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25 August 2017
Philadelphia Police Officer Pleads Guilty to Drug DistributionRead the Press Release
PHILADELPHIA – Stanley Davis, 50, of Philadelphia pleaded guilty today to one count of distribution of controlled substances.
During the offense conduct, Davis was a Philadelphia Police Officer assigned to work as a task force officer with the Federal Bureau of Investigation working on narcotics investigations. In September or October of 2016, Davis was working in the Kensington section of Philadelphia, an area where illegal drugs were frequently bought and sold. Davis spotted two young women who were in Kensington attempting to buy drugs. Davis approached the women, ostensibly to gain information on drug trafficking activity in the area. Davis exchanged phone numbers with the women and began sending them text messages. The text messages soon turned sexual in nature. Davis entered into a sexual relationship with the first woman and later entered into a sexual relationship with the second woman. During the course of these relationships, Davis provided each woman with controlled substances, including heroin and crack.
Davis is scheduled to be sentenced on December 8, 2017 before the Honorable R. Barclay Surrick in the United States District Court for the Eastern District of Pennsylvania.
The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Justice, Office of the Inspector General with assistance from the Pennsylvania State Police and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Robert J. Livermore.
Palm Desert Man Arrested in Stock Scheme that Targeted Nearly 100 Elderly Victims across U.S. and Allegedly Caused over $1 Million in LossesRead the Press Release
SANTA ANA, California – A Palm Desert man who is accused of running a stock investment scheme that allegedly defrauded more than 90 victims out of more than $1 million has been arrested on federal fraud charges.
Robert Mark Seibert, 64, was arrested in Bermuda Dunes Wednesday afternoon by FBI agents.
The arrest of Seibert was announced today by Acting United States Attorney Sandra R. Brown and Danny Kennedy, the FBI’s Acting Assistant Director in Charge of the Los Angeles Field Office.
Seibert, who allegedly used the alias “John Grey” when communicating with his victims, was arrested pursuant to a 16-count indictment returned by a federal grand jury on August 16.
Seibert had an initial appearance yesterday afternoon in United States District Court in Santa Ana, where a United States Magistrate Judge ordered him held without bond. Seibert pleaded not guilty to the charges in the indictment, and a trial was scheduled for October 17.
According to the indictment, Seibert operated his scheme through a series of businesses, including Universal Stock Transfer, National Discount Marketers, and New Global Productions. Seibert allegedly offered to sell victims stock in other companies – Intertech Solutions; Radio Shack; New Global Energy; SnackHealthy, Inc.; Uranium Energy Group; and Organovo Holdings – often at a discount from current market prices. After victims made investments, Seibert issued certificates as evidence of stock ownership and advised that if they did not earn a profit, he would return their money within 30 days.
The indictment alleges that Seibert did not hold or control any stock in other companies for sale, the victims’ money was not used to purchase stock, and they did not receive their money back after 30 days – or any time thereafter.
Investigators allege that Seibert defrauded at least 90 victims, who collectively sent more than $1 million to the defendant. According to the indictment, victims either mailed or wired amounts ranging from $2,000 to $21,000 to the companies operated by Seibert.
The indictment charges Seibert with 14 counts of mail fraud and two counts of wire fraud.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The maximum statutory penalty for each of the 16 counts in the indictment is 20 years in federal prison.
This investigation is being conducted by the Federal Bureau of Investigation.
The case is being prosecuted by Assistant United States Attorney Gregory W. Staples of the Santa Ana Branch Office.
Orlando Man Sentenced to 75 Years for Producing Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge John Antoon, II today sentenced Jamie P. Esposito (32, Orlando) to 75 years in federal prison for producing and possessing child pornography. He pleaded guilty on March 29, 2017.
According to court documents and evidence presented at sentencing, Esposito sexually abused a 7-year-old child one to two times per month over an 18 to 24-month period. He chronicled the abuse by taking pictures and videos, and shared them with multiple people online. When federal law enforcement officers executed a search warrant at Esposito’s home on November 29, 2016, they discovered more than 2,700 images of child pornography, including the images and videos he had produced of the child.
In addition, in July 2016, Esposito arranged to take the child to Tampa to be sexually abused by Richmond McDonald and Shauna Boselli. Esposito took pictures and video of the acts. McDonald and Boselli have been charged separately (case number 8:16-cr-517-T-33AEP) and have pleaded guilty to enticement of a minor. They are scheduled to be sentenced on October 4, 2017.
“This crime is beyond comprehension and no punishment can bring back the innocence of this child,” said HSI Tampa Special Agent in Charge James C. Spero. “But we hope that today’s sentencing can bring some solace to this young victim.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Shawn P. Napier.
Operator of Global Cybercrime Marketplace Pleads Guilty to Access Device Fraud and Aggravated Identity TheftRead the Press Release
Earlier today, Djevair Ametovski, a Macedonian citizen also known as “xhevo,” “sindrom” and “sindromx,” pleaded guilty to access device fraud and aggravated identity theft, crimes related to his operation of “Codeshop,” a website he created for the sole purpose of selling stolen credit and debit card data, bank account credentials and personal identification information — obtained through illegal hacking and phishing schemes — for financial gain. The plea was entered before United States Magistrate Judge Steven L. Tiscione at the federal courthouse in Brooklyn.
The guilty plea was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and David E. Beach, Special Agent-in-Charge, United States Secret Service, New York Field Office (USSS).
“Cybercriminals such as the defendant profit directly from the mass hacking of online businesses and theft of personal and financial information, and provide a platform for others to do the same,” stated Acting United States Attorney Rohde. “This Office, together with our law enforcement partners, will work tirelessly to shut down these illegal businesses and hold their operators accountable for their crimes.” Ms. Rohde praised the extraordinary efforts of the Secret Service, the agency responsible for leading the government’s investigation, and also thanked the Slovenian Ministry of the Interior and Ministry of Justice, for their assistance in the investigation and effecting the defendant’s extradition, the United States Marshals Service, for their assistance in transporting the defendant to the United States, the U.S. Department of State’s Diplomatic Security Service in Slovenia and the Netherlands, for their assistance in facilitating the defendant’s extradition, and the Justice Department’s Office of International Affairs, for their assistance with multiple international requests for legal assistance during the investigation and with the defendant’s extradition.
“Technology has essentially erased geographic boundaries and changed the way criminals do business,” said USSS Special Agent-in-Charge Beach. “The Secret Service continues to develop innovative ways to combat emerging cyber threats. The success in this case demonstrates the collaborative efforts of our worldwide network of law enforcement partners and the transnational investigative capabilities of the United States Secret Service.”
As detailed in court papers, Ametovski ran a sophisticated online global marketplace for selling the stolen credit and debit card data, bank account credentials and personal identification information of victims around the world. As part of his operation, Ametovski worked with co-conspirators to steal victim account data both by hacking into the computer databases of financial institutions and other businesses, and by perpetrating “phishing” scams wherein the conspirators sent forged emails to unwitting accountholders that fraudulently induced the accountholders to surrender private information.[1] Ametovski and his co-conspirators then packaged this stolen victim account data for sale and posted the data on the Codeshop website, a fully indexed and searchable website that allowed users to search through databases of stolen data by bank identification number, financial institution, country, state and card brand to find the precise data that they wished to buy. Users of the Codeshop website who bought stolen data from the website could use it to make online purchases and to encode plastic cards with the data and use the cards to withdraw cash at ATMs. Ametovski used a network of online money exchangers and anonymous digital currencies (like Bitcoin) to reap revenues from the Codeshop website and to conceal all participants’ identities, including his own. Over the course of the scheme, Ametovski obtained and sold stolen credit and debit card data for more than 1.3 million cards.Ametovski was arrested in Ljubljana, Slovenia, in January 2014, and was extradited to the United States in May 2016.
When he is sentenced by United States District Judge Eric N. Vitaliano, Ametovski faces up to 15 years in prison for access device fraud, and an additional mandatory sentence of two years’ imprisonment for aggravated identity theft. He is also subject to restitution, criminal forfeiture, and fines.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Saritha Komatireddy, Tiana A. Demas and David K. Kessler are in charge of the prosecution. Additional assistance was provided by Marcus Busch of the Justice Department’s Office of International Affairs.
The Defendant:
DJEVAIR AMETOVSKI, also known as “xhevo,” “sindrom” and “sindromx”
Age: 30
Nationality: Macedonian
E.D.N.Y. Docket No. 16-CR-409 (ENV)
[1] “Phishing” is a common cyber fraud tactic that involves sending an email to a user falsely claiming to be an established legitimate enterprise in an attempt to deceive the user into surrendering private information. In this case, such emails commonly directed users to visit a bogus website where they were asked to update personal information, such as their password, social security number, and bank account number previously provided to a legitimate organization.
Okreek Woman Sentenced on Cocaine and Marijuana ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that an Okreek, South Dakota, woman convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on August 21, 2017, by U.S. District Judge Roberto A. Lange.
Maria Joy Dog Soldier, age 40, was sentenced to 36 months of probation and 6 months home confinement, a fine of $1,000, and forfeiture of $1,101. A mandatory special assessment to the Federal Crime Victims Fund in the amount of $100 was also imposed.
Dog Soldier was indicted by a federal grand jury on March 15, 2017. She pled guilty on June 5, 2017.
The conviction stemmed from an incident on April 29, 2016, during a routine patrol of the Rosebud Casino parking lot by a law enforcement officer and his K9 dog, when the K9 alerted to the presence of the odor of narcotics. Dog Soldier was present in the vehicle. A search of the vehicle revealed 15 plastic baggies containing cocaine and 3 plastic baggies containing marijuana and drug paraphernalia. Also found during the search was $1,101 in cash.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Ocean Springs Man Sentenced for Accessing with Intent to View Child PornographyRead the Press Release
Gulfport, Mississippi. – Kristopher Michael Brumfield, 39, of Ocean Springs, Mississippi, was sentenced on August 24, 2017, by Chief U.S. District Judge Louis Guirola, Jr., to 120 months in federal prison followed by a lifetime of supervised release for accessing with intent to view child pornography, announced Acting U.S. Attorney Harold Brittain and Homeland Security Investigations (HSI) Special Agent in Charge Raymond R. Parmer, Jr.
In addition to the prison term, Brumfield was ordered to pay a fine of $15,000 and a $5,000 special assessment under the Justice for Victims of Trafficking Act of 2015.
In August, 2014, HSI identified three user profiles contained within a foreign photo sharing website which contained child pornography. The HSI investigation that followed identified Brumfield as the individual who knowingly accessed the website and viewed the uploaded images of minors engaged in sexually explicit conduct. It was further determined that via email, Brumfield corresponded with other users of the website, and subsequently traded numerous videos of children engaged in sexually explicit conduct via his email accounts.
This case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorneys Andrea Jones and Glenda Haynes.
North Dakota Man Sentenced to 15 Years for Production of Child PornographyRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the sentencing of JUSTIN EDWARD WYLIE, 28, to 15 years in federal prison for production of child pornography. WYLIE was indicted on May 17, 2016, and pleaded guilty on November 14, 2016, to one count of production of child pornography. The defendant was sentenced on August 25, 2017, before Senior Judge Paul A. Magnuson in U.S. District Court in St. Paul, Minn.
According to the defendant’s guilty plea and documents filed in court, through online contact, WYLIE coerced three minor victims to engage in sexually explicit conduct for the purpose of producing child pornography. The defendant came to law enforcement's attention when law enforcement officers downloaded thirteen child pornography files from WYLIE’S IP address over the peer-to-peer file sharing network BitTorrent. On March 14, 2014, upon execution of a search warrant of WYLIE’S home and electronic devices, law enforcement recovered more than 7,000 suspected child pornography images and 102 suspected child pornography videos.
This case resulted from an investigation conducted by the FBI and the Breckenridge Police Department, and the North Dakota Bureau of Criminal Investigation.
The case was prosecuted by Assistant U.S. Attorney Melinda A. Williams.
This case is part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals resources to locate, apprehend, and prosecute individuals who sexually exploit children while identifying and rescuing victims. For more information about PSC, please visit http://www.justice.gov/psc/ For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”
Defendant Information:
JUSTIN EDWARD WYLIE, 28
Wahpeton, N.D.
Convicted:
- Production of child pornography, 1 count
Sentenced:
-
180 months in prison
-
15 year term of supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
New Orleans Man Pleads Guilty to Conspiracy to Commit Mail FraudRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that CORTEZ THOMPSON, age 34, of New Orleans, pled guilty yesterday to conspiracy to commit mail fraud.
According to court documents, from in or about December 2012 and continuing though in or about June 2013, THOMPSON and his co-conspirators were involved in a scheme to unlawfully obtain money through the distribution of counterfeit United States Postal Service money orders. To this end, THOMPSON and his co-conspirators would, among other things, procured, produced, and caused to be produced counterfeit United States Postal Service money orders, distributed them via the mail, and negotiated them in order to share the illegal proceeds of the crime.
THOMPSON faces a maximum term of imprisonment of five years, a fine of $250,000 and three years of supervised release following any term of imprisonment. U.S. District Judge Susie Morgan set sentencing for November 29, 2017.
Acting U.S. Attorney Evans praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations in investigating this matter. Assistant United States Attorney Loan AMimi@ Nguyen is in charge of the prosecution.
New Orleanians Sentenced for Heroin and Firearms ConspiraciesRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that KEITH FOSTER, age 37, and THOMAS MAROLD, age 53, both of New Orleans, were sentenced yesterday. Both defendants had previously pled guilty to conspiracy and possession with intent to distribute heroin, conspiracy to use a firearm in furtherance of a drug trafficking crime and possession of a firearm in furtherance of a drug trafficking crime.
U.S. District Court Judge Lance M. Africk sentenced FOSTER to 295 months of incarceration, to be followed by 5 years of supervised release. MAROLD was sentenced to 30 months of incarceration, to be followed by 3 years of supervised release.
According to court documents, in October 2015, KERMERIC JOHNSON received a jail phone call from heroin dealer and co-conspirator, FOSTER, wherein FOSTER informed JOHNSON that a confidential informant had caused him and MAROLD to be arrested. FOSTER then told JOHNSON where to locate a firearm and instructed JOHNSON to “take care” of the informant. JOHNSON agreed to do so and, in subsequent jail calls, stated that he was attempting to locate the informant.
On October 29, 2015, St. Bernard Parish Sheriff’s Office deputies surveilled JOHNSON’s residence, and observed JOHNSON exit the residence. Deputies observed JOHNSON carrying two items, one wrapped in a blue shirt, and the other in a red blanket. JOHNSON placed both items inside the trunk of a vehicle before he and the other male drove away. Deputies conducted a traffic stop and obtained a search warrant for the vehicle. In the trunk of the vehicle, deputies found a Smith and Wesson, 9mm caliber semi-automatic handgun wrapped in the shirt and a Marlin Model Glenfield 65, .22 caliber rifle, wrapped in the blanket.
Acting U.S. Attorney Evans praised the work of the ATF New Orleans Division Office, St. Bernard Parish Sheriff’s Office and New Orleans Police Department in investigating this matter. Assistant United States Attorney Nolan D. Paige was in charge of the prosecution.
McAlester Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that MICHAEL KEITH BEALL, age 61, of McAlester, Oklahoma, pled guilty to POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), punishable by not more than 20 years imprisonment, and up to a $1,000,000.00 fine or both.
The Indictment alleged that on or about April 17, 2017, within the Eastern District of Oklahoma, the defendant, MICHAEL KEITH BEALL, did knowingly and intentionally possess with the intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charge arose from an investigation by the Pittsburg County Sheriff’s Office, the Oklahoma Bureau of Narcotics, and the Oklahoma Highway Patrol.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Dean Burris represented the United States.
Maryland Man Sentenced to 14 Years in Prison for Shooting Childhood Friend in Southeast WashingtonRead the Press Release
WASHINGTON – Timothy Dugger, 30, of Landover, Md., was sentenced today to 14 years in prison for repeatedly shooting a man in a mid-day attack nearly two years ago in Southeast Washington, announced U.S. Attorney Channing D. Phillips.
Dugger was found guilty by a jury in June 2017 of a total of 14 charges, including assault with intent to kill while armed, aggravated assault while armed, assault with a dangerous weapon, fleeing law enforcement, reckless driving, and various firearms offenses. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Judith Bartnoff. Following his prison term, Dugger will be placed on five years of supervised release.
According to the government’s evidence, in the early afternoon of Sept. 11, 2015, Dugger picked up the victim and his family and drove them to the 2900 block of Southern Avenue SE. The victim left his family there and made his way back to Dugger’s car, where Dugger was in the driver’s seat. As the victim approached the car, Dugger fired multiple shots at him, striking him in the back, chest, and arm. Dugger then made a U-turn on Southern Avenue, fired more shots, and drove off. He led the Metropolitan Police Department (MPD) on a chase before crashing the vehicle into a retaining wall the 2300 block of R Street SE. While fleeing, Dugger had tossed the gun from the car, and it was recovered and found to have his fingerprints on it.
According to medical testimony, the victim, then 30, could have died if the bullets entered his body at different trajectories. Dugger and the victim had been friends since childhood. Dugger has been in custody since his arrest.
In announcing the sentence, U.S. Attorney Phillips commended the work of the Metropolitan Police Department. He also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Sarah C. Santiago and Kathleen “Katie” Kern, who both assisted in investigating and indicting the case; Paralegal Specialist Tamaya Reid; Victim/Witness Advocate Diana Lim, and Litigation Technology Specialists Leif Hickling and William Henderson. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Ellen D’Angelo and Maryam Adeyola, who investigated the case and prosecuted it at trial.
Louisiana Company Pleads Guilty to Transporting and Dumping Hazardous Waste in Savannah NeighborhoodRead the Press Release
SAVANNAH, GA – Boasso America, Inc. (Boasso), headquartered in New Orleans, Louisiana, and with a facility in Garden City, Georgia, entered a guilty plea yesterday before Senior U. S. District Court Judge William T. Moore, Jr. for the illegal transportation and dumping of hazardous waste. Boasso pled guilty to a felony violation of the Resource Conservation and Recovery Act (RCRA), a law regulating the storage and transportation of hazardous waste. Boasso’s guilty plea follows the convictions of two of its former employees, Ray Mitchell, 52, of Pooler, Georgia, and Maurice Miller, 40, of Savannah, for their individual roles in the illegal transportation and dumping of hazardous waste. Earlier this year, Miller was sentenced to 28 months in federal prison. Mitchell was sentenced to 20 months in federal prison.
According to evidence presented during multiple guilty plea hearings, Boasso provides transportation services for tank containers containing hazardous wastes. Boasso’s Garden City facility stored and transported its customers’ tanks containing hazardous waste. In 2015, rather than properly transporting and safely disposing of drums and totes at its Garden City facility that contained the hazardous chemical naphthalene, Boasso employees Mitchell and Miller illegally transported and dumped a significant amount of naphthalene into the ground of a nearby Savannah neighborhood. Exposure to amounts of naphthalene, a main ingredient found in mothballs, can cause serious health issues. Once discovered, law enforcement and environmental officials quickly removed the hazardous waste before it caused any health concerns. Further investigation by law enforcement officials uncovered that Boasso employees fabricated invoices in an effort to hide their illegal dumping of hazardous waste.
The investigation of this case was led by the United States Environmental Protection Agency (EPA), with assistance from the Georgia Department of Natural Resources (DNR), the Savannah-Chatham Metropolitan Police Department (SCMPD), and Savannah Fire Department’s Haz-Mat team.
As part of its plea agreement, Boasso has agreed to pay full restitution, including cleanup costs; has agreed to pay the maximum criminal fine penalty of $500,000; and has agreed to establish, implement, and enforce an effective environmental compliance plan, so that future dumping incidents do not happen.
Acting United States Attorney James Durham said, “This company and some of its employees callously dumped hazardous waste into a local community, all to save a little time and money. Because of their dangerous decisions, the company will be paying a significant amount of money and their employees are spending a lot of time in a federal prison. I want to thank the EPA, Georgia’s DNR, SCMPD and the Savannah Fire Department for quickly investigating this case, and for ensuring Boasso’s hazardous waste was properly removed before anyone was injured.”
“This corporate defendant and some of its employees knowingly allowed hazardous waste to be illegally dumped without regard for the potential dangers that its release could pose to public health,” said Andy Castro, Special Agent in Charge of EPA’s criminal enforcement program for Georgia. “These corporate and individual convictions show that those who put public health and the environment at risk by violating the law will be held to account.”
Assistant United States Attorneys Tania D. Groover and Carlton R. Bourne prosecuted the case on behalf of the United States. For additional information, please contact the U. S. Attorney’s Office at (912) 201-2522.
Las Vegas Businessmen Sentenced to Prison in Montana Public Corruption CaseRead the Press Release
GREAT FALLS - The United States Attorney’s Office announced that Zachary Brooke Roberts and Martin Gasper Mazzara were sentenced to 20 months of prison and are required to pay $2.5 million in restitution to the Chippewa Cree Tribe. The shell company of Encore Services, LLC, was also convicted, and the court ordered it to pay the same amount of restitution. The sentencing occurred on August 25, 2017, before U.S. District Judge Brian Morris, in Great Falls, Montana.
Roberts and Mazzara, through a backdated and inflated 15% Fee Agreement, were paid over $3.5 million from the Chippewa Cree Tribe. Roberts and Mazzara then funneled money from Nevada back to Montana to Ideal Consulting. Ideal Consulting was a shell company used to distribute payments to Neal Rosette and Billi Anne Morsette, both of whom were tribal officials. This scheme was created to conceal from the tribal people the $1.2 million in kickbacks to Rosette and Morsette. Both Rosette and Morsette were previously sentenced for receiving bribes from Roberts and Mazzara.
Roberts and Mazzara engaged in the above scheme by inflating their invoices from 10% to 15%, submitting those false invoices to the Chippewa Cree Tribe, and then funneling and concealing the 5% that went back to the shell company of Ideal Consulting. In order to perpetuate the scheme, Roberts and Mazzara generated false invoices from Encore Services, LLC, and they also accepted false invoices from Ideal Consulting. For example, Ideal Consulting submitted invoices for “consulting” services to Roberts and Mazzara, but those invoices were bogus and no consulting services ever occurred from Ideal Consulting.
When the above scheme was discovered, Roberts and Mazzara, in October of 2012, backdated a “Joint Venture Agreement” by over 15 months to act as cover for the money paid to the tribal officials through Ideal Consulting.
In a sentencing memo filed in federal court, Assistant U.S. Attorneys Ryan G. Weldon and Bryan T. Dake stated, “This case is about an insatiable appetite to make money at the expense of others. The defendants initially arrived on the Rocky Boy’s Indian Reservation to use tribal sovereignty to circumvent maximum interest rates and other regulations under state laws. When that failed, the parties instead began to victimize the tribal people. In doing so, the defendants and others concocted a scheme to funnel money back to tribal officials, all of which totaled $1.2 million.” Weldon and Dake explained that it takes two sides to generate a corrupt transaction—a corrupt public official and a corrupt businessman. Both must be held accountable because both are essential to the creation of a corrupt transaction. “Such accountability also acts as a deterrent to remind future businessmen that sharp business tactics, when dealing with public officials, can easily end in the loss of everything—reputation, fortune, and freedom.”
The convictions of Roberts and Mazzara were for conspiracy to commit wire fraud and engaging in monetary transactions in property derived from specified unlawful activity. The convictions and sentencing of these defendants are the latest in a series of prosecutions and convictions relating to public corruption, fraud, and theft in federal grants, contracts, and programs brought by the investigators and prosecutors of the U.S. Attorney’s Guardians Project, an anti-corruption strike force created in 2011. These cases were investigated by the Department of Interior, Office of Inspector General, Health and Human Services, Office of Inspector General, and the Internal Revenue
Jacksonville Man Pleads Guilty to Illegally Possessing Semi-Automatic Handgun with Extended MagazineRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces that Reginald Kevin Winford (26, Jacksonville) today pleaded guilty to possessing a firearm as a convicted felon. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the court documents, police officers stopped Winford for a traffic offense and saw a baggie of cocaine on the floorboard of his car, prompting a search of the vehicle. During the search, officers discovered a loaded semi-automatic handgun and an extended magazine containing 29 rounds of ammunition. As a previously convicted felon on multiple offenses, Winford is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl McCrary, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy on reducing violent crime in communities.
Indictment Unsealed Charging Three with Conspiracy and Bribery to Smuggle Cell Phones into Private Federal PrisonRead the Press Release
Oklahoma City, Oklahoma – An indictment was unsealed Wednesday charging CHARLES DANIEL LYNN, 34, of El Reno, Oklahoma; ARMANDO TABARES, 30, of Mission, Texas; and JOSE TOMAS CASTILLO-GARZA, 39, currently an inmate in United States Bureau of Prisons custody, with conspiracy to commit wire fraud and bribery, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
On August 16, 2017, a federal grand jury returned an indictment alleging that Lynn was a correctional officer at Great Plains Correctional Facility, a Federal Bureau of Prisons-contracted low-security facility in Hinton, Oklahoma. Great Plains houses over 1,800 federal inmates.
The indictment alleges that in the summer or early fall of 2016, inmate Castillo-Garza asked Lynn to smuggle cell phones into the facility. Lynn and Castillo-Garza allegedly agreed that Lynn would be paid thousands of dollars by wire transfer in exchange for his smuggling of cell phones and other contraband into the facility. The indictment further alleges Castillo-Garza arranged with Lynn to have Castillo-Garza’s brother-in-law, Tabares, send wire transfers and contraband to Lynn.
According to the indictment, Castillo-Garza and/or other inmates working with him threatened another inmate’s safety to secure that inmate’s promise to arrange for money to be wired to Lynn outside the facility. Castillo-Garza is alleged to have coordinated with another inmate to have additional funds sent to Lynn. In total, approximately $7,750.00 was sent to Lynn as bribes to smuggle contraband into the facility, according to the indictment.
The indictment states that Tabares and Lynn communicated about the types of contraband to be smuggled and that Tabares purchased the materials and sent approximately 8-9 packages to Lynn between October and December 2016. After Lynn received the packages, he smuggled the items, including cell phones, into the facility and delivered the items to Castillo-Garza, according to the indictment. It is also alleged that Lynn escorted Castillo-Garza to various parts of the facility to distribute the contraband to other inmates.
Count 1 charges all three defendants with conspiracy to commit wire fraud. If convicted, defendants each face up to 20 years in prison and a $250,000.00 fine. Count 2 charges Lynn with accepting a bribe as a public official, and Count 3 charges Castillo-Garza and Tabares with bribing a public official. If convicted on the bribery counts, each defendant faces up to 15 years in prison and a $250,000.00 fine.
The public is reminded these charges are merely accusations and that the defendants are presumed innocent unless proven guilty beyond a reasonable doubt. Reference is made to court filings for further information.
This case is the result of a joint investigation by the Department of Justice Office of the Inspector General and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney K. McKenzie Anderson.
Idaho Falls Man Pleads Guilty in Access with Intent to View Child Pornography CaseRead the Press Release
POCATELLO – Thomas Wayne Anderson, 57, of Idaho Falls, Idaho, pleaded guilty yesterday to accessing with intent to view child pornography, Acting U.S. Attorney Rafael Gonzalez announced. Anderson was indicted by a federal grand jury in Pocatello on February 28, 2017.
According to the plea agreement, Anderson was initially apprehended in connection with a series of vandalism at recreational sites managed by the Bureau of Land Management. Pursuant to a search warrant, authorities searched Anderson’s laptop computer and found screen captures of child pornography that appeared to be from videos depicting child pornography. In court, Anderson admitted to using online video-conferencing services to view child pornography with other individuals.
The charge of access with intent to view child pornography is punishable by up to 20 years in prison, a maximum fine of $250,000, and up to a life-term of supervised release.
Sentencing is set for November 20, 2017, before U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Idaho Internet Crimes Against Children (ICAC) Task Force and the Bureau of Land Management.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Husband and Wife Charged with BriberyRead the Press Release
PHILADELPHIA – A federal indictment was unsealed today charging Nazik Modawi and her husband Abboud Wali with conspiracy and bribery, announced Acting United States Attorney Louis D. Lappen.
According to allegations contained in the indictment, the defendants made two bribe payments in November through December 2016 to Southeastern Pennsylvania Transportation Authority (SEPTA) employees for the purpose of expediting their application for a certification from SEPTA’s disadvantaged business enterprise (DBE) program. SEPTA employees immediately reported the cash payments to authorities.
The charge of conspiracy carry a maximum sentence of 5 years in prison and a $250,000 fine; charges of bribery concerning agencies receiving federal funds carry a maximum sentence of 10 years in prison and a $250,000 fine.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
The case was investigated by the Federal Bureau of Investigation and the United States Department of Transportation, Office of Inspector General, with assistance from the SEPTA Inspector General. It is being prosecuted by Assistant United States Attorney Denise S. Wolf of the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
Houston Bookkeeper Charged in a Scheme to Embezzle from a ClientRead the Press Release
HOUSTON – A 64-year-old Houston woman has been taken into custody following the return of a 16-count indictment alleging wire and mail fraud and filing false tax returns, announced Acting U.S. Attorney Abe Martinez.
A federal grand jury returned the indictment under seal yesterday against Gwendolyn M. Berry, which was unsealed as she was taken into custody today. She made her initial appearance this morning before U.S. Magistrate Judge Mary Milloy and was permitted release upon posting bond.
The indictment alleges Berry took funds in excess of $1.7 million from a family for whom was she provided bookkeeping services between September 2008 and Oct. 1, 2014. Berry allegedly took money from the education accounts of the minor children, as well as other bank accounts belonging to the family. Berry used the money to make payments for the benefit of herself and her family, according to the charges.
Four counts of the indictment charge Berry with filing a false federal tax return for the tax years 2011 through 2014. In each of these tax returns, Berry allegedly omitted reporting some of her income which, if reported, would have changed the amount of federal income tax due and owing. If convicted of any of these charges, she faces up to three years in prison.
In addition, upon conviction of any of the remaining 12 fraud counts, Berry also faces a possible sentence of up to 20 years in federal prison.
IRS - Criminal Investigation and the Secret Service conducted the investigation. Assistant U.S. Attorney Melissa Annis is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Hitchita Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that JIMMIE JOHN LIKOWSKI, age 48, of Hitchita, Oklahoma, pled guilty to FELON IN POSSESSION OF FIREARM AND AMMUNITION, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that on or about May 21, 2017, within the Eastern District of Oklahoma, the defendant, JIMMIE JOHN LIKOWSKI, a/k/a Jimmy John Likowski, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce which had been shipped and transported in interstate commerce.
The charge arose from an investigation by the Okmulgee County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney John David Luton represented the United States.
Ft. Thompson Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Randolph J. Seiler announced that a Ft. Thompson, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on August 21, 2017, by U.S. District Judge Roberto A. Lange.
Matthew Long Crow, age 39, was sentenced to 120 months in custody, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Long Crow was indicted by a federal grand jury on October 12, 2016. He pled guilty on May 24, 2017.
The conviction stems from an incident occurring between March 10, 2016, and March 19, 2016, when Long Crow assaulted his girlfriend, and the assault resulted in serious bodily injury.
This case was investigated by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Long Crow was immediately turned over to the custody of the U.S. Marshals Service.
Four indicted for distributing heroin in North GeorgiaRead the Press Release
GAINESVILLE, Ga. - Michelle Dawn Dorsey, Nigel Alan Waddell, and Tyler Josiah Matthews have been arraigned on federal charges of trafficking in heroin. A fourth defendant, Derrik Omar Frazier, was arraigned on July 20, 2017.
“The indictment brought against these defendants is the result of a two-year, joint federal-state investigation by law enforcement to take down a significant heroin distribution network operating between communities in North Georgia and the Atlanta area,” said U. S. Attorney John Horn. “Heroin and fentanyl are poisoning our communities, and the overdoses and deaths are climbing in truly alarming numbers. Our office, along with state and local law enforcement agencies, are taking a strong stance against those who deal heroin and opiates.”
According to U.S. Attorney Horn, the charges, and other information presented in court: Dorsey, Waddell, Matthews and Frazier allegedly conspired to distribute heroin in North Georgia. Dorsey and Waddell sold quantities of heroin in White and Habersham Counties. They obtained the heroin primarily from Frazier. Matthews worked for Dorsey and was responsible for transporting heroin from Frazier’s residence in Stone Mountain, Georgia, to Dorsey’s residence in Demorest, also in Georgia.
Two heroin users allegedly overdosed on heroin they obtained from Dorsey, but they were revived after being administered Naloxone by emergency medical personnel in White County in one instance and Habersham County in the other. Naloxone is used to treat narcotic overdoses as it can reverse the effects of an overdose in most cases. Both overdose victims likely would have died, but for the life saving measures taken by medical professionals.
The overdose victims in this case were transported to medical facilities by friends who were also in possession of heroin. However, those individuals have not been charged with any offense. Georgia’s 911 Medical Amnesty Law protects individuals from arrest, prosecution, and conviction of certain drug offenses if the evidence of their drug crime results from the individuals seeking medical assistance for someone thought to be suffering from a drug overdose. The defendants named in this indictment were not present at the time of the overdoses nor did they seek medical assistance for the victims. In keeping with the spirit of Georgia’s 911 Medical Amnesty Law, the U.S. Attorney’s Office and Appalachian Regional Drug Enforcement Office (ARDEO) want the public to trust that those seeking to provide aid to overdose victims will not be targeted for investigation and/or prosecution.
On July 20, 2017, in conjunction with Frazier’s arrest at his residence in Stone Mountain, agents with the ARDEO and the Georgia Bureau of Investigation West Metro Regional Drug Enforcement Office executed a search warrant. The agents seized one ounce of heroin, one ounce of methamphetamine, one ounce of cocaine, and a cache of firearms.
Michelle Dawn Dorsey, 45, of Demorest, Georgia, Nigel Alan Waddell, 28, of Cornelia, Georgia, and Tyler Josiah Matthews, 26, of Cleveland, Georgia, were arraigned before U.S. Magistrate Judge J. Clay Fuller. Dorsey, Waddell, Matthews and Derrik Omar Frazier, 42, of Stone Mountain, Georgia, were indicted by a federal grand jury on July 12, 2017.
Members of the public are reminded that the indictment only contains charges. Each defendant is presumed innocent of the charges and it will be the government’s burden to prove each defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Appalachian Regional Drug Enforcement Office. The Appalachian Regional Drug Enforcement Office is a multi-agency unit that consists of the following Sheriff’s Offices: White County, Lumpkin County, Towns County, Banks County, Habersham County, Stephens County, Rabun County and Franklin County, along with the Cleveland Police Department, Lavonia Police Department, the Georgia National Guard Counter Drug Task Force, the Department of Public Safety,, and the Georgia Bureau of Investigation.
Assistant U.S. Attorneys William L. McKinnon, Jr. and Nicholas Hartigan are prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Four Charged in Large Scale Heroin/Fentanyl Trafficking RingRead the Press Release
BOSTON – Two Yarmouthport brothers, a Dominican national, and a Boston man were charged with running a large-scale heroin and fentanyl trafficking operation in Boston and on Cape Cod. Hundreds of fentanyl pills designed to look like oxycodone pills were allegedly trafficked by the defendants.
Alex Fraga, 25, the proprietor of Scottie’s Pizza in Hyannis, was charged with one count of possession of fentanyl/heroin with intent to distribute and two counts of attempted possession of fentanyl/heroin with intent to distribute. Kevin Fraga, 24, was charged with one count of possession of fentanyl/heroin and cocaine with intent to distribute and two counts of attempted possession of fentanyl/heroin and cocaine with intent to distribute. They were both arrested on Aug. 17, 2017.
Jose Solivan, 40, a/k/a Kevin Nunez, a Dominican national residing in Boston, and James Ramirez, 55, of Boston, were each charged with one count of conspiracy to distribute and possess with intent to distribute heroin, fentanyl, and cocaine. Both men were arrested on Aug. 22, 2017. At his initial appearance, Solivan told the court that his real name was Kevin Nunez.
According to court documents, law enforcement conducted a long-term wiretap investigation into narcotics trafficking on Cape Cod. Through these wiretaps, investigators learned that Ramirez, together with others, including Solivan, was supplying the Fraga brothers with large quantities of fentanyl, heroin and cocaine for further distribution. Ramirez delivered the drugs to the Fraga brothers in Hyannis using vehicles specially outfitted with “hides” to conceal the drugs from law enforcement.
“Large-scale narcotics trafficking in Massachusetts is destroying lives and entire communities,” said Acting United States Attorney William D. Weinreb." This was an important investigation that led investigators from Boston to Cape Cod and removed suspected deadly fentanyl-laced pills from the streets. Those pills would have put lives at risk. My office remains committed to working with our local, state and federal law enforcement partners to stem the tide of drugs that is flooding our neighborhoods.”
“DEA is committed to investigating and dismantling large-scale drug trafficking organizations like this one,” said Special Agent in Charge Michael J. Ferguson. “It is alleged that this organization was responsible for distributing kilogram quantities of fentanyl and heroin throughout the Cape Cod area of Massachusetts. As we all know, fentanyl and heroin are causing deaths across the Commonwealth in record numbers and DEA is committed to aggressively pursue those who distribute these poisons in order to profit and destroy people’s lives and wreak havoc in our communities. This investigation demonstrates the strength of collaborative local, state and federal law enforcement efforts in the Bay State and our strong partnership with the U.S. Attorney’s Office to seek and bring to justice anyone who engages in these crimes.”
“I commend our state troopers and members of our partner agencies who worked diligently to collect evidence that led to these charges,” said Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police. “This outcome will have a positive impact on the flow of dangerous opioids and opiates on the Cape.”
It is alleged that in June and July 2017, investigators made three controlled purchases from Ramirez. Each transaction included the purchase of 100 fentanyl pills designed to look like oxycodone pills. Each 100 pack of pills contained approximately 10 grams of fentanyl. It is further alleged that wiretaps from early July through Aug. 22, 2017, show consistent drug trafficking activity by Ramirez, who worked with Solivan to distribute narcotics. Specifically, on July 8, 2017, Ramirez delivered a kilogram of narcotics and fentanyl pills to Kevin Fraga on Cape Cod.
It is alleged that Ramirez and Kevin Fraga met in Hyannis on Aug. 16, 2017. After their meeting, investigators stopped Kevin Fraga’s vehicle for a traffic violation. Investigators then obtained federal search warrants for Fraga’s vehicle, a hotel room at the Best Western in Hyannis, the Fragas’ residence in Yarmouthport, and a Winnebago owned by Kevin Fraga. During a search of the Winnebago, investigators seized three kilograms of heroin, fentanyl pills, and a firearm; during the search of the hotel room, investigators seized approximately 59 grams of cocaine, approximately 87 grams of a fentanyl/heroin mixture, and a digital scale; during the search of the Fragas’ home, investigators seized approximately 30 grams of a heroin/fentanyl mixture as well as another digital scale; and during the search of Kevin Fraga’s vehicle, investigators seized approximately 165 grams of a heroin/fentanyl mixture, 136 grams of fentanyl, 200 fentanyl pills packaged to look like oxycodone, another 25-gram bag of a heroin/fentanyl mixture, and a stack of U.S. dollars. Investigators further recovered more than 1,200 fentanyl pills from Ramirez’s residence and over 50 grams of heroin from Solivan. The drug contents are suspected pending final laboratory analysis.
All of the charges against the Fraga brothers, Ramirez and Solivan carry a potential sentence of no greater than 20 years in prison, three years to life of supervised release, and a fine of up to $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; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Cape and Islands District Attorney Michael O’Keefe made the announcement today. The investigation was led by the DEA Cape Cod Resident Office and the Massachusetts State Police - Cape & Islands District Attorney’s Office in conjunction with the Brewster, Harwich, Sandwich, Mashpee, Chatham, Yarmouth, and Barnstable Police Departments and the Barnstable County Sheriff’s Department. Assistant U.S. Attorney Eric Rosen of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Fort Thompson Man Sentenced for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Fort Thompson, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on August 21, 2017, by U.S. District Judge Roberto A. Lange.
Gordon Bagola, age 62, was sentenced to 24 months in custody, followed by 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Bagola was indicted by a federal grand jury on February 15, 2017. He pled guilty on June 1, 2017.
The conviction stemmed from an incident on July 31, 2016, when Bagola stabbed his son in the back with a knife, and the assault resulted in serious bodily injury.
This case was investigated by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Bagola was immediately turned over to the custody of the U.S. Marshals Service.
Former political candidate sentenced to prison for stealing federal fundsRead the Press Release
ATLANTA – Kevin Edwards, a former political candidate and nightclub owner, has been sentenced to two years, three months in federal prison for stealing federal funds administered by the Atlanta Workforce Development Agency (AWDA).
“Edwards stole over $600,000 in grant funds intended to train unemployed Atlanta citizens,” said U. S. Attorney John Horn. “He chose to steal money rather than training employees for long term employment. The federal government lost valuable grant funds, and those seeking job training were cheated out of an opportunity to obtain job skills.”
“The U.S. Department of Labor entrusted Edwards to provide training services to those in Atlanta affected by unemployment. Rather than provide valuable on-the-job training, Edwards victimized workers by assigning them odd jobs such as cleaning, and paid them far less than he reported. We will continue to work with our law enforcement partners to investigate those who steal training grant money from Department of Labor programs,” said Rafiq Ahmad, Special Agent in Charge, Atlanta Region, U.S. Department of Labor, Office of Inspector General.
According to U.S. Attorney Horn, the indictment, and other information presented in court: AWDA’s On-the-Job Training Program was funded with grants from the U.S. Department of Labor. The purpose of the OJT program is to increase employment by encouraging companies to hire employees that need additional job skills that the employer is willing to provide in exchange for wage reimbursement. The ultimate goal of the OJT program is for the employer to hire the participant at the end of the OJT contract period.
Edwards, a former budget analyst with the City of Atlanta, political candidate and nightclub owner, owned or controlled three companies in Atlanta between 2010 and 2012. During this three-year period, the three companies owned or controlled by Edwards received approximately $649,000 in OJT funds from the AWDA.
He also falsely represented to AWDA that his companies, Cronus Development, LLC (Cronus), CGE Construction and Consulting, Inc. (CGE), and The Elite Academy and Learning Center (Elite), would hire and train employees with the goal of full-time employment. Instead, Edwards failed to provide training programs, submitted forged and fraudulent wage reimbursement requests for employees that never worked for his companies, and paid workers only a fraction of the salary reported to AWDA. More specifically, instead of receiving training, OJT employees for CGE and Cronus reported that they did odd jobs, including cleaning up properties, yard work and working at one of Edwards’ nightclubs. Despite these shortcomings, Edwards received full payments from AWDA through the OJT program.
Kevin Edwards, 46, of Atlanta, Georgia was sentenced by U.S. District Court Judge Steven C. Jones to two years, three months in federal prison and three years of supervised release and ordered to pay restitution in the amount of $489,710.43. On December 13, 2016, Edwards pleaded guilty to one count of theft of government funds.
This case was investigated by the U.S. Department of Labor, Office of Inspector General.
Assistant U.S. Attorney Jeffrey A. Brown prosecuted the criminal case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Summersville Bank Officer Sentenced for $151,000 Fraud, ID Theft SchemeRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a former Summersville, Mo., bank officer was sentenced in federal court today for a $151,000 fraud scheme in which he took out loans for himself by stealing the identity information of bank customers.
Keith Ray Smith, 44, of Summersville, was sentenced by U.S. District Judge Stephen R. Bough to of two years and one day in federal prison without parole. The court will issue an order for Smith to pay restitution to the bank.
On April 17, 2017, Smith pleaded guilty to one count of making false statements on a loan application and one count of aggravated identity theft.
Smith was employed as the bank loan officer and compliance officer at Community Bank (now Security Bank of the Ozarks) in Summersville. Smith admitted that he took out numerous loans in the names of several bank customers without their authorization. Smith submitted loan applications for varying amounts, totaling $81,040, between 2015 and June 2016. Smith admitted that he used the personal identification information of bank customers, including their bank account information and Social Security numbers, to falsely submit the loan applications.
Smith approved the loan applications for funding, then transferred the monies to his personal bank account and spent the monies to either gamble or pay for personal expenses.
In addition, Smith admitted that he had used his mother’s and brother’s personal information to apply for approximately $70,000 in loans without their knowledge or approval in 2010 and 2011. Smith approved the loans and deposited the proceeds from the fake bank loans into his personal bank account to pay for his gambling addiction. Smith agreed to repay all the money owed in 2012, and his mother and brother agreed to resubmit new loan documents that would take the place of the original false loan documents. Smith’s mother and brother told agents they allowed the new loan applications to be created because they did not want him to get into trouble.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FDIC – Office of Inspector General, the Federal Housing Finance Agency-Office of the Inspector General and the FBI.
Former Social Security Administrative Law Judge Sentenced to Four Years in Prison for Role in $550 Million Social Security Fraud SchemeRead the Press Release
A former social security administrative law judge (ALJ) was sentenced today to four years in prison for his role in a scheme to fraudulently obtain more than $550 million in federal disability payments from the Social Security Administration (SSA) for thousands of claimants.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge Michael McGill of the Social Security Administration-Office of Inspector General’s (SSA-OIG) Philadelphia Field Division, Special Agent in Charge Amy S. Hess of the FBI’s Louisville Field Division, Special Agent in Charge Tracey D. Montaño of the IRS Criminal Investigation (IRS-CI) Nashville Field Office and Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services-Office of the Inspector General (HHS-OIG) Atlanta Regional Office made the announcement.
David Black Daugherty, 81, of Myrtle Beach, S.C., was sentenced by U.S. District Judge Danny C. Reeves of the Eastern District of Kentucky, who also ordered Daugherty to pay restitution of over $93 million to the SSA and HHS. Daugherty pleaded guilty in May 2017 to two counts of receiving illegal gratuities.
According to admissions made as part of his guilty plea, beginning in 2004, Daugherty, as an ALJ assigned to the SSA’s Huntington, W. Va., hearing office, sought out pending disability cases in which Kentucky attorney Eric Christopher Conn represented claimants and reassigned those cases to himself. Daugherty then contacted Conn and identified the cases he intended to decide the following month and further solicited Conn to provide medical documentation supporting either physical or mental disability determinations. Without exception, Daugherty awarded disability benefits to individuals represented by Conn – in some instances, without first holding a hearing. As a result of Daugherty’s awarding disability benefits to claimants represented by Conn, Conn paid Daugherty an average of approximately $8,000 per month in cash, until approximately April 2011. All told, Daugherty received more than $609,000 in cash from Conn for deciding approximately 3,149 cases.
As a result of the scheme, Conn, Daugherty, and their co-conspirators obligated the SSA to pay more than $550 million in lifetime benefits to claimants based upon cases Daugherty approved for which he received payment from Conn.
Daugherty was indicted last year, along with Conn and Alfred Bradley Adkins, a clinical psychologist. The defendants were charged with conspiracy, fraud, false statements, money laundering and other related offenses in connection with the scheme.
Conn pleaded guilty on March 24, to a two-count information charging him with theft of government money and paying illegal gratuities, and was sentenced in absentia on July 14 to 12 years in prison. Conn absconded from court ordered-electronic monitoring on June 2, and is considered a fugitive. He remains under indictment. On June 12, Adkins was convicted after a jury trial of one count of conspiracy to commit mail fraud and wire fraud, one count of mail fraud, one count of wire fraud and one count of making false statements. Adkins is scheduled to be sentenced on September 22.
The SSA-OIG, FBI, IRS-CI and HHS-OIG investigated the case. Trial Attorney Dustin M. Davis of the Criminal Division’s Fraud Section and Trial Attorney Elizabeth G. Wright of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case, with previous co-counsel including Assistant U.S. Attorney Trey Alford of the Western District of Missouri and Investigative Counsel Kristen M. Warden of the Justice Department’s Office of the Inspector General.
Former School Janitor in Hancock County Indicted on Child Sexual Exploitation, Pornography ChargesRead the Press Release
ROCK ISLAND, Ill. – Frank Marion Stout, Jr., who worked as a custodian at Warsaw High School, is scheduled to appear in federal court on Sept. 5, for arraignment on child sexual exploitation and child pornography charges. This week, a grand jury returned its indictment against Stout, 45, of Elvaston, Ill., and charged him with two counts of sexual exploitation of minors, and with receiving and possessing child pornography. The indictment alleges that the offenses occurred from 2015 through July 2017.
Stout was arrested on July 26, and previously charged in a criminal complaint with receiving child pornography. During a detention hearing on Aug. 8, 2017, before U.S. District Judge Sara L. Darrow, in Rock Island, Stout was ordered released on a $250,000 bond.
The case is being prosecuted by Assistant U.S. Attorney Meredith DeCarlo. The charges are the result of an investigation by U.S. Immigration and Customs Enforcement Homeland Security Investigations and the Hancock County Sheriff’s Office.
Members of the public are encouraged to report suspected child predators and any suspicious activity through the ICE HSI toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423). This tip line is staffed around-the-clock by investigators.
If convicted, the statutory minimum penalty for each count of sexual exploitation of minors (two counts charged) is 15 years to 30 years in prison. The statutory minimum penalty for receiving child pornography is five years and up to 20 years in prison. For possession of child pornography, the penalty is up to 20 years in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Former Postal Employee Convicted for Fraudulently Obtaining Workers' Compensation BenefitsRead the Press Release
GREAT FALLS - The United States Attorney’s Office announced a federal court convicted Deborah Joy Durand of False Statements to Obtain Federal Employees’ Compensation Benefits, Wire Fraud, False Claims Relating to Workers’ Compensation Benefits, and Theft of Government Property. U.S. District Judge Brian Morris presided over the 3-day trial.
At trial, the government presented evidence that Durand had a back injury from her job at the Post Office. She had back surgery and was unable to work for a period of time. Instead of returning to work when capable, Durand lied to her doctors, embellished her symptoms, and ultimately obtained total disability. Agents from the Post Office conducted surveillance and saw that Durand was feeding horses, lifting hay bales, jogging in the mornings, clearing land, running chainsaws, removing stumps from fallen trees, building fences, mowing the lawn every week, riding horses twice a week, and many other physically challenging activities.
All total, Durand received over $693,403.63 based on her claims for workers’ compensation. Of that amount, she received $268, 892.18 for wages, despite having the ability to work at least a desk job at the Post Office.
In order to further prove the case, undercover federal agents called Durand and told her she won a free kayaking trip. During the ruse kayaking trip, Durand paddled approximately 30 miles in open ocean water over a three-day period. During the trip, Durand hiked, lifted heavy objects, and karate-kicked and judo-chopped an object held by an undercover federal agent. All of these activities were captured on video.
Two months after the kayaking trip, agents conducted a follow-up appointment with Durand to identify if she could work for the Post Office. Durand had no idea that the appointment was an undercover operation. During the interview, Durand claimed she could not sit or stand for long, and she was “totally sedentary.” She even claimed she was unable to work in any capacity.
This case was investigated by the United States Postal Service Office of Inspector General. Executive Special Agent in Charge Joanne Yarbrough said, “The majority of Postal Service employees are dedicated, hardworking, and trustworthy professionals who would never consider engaging in criminal conduct. However, when attempts to defraud the Federal Workers’ Compensation Program arise, those acts will not be tolerated, and they will be vigorously investigated by the USPS Office of Inspector General. The Workers’ Compensation Program is designed to ensure that individuals injured during the performance of their duties receive appropriate medical care and compensation. The conviction in this case is a result of the commitment between the United States Attorney’s Office, and the USPS Office of Inspector General, to ensure the integrity of the Federal Workers’ Compensation Program, and to hold those accountable for defrauding the program.”
Sentencing is set for November 30, 2017, at 1:30 p.m., at the Missouri River Courthouse, in Great Falls, Montana.
Former Postal Carrier Sentenced for Bribery, Drug Distribution and Delay of MailRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-305BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Briana Fugate, 27, of Cheektowaga, N.Y., who was convicted of bribery, distribution of marijuana, and delay of mail, was sentenced to 12 months by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Wei Xiang, who handled the case, stated that Fugate accepted bribes to help deliver what she believed to be drug shipments from the west coast, and that, as she learned to recognize drug parcels, she opened some and sold their contents herself. Fugate was a mail carrier for the United States Postal Service and had worked out of the Central Park Station Post Office in the City of Buffalo. The defendant was arrested following an undercover operation in 2015, when she distributed a pound of stolen marijuana out of her mail truck, while working her postal route. After law enforcement agents arrested Fugate, they discovered over 1,500 pieces of mail in her car that had not been delivered. Fugate was on probation for a state larceny conviction during this conduct.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski; the United States Postal Service, Office of the Inspector General, under the direction of Special Agent-in-Charge Monica Weyler, Eastern Area Field Office, Philadelphia, PA; and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Former Minister of Mines for the Republic of Guinea Sentenced to 7 Years in Prison for Receiving and Laundering $8.5 Million in Bribes from Chinese CompaniesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Kenneth A. Blanco, the Acting Assistant Attorney General of the Department of Justice’s Criminal Division, announced that MAHMOUD THIAM was sentenced today in Manhattan federal court to seven years in prison by U.S. District Judge Denise L. Cote, for his scheme to launder $8.5 million in bribes that THIAM received from senior representatives of a Chinese conglomerate. THIAM received the bribes in exchange for using his official position as Minister of Mines for the Republic of Guinea to facilitate the award to the Chinese conglomerate of exclusive and highly valuable investment rights in various sectors of the Guinean economy. THIAM was found guilty on May 3, 2017, following a seven-day trial, of two counts of money laundering.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As a unanimous jury found at trial, Thiam abused his position as Guinea’s Minister of Mines to take millions in bribes from a Chinese conglomerate, and then launder that money through the American financial system. Enriching himself at the expense of one Africa’s poorest countries, Thiam used some of the Chinese bribe money to pay his children’s Manhattan private school tuition and to buy a $3.75 million estate in Dutchess County. Today’s sentence shows that if you send your crime proceeds to New York, whether from drug dealing, tax evasion or international bribery, you may very well find yourself at the front end of a long federal prison term.”
Acting Assistant Attorney General Kenneth A. Blanco said: “Mahmoud Thiam engaged in a corrupt scheme to benefit himself at the expense of the people of Guinea. Corruption is a cancer on society that destabilizes institutions, inhibits fair and free competition, and imposes significant burdens on ordinary law-abiding people just trying to live their everyday lives. Today’s sentence sends a strong message to corrupt individuals like Thiam that if they attempt to use the U.S. financial system to hide their bribe money they will be investigated, held accountable, and punished.”
According to the allegations in the Indictment, other filings in Manhattan federal court, and the evidence admitted at trial:
MAHMOUD THIAM, a United States citizen who was Minister of Mines and Geology of the Republic of Guinea in 2009 and 2010, engaged in a scheme to accept bribes from senior representatives of a Chinese conglomerate and to launder that money into the United States and elsewhere. In exchange for these multimillion-dollar bribe payments, THIAM used his position as Minister of Mines to facilitate the award to the Chinese conglomerate of exclusive and highly valuable investment rights in a wide range of sectors of the Guinean economy, including near-total control of Guinea’s significant mining sector.
In order to receive the bribes covertly, THIAM opened a bank account in Hong Kong (the “Hong Kong Account”) and misreported his occupation to the Hong Kong bank to conceal his status as a public official in Guinea. Upon receiving the bribes, THIAM transferred millions of dollars in bribe proceeds from the Hong Kong Account to, among others, THIAM’s bank accounts in the United States; a Malaysian company that facilitated and concealed THIAM’s purchase of a $3,750,000 estate in Dutchess County, New York; private preparatory schools in Manhattan attended by THIAM’s children; and at least one other West African public official.
To further conceal the unlawful source of the bribery proceeds that THIAM transferred from the Hong Kong Account to banks in the United States, THIAM lied to two banks based in Manhattan and on tax returns filed with the Internal Revenue Service regarding the bribe payments, his position as a foreign public official, and the source of the funds in the Hong Kong Account. In total, THIAM received approximately $8.5 million in bribes from the Chinese conglomerate.
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In addition to the prison term, THIAM, 50, of Manhattan, was sentenced to three years of supervised release and was ordered to forfeit $8.5 million.
Mr. Kim praised and thanked the Department of Justice’s Criminal Division, as well as the Federal Bureau of Investigation for its outstanding investigative work. The Criminal Division’s Office of International Affairs also provided substantial assistance in this matter. The Office is grateful to the government of Guinea for providing substantial assistance in gathering evidence during this investigation.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Elisha J. Kobre and Christopher J. DiMase and Trial Attorney Lorinda I. Laryea of the Fraud Section of the Justice Department’s Criminal Division are in charge of the prosecution.
Former Miami-Dade Police Department Officer Sentenced to Four Years for Unlawfully Exporting FirearmsRead the Press Release
Former Miami-Dade Police Department Officer Michael Freshko, 48, was sentenced to four years in prison today, by U.S. District Judge Darrin P. Gayles, after previously pleading guilty to conspiracy to unlawfully export firearms from the United States to the Dominican Republic, on flights from Miami International Airport.
Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida; George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.
According to the court record, after receiving firearms from a co-conspirator Freshko used his official position as a MDPD officer to transport the firearms past the passenger screening area and into the portion of Miami International Airport that housed the departure gates. Freshko thereafter would deliver the firearms to a co-conspirator, who in turn would store the firearms within carry-on baggage. Next, a co-conspirator would travel to the Dominican Republic aboard a commercial flight, with the firearms within carry-on baggage. After arriving in the Dominican Republic, a co-conspirator would deliver the firearms to an associate.
Freshko further admitted that one or more firearms were smuggled in this manner on October 5, 2012, and multiple firearms were smuggled on December 7, 2012. Freshko also admitted that he and his co-conspirators smuggled six firearms from Miami International Airport to the Dominican Republic. The smuggled firearms consisted of four Glock .9 mm pistols, one Sig Sauer .9 mm pistol, and one Sig Sauer 5.56 rifle.
The case was investigated by law enforcement officers in South Florida and New Jersey. Mr. Greenberg thanked the FBI Miami Area Corruption Task Force; the MDPD Professional Compliance Bureau; the FBI Newark Division-Franklin Township Resident Agency; the Drug Enforcement Administration Newark Division-Patterson Post of Duty; and the Internal Revenue Service, Criminal Investigation, Newark Field Office. This case was prosecuted by Assistant U.S. Attorney Michael Davis.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Investment Advisor Sentenced to 5 Years in Prison for Stealing More Than $600K from ClientsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that AARON J. JOHNSON, 37, of Haddam, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 60 months of imprisonment, followed by three years of supervised release, for defrauding clients of his investment business.
According to court documents and statements made in court, JOHNSON was President and Chief Investment Officer of J. Capital Advisors, and was a registered investment advisor until October 21, 2013, when his and J. Capital Advisors’ registration was revoked by the State of Connecticut
In approximately April 2010, JOHNSON became a registered investment advisor with Trade PMR, a Florida company that provides brokerage and custody services for registered investment advisors. Almost immediately, JOHNSON began skimming excessive and unearned fees from client accounts. JOHNSON would submit a request to Trade PMR for fees for a particular client supposedly earned during a particular time period, and Trade PMR would, in turn, arrange for those fees to be deducted from the client’s account and deposited into a J. Capital Advisors’ sundry account over which JOHNSON maintained exclusive control. By December 2012, when Trade PMR terminated its relationship with JOHNSON, JOHNSON had taken a total of $619,231.09 in excessive fees from 19 victim clients.
JOHNSON also attempted to obstruct, delay and prevent the discovery of the full scope of his scheme by falsely claiming to one of his victims and to investigators with the State of Connecticut Department of Banking that fees taken from that victim’s account were due to a “glitch” in his billing system. JOHNSON submitted falsified documentation to Trade PMR including bogus account statements for clients, and letters of authorization that JOHNSON forged purporting to allow him to take fees from client accounts. JOHNSON also submitted a falsified account statement to Department of Banking investigators in an attempt to show that he had funds with which to pay restitution.
Judge Meyer ordered JOHNSON to pay full restitution to his victims.
JOHNSON was arrested on February 17, 2016. On February 23, 2017, he pleaded guilty to one count of mail fraud.
JOHNSON, who is released on a $250,000 bond, was ordered to report to prison on October 2, 2017.
This matter was investigated by the U.S. Postal Inspection Service and the State of Connecticut Department of Banking, Securities and Business Investments Division. The case was prosecuted by Assistant U.S. Attorney Susan L. Wines.
Former Guinean Minister of Mines Sentenced to Seven Years in Prison for Receiving and Laundering $8.5 Million in Bribes from China International Fund and China SonangolRead the Press Release
A former Minister of Mines and Geology of the Republic of Guinea was sentenced today to seven years in prison, and three years of supervised release, for laundering bribes paid to him by executives of China Sonangol International Ltd. (China Sonangol) and China International Fund, SA (CIF).
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Joon H. Kim of the Southern District of New York, Assistant Director Stephen E. Richardson of the FBI’s Criminal Investigative Division and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office made the announcement.
Mahmoud Thiam, 50, of New York, New York, was sentenced by U.S. District Judge Denise L. Cote of the Southern District of New York. Thiam was convicted on May 3, after a seven-day trial of one count of transacting in criminally derived property and one count of money laundering.
“Mahmoud Thiam engaged in a corrupt scheme to benefit himself at the expense of the people of Guinea,” said Acting Assistant Attorney General Blanco. “Corruption is a cancer on society that destabilizes institutions, inhibits fair and free competition, and imposes significant burdens on ordinary law-abiding people just trying to live their everyday lives. Today’s sentence sends a strong message to corrupt individuals like Thiam that if they attempt to use the U.S. financial system to hide their bribe money they will be investigated, held accountable, and punished.”
“As a unanimous jury found at trial, Thiam abused his position as Guinea’s Minister of Mines to take millions in bribes from a Chinese conglomerate, and then launder that money through the American financial system,” said Acting U.S. Attorney Kim. “Enriching himself at the expense of one Africa’s poorest countries, Thiam used some of the Chinese bribe money to pay his children’s Manhattan private school tuition and to buy a $3.75 million estate in Dutchess County. Today’s sentence shows that if you send your crime proceeds to New York, whether from drug dealing, tax evasion or international bribery, you may very well find yourself at the front end of long federal prison term.”
"Thiam abused his official position, but the outcome shows that no one is above the law," said Assistant Director Stephen E. Richardson. "The FBI will not stand by while individuals attempt to live by their own rules and use the United States as a safe haven for their ill-gotten gains. I would like to applaud the dedicated investigators and prosecutors who have worked to hold those who have committed these crimes accountable for their illegal actions.”
“Today’s sentencing should remind the public that no matter who you are, or how much money you have, you’re not immune from prosecution. The FBI will continue to use all resources at our disposal to uncover crimes of this nature and expose them for what they really are,” said Assistant Director in Charge Sweeney
According to evidence presented at trial, China Sonangol, CIF and their subsidiaries signed a series of agreements with Guinea that gave them lucrative mining rights in Guinea. In exchange for bribes paid by executives of China Sonangol and CIF, Thiam used his position as Minister of Mines to influence the Guinean government’s decision to enter into those agreements while serving as Guinea’s Minister of Mines and Geology from 2009 to 2010. The evidence further showed that Thiam participated in a scheme to launder the bribe payments from 2009 to 2011, during which time China Sonangol and CIF paid him $8.5 million through a bank account in Hong Kong. Thiam then transferred approximately $3.9 million to bank accounts in the U.S. and used the money to pay for luxury goods and other expenses. To conceal the bribe payments, Thiam falsely claimed to banks in Hong Kong and the U.S. that he was employed as a consultant and that the money was income from the sale of land that he earned before he was a minister.
The trial evidence showed that the purpose of the bribes was to obtain substantial rights and interests in natural resources in Guinea, including the right to be the first and strategic shareholder with Guinea of a national mining company into which Guinea had to, among other things, transfer all of its stakes in various mining projects and future mining permits or concessions that the government decided to develop on its own. China Sonangol and CIF, through their subsidiaries, also obtained exclusive and valuable rights to conduct business operations in a broad range of sectors of the Guinean economy, including mining.
The FBI’s International Corruption Squads in New York City and Los Angeles investigated the case. Trial Attorney Lorinda Laryea of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Elisha Kobre and Christopher DiMase of the Southern District of New York prosecuted the case. Fraud Section Assistant Chief Tarek Helou and Trial Attorney Sarah Edwards, and Money Laundering and Asset Recovery Section Senior Trial Attorney Stephen Parker previously investigated the case. The Criminal Division’s Office of International Affairs also provided substantial assistance in this matter.
The Fraud Section is responsible for investigating and prosecuting all matters relating to the Foreign Corrupt Practices Act (“FCPA”). Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Bookkeeper and Associate Arrested for Embezzling More Than $1 Million Dollars from Fresno BusinessRead the Press Release
FRESNO, Calif. — A Fresno bookkeeper and her associate were arrested today for their roles in embezzling over $1 million from a Fresno business, U.S. Attorney Phillip A. Talbert announced.
On Thursday, a federal grand jury returned a 15-count indictment against Brandi Marshall, 41, and Daniel Barrios Jr., 37, charging them with conspiracy, wire fraud, bank fraud and money laundering.
According to court documents, Marshall was employed as the company’s bookkeeper between October 2014 and March 2016 and was responsible for, among other things, receiving and depositing payment checks from customers to pay their invoices. During that time, she and Barrios misappropriated more than 100 checks and fraudulently deposited them into Barrios’s personal bank account. Marshall and Barrios used money derived from the fraudulently deposited checks for personal purchases, including more than $35,000 to purchase and accessorize a 2016 Ford Mustang GT, and more than $25,000 for a 2012 Dodge Challenger. Marshall created fictitious entries in the company’s computer accounting application to attempt to conceal the embezzlement. Together, Marshall and Barrios embezzled more than $1 million dollars.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.
If convicted, Marshall and Barrios face a maximum statutory penalty of 30 years in prison and a $1 million fine for each of the wire fraud and bank fraud charges, and 10 years in prison and a $250,000 fine for conspiracy to launder money. 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former A.B.I.A. Baggage Handler Sentenced to Federal Prison for Stealing FirearmsRead the Press Release
This morning, U.S. District Judge Sam Sparks sentenced Ja’Quan Johnson, a 26-year-old baggage handler at Austin Bergstrom International Airport (ABIA), to 18 months in federal prison followed by three years of supervised release for stealing items from checked baggage, including a .40 caliber Glock semi-automatic pistol, announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, and Austin Police Chief Brian Manley.
On June 7, 2017, Johnson pleaded guilty to one count of theft from an interstate shipment and one count of possession of a stolen firearm. By pleading guilty, Johnson admitted that between November 29, 2016, and February 2, 2017, he stole seven handguns from inside passenger bags at ABIA.
The Federal Bureau of Investigation, Transportation Security Administration and the Austin Police Department’s Aviation Division conducted this investigation. Assistant United States Attorney Gregg N. Sofer prosecuted this case for the Government.
Folcroft Man Sentenced to 20 Years for Internet Child ExploitationRead the Press Release
Jeffrey Keagle, 49 of, Folcroft, PA was sentenced yesterday to 20 years in federal prison for his conviction for distribution, receipt, and possession of a collection of more than 75,000 images and videos of children being sexually assaulted and abused, announced Acting United States Attorney Louis D. Lappen.
This was Keagle’s first arrest. In addition to the 20 year term of incarceration, District Court Judge Eduardo Robreno also imposed a 20 year term of supervised release, $45,000 in restitution payments to the victims, $400 in special assessments, and forfeiture of all of Keagle’s computer and electronic equipment used in these offenses.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States 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.
The case was investigated by the Delaware County District Attorney’s Office Criminal Investigation Division and the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Michelle Rotella.
Florida Men Plead Guilty to Credit Card Fraud Conspiracy and Aggravated Identity TheftRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Jose Castillo Febles, 30, of Doral, Florida pleaded guilty today; and Juan Carlos Febles, 52, of Miami, Florida, pleaded guilty yesterday in U.S. District Court to conspiracy to commit access device fraud and aggravated identity theft.
Court records show that between November 2015 and June 2016, the defendants and others used stolen credit and debit card numbers to purchase merchandise. In late May 2016, as part of the conspiracy, the defendants and others traveled to Maine. On May 29, 2016, Jose Castillo Febles purchased over $500 of merchandise at a Portland Walgreens using a stolen card number belonging to a victim from Auburn. On June 15, 2016, after a co-conspirator, Yaisder Herrera Gargallo, purchased merchandise at another Portland Walgreens using a stolen card number, store personnel notified the police and provided a license plate number. On June 16, 2016, Juan Carlos Febles purchased over $700 of merchandise at an Augusta Home Depot using a stolen card number belonging to a victim from Vassalboro.
On June 18, 2016, a Cumberland County Sheriff’s Office deputy stopped the vehicle in which the defendants and Herrera Gargallo were traveling. The stop led to their arrest and the discovery of merchandise, numerous fraudulent credit cards, and a laptop computer. The laptop was later found to contain credit card numbers and related data.
Both men face up to five years in prison and a $250,000 fine on the conspiracy charge. Both men also face a mandatory sentence of two years in prison on the aggravated identity theft charge, to be served consecutively to the sentence imposed for the conspiracy charge. They will be sentenced after the completion of presentence investigation reports by the U.S. Probation Office. Co-defendant Yaisder Herrera Gargallo pleaded guilty to the same charges on June 19, 2017, and awaits sentencing.
The case was investigated by the Cumberland County Sheriff’s Office, the Portland Police Department and the U.S. Secret Service.
Final Defendant Sentenced in Seventh Ward Heroin and Firearm ConspiracyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that STERLING PIPKINS, a/k/a “Shoe,” age 32, of New Orleans, was sentenced yesterday after previously pleading guilty to federal narcotics charges. PIPKINS had previously pleaded guilty to conspiracy to distribute 100 grams or more of heroin.
U.S. District Judge Carl J. Barbier sentenced PIPKINS to 72 months of imprisonment followed by four years of supervised release.
According to court documents, PIPKINS was a central figure in a conspiracy to sell heroin in New Orleans’ Seventh Ward, specifically the intersection of Frenchmen and North Villere Streets. DARRELL LEWIS was the leader of the group. KEVIN WALKER, CARL LEWIS, and PIPKINS served as street-level dealers, selling heroin to both other heroin dealers and users. Members of the conspiracy also kept and maintained firearms in furtherance of drug dealing.
PIPKINS committed the instant offense while he was supervised release for a prior federal conviction for possessing a firearm as a felon. On May 4, 2017, U.S. District Judge Lance M. Africk revoked PIPKINS’ supervised release and sentenced him to 24 months of imprisonment to be served consecutively with the sentence issued by Judge Barbier.
PIPKINS was the final member of this conspiracy to be sentenced. The conspiracy included eleven others who have already been sentenced, including DARRYL LEWIS, KEVIN WALKER, DARRYL LEWIS, CARL LEWIS, MICHAEL MCQUITTY, TYRONE HUDSON, IRVIN WATSON, CONQUISTADORE MARTIN, NICHIREN RADCLIFFE, DEMOINDE ROWLEY, and NERIMANE BOUCHAMA.
Acting U.S. Attorney Evans praised the work of the FBI New Orleans Field Office. Assistance was provided by the DEA New Orleans Field Division, the New Orleans Police Department, the Major Crimes Task Force, the FBI Kansas City Division (Jefferson City Resident Office), and the St. Louis County Police Department. Assistant United States Attorneys Matthew Payne, Shirin Hakimzadeh, and Andre Lagarde were in charge of prosecution.
Federal Inmate Pleads Guilty to AssaultRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Clayton John Shinn, age 27, an inmate at the United States Penitentiary, Canaan, Waymart, Pennsylvania, pleaded guilty to assault on August 24, 2017, before United States District Court Judge Robert D. Mariani.
According to United States Attorney Bruce D. Brandler, Shinn pleaded guilty to intentionally assaulting another inmate on October 4, 2016, by repeatedly striking, punching and kicking the inmate, resulting in serious bodily injury.
Shinn and co-defendant, Jeffrey Lynn Mattox, age 33, were indicted by a federal grand jury in Scranton on January 17, 2017. Mattox’s case is still pending.
The case was investigated by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service. Assistant United States Attorney Michelle Olshefski is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the crime is imprisonment for 10 years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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East Wareham Man Sentenced for Role in Drug and Money Laundering RingRead the Press Release
BOSTON – An East Wareham man was sentenced yesterday in federal court in Boston for drug charges.
Evan Lopes, 28, was sentenced by U.S. District Court Judge Indira Talwani to three years of probation. On May 23, 2017, Lopes pleaded guilty to possession of Methylone with intent to distribute. Lopes was the last of four Cape Cod co-defendants to plead guilty to drug and money laundering charges and the third to be sentenced.
On Jan. 15, 2015, law enforcement officers executed a search warrant at Lopes’ residence where they recovered two kilograms of Methylone from a woodpile on the property. Lopes stashed the drugs for co-defendant David Landry, who, from 2010 to 2014, led a drug and money laundering ring on Cape Cod. Landry was arrested by state authorities in September 2014, but continued to communicate with and direct his drug associates from prison. Landry asked Lopes to store the Methylone at his house in preparation for transferring it to another associate who would sell it for $40,000.
From May 2014 to January 2015, Landry and another co-defendant, Justin Groom, conspired to manufacture and distribute marijuana. Landry, along with his mother, Diane Johnson, and Groom conspired to launder the drug proceeds in order to disguise the nature of the funds and continue their drug trafficking activities. Landry, a convicted felon, was also found guilty of the constructive possession of a .40 caliber semi-automatic pistol.
Landry and Groom were sentenced in March 2017 to 78 months in prison and two years of probation, respectively. Johnson pleaded guilty to money laundering conspiracy on May 17, 2017, and is scheduled to be sentenced on Oct. 2, 2017.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Barnstable Police Chief Paul MacDonald; Barnstable County Sheriff James M. Cummings; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Cape & Islands District Attorney Michael O’Keefe made the announcement. Assistant U.S. Attorney Ted Heinrich of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
Doddridge County man sentenced for illegal possession of a firearmRead the Press Release
CLARSKBURG, WEST VIRGINIA – A Greenwood, West Virginia man was sentenced today to 81 months incarceration for illegal possession of a firearm, Acting United States Attorney Betsy Steinfeld Jividen announced.
Thomas Charles Goodwine, 23, pled guilty to one count of “Unlawful Possession of a Firearm” in April 2017. Goodwine, having been convicted of two felonies in Pennsylvania, admitted to having in his possession a 9mm caliber pistol. The crime occurred in January 2016 in Harrison County.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.
District Man Sentenced to 21 Years in Prison for Killing Man in Southeast WashingtonRead the Press Release
WASHINGTON – Clifton Johnson, 27, of Washington, D.C., was sentenced today to 21 years in prison on charges stemming from the slaying of a man in Southeast Washington, U.S. Attorney Channing D. Phillips announced.
Johnson was found guilty by a jury in May 2017 of second-degree murder while armed and a related weapons offense. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Judith Bartnoff. Following his prison term, Johnson will be placed on five years of supervised release.
According to the government’s evidence, on the evening of Nov. 23, 2015, the victim, Dewayne Grandson, and his girlfriend stopped at a Chinese restaurant in the 2500 block of Pennsylvania Avenue SE, where Mr. Grandson ran into the defendant by happenstance. After a brief exchange, Johnson motioned for Mr. Grandson to come outside. Once outside, Johnson shot Mr. Grandson multiple times. Mr. Grandson, who was also armed, was able to fire one shot and hit Johnson in the torso. Mr. Grandson, 24, died from his injuries.
Following the shooting, Johnson fled the scene. An off-duty officer with the Metropolitan Police Department (MPD) stopped him shortly thereafter. The murder weapon was found in the defendant’s flight path.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Liaison and Operations Manager Linda McDonald; Paralegal Specialist Debra Joyner; Investigative Analyst Zachary McMenamin; Litigation Technology Specialists Leif Hickling, Anisha Bhatia, and Joshua Ellen; former Litigation Technology Specialist Aneela Bhatia; Victim/Witness Services Coordinators M. Laverne Perry and Katina Adams-Washington, and Victim/Witness Advocate James Brennan.
Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Nebiyu Feleke and Richard Barker, who investigated and prosecuted the matter.
District Man Pleads Guilty to Kidnapping and Sexually Assaulting Intoxicated StrangerRead the Press Release
WASHINGTON – Saul Castillo, 20, of Washington, D.C., pled guilty today to kidnapping and sexually abusing an intoxicated stranger in the stairwell of his apartment building in Northwest Washington, announced U.S. Attorney Channing D. Phillips.
Castillo pled guilty in the Superior Court of the District of Columbia to charges of kidnapping and second-degree sexual abuse. After completing any term of incarceration imposed by the court, Castillo will be subject to deportation proceedings, lifetime registration as a sex offender, and a period of supervised release. The Honorable Judith Bartnoff ordered that Castillo be detained pending sentencing on Nov. 3, 2017.
According to the government’s evidence, Castillo found the victim in the early morning hours of May 7, 2017 on a sidewalk near Lafayette Square in downtown Washington. She was extremely intoxicated, unable to walk, and told Castillo that she wanted to go to her home. Castillo hailed a passing taxi and brought her back to his apartment building in the 1700 block of Seventh Street NW.
Once inside, the victim refused to enter Castillo’s fourth-floor apartment and repeated that she wanted to go home. On multiple occasions, she fell and laid down on the hallway floor due to her intoxication. She tried to push Castillo away and return to the elevator to leave the building, but Castillo blocked her and pulled her back toward his apartment. Because of the commotion this was causing in the hallway, Castillo lifted her and carried her to the fourth- floor staircase, where Castillo sexually assaulted her. His conduct inside the building was captured on building surveillance cameras, and Castillo was arrested on May 12, 2017.
In announcing the plea, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Juanita Harris and Paralegal Specialist Tiffany Jones. Finally, he commended the work of Assistant U.S. Attorneys Marisa West and J. Matt Williams, who investigated and prosecuted the case.
Developer Sentenced for Embezzling from A Bankruptcy EstateRead the Press Release
Tampa, FL – U.S. District Judge Elizabeth Kovachevich today sentenced Clark D. East (59, Sugarland, TX) to 30 months in federal prison for embezzlement from a bankruptcy estate. He pleaded guilty on April 3, 2017.
According to the plea agreement, East obtained a loan from Stearns Bank, a member bank of the Federal Home Loan Bank of Minneapolis, to develop a property located at 3700 Ulmerton Road Plaza in Clearwater. He subsequently defaulted on the loan and Stearns Bank obtained approval to sell the property at foreclosure on March 27, 2012. The day before the scheduled foreclosure sale, East filed for bankruptcy protection with the U.S. Bankruptcy Court through his company, 3700 Ulmerton Road, LLC. During the bankruptcy proceedings, East was ordered to sell the property and to remit $1.2 million in sales proceeds to Stearns Bank. Rather than repaying the bank, East embezzled approximately $800,000 of proceeds that were part of the bankruptcy estate and due to Stearns Bank.
This case was investigated by Federal Bureau of Investigation and the Federal Housing Finance Agency – Office of Inspector General. The Office of the U.S. Trustee for the Middle District of Florida (Tampa Division) also provided substantial assistance. It was prosecuted by Special Assistant United States Attorney Chris Poor and Assistant United States Attorney Jay G. Trezevant.
Costa Rican Defendant Appears in Federal Court to Face Fraud ChargesRead the Press Release
PITTSBURGH – A resident of Costa Rica made his initial appearance in U.S. District Court in Pittsburgh this afternoon to face multiple charges involving conspiracy to import prescription drugs from India for distribution, without prescriptions, to consumers throughout the United States, Acting United States Attorney Soo C. Song announced today.
The five-count indictment, returned on October 13, 2015, charged Costa Rican Ramiro Navarro Quesada, 42, with three counts of mail fraud and one count each of conspiracy to misbrand and smuggle Schedule II and Schedule IV and erectile dysfunction drugs and money laundering. Quesada was arrested in Madrid, Spain, earlier this year. He was extradited to the United States yesterday.
According to the indictment, Quesada used a Costa Rican website to advertise the Internet sale of Schedule II and IV controlled substances and erectile dysfunction drugs, which were exported from India and received in the United States by co-defendants Sylvia and Miguel Cruz. The latter two then mailed the drugs to U.S. consumers who had ordered them through the Costa Rican website. The consumers were falsely led to believe that the drugs were “FDA approved,” that the counterfeit drugs were genuine Adderall and Viagra, and that it was legitimate to distribute such drugs without prescriptions.
"Ordering prescription drugs online from illegal websites can lead to dangerous consequences for U.S. consumers. Such websites, while they may look professional and legitimate, often sell drugs that have not been checked for safety or effectiveness," said Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations' Metro Washington Field Office. "We will continue to pursue and bring to justice criminals who operate outside of FDA's oversight and place the public's health at risk."
The law provides for a maximum total sentence of 20 years in prison on each of the mail fraud and money laundering counts, and 5 years on the conspiracy count; as well as a $250,000 fine on each count except money laundering, which carries a potential fine of $500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul Desai is prosecuting this case on behalf of the government.
The Food and Drug Administration, Office of Criminal Investigations, the Postal Inspection Service, Homeland Security Investigations, the Pennsylvania State Police and the Internal Revenue Service - Criminal Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Convicted Felon Sentenced to over 3 Years in Prison for Possessing FirearmsRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that NOLAN CASON, age 26, of New Orleans, was sentenced yesterday after previously pleading guilty to two counts of felon in possession of a firearm.
U.S. District Judge Eldon E. Fallon sentenced CASON to 41 months of confinement, 3 years of supervised release, and a mandatory special assessment of $100.
According to court documents, Officers of the New Orleans Police Department arrested CASON on August 8, 2014 for possessing a semi-automatic firearm with an attached extended magazine containing 20 live rounds. On May 3, 2015, Louisiana State Police Troopers arrested CASBON for possessing two semi-automatic handguns, a 50-round magazine containing 22 live bullets, and a 30-round magazine containing 24 live bullets. CASON was prohibited from possessing these firearms because he had been convicted previously of possession of cocaine in Orleans Parish Criminal District Court.
Acting U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New Orleans Police Department, and the Louisiana State Police for their work in this matter. Assistant United States Attorneys Maria M. Carboni and Matthew R. Payne were in charge of the prosecution.
Concord Woman Pleads Guilty to Drug Trafficking ChargesRead the Press Release
CONCORD, N.H. – Jessica Lord, 36, of Concord, pleaded guilty to drug distribution and conspiracy charges, announced Acting United States Attorney John J. Farley.
According to court documents and statements made during Lord’s plea hearing, an undercover Concord police detective bought 30 milligram pills containing oxycodone from Lord on five separate occasions in June and July 2016. During the transactions, Lord stated that she got the pills from Patrick J. Brooks, III, of Boscawen. On July 20, Lord was on her way to a sixth transaction with the undercover detective, when Concord police officers stopped her car. At the time of the stop, Lord possessed more 30 mg oxycodone pills. In addition, the execution of a search warrant at Brooks’ home the same day yielded nearly two thousand 30 mg oxycodone pills and approximately $20,000 in cash. The cash recovered from Brooks’ home included currency that the Concord police detective had used to buy oxycodone in an undercover transactions with Lord a week earlier.
United States District Judge Paul J. Barbadoro accepted Lord’s guilty plea and scheduled her sentencing for November 30, 2017. Lord faces a maximum term of imprisonment of 20 years, a fine of up to $1,000,000, or both. The court will impose her actual sentence based on the United States Sentencing Guidelines and other statutory factors.
Brooks previously pleaded guilty to drug and conspiracy charges and was sentenced by 51 months in prison.
This matter was investigated by the Concord Police Department with important support from the Boscawen Police Department. The case is being prosecuted by Assistant United States Attorney Bill Morse.
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Columbus Regional Health Employees Sentenced for Wire Fraud & Tax EvasionRead the Press Release
United States Attorney for the Middle District of Georgia, G. F. “Pete” Peterman, III, announces that Carol Adcock, age 57, was sentenced to serve 15 months and Barbara McFerrin, age 55, was sentenced to serve 33 months in federal prison for wire fraud and tax evasion. The sentences were handed down by Chief United States District Court Judge Clay D. Land in Columbus, Georgia, on August 22, 2017.
Ms. Adcock and Ms. McFerrin were employees at Columbus Regional Health in Columbus, Georgia. As the accounts payable manager, Ms. Adcock was responsible for paying all invoices and making entries into the general ledger. Ms. McFerrin also had access to the general ledger as director of corporate finance. Both individuals had hospital-issued credit cards. Employees were not permitted to use company cards for personal use. In 2011, Columbus Regional switched credit card companies and employees were required to surrender their old card. However, Ms. McFerrin and Ms. Adcock kept their cards and began to make unauthorized purchases and using the cards for their personal benefit. From 2011 to 2014, Ms. McFerrin and Ms. Adcock combined spent approximately $1.2 million on car, pet, and pool expenses, as well as utility expenses, school expenses, hotels or rental properties, and medical expenses They also made payments to the United States Treasury to satisfy personal income tax obligations.
"These individuals violated the trust of their former employer and benefited financially. The judgement against Adcock and McFerrin should serve as an example to those who decided to embezzle from their employer. Employers give their employees a lot of trust, when you take advantage of that trust, there will be consequences," IRS Criminal Investigation Acting Special Agent in Charge James E. Dorsey said.
“These two individuals, who were respected and trusted enough by their employer to have been promoted to these high positions of responsibility and authority, unfortunately decided to abuse that trust and misuse that responsibility and authority to steal from that very same employer. They certainly deserve the sentences imposed on them as the result,” said United States Attorney Peterman.
In addition to her prison sentence, Ms. Adcock will be required to pay restitution in the amount of $246,829.26 and Ms. McFerrin will be required to pay restitution in the amount of $662,105.81.
This case was investigated by the Columbus Office of the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. Assistant United States Attorney Crawford Seals prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, United States Attorney’s Office, at (478) 752-3511.
Brunswick couple sentenced to prison for obstructing federal investigationRead the Press Release
A Brunswick couple was sentenced to prison for obstructing an investigation.
Eric Dentz was sentenced to two years and four months in prison after previously being found guilty of conspiracy to obstruct justice and tamper with witnesses and failure to file taxes.
Rebecca Dentz was sentenced to one year in prison after being found guilty of destruction, alteration and falsification of records and false statements to federal agents
The Dentz’s repeatedly obstructed an investigation into themselves and their companies Dentz Painting Incorporated and Global Contracting Service,. Eric Dentz threatened agents with physical violence after they attempted to serve subpoenas and obtain documents relevant to the investigation,. Additionally, Rebecca Dentz repeatedly lied to agents about her and Eric Dentz’s involvement with Global and the location of records responsive to the subpoena, according to court documents.
During proceedings held before United States District Chief Judge Solomon Oliver, Jr., Eric and Rebecca Dentz continued to obstruct justice by lying about the status and condition of the records. Specifically, the Dentzs lied by stating that the records sought by the grand jury were destroyed in a flood and later supplied agents and the court with a fake cleaning invoice in an attempt to support their false claims. Further investigation revealed that the invoice had been fabricated at Eric and Rebecca Dentz’s request. The Dentzs also obstructed and delayed the investigation by falsely stating that third parties possessed the records sought by the grand jury when those individuals in fact had no such records, according to court documents.
Eric Dentz also repeatedly failed to file income tax returns with the IRS over several years, according to court documents.
This case is being prosecuted by Assistant U.S. Attorney Om Kakani, following an investigation by the Department of Labor, Employee Benefits Security Administration, the Department of Labor, Office of Inspector General, and the Internal Revenue Service, Criminal Investigation Division.
Biloxi Man Sentenced for Possession of Child PornographyRead the Press Release
Gulfport, Miss. – Michael Lee, 53, of Biloxi, Mississippi, was sentenced on August 14, 2017, by Chief U.S. District Judge Louis Guirola, Jr., to serve 108 months in federal prison followed by a lifetime of supervised release for possession of child pornography, announced Acting U.S. Attorney Harold Brittain and Special Agent in Charge Raymond R. Parmer, Jr.
In addition to the prison term, Lee was ordered to pay restitution of $1,000 to a victim and a $5,000 special assessment under the Justice for Victims of Trafficking Act of 2015.
The investigation revealed that on September 16, 2014, Lee was identified as the individual at a Biloxi address who, through activity with a Peer to Peer file sharing network, knowingly possessed on his computer and hard drive visual depictions of minors engaging in sexually explicit conduct.
This case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorneys Andrea Jones and Glenda Haynes.