia, Jordan, and Brimage were all employed as clerks at the Haymarket Registry of Motor Vehicles.
Angel Miguel Beltre Tejada, 32, a Dominican national illegally residing in Jamaica Plain, was charged in an Information with one count of aggravated identity theft. The defendants were arrested in August 2017.
In October 2015, law enforcement received an anonymous letter alleging that a corrupt RMV employee was providing Massachusetts identifications and drivers’ licenses to individuals who were using false identifications. An investigation revealed that several Haymarket RMV clerks – Medina, Gracia, Jordan, and Brimage – were working with Brea and Tejada to fraudulently provide Massachusetts licenses and identification cards to illegal aliens for cash.
The scheme involved several steps. Tejada and Brea would obtain identification documents belonging to United States citizens in Puerto Rico and sell them to clients who were seeking legitimate identities in Massachusetts. These clients included illegal aliens, individuals who were previously deported, and an individual who admitted to previously facing drug charges. Tejada would receive several hundred dollars in cash each time he sold identification documents. Brea received up to $2,700 per identity for her role in the scheme, which included helping clients obtain the documents and facilitating their acquisition of Massachusetts identity documents.
Typically, Brea and the client brought the stolen identities to the Haymarket RMV, where Medina, Gracia, Jordan, and/or Brimage would accept hundreds of dollars in cash to illegally issue authentic RMV documents, including Massachusetts licenses and ID cards. The clerks also accepted bribes to use the RMV’s system to run queries, including Social Security number audits, to confirm that the identities the clients were stealing actually belonged to verifiable individuals.
If the Court accepts the binding plea agreements for the clerks, Medina will be sentenced to 15 months in prison; Gracia to one year and one day in prison; Jordan to eight months in prison; and Brimage to eight months in prison. They all face two years of supervised release. Brea, who has entered a non-binding plea agreement, faces a sentence of no greater than 15 years in prison, three years of supervised release and a fine of $250,000. The charge of aggravated identity theft for which Tejada is charged provides for a mandatory minimum of two years in prison. Tejada will also be subject to deportation proceedings upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; William B. Gannon, Special Agent in Charge of the U.S. Department of State’s Bureau of Diplomatic Security, Boston Field Office; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. HSI’s Document and Benefit Fraud Task Force investigated the case. Assistant U.S. Attorney Eugenia M. Carris of Weinreb’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
Connecticut Man Sentenced to 6 Years for Fentanyl TraffickingRead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Raheem Childers, 32, of New London, Connecticut, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr., to six years in prison and three years of supervised release for possession with the intent to distribute fentanyl. Childers pleaded guilty on August 16, 2016.
According to court records on May 26, 2017, federal agents executed a search warrant at a hotel room in Orono, Maine where they found Childers, $2,500, and 168 grams of fentanyl. Childers admitted that he had been in the area selling the drug.
The case was investigated by the U.S. Drug Enforcement Administration, with assistance provided by the Somerset County Sheriff’s Department. This case was investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Compton Man Sentenced to 13 Years in Federal Prison for Illegally Selling FirearmsRead the Press Release
LOS ANGELES – A Compton man with a lengthy criminal history was sentenced today to 156 months in federal prison for firearms offenses, including dealing firearms without a license.
Francisco Juantonio Hilt, 39, of Compton, was sentenced by United States District Court Judge R. Gary Klausner after a jury found him and Sean Ronaldo Alexander, 37, of South Los Angeles, guilty in March of seven illegal gun transactions involving a total of 30 guns, including military-style weapons and stolen firearms. The evidence at trial showed that the men believed they were supplying guns to the Armenian Mafia and the “Mexican Cartel,” and Hilt believed the buyer was a convicted felon. Both Hilt and Alexander were found guilty of conspiracy and engaging in the business of dealing in firearms without a license. Hilt was also convicted of several counts of being a felon in possession of firearms and sale of a firearm to a convicted felon.
On July 12, 2017, Judge Klausner sentenced Alexander to 24 months’ imprisonment.
A third con-conspirator – Jamie Maurice Thomas, 38, of South Los Angeles – pleaded guilty in November 2016 to conspiracy and selling a firearm to a convicted felon. Judge Klausner sentenced Thomas to 63 months in federal prison in March.
The three defendants were charged as part of an operation last year by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) targeting the sale of guns in and around Compton and Mona Park in the Willowbrook area of Los Angeles. During the course of the year-long investigation, authorities took more than 100 illegally trafficked firearms off the streets, and 14 defendants were charged in federal and state court.
The case against Hilt, Alexander, and Thomas was investigated by ATF and was prosecuted by Assistant United States Attorney Veronica Dragalin of the General Crimes Section and Assistant United States Attorney Bryant Yang of the Organized Crime Drug Enforcement Task Force Section.
Compounding Pharmacy Owner Charged with $10 Million Health Care FraudRead the Press Release
BIRMINGHAM – Federal prosecutors today charged the owner of a Decatur compounding pharmacy with conspiracy to defraud a federal health insurance program out of more than $10 million. U.S. Attorney Jay E. Town, Food and Drug Administration, Office of Criminal Investigation, Miami Field Office, Special Agent in Charge Justin Green and Defense Criminal Investigative Service Special Agent in Charge John F. Khin announced the charge.
The U.S. Attorney’s Office charged JOHN CHRISTOPHER LEMLEY, 51, of Decatur, with the conspiracy and seeks to have him forfeit nearly $1 million as proceeds of the fraud. Most of that amount already has been seized from bank accounts held by Lemley or his businesses, according to the charges.
In conjunction with the one-count information filed in U.S. District Court, prosecutors also filed a plea agreement with Lemley. As part of that agreement, Lemley agrees to forfeit $918,234, along with a 2015 Lexus Gx-460 Premium purchased with criminal proceeds. Lemley must appear before a judge to formally enter a guilty plea.
“This defendant took part in a conspiracy that employed improper contracts, kickbacks, mislabeled drugs and prescription forgeries in order to bilk millions of dollars from the federal health insurance program meant for America’s military members and their families,” Town said. “The FDA and DCIS did a tremendous job uncovering this fraud and our office remains committed to prosecuting every single one of these types of cases.”
“American consumers rely on FDA to ensure that their drugs are safe, effective and properly labeled,” Green said. “Today’s announcement should serve as a reminder of our continued focus on those who put profits ahead of the U.S. public health by distributing misbranded products.”
“In concert with our investigative partners, DCIS aggressively pursues fraud and corruption that undermines the integrity of Department of Defense programs, especially those involving the well-being of our Warfighters who deserve the best medical care available,” Khin said. “It is unconscionable for a health care provider to make profits by taking advantage of military members and their families when they are most vulnerable.”
Lemley owned a Decatur pharmacy that operated as Southern Compounding. He also owned Apotheca Supply, which was licensed to relabel and repackage pharmaceutical drugs and was located in a suite that adjoined Southern Compounding on U.S. Highway 31 South. Lemley also had a 20 percent membership interest in Medworx Sunflower LLC, an affiliate of Medworx Compounding, a compounding pharmacy in Ridgeland, Miss., according to the information and plea agreement.
Between February 2015 to January 2016, Lemley conspired with others at Medworx Sunflower and Southern Compounding to defraud TRICARE, a U.S. Department of Defense health care program, and third-party prescription-drug program administrators Express Scripts Incorporated and OptumRx Inc., according to the court documents.
Southern Compounding submitted prescription reimbursement claims to TRICARE as part of ESI’s pharmacy network. The pharmacy submitted claims to various insurance plans as part of OptumRx’s pharmacy network.
As part of the conspiracy, Lemley conducted the fraud by various means that included improperly contracting with Medworx Compounding to refer prescriptions to Southern Compounding, paying kickbacks to independent sales representatives as incentive to refer TRICARE prescriptions, selling misbranded over-the-counter medications as prescription drugs and not reversing claims on prescriptions Lemley knew were forged, according to the court documents.
Although ESI’s regulations prohibited Southern Compounding from subcontracting any of its work, Southern entered a management agreement with Medworx in early 2015 whereby Medworx referred prescriptions to Southern Compounding, according to Lemley’s plea agreement. Southern filled the prescriptions, billed third-party administrators for them and sent almost all the payments received to Medworx. Medworx then returned a portion of those payments directly to Lemley, the plea agreement says. The amount returned totaled $918,234, representing a distribution for Lemley’s 20 percent membership interest in Medworx Sunflower.
Southern Compounding’s billings to TRICARE soared in the two months after Southern entered its agreement with Medworx, according to the plea agreement. In the 13 months prior to the agreement, TRICARE paid claims of about $215,561 to Southern. In the two months following the February 2015 agreement, TRICARE, through ESI, paid about $10.5 million in claims to Southern, according to the plea agreement. More than 90 percent of that was profit.
In accordance with Southern’s management agreement with Medworx, Lemley transferred most of the money – about $10.2 million – to Medworx. Most of the transferred money was to fund kickbacks to the independent sales representatives, according to the plea agreement.
Lemley faces a maximum sentence of 5 years in prison.
FDA-OCI and DCIS investigated the case, which Assistant U.S. Attorney Chinelo Dike-Minor is prosecuting.
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Cape Cod Woman Sentenced for Role in Drug and Money Laundering RingRead the Press Release
BOSTON – A Cape Cod woman was sentenced today in federal court in Boston in connection with a drug and money laundering ring.
Diane Johnson, 51, of Mashpee, was sentenced by U.S. District Court Judge Indira Talwani to five years of probation, with the first six months to be served in home detention. In May 2017, Johnson pleaded guilty to one count of money laundering conspiracy.
From 2010 to 2015, Johnson and her son David Landry conspired to launder drug proceeds in order to disguise the nature of the funds and continue their drug trafficking activity. From May 2014 to January 2015, two of Johnson’s co-defendants, Landry and Justin Groom, conspired to manufacture and distribute marijuana and possessed marijuana with the intent to distribute it. Landry, a convicted felon, was also found in possession of a .40 caliber semi-automatic pistol. He continued participating in the criminal offense while in jail on state charges. Groom was also charged with eight counts of money laundering in connection with using the proceeds of the illegal activities to pay the rent of the home where he grew marijuana, at Landry’s direction. A third co-defendant, Evan Lopes, aided by Landry, possessed methylone.
David Landry was sentenced to 78 months in prison; Justin Groom and Evan Lopes were sentenced to two years and three years of probation, respectively.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Barnstable Police Chief Paul MacDonald; Barnstable County Sheriff James M. Cummings; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Cape & Islands District Attorney Michael O’Keefe made the announcement. Assistant U.S. Attorney Ted Heinrich of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
Burley Man Pleads Guilty to Illegal Drug TraffickingRead the Press Release
POCATELLO – Lucio Juarez, 36, of Burley, Idaho, pleaded guilty today to conspiracy to distribute methamphetamine, United States Attorney Bart M. Davis, announced.
According to the plea agreement, Juarez sold methamphetamine to an undercover law enforcement agent four times between December 6, 2016, and April 3, 2017. A fifth sale was arranged, but Juarez was arrested prior to the sale taking place. At the time of his arrest, Juarez had in his possession approximately 11 ounces of methamphetamine. In total, Juarez sold more than 20 ounces of methamphetamine.
The charge of conspiracy to distribute methamphetamine is punishable by at least 5 and up to 40 years in prison, a maximum fine of $5,000,000, and four years up to a life term of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Idaho State Police, the Cassia County Sheriff’s Office, and the Minidoka County Sheriff’s Office.
Broward Resident Charged in Social Security Theft SchemeRead the Press Release
A Fort Lauderdale woman was charged this morning in federal court with stealing social security benefits for over a decade.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and Margaret Moore-Jackson, Special Agent in Charge, Social Security Administration (SSA), Office of Inspector General, announce that Myriam Etienne, 49, of North Fort Lauderdale, was charged with 90 counts of theft of government funds, in violation of Title 18, United States Code, Section 641. The defendant had her initial appearance today in Fort Lauderdale Federal Court.
According to information presented in court, the defendant falsely obtained Social Security Supplemental Security Income for her grandfather, who died in 2003 and her grandmother, who died in 2008, after their respective deaths, until June 2016. The Social Security Administration administers numerous programs to provide for the material needs of individuals and their families, including supplemental security income. Monthly benefits are paid to eligible individuals. Court records reflect that these benefits were paid to the defendant’s grandmother and grandfather. The funds were direct deposited into a joint bank account the defendant shared with her deceased grandparents. After her grandmother’s and grandfather’s deaths, the defendant received approximately $125,000 in payments from the SSA.
If convicted, the defendant faces a potential penalty of up to ten years in prison, three years of supervised release, a $250,000 fine and restitution as to each count.
Mr. Greenberg commended the investigative efforts of SSA’s Office of Inspector General. This case is being prosecuted by Assistant U.S. Attorney Randy Katz.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Aurora Man Indicted for Fraud and Money LaunderingRead the Press Release
DENVER -- Justin Manning, age 40, of Aurora, Colorado, was indicted by a federal grand jury on September 26, 2017 on charges of wire fraud, money laundering and filing false tax returns, Acting United States Attorney Bob Troyer and IRS Criminal Investigation Special Agent in Charge Steven Osborne announced. Today, October 2, 2017, Manning is scheduled to appear before a U.S. Magistrate Judge where he will be advised of his rights and the charges pending against him.
According to information contained in the indictment, between 2012 and 2015, Manning was employed as an asset protection manager and assistant store manager at a local Walmart. In those job positions, Manning had access to blank Money Network Checks used in Walmart’s Money Network System.
Beginning in approximately October 2013 and continuing through January 2015, Manning fraudulently filled out money network checks, and caused others to fill out the checks, in the name of third parties in order to deceive other Walmart employees into believing they were legitimate checks. Manning used his management positions to access the store’s register bags. He took cash from the store’s register bags and replaced it with fraudulent Money Network Checks totaling the same amount as the cash taken so that the register bags maintained the correct total balance and other Walmart employees would not realize cash had been taken from the bags. Manning has been charged with thirteen counts of wire fraud related to the processing of the fraudulent Money Network Checks.
Manning also knowingly engaged in financial transactions utilizing the proceeds of the wire fraud. Specifically, Manning is charged with three counts of money laundering for using cash proceeds derived from the fraud to purchase a diamond wedding ring set and a Toyota 4Runner and for transferring funds between accounts at a financial institution.
Additionally, in March 2014 and 2015, Manning filed U.S. Individual Income Tax Returns for the 2013 and 2014 tax years, respectively. When he filed these tax returns, Manning knew that he had intentionally not reported as income the cash he took as part of his fraudulent scheme.
Manning is charged with thirteen counts of wire fraud, three counts of money laundering and two counts of filing false tax returns. The indictment also includes a forfeiture count under which the government seeks to divest Manning of the proceeds obtained through the fraud. Wire fraud carries a penalty of not more than 20 years in federal prison, and a fine of up to $250,000 per count. Money laundering carries a penalty of not more than 10 years in federal prison, and a fine of up to $250,000 per count. False tax statement carries a penalty of not more than 3 years in prison and a fine of up to $100,000.
This case is being investigated by Internal Revenue Service – Criminal Investigation (IRS CI). This case is being prosecuted by Assistant U.S. Attorney Pegeen Rhyne.
The charges contained in the indictment are allegations, and the defendant is presumed innocent until proven guilty.
29 September 2017
Wisconsin Man Pleads Guilty to Enticement of a MinorRead the Press Release
A man who enticed a minor to engage in illegal sexual activity pled guilty yesterday in federal court in Cedar Rapids.
Carson Sibley, age 26, from LaCrosse, Wisconsin, was convicted of one count of enticement of a minor. At the plea hearing, Sibley admitted that, in 2017, he persuaded, induced, or enticed a minor to engage in sexual activity for which a person could be charged with a criminal offense.
Sentencing before Chief United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Sibley remains in custody of the United States Marshal pending sentencing. Sibley faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $250,000 fine, $5,100 in special assessments, and supervised release for 5 years to life following any imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Grundy County Sheriff’s Office, the Black Hawk County Sheriff’s Office, the Cedar Rapids Police Department, the LaCrosse Police Department, and Homeland Security Investigations.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 17-53.
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Webster Man Pleads Guilty to Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Daniel J. Sullivan, 39, Webster, NY, pleaded guilty to possession of child pornography before U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of 20 years in prison and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that the investigation began when an undercover law enforcement officer, using a peer-to-peer network, connected to an internet connected computer that was sharing videos containing child pornography. The investigation led to Sullivan who admitted that he had been involved with looking at images of child pornography.
A search warrant was executed at Sullivan’s residence and a laptop and a portable hard drive were seized. The laptop contained over 800 videos of suspected child pornography and the portable hard drive contained over 600 videos of suspected child pornography.
The plea was the culmination of an investigation on the part of the Federal Bureau of Investigation’s Child Exploitation Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen.
Sentencing is scheduled on January 3, 2018, at 3:30 p.m. before Judge Geraci.Washington Man Sentenced for ATM Card Skimming SchemeRead the Press Release
BOSTON - A Washington man was sentenced Wednesday, Sept. 27, 2017, in federal court in Springfield for his role in an ATM card skimming scheme.
Aaron Dario, 37, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 13 months in prison, five years of supervised release, and was ordered to pay restitution of $129,189 to TD Bank, N.A. On Aug. 30, 2017, Dario pleaded guilty to one count each of conspiracy to commit bank fraud, attempted bank fraud, and aggravated identity theft.
From approximately February 2014 until his arrest on Sept. 21, 2014, Dario conspired with others to defraud, and did defraud, several banks through a multi-state ATM skimming scheme operated by a Romanian organized crime group in New York City. In this conspiracy, Dario and others first installed skimmer devices and pinhole cameras on the bank’s ATMs. The skimmer devices captured names and account numbers of hundreds of customers as they used their debit and other account cards to withdraw funds or engage in other transactions at the ATMs. The pinhole cameras recorded the personal identification numbers of the customers as they entered the information on the ATM keypads. Dario and others then removed the skimmer devices and pinhole cameras and used the account numbers and personal identification numbers to create fraudulent cards. The conspirators then used the fraudulent cards to withdraw money from the customers’ bank accounts, resulting in substantial losses to the financial institutions.
Acting United States Attorney William D. Weinreb; David L. Jaffe, Acting Chief of the Justice Department’s Organized Crime and Gang Section; Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and East Longmeadow Police Chief Jeffrey Dalessio made the announcement today. Assistant U.S. Attorney Steven H. Breslow of Weinreb’s Springfield Branch Office and Trial Attorney Marianne Shelvey of the Justice Department’s Organized Crime and Gang Section prosecuted the case.
United States Attorney’s Office Hosts 3rd Annual Anti-Terrorism ConferenceRead the Press Release
Roanoke, VIRGINIA – The United States Attorney’s Office for the Western District of Virginia hosted the 3rd Annual Anti-Terrorism Conference on September 28, 2017, at the Virginia Western Community College in Roanoke, Acting United States Attorney Rick A. Mountcastle announced.
More than 260 law enforcement officers from across the Commonwealth of Virginia attended to address topics related to protecting communities in the Commonwealth of Virginia from terrorism and the role of local, state, and federal law enforcement in the fight against terrorism.
Acting United States Attorney Mountcastle stressed the importance of the partnerships between local, state, and federal law enforcement in preventing terrorism. “More than 85 percent of law enforcement officers work at the state or local level. You are on the front lines in the noble task of keeping our communities safe. We hope that this conference will allow you to share your experiences, strengthen your partnerships, and enhance your ability to protect national security and prevent terrorist attacks . . . It’s our goal and intention that this conference will serve to enhance and foster the teamwork and coordination among law enforcement that is so important to our vital mission of protecting the public from terrorism.”
The United States Attorney’s Office for the Western District of Virginia holds Antiterrorism Advisory Council meetings multiple times per year and the annual antiterrorism conference to discuss international and domestic terrorism threats in the Western District of Virginia, to disseminate information and provide training to federal, state, and local law enforcement officers, and to enhance teamwork and cooperation among public safety agencies.
Two Pittsburgh-area Men Charged with Violating Federal Drug, Robbery and Gun LawsRead the Press Release
PITTSBURGH – Two Pittsburgh-area residents have been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics, robbery, and firearms laws Acting United States Attorney Soo C. Song announced today.
The six-count indictment, returned on September 26, 2017 and unsealed September 27, named Kahlil Shelton and Deron Howell.
According to the indictment, from August 4, 2017 to August 7, 2017, Shelton and Howell conspired to distribute and possess with the intent to distribute 50 kilograms or less of marijuana and did possess with the intent to distribute 50 kilograms or less of marijuana on August 7, 2017. Both are also charged with conspiring to commit Hobbs Act Robbery as well as committing the robbery itself on August 7, 2017. The indictment also charges that both men possessed a firearm in furtherance of both a drug trafficking crime and a crime of violence, and that the firearm was discharged in furtherance of committing those crimes.
Both face a total mandatory minimum sentence of not less than 10 years in prison up to a maximum sentence of life, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, and Firearms and the Cranberry Township Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Murfreesboro Men Indicted for Conspiracy and Civil Rights Violations in Islamic Center VandalismRead the Press Release
A federal grand jury in Nashville, Tennessee, yesterday, returned an indictment charging two Murfreesboro men, Charles Dwight Stout, III, 19, and Thomas Avery Gibbs, 18, with conspiring to commit a civil rights violation and committing a civil rights violation through damaging and defacing the Islamic Center of Murfreesboro.
The indictment was announced by Donald Cochran, U.S. Attorney for the Middle District of Tennessee, and Michael T. Gavin, Special Agent in Charge of the Memphis Field Office of the FBI.
The indictment alleges that Charles Stout and Thomas Gibbs vandalized the Islamic Center by placing bacon, a pork product forbidden by Islam, around an entrance; spray painted profane references to Allah on multiple parts of the Center’s exterior; concealed their identity in the commitment of these crimes by wearing masks; and the mask worn by Stout was a World War II-era Nazi gas mask.
The indictment also alleges that following the vandalism, Stout destroyed the clothing that he wore and permanently deleted the photographs of the vandalism that he took with his cell phone. Stout was previously indicted on August 30, 2017, for obstructing a federal investigation by deleting photographic evidence.
Members of the Islamic Center discovered the vandalism when they attended Morning Prayer on July 10, 2017, and immediately reported it to law enforcement.
If convicted, both men face up to a year in prison. An indictment is merely an accusation and is not evidence of guilt. The defendants are presumed innocent unless and until proven guilty in a court of law.
U.S. Attorney Cochran commended the work of the FBI and the Rutherford County Sheriff’s Office, who worked together to investigate this case and identify the suspects. Assistant United States Attorneys Sara Beth Myers and Henry C. Leventis are prosecuting the case.
Two Chattanooga Residents Sentenced to Prison for Participating in a Conspiracy to Commit Wire Fraud and for Tax EvasionRead the Press Release
CHATTANOOGA, Tenn. – On September 29, 2017, James H. Brennan, 68, and Douglas A. Dyer, 58, both of Chattanooga, Tennessee, were sentenced by the Honorable Travis R. McDonough, U.S. District Court Judge, to respectively serve 48 months and 60 months in federal prison for their roles in a wire fraud and tax evasion conspiracy. Upon their release, U.S. Probation will supervise them for three years. Brennan and Dyer were also ordered to pay over $4.9 million in restitution to over 200 victims in this case. Additionally, Brennan was ordered to pay restitution to the IRS in the amount of $184,022.84. Dyer was ordered to pay restitution to the IRS in the amount of $354,251.58.
In May 2017, both Dyer and Brennan pleaded guilty to conspiring to steal approximately $4.9 million from investors and evading the assessment and payment of their true taxes due and owing by mischaracterizing the stolen money as capital gains instead of income, thus paying at a fraudulently derived lower tax rate. Dyer also pleaded guilty to criminal contempt for dispersing funds contrary to an order in a civil case filed by the Securities and Exchange Commission for securities fraud.
According to documents on file with the U.S. District Court, between 2008 and 2016, Brennan and Dyer sought and received funds from numerous investors by promising them that their money would be used to capitalize limited liability corporations which would merge with companies seeking to transition to public ownership on a public stock exchange. Instead, they diverted the funds to their personal use. Although the general practice is to report stolen funds as income, Brennan and Dyer mischaracterized the funds they stole as capital gains and paid taxes at the lower capital gains rate, effectively evading paying taxes at the correct rate.
The case was investigated by the Federal Bureau of Investigation (FBI) and Internal Revenue Service (IRS) Criminal Investigation. Assistant U.S. Attorneys James T. Brooks and Anne-Marie Svolto represented the United States.
U.S. Attorney Nancy Stallard Harr said, “The U.S. Attorney’s Office will continue to pursue prosecution of fraudulent offenders, such as Brennan and Dyer, who effectively steal money from both innocent individuals and the United States by failing to pay taxes.”
“Fraudulent investment schemes continue to bring financial ruin to many Americans,” stated Tracey D. Montaño, Special Agent in Charge, IRS-Criminal Investigation. “We are proud of the work of our special agents who utilize their specialized forensic accounting skills to unravel complex financial schemes. The prosecution of individuals who intentionally conceal their income and evade taxes is a key priority for IRS Criminal Investigation. Mr. Dyer and Mr. Brennan stole investors’ hard-earned money, used it for their own personal benefit, and evaded the federal tax owed on the stolen funds. This case should serve as a reminder, no matter the source of income, all income is taxable.”
“The public's faith in the integrity of investment markets, particularly those involving capital for new companies, is essential for the continued success of our country's economic stability and growth,” stated Renae McDermott Special Agent in Charge of the Knoxville FBI. “The sentencing today demonstrates the commitment of the FBI and our investigative partners to bring to justice those who prey upon unsuspecting investors.”
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Toledo felon indicted following arrest with crack cocaine and 13 firearms, including unregistered sawed-off shotgunRead the Press Release
A Toledo man arrested with 13 firearms was indicted on firearm and drug charges, said U.S. Attorney Justin E. Herdman, FBI Special Agent in Charge Stephen D. Anthony and Toledo Police Chief George Kral.
Markein Cargill, 46, was indicted on one count each of possessing firearms after being convicted of a felony; possessing an unregistered short-barrelled shotgun; possessing with intent to distribute crack cocaine; and using and carrying a firearm during and in relation to a drug trafficking offense.
Cargill on Sept. 1, 2017, was arrested with 13 firearms, including a sawed-off 12-gauge shotgun with no serial number. Cargill was not allowed to possess firearms because of previous convictions for crimes involving heroin and cocaine, according to the indictment.
He also possessed with intent to distribute nearly 10 grams of crack cocaine, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after reviewing 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 violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agencies in this case are the Federal Bureau of Investigation and the Toledo Police Department. The case is being handled by Assistant United States Attorney Noah P. Hood.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The United States Attorney’s Office Announces Its On-Going Efforts to Combat Human TraffickingRead the Press Release
Savannah, GA- The Federal Human Trafficking Task Force for the Southern District of Georgia (“Task Force”), led by the United States Attorney’s Office for the Southern District of Georgia, announces its recent and on-going efforts to combat human trafficking.
Human trafficking, also known as trafficking in persons or modern-day slavery, is a crime that involves compelling or coercing a person to provide labor or services, or to engage in commercial sex acts. The coercion can be subtle or overt, physical or psychological. Exploitation of a minor for commercial sex is human trafficking, regardless of whether any form of force, fraud, or coercion was used.
The Task Force was created in 2015 as a partnership of federal, state and local law enforcement agencies with a common goal of discovering and rescuing victims of human trafficking while identifying and prosecuting the criminals responsible. The Task Force achieves that goal through heightened law enforcement and victim service presence in the community, through devotion of resources to intensive investigations designed to dismantle trafficking organizations, and by providing training for law enforcement and conducting outreach awareness campaigns in the community. The Task Force also partners with non-government agencies to provide necessary services and basic needs for victims of human trafficking, including counseling, emergency shelter, clothing, and medicine.
The Task Force recently has provided training on ways to recognize and prevent human trafficking to a number of local groups, including: at-risk youth at Park Place Outreach, a youth emergency shelter (June 2017); medical staff at Memorial Hospital in Savannah, Georgia (July 2017); social workers, guidance counselors, school nurses and alternative school staff with the Savannah-Chatham County Public School System (July 2017); the Coastal Area Traffic Enforcement Network, an organization that includes law enforcement from Appling, Bacon, Brantley, Camden, Charlton, Glynn, Jeff Davis, Liberty, Long, McIntosh, Pierce, Tattnall, Ware, and Wayne Counties (September 26, 2017); and medical staff at Southeast Georgia Health System in Camden County (September 28, 2017).
Over the past four years in the Southern District of Georgia, at least 31 human trafficking victims were rescued based on the collaborative efforts of law enforcement and the Task Force. In March 2017, a federal grand jury convicted Timothy Lewis of nine counts of child sex trafficking and eight counts of coercion and enticement of a minor to engage in sexual activity, among other felony charges, in relation to a child sex trafficking ring he operated in the Savannah, Georgia area. That case began as a rescue operation to find a missing 13-year-old girl. The investigation revealed, and trial evidence showed, that Lewis was selling the 13-year-old and seven other children for commercial sex through online prostitution advertisements. Lewis’ sentencing hearing is scheduled for November 30, 2017, and he faces a maximum sentence of life imprisonment for his crimes.
United States Attorney R. Brian Tanner said, “Human traffickers prey on some of the most vulnerable members of our community, and they must be brought to justice. Working together with our law enforcement and community partners can only increase our success in identifying victims and in investigating and prosecuting these cases. We will continue to bring the full power of the federal government to this important fight.”
David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI continues to be a steadfast partner with federal prosecutors in the fight against human trafficking as we dedicate significant resources toward the identification, investigation, and presentation for prosecution of those involved and providing the much needed services to those being exploited. It takes many agencies working together to make a difference in eradicating this scourge and the FBI is proud of the part that it plays in addressing this in an aggressive but cohesive manner.”
“Human trafficking is quite simply a form of modern-day slavery, and the threats and abuse inflicted on these particular victims only adds to the heinous nature of the crime,” said Special Agent in Charge of ICE Homeland Security Investigations Atlanta Nick Annan. “HSI made a record number of more than 2,000 human trafficking arrests in 2016 and rescued more than 400 trafficking victims nationwide, with many of them often hidden in plain sight. HSI will continue our relentless pursuit to investigate and seek prosecution of criminal traffickers while ensuring the victims of this terrible crime are rescued and get the care they need.”
If you believe you have information about a potential trafficking situation, call the National Human Trafficking Hotline toll-free at 1-888-373-7888. Anti-trafficking advocates are available 24 hours a day, seven days a week to take reports of potential human trafficking. All reports are confidential, and you may remain anonymous. Interpreters are available. The information you provide will be reviewed by the National Hotline and forwarded to specialized law enforcement and/or service providers where appropriate.
To request training for your organization and for additional information, please contact Assistant United States Attorney Tania Groover, U. S. Attorney’s Office, at (912) 652-4422.
Tallahassee Man Convicted of Attempted Enticement of a MinorRead the Press Release
TALLAHASSEE, FLORIDA – Michael A. Chmielewski, 38, of Tallahassee, a former State of Florida legislative staffer, was convicted of attempted enticement of a minor this afternoon in the U.S. District Court in Tallahassee after a three-day trial. The verdict was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In February 2017, undercover investigators conducted “Operation Cupid’s Arrow” to identify individuals seeking to engage in sexual activity with minors. Chmielewski responded to a Craigslist advertisement in which an undercover officer posed as a 14-year-old girl named “Sara.” Over two days, Chmielewski continued his conversation with “Sara” on the chat messaging application Kik, discussed sexual activity with “Sara,” and traveled to meet “Sara” in person to have sex. Chmielewski was arrested after arriving at a store to meet “Sara.”
Chmielewski faces a minimum of 10 years and a maximum of life in prison. The sentencing hearing is scheduled for January 5, 2018, at 1:30 p.m. at the United States Courthouse in Tallahassee.
The case was investigated by the Florida Department of Law Enforcement, the Leon County Sheriff’s Office, the Tallahassee Police Department, the Cocoa Police Department, the United States Immigration and Customs Enforcement Homeland Security Investigations, the U.S. Marshals, and the North Florida Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney Christopher J. Thielemann.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Springfield Man Sentenced to 13 Years in Prison for Stalking and Kidnapping WomanRead the Press Release
ALEXANDRIA, Va. – A Springfield, Virginia man was sentenced today to a total of 13 years in prison for interstate stalking, interstate domestic violence, and being a felon in possession of ammunition.
According to court records, Nam Quoc Hoang, 41, began stalking his ex-girlfriend in late December 2013. Nam’s harassment began when he sent his ex-girlfriend a series of messages in which he threatened to post sexually explicit photographs of her unless she paid him money. When his ex-girlfriend did not pay him, Nam posted the photographs and continued to repost the photographs even after Facebook took the photographs down. After posting the photographs, Nam and his co-conspirator, Khoa Dang Vu Hoang, traveled from Virginia to Maryland to stalk his ex-girlfriend throughout January 2014. This stalking included breaking into her home on two occasions and taking valuable personal items, which were never recovered.
On January 26, 2014, Khoa observed the ex-girlfriend’s Facebook post “checking in” to a nightclub in Washington, D.C. Khoa informed Nam about this post and the men drove to the nightclub and waited for Nam’s ex-girlfriend to return to her vehicle and leave. The men then followed her, and when she stopped at a traffic light Nam approached her vehicle, displayed a weapon, and demanded entry. His ex-girlfriend, afraid for her life, let Nam into the vehicle. Once inside the vehicle, Nam hit his ex-girlfriend in the face and threatened her and her family.
A federal jury convicted Khoa in March for interstate stalking and conspiracy, and he was sentenced to five years in prison on July 21, 2017.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorneys James L. Trump, Carina A. Cuellar, and James Levine prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-193.
Slidell Man Charged for Conspiring to Sell Fentanyl and Heroin, and for Firearms ChargesRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that KENNETH MARTIN, age 43, of Slidell, was charged yesterday in an eleven-count Indictment for conspiring to distribute and to possesses with the intent to distribute 40 grams or more of fentanyl and 100 grams or more of heroin, and for possession of three firearms in furtherance of his drug trafficking.
According to the Indictment, from at least May 23, 2016, through August 2, 2017, MARTIN conspired to distribute 40 grams or more of fentanyl and 100 grams or more of heroin. MARTIN is also charged seven counts of distribution of heroin or fentanyl, and one count of possession with the intent to distribute 40 grams or more of fentanyl. Additionally, MARTIN is charged with being a felon in possession of three firearms – a revolver, a semi-automatic pistol, and a shotgun – and with possessing those firearms in furtherance of the drug trafficking conspiracy.
If convicted of the drug charges, MARTIN will face a minimum of five years and a maximum of forty years imprisonment. If convicted of possessing of a firearm in furtherance of the drug trafficking conspiracy, MARTIN faces a minimum of five years and a maximum of life imprisonment, all of which must be consecutive to his sentence for other counts.
Acting U.S. Attorney Evans reiterated that the Indictment is merely an allegation and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the Department of Homeland Security, the Drug Enforcement Administration, the Federal Bureau of Investigation, the St. Bernard Parish Sheriff’s Office, and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Nicholas D. Moses is in charge of the prosecution.
Salvadoran national in Cleveland indicted on firearms and identity theft chargesRead the Press Release
A Salvadoran national was indicted on firearms and identity theft charges, law enforcement officials said.
Carlos Amaya-Melendez, 38, is a citizen of El Salvador but was living in Cleveland. He used the identity of a U.S. citizen from Puerto Rico to obtain an Ohio driver’s license in 2009. It was renewed in 2015, according to court documents.
He also possessed a .38-caliber revolver and ammunition while not a citizen of the U.S., according to the indictment.
This case was investigated by the Department of Homeland Security, U.S. Customs and Border Protection, U.S. Border Patrol. It is being prosecuted by Assistant U.S. Attorneys Elliott Morrison and Robert Kern.
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.
An indictment is a charge and 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.
Salvadoran National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Salvadoran national was charged yesterday in federal court in Boston with a federal immigration crime.
Gerardo Alberto Perez-Fuentes, 22, was indicted on one count of unlawful reentry of a deported alien. Perez-Fuentes was previously deported on Oct. 8, 2015. On Sept. 6, 2017, law enforcement in Chelsea encountered Perez-Fuentes and determined him to be illegally present in the United States.
The charge provides for a sentence of no greater than 10 years in prison, three year of supervised release, and a fine of $250,000. Perez-Fuentes will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit is prosecuting this case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Salem Man Sentenced in Federal Court on Firearms ChargeRead the Press Release
Columbia, South Carolina –------- United States Attorney Beth Drake, announced today that Justin David Crenshaw, age 31, of Salem, was sentenced to the statutory maximum of ten years in federal prison earlier this week on charges stemming from his possession and discharge of a firearm last fall at a residence in Oconee County. United States District Court Judge Bruce H. Hendricks, who issued the sentence, also revoked Crenshaw’s term of supervised release, adding an additional two years to be served consecutively to the ten-year sentence, effectively bringing the sentence to a term of twelve years.
Crenshaw was previously indicted on December 13, 2016, by a federal grand jury for felon in possession of ammunition, a violation of Title 18, United States Code, Section 922(g)(1). Prior to his indictment, Crenshaw, whose conduct at the time of the offense was being supervised by United States Probation following his summertime release from the Bureau of Prisons, was arrested on federal arrest warrants in early December for the offense and has remained in custody, detained without bond, since that date.
The facts presented by the government at the guilty plea hearing this morning established that on October 25, 2016, Crenshaw and a colleague entered a residence in Oconee County and initiated a physical assault on a male located in the residence. The male ran outside the house followed by Crenshaw who then fired two rounds during the altercation. Deputies recovered two 9mm ammunition casings from the site of the incident. When interviewed, Crenshaw admitted firing the shots.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with the assistance and cooperation of the Oconee County Sheriff’s Office. The prosecution of the case was handled by Assistant U.S. Attorney Bill Watkins and First Assistant U.S. Attorney Lance Crick.
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Sacramento Man Sentenced for Role in Gold SchemeRead the Press Release
SACRAMENTO, Calif. — Garik Voskanyan, 34, of Sacramento, was sentenced today by United States District Judge Garland E. Burrell, Jr. to 15 months in prison for bank fraud, United States Attorney Phillip A. Talbert announced.
According to court documents, in May 2013, Voskanyan conspired with his
co-defendant, Karapet Damaryan, and others to steal the identity of an innocent bank account holder in order to gain control over the victim’s bank account. The conspirators then fraudulently wired $141,395 out of the victim’s account to a gold coin and bullion store, where Voskanyan and his co-defendant attempted to use the stolen funds to purchase nearly 100 one-ounce gold coins. The fraud was detected when the victim checked his bank account on the day the fraudulent wire was attempted. Voskanyan and Damaryan were arrested outside the gold store when they arrived to pick up the gold.
This case was the product of an investigation by the United States Secret Service and the Placer County Sheriff's Office. Assistant United States Attorneys Matthew G. Morris and Amy Schuller Hitchcock prosecuted the case.
Co-defendant Damaryan pleaded guilty to aggravated identity theft and bank fraud on January 20, 2017, and is set to be sentenced on October 27, 2017.
Richmond Man Charged with Sex Trafficking by Force, Threats of Force, Fraud, and CoercionRead the Press Release
OAKLAND - A federal grand jury indicted Marcus Antonio Redick, aka “Stacks,” aka “Domanni Sellers,” for the sex trafficking of a victim by force, threats of force, fraud, and coercion, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge, John F. Bennett.
According to the indictment filed on September 28, 2017, and unsealed today, Redick, 36, of Richmond, Calif., is alleged to have recruited, enticed, obtained, harbored, and transported a victim in or affecting interstate commerce knowing that force and threats of force would be used to cause that victim to engage in a commercial sex act. The indictment charges Redick with one count of violating 18 U.S.C. § 1591(a)(1).
Redick was arrested this morning, and he made his initial appearance in the Oakland federal courthouse today before U.S. Magistrate Judge Kandis A. Westmore. Redick is currently in federal custody pending further hearings, the next of which is scheduled for 9:30 a.m. on October 5, 2017, before U.S. Magistrate Judge Donna M. Ryu, for status regarding detention.
The maximum statutory penalties for a violation of 18 U.S.C. § 1591(a) are life in prison, a $250,000 fine, and a lifetime term of supervised release. Redick also faces a mandatory minimum sentence of 15 years in prison, and a mandatory minimum term of supervised release of 5 years. In addition, there is a mandatory special assessment of $100, and the Court may order restitution and forfeiture. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, namely, 18 U.S.C. § 3553.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Assistant U.S. Attorney Bill Gullotta is prosecuting the case with the assistance of Julissa Rey and Vanessa Vargas. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Oakland Police Department.
Anyone who suspects instances of human trafficking are strongly encouraged to call the FBI or the Human Trafficking Hotline at 1-888-373-7888. Anonymous calls are welcome.
Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, via its toll-free 24-hour hotline, 1-800-843-5678. Indeed, a NCMEC tip led to the discovery and rescue of a victim in this case.
Randallstown Woman Sentenced to 2 Years in Prison for Injecting Non-Medical Grade Silicone into the Bodies of Victim CustomersRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States District Judge Ellen L. Hollander sentenced Kendra Westmoreland, age 55, of Randallstown, Maryland, to two years in prison, followed by one year of supervised release for receiving and delivering an adulterated or misbranded device, in connection with her receipt and use of polydimethylsiloxane, which she misrepresented to customers as medical grade silicone. Judge Hollander also ordered Westmoreland pay a fine of $2,500.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Mark S. McCormack of the U.S. Food & Drug Administration, Office of Criminal Investigations’ Metro Washington Field Office; and Chief Terrence B. Sheridan of the Baltimore County Police Department.
According to her plea agreement, from October 2000 through October 4, 2015, Westmoreland received polydimethylsiloxane, a silicon-based organic polymer that she injected directly into the bodies of victim customers for money or some other payment. Westmoreland intentionally defrauded and misled individuals by representing polydimethylsiloxane as “medical grade” silicone and approved for injecting directly into the human body. Westmoreland also indicated that she was medically licensed to perform the procedure. In fact, Westmoreland was never a licensed medical practitioner and silicone is not approved by the FDA for this purpose.
As a result of her representations, victim customers came to her residence, or to hotel rooms, to have polydimethylsiloxane injected directly into their buttocks and other places on their bodies, for larger and fuller buttocks or to shape other areas of their bodies. Westmoreland also traveled to other locations for the same purpose. Westmoreland typically charged customers $250 to $500 per session, and estimated that she had injected thousands of customers, who she claimed found her through word of mouth, or through her business website. On October 4, 2015, a search warrant was executed at Westmoreland’s residence. A room of her home was set up to resemble an operating room, including medical equipment and collages of photographs of individuals exposing their buttocks, representing a sampling of those who Westmoreland had injected with silicone. A forensic search of Westmoreland’s cellular phone revealed 126 individuals listed in her contacts as clients. A financial audit of Westmoreland’s finances for the period from December 2011 to October 2015 revealed cash deposits of $227,994.01, and additional deposits of $48,801.06, for a total of $276,795.07. The audit indicated no tax payments and no tax returns filed during that period.
Westmoreland admitted that she stored the polydimethylsiloxone in a plastic container that was not properly labeled for medical use. When injected into humans, liquid silicone is a medical device subject to the regulation of the Food and Drug Administration (FDA). Polydimethylsiloxane is not approved, exclusively or as a component, for body-contouring. Polydimethylsiloxane is used in the manufacture of shampoos (to make hair shiny and slippery), food (as an antifoaming agent), caulking, lubricants, kinetic sand, and heat-resistant tiles.
Acting United States Attorney Stephen M. Schenning commended the FDA Office of Criminal Investigations and Baltimore County Police Department for their work in the investigation. Mr. Schenning thanked Assistant United States Attorney Judson T. Mihok, who prosecuted the case.