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21 September 2017
Quad Cities Real Estate Developer Sentenced to Six Years in Prison for Defrauding InvestorsRead the Press Release
ROCK ISLAND, Ill. – A Rock Island, Ill., businessman, Todd B. Raufeisen, has been sentenced to 72 months imprisonment for defrauding investors in his land development and management projects of approximately $1.7 million. In May 2017, Raufeisen, 56, entered his guilty pleas to one count each of wire fraud and money laundering. U.S. District Judge Sara Darrow also sentenced Raufeisen to three years of supervised release following release from prison and ordered him to pay over $1.72 million in restitution to his 22 victims of fraud. Raufeisen was ordered to report to the federal Bureau of Prisons on Oct. 23, to begin serving his sentence.
In court documents and statements, Raufeisen admitted that from 2010 to August 2016, he engaged in a scheme that defrauded approximately 22 investors in his development projects and resulted in a loss of approximately $1.7 million. Raufeisen engaged in business under various business names, including RDC Hotel Solutions.
As part of the scheme, Raufeisen promised prospective investors a higher rate of interest than conventional, insured investments and short turnarounds on return of the principle and interest. In exchange for the money invested, Raufeisen promised certain investors that the money would be placed in escrow until needed, would only be used for specific development or management projects, and, if unused, the money would be returned to the investor. In fact, Raufeisen used the investors’ money for personal expenses and to pay previous investors to whom he was indebted.
Further, Raufeisen provided certain investors with promissory notes that promised repayment of invested principle and interest. The notes were purportedly signed and guaranteed by persons who knew nothing of the promissory notes and had not guaranteed repayment to the investors. In fact, Raufeisen admitted that he forged the signatures on the promissory notes.
The Internal Revenue Service Criminal Investigation Division; Federal Bureau of Investigation; and, the Office of the Illinois Secretary of State conducted the investigation. Assistant U.S. Attorney Donald Allegro prosecuted the case on behalf of the government.
Powell Resident Sentenced to Serve Eight Years in Federal Prison for Tax Evasion, Mail Fraud and Wire FraudRead the Press Release
KNOXVILLE, Tenn. – On September 20, 2017, Andrea Rudd, 38, of Powell, Tennessee, was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to consecutively serve 60 months for tax evasion and 36 months for mail and wire fraud, for a total of 96 months in federal prison. Upon her release from prison, she will be supervised by U.S. Probation for three years. Rudd was also ordered to pay $15,766,417.32 in restitution to the victims of her offenses, $10,377,785.04 of which will go to the Internal Revenue Service (IRS).
In April 2017, Rudd, pleaded guilty to a two-count information charging her with the above-referenced offenses. This information, on file with U.S. District Court, contains a detailed account of her scheme in committing these crimes.
Rudd was the owner of HR Comp, LLC (HR Comp) in Powell, Tennessee. HR Comp, conducted business through several subsidiaries collectively known as the Professional Employer Organization (PEO) Entities. Operating both independently and in the name of the PEO Entities, HR Comp entered into contracts with client companies to process their payroll. In conjunction with handling the payroll, HR Comp was responsible for collecting and remitting money owed by the companies and their employees for payroll taxes to the IRS. Additionally, HR Comp, both independently and through the PEO Entities, entered into contracts with the client companies to provide worker’s compensation insurance.
Between 2011 and 2015, instead of remitting the money collected from her client companies for payroll taxes to the IRS, Rudd converted the funds for her own personal use. Additionally, client agencies sent money to HR Comp, in exchange for what Rudd and her co-conspirators represented to be worker’s compensation insurance. However, false certificates of insurance were provided to the client companies and the insurance was never purchased.
Investigative agencies involved in this case included IRS-Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Frank Dale represented the United States through court proceedings.
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Philadelphia Man Charged with Bank RobberyRead the Press Release
Scott Wayne Turner, 49, of Philadelphia, Pennsylvania, was charged today by Indictment with one count of bank robbery, announced Acting United States Attorney Louis D. Lappen.
If convicted the defendant faces a maximum possible sentence of 20 years imprisonment, a $250,000 fine, a $100 special assessment, and a three-year period of supervised release.
The case was investigated by the Federal Bureau of Investigation Violent Crimes Task Force and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Priya T. De Souza.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Peter E. Deegan Jr. Sworn in as United States AttorneyRead the Press Release
Cedar Rapids, Iowa. – Peter E. Deegan, Jr. has taken the oath of office today to become the United States Attorney for the Northern District of Iowa. Mr. Deegan was nominated by President Donald Trump on July 19, 2017, and unanimously confirmed by the United States Senate on September 14, 2017. He took the oath of office from United States District Judge Linda R. Reade.
“Having been part of the office for most of my professional career, I know first-hand that it is made up of an exceptional group of dedicated and talented public servants,” said Deegan. “It’s both an honor and a privilege to be chosen to serve as the United States Attorney.”
As United States Attorney, Mr. Deegan is the top-ranking federal law enforcement official in the Northern District of Iowa. He oversees a staff of 46 employees, including 25 attorneys and 21 non-attorney support personnel. The office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, public corruption, child exploitation, firearms, and narcotics. The office also defends the United States in civil cases and collects debts owed to the United States.
Mr. Deegan’s career as a federal prosecutor began in 1998 when he joined the Northern District of Iowa’s Sioux City branch office as a Special Assistant United States Attorney employed through the Iowa Attorney General’s Office. Mr. Deegan prosecuted methamphetamine manufacturers and traffickers as part of the Midwest High Intensity Drug Trafficking Area’s methamphetamine initiative. In 1999, as an Assistant United States Attorney, he began prosecuting a full variety of federal criminal cases from narcotics and violent crime to complex fraud, child sexual exploitation, and business crimes. Mr. Deegan moved from Sioux City to the Cedar Rapids office in 2001.
From 2004 to 2006, Mr. Deegan served as an Assistant United States Attorney in Detroit where he prosecuted general criminal matters including alien smuggling, medical device smuggling, and financial fraud. He also successfully tried a Detroit police detective and his brother for bank robbery conspiracy.
After returning to Cedar Rapids in 2006, Mr. Deegan prosecuted the two largest financial fraud cases in the history of the district. These included a $215,000,000 fraud committed by the owner of Peregrine Financial Group, Inc. He also co-led the investigation and prosecution of a large-scale criminal immigration enforcement action and the subsequent prosecution of several employer personnel for alien harboring and related offenses. In recent years, Mr. Deegan led the investigation and prosecution of federal Food, Drug, and Cosmetic Act and public corruption crimes related to the largest food-borne salmonella outbreak in the nation’s history.
From 2015 until his confirmation as United States Attorney, Mr. Deegan served as the Chief of the Criminal Division in the Northern District of Iowa.
Mr. Deegan has received several Department of Justice honors and awards for his work as a federal prosecutor, including the Executive Office for United States Attorney’s Director’s Award and a Special Commendation award from the Civil Division.
Mr. Deegan has taught Federal White Collar Crime as an adjunct professor at the University of Iowa Law School. He has also served as a regular trial advocacy instructor at the Department of Justice’s National Trial Advocacy Center in Columbia, South Carolina, and as a visiting trial advocacy instructor at the University of Notre Dame Law School. Mr. Deegan has served on multiple boards and service committees.
Mr. Deegan earned a bachelor’s degree in Philosophy and Middle East Studies from the University of Notre Dame in 1992 and received his law degree from Wayne State University Law School in 1995. Prior to joining the office, he clerked for United States District Judge Lawrence P. Zatkoff in the Eastern District of Michigan. He also practiced law in Chicago where he represented small businesses in labor and employment related litigation. He is a member of the State Bars of Iowa and Michigan and an inactive member of the State Bar of Illinois. He lives in Cedar Rapids with his wife and seven children.
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Papillion Man Sentenced in Federal Court to 50 Months in Prison for Possessing Child PornographyRead the Press Release
Leonard E. Megee, 65, was sentenced in federal court Thursday in Omaha, Nebraska, for possessing child pornography. The Honorable John M. Gerrard sentenced Megee to 50 months’ imprisonment. There is no parole in the federal system. After his release from prison, Megee will begin a five-year term of supervised release and will be required to register as a sex offender. Megee was order to pay $5,000 and a $100 special assessment. Megee was further ordered to pay $1,500 in restitution to victims in his collection of child pornography.
An Internet Service Provider reported that a computer from within Megee’s Papillion residence had uploaded an image of child pornography. It was determined that Megee had exchanged images of child pornography with the email accounts of at least three others.
A search warrant was served by members of the FBI Cyber Crimes Task Force in September 2016. A search of his computers and email accounts recovered 9 videos and 75 images of child pornography. The images were of prepubescent children, most between the ages of 5 and 8 engaged in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Omaha FBI's Cyber Crime Task Force (CCTF).
Owner of Washington Produce Business Sentenced to Prison for Filing Fraudulent Federal Tax ReturnsRead the Press Release
A Chelan Falls, Washington man was sentenced in absentia to 30 months in prison for filing a fraudulent 2011 federal tax return, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, from 2009 through 2012, Jose L. Echeverria, 46, owned and operated a produce sales business in Chelan Falls. Echeverria filed fraudulent individual income tax returns for tax years 2009 through 2012 that underreported the income he received from his business by a total of $564,292, causing a tax loss of approximately $183,191. During this timeframe, Echeverria wired hundreds of thousands of dollars in unreported income to an account in Mexico to purchase land, vacation homes and vehicles for his personal use.
In addition to the term of prison imposed, U.S. District Court Judge Lonny R. Suko ordered Echeverria to serve one year of supervised release, and to pay $183,191 in restitution to the Internal Revenue Service (IRS). Echeverria pleaded guilty in February. Echeverria is believed to have fled to Mexico and remains a fugitive.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Lisa L. Bellamy and former Trial Attorney Gregory Bernstein of the Tax Division, who prosecuted the case. Acting Deputy Assistant Attorney General Goldberg also thanked Joseph H. Harrington, Acting U.S. Attorney for the Eastern District of Washington, and the members of his office for their assistance.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Owner and Healthcare Company Sentenced for Conspiracy to Commit Healthcare Fraud and Conspiracy to Pay and Receive Illegal KickbacksRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that LISA CRINEL age 52; of New Orleans, and PCAH, INC. a/k/a PRIORITY CARE AT HOME, INC. d/b/a ABIDE HOME CARE SERVICES INC. (“ABIDE”), were sentenced today for their roles in approximately $30,052,295 in Medicare fraud.
U.S. District Judge Susie Morgan sentenced CRINEL to 80 months imprisonment, followed by three years of supervised release, and restitution to Medicare in the amount of $16,088,222. The corporation CRINEL owned, PCAH, INC. a/k/a PRIORITY CARE AT HOME, INC. d/b/a ABIDE HOME CARE SERVICES INC., was sentenced today to five years of probation and restitution to Medicare in the amount of $16,088,222.
On March 12, 2015, CRINEL and ABIDE were indicted along with 19 other defendants in a 26-count indictment.
On October 2, 2015, CRINEL pled guilty to one count of conspiracy to commit healthcare fraud and one count of conspiracy to pay and receive illegal kickbacks. That same day, ABIDE pled guilty to one count of conspiracy to commit health care fraud.
According to court documents, CRINEL was the owner and operator of ABIDE, a business that provided home health care services to homebound individuals who were primarily Medicare beneficiaries. As the owner and Chief Operating Officer of ABIDE, CRINEL took a “100 percent hands on approach” that extended to “almost every aspect of the operation” of the business. Home health experts trained CRINEL and her staff on who qualified for home health and how home health services should be documented. Evidence seized at the search of ABIDE’s office established that CRINEL maintained ABIDE’s Medicare Provider Number and routinely certified on behalf of ABIDE that she would not knowingly present or cause to be presented false or fraudulent claims for payment by Medicare. Nevertheless, CRINEL instructed her staff not to discharge patients, even those who did not require home health services. ABIDE, under CRINEL’s direction, also routinely falsified diagnoses codes and medical records to cause inflated reimbursements from Medicare. CRINEL and ABIDE created an atmosphere where nurses and other healthcare professionals would compromise their medical and ethical judgment in order to defraud Medicare. Court documents also show that CRINEL and ABIDE entered into sham employment contracts and medical director contracts with doctors and others to cover up the illegal kickback relationship between CRINEL, ABIDE, and those doctors and other individuals. Four physicians have since been convicted for their roles in the conspiracies and are awaiting sentence.
Acting U.S. Attorney Evans praised the work of the Special Agents of the Federal Bureau of Investigation and the U.S. Department of Health and Human Services in investigating this matter. Assistant U.S. Attorneys Patrice Harris Sullivan, Hayden M. Brockett, Sharan Lieberman, and Maria Carboni were in charge of the prosecution.
Orange County Man Sentenced to over 17 Years for Receipt and Possession of Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Nathan P. Perez (35, Orange County) to 17 years and 6 months in federal prison, followed by a life term of supervised release, for receiving and possessing child pornography. He pleaded guilty on June 19, 2017.
According to court documents, Perez had a large number of videos and images on his electronic devices depicting the sexual abuse and exploitation of children, many of whom were under the age of 12. Based on his criminal history and additional evidence presented at the sentencing hearing, the Court determined that Perez poses a continued danger to the public, which was a factor mentioned by the Court in imposing yesterday’s sentence.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt.
The 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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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.justice.gov/psc.
Nine Alleged Members of Chicago Street Gang Charged with Participating in Racketeering Conspiracy Involving Multiple MurdersRead the Press Release
CHICAGO — A federal indictment unsealed this week charges nine alleged members of the Four Corner Hustlers street gang with participating in a criminal organization that murdered six people and violently protected drug-dealing territories on the West and Southwest Sides of Chicago.
Authorities uncovered the alleged gang activity through a lengthy investigation conducted under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF), with assistance from the Chicago FBI’s Safe Street Task Force, the High Intensity Drug Trafficking Area Task Force (HIDTA), the ATF’s Chicago Crime Gun Strike Force, and the Chicago Police Gang Investigations Division.
The indictment charges that the Four Corner Hustlers dealt drugs and robbed rival dealers, used violence and intimidation to prevent victims and witnesses from cooperating with law enforcement, and tried to avoid detection by monitoring police scanners and outfitting its members with a security detail. The gang engaged in numerous acts of violence, including murder, robbery, extortion and aggravated battery, according to the indictment.
The gang operated primarily in the Chicago neighborhoods of West Garfield Park and Humboldt Park on the West Side, and in the former LeClaire Courts public housing development on the Southwest Side, the indictment states.
Nine alleged Four Corner Hustlers are charged with racketeering conspiracy. Two other defendants are charged in the indictment with participating in an extortion conspiracy, bringing the total number of charged defendants to eleven. The indictment identifies three Four Corner Hustlers who engaged in the racketeering conspiracy but died before they could be charged.
The indictment was returned Sept. 14, 2017, and ordered unsealed after several of the defendants were arrested this week. The defendants have begun making initial appearances in federal court in Chicago.
The indictment was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; and Eddie T. Johnson, Superintendent of the Chicago Police Department. Substantial assistance was provided by the Illinois Secretary of State Police Department, the U.S. Bureau of Prisons, the Illinois Department of Corrections, and the Illinois State Police.
Charged with racketeering conspiracy are LABAR SPANN, 38; SAMMIE BOOKER, 43; TREMAYNE THOMPSON, 33; JUHWUN FOSTER, 37; MARCHELLO DEVINE, 30; RONTRELL TURNIPSEED, 24; KEITH CHATMAN, 29; STEVON SIMS, 27; and DEANDRE SPANN, 40; all of Chicago.
The indictment holds all nine members of the racketeering conspiracy criminally responsible for the murders of six people: Carlos Caldwell on Jan. 19, 2000; Maximillion McDaniel on July 25, 2000; Levar Smith on Aug. 14, 2000; George King on April 8, 2003; Willie Woods on April 16, 2003; and Rudy Rangel on June 4, 2003. Specifically, the indictment charges that Labar Spann participated in all six slayings, with assistance in five of them from at least one other member of the conspiracy. Individual counts in the indictment charge Labar Spann, Thompson and Foster with committing the murder of Woods; and Labar Spann with committing the murder of Rangel. The charges allege that the Woods and Rangel murders were carried out for the purpose of maintaining and increasing position in the Four Corner Hustlers.
Charged with participating in an extortion conspiracy are Labar Spann; Thompson; MIKAL JONES, 33, of Chicago; and ANTONIO DEVINE, 25, of Chicago.
The investigation was conducted under the umbrella of the OCDETF program, a partnership between federal, state and local law enforcement agencies. The principal mission of OCDETF is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations.
The public is reminded that an indictment contains only charges and are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The racketeering conspiracy charge generally carries a maximum sentence of 20 years in prison, but a life sentence is possible for certain underlying racketeering activities referenced in the indictment. The murder counts in connection with the slayings of Woods and Rangel each carry a mandatory minimum sentence of life imprisonment and a maximum potential sentence of the death penalty. The extortion conspiracy is punishable by up to 20 years in prison. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The government is represented by Assistant U.S. Attorneys Peter S. Salib, Timothy J. Storino and William Dunne.
New York City Men Sentenced to Lengthy Prison Terms for Leading Large Drug and Fraud Organization in Vermont and MaineRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Gary Delima, 28, of Copiague, New York, and Sharif Cargo, 28, of Brooklyn, New York, were sentenced today for conspiring to distribute more than 100 grams of heroin, and 28 grams of cocaine base, and for conspiring to commit access device fraud. Chief District Judge Christina Reiss sentenced Delima to a 156-month term of incarceration for the drug trafficking offense, and a concurrent 63-month term of incarceration for the fraud offense. Chief Judge Reiss sentenced Cargo to a 132-month term of incarceration for the drug trafficking offense, and a concurrent 57-month term of incarceration for the fraud offense.
According to Court records, Delima and Cargo were the leaders and organizers of a large drug trafficking organization that imported heroin and cocaine base to multiple cities in Vermont and Maine for distribution from approximately the fall of 2012 until March of 2015. Utilizing the alias “Jeff,” both Delima and Cargo communicated by telephone with the customers in Vermont, and directed them to meet with their coconspirators at various locations in Burlington. Delima and Cargo utilized local addicts to function as hosts for their out-of-state coconspirators, providing safe-harbor for their drugs. Law enforcement linked Delima and Cargo’s drug distribution activities to at least one overdose death.
In addition to drug trafficking, Delima and Cargo engaged in sex trafficking, acting as the pimps for various women engaged in prostitution in Vermont, New York, and Pennsylvania. Delima and Cargo used the physical and emotional pain of heroin withdrawal as a coercive tool to force women to engage in additional acts of prostitution.
After a coordinated law enforcement operation that involved numerous law enforcement agencies in the states of Vermont, Maine, New Hampshire, and New York, Delima and Cargo were arrested at a residence in Lewiston, Maine. A search of the residence revealed approximately 300 counterfeit credit cards, and various equipment used to manufacture counterfeit credit cards. Law enforcement also obtained a search warrant for Delima’s residence in Copiague, where agents discovered numerous emaciated dogs and apparatus used to train dogs for the purpose of dog fighting.
Acting United States Attorney Eugenia A. P. Cowles commended the investigative efforts of the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Burlington, Vermont Police Department; the Winooski, Vermont Police Department; the South Burlington, Vermont Police Department; the St. Albans, Vermont Police Department; the Federal Bureau of Investigation; the Rutland, Vermont Police Department; the Vermont State Police; the Lewiston, Maine Police Department; the United States Secret Service; and the New York City Police Department, in the successful arrests and prosecutions of Delima, Cargo, and twenty-one other related defendants.
Delima was represented by Brooks McArthur, Esq. and David Williams, Esq. Cargo was represented by Thomas Sherrer, Esq. The United States was represented in the District of Vermont by Assistant U.S. Attorney Jonathan A. Ophardt, and in the District of Maine by Assistant U.S. Attorney Daniel J. Perry.
Muskogee Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that BLAKE ALAN MILLER, age 34, of Muskogee, Oklahoma, pled guilty to POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), punishable by not less than 5 years and not more than 40 years imprisonment, and up to a $5,000,000.00 fine or both.
The Indictment alleged that on or about March 7, 2017, within the Eastern District of Oklahoma, the defendant, BLAKE ALAN MILLER, did knowingly and intentionally possess with intent to distribute in excess of 50 grams of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charge arose from an investigation by the Muskogee Police Department, the United States Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney John David Luton represented the United States.
Metairie Man Pleads Guilty in Methamphetamine-Trafficking ConspiracyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that DWAYNE CLAUSE, age 54, of Metairie, pled guilty yesterday to participating in a methamphetamine-distribution conspiracy throughout the New Orleans area. Specifically, CLAUSE pled guilty to conspiring to distribute and possess with intent to distribute 50 grams or more of a mixture of methamphetamine.
According to court documents, in 2016, codefendant STEVEN LYONS was a New Orleans-based drug trafficker who was receiving parcels of methamphetamine via common mail carriers. CLAUSE would assist LYONS in receiving these packages and distributing the quantities of methamphetamine in the New Orleans area.
For his role in the conspiracy, CLAUSE faces a mandatory minimum sentence of five years in prison, a maximum sentence of 40 years in prison, a maximum fine of $5,000,000 and at least four years of supervised release. U.S. District Judge Ivan L.R. Lemelle set sentencing for CLAUSE on December 20, 2017.
LYONS pled guilty to conspiracy to distribute 500 grams or more of a mixture or substance containing methamphetamine and is scheduled to be sentenced on November 1, 2017.
Acting U.S. Attorney Evans praised the work of the United States Postal Inspection Service, Louisiana State Police, Drug Enforcement Administration New Orleans Division Office, and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Brandon Long is in charge of the prosecution.
Marion County Man Sentenced to 14 Years in Federal Prison for Possession of Child PornographyRead the Press Release
Ocala, Florida – Senior U.S. District Judge Wm. Terrell Hodges today sentenced Jonathan Thomas Pearce (38, Citra) to 14 years in federal prison for possession of child pornography, to be followed by 10 years of supervised release. The Court also ordered him to forfeit a laptop computer, which he had used to facilitate the offense. Pearce pleaded guilty on May 4, 2017.
According to court documents, on January 12, 2017, agents from U.S. Immigration and Customs Enforcement's Homeland Security Investigations executed a federal search warrant at a residence in Citra, where Pearce, a registered sexual predator, resided. During the investigation, agents recovered images of child pornography from Pearce’s laptop computer. The images included toddlers and children between the ages of 3 and 10 years old.
"This predator re-victimized very young children with his crimes," said Special Agent in Charge of HSI Tampa James C. Spero. "This sentence should also serve as a sobering reminder to child predators that HSI will continue to work diligently to hold these criminals accountable for their actions.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations - Orlando Office. It was prosecuted by Assistant United States Attorney Dale R. Campion.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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.justice.gov/psc.
Manassas Man Indicted for Production of Child PornographyRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging a Manassas man with five counts of production of child pornography.
According to the indictment, Dwayne Stinson, 52, coerced minors into engaging in sexually explicit conduct for the purpose of producing pornographic images on at least five separate occasions.
Stinson faces a mandatory minimum of 15 years and a maximum term of 30 years in prison if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; and Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement. Assistant U.S. Attorney Whitney Dougherty Russell and Special Assistant U.S. Attorney James Burke are prosecuting the case.
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 U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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 are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-211 or 1:17-mj-349.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Leuders Man Sentenced to 87 Months in Federal Prison for Child Pornography OffenseRead the Press Release
LUBBOCK, Texas — Steven Michael Turnbow, 33, of Leuders, Texas, was sentenced today by U.S. District Judge Reed C. O’Connor to serve a total of 87 months in federal prison and an eight-year term of supervised release, following his guilty plea to receipt of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Turnbow has been in custody since his arrest in March 2017. He pleaded guilty in May 2017 to one count of receipt of visual depictions of minors engaging in sexually explicit conduct.
According to the factual resume filed in the case, between 2015 through July 30, 2016, Turnbow received, by way of the Internet, several images and videos which depict minors engaged in sexually explicit conduct. Turnbow used the Wi-Fi signal from his neighbor’s house to access the Internet. When he saw that his neighbors’ residence was being searched by law enforcement, he removed the computer hard drive from his desktop computer, which he had been using to search for, and download, images and videos of minors engaged in sexually explicit conduct, and threw it in a river near his residence.
These cases were brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Shackelford County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Steven M. Sucsy prosecuted the case.
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Las Vegas man sentenced for bank robberyRead the Press Release
WHEELING, WEST VIRGINIA – Vance Lawrence Burns, of Las Vegas, Nevada, was sentenced to 48 months incarceration for robbing an Ohio County bank, Acting United States Attorney Betsy Steinfeld Jividen announced.
Burns, age 57, pled guilty to one count of “Bank Robbery” in July 2017. Burns admitted to robbing the United Bank in Bethlehem in April 2014, taking $3,202.00.
Burns was also ordered to pay $3,202 in restitution.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Federal Bureau of Investigation investigated.
Senior U.S. District Judge Frederick. P Stamp. Jr. presided.
Laguna Pueblo Man Sentenced to Prison for Assault by Strangulation ConvictionRead the Press Release
ALBUQUERQUE – Robert T. Maestas, 26, an enrolled member of the Laguna Pueblo who resides in Paguate, N.M., was sentenced this morning in federal court in Albuquerque, N.M., for his conviction on an assault by strangulation charge. Maestas will serve a 33-month prison term followed by three years of supervised release.
Maestas was arrested on March 17, 2017, on a criminal complaint charging him with domestic assault by a habitual offender and assault of an intimate partner by strangulation. According to the complaint, Maestas assaulted the victim on Feb. 10, 2017, in the Laguna Pueblo within Cibola County, N.M., by holding her neck against a car door with his forearm prohibiting her from breathing, and by striking her on the chest and shoulder.
Maestas was indicted on March 28, 2017, and was charged with domestic assault by a habitual offender and assault of an intimate partner by strangulation or suffocating. According to the indictment, Maestas previously was convicted in the Laguna Tribal Court of domestic violence offenses in Dec. 2011 and Jan. 2012.
On June 6, 2017, Maestas pled guilty to Count 2 of the indictment charging him with assaulting an intimate partner by strangulation. In entering the guilty plea, Maestas admitted that on Feb. 10, 2017, after brandishing a shotgun at the victim, he assaulted her by grabbing her throat with his hand and applying pressure to cause pain, striking her rib and chest area, and using his forearm to apply pressure to her neck prohibiting her from breathing. Maestas acknowledged that the victim suffered physical pain as well as bruising and marks to her forearms, neck, chest and shoulder as the result of the assault.
This case was investigated by the Laguna/Acoma Agency of the BIA Office of Justice Services and the Pueblo of Laguna Tribal Police Department. Special Assistant U.S. Attorney Lucy B. Solimon prosecuted the case pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Kingston Man Sentenced for Firearms FelonyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 20, 2017, United States District Court Judge Richard P. Conaboy sentenced LeShawn Burgman, age 35, of Kingston, Pennsylvania, to five years’ imprisonment for possession of firearms in furtherance of drug trafficking.
According to United States Attorney Bruce D. Brandler, Burgman was arrested in October 2016 after he sold MDMA, or “Molly,” and marijuana to confidential informants. Burgman pleaded guilty to a criminal information on June 20, 2017, charging him with possessing three firearms, a Hi-Point semi-automatic, .380 caliber pistol, a Sig Sauer semi-automatic .45 caliber pistol, and a Colt .38 caliber revolver, in furtherance of drug trafficking crimes. All three firearms were recovered during the execution of a search warrant in Burgman’s residence and vehicle.
The case was investigated by the Kingston Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, and was prosecuted by Assistant U.S. Attorney Sean A. Camoni.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state, and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
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Justin Redmon Sentenced to 10 Years in Prison for Participating in a Roane County Methamphetamine Trafficking ConspiracyRead the Press Release
KNOXVILLE, Tenn. – On September 21, 2017, Justin Redmon, 33, of Harriman, Tennessee, was sentenced to serve 10 years in prison by the Honorable Pamela L. Reeves, U.S. District Court Judge, for his role in a large-scale methamphetamine trafficking conspiracy. Upon his release from prison, he will be supervised by the U.S. Probation Office for five years.
In May 2017, Redmon pleaded guilty to the offense described above. According to documents on file with U.S. District Court, between August 2015 and August 2016, he conspired with others to travel between Roane County, Tennessee and Rome, Georgia, to buy large quantities of methamphetamine that were then resold in east Tennessee. Individuals also charged for their roles in this conspiracy who were previously sentenced include: Demetrius Hodges, 46 of Rome, Georgia; Gerald Musson, 54 of Ten Mile, Tennessee; Lamar England, 49 of Rockwood, Tennessee; Amanda Wells, 29 of Harriman, Tennessee; William Colyer, 57 of Rockwood, Tennessee; Anthony Jones, 46 of Rockwood, Tennessee; and, Clarence Laymance, 45 of Wartburg, Tennessee.
The case was referred for federal prosecution by Roane County Sheriff Jack Stockton and was investigated by the Federal Bureau of Investigation and Roane County Sheriff’s Office. Assisting in the investigation were law enforcement personnel from the Harriman, Rockwood and Kingston Police Departments and the Meigs County Sheriff’s Office. Assistant U.S. Attorney Brooklyn Sawyers Belk represented the United States.
U.S. Attorney Nancy Stallard Harr said, “The U.S. Attorney’s Office encourages state and local law enforcement officials to refer cases for federal prosecution in appropriate cases such as this one. Federal law enforcement agencies in the Eastern District of Tennessee are very proud of these partnerships.”
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Justice Department Will Not Challenge Proposed Real Time Payment SystemRead the Press Release
The Justice Department today announced that at this time it will not challenge a proposal by The Clearing House Payments Company LLC (“TCH”), a joint venture of 24 U.S. banks, to create and operate a new payment system that will enable the real-time transfer of funds between depository institutions, at any time of the day, on any day of the week. The department’s position was stated in a business review letter to counsel for TCH from Acting Assistant Attorney General for the Antitrust Division Andrew C. Finch.
According to representations made by TCH, it will create and operate the Real Time Payment system (“RTP”)—a new payment rail that, for the first time in the U.S., will provide for real-time funds transfers between depository institutions—and in turn, RTP will allow depository institutions to enable faster fund transfers for their end-user customers. According to TCH, RTP will not interfere with the continued use and operation of existing payment rails, including automated clearing house, wire, and check clearing houses. RTP will also incorporate additional features that existing payment rails do not offer, such as enhanced messaging capabilities.
The department has reviewed TCH’s currently-proposed rules and conduct for RTP. Based on the information submitted and representations made by TCH, the department has no present intention to challenge the operation of TCH’s proposed new payment rail in light of the possibility that introducing a new, faster payment rail would benefit consumers and competition.
Under the department’s business review procedure, an organization may submit a proposed action to the Antitrust Division and receive a statement as to whether the division currently intends to challenge the action under the antitrust laws based on the information provided. The Department reserves the right to challenge the proposed action under the antitrust laws if the actual operation of the proposed conduct proves to be anticompetitive in purpose or effect.
Copies of the business review request and the department’s response are available on the Antitrust Division’s website at https://www.justice.gov/atr/business-review-letters-and-request-letters, as well as in a file maintained by the Antitrust Documents Group of the Antitrust Division. After a 30-day waiting period, any documents supporting the business review will be added to the file, unless a basis for their exclusion for reasons of confidentiality has been established under the business review procedure. Supporting documents in the file will be maintained for a period of one year, and copies will be available upon request to the FOIA/Privacy Act Unit, Antitrust Documents Group at [email protected].
Jersey City Police Officer Admits Fraud Involving Off-Duty Work AssignmentsRead the Press Release
NEWARK, N.J. – A Jersey City, New Jersey, police officer today admitted defrauding Jersey City by obtaining compensation for off-duty work that he did not perform, Acting U.S. Attorney William E. Fitzpatrick announced.
David Ortmann, 53, of Carlstadt, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with one count of conspiracy to commit fraud.
According to documents filed in this case and statements made in court:
Private contractors and utility companies sometimes needed the services of off-duty Jersey City police officers for certain projects, including work in Jersey City that could obstruct the flow of traffic. Ortmann was an officer who was eligible to perform off-duty work.
From July 2015 through May 2016, Ortmann conspired with a Jersey City officer who was authorized to assign off-duty work. The officer – with Ortmann’s knowledge and consent – submitted phony vouchers to Jersey City indicating that Ortmann had completed certain off-duty assignments. As a result, Ortmann was compensated for work he never performed.
Ortmann faces a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Pursuant to the plea agreement, Ortmann must forfeit the $12,617 he made as part of the conspiracy. Sentencing is set for Jan. 3, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy A. Gallagher in Newark, with the investigation.
The Jersey City Police Department is cooperating with the investigation.
The government is represented by Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Michael P. Koribanics Esq., Clifton, New Jersey
Jefferson County man sentenced for illegally possessing firearmsRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Ranson, West Virginia man was sentenced today to 37 months incarceration for illegal possession of a firearm, Acting United States Attorney Betsy Steinfeld Jividen announced.
Jeremiah David Wallace, age 29, pled guilty to one count of “Felon in Possession of Firearm” in June 2017. Wallace admitted to possession of multiple firearms in Berkeley County in November 2015. Wallace, having been convicted of a felony in Frederick County, Virginia, is prohibited from possessing firearms.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Ranson Police Department investigated.
Chief U.S. District Judge Gina M. Groh presided.Jefferson County man sentenced for illegally possessing a firearmRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Ranson, West Virginia man was sentenced today to 57 months incarceration for illegal possession of a firearm, Acting United States Attorney Betsy Steinfeld Jividen announced.
Chad Aric Berry, age 29, pled guilty to one count of “Unlawful Possession of a Firearm” in June 2017. Berry, having previously been convicted of a felony in the Circuit Court of Jefferson County, admitted to possessing a .380 caliber pistol in Jefferson County September 2015.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Chief U.S. District Judge Gina M. Groh presided.Horsham, PA Man Charged with Tax EvasionRead the Press Release
David Foster, 52, of Horsham, PA was charged today by Information with one count of tax evasion and one count of failing to pay federal taxes, announced Acting United States Attorney Louis D. Lappen.
If convicted, Foster faces a maximum possible sentence of 10 years imprisonment, three years supervised release, a $500,000 fine, and a $200 special assessment.
The case was investigated by the Internal Revenue Service, and is being prosecuted by Assistant United States Attorney Paul L. Gray.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Henryetta Woman Pleads Guilty to Credit Union Theft, Embezzlement, and MisapplicationRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that CAROL LYNN BEEN, age 59, of Henryetta, Oklahoma, pled guilty to CREDIT UNION THEFT, EMBEZZLEMENT AND MISAPPLICATION, in violation of Title 18, United States Code, Section 657, punishable by not more than 30 years imprisonment, and up to a $1,000,000.00 fine or both.
The Indictment alleged that from in or about 2014, the exact date unknown to the Grand Jury, until on or about June 18, 2017, in the Eastern District of Oklahoma, defendant CAROL LYNN BEEN, being an officer, director, agent, or employee of, or connected in a capacity with, OSU-IT Federal Credit Union of Okmulgee, Oklahoma, a credit union whose deposits are insured by the National Credit Union Administration, with intent to injure and defraud the said OSU-IT Federal Credit Union of Okmulgee, Oklahoma, willfully misapplied, embezzled, abstracted, and purloined more than $1,000.00 of the moneys, funds, assets or securities entrusted to the custody or care of OSU-IT Federal Credit Union of Okmulgee, Oklahoma, in that the defendant withdrew cash from the vault of the credit union and misapplied, embezzled, abstracted and purloined the funds.
The charge arose from an investigation by the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Acting United States Attorney Douglas A. Horn represented the United States.
Helena Man Sentenced to 10 Years in Prison for Possessing Child PornographyRead the Press Release
MISSOULA – Domenick James Howard, 29, formerly of Helena, Montana, was sentenced today in federal court for possession of child pornography. On May 31, 2017, Howard entered a plea of guilty to the charge. U.S. District Court Senior Judge Charles C. Lovell sentenced Howard to 120 months in prison. Following his release, Howard will be subject to lifetime supervised release. Howard was also required to forfeit two computers and an external storage device that he used to commit the crime.
In the court filings, Assistant U.S. Attorney Cyndee L. Peterson stated that Howard had previously been convicted of a sex offense against a child. Specifically, in November 2012, Howard was convicted of felony sexual assault for committing a hands-on sex offense against a 6-year old in Ravalli County. Because of that conviction, Howard was sentenced to the Montana Department of Corrections for 20 years, with 15 of those years suspended. In December 2014, Howard was conditionally released to the community and was being supervised by the Montana Probation and Parole. On April 13, 2016, Howard was arrested for probation violations and his electronic devices were seized and searched. An FBI Forensic Examiner examined Howard’s devices, and located image and video files depicting children engaged in sexually explicit conduct on Howard’s desktop computer, laptop computer, and a thumb drive. The United States said that at least one file depicted a female under the age of 12 involved in a sexual act with an adult male.
The investigation was a cooperative effort between the Helena Police Department, the Montana Internet Crimes Against Children (ICAC) Task Force, and the Federal Bureau of Investigation.
Hampshire County woman sentenced for heroin distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Bonnie Bishop of Bloomery, West Virginia, was sentenced today to 36 months incarceration for heroin distribution, Acting United States Attorney Betsy Steinfeld Jividen announced.
Bishop, age 31, pled guilty to one count of “Conspiracy to Distribute a Controlled Substance” in May 2017. Bishop admitted to conspiring with others to distribute heroin in Hampshire County in July 2015.
Assistant U.S. Attorney Anna Z. Krasinski prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Hampshire County man sentenced for possessing child pornographyRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Shanks, West Virginia man was sentenced today to 51 months incarceration for possession of child pornography, Acting United States Attorney Betsy Steinfeld Jividen announced.
Allen Newcomb, age 58, pled guilty to one count of “Possession of Child Pornography” in May 2017. Newcomb admitted to possessing child pornography containing children under the age of 12 in June 2016 in Hampshire County.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Office of Homeland Security investigated.
Chief U.S. District Judge Gina M. Groh presided.
Hampshire County man admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – An Augusta, West Virginia man pled guilty today to a firearms charge, Acting United States Attorney Betsy Steinfeld Jividen announced.
James Albert Slonaker, age 48, pled guilty to one count of “Unlawful Possession of Firearms.” Slonaker, having previously been convicted in the Circuit Court of Frederick County, Virginia, admitted to having a .22 caliber revolver, a .357 magnum revolver, two .22 caliber rifles, a .30-06 caliber rifle, and a Rossi firearm frame/receiver. The crime occurred in January 2017 in Hampshire County.
Slonaker faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Lara K. Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, West Virginia Probation, and West Virginia State Police investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Global Telecommunications Company and Its Subsidiary to Pay More Than $965 Million in Penalties in Massive Bribery Scheme Involving Uzbek OfficialRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York (“SDNY”), Kenneth A. Blanco, the Acting Assistant Attorney General for the Criminal Division of the Department of Justice (“DOJ”), Don Fort, Chief of the Criminal Investigation Division, Internal Revenue Service (“IRS-CI”), and Patrick J. Lechleitner, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”) Washington, D.C., Field Office, announced today the filing of criminal charges against Telia Company AB (“Telia”), a multinational telecommunications company headquartered in Sweden, whose securities traded publicly in New York from 2002 until 2007, and its Uzbek subsidiary, Coscom LLC (“Coscom”), for conspiring to violate the Foreign Corrupt Practices Act (“FCPA”) by paying more than $331 million in bribes to a government official in Uzbekistan.
Mr. Kim also announced that in connection with the filed charges, Coscom pled guilty today before United States District Judge George B. Daniels, and SDNY and DOJ entered into a deferred prosecution agreement (“DPA”) with Telia. Pursuant to the DPA, Telia admitted to participating in the charged conspiracy. Telia will pay a total criminal penalty of $274,603,972 to the United States, which includes a $500,000 criminal fine and $40 million in criminal forfeiture that Telia agreed to pay on behalf of Coscom. Telia also agreed to implement rigorous internal controls and cooperate fully with the Government’s ongoing investigation, including its investigation of individuals.
In related proceedings, Telia reached a settlement with the U.S. Securities and Exchange Commission (“SEC”) and the Public Prosecution Service of the Netherlands (“PPS”). Under the terms of its civil resolution with the SEC, Telia agreed to pay $457,169,977 in disgorgement of profits and prejudgment interest. Finally, Telia agreed to pay the PPS a criminal penalty of $274 million, which, together with the criminal penalty paid to the United States, yieldstotal criminal penalties of $548,603,972. Because the SEC agreed to credit the $40 million paid in criminal forfeiture against the civil settlement amount, the total criminal and regulatory penalties to be paid by Telia is $965,773,949.
Acting U.S. Attorney Joon H. Kim said: “Today, we announce one of the largest criminal corporate bribery and corruption resolutions ever, with penalties totaling just under a billion dollars. Swedish telecom company Telia and its Uzbek subsidiary Coscom have admitted to paying, over many years, more than $331 million in bribes to an Uzbek government official. Telia, whose securities traded publicly in New York, corruptly built a lucrative telecommunications business in Uzbekistan, using bribe payments wired around the world through accounts here in New York City. If your securities trade on our exchanges and you use our banks to move ill-gotten money, then you have to abide by our country’s laws. Telia and Coscom refused to do so, and they have been held accountable in Manhattan federal court today.”
Acting Assistant Attorney General Kenneth A. Blanco said: “This resolution underscores the Department’s continued and unwavering commitment to robust FCPA and white-collar criminal enforcement. It also demonstrates the Department’s cooperative posture with its foreign counterparts to stamp out international corruption and to reach fair, appropriate and coordinated resolutions. Foreign and domestic companies that pay bribes put honest companies at a disadvantage and distort the free and fair market and the rule of law. Today’s resolution reflects the significant efforts of law enforcement, the Criminal Division and the U.S. Attorney’s Office for the Southern District of New York to bring such companies to justice, and to maintain a competitive and level playing field for companies to do business, create jobs and thrive.”
IRS-CI Chief Don Fort said: “Today marks the second resolution of proceedings against corporate entities who have engaged in a global bribery scheme of government officials. It also further demonstrates the dedication we have to identifying illegal financial transactions being used for bribery in the international community. It is important that the global economy remain on a fair playing field and IRS-CI will remain committed in our efforts to dismantle these kinds of corrupt financial schemes.”
HSI Special Agent in Charge Patrick J. Lechleitner said: “Today’s resolution marks a win against a foreign corruption scheme where millions of dollars in bribery funds were paid to Uzbekistan officials and laundered through the U.S. financial system. HSI, working hand in hand with our partners at IRS Criminal Investigation, leveled the playing field for publicly traded companies by exposing these corrupt practices and helped the U.S. government collect nearly $275 million in criminal penalties.”
According to the allegations contained in the criminal Informations, which was filed today in Manhattan federal court, the statement of facts set forth in the DPA, and other publicly available information:
Between approximately 2007 and 2012, Telia and Coscom, through various executives, employees, and affiliated entities, paid more than $331 million in bribes to illegally obtain telecommunications business in Uzbekistan. The bribes were paid to an Uzbek government official who was a close relative of a high-ranking government official and who exercised influence over Uzbek telecommunications industry regulators. Telia and Coscom structured and concealed the bribes through various payments to a shell company that certain Telia and Coscom management knew was beneficially owned by the foreign official. The bribes were paid on multiple occasions over a period of approximately five years so that Telia could enter the Uzbek market and Coscom could gain valuable telecom assets and continue operating in Uzbekistan.
Under the direction and control of the Uzbek government official, more than $331 million in bribery proceeds were laundered through accounts held in various countries around the world. The illicit funds were transmitted through financial institutions in the Southern District of New York before they were deposited into accounts in those countries.
This resolution, reached in coordination with the SEC and authorities in the Netherlands, marks the second such resolution by a major international telecommunciations provider for bribery in Uzbekistan. On February 18, 2016, Amsterdam-based VimpelCom Limited and its Uzbek subsidiary, Unitel LLC, also entered into resolutions with the United States and admitted to a conspiracy to make more than $114 million in bribery payments to the same Uzbek government official between 2006 and 2012. The investigation has thus far yielded a combined total of more than $1.76 billion in global fines and disgorgement, including more than $500 million in criminal penalties to the United States. In related actions, the United States has also filed civil complaints seeking the forfeiture of more than $850 million held in bank accounts in Switzerland, Belgium, Luxembourg, and Ireland, which constitute bribe payments made by VimpelCom, Telia, and a third telecommunications company to the Uzbek official, or funds involved in the laundering of those corrupt payments.
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Coscom was charged with, and pled guilty to, one count of conspiring to violate the anti-bribery provisions of the FCPA. Telia was charged in a one-count Information with conspiracy to violate the anti-bribery provisions of the FCPA.
Mr. Kim thanked the Fraud Section of the DOJ’s Criminal Division for their collaboration, and praised the efforts of IRS-CI, the IRS Global Illicit Financial Team, and HSI in the investigation. He also thanked the SEC’s Division of Enforcement for its significant assistance and cooperation in the investigation. Mr. Kim also thanked law enforcement colleagues within the PPS, the Swedish Prosecution Authority, and the Office of the Attorney General in Switzerland, as well as law enforcement colleagues in Austria, Belgium, Cyprus, France, Ireland, the Isle of Man, Latvia, Luxembourg, Norway, Switzerland, the Isle of Man, and the United Kingdom. Mr. Kim also thanked the Department of Justice’s Office of International Affairs for its significant assistance in this matter. The SEC referred the matter to the DOJ and also provided extensive cooperation and assistance.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit and the FCPA Unit of the Fraud Section of DOJ’s Criminal Division. Assistant U.S. Attorney Edward A. Imperatore, Senior Litigation Counsel Nicola Mrazek, and Trial Attorney Ephraim Wernick are in charge of the prosecution. MLARS Trial Attorney Michael Khoo is prosecuting the forfeiture case with substantial assistance from the Fraud Section and former MLARS Trial Attorney Marie M. Dalton, now an Assistant U.S. Attorney in the Western District of Washington.
Fort Lauderdale Police Department Employee Charged with Stealing from the Police DepartmentRead the Press Release
Gerard Anthony Brady, a Fort Lauderdale Police Department employee has been charged in federal court with stealing from his employer.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Rick Maglione, Chief, Fort Lauderdale Police Department, made the announcement.
Brady, 34, appeared in federal court on September 20, 2017, after being charged by a criminal Information with theft concerning programs receiving federal funds, in violation of Title 18, United States Code, Section 666(a)(1)(A). If convicted, Brady faces a statutory maximum sentence of ten years in prison.
According to court records, including the Information, Brady worked at the Fort Lauderdale Police Department as the Police Forfeiture Coordinator until his termination in March 2017. As Police Forfeiture Coordinator, Brady’s duties at the Police Department included storing and caring for confiscated and seized property, coordinating the deposit of confiscated and seized monies, and overseeing vessels, planes, vehicles, and other property seized by the Fort Lauderdale Police Department. According to the Information, in 2016, while working as an employee, Brady stole in excess of $5,000 from the Fort Lauderdale Police Department.
Benjamin G. Greenberg commended the investigative efforts of IRS-CI and the Fort Lauderdale Police Department, in relation to this matter. This case is being prosecuted by Assistant U.S. Attorney J. Mackenzie Duane.
An Information is merely an accusation and a defendant is presumed innocent unless and until proven guilty 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.
Former President of UAW Local 2419 Danville Sentenced to Prison for Embezzling Union FundsRead the Press Release
PEORIA, Ill. – A former president of United Auto Workers Local 2419, in Danville, Ill., Bob Buford, was sentenced today to a term of 21 months in federal prison for mail fraud related to embezzling union funds. Chief U.S. District Judge James E. Shadid sentenced Buford, 54, of the 100 block of Shasta Drive, Danville, Ill., in Peoria. Judge Shadid ordered Buford to pay restitution in the amount of $129,723. Buford was allowed to self-report on Dec. 5, 2017, to the federal Bureau of Prisons to begin serving his sentence. He was ordered to serve a three-year term of supervised release following his release from prison. Buford had pleaded guilty to the mail fraud charge on March 9, 2017.
According to court documents, Buford served as the president of UAW Local 2419 in Danville from January 2007 until October 2011, while he was employed as a welder at Freight Car America. During that time, the union regularly collected dues and fees from its members’ paychecks and deposited those funds into accounts maintained by Buford. While he served as president of the union, Buford made cash withdrawals and issued cashier’s checks from the accounts for his own personal benefit. Buford then covered up his scheme by mailing false annual reports to the U. S. Department of Labor. The false reports underreported the amount of dues and fees collected from union members, inflated the balance of the union’s accounts, and omitted his personal withdrawals from the accounts.
The investigation was conducted by the U.S. Department of Labor, Office of Inspector General. The case was prosecuted by Supervisory Assistant U.S. Attorney Eugene L. Miller.
Former Omega Protein manager pleads guilty to polluting Vermilion RiverRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a New Orleans man pleaded guilty Tuesday to directing employees to discharge a pollutant into a canal that feeds the Vermilion River.
Aldes K. “Al” Vidrine III, 52, of New Orleans, La., pleaded guilty before U.S. Magistrate Judge Carol Whitehurst on one count of unlawful discharge of a pollutant into a water of the United States. According to the guilty plea, Vidrine, who worked as a manager at the Abbeville Omega Protein Inc. plant, directed employees on February 1, 2016 to place a hose in a treatment pond and drain process water from the plant’s treatment pond into a canal that emptied into the Vermilion River.
Vidrine faces up to one year in prison, one year of supervised release and a fine of not less than $2,500 or more than $25,000 per day of the violation. The court set a January 11, 2018 sentencing date.
The criminal investigation divisions of the U.S. Environmental Protection Agency and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Robert C. Abendroth is prosecuting the case.
Former Executive Director of Birmingham Volunteer Lawyer Program Sentenced for Misapplication of Federal Program FundsRead the Press Release
NASHVILLE, Tenn. – September 21 2017 - Kelli Hogue Mauro, 48, of Birmingham, Alabama, and former Executive Director of the Birmingham Volunteer Lawyers Program, was sentenced yesterday to five years of probation and five months of home confinement for misapplication of property worth at least $5,000 from a federal program, announced U.S. Attorney Donald Cochran of the Middle District of Tennessee.
Mauro also was ordered to pay restitution in the amount of $10,228.32 to the Birmingham Volunteer Lawyers Program and was fined $10,000. The Court also imposed the following requirements: Mauro must complete a financial responsibility program under the supervision of the United States Probation Office and report back to the District Court Judge after completion of that program; Mauro must write an open letter of apology to the Birmingham Bar Association, the Birmingham Volunteer Lawyers Program and the Cumberland School of Law; and Mauro must complete 20 hours of community service work.
In pronouncing sentence, Chief U.S. District Court Judge Karon O. Bowdre stated, “This crime was one I can only rationalize as being one of greed.” Judge Bowdre observed that Mauro’s license to practice law had been suspended and characterized Mauro’s offense as “a sin against the profession as a whole.”
The criminal information, filed on April 19, 2017, charged that between January 1, 2012 and August 31, 2012, Mauro misappropriated property owned by and under the control of the Birmingham Volunteer Lawyers Program, an organization that received benefits in excess of $10,000 from grants made by the federal Legal Services Corporation through Legal Services Alabama.
According to the court documents, Mauro made approximately 100 transactions that benefitted herself and her family for a total loss to the Birmingham Volunteer Lawyers Program of $35,116. Court documents also reflect that Mauro previously repaid or returned property valued at $21,145 and that Mauro was credited with $3,742.68 for expenses she incurred on behalf of the Birmingham Volunteer Lawyers Program that were not previously reimbursed by the program. Mauro expressed her intention to immediately pay the $10,228.32 in restitution owed to the Birmingham Volunteer Lawyers Program to the District Court Clerk before leaving the courthouse.
The criminal information was filed in the United States District Court for the Northern District of Alabama by the Office of the United States Attorney for the Middle District of Tennessee. The Office of the United States Attorney for the Northern District of Alabama was recused from the matter to avoid any appearance of partiality in the prosecution of Mauro.
This case was investigated by the Office of Inspector General for the Legal Service Corporation. Assistant U.S. Attorney Byron M. Jones of the Middle District of Tennessee prosecuted the case.
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Former Executive Director of Birmingham Volunteer Lawyer Program Sentenced for Misapplication of Federal Program FundsRead the Press Release
Kelli Hogue Mauro, 48, of Birmingham, Alabama, and former Executive Director of the Birmingham Volunteer Lawyers Program, was sentenced yesterday to five years of probation and five months of home confinement for misapplication of property worth at least $5,000 from a federal program, announced U.S. Attorney Donald Cochran of the Middle District of Tennessee.
Mauro also was ordered to pay restitution in the amount of $10,228.32 to the Birmingham Volunteer Lawyers Program and was fined $10,000. The Court also imposed the following requirements: Mauro must complete a financial responsibility program under the supervision of the United States Probation Office and report back to the District Court Judge after completion of that program; Mauro must write an open letter of apology to the Birmingham Bar Association, the Birmingham Volunteer Lawyers Program and the Cumberland School of Law; and Mauro must complete 20 hours of community service work.
In pronouncing sentence, Chief U.S. District Court Judge Karon O. Bowdre stated, “This crime was one I can only rationalize as being one of greed.” Judge Bowdre observed that Mauro’s license to practice law had been suspended and characterized Mauro’s offense as “a sin against the profession as a whole.”
The criminal information, filed on April 19, 2017, charged that between January 1, 2012 and August 31, 2012, Mauro misappropriated property owned by and under the control of the Birmingham Volunteer Lawyers Program, an organization that received benefits in excess of $10,000 from grants made by the federal Legal Services Corporation through Legal Services Alabama.
According to the court documents, Mauro made approximately 100 transactions that benefitted herself and her family for a total loss to the Birmingham Volunteer Lawyers Program of $35,116. Court documents also reflect that Mauro previously repaid or returned property valued at $21,145 and that Mauro was credited with $3,742.68 for expenses she incurred on behalf of the Birmingham Volunteer Lawyers Program that were not previously reimbursed by the program. Mauro expressed her intention to immediately pay the $10,228.32 in restitution owed to the Birmingham Volunteer Lawyers Program to the District Court Clerk before leaving the courthouse.
The criminal information was filed in the United States District Court for the Northern District of Alabama by the Office of the United States Attorney for the Middle District of Tennessee. The Office of the United States Attorney for the Northern District of Alabama was recused from the matter to avoid any appearance of partiality in the prosecution of Mauro.
This case was investigated by the Office of Inspector General for the Legal Service Corporation. Assistant U.S. Attorney Byron M. Jones of the Middle District of Tennessee prosecuted the case.
Final Defendant Sentenced in Poly Drug ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – A 28-year-old Mission man has been ordered to federal prison for 10 years following his conviction in a cocaine and marijuana drug trafficking conspiracy, announced Acting U.S. Attorney Abe Martinez. Bryan Mendoza, the last of five convicted in the conspiracy, pleaded guilty Dec. 28, 2016.
Today, U.S. District Judge Nelva Gonzales Ramos ordered he serve 120 months of imprisonment immediately followed by five years of supervised release.
The conspiracy ran from February 2009 to June 22, 2016, and included the seizure of more than 4,400 kilograms of marijuana and 23 kilograms of cocaine. Mendoza assisted the drug trafficking conspiracy by arranging the purchase of vehicles and hiring drivers to transport drugs from South Texas to other states.
Previously, co-defendants Cynthia Valencia, 25, a U.S. citizen who resided in Pharr and Reynosa, Tamaulipas, Mexico; and Mexican citizens Mario Alberto Medina-Mendoza, 30, Ismael Silva-Cortez, 37, and Alan Castillo, 38, had pleaded guilty to a related money laundering conspiracy. Castillo, who oversaw the movement of drug proceeds from other areas of the United States to South Texas, received a sentence of 70 months imprisonment. He primarily used the “old school” method of bulk cash smuggling in which he concealed large sums of cash in secret compartments within the vehicles he used to transport the drug proceeds.
Valencia, Silva-Cortez and Medina-Mendoza allowed their bank accounts to be used to funnel or launder approximately $51,710, $125,075 and $77,250 respectively, in drug proceeds. Silva-Cortez received a 37-month sentence, while Valencia and Medina-Mendoza were ordered to serve respective sentences of 18 and 33 months.
The Drug Enforcement Administration, IRS - Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives and Customs and Border Protection conducted the joint investigation. Assistant U.S. Attorney Kenneth Cusick is prosecuting the case.
Federal Jury Convicts New Orleans Man on Drug and Weapons ChargesRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that a federal jury convicted ROBERT RICKS, age 36, of New Orleans, for his role in conspiring to distribute crack cocaine and heroin, possessing heroin and crack with the intent to distribute, possessing a gun in furtherance of his drug-trafficking activities, and being a felon in possession of a firearm. Following a two-day trial, the jury found RICKS guilty of all five counts with which he was charged.
According to the evidence presented at trial, RICKS conspired with several other individuals to distribute crack cocaine and heroin in the fall of 2014 and early 2015. The case began when the New Orleans Police Department (NOPD) received a CrimeStoppers tip about RICKS’ drug-trafficking activity in early February 2015. NOPD officers initiated surveillance and observed RICKS dealing from a house at the corner of Belleville and De Armas streets. They then secured a search warrant for the house where RICKS lived. NOPD found heroin, crack cocaine, a loaded pistol, scales, $3,600 in cash, and various other paraphernalia associated with drug trafficking. RICKS was arrested on state charges following the search. The state charges were ultimately adopted for federal prosecution after RICKS became a target in a parallel Bureau of Alcohol, Tobacco, Firearms, and Explosives’ investigation focused in Algiers.
On the drug charges, RICKS faces a minimum sentence of ten years of imprisonment and a maximum of life imprisonment, a maximum $10,000,000 fine, and at least five years of supervised release. RICKS also faces a mandatory consecutive five-year sentence for possessing a gun in furtherance of his drug-trafficking activities. Sentencing before Judge Carl Barbier is scheduled for January 11, 2018.
Acting U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. Assistant United States Attorneys David Haller and Myles Ranier were responsible for the prosecution.
Federal Jury Convicts Georgia Man for Compromising U.S. Army Computer ProgramRead the Press Release
GREENVILLE – John Stuart Bruce, United States Attorney for the Eastern District of North Carolina, announces that on September 20, 2017 in federal court, MITTESH DAS, a 48-year-old male resident of Atlanta, Georgia, was convicted following a three-day trial before Senior United States District Judge Malcom J. Howard. The jury found DAS guilty of knowingly transmitting malicious code with the intent to cause damage to a U.S. Army computer used in furtherance of national security.
A Grand Jury in the Eastern District of North Carolina indicted DAS on April 5, 2016 for conduct that occurred in 2014.
In November of 2014, a national level computer program responsible for handling pay and personnel actions for nearly 200,000 U.S. Army reservists began experiencing unusual issues. Five of the servers associated with the program are located at Ft. Bragg, North Carolina. Standard internal troubleshooting uncovered suspicious code that led to an investigation by the Army’s Criminal Investigation Command (CID). The investigation revealed that in 2012, due to DAS’s vast experience with the system, the contracted company responsible for oversight of the computer system had subcontracted with DAS to assume lead responsibility for the system. However, the contract was subsequently re-bid and awarded to a different company with a hand-over date of November 24, 2014. The investigation revealed that DAS inserted malicious code - commonly referred to as a “logic bomb” – in the days leading up to the contract changeover and that the progressively destructive nature of this code began taking effect the day after the changeover.
The damage had to be corrected through removal of the malicious code, restoration of all information and features, and a thorough review of the entire system to locate any further malicious code, amounting to a total labor cost to the U.S. Army of approximately $2.6 million.
“Cyber-sabotage is not a ‘prank.’ It is a very serious crime with real victims and real costs. In this case, the crime cost taxpayers $2.6 million. Thanks to great work by the investigators and prosecutor, Mr. Das is being held accountable for his criminal acts,” said John Stuart Bruce, United States Attorney for the Eastern District of North Carolina.
"We are very pleased with today's guilty verdict and will do everything in our power to help bring to justice those who attempt to sabotage or disrupt U.S. Army operations in the defense of our nation," said Director Daniel Andrews of the Computer Crime Investigative Unit, U.S. Army Criminal Investigation Command. "Let this be a warning to anyone who thinks they can commit a crime in cyberspace and not get caught. We have highly trained and specialized investigators who will work around the clock to uncover the truth and preserve Army readiness."
The case was investigated by U.S. Army Criminal Investigation Command, which received assistance from the Department of Homeland Security and the Johns Creek, Georgia, Police Department. Assistant United States Attorney Jason Kellhofer represented the government in this case.
Federal Grand Jury Indicts 3 Hartford Men on Gun and Drug OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford returned three indictments yesterday charging three Hartford residents with various drug and firearm offenses.
A three-count indictment alleges that, on September 7, 2017, DAQUAN PATTERSON-GREENE, 22, possessed a Glock 22 .45 caliber semi-automatic pistol, as well as cocaine, ecstasy and marijuana with the intent to distribute these drugs. Prior to that date, PATTERSON-GREEN had sustained felony convictions for first-degree assault and possession of a pistol without a permit.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
The indictment charges PATTERSON-GREEN with one count of possession with intent to distribute cocaine, MDMA (“ecstasy”) and marijuana, an offense that carries a maximum term of imprisonment of 20 years; one count of possession of a firearm in furtherance of a drug trafficking crime, and offense that carries a mandatory consecutive sentence of five years of imprisonment, and one count of unlawful possession of a firearm by a convicted felon, an offense that carries a maximum term of imprisonment of 10 years.
PATTERSON-GREEN has been detained since his arrest on a federal criminal complaint on September 7.
A one-count indictment charges TYSHAWN COLEMAN, 28, with unlawful possession of ammunition by a convicted felon.
The indictment alleges that, on August 5, 2017, COLEMAN possessed a .45 caliber live round. Prior to that date, COLEMAN had sustained two felony convictions for conspiracy to commit murder, three felony convictions for accessory to first-degree assault, one felony conviction for first degree assault, and one felony conviction for sale of a controlled substance.
If convicted of the charge, COLEMAN faces a maximum term of imprisonment of 10 years.
COLEMAN has been detained since his arrest on a federal criminal complaint on August 5.
A one-count indictment charges WILLIAM MARRERO-BENITEZ, 24, with possession of heroin with intent to distribute.
The indictment alleges that, on December 14, 2016, MARRERO-BENITEZ possessed heroin that he intended to distribute. At the time of the alleged offense, MARRERO-BENITEZ was serving a term of supervised release from a prior federal conviction.
If convicted, MARRERO-BENITEZ faces a maximum term of imprisonment of 20 years on the heroin distribution offenses, and an additional term of imprisonment if he is found to have violated the conditions of his federal supervised release.
MARRERO-BENITEZ has been detained in state custody since his arrest by Hartford Police on December 14.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
These cases are being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI’s Northern Connecticut Violent Crimes Task Force, and the Hartford Police Department. The cases are being prosecuted by Assistant U.S. Attorney Michael J. Gustafson and Special Assistant U.S. Attorney John F. Fahey of the Hartford State’s Attorney’s Office.
Federal Correctional Officer Indicted for Taking BribesRead the Press Release
Ocala, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of an indictment charging Albert Larry Harris, Jr. (27, Lake County) with two counts of receipt of a bribe by a public official. If convicted, he faces a maximum penalty of 15 years in federal prison on each count.
According to court documents, Harris works as a correctional officer in a penitentiary at the Federal Correctional Complex in Coleman, Florida. In June 2017, he began providing inmates at the prison with contraband (drugs and tobacco products) in exchange for large cash payments. On August 22, 2017, Harris met with an undercover federal agent in Ocala and accepted a $5,000 bribe payment and 200 Suboxone strips for delivery to an inmate. Following the exchange, he was arrested.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Department of Justice - Office of the Inspector General and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Elmira Man Sentenced for Threatening WitnessRead 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 Isaiah L. McLaurin, 28, of Elmira, NY, who was convicted of witness tampering, was sentenced to 57 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Brett A. Harvey, who is handling the case, stated that on May 17, 2017, the defendant made threats against an individual that he believed was cooperating in a drug investigation in the Elmira area. Such threats were made with the intent to prevent that individual from testifying and providing information to law enforcement authorities about the drug trafficking organization.
On May 16, 2017, four individuals, Robert Ian Thatcher, Maximillian Sams, Dwayne Banks, and Carlito Rios, Jr., were arrested by the DEA, ATF, Elmira Police Department, and other state law enforcement agencies and charged in a federal criminal complaint with various drug trafficking and firearms offenses including conspiracy to possess with intent to distribute, and to distribute, quantities of furanyl fentanyl, a Schedule I controlled substance, and U-47700, a Schedule I controlled substance. The charges alleged that such conduct occurred between November 29, 2016, and May 16, 2017.
On May 16, 2017, an article about the arrests and investigation was published on the website for the Star Gazette, the local paper in Elmira. The article was entitled, “Four face federal charges in Elmira drug investigation.” A digital copy of the complaint and supporting affidavit was also published on the website with the article. In the supporting affidavit, the DEA referenced certain confidential sources by anonymous designations (including “CC-1” and “CS-2”).
On or about May 17, 2017, a member of law enforcement observed a series of public Facebook comments related to the investigation described in the article on a Facebook page bearing the user name “Isaiah Mclaurin” and a profile picture of Isaiah L. McLaurin. The posts consisted of the following:
Isaiah Mclaurin
Facts somebody better have this N**** in protective custody cause if he thinks he can just pick his daughter up from school and everything’s gonna be ok. He got it coming
In those Facebook posts, McLaurin publicly identified the individual – referred to as Individual A – that he believed to be one of the confidential sources referenced in the complaint against Thatcher, Sams, Banks, and Rios, and threatened both Individual A and Individual A’s child.The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the New York State Police, under the direction of Major Richard Allen; the Elmira Police Department, under the direction of Chief Joseph Kane; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division; and the Pennsylvania State Police, under the direction of Commissioner Colonel Tyree C. Blocker.
Elmira Man Charged with 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 that Taylor T. Sullivan, 20, of Elmira, NY, was arrested and charged by criminal complaint with possession of child pornography. The charge carries a maximum sentence of 20 years in prison, and a fine of $250,000.
Assistant U.S. Attorney John J. Field, who handled the case, stated that according to the complaint, in March 2017, the National Center for Missing and Exploited Children (NCMEC) received a report from the social networking website Skout.com that child pornography was received by the defendant on its site. The report also indicated that Sullivan uploaded several images of different juvenile females engaging in sexual acts with animals.
A search of the defendant’s phone revealed numerous files containing child pornography and videos, including a video of a young naked female (Victim1) known to defendant. During an interview with New York State Police Investigators, Victim 1 indicated she was unaware that she was being recorded. In total, the phone contained approximately 639 images and 58 videos of child pornography.
The complaint is the result of an investigation by the New York State Police, under the direction of Major Richard Allen, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
The fact that a defendant has been charged with a crime is merely an accusation, and the defendants are presumed innocent until and unless proven guilty.
Donald Q. Cochran Sworn in as United States AttorneyRead the Press Release
Donald Q. Cochran was sworn in today as the United States Attorney for the Middle District of Tennessee. In a brief ceremony, Chief U.S. District Judge Waverly Crenshaw, Jr., administered the oath of office, making Cochran the District’s top federal prosecutor.
Cochran was nominated by President Donald Trump on June 29, 2017 and he was confirmed by the United States Senate on September 14, 2017.
“I am extremely humbled by the confidence that President Trump has shown in me by virtue of this nomination,” said U.S. Attorney Cochran. “I look forward to serving the people of Middle Tennessee and continuing the fine work of the U.S. Attorney’s Office and our many law enforcement partners in seeking justice on behalf of the American people.”
Prior to his appointment as U.S. Attorney, Cochran was a law professor at Belmont University School of Law and served as an Assistant U.S. Attorney in the Northern District of Alabama. He also served as a Deputy District Attorney in Birmingham and was an Army Ranger and Special Forces Officer.
District Man Pleads Guilty to Brazen Bank RobberyRead the Press Release
WASHINGTON – Charles Smoot, 47, of Washington, D.C., has pled guilty to carrying out a broad-daylight robbery of a bank in the Brentwood neighborhood of Northeast Washington, announced U.S. Attorney Channing D. Phillips, Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Smoot pled guilty on Sept. 20, 2017, before the Honorable Amit P. Mehta in the U.S. District Court for the District of Columbia, to one count of bank robbery. Smoot faces a statutory maximum of 20 years in prison. Under federal sentencing guidelines, he faces a likely range of 63 to 78 months in prison and potential financial penalties. He also is subject to an order of restitution and a forfeiture money judgment. Judge Mehta scheduled sentencing for Jan. 19, 2018.
The government’s evidence established that on July 5, 2017, at approximately 9:45 a.m., Smoot entered a TD Bank in the 900 block of Rhode Island Avenue NE and handed two notes to the bank tellers that stated, “No Die pack, No police, All your money.” With a bank full of customers, Smoot threatened the tellers with words to the effect of: “Give me all the money or I’ll kill everyone in here.”
In response, the bank tellers – with their hands raised in fear for their lives – gave Smoot approximately $5,121. Smoot put the money in a black gym bag and walked out of the bank. The bank tellers immediately advised law enforcement of the robbery and members of the FBI’s Violent Crimes Task Force, which includes MPD detectives, responded to the bank.
Law enforcement tracked Smoot to a residence on 60th Street NE, and immediately began conducting surveillance outside of the residence. Although Smoot had changed some of his clothing, he could be seen wearing the same watch and light grey shoes that could be seen on the TD Bank surveillance video. A search warrant was executed at the residence and the black gym bag and pants worn by Smoot in the bank surveillance video were also recovered. Law enforcement also later recovered property taken from the bank from a storm drain in front of the residence.
The bank was processed by crime scene investigators and additional evidence was recovered that ultimately linked Smoot to the bank robbery. Specifically, an expert identified four fingerprints that were left by Smoot on a magazine that was left on the teller’s counter with the notes demanding the money. Additionally, a handwriting expert compared the handwriting on the two demand notes to known handwriting samples authored by Smoot and concluded that Smoot had authored the two notes that were left behind at the scene.
Smoot was arrested on July 7 and has been in custody ever since. At the time of his arrest, Smoot was on supervised release for unlawful possession of a firearm by a person convicted of a crime punishable by imprisonment for a term exceeding one year. Smoot now faces formal revocation of his supervised release and additional incarceration, separate from the above-referenced sentence.
In announcing the plea, U.S. Attorney Phillips, Assistant Director in Charge Vale, and Chief Newsham commended the work of the FBI’s Violent Crimes Task Force and MPD officers in the Fifth and Sixth Districts in quickly investigating and arresting Smoot. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Kara Traster, Laura Crane, and Anthony Scarpelli of the Violent Crime and Narcotics Trafficking Section, Special Assistant U.S. Attorney Marina Stevenson, Paralegal Specialists Candace Battle and Rommel Pachoca, and Legal Assistants Kate Abrey and Peter Gaboton.
Denison Man Sentenced to 70 Months in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, Iowa – On September 19, 2017, Chief United States District Court Judge John A. Jarvey sentenced Ivan Antonio Cervantes, age 31, of Denison, Iowa, to 70 months in prison for possession of methamphetamine with intent to distribute. Cervantes will also serve four years of supervised release following his imprisonment, announced United States Attorney Kevin E. VanderSchel.
As part of his guilty plea, Cervantes admitted to possessing with the intent to distribute nearly 15 grams of pure methamphetamine when his vehicle was stopped south of Harlan in Shelby County, Iowa, in December of 2016. Cervantes further admitted three underage children were in the vehicle when he possessed the methamphetamine.
The Shelby County Sheriff’s Office, the Cass County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
-END-
Learn more about this release by calling Jason T. Griess at 515-473-9300, or by emailing him at [email protected] (link sends e-mail).
Convicted Sex Offender Indicted for Producing Child PornographyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a convicted sex offender in Reeds Spring, Mo., has been indicted by a federal grand jury for the sexual exploitation of a minor.
Jeffrey Raymond Everett, Jr., 22, of Reeds Spring, was charged in a two-count indictment returned by a federal grand jury in Springfield, Mo., on Wednesday, Sept. 20, 2017. Everett has a prior state conviction for possessing child pornography.
The federal indictment alleges that Everett used a minor to produce child pornography from April 20 to April 30, 2017. Everett is also charged with using the Internet and a cell phone to attempt to entice the minor to engage in illicit sexual activity.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Southwest Missouri Cyber Crimes Task Force and the Monett, Mo., Police Department.
Project Safe Childhood
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."
Controller at Fontana Metal Forging Company Pleads Guilty to Federal Charges Related to $1.5 Million Embezzlement SchemeRead the Press Release
LOS ANGELES – A Riverside woman who was the controller at a Fontana-based metal forging company pleaded guilty this morning to federal charges stemming from her embezzlement of $1.5 million from her employer.
Jacquelin Dyer, 67, who was the controller and co-general manager at Pacific Forge, Inc., appeared this morning before United States District Judge George H. Wu and pleaded guilty to one count of mail fraud.
As the controller, Dyer was responsible for all aspects of accounting at Pacific Forge, and she was authorized to sign corporate checks for amounts up to $5,000. According to court documents, over the course of approximately 10 years, Dyer used Pacific Forge corporate checks to pay her personal bills. Dyer printed and signed corporate checks under $5,000 that she made appear would be used to pay Pacific Forge vendors, but in reality were mailed to pay her personal expenses.
Dyer pleaded guilty to a mail fraud charge related to a $4,752 check that she mailed to American Express on January 11, 2013 to pay her personal credit card bill. Dyer made false entries in the Pacific Forge books to make this check appear to be a payment to a vendor.
“Utilizing this scheme, defendant [Dyer] made approximately $1,115,526.34 worth of payments towards her personal American Express credit card between 2006 and 2016,” Dyer admitted in a plea agreement filed in United States District Court. “Defendant used approximately $160,000 of the fraudulent proceeds to make payments towards the mortgage on her personal real property.”
In total, Dyer embezzled approximately $1,525,556 of Pacific Forge funds to pay for her mortgage, personal tax payments, and vehicle repair expenses.
As part of the plea agreement, Dyer agreed to forfeit the $160,000 she used to pay for her residence.
As a result of today’s guilty plea, Dyer faces a statutory maximum sentence of 20 years in federal prison when she is sentenced by Judge Wu on January 18.
This case was investigated by the Federal Bureau of Investigation.
This case is being prosecuted by Assistant United States Attorney Bilal A. Essayli of the Riverside Branch Office.
Cleveland man sentenced to nearly three years in prison for illegal demolition of former factoryRead the Press Release
A Cleveland man was sentenced to nearly three years in prison for violating the Clean Air Act by failing to remove asbestos prior to demolishing a former factory in Cleveland, law enforcement officials said.
William S. Jackson, 47, was sentenced to 33 months in prison and ordered to pay $7.8 million in restitution by U.S. Senior District Judge Donald C. Nugent.
Christopher Gattarello leased the former National Acme facility at 170 East 131st Street in Cleveland in June 2011. The 570,000 square-foot facility was built in 1917 and was used for manufacturing for nearly a century. It is located near many homes and a school. Gattarello represented to the lessor that paper and cardboard waste would be recycled at the facility.
In July 2011, a company estimated removing asbestos from the facility would cost $1.5 million.
Around August 2011, Gattarello directed paper and cardboard waste, as well as municipal garbage, be delivered to the facility for recycling. Over the next several months, more garbage, paper and cardboard were delivered than could be handled, and Gattarello had the waste moved inside. By April 2012, most of the facility was filled with garbage.
Gattarello entered into a contract to purchase the facility in 2012. Gattarello intended to demolish the facility and sell any metal removed as scrap.
Jackson operated a Cleveland building demolition company. In July 2012, he submitted a notice of demolition with the Cleveland Division of Air Quality stating there was no asbestos in the National Acme facility. About 10 days later, the CDAQ rejected Jackson’s notice because it was incomplete and stated demolition “may not begin” until a proper notice was submitted and approved. About 10 days after that, on July 21, 2012, Jackson began demolition at Gattarello’s direction.
Asbestos fibers were released into the environment during demolition. Debris accumulated outside the facility from demolition and asbestos in the piles were exposed to the wind and elements.
Gattarello was sentenced to nearly five years in prison for his crimes earlier this year.
“This defendant knowingly ignored regulations designed to protect the public’s health and safety,” U.S. Attorney Justin E. Herdman said. “He and his co-defendants caused irreparable harm to a Cleveland neighborhood.”
“The defendants in this case put unsuspecting workers at great risk and threatened the health and safety of the community when they failed to follow proper procedures for removing asbestos,” said Scot Adair, Acting Special Agent in Charge of EPA’s criminal enforcement program in Ohio. “This case demonstrates that EPA and its law enforcement partners will prosecute those who willingly break environmental laws in an attempt to cut costs.”
“It is both illegal and inexcusable to dump thousands of tons of garbage near a residential neighborhood,” said Ohio Attorney General Mike DeWine. “Residents were subjected to environmental and health hazards and deserve to see those accountable brought to justice.”
“Let these sentencings stand as a warning to those who victimize the public that whether you are the main perpetrator of a fraud, or merely assist in its facilitation, the law will hold all guilty parties accountable,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “The successful prosecution of these individuals is a direct result of the excellent partnership that federal, state and kocal law enforcement has in combating violations of federal law."
This case is being prosecuted by Assistant U.S. Attorneys Brad Beeson and Chelsea Rice following an investigation by the U.S. and Ohio Environmental Protection Agencies, the Ohio Bureau of Criminal Investigation and the Internal Revenue Service.
Clarksville Man Indicted for Making False Statements to Obtain Subsidized Housing BenefitsRead the Press Release
Joseph Fulmore, Jr., 45, of Clarksville, Tenn., was indicted yesterday by a federal grand jury for making false statements in order to obtain public housing benefits, announced U.S. Attorney Mark H. Wildasin of the Middle District of Tennessee.
According to the indictment, on July 6, 2012, Fulmore made application to lease a public housing unit, operated and maintained by the Clarksville Housing Authority (CHA). Federal regulations mandate that applicants for public housing complete an application for admission and continued occupancy as part of an eligibility determination process, which includes disclosing all income, earnings and assets of individuals living in the unit.
The indictment alleges that also in July 2012, Fulmore applied for and obtained an FHA loan to purchase a single family home. The loan application for this property listed income and assets not previously reported to the CHA, including a monthly beneficiary payment in the amount of approximately $2,800.00.
Fulmore subsequently purchased and moved to the single family home and lived there until April 2014, when foreclosure proceedings were initiated against this property. During this time, the indictment alleges that Fulmore continued to make the reduced rental payments for the public housing unit and resumed living there after the foreclosure, until August 2016.
Finally, the indictment alleges that for each of the three subsequent years that Fulmore received the public housing benefits, he submitted annual certifications to the CHA, which falsely reported and concealed his true assets and household income, which allowed him to fraudulently receive a subsidized public housing unit to which he was not entitled.
If convicted, Fulmore faces up to five years in prison and a $250,000 fine.
This case was investigated by the U.S. Department of Housing and Urban Development-Office of Inspector General. Assistant U.S. Attorney Stephanie N. Toussaint is prosecuting the case.
An indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
Clarke County Resident Sentenced to 30 Months for Possession of Cocaine Base with the Intent to DistributeRead the Press Release
Acting United States Attorney Steve Butler announces that Jamesin Rich, a 33 year old, resident of Thomasville, Alabama was sentenced today to 30 months incarceration followed by three years of supervised release for possession of approximately 21.3 grams of cocaine base, common known as “crack” cocaine. The cumulative quantity of “crack” cocaine was discovered in Rich’s possession during the search of a residence in Thomasville. It was packaged in individual amounts for sale.
On May 16, 2017, Rich pled guilty to possession with intent to distribute “crack” cocaine.
The Drug Enforcement Administration along with the Thomasville, Alabama Police Department investigated the case and presented it to the United States Attorney’s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.