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7 September 2017
Gresham Man Sentenced to 96 Months in Federal Prison for Illegal Firearm PossessionRead the Press Release
PORTLAND, Ore. – On Wednesday, September 6, 2017, United States District Court Judge Marco A. Hernandez sentenced Nicolas Allen Harms, 26, of Gresham, to 96 months in federal prison followed by 3 years of supervised release. Harms had previously pleaded guilty to one count of being a felon in possession of a firearm in violation of 18 U.S.C. §§ 992(g)(1) and 924(a)(2).
According to court documents, in late 2015, Gresham Police Officers received information that Harms was selling heroin. Using a confidential informant, officers conducted a controlled buy of heroin from Harms. On December 8, 2015, officers executed a search warrant on Harms’ hotel room and found approximately 35 grams of heroin, 17 grams of methamphetamine, a loaded .357 revolver, digital scales and drug packaging material. Officers also found 3.5 grams of methamphetamine and $440 in cash on the defendant’s person.
Following the search of the hotel room, officers developed information that Harms possessed a storage unit. A subsequent search of the unit resulted in the recovery of a short-barreled .22 caliber rifle, a shotgun and paperwork and materials related to his drug dealing. Harms was arrested and indicted in federal court. He later admitted to being a felon and illegally possessing the three recovered firearms: an Amadeo Rossi .357 caliber revolver, a Winchester 12 gauge shotgun and a Ruger .22 caliber rifle.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Gresham Police Department and the United States Attorney’s Office for the District of Oregon and was prosecuted by Scott M. Kerin, Assistant United States Attorney for the District of Oregon.
Grand Jury Indicts Couple Texting on Aircraft about Child MolestationRead the Press Release
Two Tacoma, Washington residents who were observed texting on an airplane about sexually molesting children have been indicted by a grand jury in Seattle, announced U.S. Attorney Annette L. Hayes. MICHAEL KELLAR, 56, and GAIL LYNN BURNWORTH, 50, were arrested last month after an alert passenger on a flight to San Jose, California noticed disturbing texts between KELLAR, who was on the plane, and BURNWORTH, who was in Tacoma. BURNWORTH had access to two minor children. The indictment was returned on Wednesday, September 6, 2017. The pair are scheduled for arraignment on the indictment in U.S. District Court in Tacoma on September 18, 2017.
“Two children are safe tonight because an observant passenger on a plane did the right thing,” said U.S. Attorney Annette L. Hayes. “I commend law enforcement who quickly acted to get these defendants into custody, and protect two children from sexual abuse.”
Both KELLAR and BURNWORTH are charged with conspiracy to produce child pornography. KELLAR is charged with two counts of attempted enticement of a minor in connection with his communication to BURNWORTH regarding the sexual exploitation and rape of each of the minor children.
Conspiracy to produce child pornography is punishable by a mandatory minimum 15 years in prison and up to 30 years in prison and a $250,000 fine. Attempted enticement of a minor is punishable by a mandatory minimum ten years in prison and up to life in prison and a $250,000 fine.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
BURNWORTH is charged in Pierce County Superior Court with child rape, child molestation and two counts of sexual exploitation of a minor.
Both defendants remain in custody.
The case is being investigated by the FBI with assistance from the San Jose, California Sheriff’s Office, and the Seattle Police Department Internet Crimes against Children Task Force (ICAC).
The case is being prosecuted by Assistant United States Attorney Matthew Hampton.
Georgetown Woman Sentenced for Embezzling over $60,000 Dollars from EmployerRead the Press Release
BOSTON – A Georgetown woman was sentenced today in federal court in Boston for embezzling over $60,000 from her former employer.
Michelle Higson, 41, was sentenced by U.S. District Court Judge Denise J. Casper to three months in prison, nine months of home confinement, three years of supervised release, and ordered to pay restitution of $60,290. In April 2017, Higson pleaded guilty to one count of bank fraud and two counts of uttering a forged security.
Higson worked as a part-time bookkeeper at a Rowley-based company where she was responsible for handling the company’s accounts payable by using the company’s accounting software program. From December 2013 through January 2015, Higson stole a series of the company’s checks and made them payable to cash. Higson then forged her employer’s signatures on the stolen checks, endorsed them herself, and deposited them for cash, which she used for personal expenses.
To conceal her criminal conduct and avoid detection by company officials, Higson falsified entries in the company’s general ledger to make it appear as if the stolen checks had been issued to satisfy payment to bona fide vendors. In total, Higson embezzled over $60,000.
Acting United States Attorney William D. Weinreb and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorney Anne Paruti of Weinreb’s Major Crimes Unit prosecuted the case.
Gang Leader Sentenced for Drug DistributionRead the Press Release
BOSTON – A leader of the Boston street gang, Columbia Point Dawgs, was sentenced today in federal court in Boston for trafficking oxycodone.
Demetrius Williams, a/k/a Troll, 30, of Roxbury, was sentenced by U.S. District Court Judge Richard G. Stearns to 151 months in prison and five years of supervised release. In December 2016, Williams pleaded guilty to RICO conspiracy and conspiracy to possess with intent to distribute cocaine, cocaine base and heroin. Demetrius Williams, one of 48 defendants tied to the CPD, was indicted in June 2015 on racketeering, drug trafficking, and firearms charges.
Williams, was involved in the importation and distribution of at least 880 grams of cocaine base, 10 kilograms of cocaine, and 700 grams of heroin in Massachusetts, along with other members and associates of the Columbia Point Dawgs (CPD), including his brothers Yancey Williams and Herbert Small, and father Yancey Calhoun.
According to documents filed in court, the CPD, also known on the street as “the Point,” was Boston’s largest and most influential citywide gang. The criminal organization started in the 1980s in the former Columbia Point Housing Development (now Harbor Point) and, over the years, gang members established drug trafficking crews throughout Boston. It is alleged that the CPD was responsible for the distribution of multiple kilo quantities of heroin, cocaine, crack cocaine, and oxycodone throughout Boston and Maine.
Yancey Williams previously pleaded guilty and is scheduled to be sentenced on Sept. 19th; Herbert Small pleaded guilty and was sentenced in August 2017 to 37 months in prison; and Yancey Calhoun also pleaded guilty and was sentenced in December 2016 to 60 months in prison.
Acting United States Attorney William D. Weinreb; Suffolk County District Attorney Daniel F. Conley; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; John Gibbons, U.S. Marshal for the District of Massachusetts; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Suffolk County Sheriff Steven W. Tompkins; Boston Police Commissioner William Evans; and Commissioner Thomas Turco of the Massachusetts Department of Correction, made the announcement.
Fort Wayne Man Sentenced to Life ImprisonmentRead the Press Release
FORT WAYNE – Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announces that Larry Norton, age 66, of Fort Wayne, Indiana, was sentenced before United States District Court Judge Theresa Springmann for conspiring to distribute and possess with intent to distribute 5 kilograms or more of cocaine and 1 kilogram or more of heroin. He was found guilty after a 6-day jury trial in May of 2017.
Norton was sentenced to life imprisonment.
According to documents in this case, Norton faced a statutory mandatory minimum sentence of life imprisonment without release because he has two prior final felony drug convictions. Norton’s criminal history actually consisted of three felony drug convictions, two convictions for dealing and distributing cocaine (one federal and one state) and another conviction for possessing cocaine.
This case was investigated by the Federal Bureau of Investigation Fort Wayne Safe Streets Task Force, which includes FBI, Indiana State Police, Allen County Police Department, and the Fort Wayne Police Department. The case was prosecuted by Stacy R. Speith and Anthony W. Geller.
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Fort Wayne Man Sentenced to 22 Months ImprisonmentRead the Press Release
FORT WAYNE – Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announces that Dean Zimmerman, age 48, of Fort Wayne, Indiana, was sentenced before United States District Court Judge Theresa Springmann on his plea of guilty to the charge of conspiracy to commit mail fraud.
Zimmerman was sentenced to 22 months imprisonment followed by 1 year of supervised release. Restitution was ordered payable to the victims, United Technologies Electronic Controls, Inc. and PayPal, Inc. the total sum of $346,753.33, and a 1 million dollar money judgement was also entered. Additionally, 103 items, which include sums of U.S. currency and various items of property (ie computers, jewelry, coins, firearms and vehicles) were ordered forfeited as proceeds of his criminal conduct.
According to documents filed in this case, from on or about January 1, 2014 and continuing until on or about May 17, 2016, Zimmerman conspired with his wife Linda Zimmerman to devise a scheme to obtain money through fraud by stealing property from his employer and then selling the stolen property on eBay and utilizing the United States Postal Service to deliver the stolen merchandise to unwitting buyers. Linda Zimmerman has plead guilty to the same charge, conspiracy to commit mail fraud and is awaiting sentencing.
This case was the result of an investigation by the Federal Bureau of Investigations with the assistance of the Indiana State Police and the Huntington Police Department and was handled by Assistant United States Attorneys Anthony W. Geller and Stacey R. Speith.
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Fort Hall Man Sentenced to a Life Term in Federal PrisonRead the Press Release
POCATELLO – Anthony Martin Ish, 34, of Fort Hall, Idaho, was sentenced today to life imprisonment by Senior U.S. District Judge Edward J. Lodge, Acting U.S. Attorney Rafael Gonzalez announced. A jury convicted Ish of second degree murder and assault with a deadly weapon on February 14, 2017, following a one-week jury trial in Pocatello, Idaho.
Evidence at trial established that on the evening of October 14, 2014, Ish shot and killed Darrel Auck outside Ish’s grandmother’s mobile home on the Fort Hall Indian Reservation. Auck and several others were in attendance for Ish’s birthday party. Eye witnesses testified that Ish fired a pistol at Auck several times, at close range, while Auck was trying to get away. Extensive search efforts were conducted by law enforcement and the community, including the Federal Bureau of Investigation, the Fort Hall Police Department, Shoshone-Bannock Tribes, and Search and Rescue, but Auck’s body has not been recovered.
This case was investigated by the Federal Bureau of Investigation and the Fort Hall Police Department.
Former UND Flight Instructor Sentenced on Child Pornography ChargesRead the Press Release
FARGO – United States Attorney Christopher C. Myers announced that on September 5, 2017, former University of North Dakota Flight Instructor ERIC HEWITT BASILE, age 38, of Grand Forks, ND, was sentenced before United States District Court Judge Ralph R. Erickson to serve 16 ½ years in prison for his role in Receiving and Distributing Materials Containing Child Pornography, as well as Possession of Materials Containing Child Pornography. Judge Erickson further sentenced Basile to serve 15 years of supervised release and to pay $24,000 in special assessments to the Crime Victims’ Fund.
This case came to the attention of law enforcement after two University of North Dakota students separately reported to the UND Police Department that Basile, a then-UND faculty member, had engaged in inappropriate behavior. Based upon those reports, the UND Police Department seized Basile’s UND-issued computer for forensic examination. A preliminary search of the computer revealed child pornography, at which point the matter was turned over to agents with the Department of Homeland Security - Homeland Security Investigations and the North Dakota Bureau of Criminal Investigation for further investigation. During the course of their investigation, law enforcement obtained search warrants for Basile’s office and home, at which time additional media was seized. A subsequent forensic examination of this media revealed additional child pornography videos and images depicting children as young as babies and toddlers being violently sexually abused. The investigation also revealed that Basile traded some of those images and videos with other individuals and also engaged in online chats with those individuals, wherein he discussed his desire to sexually abuse young children.
This case is the result of an investigation conducted by the University of North Dakota Police Department, Grand Forks Police Department, Department of Homeland Security – Homeland Security Investigations, and the North Dakota Bureau of Criminal Investigation.
Assistant United States Attorney Jennifer Klemetsrud Puhl prosecuted the case.
http://www.usdoj.gov/usao/nd
Former Quincy Police Lieutenant Sentenced for “Double Dipping”Read the Press Release
BOSTON – A former Lieutenant with the Quincy Police Department (QPD) was sentenced today in federal court in Boston after a jury found him guilty of collecting double pay in 2015.
Thomas Corliss, 52, was sentenced by U.S. District Court Judge Leo T. Sorokin to one year and one day in prison and one year of supervised release. In June 2017, Corliss was convicted following an eight-day jury trial of 10 counts of mail fraud and one count of fraud involving federal funds.
An internal investigation by the QPD revealed that Corliss had “double dipped,” or collected double pay for working multiple details and/or police shifts that overlapped on multiple occasions in 2015. While on vacation in the Bahamas and on Martha’s Vineyard in 2015, Corliss left himself on the daily roster rather than using vacation time. In total, Corliss defrauded the QPD of more than $8,000.
Acting United States Attorney William D. Weinreb; Ronald G. Gardella, Special Agent in Charge of the Department of Justice, Office of the Inspector General, New York Field Office; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorneys Dustin Chao and Ryan M. DiSantis of Weinreb’s Public Corruption Unit prosecuted the case.
Former Owner of Boston Forensic Accounting Firm Pleads Guilty to Tax EvasionRead the Press Release
BOSTON – The former owner of a Boston forensic accounting firm pleaded guilty today in federal court in Boston to understating his income by hundreds of thousands of dollars on his personal income tax returns.
James Carey, 50, pleaded guilty to two counts of making material misstatements on his 2009 and 2010 personal income tax returns. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Nov. 29, 2017. In April 2017, Carey was indicted on two counts of filing false federal tax returns.
Carey, a certified public accountant, owned Carey & Company, a forensic accounting firm in Boston. Carey & Company administered bank accounts on behalf of insurance companies into which the insurance companies and their clients could make deposits, and from which payments could be made on behalf of and to the insurance companies. In November 2009, a customer of one of the insurance companies sent Carey & Company a payment of $594,217 intended for the insurance company, but during the months that followed, Carey transferred almost all of that money out of the account and used it for his own purposes. The money Carey misappropriated from the insurance company was taxable income, which Carey failed to report on his personal income tax return. In addition, in 2010, Carey reported less than one-third of his business’s actual income on his personal income tax return.
The charging statute provides for a sentence of no greater than three years in prison, one year of supervised release, a fine of $250,000, and restitution of unpaid taxes. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorneys Stephen Heymann and Sara Bloom of Weinreb’s Economic Crimes Unit are prosecuting the case.
Former Loan Broker Pleads Guilty to Defrauding Small BusinessesRead the Press Release
BOSTON – A Saugus loan broker pleaded guilty yesterday in federal court in Boston to operating a scheme that defrauded small businesses from across the country in connection with their efforts to obtain business loans.
Joseph L. Angelo Jr, 59, pleaded guilty to 11 counts of wire fraud. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Nov.29, 2017.
From November 2011 to March 2015, Angelo defrauded 10 small business owners of more than $1 million by representing that his companies – Lease One Corp. and Palmtree Finance & Funding LLC – were brokers for obtaining loans for small businesses. Angelo required the customers to deliver to him what he said were fully refundable deposits, aggregating over $1.1 million, for loans that he said had been approved and would be funded within a few days. In fact, none of the loans had been approved and there were no funds available. When the small business owners complained about delays in receiving funds, Angelo promised that their deposits would be refunded, but he did not refund any of the deposits or secure funding for any of the requested loans.
The charging statute provides for a sentence of no greater than 20 years in prison, five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Victor A. Wild of Weinreb’s Economic Crimes Unit.
Former Employee of Metro Real Estate Company to Serve 34 Months in Prison for Embezzlement and Tax FraudRead the Press Release
Oklahoma City, Oklahoma – JAMES LEE WARD, JR., of Luther, was sentenced today to 34 months in federal prison for making a forged security and filing a false tax return in connection with his embezzlement of more than $250,000 from a metro real estate company, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
Ward is a former Title Closing Coordinator at Paradigm AdvantEdge, LLC ("Paradigm"), a real estate company in Oklahoma City. According to the Information filed in the case, Ward forged a $6,900 check from Paradigm payable to a bogus business entity under his control, made to look like a legitimate payee in Paradigm’s real estate transactions. At his plea hearing on March 16, 2017, Ward admitted that he forged the signature of a Paradigm owner and issued the $6,900 check to himself without the approval of Paradigm. In a plea agreement, Ward agreed that the total loss from his embezzlement was $250,415.00. The Information also alleged that Ward submitted a false federal income tax return for 2014 by failing to report substantial income from the embezzlement. At his plea hearing, Ward admitted that he omitted approximately $140,000 of embezzled income from Paradigm on his 2014 return.
United States District Judge Joe Heaton sentenced Ward to 34 months of imprisonment, followed by three years of supervised release. Ward was ordered to pay restitution to Paradigm and its insurers in the total amount of $250,415.00. He was also ordered to pay $50,777.72 in restitution to the Internal Revenue Service for federal income tax due from his unreported embezzlement income. Ward must report to federal prison on October 6, 2017.
This case is the result of an investigation conducted by the Internal Revenue Service–Criminal Investigations. Assistant U.S. Attorney Chris M. Stephens prosecuted the case.
Former Clearwater Pawnshop Owner Sentenced in Stolen Identity Refund Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Craig Reckley to 12 months and 1 day in federal prison for his role in a stolen identity refund fraud scheme. As part of his sentence, the Court also ordered him to pay $166,745.61 in restitution to the Internal Revenue Service.
Reckley pleaded guilty on May 4, 2017.
According to court documents, Reckley obtained and deposited 37 United States Treasury checks into his business’s bank account. The checks represented refunds from the filing of false and fraudulent income tax returns in the names of victim taxpayers. During his involvement in the scheme, Reckley was the owner and proprietor of Quick Cash Pawn of Pinellas, located in Clearwater.
This case was investigated by the Internal Revenue Service - Criminal Investigation, with assistance from the Clearwater Police Department. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.
Former Amazon Financial Analyst Pleads Guilty to Insider TradingRead the Press Release
A former financial analyst at Amazon.com, Inc., pleaded guilty today in U.S. District Court in Seattle to securities fraud involving insider trading, announced U.S. Attorney Annette L. Hayes. BRETT D. KENNEDY, 26, currently of Blaine, Washington, admitted that in April 2015, he provided non-public quarterly financial results to a friend who then purchased Amazon stock and sold it at a profit once the results were made public. The friend paid KENNEDY for this inside information. KENNEDY is no longer employed by Amazon. Chief U.S. District Judge Ricardo Martinez scheduled sentencing for December 8, 2017.
“Insider trading of any kind corrodes trust in one of the crown jewels of our country -- our financial markets,” said U. S. Attorney Annette L. Hayes. “As this case demonstrates, we work closely with our law enforcement partners – including the FBI and the SEC – to investigate and hold accountable those involved in this serious crime.”
According to the information filed in the case, KENNEDY began work as a financial analyst at Amazon in 2013. As part of his employment he signed a confidentiality statement that he would not disclose Amazon’s non-public financial information outside the company. The policy specifically mentions information such as earnings and losses as material confidential information. In April 2015, KENNEDY used his access to view and write down Amazon first quarter earnings that were going to be announced later in the month. KENNEDY provided this information to his friend. After viewing the information, the friend purchased 4400 shares of Amazon stock for $1.7 million. When the positive earnings news was announced publicly, and the stock price rose, the friend sold the shares for a gain of nearly $116,000.
The friend paid KENNEDY $10,000 in cash for the information.
As part of the plea agreement, the government will recommend KENNEDY serve no more than a year and a day in prison. However, the judge is not bound by that recommendation and KENNEDY could be sentenced to the maximum penalty of up to 20 years in prison and $5 million fine.
The Securities and Exchange Commission today filed civil charges against KENNEDY. In its complaint it identifies the friend as Maziar Rezakhani, and names him as a defendant. Rezakhani, 28, is currently serving a five year prison term for defrauding a bank, Apple, Inc., and various shipping and insurance companies. The insider trading investigation grew out of the investigation into Rezakhani’s frauds. The SEC is seeking disgorgement of all profits from Rezakhani’s alleged illegal trading. KENNEDY agreed to a settlement with the SEC. Details of the SEC action are available here.
The case was investigated by the FBI. The case was prosecuted by Assistant United States Attorney Brian Werner.
Former Alabama Legislator Pleads Guilty to Bribery Conspiracy, Fraud and Tax EvasionRead the Press Release
BIRMINGHAM – A former Alabama legislator pleaded guilty today in federal court to accepting bribes from a Birmingham lawyer and an Alabama coal company executive in exchange for advocating their employers’ opposition to EPA actions in North Birmingham. U.S. Attorney Jay E. Town, FBI Special Agent in Charge Johnnie Sharp Jr. and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge James E. Dorsey announced the plea.
Former state representative OLIVER L. ROBINSON JR., 57, of Birmingham, entered his guilty pleas before U.S. District Court Judge Abdul K. Kallon to conspiracy, bribery and honest services wire fraud. The U.S. Attorney’s Office charged Robinson in June for accepting a valuable contract between the Birmingham law firm Balch & Bingham and the Oliver Robinson Foundation to influence and reward Robinson for using his position as a member of the Alabama House of Representatives, vice-chairman of the Jefferson County Legislative Delegation, and as an elected representative of citizens of Birmingham to pressure and advise public officials to oppose the Environmental Protection Agency’s prioritization and expansion of a North Birmingham EPA Superfund site.
Robinson represented Alabama’s House District 58 from 1998 until he resigned Nov. 30, 2016. As part of his plea, he agrees never again to seek elected office and to pay restitution and forfeiture in amounts to be determined. He is scheduled for sentencing Dec. 7 and remains free on bond.
“This lamentable pursuit of self-interest masquerading as beneficial for the little guy is more than a violation of our laws. This was a violation of the public trust and among the worst breaches of our social contract,” Town said. “All those engaged in public corruption must be brought to justice, and it matters not their benefactor or station.”
“The FBI’s stance on public corruption is that of zero tolerance and therefore it is one of our highest priorities,” Sharp said. “Public corruption is among the most serious of criminal violations and a betrayal of the public’s sacred trust. If allowed to spread unchecked, it can threaten the foundation of our government. The FBI continues to aggressively pursue those who participate in this type of crime.”
"The enforcement of tax administration is compromised with every attempt to undermine the tax system," Dorsey said. "Engaging in public corruption does not qualify as a tax exemption. The totalities of Mr. Oliver’s actions are egregious, devastating, and disappointing to the community in which he promised to serve."
Outside of the bribery charges, Robinson also pleaded guilty today to two counts of wire fraud for spending $17,783 of campaign contributions on personal items unrelated to his legislative campaigns. He pleaded guilty to a third wire fraud count for soliciting money from corporations, representing he would use it to publish a magazine or to defray costs for an annual Partnering for Progress Business Conference or the annual Alabama Black Achievers Awards Gala, which the Oliver Robinson Foundation sponsored. Robinson spent at least $250,000 of those contributions on personal items unrelated to the magazine or the annual events. Robinson also pleaded guilty to one count of tax evasion for the 2015 calendar year.
According to Robinson’s plea, the bribery conspiracy occurred as follows:
EPA designated an area of North Birmingham, including the neighborhoods of Harriman Park, Fairmont and Collegeville, as a Superfund site after finding elevated levels of arsenic, lead and benzo(a)pyrene during soil sampling.
In September 2013, EPA notified five companies, including ABC Coke, a division of Drummond Company, that they could potentially be responsible for the pollution. A company determined to be responsible for pollution within the site, known as the 35th Avenue Superfund Site, potentially faced multi-million dollar clean-up costs and fines.
In July 2014, EPA began considering the petition of a Birmingham environmental advocacy group, GASP, to expand the Superfund site to the Tarrant and Inglenook neighborhoods. EPA granted that petition in October 2014 and contracted with the Alabama Department of Environmental Management to perform the preliminary assessment.
In September 2014, EPA proposed adding the Superfund site to its National Priorities List, signaling that it required priority attention. Placement on the priorities list would allow EPA to use the federal Superfund Trust Fund to conduct long-term cleanup at the site, provided the State of Alabama agreed to pay 10 percent of the costs, which could equal millions of dollars. EPA’s decision on priority listing for the site remained pending throughout the scheme.
Balch & Bingham represented Drummond and ABC Coke in relation to the 35th Avenue site. A partner at Balch & Bingham, identified in the charges as “Attorney #1,” coordinated the response to EPA’s actions on behalf of ABC Coke and Drummond Company. A Drummond Company executive, identified as “Drummond Employee #1,” was involved with the attorney in responding to EPA. They formed the Alliance for Jobs and the Economy as a tax-exempt corporation in 2015 to raise money to help fund their opposition to the EPA actions, according to the charges.
The strategy employed by the attorney and the Drummond executive focused on protecting ABC Coke and Drummond from the tremendous potential costs associated with being held responsible for pollution within the affected areas. They sought to accomplish this goal by working to prevent EPA from listing the 35th Avenue site on the National Priorities List and expanding the Superfund site into Tarrant and Inglenook.
The plan included advising residents of North Birmingham and public officials to oppose EPA’s actions. As part of the overall strategy, Balch & Bingham paid Robinson, through his non-profit foundation, to represent Balch & Bingham’s and its clients’ interests, exclusively, in matters related to EPA’s actions in North Birmingham. Over the course of the contract in 2015 and 2016, Balch & Bingham paid $360,000 to the foundation.
One of the first tasks assigned to Robinson under the contract was to appear before the Alabama Environmental Management Commission and the director of the Alabama Department of Environmental Management in February 2015 to advance Balch & Bingham’s and its clients’ opposition to the Superfund proposals. In that appearance, Robinson said he was “really here today to try to protect the residents of north Birmingham.” He said, “[T]he thing that gets me and what is in the process of hurting the residents in that area is that the EPA has included five other corporations in on this process, but there have been no reports stating that these individuals are culpable in any way. And where that hurts the residents is the fact that we will have decades of litigation that will occur because of these five companies being added.”
Robinson asked the AEMC to help narrow the list of potentially responsible parties if there were no reports or tests implicating the corporations. Concluding, Robinson told the AEMC that if the areas of North Birmingham are designated as a Superfund site or listed on the NPL, the residents are “considered to live in a dump and nothing can happen there until it’s either cleaned up and after that, it will take tremendous investment to get it to move forward.”
Robinson concealed from AEMC and the ADEM director that Balch & Bingham and Drummond were paying the Oliver Robinson Foundation to represent their interests exclusively.
The maximum penalty for conspiracy is five years imprisonment and a $250,000 fine. The maximum penalty for bribery is 10 years imprisonment and a $250,000 fine. The maximum penalty for each count of wire fraud is 20 years imprisonment and a $250,000 fine. The maximum penalty for tax evasion is five years imprisonment and a $100,000 fine, together with the costs of prosecution.
The FBI and IRS investigated the case, which Assistant U.S. Attorneys George Martin, Robin Beardsley Mark and John B. Ward are prosecuting.
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Florida Man Pleads Guilty to Cocaine DistributionRead the Press Release
BOSTON – A Tampa, Fla., man pleaded guilty today in federal court in Springfield to distributing cocaine.
Angel Martinez, 39, pleaded guilty today to distributing cocaine in Springfield on May 19, 2015. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Nov. 30, 2017.
The charge of distribution of cocaine provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Katharine A. Wagner of Weinreb’s Springfield Branch Office is prosecuting the case.
Federal Officials Close the Investigation into the Death of Michael MooreRead the Press Release
The Justice Department will not pursue federal criminal civil rights charges against the Mobile Police Department officer (the Officer) involved in the fatal shooting of 19-year-old Michael Moore, the Department announced today.
Officials from the Civil Rights Division, the United States Attorney’s Office for the Southern District of Alabama, and the Federal Bureau of Investigation (FBI) spoke today with representatives of the Moore family to inform them of this determination. The Department makes this decision because the evidence obtained through the course of a rigorous investigation is insufficient to prove that the Officer willfully used excessive force resulting in Moore’s death.
The Department devoted significant time and resources to investigating the events surrounding Moore’s death on June 13, 2016, in Mobile, Alabama. A team of experienced career federal prosecutors from the Criminal Section of the Civil Rights Division and the United States Attorney’s Office reviewed evidence obtained by the FBI and state investigators to determine whether the Officer violated any federal laws, focusing on the application of 18 U.S.C. § 242, a federal criminal civil rights statute that prohibits certain types of official misconduct. They conducted a detailed and lengthy analysis of numerous materials, including police reports, law enforcement accounts, witness statements, affidavits of witnesses, dispatch logs, physical evidence reports, the autopsy report, photographs, videos of some portions of the incident, and conducted additional witness interviews.
The evidence developed during the investigation indicated that on June 13, 2016, the Officer conducted a traffic stop after Moore made an erratic turn. Moore had two passengers in the vehicle at the time of the traffic stop. Moore was unable to produce a driver’s license and instead provided the Officer with a license number. After running the information, the Officer learned that Moore provided him with a false driver’s license number and that the vehicle Moore was driving was reported stolen. The Officer asked Moore to step out of the car and Moore complied.
There are conflicting eyewitness accounts as to what happened once Moore exited the vehicle and these critical events were not captured on any video. The eyewitnesses to the shooting included residents and motorists traveling through the area in their vehicles. Both passengers inside Moore’s vehicle acknowledged that they saw Moore with a firearm prior to the shooting. One passenger observed a firearm in Moore’s car seat before encountering the Officer, and the other saw a firearm in Moore’s waistband once he stepped outside the vehicle. Some eyewitnesses describe Moore pulling up his pants or having his hands by his waist immediately prior to the shooting. Others describe Moore “snatching” his hand downward or “flinching” at the time of the shooting. Still others only saw Moore’s hands for a portion of the encounter or could not see them at all.
According to the Officer, Moore exited the vehicle with a cell phone in his right hand. The Officer asked Moore to put the cell phone down and when Moore bent down to place the phone on the ground, the Officer saw a gun in Moore’s waistband. The Officer commanded Moore not to reach for the gun, but Moore did so, at which time the Officer shot Moore causing Moore to fall to the ground. While on the ground, the Officer again commanded Moore not to reach for the gun. However, Moore reached for the gun, and the Officer shot him again.
Moore was transported to the University of South Alabama Medical Center where he was pronounced dead. At the hospital, emergency personnel recovered a firearm under Moore’s right hip in the waistband of his clothing. The serial number of the firearm recovered from Moore’s body matched the serial number of a firearm reported stolen earlier that day. An autopsy was conducted and determined that Moore died as a result of multiple gunshot wounds.
Under the applicable federal criminal civil rights laws, prosecutors must establish, beyond a reasonable doubt, that an officer “willfully” deprived an individual of a Constitutional right, meaning that the officer acted with the deliberate and specific intent to do something the law forbids. This is the highest standard of intent imposed by the law. Neither accident, mistake, fear, negligence, nor bad judgment is sufficient to establish a willful federal criminal civil rights violation.
Given the totality of the circumstances, and conflicting eye-witness testimony, the government cannot disprove the Officer’s claim that he believed that Moore was reaching for a firearm, that he feared for his life, and that he made the split-second decision to defend it. Therefore, after a careful and thorough review, a team of experienced career federal prosecutors determined that insufficient evidence exists to prove the Officer willfully violated any federal criminal civil rights statutes. Accordingly, the investigation into this incident has been closed.
Federal Officials Close the Investigation into the Death of Michael MooreRead the Press Release
The Justice Department will not pursue federal criminal civil rights charges against the Mobile Police Department officer (the Officer) involved in the fatal shooting of 19-year-old Michael Moore, the Department announced today.
Officials from the Civil Rights Division, the United States Attorney’s Office for the Southern District of Alabama, and the Federal Bureau of Investigation (FBI) spoke today with representatives of the Moore family to inform them of this determination. The Department makes this decision because the evidence obtained through the course of a rigorous investigation is insufficient to prove that the Officer willfully used excessive force resulting in Moore’s death.
The Department devoted significant time and resources to investigating the events surrounding Moore’s death on June 13, 2016, in Mobile, Alabama. A team of experienced career federal prosecutors from the Criminal Section of the Civil Rights Division and the United States Attorney’s Office reviewed evidence obtained by the FBI and state investigators to determine whether the Officer violated any federal laws, focusing on the application of 18 U.S.C. § 242, a federal criminal civil rights statute that prohibits certain types of official misconduct. They conducted a detailed and lengthy analysis of numerous materials, including police reports, law enforcement accounts, witness statements, affidavits of witnesses, dispatch logs, physical evidence reports, the autopsy report, photographs, videos of some portions of the incident, and conducted additional witness interviews.
The evidence developed during the investigation indicated that on June 13, 2016, the Officer conducted a traffic stop after Moore made an erratic turn. Moore had two passengers in the vehicle at the time of the traffic stop. Moore was unable to produce a driver’s license and instead provided the Officer with a license number. After running the information, the Officer learned that Moore provided him with a false driver’s license number and that the vehicle Moore was driving was reported stolen. The Officer asked Moore to step out of the car and Moore complied.
There are conflicting eyewitness accounts as to what happened once Moore exited the vehicle and these critical events were not captured on any video. The eyewitnesses to the shooting included residents and motorists traveling through the area in their vehicles. Both passengers inside Moore’s vehicle acknowledged that they saw Moore with a firearm prior to the shooting. One passenger observed a firearm in Moore’s car seat before encountering the Officer, and the other saw a firearm in Moore’s waistband once he stepped outside the vehicle. Some eyewitnesses describe Moore pulling up his pants or having his hands by his waist immediately prior to the shooting. Others describe Moore “snatching” his hand downward or “flinching” at the time of the shooting. Still others only saw Moore’s hands for a portion of the encounter or could not see them at all.
According to the Officer, Moore exited the vehicle with a cell phone in his right hand. The Officer asked Moore to put the cell phone down and when Moore bent down to place the phone on the ground, the Officer saw a gun in Moore’s waistband. The Officer commanded Moore not to reach for the gun, but Moore did so, at which time the Officer shot Moore causing Moore to fall to the ground. While on the ground, the Officer again commanded Moore not to reach for the gun. However, Moore reached for the gun, and the Officer shot him again.
Moore was transported to the University of South Alabama Medical Center where he was pronounced dead. At the hospital, emergency personnel recovered a firearm under Moore’s right hip in the waistband of his clothing. The serial number of the firearm recovered from Moore’s body matched the serial number of a firearm reported stolen earlier that day. An autopsy was conducted and determined that Moore died as a result of multiple gunshot wounds.
Under the applicable federal criminal civil rights laws, prosecutors must establish, beyond a reasonable doubt, that an officer “willfully” deprived an individual of a Constitutional right, meaning that the officer acted with the deliberate and specific intent to do something the law forbids. This is the highest standard of intent imposed by the law. Neither accident, mistake, fear, negligence, nor bad judgment is sufficient to establish a willful federal criminal civil rights violation.
Given the totality of the circumstances, and conflicting eye-witness testimony, the government cannot disprove the Officer’s claim that he believed that Moore was reaching for a firearm, that he feared for his life, and that he made the split-second decision to defend it. Therefore, after a careful and thorough review, a team of experienced career federal prosecutors determined that insufficient evidence exists to prove the Officer willfully violated any federal criminal civil rights statutes. Accordingly, the investigation into this incident has been closed.
Federal Grand Jury Files Obstruction Charges Against Santa Fe Cardiologist Awaiting Sentencing on Health Care Fraud ChargeRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney James D. Tierney and Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division announced that a federal grand jury has returned a new indictment charging Roy G. Heilbron, 54, a cardiologist residing in Santa Fe, N.M., with false statements and obstruction charges. The new charges against Heilbron arise out of his alleged attempt to obstruct and impede proceedings in a pending criminal case.
The two-count indictment, which was filed yesterday, charges Heilbron with making and presenting fraudulent documents regarding his medical condition to a U.S. Probation Officer, and submitting the fraudulent documents for the purpose of postponing or avoiding sentencing in a pending health care fraud prosecution. The new indictment alleges that Heilbron committed the two crimes in Bernalillo County, N.M., and elsewhere, between Aug. 3, 2017 and Aug. 7, 2017.
Heilbron pleaded guilty in federal court in Albuquerque, N.M., to a health care fraud charge on Feb. 17, 2017, under a plea agreement recommending a sentence of two years of imprisonment followed by a term of supervised release to be determined by the court. The Feb. 17, 2017 press release summarizing the proceedings in the health care fraud case in which Heilbron pleaded guilty is attached.
On Aug. 7, 2017, Heilbron’s attorney filed a motion to continue Heilbron’s sentencing hearing, which was scheduled for Aug. 28, 2017, to permit Heilbron to begin chemotherapy in Costa Rica for prostate cancer. The motion included two attachments: a one-page “Treatment Protocol for Roy Heilbron” dated Aug. 3, 2017, which purported to detail Heilbron’s alleged prostate cancer diagnosis, and a three-page “Clinical Summary” dated June 24, 2017, which purported to outline a four-cycle chemotherapy treatment plan. The two documents purported to be authored by a physician with offices in San Jose, Costa Rica, and Miami, Fla.
On Aug. 9, 2017, a U.S. Magistrate Judge issued a warrant for Heilbron’s arrest based on a criminal complaint alleging the same charges as those contained in the new indictment. The complaint outlined the FBI’s investigation into the claims made in the “Clinical Summary” and “Treatment Protocol,” and alleged that Heilbron created the two documents himself and that Heilbron was not a patient of the physician whose name appears on the fraudulent documents. According to the complaint, Heilbron allegedly provided the fraudulent documents to his U.S. Probation Officer on Aug. 4, 2017, in support of a request to postpone his sentencing hearing.
Heilbron was arrested by the FBI in Charlotte, N.C., on Aug. 19, 2017. Heilbron currently is in the custody of the U.S. Marshals Service, which is in the process of transporting Heilbron back to New Mexico to face the charges in the new indictment and sentencing in the health care fraud case.
If convicted on the charges in the new indictment, Heilbron faces a statutory maximum penalty of 15 years of imprisonment on the false statements charge and 30 years of imprisonment on the obstruction of justice charge. Charges in criminal complaints and indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Santa Fe and Albuquerque offices of the FBI, with assistance from Charlotte office of the FBI and the U.S. Marshals Service, and is being prosecuted by Assistant U.S. Attorneys Jeremy Peña and George C. Kraehe.
088-170217 Heilbron Fraud Plea Heilbron Complaint Heilbron New IndictmentFederal Agents Arrest U.S. Army Veteran for Posting on Internet Threats to Destroy V.A. Medical Center in Kerrville and Kill EmployeesRead the Press Release
In San Antonio this morning, Special Agents with the Federal Bureau of Investigation arrested 44-year-old Walter Steven Crosley of Lakehills, TX, for using the Internet to post threats to kill individuals working for the U.S. Department of Veteran Affairs (VA) and to damage or destroy buildings by use of explosives announced United States Attorney Richard L. Durbin, Jr.; FBI Special Agent in Charge Christopher Combs, San Antonio Division; and, Special Agent in Charge James Werner, VA Office of Inspector General (VAOIG), South Central Field Office.
According to court records, Crosley served in the Army for 13 years including time in Iraq in support of Operation Iraqi Freedom. In 2005, Crosley, a Motor Transport Operator, suffered multiple injuries resulting from an Improvised Explosive Device (IED) detonation. In 2013, Crosley was permanently retired and received a 100% service-related disability. He has received periodic treatment for his injuries at the Kerrville VA Medical Center.
A criminal complaint and supporting affidavit filed in federal court today alleges that while visiting the facility on June 7, 2017, Crosley made a statement to a nurse that, “I may be the next guy that takes y’all out.” The complaint also states that Crosley, who claims to suffer health issues stemming from his service in Iraq and lack of proper treatment by the VA, periodically uploads videos to YouTube under the name of “Retired Warrior.” In one of the videos, Crosley states that he threatened to blow up the Kerrville VA facility if they did not put him in a war related illness and injury study center. In his video, he also claimed that he would follow in the footsteps of other individuals suffering from Post-Traumatic Stress Disorder (PTSD), who either committed suicide, killed other individuals or destroyed property.
Crosley made his initial appearance this afternoon in federal court in San Antonio. He remains in federal custody pending a detention hearing scheduled for September 21 at 9:30 a.m. Upon conviction, Crosley faces up to ten years in federal prison.
The FBI and the VAOIG investigated this case. Assistant United States Attorney Bud Paulissen is prosecuting this case on behalf of the Government.
It is important to note that a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Executive Director of Ocean City, New Jersey, Housing Authority Gets Three Years of Probation for Embezzling Federal FundsRead the Press Release
CAMDEN, N.J. – The former executive director of the Ocean City, New Jersey, Housing Authority (OCHA) was sentenced today to three years of probation for embezzling federal funds received by authority from the U.S. Department of Housing and Urban Development (HUD), Acting U.S. Attorney William E. Fitzpatrick announced.
Alesia Watson, 54, of Galloway Township, New Jersey, previously pleaded guilty before U.S. Magistrate Judge Karen M. Williams to an information charging her with one count of embezzling federal funds received from HUD and administered by OCHA to which she was not entitled. Judge Williams imposed the sentence today in Camden federal court.
According to documents filed in the case and statements made in court:
As executive director, Watson had access to two credit cards maintained by OCHA. From December 2013 through March 2015, Watson purchased 69 MasterCard gift cards using these two OCHA credit cards. She used the gift cards for personal expenses not associated with OCHA or provided them to friends and family members. Watson then used federal funds received from HUD and administered by OCHA to pay the credit card bills associated with the purchase of the gift cards. According to the plea agreement, the loss associated with the embezzlement was more than $6,500 but less than $15,000.
Watson was also ordered to pay restitution of $8,050.
Acting U.S. Attorney Fitzpatrick credited special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, and special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge Mark McKevitt, with the investigation.
The government is represented by Deputy Attorney-in-Charge Matthew J. Skahill of the U.S. Attorney’s Office in Camden.
Defense counsel: John J. Zarych Esq., Northfield, New Jersey
Essex County, New Jersey, Man Pleads Guilty to Armed Robbery of Passaic, New Jersey, ClubRead the Press Release
NEWARK, N.J. – A South Orange, New Jersey, man today admitted his participation in the September 2015 armed robbery of a club in Passaic, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Keontrae Lawrence, a/k/a “Taz,” 29, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an indictment charging him with one count of conspiracy to commit Hobbs Act robbery and one count of brandishing a firearm during a crime of violence.
According to the indictment and other documents filed in this case:
On Sept. 6, 2015, Lawrence and others agreed to rob a club in Passaic at gunpoint. During his plea hearing, Lawrence admitted that he knowingly and willfully participated in the robbery and that he and another conspirator brandished a firearm and threatened to use violence against a club employee. He also admitted that he and the other conspirator took $26,084 in cash from the club before fleeing in a getaway car.
The Hobbs Act conspiracy charge carries a statutory maximum of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The count of brandishing a firearm during a crime of violence carries a mandatory minimum sentence of seven years in prison and that sentence must be consecutive to any other sentence imposed. Lawrence’s sentencing is set for Jan. 5, 2018.
Lawrence was originally charged with Jimmy Cooper, a/k/a “Flip,” 32, of Irvington, New Jersey, and Shaheed Blamahsah, a/k/a “Aboo,” 30, of East Orange, New Jersey, in November 2016. Cooper and Lawrence were later indicted by a federal grand jury on March 24, 2017, for their roles in the robbery.
Blamahsah pleaded guilty to his role in the robbery and awaits sentencing. The charges against Cooper are still pending, and he is presumed innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and members of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation leading to today’s guilty plea. He also thanked the Passaic County Sheriff’s Office, the Passaic Police Department, and the Newark Police Division for their assistance.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the U.S. Attorney’s Office’s Criminal Division in Newark.
Defense counsel: John A. Azzarello Esq., Morristown, New Jersey
Escapee Sentenced to 27 Months for Stealing Identity of a Deceased ChildRead the Press Release
Jon Vincent, a/k/a “Nathan Laskoski,” 45, of Lansdale, Pennsylvania, was sentenced today to 27 months in prison, announced Acting United States Attorney Louis D. Lappen. Defendant Vincent pled guilty in May 2017 to Social Security fraud and aggravated identity theft crimes for his use of the identity of a deceased child for more than two decades. According to the facts admitted to by the defendant during his guilty plea hearing, after being convicted in the state of Texas, the defendant served a prison term, then escaped from a Texas halfway house in 1996. Shortly after his escape, the defendant stole the name of the deceased Nathan Laskoski after visiting a cemetery and finding that the decedent had a birthdate close to Vincent’s own birthdate, to craft a new identity. Vincent subsequently obtained the birth certificate for Laskoski, which he used to apply for a Social Security number in Laskoski’s name.
The defendant has been living using the deceased victim’s stolen identity since mid-1996, and used this identity for various purposes, including to obtain employment, open bank accounts, apply for loans, and to obtain government identification. His use of the stolen identity was discovered when a relative of the deceased victim discovered information on the ancestral website “Ancestry.com” indicating that someone was impersonating the decedent.
The case was investigated by the Social Security Administration, Office of Inspector General, the United States Postal Inspection Service, and the United States Department of Labor Office of Inspector General, with assistance from the Lansdale Police Department. It is being prosecuted by Assistant United States Attorney Amanda R. Reinitz.
El Dorado County Man Indicted for Distributing a Designer Drug that Caused the Death of a MinorRead the Press Release
SACRAMENTO, Calif. — On August 31, 2017, a federal grand jury returned a two-count indictment against Elijah Lee Richter, 26, of Camino, charging him with distribution of a controlled substance known as 25i-nBOME that caused death, and possession of a controlled substance, U.S. Attorney Phillip A. Talbert announced.
According to the indictment, on September 8, 2012, Richter knowingly and intentionally distributed 25i-nBOME, a controlled substance analogue, which caused the death of a juvenile named A.A.
This case is the product of an investigation by the El Dorado County Sheriff’s Department, El Dorado County District Attorney’s Office, and the Drug Enforcement Administration as part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. Assistant United States Attorneys Jason Hitt and Paul Hemesath are prosecuting the case.
If convicted on the distribution charge, Richter faces a maximum statutory penalty of life in prison, a mandatory minimum of 20 years in prison, and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Eagle Butte Man and Woman Charged with Distribution of a Controlled SubstanceRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man and woman have been indicted by a federal grand jury for Distribution of a Controlled Substance.
Perry Crow, Jr., a/k/a Perry Fiddler, age 22, and Estrella Fernandez, a/k/a Star Fernandez, age 20, were indicted on July 11, 2017. Crow appeared before U.S. Magistrate Judge Mark A. Moreno on August 30, 2017, and Fernandez appeared before U.S. Magistrate Judge Mark A. Moreno on September 1, 2017. They both pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, at least 3 years and up to life of supervised release, and up to $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on August 23, 2016, Crow knowingly and intentionally twice distributed methamphetamine, a Schedule II controlled substance. The Indictment also alleges that on August 31, 2016, both Crow and Fernandez knowingly and intentionally distributed methamphetamine.
The charges are merely accusations and Crow and Fernandez are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Crow and Fernandez were released on bond pending trial, which has been set for October 31, 2017.
Eagle Butte Man Indicted for Distribution of a Controlled SubstanceRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota man has been indicted by a federal grand jury for Distribution of a Controlled Substance.
Eunice Jamiel Smart, age 27, was indicted on April 12, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 30, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on three occasions, September 10, 22, and 23, 2016, in Eagle Butte, Smart knowingly and intentionally distributed methamphetamine, a Schedule II controlled substance.
The charges are merely accusations and Smart is presumed innocent until and unless proven guilty.
This case is being investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Smart was released on bond pending trial. A trial date has not been set.
Dracut Man Charged with Sex TraffickingRead the Press Release
BOSTON – A Dracut man was arrested and indicted yesterday on sex trafficking charges.
Reginald Abraham, 46, was indicted on three counts of sex trafficking by force, fraud or coercion. He was arrested yesterday and detained following an initial appearance in federal court in Boston today.
According to the indictment, at varying times between May 2015 and October 2016, Abraham trafficked three women in Massachusetts and Rhode Island, and used force and threats of force to coerce the women to engage in prostitution.
The charge of sex trafficking provides for a mandatory minimum sentence of 15 years and a maximum sentence of life in prison, five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Miranda Hooker of Weinreb’s Civil Rights Enforcement Team is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dominican Republic Citizen Sentenced to over 10 Years for Cocaine TraffickingRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Carlos Manuel Perez-Crisostomo a/k/a “Nelson Calderon,” 40, of Portland, was sentenced today in U.S. District Court by Judge George Z. Singal to 121 months in prison and four years of supervised release for conspiring to distribute cocaine and cocaine base, commonly known as “crack.” He pleaded guilty on November 21, 2016.
Court records reveal that between January and March 2016, the defendant distributed multi-ounce quantities of cocaine and crack from an apartment in Portland. On March 6, 2016, law enforcement agents seized about 468 grams of cocaine and 174 grams of crack from his apartment.
The defendant faced a higher guideline sentencing range because he falsely claimed to be a U.S. citizen when he entered his guilty plea under his alias “Nelson Calderon.” An investigation that followed his guilty plea revealed that the defendant is, in fact, a citizen of the Dominican Republic and was unlawfully in the United States at the time of the offense.
The investigation was conducted by the Federal Bureau of Investigation (FBI) and the U.S. Drug Enforcement Administration (DEA), in conjunction with the Southern Maine Gang Task Force, which is comprised of agents and officers from the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the DEA; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Portland, South Portland, and Lewiston Police Departments.
Dominican National Sentenced to Prison, Faces Deportation for Drug TraffickingRead the Press Release
PROVIDENCE – Francisco Fernandez, a/k/a Joel Antonio Santana Arias, 44, a Dominican national who resided in Lawrence, Mass., was sentenced today in U.S. District Court in Providence, R.I., to 46 months in federal prison for possessing with the intent to distribute nearly two kilograms of cocaine. The cocaine was discovered inside Fernandez’s vehicle by a Rhode Island State Police trooper during a traffic stop in February 2017.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Fernandez to serve 3 years supervised release upon completion of his prison term. At the conclusion of his term of incarceration, Fernandez will be turned over to U.S. Immigration and Customs Enforcement for deportation proceedings.
The U.S. Sentencing Guidelines range of imprisonment in this matter is 37- 46 months. The government recommended the court impose a sentence of 46 months in prison.
Fernandez pleaded guilty on June 19, 2017, to possession with the intent to distribute more than 500 grams of cocaine.
According to information presented to the court, on February 11, 2017, during a traffic stop of Fernandez’s vehicle on I-95 in West Greenwich by a Rhode Island State Police trooper, it was determined that Fernandez did not have a valid driver’s license. As forms of identification, Fernandez provided a Dominican Republic passport and a vehicle registration under the name of Joel Antonio Santana Arias. A further check determined that the name Joel Antonio Santana Arias was an alias for Francisco Fernandez, and revealed an active arrest warrant out of Massachusetts for Fernandez. It was also discovered that Fernandez had mutilated his fingerprints.
After Fernandez was taken into custody, a search of Mr. Fernandez’s vehicle by Rhode Island State Police revealed nearly two kilograms of cocaine inside a backpack, which was located on the front passenger floorboard.
Francisco Fernandez’s sentence is announced by Acting United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations for New England.
The case was prosecuted by Assistant U.S. Attorney Ly T. Chin, with the assistance of Assistant U.S. Attorney Zechariah Chafee.
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Department of Justice Announces Priority Consideration Criteria for COPS Office GrantsRead the Press Release
The Department of Justice today announced additional priority consideration criteria for FY 2017 Office of Community Oriented Policing Services (COPS Office) grants. Jurisdictions for FY 2017 were notified that their applications would receive additional points in the application scoring process if their agencies cooperate with federal law enforcement to address illegal immigration, ensuring that federal immigration authorities have the full ability to enforce immigration laws and keep our communities safe.
“Cities and states that cooperate with federal law enforcement make all of us safer by helping remove dangerous criminals from our communities,” Attorney General Jeff Sessions said. “This cooperation is supported by the vast majority of the American people, and jurisdictions with these policies in place should be acknowledged for their commitment to ending violent crime, including violent crime stemming from illegal immigration. Today, the Justice Department announced it will recognize jurisdictions that commit to the rule of law by awarding additional points in the application scoring process for COPS Office grants. My hope is that this recognition will further incentivize every jurisdiction in America to collaborate with federal law enforcement and help us make this country safer.”
Court Orders Hermosa Man to Pay $222,362.11 for Defrauding the National Science FoundationRead the Press Release
National Science Foundation (“NSF”) is a United States agency created to support basic scientific research by providing grants, to individuals, businesses, academic and nonprofit institutions. Scott Thompson, d/b/a as Isosceles, LLC., submitted a grant proposal to study solar cells and develop technology to harvest light and produce renewable energy. Thompson specifically represented that a Post-Doctoral foreign national student of electrical engineering at the South Dakota State University (SDSU) was the principal scientific investigator on the project. Relying on Thompson’s statements, the NSF awarded grant funding. Thompson then represented that the student had worked more than 160 hours on the project, and drew down grant funds. Thompson knew his representations were untrue because he never met or hired the student. He used the grant funds to pay his personal bills. Thompson was found guilty, after a jury trial, of two counts of making false claims and two counts of submitting false documents to the NSF in violation of 18 U.S.C. § 287 and § 1001, and was ordered to pay restitution totaling $87,637.89 to the NSF and SDSU (United States v. Scott Thompson, CR 11-50054).
United States Attorney’s Office then brought a civil action pursuant to the False Claims Act (FCA), 31 U.S.C. § 3729(a)(1), which imposes liability on persons and companies who knowingly submit false claims to the government. Persons who submit a false claim must pay to the United States a civil penalty for each false claim, plus three times the amount of damages the government sustained. Pursuant to the FCA, the Court ordered Thompson to pay a civil judgment of $222,362.11 to the United States. In doing so, the Court stated that Thompson’s “convictions preclude him from denying the essential elements of the government’s FCA claim” and the jury found that Thompson “knowingly presented false claims to the government in order to receive funds from the NSF.” (United States v. Scott Thompson, CIV 15-5060-JLV, Doc. 44).
Criminal restitution, penalties, and debts obtained by fraud are not dischargeable in bankruptcy, 11 U.S.C. § 523. The United States Attorney’s Office places a high priority on criminal and civil enforcement in cases involving all types of fraud committed against the government, including grant fraud, and works with various law enforcement agencies to identify and investigate these matters.
The investigation was conducted by the National Science Foundation Office of Inspector General. Assistant United States Attorneys Sarah Collins, Eric Kelderman, and Cheryl Schrempp DuPris prosecuted the criminal and civil cases respectively.
Connecticut Substance Abuse Treatment Provider Pays $627K to Settle False Claims Act AllegationsRead the Press Release
United States Attorney Deirdre M. Daly and Connecticut Attorney General George Jepsen today announced that a Connecticut substance abuse treatment provider and its former CEO will pay $627,000 to resolve allegations that they violated the federal and state False Claims Acts.
THE HARTFORD DISPENSARY and THE HARTFORD DISPENSARY ENDOWMENT CORPORATION (collectively, “Hartford Dispensary”) is a healthcare organization that provides behavioral health and substance use disorder treatment services. It operates various outpatient treatment programs through its nine clinics located in Connecticut. PAUL McLAUGHLIN is the former President and Chief Executive Officer of Hartford Dispensary.
To be certified as an opioid treatment provider (OTP), the OTP must formally designate a medical director, who assumes responsibility for administering all medical services performed by the OTP. The medical director is also responsible for ensuring that the OTP is in compliance with all applicable federal, state, and local laws and regulations.
The government alleges that Hartford Dispensary and McLaughlin made repeated false representations and false certifications to federal and state authorities that Hartford Dispensary had a medical director, as defined by relevant regulations, who was performing the duties and responsibilities required by federal and state law. The government further alleges that these false representations and certifications were material to false or fraudulent claims submitted to the Medicaid program.
To resolve the government’s allegations under the federal and state False Claims Acts, Hartford Dispensary and McLaughlin have agreed to pay $627,000, which covers conduct occurring from January 1, 2009 through November 20, 2015.
A complaint against Hartford Dispensary was filed in the U.S. District Court in Connecticut under the qui tam, or whistleblower, provisions of the both the federal and state False Claims Acts. The relators (whistleblowers), Russell Buchner and Charles Hatheway, former employees of Hartford Dispensary, will receive a share of the proceeds of the settlement in the amount of $112,860. The whistleblower provisions of both the federal and state False Claims Acts provide that the whistleblower is entitled to receive a percentage of the proceeds of any judgment or settlement recovered by the government.
“Health care providers must be completely honest when certifying information to the government, and the failure to do so will have serious consequences,” stated U.S. Attorney Daly. “The U.S. Attorney’s office is committed to vigorously pursuing health care providers who make false representations to federal health care programs.”
“Medicaid providers are required to comply with the applicable rules of the program and to certify honestly their compliance,” said Attorney General Jepsen. “I’m grateful to our state and federal partners for their continued cooperation and coordination as we work to protect our taxpayer-funded healthcare programs.”
This matter was investigated by the Office of Inspector General for the U.S. Department of Health and Human Services. The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot and Auditor Kevin Saunders, and by Assistant Attorneys General Michael Cole and Gregory O’Connell of the Connecticut Office of the Attorney General.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
Compensation Remains Available to 9-11 Responders and Survivors Affected by Their Exposure; Fund Tops $3 Billion in AwardsRead the Press Release
Each year, as the anniversary of the Sept. 11, 2001, terrorist attacks approaches, the country is reminded of the unprecedented losses suffered. The September 11th Victim Compensation Fund (VCF) acknowledges the important milestones reached in providing support to victims and families and is especially aware of the lives that continue to be affected. The anniversary is a time for the VCF to reaffirm its commitment to the important work that still lies ahead, and to maintain strong and steady progress as the VCF seeks to award compensation to those who continue to suffer. Today, the VCF releases its statistics report and informs the community on its outreach efforts.
The VCF’s statistics report details the enormous strides the VCF has made since its reopening in 2011 and its reauthorization in 2015. As of Aug. 31, the VCF has rendered over 14,000 compensation determinations, including initial awards on new claims, and revised awards on claims with amendments or appeals. These determinations total over $3 billion awarded to VCF claimants, which exceeds the original $2.775 billion authorized by Congress when the VCF reopened in 2011. In all, the VCF has compensated claims from more than 11,500 responders to the attacks in New York City, at the Pentagon, and at the Shanksville site, as well as more than 2,400 others who lived, worked, or traveled through areas of lower Manhattan and suffered physical health conditions as a result of their exposure to debris and toxins generated by the attacks and their aftermath.
“I am keenly aware that each and every one of these claims represents a life forever-changed,” said VCF Special Master Rupa Bhattacharyya. “I am also aware of the tremendous need for compensation that exists in the 9/11 community. We are committed to making improvements wherever possible in order to process claims as quickly and efficiently as possible, without compromising accuracy, thoroughness, or fairness. I am pleased to report that we continue to make progress in rendering decisions on the oldest claims, and are now issuing awards on claims filed in the later part of 2015. Our efforts to accelerate the speed of claims processing are ongoing and an absolute priority.”
The VCF is also increasing its efforts to identify those who may be eligible for compensation because they suffer physical health effects as a result of their exposure but are not aware of the VCF, and is working with partners in the community to extend its reach. Information regarding the VCF was recently mailed to the enrolled membership of the World Trade Center Health Program. The VCF is participating in several events this week to increase awareness of and answer questions regarding the VCF. These include a Facebook Live Event hosted by 9/11 Health Watch, meetings of the WTC Health Program Responder and Survivor Steering Committees, a town hall hosted by United We Stand of New York and the Voices of 9/11 16th Annual Day of Remembrance Information Forum.
VCF Special Master Bhattacharyya added, “The anniversary is always a time to look back and commemorate the lives lost or forever changed by 9/11. It is also a time to look forward and assure the members of the 9/11 community that they are not forgotten, and that as a nation, we are committed to providing help to those who need it. I’m honored to be in a position to so directly serve this community, and, along with my dedicated and talented team, remain deeply committed to ongoing progress.”
The September 11th Victim Compensation Fund was created to provide compensation for any individual (or a personal representative of a deceased individual) who suffered physical harm or was killed as a result of the terrorist-related aircraft crashes of Sept. 11, 2001 or the debris removal efforts that took place in the immediate aftermath of those crashes. The original VCF operated from 2001 to 2004. On Jan. 2, 2011, President Obama signed into law the James Zadroga 9/11 Health and Compensation Act of 2010 (Zadroga Act). Title II of the Zadroga Act reactivated the Sept. 11th Victim Compensation Fund. The reactivated VCF opened in October 2011 and was authorized to operate for a period of five years, ending in October 2016. On Dec. 18, 2015, President Obama signed into law a bill reauthorizing the James Zadroga 9/11 Health and Compensation Act of 2010. This included the reauthorization of the VCF. The new law extends the VCF for five years, allowing individuals to submit their claims until Dec. 18, 2020. The law also includes some important changes to the VCF’s policies and procedures for evaluating claims and calculating each claimant’s loss.
For additional information about how to file a claim, please visit the “How to File a Claim” page on the VCF’s website at www.vcf.gov and information on policies and procedures can be obtained at https://www.vcf.gov/pdf/VCFPolicy.pdf. If you have any questions about the claim form, the website, or the VCF process, please contact the VCF’s toll-free Helpline at 1-855-885-1555.
Colombian National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON – A Colombian national was sentenced today in federal court in Boston for a federal immigration crime.
Dorance Serna-Bedoya, 50, was sentenced today by U.S. District Court Judge George A. O’Toole Jr. to 27 months in prison and three years of supervised release. Serna-Bedoya will be subject to deportation proceedings upon completion of his sentence. In May 2017, Serna-Bedoya pleaded guilty to unlawful reentry of a deported alien.
In 1993, Serna-Bedoya was convicted in Suffolk Superior Court of distribution of cocaine, and was sentenced to 10-11 years in jail. While serving the Suffolk Superior Court sentence, Serna-Bedoya was convicted in U.S. District Court for the Northern District of New York of drug distribution and sentenced to 30 additional months in jail. Upon completion of these sentences, Serna-Bedoya was placed into removal proceedings and on Jan. 6, 2006, he was deported to Colombia. On Oct. 25, 2016, Serna-Bedoya was arrested in Massachusetts using a forged Pennsylvania driver’s license. Officers obtained Serna-Bedoya’s fingerprints and found them to match those contained in Serna-Bedoya’s immigration file.
Acting United States Attorney William D. Weinreb; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit prosecuted the case.
Citizen of Dominican Republic Pleads Guilty to Illegal Reentry Following a Prior DeportationRead the Press Release
SYRACUSE, NEW YORK – Yesterday, Radhames Perez pled guilty in federal court in Syracuse to illegally re-entering the United States after having been previously deported from the United States following a felony drug conviction, announced Acting United States Attorney Grant C. Jaquith.
Perez, a citizen of the Dominican Republic, admitted that he was deported from the United States in December 2003, following his conviction in New York County Supreme Court for criminal sale of a controlled substance in the second degree, which constitutes an aggravated felony under U.S. immigration law. The defendant was found in the United States again in June 2017 after he was arrested in Frankfort, New York, on an unrelated New York State criminal charge.
The defendant faces up to 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. He also faces deportation. He will be sentenced in Syracuse on November 6, 2017, by United States District Judge Brenda K. Sannes. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the United States Department of Homeland Security, Immigration and Customs Enforcement, Office of Enforcement and Removal Operations, and it is being prosecuted by Assistant U.S. Attorney Michael F. Perry.
Chief Executive Officer of International Metallurgical Company Sentenced to 57 Months for Conspiring to Export Specialty Metals to IranRead the Press Release
Erdal Kuyumcu, 45, of Woodside, N.Y., and the chief executive officer of the Woodside-based Global Metallurgy, LLC, was sentenced to 57 months in prison following his June 14, 2016 guilty plea to conspiracy to violate the International Emergency Economic Powers Act (IEEPA) by exporting specialty metals from the U.S. to Iran.
Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney Bridget M. Rohde for the Eastern District of New York, Assistant Director in Charge William F. Sweeney, Jr. of the FBI’s New York Field Division and Special Agent in Charge Jonathan Carson of the U.S. Department of Commerce’s Bureau of Industry and Security, Office of Export Enforcement’s New York Field Office made the announcement.
“With this sentence, the defendant is being held accountable for conspiring with others to send specialized U.S. technology – over a thousand pounds of metallic powder with nuclear and missile applications – to Iran via Turkey,” said Acting Assistant Attorney General Boente. “The National Security Division will aggressively prosecute those who seek to unlawfully provide dangerous material and technology to Iran, a state sponsor of terrorism.”
“This Office, together with our law enforcement partners, will continue to use every tool available, including U.S. export laws, to prevent goods with potentially dangerous uses from falling into the wrong hands and jeopardizing our national security,” said Acting U.S. Attorney Rohde. “Here, the defendant exported a metallic powder that has potential military and nuclear applications to Iran, a state sponsor of terrorism.”
“Laws exist to keep groups and governments from buying materials in support of doing harm. Iran has demonstrated in this case it is willing to use whatever means necessary to hide the end user of the materials, to include utilizing a U.S. citizen to carry out their proliferating activities,” stated Assistant Director in Charge Sweeney. “The FBI New York and its foreign and domestic partners work every day to investigate and interdict adversaries from procuring these items and materials to build nuclear and other weapons of mass destruction, which could end up in dangerous hands.”
“Today's sentencing is the result of outstanding collaborative work by the Justice Department, the Commerce Department and the FBI to break up a network whose aim was to illegally ship sophisticated U.S.-origin technology to Iran,” said Special Agent in Charge Carson. “We will continue to pursue violators wherever they may be.”
According court documents, Kuyumcu, a U.S. citizen, conspired to export from the U.S. to Iran a metallic powder primarily composed of cobalt and nickel, without having obtained the required license from the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC). As established during a two-day presentencing evidentiary hearing, the metallic powder has potential military and nuclear applications. Such specialized metals are regulated by the U.S. Department of Commerce to combat nuclear proliferation and terrorism, and exporting them without the required license is illegal.
In furtherance of the illegal scheme, Kuyumcu and others plotted to obtain more than one thousand pounds of the metallic powder from a U.S.-based supplier. To hide the true destination of the goods from the supplier, Kuyumcu arranged for the metallic powder to be shipped first to Turkey and then to Iran. Kuyumcu used coded language when discussing shipment of the powder with a Turkey-based co-conspirator, such as referring to Iran as the “neighbor.” Shortly after one of the shipments was sent from Turkey to Iran, a steel company in Iran sent a letter-sized package to Kuyumcu’s Turkey-based co-conspirator. The Iranian steel company had the same address as an OFAC-designated Iranian entity under the Weapons of Mass Destruction proliferators sanctions program that was associated with Iran’s nuclear and ballistic missile programs.
Assistant U.S. Attorneys Tiana A. Demas and Ameet B. Kabrawala and Trial Attorney David Recker from the National Security Division’s Counterintelligence and Export Control Section are prosecuting this case.
Charleston felon sentenced to federal prison for gun crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced to federal prison today for a gun charge, announced United States Attorney Carol Casto. Jermain Santell Hill, 38, previously pleaded guilty to being a felon in possession of a firearm. In today’s hearing, he was sentenced to three years and a month in federal prison for that offense. He was also sentenced to an additional eight months in prison for violating his federal supervised release. The sentences will be served consecutively.
In the early morning hours of October 15, 2016, in Charleston, officers with the Charleston Police Department were conducting a traffic stop when they heard a nearby gunshot. As officers ran towards the sound of the gunshot, one of the officers observed Hill leaving the area. The officer pursued Hill to a location behind a residence on Main Street and saw Hill drop an object. After Hill was detained, officers checked that location and recovered a loaded Kel-Tec .380 caliber pistol. Hill was prohibited from possessing any firearm under federal law because of a 2015 conviction in the United States District Court for the Southern District of West Virginia for possession with intent to distribute crack.
The Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald is responsible for the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This case was prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime.
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Champaign Man Indicted on Child Pornography ChargesRead the Press Release
URBANA, Ill. – A Champaign, Ill., man, Jaime Breckenridge, 33, of the 2200 Block of S. First Street, is scheduled to appear in federal court in Urbana on Sept. 13, 2017, for arraignment on charges of distribution and possession of child pornography.
The grand jury returned the indictment on Sept. 5, that alleges Breckenridge distributed child pornography on Sept. 27, 2016, using a facility of interstate or foreign commerce. The indictment also alleges that on July 28, 2017, Breckenridge possessed computer processing units, hard drive and other digital storage materials, which contain images and videos of child pornography.
Breckenridge was arrested on Aug. 5, 2017, in Marion, Ill., after being charged in a federal criminal complaint with the same offenses. During a court appearance on Aug. 7, 2017, before U.S. Magistrate Reona J. Daly, in Benton, Ill., Breckenridge was ordered detained in the custody of the U.S. Marshals Service.
If convicted, the statutory maximum penalty for distribution of child pornography is 20 years in prison, and a fine of up to $250,000; the penalty for possession of child pornography is up to 10 years in prison, and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Elly M. Peirson. The charges are the result of an investigation by the Federal Bureau of Investigation.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The 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 U.S. Attorneys= Offices and the Criminal Division=s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Cambria County Store Owner to Spend 18 Months in Prison for Money Laundering SchemeRead the Press Release
JOHNSTOWN, Pa. - A resident of Portage, Pa. has been sentenced in federal court in Johnstown to 18 months in prison, and three years’ supervised release, on her conviction of conspiring to commit money laundering, Acting United States Attorney Soo C. Song announced today.
United States District Judge Kim R. Gibson imposed the sentence on Tonia Vaughn, 41, of Portage, Pa.
Tonia Vaughn, along with her husband, Gary Vaughn, were the owners and operators of Gary’s Steals and Deals, a business located in Portage, that dealt in new and used merchandise. The way the business operated was for “customers” to come to the store with new stolen items of merchandise (the great majority of which were still in the package from local stores) and present it for purchase by Gary’s. Tonia Vaughn and the store clerks, knowing the merchandise was stolen, would then give a percentage of the value for the new stolen items to the “customer.” The great majority of this business involved the same “customers” bringing in dozens of identical, “new in package” stolen items (i.e., razor blades, pet products, teeth whitening strips, ink cartridges, jackets, Lego sets, etc.) on the same day or subsequent days, which were purchased by Gary’s Steals and Deals. The stolen new merchandise was then listed for sale on Ebay or Amazon. Once purchased, the stolen merchandise was then shipped to the purchaser via use of the mail. The money received from the sale of the stolen merchandise over the internet was used to either purchase new stolen items from “customers” coming into the store, or was received by the employees as proceeds of this conduct.
Assistant U.S. Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation, Laurel Highlands Resident Agency, conducted the investigation that led to the prosecution of Vaughn.
California Resident Sentenced for Conspiracy to Commit Healthcare FraudRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that SUNYUP KIM, age 41, of Granada Hills, CA, was sentenced today after previously pleading guilty to conspiracy to commit healthcare fraud.
U.S. District Judge Eldon E. Fallon sentenced KIM to 1 year and 1 day in prison along with $93,927 in restitution.
On June 11, 2015, KIM was indicted along with three other defendants in an 8-count indictment charging approximately $38 million in Medicare fraud.
According to court documents, the $38 million fraud scheme centering on the distribution of "talking glucose meters" that were not medically necessary and were often not even requested. KIM, along with the other 3 defendants, operated Care Concepts, LLC, which was based in Metairie, and Choice Home Medical Equipment and Supplies (Choice), which was based in Chatsworth, California. KIM and the other 3 defendants, paid kickbacks to workers at call centers in California and South Carolina, from which operators would cold-call Medicare recipients to convince them to accept talking glucose meters and related supplies. From 2007 through 2015, KIM and the other 3 defendants caused thousands of claims to be submitted to Medicare through Care Concepts and Choice, virtually all of which were fraudulent.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the Office of Inspector General for the United States Department of Health and Human Services in investigating this matter. Assistant U. S. Attorneys Patrice Harris Sullivan and Jordan Ginsberg were in charge of the prosecution.
California Man Admits Role in Heroin Distribution SchemeRead the Press Release
NEWARK, N.J. – A California man who swallowed plastic bags containing approximately 600 grams of heroin admitted today that he possessed the drug with intent to distribute it, Acting U.S. Attorney William E. Fitzpatrick announced.
Omar Vazques, 24, of Bakersfield, California, pleaded guilty before U.S. District Court Judge John Michael Vazquez in Newark federal court to an information charging him with one count of possession of heroin with intent to distribute and distribution of heroin.
According to documents filed in this case and statements made in court:
On Sept. 15, 2016, Vazques landed at Newark Liberty International Airport on a commercial flight after having swallowed approximately 81 “pellets” of heroin wrapped in plastic baggies. Vazques intended to distribute the heroin after his arrival but was apprehended by law enforcement authorities, who escorted Vazques to a hospital. Vazques underwent emergency surgery after hospital staff discovered that one of the baggies had ruptured. A co-defendant, Arturo Gonzales, who arrived on the same flight and had also swallowed heroin with the intent to distribute it, pleaded guilty before Judge Vazquez on June 26, 2017.
The drug distribution charge to which Vazques pleaded guilty carries a maximum prison sentence of 20 years and a maximum fine of $1 million. Sentencing is scheduled for Dec. 11, 2017.
U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, and the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski, in Newark for the investigation that led to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the U.S. Attorney’s Office Organized Crime/Drug Enforcement Task Force Unit.
California Man Admits Laundering Proceeds from Heroin Trafficking OrganizationRead the Press Release
TRENTON, N.J. – An Anaheim, California, man today admitted laundering money on behalf of an international drug trafficking organization, Acting U.S. Attorney William E. Fitzpatrick announced.
Harry Madrid, 26, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to Count Two of an indictment charging him with conspiracy to launder money. Madrid was previously arrested in November 2014 in Illinois.
According to documents filed in this case and statements made in court:
From June 2014 through November 2014, Madrid conspired with other members of a international drug trafficking organization, which included cells operating in New Jersey, to launder more than $150,000 in United States currency related to the distribution of heroin.
One of Madrid’s co-defendants, Henry Zamora, pleaded guilty before Judge Sheridan on Aug. 31, 2017 to conspiring to distribute four kilograms of heroin that were recovered from a hidden compartment in his vehicle.
The money laundering charge to which Madrid pleaded guilty carries a maximum potential penalty of 20 years in prison and a $500,000 fine. Sentencing is set for Dec. 14, 2017.
Acting U.S. Attorney Fitzpatrick credited the Drug Enforcement Administration (DEA)’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski, officers of the N.J. State Police, under the direction of Superintendent Col. Joseph R. Fuentes, and officers from the DeKalb, Illinois, police department, under the direction of Chief Gene Lowrey, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Thomas S. Kearney and Assistant U.S. Attorney Jamari Buxton of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
CEO of International Metallurgical Company Sentenced to 57 Months in Prison for Conspiring to Export Specialty Metals to IranRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, New York, Erdal Kuyumcu, the chief executive officer of Global Metallurgy, LLC, based in Woodside, New York, was sentenced to 57 months in prison following his June 14, 2016 guilty plea to conspiracy to violate the International Emergency Economic Powers Act by exporting specialty metals from the United States to Iran. The sentencing proceeding was held before Chief United States District Judge Dora L. Irizarry.
The sentence was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, Dana J. Boente, Acting Assistant Attorney General for National Security, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), and Jonathan Carson, Special Agent-in-Charge of the U.S. Department of Commerce’s Bureau of Industry and Security, Office of Export Enforcement’s New York Field Office.
“This Office, together with our law enforcement partners, will continue to use every tool available, including U.S. export laws, to prevent goods with potentially dangerous uses from falling into the wrong hands and jeopardizing our national security,” stated Acting United States Attorney Rohde. “Here, the defendant exported a metallic powder that has potential military and nuclear applications to Iran, a state sponsor of terrorism.”
“With this sentence, the defendant is being held accountable for conspiring with others to send specialized U.S. technology – over a thousand pounds of metallic powder with nuclear and missile applications – to Iran via Turkey,” stated Acting Assistant Attorney General Boente. “The National Security Division will aggressively prosecute those who seek to unlawfully provide dangerous material and technology to Iran, a state sponsor of terrorism.”
“Laws exist to keep groups and governments from buying materials in support of doing harm. Iran has demonstrated in this case it is willing to use whatever means necessary to hide the end user of the materials, to include utilizing a U.S. citizen to carry out their proliferating activities,” stated Assistant Director-in-Charge Sweeney. “The FBI New York and its foreign and domestic partners work every day to investigate and interdict adversaries from procuring these items and materials to build nuclear and other weapons of mass destruction, which could end up in dangerous hands.”
“Today's sentencing is the result of outstanding collaborative work by the Justice Department, the Commerce Department and the FBI to break up a network whose aim was to illegally ship sophisticated U.S.-origin technology to Iran,” said Special Agent-in-Charge Carson. “We will continue to pursue violators wherever they may be.”
According to court documents, Kuyumcu, a U.S. citizen, conspired to export from the United States to Iran a metallic powder primarily composed of cobalt and nickel, without having obtained the required license from the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC). As established during a two-day presentencing evidentiary hearing, the metallic powder has potential military and nuclear applications. Such specialized metals are regulated by the U.S. Department of Commerce to combat nuclear proliferation and terrorism, and exporting them without the required license is illegal.
In furtherance of the illegal scheme, Kuyumcu and others plotted to obtain more than 1,000 pounds of the metallic powder from a U.S.-based supplier. To hide the true destination of the goods from the supplier, Kuyumcu arranged for the metallic powder to be shipped first to Turkey and then to Iran. Kuyumcu used coded language when discussing shipment of the powder with a Turkey-based co-conspirator, such as referring to Iran as the “neighbor.” Shortly after one of the shipments was sent from Turkey to Iran, a steel company in Iran sent a letter-sized package to Kuyumcu’s Turkey-based co-conspirator. The Iranian steel company had the same address as an OFAC-designated Iranian entity under the Weapons of Mass Destruction proliferators sanctions program that was associated with Iran’s nuclear and ballistic missile programs.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant U.S. Attorneys Tiana A. Demas and Ameet B. Kabrawala, and Trial Attorney David Recker from the National Security Division’s Counterintelligence and Export Control Section, are in charge of the prosecution.
The Defendant:
ERDAL KUYUMCU
Age: 45
Woodside, New York
E.D.N.Y. Docket No. 16-CR-308 (DLI)
Bronx Man Charged with Providing Material Support to Isis by Facilitating Another Individual’s Travel to Join Isis AbroadRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Dana J. Boente, the Acting Assistant Attorney General for National Security, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Commissioner of the Police Department for the City of New York (“NYPD”), announced the filing of a Superseding Indictment charging ADAM RAISHANI, a/k/a “Saddam Mohamed Raishani,” with conspiring to provide, providing and attempting to provide, and aiding and abetting the provision and attempted provision of material support to the Islamic State of Iraq and al-Sham (“ISIS” or the “Islamic State”), a designated foreign terrorist organization, by allegedly facilitating another ISIS supporter’s travel to join ISIS overseas. RAISHANI had already been charged, in an Indictment filed on June 29, 2017, with attempting to provide material support to ISIS, by allegedly attempting to travel abroad to join ISIS himself. RAISHANI was arrested on June 21, 2017, at John F. Kennedy International Airport (“JFK Airport”) in Queens, New York, as he allegedly attempted to travel overseas to join ISIS. The Superseding Indictment adds charges against RAISHANI for allegedly agreeing to facilitate, and facilitating another individual’s travel to join ISIS abroad in the fall of 2015. The case is assigned to U.S. District Judge Gregory H. Woods.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As alleged, Adam Raishani provided material support to ISIS by helping a co-conspirator travel abroad to fight for that terrorist organization. A year later, Raishani himself attempted to travel overseas to join ISIS. Fortunately through the outstanding work of law enforcement, Raishani’s travel plans were detected and thwarted before he was able to inflict any further harm.”
Acting Assistant Attorney General J. Dana Boente said: “According to the charges, Raishani conspired to provide material support to ISIS and helped another individual travel to join the designated terrorist organization before attempting to do the same. The National Security Division’s highest priority is countering terrorist threats, and we will continue to work to stem the flow of foreign fighters abroad and bring to justice those who conspire to provide material support to designated foreign terrorist organizations. I would like to thank all of the agents, analysts and prosecutors who are responsible for this case.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “As we allege, Raishani not only provided support to another individual located in the US who was determined to join ISIS overseas, but arranged for his departure, and expressed disappointment for not being able to travel with that individual at that time. Along with our partners on the Joint Terrorism Task Force, we'll continue to identify those who support terrorist organizations and their agenda in any way, as we've done here today.”
NYPD Commissioner James P. O’Neill said: “Over the past several weeks, there have been a number of defendants charged with helping others travel to Syria or prepare to engage in their own Jihad,” said Police Commissioner James P. O’Neill. “This is the latest—troubling—example. My thanks for the detectives and agents whose investigation on the original Joint Terrorism Task Force here in Manhattan led to today’s arrests.”
As alleged in the Superseding Indictment filed today in Manhattan federal court and the criminal Complaint[1] initially filed against RAISHANI:
Beginning in at least the fall of 2015, RAISHANI conspired with another ISIS supporter (“CC-1”) to provide material support to ISIS by means of CC-1 traveling abroad to join and fight for ISIS. On or about October 30, 2015, CC-1 departed from JFK Airport for Istanbul, Turkey. RAISHANI arranged for the transportation of CC-1 from the Bronx, New York, to JFK Airport, and RAISHANI accompanied CC-1 from the Bronx to JFK Airport.
RAISHANI continued communicating with CC-1 following CC-1’s departure. For example, on or about January 2, 2016, RAISHANI sent an email to CC-1 stating: “Glad tidings brother. Its [sic] been some time since your voyage. I pray to Allah The ALL MIGHTY to grant you success. Until next time.”[2] On or about April 1, 2016, RAISHANI sent another email to CC-1 stating: “I hope Allah has bestowed you what you were seeking. . . . May Allah grant you sincere and clean intentions and make you among the righteous in Janatal Firdaus [a reference to Islamic paradise]. . . . Please return this email and respond to what we agreed upon before your departure. Until next time.” On or about May 3, 2016, CC-1 responded to RAISHANI, informing RAISHANI that CC-1 was “fine and well,” that CC-1 “wished you [RAISHANI] were here with me,” and that “here we are living with izza [honor].”
Also in May 2016, CC-1 posted content on a particular social media application (“Application-1”) indicating that CC-1 was living in the Islamic State and fighting on its behalf. For example, CC-1 sent messages to another user of Application-1 stating: “I’m living in the Islamic state safely and secure by the permission of Allah,” “[h]ere we are fighting the kuffars [non-believers],” and “I left the land of kuffars now I’m living in the khilafah [the caliphate].” CC-1 also posted a photograph on Application-1 that shows CC-1 carrying an assault rifle and a flag representative of ISIS.
Between January and June of 2017, RAISHANI engaged in a series of meetings with an individual who was, unbeknownst to RAISHANI, a confidential source working at the direction of law enforcement (the “CS”). In the course of those meetings, RAISHANI admitted to the CS that, some time ago, he had helped another person to travel overseas to join the Islamic State. RAISHANI told the CS, among other things, that he took that person to JFK Airport and gave him money on the day of his departure for the Islamic State. RAISHANI expressed regret to the CS at not having traveled himself to join ISIS at that time, and RAISHANI revealed that, as of April 2017, he was actively planning to travel abroad to join and serve ISIS. RAISHANI indicated that he aspired to join ISIS in Syria and that he aimed to travel before the end of Ramadan, an Islamic holy month that ran from approximately May 26 through June 24 of this year. In June 2017, RAISHANI made preparations to leave, including by paying off debts and purchasing clothing that he intended to wear for training with ISIS overseas. On June 21, 2017, RAISHANI attempted to board a flight bound for Turkey (via Portugal) at JFK Airport, where he was arrested by the FBI and the NYPD.
* * *
RAISHANI, 30, of the Bronx, New York, is charged in the Superseding Indictment with three counts of violating Title 18, United States Code, Section 2339B, by allegedly conspiring to provide, providing and attempting to provide, and aiding and abetting the provision and attempted provision of material support to a designated foreign terrorist organization. Each count carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Kim praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD, and the NYPD’s Intelligence Division. Mr. Kim also thanked the Counterterrorism Section of the Department of Justice’s National Security Division, as well as the New York Office of U.S. Customs and Border Protection.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys George D. Turner, Sidhardha Kamaraju, and Jane Kim are in charge of the prosecution, with assistance from Trial Attorney Kevin C. Nunnally of the Counterterrorism Section.
The charges contained in the Superseding Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment and Complaint, and the descriptions of the Superseding Indictment and Complaint set forth below, are only allegations, and every fact described should be treated as an allegation.
[2] Communications and conversations discussed herein are described in substance and in part.
Bristol Man Charged with Distributing Heroin and Crack to Canton Overdose VictimRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury in New Haven returned an indictment today charging ROBERT DEWAYNE WATKINS, also known as “D,” 42, of Bristol, with one count of possession with intent to distribute, and distribution of, heroin and cocaine base (“crack”).
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
As alleged in court documents, on March 18, 2017, Canton Police responded to a suspected overdose incident at a Collinsville restaurant and encountered a 29-year-old male in a bathroom of the restaurant. After unsuccessful resuscitation efforts, the victim was pronounced deceased. The investigation, which has included witness interviews and analysis of the victim’s cellphone, revealed that the victim purchased heroin and crack cocaine from WATKINS shortly before his death.
The Office of the Chief Medical Examiner has determined that the victim died from acute intoxication due to the combined effects of fentanyl, heroin, cocaine, amphetamine and alprazolam.
WATKINS has been detained since his arrest on a criminal complaint on July 25, 2017.
If convicted of the charge, WATKINS faces a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Canton Police Department. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe and Fairfield Police Departments, and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Bluffton Woman Enters Guilty Plea in Federal CourtRead the Press Release
Charleston, South Carolina ---- United States Attorney Beth Drake stated today that Lecelle Montgomery, age 32, of Bluffton, S.C., pled guilty in federal court in Charleston, to Bank Fraud, a violation of Title 18, United States Code, Section 1344. United States District Judge Richard Gergel, of Charleston, accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office. Montgomery faces up to thirty years in federal prison.
Evidence presented at the change of plea hearing established that beginning in or about 2008 and continuing up to at least in or around late 2012, Montgomery, a former financial adviser, began receiving funds from individuals living in the Bluffton area of South Carolina, ostensibly to invest on their behalf. Instead of investing the money, however, Montgomery admitted to spending it to either gamble or use it for personal expenses.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Matt Austin of the Charleston office handled the case.
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Bates Family Sentenced to 627 Months Imprisonment for Gold and Silver Ponzi SchemeRead the Press Release
Memphis, TN – Bates family members have been sentenced for their roles in a Ponzi scheme that defrauded victims of more than twenty-one million dollars. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentences today.
In May 2017, a federal jury found Larry Bates; his two sons, Chuck and Robert Bates; and Kinsey Bates, the wife of Robert Bates, guilty on all counts set forth in a federal indictment that charged mail and wire fraud and conspiracy. The charges rose out of the defendants running a decade long Ponzi scheme in the buying and selling of gold and silver coins. The proof at trial showed that the defendants were able to accomplish the fraud through First American Monetary Consultants, a Colorado corporation, which had offices in Memphis, Tennessee and Ft. Collins, Colorado. The proof showed that more than three hundred and sixty victims lost more than twenty-one million dollars. The scheme continued from as early as 2002 through October of 2013.
"Today, justice has finally been served to members of the Bates Family as a result of their decade long Ponzi scheme. Their corruption ploy -- which devastated and destroyed the lives of many hard-working individuals -- ended today. I hope this will serve as a clear --cut message that the United States Attorney’s Office and its law enforcement partners will work tirelessly to expose and bring to justice people responsible for such acts of greed and corruption." said Larry Laurenzi, Acting United States Attorney, Western District of Tennessee.
At trial, the proof showed that the defendants promoted their business through a variety of Christian television and radio programs, including the Jim Baker Show and Jewish Voice. Larry Bates, a self-proclaimed doctor in economics, held conferences across the United States on the upcoming economic collapse and the need to invest in precious metals. Between 2007 and 2013, customers gave more than eighty-seven million dollars
to First American Monetary Consultants for the purpose of buying precious metals. During this same period, the proof showed the defendants diverted customers’ monies that were to be used to purchase their precious metals to the defendants own use and benefit. By 2009, testimony at trial showed that the company had more than twenty-six million dollars in unfilled customer orders.
The proof showed that the defendants used the customers’ money for a variety of purposes other than purchase of customers’ metals. Larry Bates diverted more than four million dollars to the creation of International Radio Network, a Christian radio network. Other monies were diverted to trading in commodities and the building of a ten-thousand square foot house on three hundred acres in Middleton, Tennessee. Still other customers’ monies were used to fulfill prior orders, which had not been fulfilled.
At trial, the evidence showed that Larry, Chuck and Robert Bates were sales people in the Memphis office and were responsible for taking in victim’s monies. More than forty-five witnesses testified about losing money to Larry Bates and First American Monetary Consultants. The victims, who lived all across the United States, testified that their money was to be used to purchase precious metals that they never received. For example, Judith Ponder, from Kerrville, Texas testified that she and her mother gave Larry Bates more than $1.8 million dollars to purchase precious metals and received little in return. Barbara Santiago, from Washington State, testified that she and her paraplegic son met Larry Bates at one of his conferences in Washington State. Ms. Santiago testified that she later invested more than two hundred and sixty-six thousand dollars from her son’s insurance settlement that was to be used for her son’s care. Ms. Santiago, likewise, received little of her purchase. And, Charles Grimsley, a pastor for the Veteran’s Administration in Mesa, Colorado, testified that he and his wife gave FAMC more than two hundred thousand dollars of their retirement money and received nothing in return.
The proof showed that many of the victims attempted to take possession of their gold and silver coins, only to be put off by the defendants for a variety of reasons. The excuses for the delays included that the gold and silver coins were scarce, the coins were coming from Europe, and the U.S. mint was shut down. In October 2013, a receiver was appointed to take over the affairs of First American Monetary Consultants. The receiver found that the company had few assets and was unable to compensate the hundreds of victims who had given money to Larry Bates and First American Consultants.
On Tuesday, September 5, 2017, U.S. District Judge Sheryl Lipman sentenced both father, and son, Charles Larry Bates and Charles "Chuck" Bates. Charles Larry Bates was sentenced to 262 months’ imprisonment and 3 years’ supervised release to begin after incarceration. He was ordered to pay $21,210,345.39 in restitution and a mandatory special assessment of $4,600. Larry Bates was convicted on all 46 counts in the indictment.
Chuck Bates was sentenced to 151 months’ imprisonment and 3 years supervised release. He was ordered to pay $19,649,731.70 to victims, along with a special assessment of $1,700. Chuck Bates was found guilty of 16 counts of mail and wire fraud, and one count of conspiracy.
On Wednesday, September 6, 2017, U.S. District Judge Sheryl Lipman sentenced Robert Bates and his wife, Kinsey Brown Bates. Robert Bates was convicted on one count of conspiracy and eight counts of mail and wire fraud. Robert Bates received a sentence of 151 months which he will serve consecutively to another criminal sentence, as well as three years supervised release. He was ordered to pay $19,659,911 in restitution, along with a mandatory special assessment of $900. Kinsey Brown Bates was sentenced to 63 months’ imprisonment, $9,526,199.95 in restitution, 3 years supervised release and $300 mandatory special assessment.
Acting United States Attorney Lawrence J. Laurenzi and Assistant United States Attorney David Pritchard prosecuted the case. The United States Postal Service and the Federal Bureau of Investigation investigated the case.
Attorney General's Pilot Program brings new resources to fight opioid epidemicRead the Press Release
CHARLESTON, W.Va. – United States Attorney Carol Casto announced today that a new attorney position has opened in the United States Attorney’s Office for the Southern District of West Virginia. The opening is for a 3-year term as an Assistant United States Attorney (AUSA) assigned to the Violent Crime and Narcotics Section of the Criminal Division. This term position was created as part of the Attorney General’s pilot program to focus on opioid-related health care fraud and prosecute individuals that are contributing to the opioid epidemic.
The United States Attorney’s Office is a part of the Department of Justice, which enforces federal criminal and civil laws that protect life, liberty and the property of citizens. The United States Attorney’s Office currently has 62 employees, with the main office in Charleston and two staffed branch offices in Huntington and Beckley.
An appointment as an AUSA offers unique and challenging opportunities for highly-motivated attorneys to work on their own caseload and handle their own trials and appeals. Working in the Violent Crime and Narcotics Section of the Criminal Division, the AUSA will be part of a dedicated team helping to investigate and prosecute federal criminal cases and to prepare and argue appeals. Responsibilities will increase and assignments will become more complex as your training and experience progress. Occasional travel is required. Applicants must possess a J.D. degree and be an active member of the bar (any U.S. jurisdiction). In addition, applicants must possess superior oral and written communication skills as well as strong interpersonal skills, exhibit good judgment, and be able to function with minimal guidance in a highly demanding environment. The local rules of the district court require obtaining membership in the bar of West Virginia within one year of entry on duty. Veterans are encouraged to apply. Although there is no formal rating system for applying veterans’ preference to AUSA appointments, the Department of Justice considers veterans’ preference eligibility as a positive factor in attorney hiring. More information regarding the veterans’ preference may be found in the jobs announcement at https://my.usajobs.gov and on our website, https://www.justice.gov/usao-sdwv.
This is a temporary position not to exceed 3 years. The position will be based in the Charleston office, with a salary range from $60,210 - $141,275. Applications should be submitted online at https://my.usajobs.gov for job announcement number 17-WVS-10044349-AUSA (https://www.usajobs.gov/GetJob/PrintPreview/478848100). Applicants will have to create an account or log into an existing USAJOBS account. The deadline for submitting an application is 11:59 p.m. (EST), on September 15, 2017. Please contact Administrative Officer Robin Justice at (304) 345-2200 or [email protected] if you have any questions. For more information on the Department of Justice and the United States Attorney’s Offices, visit http://www.justice.gov/careers.
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Assistant United States Attorney Ryan W. Bounds Nominated to Fill Ninth Circuit VacancyRead the Press Release
WASHINGTON – On Thursday, September 7, 2017, President Donald J. Trump announced that he has nominated Ryan W. Bounds to serve as a Circuit Judge on the United States Court of Appeals for the Ninth Circuit. If confirmed, Bounds will fill a vacancy created when Circuit Judge Diarmuid O’Scannlain assumed senior status.
Bounds serves as an Assistant United States Attorney for the District of Oregon, where he prosecutes criminal cases involving fraud and environmental crimes on behalf of the United States. Before joining the United States Attorney’s Office in Oregon, Bounds served as a Portland civil litigator; as special assistant to President George W. Bush for justice and immigration policy; as chief of staff and deputy assistant attorney general for the Justice Department’s Office of Legal Policy and as a federal prosecutor in Washington.
"Ryan is eminently qualified to serve as a judge on the Ninth Circuit," said Billy J. Williams, United States Attorney for the District of Oregon. "He is a dedicated public servant and well regarded in the Oregon legal community."
Born and raised in Eastern Oregon, Bounds graduated as the valedictorian of Hermiston High School in 1991. He has a bachelor’s degree from Stanford University and is a graduate of the Yale Law School. Bounds began his legal career in Pioneer Courthouse in Portland, Oregon where he served as a law clerk to Judge O’Scannlain.
Armed Career Criminal from Albuquerque Sentenced to Fifteen Years for Unlawfully Possessing a Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Jesus Rodriguez, 34, of Albuquerque, N.M., was sentenced today in federal court to 180 months in prison followed by five years of supervised release for unlawfully possessing a firearm and ammunition. Rodriguez was sentenced under the Armed Career Criminal Act, which requires the imposition of an enhanced sentence of not less than 15 years of imprisonment for offenders with three prior convictions for violent felonies, serious drug offenses, or a combination of both.
Acting U.S. Attorney James D. Tierney, Special Agent in Charge John J. Durastanti, Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Marshal Conrad E. Candelaria, and Bernalillo Sheriff Manuel Gonzales, III, announced the sentence. In making the announcement, these officials said that Rodriguez was prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
ATF arrested Rodriguez on April 19, 2016, based on a criminal complaint charging him with being a felon in possession of a firearm and ammunition. According to the complaint, Rodriguez was in possession of a loaded firearm on Jan. 29, 2016, when the Bernalillo County Sheriff’s Office and U.S. Marshals Service’s South West Investigative Fugitive Team (SWIFT) arrested him on an outstanding state arrest warrant.
Rodriguez was indicted on May 10, 2016, and was charged with unlawfully possessing a firearm and ammunition on Jan. 29, 2016, in Bernalillo County, N.M. At the time, Rodriguez was prohibited from possessing firearms or ammunition because he previously had been convicted of numerous felony offenses, including aggravated assault against a household member, aggravated battery against a household member, child abuse, auto burglary, conspiracy to commit auto burglary, and battery on a peace officer.
Rodriguez entered a guilty plea to the indictment on March 22, 2017, without the benefit of a plea agreement.
This case was investigated by the ATF’s Albuquerque office, the U.S. Marshals Service’s SWIFT Team, and the Bernalillo County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Presiliano Torrez.