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Monday 10 July 2017
Tribal District Vice-Chair Appears in Federal Court for Embezzlement ChargeRead the Press Release
United States Attorney Randolph J. Seiler announced that a Lacreek District Vice-Chair has been indicted by a federal grand jury for Embezzlement and Theft from an Indian Tribal Organization.
Charles Leo Cummings, 57, of Martin, South Dakota, was indicted on June 20, 2017. He made his initial appearance before U.S. Magistrate Judge Daneta Wollman on July 7, 2017, and pled not guilty to the indictment.
The maximum term of imprisonment upon conviction is up to 5 years, and/or a $250,000 fine, a period of 3 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment charges that between December 28, 2015, and January 18, 2016, Cummings did willfully and knowingly embezzle, steal, misapply, and convert to his own use more than $1,000 of monies, funds, credits, goods, assets, and other property belonging to the Oglala Sioux Tribe.
The investigation is being conducted by the Federal Bureau of Investigation and the Department of Interior, Office of Inspector General. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the United States Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the United States Attorney’s Office at (605)330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Tohono O’odham Woman Sentenced to 5 Years for Child AbuseRead the Press Release
PHOENIX – Today, Rosalee Vavages, 55, of Sacaton, Ariz., a member of the Tohono O’odham Indian Nation, was sentenced by U.S. District Judge John J. Tuchi to 63 months in prison. Vavegas had previously pleaded guilty to child abuse, likely to produce death or serious bodily injury. Previously, co-defendant Ernestine Jefferson, 74, a member of the Gila River Indian Community, was sentenced to 30 months in prison, also after pleading guilty to child abuse. Victims are current members of the Tohono O’odham Indian Nation and the offenses occurred on the Gila River Indian Community.
The investigation in this case was conducted by the Gila River Police Department and the Federal Bureau of Investigation. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-16-1242-PHX-JJT
RELEASE NUMBER: 2017-059_Vavages
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Three Former Employees of Evans Landscaping Plead Guilty to Involvement in Defrauding City, State ‘Small Business’ & ‘Minority Business’ ProgramsRead the Press Release
CINCINNATI – Three former employees of Evans Landscaping pleaded guilty in U.S. District Court to charges related to defrauding the City of Cincinnati and other public entities including universities and numerous school districts through fraudulent small business and minority business contracts.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Office, and Ohio Attorney General Mike DeWine announced the pleas entered today before U.S. District Judge Michael R. Barrett.
Maurice Patterson, former CFO of Evans Landscaping, and Michael Moeller, former manager at Evans Landscaping, each pleaded guilty to one count of conspiracy to commit wire fraud. Conspiracy to commit wire fraud is punishable by up to 20 years in prison, up to three years of supervised release, a fine of up to $250,000 and mandatory restitution.
John Dietrich, former CFO of Evans Landscaping, pleaded guilty to one count of misprision of a felony. Misprision of a felony carries a maximum sentence of three years in prison, up to one year of supervised release, a fine of up to $250,000 and mandatory restitution.
Documents filed with their guilty pleas say Patterson and Moeller conspired with others between 2008 and 2014 to create a company, Ergon Site Construction, LLC, to serve as a fraudulent Small Business Enterprise (SBE) and Minority Business Enterprise (MBE) company for the benefit of Evans Landscaping in obtaining public contracts. Dietrich became aware of the conspiracy and scheme to defraud and helped conceal the crime in 2013.
U.S. Attorney Glassman commended the investigation of this case by the FBI’s Southern Ohio Public Corruption Task Force, which includes special agents from the FBI and the Ohio Bureau of Criminal Investigation, as well as Assistant United States Attorney Timothy S. Mangan and Deputy Criminal Chief Emily N. Glatfelter, who are prosecuting the case.
Six Orlando-Area Residents Indicted for Conspiracy Involving Impersonating Homeland Security Agents and Wire FraudRead the Press Release
Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of a 25-count indictment charging John Pierre Mack III (25, Kissimmee, former member of the Florida National Guard), Ronnie Rolland Montgomery (28, Orlando), David Augusta Jones, III (26, Orlando), Dillon McDowell (25, Orlando), Amaryllis Pagan (19, Kissimmee), and Ashley Ferrell (26, Orlando) with one count of conspiracy to commit wire fraud and multiple counts of wire fraud. Mack, Montgomery, and Jones are charged with 24 counts of wire fraud. Ferrell, McDowell, and Pagan are charged with 13, 9, and 4 counts of wire fraud, respectively. The maximum penalty for each count is 20 years in federal prison.
According to the
indictment , from at least August 1, 2015, through July 6, 2017, these individuals were part of a criminal organization that was demanding money from victims by claiming to be agents with the Department of Homeland Security (DHS) and/or the Cyber Crimes Center (C3). Typically, the victims had responded to an online dating post and engaged in a conversation and exchange of photos with a female that they believed was an adult. The victims were later contacted by schemers posing as “agents,” who alleged that the female from the dating post was under the age of 18. The “agent” would claim that they had an arrest warrant for charges of soliciting a minor and would then direct the victim to make payments for “fines” and “penalties,” in lieu of being arrested. To further their scheme, the “agents” sent paperwork to the victims displaying the DHS seal, a judge’s name, and legal terms related to child exploitation. The schemers utilized email addresses containing variants of “child exploitation” and “cyber crimes center” in their correspondence. The victims were then directed to retail locations where they were to wire money to pay these “fines” or “fees,” and the defendants then took turns picking up the payments. The defendants also traded victims with each other to continue the scheme and to get more money. The victims, many of whom were members of the military or elderly, sent multiple extortion payments, ranging from $200 to $1,900 per transaction, fearing that they would otherwise be arrested.An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s Office of Professional Responsibility and Homeland Security Investigations (San Diego) with assistance from the Naval Criminal Investigative Service (San Diego) and the Osceola County Sheriff’s Office. It is being prosecuted by Special Assistant United States Attorney Christina R. Downes, on assignment from the Office of the Principal Legal Advisor, ICE.
Senior Member of Drug Trafficking Organization Admits Conspiring to Sell Heroin in New JerseyRead the Press Release
TRENTON, N.J. – A senior member of a large-scale drug trafficking organization today admitted distributing heroin in Ocean and Monmouth Counties and elsewhere in New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Robert Britt, a/k/a “True,” 45, of Asbury Park, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an indictment charging him with conspiracy to distribute heroin.
Between March and May 2014, 21 other individuals, including numerous members of the drug trafficking organization, were charged in two separate criminal complaints with conspiring to distribute heroin and other related offenses. The complaint referred to the drug trafficking organization as the “Britt-Young DTO,” after two of its leading members, Britt and Rufus Young, a/k/a “Equan,” a/k/a “E-Money,” a/k/a “Kintock.” As of today’s plea, all 22 defendants have been convicted.
According to documents filed in the case and statements made in court:
Between July 2010 and March 2014, Britt conspired with others to distribute heroin in Ocean and Monmouth counties as part of the Britt-Young DTO. During his plea hearing, Britt admitted that he distributed between one and three kilograms of heroin in furtherance of the conspiracy and that he served as a manager or supervisor of the conspiracy.
Under the terms of the plea agreement, if accepted by the court, Britt will receive a sentence of 12 years in prison. Sentencing is scheduled for Nov. 2, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI Red Bank Resident Office, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation.
The government is represented by Assistant U.S. Attorneys Nicholas Grippo and Brendan Day of the U.S. Attorney’s Office Criminal Division in Trenton.
Scranton Business Owners Sentenced to Home-Confinement in Unemployment Benefit SchemeRead the Press Release
WILKES-BARRE. The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on July 8, 2017, United States District Court Judge A. Richard Caputo sentenced Samuel and Steven Borgia to 6 months home-confinement and 1-year probation for conspiring to commit wire fraud in connection with the fraudulent receipt of unemployment benefits. Judge Caputo also ordered that the defendants pay $169,524.33 in restitution to the Federal and State Department of Labor.
According to United States Attorney Bruce D. Brandler, Samuel Borgia, age 52, and Steven Borgia, age 46, owned and operated Home Resource Corporation, a home improvement company in Scranton. From 2009 to 2012, the defendants filed fraudulent claims for unemployment compensation and received unemployment benefits to which they were not entitled. Additionally, the defendants instructed a number of their employees who were employed to falsely report to the Pennsylvania Department of Labor that the employees were not employed in order for the employees to also fraudulently receive unemployment benefits. The defendants and their co-conspirators received more than $150,000 as a result of the scheme and caused more than $300,000 in losses to both the Federal and State Department of Labor.
The Borgia brothers plead guilty to a one-count information pursuant to plea agreements on November 30, 2016.
The case was investigated by the United States Department of Labor, Office of the Inspector General, and the Pennsylvania Department of Labor. Assistant United States Attorney Evan Gotlob is prosecuted the case.
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Salina Man Sentenced to 20 Years on Federal Drug, Gun ChargesRead the Press Release
TOPEKA, KAN. - A Salina man was sentenced Monday to 20 years in federal prison on drug and gun charges, U.S. Attorney Tom Beall said.
Jason Lars Sheets, 36, Salina, Kan., pleaded guilty to one count of conspiracy to distribute methamphetamine and one count of brandishing firearms in furtherance of drug trafficking. In his plea, he admitted he was a member of a drug trafficking organization operating in the Salina area in 2016. He admitted that he and his co-defendants jointly possessed 18 firearms including pistols and rifles.
Co-defendants include:
Seth Allen George, 26, Salina, who was sentenced in June to 18 years.
Tyler Lee Shea, 21, Salina, Kan., who was sentenced in June to 15 years.
Kyle Allen Palmer, 30, Salina, Kan., who was sentenced in April to 15 years.
Beall commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Salina Police Department, the Saline County Sheriff’s Office and Assistant U.S. Attorney Greg Hough for their work on the case.
Russian-Born Cybercriminal Sentenced to over Nine Years in PrisonRead the Press Release
ALEXANDRIA, Va. – A nearly decade-long member of several elite Russian-speaking cybercrime forums was sentenced today to 110 months in prison for running a sophisticated scheme to steal and traffic sensitive personal and financial information in the online criminal underground.
Alexander Tverdokhlebov, 29, of Los Angeles, pleaded guilty on March 31 to wire fraud. Accordingly to court documents, the defendant, who emigrated from Russia in 2007 and subsequently obtained U.S. citizenship, was an active member of several highly exclusive Russian-speaking cybercrime forums since at least 2008. Through his membership on these forums, Tverdokhlebov forged lucrative business partnerships with other Russian-speaking cybercriminals, with whom he exchanged tools, services, and stolen personal and financial information.
The defendant offered a variety of illegal services on these forums, including the laundering of stolen funds. He also operated several “botnets,” which are groups of compromised computers that can be used to steal credit card and other sensitive financial information. At various times between 2009 and 2013, Tverdokhlebov claimed on the cybercrime forums that, among other things, he possessed 40,000 stolen credit card numbers and could control up to 500,000 infected computers.
Tverdokhlebov executed a number of schemes to “cash out” or monetize the financial information he stole, such as by selling it to other cybercriminals or by providing it to accomplices who would use it to make fraudulent purchases or fraudulent withdrawals from victims’ accounts. In addition, the defendant recruited Russian students visiting the United States on J-1 visas to open bank accounts in their names, receive money from victim accounts, and then transfer the money to Tverdokhlebov or his co-conspirators.
The plea agreement stipulates to estimated losses between $9.5 and $25 million. Upon Tverdokhlebov’s arrest, the government seized $272,000 in hundred dollar bills distributed among several safe deposit boxes in Los Angeles and Las Vegas. The government was able to seize additional assets from the defendant, including Bitcoin, currently valued at approximately $5 million.
As part of the sentencing, the court also ordered the defendant to serve three years of supervised release following his prison term, with conditions of release that will include monitoring of the defendant’s computer use.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Brian J. Ebert, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after sentencing by U.S. District Judge T.S. Ellis III. Assistant U.S. Attorneys Kellen S. Dwyer and Laura Fong prosecuted the case.
The New York County District Attorney’s Office, along with the U.S. Secret Service’s Los Angeles Field Office, provided significant assistance with the investigation.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-9.
Repeat Sex Offender Sentenced to More Than 17 Years in PrisonRead the Press Release
Steve Butler, Acting United States Attorney for the Southern District of Alabama, announced that Sam Wesley Conaway, 49, of Citronelle, was sentenced today to 210 months in prison for possession and transportation of child pornography. Conaway entered a guilty plea to both charges in March and was sentenced by Senior United States District Judge Callie V.S. Granade.
Documents filed with Conaway’s guilty plea show that he uploaded 58 videos to a remote internet file storage service, and that the videos contained child pornography involving victims that appeared to be from 2 to 14 years of age. Separately, law enforcement agents received information that Conaway was engaged in sexually explicit online chats with girls as young as 14. Conaway was a registered sex offender as a result of a 1998 conviction for child molestation in Georgia. Following a search warrant at his home, agents recovered several hundred videos and images of child pornography.
Following his release from prison, Conaway will be supervised by the United States Probation Office for the rest of his life. Conaway will also be required to maintain his registration as a sex offender.
The case was investigated by the Alabama Law Enforcement Agency (ALEA) and the Federal Bureau of Investigation (FBI), and was prosecuted by Assistant United States Attorney Sean P. Costello. It 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. Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Registered Sex Offender Sentenced to 12 Years in Prison for Attempting to have Sex with a ChildRead the Press Release
A 50-year old Seattle man with previous convictions for sex offenses against children, was sentenced today in U.S. District Court in Seattle to 12 years in prison and 20 years of supervised release for attempted enticement of a minor, announced U.S. Attorney Annette L. Hayes. TODD DARREN RICKDAL, was arrested following a Seattle Police Department sting operation in November 2016. RICKDAL communicated by email, text and telephone believing he was making arrangements to have sex with the undercover’s 5-year-old daughter. At sentencing U.S. District Judge James L. Robart said he was “substantially concerned about protecting the public.”
“A federal conviction – with its significant penalties and intensive supervision after release – is the right result in a case like this,” said U.S. Attorney Annette L. Hayes. “I commend law enforcement for working proactively to identify those who try to use the internet to commit their crimes. There is no question that their work prevented the exploitation of real children and the impact such horrific crimes have over a lifetime.”
According to records filed in the case, the Seattle Police Department initiated an investigation into people using the website Craigslist to seek sex with children. The undercover officer posted an ad in the ‘Casual Encounters’ section referencing “family fun.” RICKDAL responded to the ad and over the next few days made statements regarding his intent to meet the undercover to have sex with the undercover’s fictitious 5-year-old child. RICKDAL was arrested when he arrived at the hotel and had products in his possession that he had described to the undercover as aids to assist in the planned sexual abuse.
RICKDAL is a registered sex offender and at the time of the current offense was still on community corrections supervision for a 2012 conviction for Attempted Child Molestation in the Second Degree and Possession of Depictions of Minors Engaged in Sexually Explicit Conduct. RICKDAL served 34 months in prison for that conviction.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse that was 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 Seattle Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI). The case was prosecuted by Special Assistant United States Attorney Cecelia Gregson. Ms. Gregson is a Senior Deputy King County Prosecutor specially designated to prosecute child exploitation crimes in federal court.
Raymore Man Sentenced to 19 Years for Armed Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Raymore, Mo., man was sentenced in federal court today for the armed robbery of United Missouri Bank in Raymore.
Charles O. Jones, 53, of Raymore, was sentenced by U.S. District Judge Howard F. Sachs to 19 years and seven months in federal prison without parole.
Jones, who pleaded guilty on Feb. 10, 2017, admitted that he stole $1,330 at gunpoint from United Missouri Bank, 315 S. Dean, Raymore, on April 4, 2016. Jones brandished an air soft pistol, which the tellers believed was a handgun. Jones demanded money and threatened to shoot if they didn’t comply with his demands. A teller gave Jones money from her drawer and he fled from the bank.
The air soft gun was recovered from a trash can located in a nearby Lowe’s Home Improvement store. Jones was arrested the next day.
This case was prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the FBI and the Raymore, Mo., Police Department.
Providence Resident Sentenced for Possessing and Viewing Child PornographyRead the Press Release
PROVIDENCE – David A. Skally, 58, of Providence, was sentenced today to 30 months in federal prison for possessing and accessing child pornography with the intent to view, announced Acting United States Attorney Stephen G. Dambruch; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England; and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Skally to serve 5 years supervised release upon completion of his prison term and to pay a mandatory $5,000 special assessment pursuant to the Justice for Victims of Trafficking Act of 2015.
The U.S. Sentencing Guidelines in this matter provide for a sentence of 51-63 months of imprisonment. The government recommended the court impose a sentence of 46 months of incarceration.
The Justice for Victims of Trafficking Act of 2015 requires non-indigent defendants convicted of child exploitation, child pornography, human trafficking, and human smuggling offenses to pay a $5,000 fine in addition to any other penalties imposed. The money from these fines are deposited into a “Domestic Trafficking Victims’ Fund” to supplement programs that provide victims’ services to domestic human trafficking victims, and provide law enforcement with resources to investigate and combat modern-day slavery.
David Skally pleaded guilty on December 20, 2016, to possessing and accessing child pornography with the intent to view. He was arrested on July 11, 2016.
According to information presented to the court, in September 2015, the HSI Child Exploitation Unit became involved in a child pornography investigation into multiple individuals, believed to be residing across the United States as well as abroad, and who are members of an Internet-based bulletin board. Users of the bulletin board were provided a link to a file sharing site from which child pornography could be accessed, viewed and downloaded.
A court authorized search of the defendant’s computers at his residence in June 2016 by members of HSI and the Rhode Island State Police Internet Crimes Against Children Task Force resulted in the discovery of child pornography. A further forensic examination of the computers resulted in the discovery of approximately 284 videos and 418 images of child pornography.
The case was prosecuted by Assistant U.S. Attorney John P. McAdams.
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Prior Felon from Roswell Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Gilbert Dutchover, 58, of Roswell, N.M., pled guilty today in federal court in Las Cruces, N.M., to violating the federal firearms laws. The plea agreement recommends an 18-month prison sentence followed by a term of supervised release to be determined by the court.
Dutchover was arrested on May 5, 2017, on an indictment charging him with being a felon in possession of a firearm and ammunition on Aug. 18, 2014, in Chaves County, N.M. According to the indictment, Dutchover was previously convicted of unlawful carrying of a firearm into a licensed liquor establishment, being a felon in possession of a firearm or destructive device, receiving stolen property and cocaine trafficking.
During today’s proceedings, Dutchover pled guilty to the indictment and admitted that on Aug. 18, 2014, law enforcement officers located a pistol and ammunition in his garage during the execution of a search warrant on his residence. Dutchover further admitted that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon. A sentencing hearing has yet to be scheduled.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Chaves County Sheriff’s Office and the Pecos Valley Drug Task Force. Assistant U.S. Attorneys Luis A. Martinez and Selesia L. Winston of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Postal Employee Sentenced for Stealing MailRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Richard D’Arcy, Jr., 37, of Buffalo, NY, who pleaded guilty to theft of mail by a postal employee, was sentenced to one year probation by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated that on August 2, 2016, a U.S. Postal Service mail carrier discovered 52 pieces of mail, in delivery order, in a blue collection box on McKinley Parkway in Buffalo. It was determined that each of those pieces of mail were never delivered to Fisher Road (Route 53) in West Seneca, NY. Some of the mail was postmarked July 30, 2016, and was supposed to be delivered on August 1, 2016. The defendant delivered Route 53 on August 1, 2016. He also lived approximately a half of a mile from the blue mailbox in which the undelivered mail was discovered.
A review of the Global Positioning System (GPS) used to track the delivery of mail parcels showed that on August 1, 2016, D’Arcy drove through the portion of Route 53 on Fisher Road where the mail was supposed to be delivered. A comparison of the GPS data from the day before and the day after showed the postal carrier made many more stops and took much longer to deliver the same portion of Fisher Road.
A subsequent search of the defendant’s car uncovered multiple bundles of undelivered advertisements, placards, and First Class mail. D’Arcy opened some of the mail and took the contents, which included solicitations from various veterans groups, children's cancer foundations, and animal protection groups, which contained a $1 bill or other coin currency, seeking additional contributions from patrons.
The sentencing is the culmination of an investigation on the part of 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.
Pittsburgh Woman Pleads Guilty to Federal Drug and Gun ChargesRead the Press Release
PITTSBURGH - A former resident of Pittsburgh, Pa., pleaded guilty in federal court on Friday to charges of violating federal drug and firearm laws, Acting United States Attorney Soo C. Song announced today.
Janay Brown pleaded guilty to four counts before United States District Judge Mark Hornak.
In connection with the guilty plea, the court was advised that in July of 2016, multiple individuals began overdosing on stamp bags marked “CEO.” A local law enforcement agency arrested an individual with some of these stamp bags and alerted the DEA. That person agreed to cooperate and identified Brown as the source of the heroin and fentanyl. The DEA investigation led to a search warrant which was issued for Brown’s residence. There, federal agents located Brown, over 100 “bricks” of heroin and fentanyl, firearms, ammunition, cellphones and a large amount of cash. Brown had a prior 2009 conviction for Forgery and a prior 2011 conviction for a drug offense. Each of these offenses precluded her from lawfully possessing a firearm or ammunition under federal law.
Judge Hornak scheduled sentencing for November 9, 2017 at 1:30 p.m. The law provides for a total sentence of not less than five years and up to life in prison, a fine of up to $2,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the and the prior criminal history of the defendant.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Drug Enforcement Administration (DEA) conducted the investigation that led to the prosecution of Brown with valuable assistance from the Pennsylvania State Police and other local police departments.
Pawtucket Resident Sentenced for Possessing Stolen Firearm with Obliterated Serial NumberRead the Press Release
PROVIDENCE, R.I. – Justice Reyes, 20, of Pawtucket, was sentenced today to time served, 14 months in federal prison, for possession of a firearm with an obliterated serial number, announced Acting United States Attorney Stephen G. Dambruch and Mickey Leadingham, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
At the time of his guilty plea, Reyes admitted to the court that on April 1, 2016, he sold the firearm to an undercover ATF agent while outside of his residence. Reyes was serving a Rhode Island state court imposed sentence of home confinement at the time he sold the firearm to the agent.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Reyes to serve 3 years supervised release upon completion of his term of imprisonment. Reyes pleaded guilty on February 21, 2017.
The U.S. Sentencing Guidelines imprisonment range in this matter is 33–41 months. The government recommended the court impose a term of incarceration of 33 months.
According to information presented to the court, on April 1, 2016, an undercover ATF agent bought a .22 caliber semi-automatic rifle from Reyes for $350. Reyes specified that the serial number had been obliterated, and that he could get the undercover and the undercover’s associates additional guns with obliterated serial numbers.
According to Rhode Island state court records, Reyes was sentenced on March 17, 2016, to one year home confinement for violating a suspended sentence imposed on January 29, 2016, having pleaded nolo contendre to a charge of simple assault domestic. Reyes began serving his home confinement sentence two weeks prior to selling the firearm to the ATF agent.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
The matter was investigated by ATF and the Rhode Island AFT Task Force. Acting United States Attorney Stephen G. Dambruch thanks the Pawtucket Police Department for their assistance in the investigation of this matter.
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Overland Park Man Sentenced to 8+ Years for Distributing Child PornographyRead the Press Release
KANSAS CITY, KAN. - An Overland Park man was sentenced Monday to 97 months in federal prison for distributing child pornography on the Internet while posing as a 46-year-old woman, U.S. Attorney Tom Beall said.
Frank Joseph Kurtz, 70, Overland Park, Kan., pleaded guilty to one count of distributing child pornography. In his plea, he admitted that an investigation by the Israeli National Police first identified emails in which Kurtz used the alias “Lisayearning46” to send child pornography to another person. The FBI in Kansas tracked the emails to Kurtz, who registered with Yahoo under the name “Lisa Lewis” and used photos he found on the Internet as his profile picture.
Beall commended the FBI, the Heart of America Regional Computer Forensics Laboratory and Assistant U.S. Attorney Kim Flannigan for their work on the case.
Optometry Practice Agrees to Pay $16,343 to Settle Civil Health Care Fraud CaseRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy today announced that Brunswick Eye Care Associates, P.C. (“BECA”) has entered into a civil settlement agreement with the United States and the State of Maine in which it will pay $16,343 to resolve allegations that it submitted false claims to Medicare, TRICARE, the Department of Veterans Affairs (“VA”), and MaineCare (Maine’s Medicaid program) from May 7, 2014 through April 29, 2016. MaineCare is primarily funded by the United States, which pays about two-thirds of all claims submitted to MaineCare.
According to a civil complaint filed today, BECA billed and received reimbursement from Medicare, TRICARE, the VA, and MaineCare for services provided by BECA, and then improperly used a portion of the funds received from these programs to pay the salary and benefits of a BECA employee who previously had been excluded from Federal health care programs and the MaineCare program. Prior to joining BECA, the employee had been excluded based upon her conviction for stealing drugs while employed as a pharmacy technician. Before employing this woman, BECA failed to ask her whether she had ever been excluded from participation in any Federal health care program or MaineCare. BECA also did not check the publicly available exclusion databases maintained by the Department of Health and Human Services’ Office of Inspector General and MaineCare’s Program Integrity Unit, despite federal regulations prohibiting the employment of excluded providers.
Federal health care programs may not pay, directly or indirectly, for items or services furnished, ordered, or prescribed by excluded individuals or entities. This prohibition extends to administrative and clerical personnel, and is not limited to health care providers. By failing to abide by the requirements of the MaineCare and Federal health care programs regarding the employment of excluded individuals, BECA acted with reckless disregard of the falsity of the claims it submitted to MaineCare and Federal health care programs.
The case was investigated by the U.S. Department of Health & Human Services, Office of Inspector General, and the Attorney General’s Office of the State of Maine. The civil action is docketed United States and the State of Maine v. Brunswick Eye Care Associates, P.C., 2:17-cv-257-DBH (D. Me.).
Ocala Doctor Pleads Guilty to $1.5 Million Fraud Scheme Involving Clipping of ToenailsRead the Press Release
Jacksonville, FL – Acting United States Attorney W. Stephen Muldrow announces that Michael Rotstein (Ocala, 55) today pleaded guilty to one count of healthcare fraud. He faces a maximum penalty of 10 years’ imprisonment and must pay mandatory restitution of approximately $1.5 million. A sentencing date has not yet been set.
According to the
plea agreement , Rotstein, a podiatrist, billed the Medicare and TRICARE healthcare programs. He was one of the highest billers in the country for a medical service requiring the “removal of skin and muscle.” He claimed that nearly half of his procedures were for the removal of skin and muscle, placing him in the top one-percent of billers nationwide for this procedure. In reality, Rotstein did not actually perform these procedures. Rather, the majority of the times that he billed for these procedures, he was actually performing routine foot care, including the clipping of toenails, which is not a reimbursable service under Medicare or TRICARE. Since the services performed were not reimbursable, Rotstein devised a scheme to submit claims to the Medicare and TRICARE programs that included using a false diagnosis code and false billing code. Further, he included notes in his patients’ medical files to make it appear that he was actually performing these services. As a result of the scheme, Rotstein received $1,504,952.67 in healthcare reimbursements to which he was not entitled.This case was investigated by the Department of Health and Human Services, Office of Inspector General. It was prosecuted by Assistant United States Attorney Jason Mehta.
Oakland Woman Sentenced to 8 Years in Prison for Transporting 14-Year-Old Across State Lines to Engage in ProstitutionRead the Press Release
OAKLAND – Carrie Myles was sentenced today to 96 months in prison for transporting a 14-year-old girl from Oakland, Calif., to Las Vegas, Nev., for the purpose of making the girl available to engage in commercial sex acts, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Haywood S. Gilliam, U.S. District Judge.
Myles, 38, of Oakland, pleaded guilty on February 27, 2017, to driving a 14-year-old girl across state lines to engage in commercial sex acts. According to her plea agreement, Myles admitted that for nearly a month she profited from arranging for the minor to engage in commercial sex acts with adults. Myles admitted she photographed the girl while she was partially dressed in provocative clothing and also admitted posting or directing the girl to post those photos in advertisements on an online classified website service. Myles acknowledged she misrepresented the girl’s age in the advertisements and admitted she instructed the girl that, if asked, the girl should tell customers she was an adult. Myles also provided the girl with clothing to use in photographs and while performing sex acts and controlled the phone number she provided the minor. Myles admitted she used the girl’s purported number to communicate with potential customers who may have thought they were communicating with the girl they saw in photographs in the advertisements. Myles also admitted that for a month, on approximately a daily basis, she urged the girl to engage in commercial sex acts. This continued until Myles was arrested in September of 2015 after she drove the girl to an Oakland hotel to meet with someone who had solicited prostitution.
On September 29, 2016, a federal grand jury indicted Myles, charging her with one count of transportation for illegal sexual activity, in violation of 18 U.S.C. § 2421(a) and one count of transportation of a minor for illegal sexual activity, in violation of 18 U.S.C. § 2423(a) and (e). Pursuant to her plea agreement, Myles pleaded guilty to the transportation for illegal sexual activity charge and received sentencing enhancements for her behavior with the minor including the following: committing the federal offense while having the minor in her custody and control, knowingly misrepresenting the girl’s age, and unduly influencing the minor to engage in commercial sex.
In addition to the prison term, Judge Gilliam also sentenced Myles to serve a five-year term of supervised release and ordered Myles to register as a sex offender.
Assistant U.S. Attorney Thomas R. Green is prosecuting the case with the assistance of Noble Hughes and Trina Khadoo. The prosecution is the result of an investigation by the FBI.
If members of the public have any information relevant to this investigation or to suspected child predators or suspicious activity, the FBI encourages them to contact HSI through the toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form at https://www.ice.gov/webform/hsi-tip-form. Both are staffed around the clock by investigators. Suspected child sexual exploitation or missing children may also be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-THE-LOST.
Nine Additional Savannah Residents Indicted with Federal Gun Crimes as Part of Efforts to Combat Violent CrimeRead the Press Release
SAVANNAH, GA: Last week, as part of numerous ongoing investigations being conducted by the ATF and the Savannah-Chatham Metropolitan Police Department (SCMPD), a federal grand jury sitting in Savannah charged 9 more Savannah residents with a variety of firearms offenses and drug crimes:
Eron Ventura, 24, of Savannah, charged with possession of a firearm by a convicted felon, possession with intent to distribute marijuana and possession of a firearm in furtherance of drug trafficking;
Tevin Lawton, 25, of Savannah, charged with receipt of a firearm while under indictment, possession of a sawed-off shotgun, and being a drug user in possession of firearms;
John Young, Jr., 26, of Savannah, charged with possession of a firearm by a convicted felon;
Timothy Kendall Stewart, 30, of Savannah, charged with two counts of possession of a firearm by a convicted felon;
Eric Brown, 39, of Savannah, charged with possession of a firearm by a convicted felon;
Robert Anthony Frazier, 35, of Savannah, charged with possession of firearms by a convicted felon, possession with intent to distribute methamphetamine, ecstasy, and marijuana and possession of firearms in furtherance of a drug trafficking crime;
Daryl Jackson, 40, of Savannah, charged with possession of a firearm by a convicted felon;
Dominick Jackson, 33, of Savannah, charged with possession of a firearm by a convicted felon, possession with intent to distribute ecstasy and possession of a firearm in furtherance of a drug trafficking crime; and,
Kevin Reevey, 32, of Savannah, charged with possession of a firearm by a convicted felon.
Acting U. S. Attorney James Durham said, “Earlier this year, Attorney General Jeff Sessions instructed U. S. Attorneys' Offices to identify those responsible for significant violent crime in our communities, and, if the decision is made to pursue federal charges, to utilize the substantial tools available under federal law to prosecute those offenders. We’re working closely with SCMPD and the Chatham County District Attorney’s Office on a number of fronts to address violent crime problems in Savannah. The indictments returned last week aren’t the first federal indictments and they certainly won’t be the last, as we work together to take back this great city from those spreading violence and fear.”
All federal defendants charged with the unlawful possession of a firearm face a maximum sentence of 10 years in prison and a $250,000 fine. However, any defendant who has at least three prior violent felonies or serious drug offenses will face a mandatory minimum sentence of at least 15 years in prison. Additionally, defendants who possess firearms in furtherance of drug trafficking face a consecutive sentence of at least 5 years in prison. Parole has been abolished in the federal system.
Acting U. S. Attorney Durham emphasized that indictments are only accusations and are not evidence of guilt. Each defendant is entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
Assistant United States Attorneys Carlton R. Bourne, Jr., Tania D. Groover, Marcela C. Mateo, Bradford C. Patrick and Jennifer G. Solari are prosecuting the cases on behalf of the United States.
New York Man Admits Robbing Bergen County, New Jersey, BankRead the Press Release
NEWARK, N.J. – A New York man today admitted robbing a bank in Fort Lee, New Jersey, in January 2017, Acting U.S. Attorney William E. Fitzpatrick announced.
Issac Nesbit, 30, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count of bank robbery.
According to the documents filed in this case and statements made in court, Nesbit admitted that Jan. 20, 2017, he robbed a Bank of New Jersey in Fort Lee. Nesbit admitted that he handed a teller a hand-written note demanding cash and threatening to shoot everyone in the bank if the teller did not comply.
The bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Oct. 17, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Bergen County Prosecutor’s Office, under the direction of Prosecutor Gurbir S. Grewal; and the Fort Lee Police Department, under the direction of Chief Keith M. Bendul, with the investigation leading to the conviction.
The government is represented by Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Patrick McMahon Esq., Assistant Federal Public Defender, Newark
Navajo Man from Shiprock Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Aaron Curley, 55, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pled guilty today in federal court in Albuquerque, N.M., to an assault charge under a plea agreement with the U.S. Attorney’s Office.
Curley was arrested in Nov. 2016, on a criminal complaint charging him with assaulting a Navajo woman by stabbing her in the leg and sternum area with a knife. Curley was indicted on Dec. 20, 2016, and charged with assault with a dangerous weapon, a knife, with intent to do bodily injury and assault resulting in serious bodily injury. According to the indictment, the offenses took place on Nov. 20, 2016, on the Navajo Indian Reservation in San Juan County, N.M.
During today’s proceedings, Curley pled guilty to Count 1 of the indictment charging him with assault with a dangerous weapon. In entering the guilty plea, Curley admitted that on Nov. 20, 2016, he assaulted the victim by stabbing her in the left leg and caused the victim to sustain cuts to her left arm and hand as she was defending herself.
At sentencing, Curley faces a maximum penalty of ten years in federal prison. Curley remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Kyle T. Nayback is prosecuting this case as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Maryland Real Estate Flipper Pleads Guilty to Obstructing IRS and Failing to File Tax ReturnsRead the Press Release
A Maryland man who bought, improved and sold residential real estate pleaded guilty today in U.S. District Court for the District of Maryland to one count of obstructing the lawful functions of the Internal Revenue Service (IRS) and four counts of failing to file personal and corporate income tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Stephen M. Schenning for the District of Maryland.
According to the indictment and information presented to the court, David J. Simard, 58, purchased and sold real estate in Maryland and elsewhere since the mid-1980s. In January 2008, Simard received notice that the IRS, in connection with an audit of his personal income taxes, had requested documents and information from third parties regarding his real estate transactions. Less than one month after receiving this notice, Simard created Pegasus Home Corporation and began buying and selling properties in its name instead of his own. From 2009 through 2010, Simard purchased and sold 96 properties in the name of Pegasus. Simard attempted to conceal his ownership and control of Pegasus by falsely representing that his relative was the owner. Simard had the same relative apply with the IRS for an employer identification number for Pegasus and used this when buying and selling properties. This caused the IRS to receive information falsely indicating that the relative owned Pegasus. Simard also instructed the relative to open a bank account for Pegasus. Simard did not file personal tax returns for tax years 2009 and 2010, despite earning income requiring him to file. He also did not file corporate tax returns for Pegasus for the same years despite having an obligation to do so.
Sentencing is scheduled for Oct. 12 before U.S. District Judge Roger W. Titus. Simard faces a statutory maximum penalty of three years in prison for obstructing the IRS and one year in prison for each count of failure to file tax returns. He also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Schenning thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Michael C. Vasiliadis and Kenneth C. Vert of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Manhattan U.S. Attorney Announces Arrest of Bronx Man in Connection with the Murder of Jessica WhiteRead the Press Release
Joon H. Kim, Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced today the arrest of STIVEN SIRI-REYNOSO in connection with the June 11, 2016, murder of Jessica White in the vicinity of the John Adams Houses in the Bronx, New York. The defendant was arrested this morning and is expected to be presented later today in Manhattan federal court before United States Magistrate Judge Andrew J. Peck. The case is assigned to Chief United States District Judge Colleen McMahon.
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SIRI-REYNOSO, 24, of the Bronx, is charged in an Indictment with one count of murder through the use of a firearm in connection with a crime of violence, and aiding and abetting the same. He faces a maximum sentence of death or life in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the FBI, the NYPD, and the New York/New Jersey Regional Fugitive Task Force.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorney Drew Johnson-Skinner is in charge of the prosecution.
The charge contained in the Indictment is merely an accusation and the defendant is presumed innocent unless and until proven guilty.
Man Pleads Guilty to Conspiring to Provide Material Support to Terrorists and Soliciting the Murder of a Federal JudgeRead the Press Release
Yahya Farooq Mohammad, 39, pleaded guilty today to one count of conspiracy to provide and conceal material support or resources to terrorists and one count of solicitation to commit a crime of violence.
Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney David A. Sierleja for the Northern District of Ohio, Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Field Division, and U.S. Marshal Peter J. Elliott of the Northern District of Ohio made the announcement. The U.S. Attorney’s Office of the Eastern District of Michigan supervised the prosecution of the solicitation to commit a crime of violence charge.
“The defendant conspired to provide and did provide material support to Anwar Al-Awlaki in response to his calls to support violent jihad,” said Acting Assistant Attorney General Boente. “The National Security Division’s highest priority is counterterrorism and we will continue to pursue justice against those who seek to provide material support to terrorists.”
“This defendant conspired to attack our service members abroad as well as a judge in Toledo,” Acting U.S. Attorney Sierleja said. “He threatened the hallmarks of our democracy. He is a dangerous criminal who deserves a long prison sentence.”
“Conspiring to have a judge killed is not the way to avoid being prosecuted – now Mohammad will be held accountable for additional serious federal charges,” said Special Agent in Charge Anthony. “The FBI will continue to work with our partners to ensure the safety of those that uphold the rule of law. “
“Protecting the federal judiciary is our highest priority,” said U.S. Marshal Elliott. “This is an example where we were able to work with our law enforcement partners to protect a judge and bring charges against a dangerous individual.”
Mohammad is an Indian citizen who was an engineering student at Ohio State University between 2002 and 2004. He married a U.S. citizen in 2008. He and three other defendants – his brother, Ibrahim Mohammad, Asif Ahmed Salim, and Sultane Room Salim – were indicted by a federal grand jury in September 2015. The case against the remaining three defendants is pending. They have pleaded not guilty.
Mohammad admitted to conspiring with his co-defendants to travel to Yemen to provide thousands of dollars, equipment, and other assistance to Anwar Al-Awlaki, in an effort to support violent jihad against U.S. military personnel in Iraq, Afghanistan and throughout the world. Al-Awlaki was later designated as a global terrorist in 2010 and identified as a “key leader” of al-Qa’ida in the Arabian Peninsula, according to court documents.
On July 22, 2009, Mohammad travelled with two associates to Yemen to meet Awlaki and deliver the $22,000 that they had raised. Although they were unable to meet Awlaki in person, Mohammad and his associates did ensure that Awlaki received the money through a courier.
In addition to pleading guilty to conspiring to provide and conceal material support to terrorists, Mohammad also admitted to soliciting an undercover FBI employee (UCE), posing as a “hitman,” to kidnap and murder U.S. District Judge Jack Zouhary. In or about April 2016 – while the terrorism case was pending and assigned to Judge Zouhary – Mohammad told another inmate in the Lucas County Corrections Center in Toledo, Ohio that he wanted Zouhary kidnapped and murdered and that he was willing to pay $15,000 to have this carried out. The inmate provided Mohammad with the contact information for the UCE and stated that the UCE would need a $1,000 down payment before the murder could occur. The inmate also provided Mohammad with an agreed upon code to use when discussing the planned murder over the jail telephone.
On or about April 26, 2016, Mohammad called the UCE from the Lucas County Corrections Center. Using the agreed-upon code, Mohammad told the UCE he wanted to have Judge Zouhary killed. Mohammad agreed to provide the $1,000 down payment. When asked when he wanted the murder committed, Mohammad stated, “The sooner would be good, you know.” Over the ensuing days, Mohammad arranged to have a family member provide the $1,000 in cash to the UCE. On May 5, 2016, that family member met with the UCE and provided the UCE with $1,000 in cash. Mohammad later informed the inmate that the rest of the money for the murder was coming, according to court documents.
Under the terms of his plea agreement, Mohammad is expected to be sentenced to 27 ½ years in federal prison. Mohammad will be deported from the U.S. upon completion of his sentence, under the terms of his plea agreement.
The case is being prosecuted by Assistant U.S. Attorneys Michael Freeman, Matthew Shepherd and Christos N. Georgalis of the Northern District of Ohio, and Trial Attorneys Gregory Gonzalez and David Smith of the National Security Division’s Counterterrorism Section, following an investigation by the FBI.
Madera County Arrest Leads to 2-Year Prison Sentence for Alien in Possession of FirearmRead the Press Release
FRESNO, Calif. — Antonio Soria-Arellano (Soria), 44, a citizen of Mexico, was sentenced today to two years in prison for being an alien in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on February 23, 2017, Soria, an alien, was in possession of a Remington 870 Express, 12-gauge shotgun. According to the criminal complaint, law enforcement officers found Soria at an indoor marijuana cultivation operation in a residence in Madera County. Soria was the sole occupant of the residence and was in possession of the loaded shotgun and ammunition. On April 17, 2017, Soria pleaded guilty to being an alien in possession of a firearm.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Madera County Sheriff’s Office, and the Merced County District Attorney’s Office. Assistant U.S. Attorney Karen A. Escobar prosecuted the case.
Littlefield Man Pleads Guilty to Role in Methamphetamine Distribution ConspiracyRead the Press Release
LUBBOCK, Texas — Arnoldo Mendoza Lepez, 44, of Littlefield, Texas, appeared before U.S. Magistrate Judge D. Gordon Bryant, Jr. this afternoon and pleaded guilty to his role in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Lepez pleaded guilty to one count of possession with intent to distribute 500 grams or more of methamphetamine. He faces not less than 10 years and up to life in federal prison and a $10,000,000 fine. A sentencing date has not been set.
Co-defendants Joseph Raymond Jaramillo, Jr., 30, and Zahir Rivera-Pineda, 27, pleaded guilty earlier this month to their role in the conspiracy and are awaiting sentencing.
According to plea documents filed in the case, on May 5, 2017, New Mexico State Police stopped a vehicle being driven by Rivera-Pineda that was found to contain approximately 20 pounds of suspected methamphetamine near Albuquerque, New Mexico. Agents with Homeland Security Investigations (HSI) were able to determine that the methamphetamine was destined for a specific residence located in Littlefield, Texas. HSI agents coordinated with agents from the Lubbock County, Texas Sheriff’s Office (LCSO) and Drug Enforcement Administration (DEA) to complete the delivery of the methamphetamine to the residence in an attempt to identify the individuals receiving the narcotics.
Shortly after the methamphetamine was delivered to the residence in Littlefield, agents executed a search warrant. Inside the residence, agents located Jaramillo, Jr. and Lepez. Inside the room with Jaramillo and Lepez, agents located in plain view several of the bundles containing the methamphetamine that had just been delivered to the house. Inside a hidden compartment located in the closet of the same room, agents discovered the remainder of the bundles containing the recently delivered methamphetamine. Also in the room were two firearms. Agents also located several other firearms throughout the residence.
The methamphetamine located in the residence weighed a total of 8,833 grams.
The U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Drug Enforcement Administration, Lubbock County Sheriff’s Office, and New Mexico State Police are conducting the investigation. Assistant U.S. Attorney Sean Long is in charge of the prosecution.
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Lewisville Woman Pleads Guilty to the Operation of a Brothel in DallasRead the Press Release
DALLAS — Connie Su Moser, a/k/a “Vivian” and “Song Ye Hong,” 64, of Lewisville, Texas, appeared this afternoon before U.S. District Judge Jane J. Boyle and pleaded guilty to charges related to the operation of the Doll House massage parlor in Dallas, announced U.S. Attorney John Parker of the Northern District of Texas.
Moser pleaded guilty to one count of use of a facility of interstate commerce in aid of a racketeering enterprise and one count of misprision of a felony. She faces a maximum penalty of five years imprisonment and a $250,000 fine. Sentencing is scheduled for October 26, 2017.
Co-conspirator Kum Shugars, 68, pleaded guilty in June 2017 to one count of use of a facility of interstate commerce in aid of a racketeering enterprise and one count of misprision of a felony. Sentencing for Shugars is scheduled for October 12, 2017.
The other defendant charged in the case, Allen Nash, a/k/a “A-1,” 31, of Dallas, is charged with one count each of sex trafficking of children; transportation of a minor to engage in commercial sex acts; felon in possession of ammunition; sex trafficking through force, fraud or coercion and conspiracy to commit sex trafficking. Nash is scheduled to begin trial on July 17, 2017.
According to plea documents in Moser’s case, between June 1, 2012 and March 1, 2015, Moser engaged in a prostitution enterprise at the Doll House in Dallas, Texas. Moser purchased the Doll House from its previous owner in 2012. Moser would frequently visit the Doll House to pick up money and to check on her managers, including Shugars, as well as her employees. Moser was involved in hiring of the women that worked at the Doll House, and she knew that commercial sex acts were occurring regularly there. Various employees would post ads on the commercial sex website Backpage.com to locate customers for the Doll House, and customers would often respond to the ads either by calling to make an appointment or by walking into the spa. Clients would then arrange to come to the Doll House under the guise of receiving a '”body rub,” but in reality would pay for and receive commercial sex. The clients would pay an initial fee to the spa manager, and then the client would then be taken into a room by one of the female employees, where the commercial sex acts would occur. The employee would receive a “tip” once the commercial sex act had been performed, and the employee would pay a portion of this money back to the Doll House each day.
The Texas Department of Public Safety, U.S. Immigration and Customs Enforcement Homeland Security Investigations, Dallas Police Department, U.S. Postal Inspection Service and the Dallas County Sheriff’s Office – all members of the North Texas Trafficking Taskforce – are investigating the case. Assistant U.S. Attorney Cara Foos Pierce is in charge of the prosecution.
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Leader of Multi-State Drug Trafficking Organization to be Sentenced on WednesdayRead the Press Release
Columbia, South Carolina --- United States Attorney Beth Drake announced today that Eric Scott, age 40, will be sentenced on Wednesday, July 12th, at 10:00 A.M. The sentencing hearing will take place in the Clement F. Haynsworth Federal Building, 300 East Washington Street, Greenville, South Carolina, before the Honorable Timothy M. Cain, U.S. District Judge.
Assistant U.S. Attorney Andy Moorman, Deputy Narcotics Chief for the Narcotics Unit, was the lead prosecutor.
The Drug Enforcement Administration, the Internal Revenue Service Criminal Investigation Division, the Anderson County Sheriff’s Office, the Anderson Police Department, the Greenville County Sheriff’s Office, the Greenville Department of Public Safety, the Cherokee County Sheriff’s Office, the South Carolina Highway Patrol, the Richland County Sheriff’s Office, the South Carolina Law Enforcement Division, the Franklin County (GA) Sheriff’s Office, and the Douglas County (GA) Sheriff’s Office investigated the case.
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Lake Wales Man Indicted on Tax Fraud ChargesRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of an indictment charging Tedderick Fields charging him with three counts of filing false claims with the Internal Revenue Service, one count of wire fraud, and one count of aggravated identity theft in connection with income tax fraud. If convicted, he faces a maximum penalty of 20 years in federal prison for the wire fraud charge, with an additional two-year consecutive sentence for the aggravated identity theft charge. He also faces up to five years’ imprisonment on each of the false claim charges.
According to the indictment, Fields filed false tax returns in his name from 2011 through 2013, claiming a $400,000 refund in 2012. He also filed a false and unauthorized tax return claiming a fraudulent refund of $6,546 in the name of another individual and unlawfully used that individual’s personal identifying information to file a false tax return in his name.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Internal Revenue Service – Criminal Investigation. The St. Lucie County Sheriff’s Office assisted with the arrest. It will be prosecuted by Assistant United States Attorney Kelley Howard-Allen.
Lafayette Woman Sentenced in Opioid Pill Mill CaseRead the Press Release
DALLAS — Carolina Giselle Berrio, a/k/a “Carolina Slocum Berrio,” “Karrie,” 37, of Lafayette, Louisiana, was sentenced last week for her involvement in a “pill mill” operation, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Berrio was sentenced before U.S. District Judge Sidney A. Fitzwater to 78 months in federal prison. Berrio pleaded guilty in March 2017 to one count of conspiracy to distribute a controlled substance.
Twenty-four individuals were indicted by a federal grand jury in Dallas in February 2015 on offenses related to their participation in the prescription drug distribution conspiracy. That indictment alleged that from at least January 2013 through July 2014, the defendants participated in a scheme to illicitly obtain prescriptions for pain medications, such as oxycodone and hydrocodone, and then distribute those controlled substances for profit. As part of the conspiracy, individuals, often homeless or of limited means, were recruited and paid to pose as patients at medical clinics, including the McAllen Medical Clinic, to obtain prescriptions to fill those prescriptions at designated pharmacies.
Superseding indictments were returned in December 2015 and in January 2016, and a total of 27 individuals have now been convicted.
According to plea documents in Berrio’s case, on December 18, 2013, Berrio negotiated to purchase a quantity of oxycodone 30mg pills from co-conspirator Cornelius Robinson, her supplier. Robinson asked for a higher price to deliver the oxycodone to Berrio in Lafayette, Louisiana, and a lower price if Berrio picks up the pills in Houston. Robinson agreed to supply Berrio with oxycodone 30mg at $18.50 per pill, and Berrio agreed to pick up the pills in Houston, Texas. Berrio sought 300 oxycodone 30mg pills with the intent to distribute them at a later time. In addition, Berrio admits to purchasing additional quantities of oxycodone 30 mg pills from Robinson in both March and May of 2014 that she intended to distribute at a later time.
This Organized Crime Drug Enforcement Task Force (OCDETF) investigation is being conducted by the Drug Enforcement Administration, with assistance from the Internal Revenue Service Criminal Investigation, the Texas Department of Public Safety, the Louisiana State Police, the Grand Prairie Police Department, the Dallas Police Department, the Houston Police Department, the Arlington Police Department, the Greenville Police Department, the Parker County Sheriff’s Office, the U.S. Marshal’s Service, the U.S. Postal Inspection Service, and the Diplomatic Security Service.
Assistant U.S. Attorney Mary Walters is in charge of the prosecution.
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Justice Department Settles Sexual Harassment Lawsuit Against Morgantown, West Virginia, LandlordsRead the Press Release
The Justice Department today announced a settlement with the owners and former managers of more than 70 residential rental properties in the Morgantown, West Virginia area to resolve allegations that Gary Walden, while serving as the manager of these properties, sexually harassed female tenants and prospective tenants, in violation of the Fair Housing Act. Under the settlement, which was approved today by the U.S. District Court for the Northern District of West Virginia, the defendants have agreed to pay a total of $600,000 in monetary damages and civil penalties, and Walden intends to transfer his ownership of these properties and to relinquish his role in managing them.
“It is unacceptable that a woman should have to endure sexual harassment by her landlord in her own home,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “This settlement sends a strong message that the Civil Rights Division will aggressively pursue those who engage in this egregious conduct.”
“This type of conduct can never be tolerated in the Northern District of West Virginia or elsewhere,” said Acting United States Attorney Betsy Steinfeld Jividen of the Northern District of West Virginia. “And while the monetary settlement will not erase the unthinkable violations outlined in this case, it will put all on notice that those who choose to violate anyone’s civil rights will face consequences.”
The settlement requires the defendants to pay $500,000 to persons harmed by the discriminatory conduct and $100,000 to the United States in civil penalties. Walden will be enjoined from engaging in any property management, rental management, or maintenance responsibilities at the rental properties, and from entering the premises or having any contact with current or former tenants of the rental properties, including any individuals determined to be aggrieved persons.
Individuals who believe they were subjected to sexual harassment by Walden should contact the Justice Department (“the department”) at 1-800-896-7743, mailbox 97, or by e-mail at [email protected].
The lawsuit arose when four female tenants filed complaints about Walden with the Department of Housing and Urban Development (“HUD”), which referred the complaints to the department. After conducting an investigation, the department filed this lawsuit in March 2016, alleging that Walden sexually harassed multiple female residents and prospective residents from at least July 2006 through July 2015. According to the department’s complaint, Walden engaged in unwanted and unwelcome sex acts with female tenants, including touching and groping their breasts and genitals; conditioned tangible housing benefits to female tenants in exchange for performance of sex acts; made unwanted and unwelcome sexual comments and verbal sexual advances; entered the homes of female tenants without permission or notice to sexually harass them; and took or threatened to take adverse action against female tenants when they refused or objected to his sexual advances.
The department’s lawsuit names Walden, the estate of his late wife, Tina Walden, and business entities associated with the Waldens’ property ownership and management business, including Walden Homes, LLC, d/b/a Walden Rentals, and 973 Chestnut Ridge Road, Inc. In April 2015, Gary Walden pled guilty to sexual abuse and other charges in the Circuit Court of Monongalia County, West Virginia, and was incarcerated for those offenses from July 2015 to March 2017 in a state prison. In 2006, the West Virginia Attorney General’s Office filed a housing discrimination lawsuit in state court against Walden alleging sexual harassment, which was settled in 2008.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Individuals who believe that they may have been victims of housing discrimination elsewhere should call the department at 1-800-896-7743, or send an e-mail to [email protected], or contact HUD at 1-800-669-9777.
Huntington woman pleads guilty to federal heroin chargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman who was caught selling heroin in January of this year pleaded guilty today to a federal drug charge, announced United States Attorney Carol Casto. Judy Kay Smith, 58, entered her guilty plea to distribution of heroin.
On January 5, 2017, deputies with the Cabell County Sheriff’s Department utilized a confidential informant to make a controlled purchase of heroin from Smith. Smith agreed to meet the informant in a parking lot at 4341 U.S. Route 60 in Huntington to complete the transaction. After the informant and Smith arrived at that location, the informant entered Smith’s vehicle where she sold the informant approximately 10 grams of heroin in exchange for $1,200 cash. Smith also admitted that she distributed 20 grams of heroin to the informant on January 9, 2017.
On January 23, 2017, Smith agreed to distribute 20 grams of heroin to an undercover agent with the Huntington FBI Drug Task Force. Prior to the transaction, a trooper with the West Virginia State Police conducted a traffic stop of Smith’s vehicle. Smith was arrested and found with approximately 22 grams of heroin. Law enforcement also executed a search warrant at Smith’s residence and seized additional heroin and two firearms. As part of her plea agreement, Smith agreed to forfeit a vehicle that was used to facilitate the distribution of heroin.
Smith faces up to 20 years in federal prison when she is sentenced on August 10, 2017.
The Huntington FBI Drug Task Force, the Cabell County Sheriff’s Department, and the West Virginia State Police conducted the investigation. Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
This case is being brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Honduran National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON – Wilson Guerrero-Lagos, 34, a Honduran national residing in Worcester, pleaded guilty and was sentenced today by U.S. District Court Judge Timothy S. Hillman to time served and two years of supervised release. Guerrero-Lagos will be subject to deportation.
On Jan. 26, 2017, Guerrero-Lagos was encountered by law enforcement in Worcester and determined to be unlawfully present in the United States. Guerrero-Lagos was previously deported on Nov. 8, 2007.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement. Assistant U.S. Attorney Nicholas Soivilien of Weinreb’s Major Crimes Unit prosecuted the case.
Heroin Dealer Who Injured Police Officer Sentenced to PrisonRead the Press Release
A man who injured a police officer as that officer was arresting him for heroin possession was sentenced on July 7, 2017, to 20 months in federal prison.
Albert McReynolds, age 28, from Cedar Rapids, Iowa, received the prison term after an April 12, 2017, guilty plea to possession of heroin with intent to distribute.
At the guilty plea, McReynolds admitted he intended to sell the heroin that was in his possession. Information presented at the sentencing indicated that McReynolds also told officers that he would trade some of the heroin to women for sex. When police found McReynolds in possession of a large quantity of heroin, McReynolds resisted arrest and fought with officers. One police officer received a concussion during the attempt to arrest McReynolds.
McReynolds was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. McReynolds was sentenced to 20 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
McReynolds is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Justin Lightfoot and investigated by the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-00009.
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Hancock County man convicted of drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – A Weirton, West Virginia, man was convicted today of distribution of a controlled substance, Acting United States Attorney Betsy Steinfeld Jividen announced.
John Anthony Lamantia, age 60, pled guilty to one count of “Distribution of Controlled Substances Outside the Course of Professional Practice.” Lamantia admitted to distributing alprazolam in Brooke County in April 2016.
Lamantia faces up to five years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah W. Montoro prosecuted the case on behalf of the government. The Hancock-Brooke-Weirton Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.Georgia Man Transported Stolen Vehicle from Pennsylvania to West VirginiaRead the Press Release
PITTSBURGH - A resident of Stone Mountain, GA, pleaded guilty in federal court to a charge of interstate transportation of stolen vehicles, Acting United States Attorney Soo C. Song announced today.
Keon D. Butler, 34, of Stone Mountain, GA, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on or about July 1, 2015, Butler transported a stolen Range Rover supercharged, valued at $93,000, from the Commonwealth of Pennsylvania across state lines into the State of West Virginia.
Judge Cercone scheduled sentencing for November 6, 2017. The law provides for a total sentence of ten years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s bond.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania State Police and the Monroeville Police Department conducted the investigation that led to the prosecution of Butler.
Fritch Man Admits Transporting Approximately 2,300 Images of Child PornographyRead the Press Release
AMARILLO, Texas — Kelly Neil Black, 24, of Fritch, Texas, appeared today in federal court before U.S. District Judge Sidney A. Fitzwater and pleaded guilty to one count of transportation of child pornography, announced John Parker, U.S. Attorney for the Northern District of Texas.
Black, who has been in custody since the time of indictment in March 2017, faces a maximum of 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. Sentencing is scheduled for October 23, 2017.
According to documents filed in the case, on September 22, 2016, a search warrant was executed at Black’s residence in Fritch, Texas. Law enforcement located several items that contained child pornography. A forensic examination later revealed that the items seized by law enforcement contained approximately 2,300 images that had been previously identified as known images containing child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation, Texas Rangers, Hutchinson County Sheriff’s Office and the Potter County Attorney’s Office investigated the case. Assistant U.S. Attorney Joshua Frausto is in charge of the prosecution.
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Fresno Man Sentenced for Illegal Firearms PossessionRead the Press Release
FRESNO, Calif. — U.S. District Judge Anthony W. Ishii sentenced Randy Flowers, 51, of Fresno, to two years and nine months in prison for being a felon in possession of firearms, U.S. Attorney Phillip A. Talbert announced.
Flowers is one of seven defendants, including former Fresno deputy police chief Keith Foster, charged in a multi-count indictment returned on April 9, 2015. Flowers entered a guilty plea on April 4, 2017, to Count 10 of the indictment, charging him with being a felon in possession of a firearm. Five of Flowers’ co-defendants entered guilty pleas and have either been sentenced or are awaiting sentencing, Keith Foster proceeded to trial, and on May 23, 2017, a jury found him guilty of conspiracy to distribute and possess with intent to distribute heroin and conspiracy to distribute and possess with intent to distribute marijuana. He is scheduled to be sentenced on October 10, 2017.
According to court documents, Flowers was arrested on March 26, 2015, after a brief meeting at his home with Keith Foster. Flowers was found to be in possession of a .357-caliber Smith & Wesson revolver, a .45-caliber pistol, and a Remington .30-06 caliber rifle. Having previously been convicted of two felonies, Flowers was prohibited from possessing firearms.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation. Assistant U.S. Attorneys Melanie L. Alsworth and Dawrence W. Rice Jr. are prosecuting the case.
Five co-defendants have pleaded guilty to various offenses related to the drug trafficking conspiracy. Denny Foster is scheduled to be sentenced on August 14, 2017. Ricky Reynolds is scheduled to be sentenced on September 11, 2017. On October 11, 2016, Rafael Guzman, 43, of Fresno was sentenced to three years and four months in prison. Jennifer Donabedian, 37, of Fresno, pleaded guilty to concealing a felony and served 12 months’ probation. Sarah Ybarra, 39, of Fresno, pleaded guilty to conspiracy to distribute marijuana and served one year in prison.
Former Stockton Resident Pleads Guilty in Phony Tax Return SchemeRead the Press Release
FRESNO, Calif. — Darrell Lemont Morris, 46, formerly of Stockton, and currently a resident of Houston, Texas, pleaded guilty today to conspiracy to submit false claims, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between January 2010 and March 2011, Morris conspired with co-defendant Vivian Marie Williams, of Stockton, to defraud the United States by filing false and fraudulent tax returns. Williams prepared tax returns out of her home in Stockton for legitimate clients, but most of the tax returns she prepared were in the names of victims of identity theft. These individuals did not know Williams, did not authorize her to file a tax return on their behalf, and did not receive the refund. Morris allowed Williams to use his bank accounts to deposit the tax refunds and then shared in the proceeds with her. During the scheme, Morris admitted he submitted false claims to the IRS for at least $25,945.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Mark J. McKeon is prosecuting the case.
Co-defendant Williams was sentenced on October 17, 2016, to four months and 25 days in custody and ordered to pay restitution to the Internal Revenue Service.
Morris is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on January 8, 2018. Morris faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Running Store Employee Sentenced for $275,000 TheftRead the Press Release
KANSAS CITY, KAN. - An Olathe man was sentenced Monday to a year and a day in federal prison for stealing more than $275,000 in merchandise while he was working for a store that catered to runners, U.S. Attorney Tom Beall said. In addition, he was ordered to pay back the full amount.
Craig W. Sullivan, 41, Olathe, Kan., pleaded guilty to one count of wire fraud. In his plea, he admitted the crime occurred while he worked for Garry Gribble’s Running Sports, which has five locations in the Kansas City area. Sullivan oversaw merchandise arriving at the main store in Overland Park. He was responsible for distributing merchandise to the other locations.
In his plea, Sullivan admitted he stole merchandise – primarily Garmin GPS devices – and sold them to a buyer in California via Craigslist. The buyer used PayPal to send Sullivan 51 payments totaling $275,780.
The crime was discovered when Garmin wrote a letter saying Gary Gribble’s Running Stores was being terminated as a retailer. Garmin said devices sent to the store had been sold on eBay for less than the manufacturer’s suggested retail price.
Beall commended the U.S. Postal Service and Assistant U.S. Attorney Chris Oakley for their work on the case.
Former Ohio man pleads guilty to providing money to Anwar al-Awlaki and soliciting the murder of a federal judgeRead the Press Release
Yahya Farooq Mohammad, 39, pleaded guilty today to one count of conspiracy to provide and conceal material support or resources to terrorists and one count of solicitation to commit a crime of violence.
Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney David A. Sierleja for the Northern District of Ohio, Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Field Division, and U.S. Marshal Peter J. Elliott of the Northern District of Ohio made the announcement. The U.S. Attorney’s Office of the Eastern District of Michigan supervised the prosecution of the solicitation to commit a crime of violence charge.
“The defendant conspired to provide and did provide material support to Anwar Al-Awlaki in response to his calls to support violent jihad,” said Acting Assistant Attorney General Boente. “The National Security Division’s highest priority is counterterrorism and we will continue to pursue justice against those who seek to provide material support to terrorists.”
“This defendant conspired to attack our service members abroad as well as a judge in Toledo,” Acting U.S. Attorney Sierleja said. “He threatened the hallmarks of our democracy. He is a dangerous criminal who deserves a long prison sentence.”
“Conspiring to have a judge killed is not the way to avoid being prosecuted – now Mohammad will be held accountable for additional serious federal charges,” said Special Agent in Charge Anthony. “The FBI will continue to work with our partners to ensure the safety of those that uphold the rule of law. “
“Protecting the federal judiciary is our highest priority,” said U.S. Marshal Elliott. “This is an example where we were able to work with our law enforcement partners to protect a judge and bring charges against a dangerous individual.”
Mohammad is an Indian citizen who was an engineering student at Ohio State University between 2002 and 2004. He married a U.S. citizen in 2008. He and three other defendants – his brother, Ibrahim Mohammad, Asif Ahmed Salim, and Sultane Room Salim – were indicted by a federal grand jury in September 2015. The case against the remaining three defendants is pending. They have pleaded not guilty.
Mohammad admitted to conspiring with his co-defendants to travel to Yemen to provide thousands of dollars, equipment, and other assistance to Anwar Al-Awlaki, in an effort to support violent jihad against U.S. military personnel in Iraq, Afghanistan and throughout the world. Al-Awlaki was later designated as a global terrorist in 2010 and identified as a “key leader” of al-Qa’ida in the Arabian Peninsula, according to court documents.
On July 22, 2009, Mohammad travelled with two associates to Yemen to meet Awlaki and deliver the $22,000 that they had raised. Although they were unable to meet Awlaki in person, Mohammad and his associates did ensure that Awlaki received the money through a courier.
In addition to pleading guilty to conspiring to provide and conceal material support to terrorists, Mohammad also admitted to soliciting an undercover FBI employee (UCE), posing as a “hitman,” to kidnap and murder U.S. District Judge Jack Zouhary. In or about April 2016 – while the terrorism case was pending and assigned to Judge Zouhary – Mohammad told another inmate in the Lucas County Corrections Center in Toledo, Ohio that he wanted Zouhary kidnapped and murdered and that he was willing to pay $15,000 to have this carried out. The inmate provided Mohammad with the contact information for the UCE and stated that the UCE would need a $1,000 down payment before the murder could occur. The inmate also provided Mohammad with an agreed upon code to use when discussing the planned murder over the jail telephone.
On or about April 26, 2016, Mohammad called the UCE from the Lucas County Corrections Center. Using the agreed-upon code, Mohammad told the UCE he wanted to have Judge Zouhary killed. Mohammad agreed to provide the $1,000 down payment. When asked when he wanted the murder committed, Mohammad stated, “The sooner would be good, you know.” Over the ensuing days, Mohammad arranged to have a family member provide the $1,000 in cash to the UCE. On May 5, 2016, that family member met with the UCE and provided the UCE with $1,000 in cash. Mohammad later informed the inmate that the rest of the money for the murder was coming, according to court documents.
Under the terms of his plea agreement, Mohammad is expected to be sentenced to 27 ½ years in federal prison. Mohammad will be deported from the U.S. upon completion of his sentence, under the terms of his plea agreement.
The case is being prosecuted by Assistant U.S. Attorneys Michael Freeman, Matthew Shepherd and Christos N. Georgalis of the Northern District of Ohio, and Trial Attorneys Gregory Gonzalez and David Smith of the National Security Division’s Counterterrorism Section, following an investigation by the FBI.
Former Office Assistant for Autobody Business Sentenced for Embezzling $500,000 from EmployerRead the Press Release
SPRINGFIELD, Ill. – A former office assistant for Kim’s Autobody, Inc., of Springfield, was sentenced on July 7, for defrauding the business and its owners of approximately $500,000 over a five-year period. U.S. District Judge Sue E. Myerscough ordered that Elaine Eddington, 54, of the 1100 block of N. Hill St., Springfield, serve 27 months (2 years, 3 months) in federal prison and pay restitution in the amount of $505,834. Following completion of the prison term, Eddington was ordered to remain on supervised release for three years. Eddington was remanded to the custody of the U.S. Marshals Service following the hearing.
On Mar. 3, 2017, Eddington pled guilty to three counts of mail fraud related to her embezzlement of funds while she was employed as an office assistant. As the office assistant, from 2009 to 2014, Eddington used her position to embezzle funds which she used to pay personal debts and expenses.
Assistant U.S. Attorney Bryan D. Freres prosecuted the case. The investigation was conducted by the Sangamon County Sheriff’s Office; FBI, IRS-Criminal Investigation; and the U.S. Postal Inspection Service.
Former Jefferson County Resident Pleads Guilty to Identity Theft and Student Loan Fraud ChargesRead the Press Release
St. Louis, MO – Malachi Duncan a/k/a “Demarcus Brewster” pled guilty to charges of student loan fraud and aggravated identity theft. Duncan appeared today before United States District Judge John A. Ross.
According to court documents, Duncan fraudulently used the pedigree information of co-conspirator “Demarcus Brewster” to enroll and gain admission as a full-time student during the 2013-2014 school year at Jefferson College in Hillsboro, MO. As part of the scheme, Duncan fraudulently used Brewster’s identity to obtain federal financial aid, student housing, and on-campus employment. Duncan ultimately was arrested in Memphis, Tennessee where he used an alias to fraudulently enroll as a student at the University of Memphis.
Duncan, 32, a former resident of Hillsboro, Missouri, pled guilty to one count of conspiracy to commit student loan fraud and one count of aggravated identity theft. Sentencing has been set for October 24, 2017.
Duncan faces a statutory mandatory two-year term of imprisonment for aggravated identity theft. also faces a maximum possible penalty of 5 years and/or a fine of up to $250,000.00 for conspiracy to commit student loan fraud. The penalty imposed for aggravated identity theft must run consecutive to the penalty imposed for conspiracy to commit student loan fraud. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the United States Secret Service, the United States Postal Inspection Service, the United States Department of Education, the Office of the Inspector General/Social Security Administration, the United States Marshals Service, the Hillsboro Police Department, the Jefferson County Sheriff’s Department, and the Jefferson College Campus Police Department. Assistant United States Attorney Jennifer Roy is handling the case for the U.S. Attorney’s Office.
Former Hospital Executive Pleads Guilty to Stealing over $390,000 from Medical AssociationRead the Press Release
WASHINGTON - Deborah A. Morrison, a former executive at Providence Hospital, pled guilty today to a federal charge stemming from her theft of $391,600 from an association of medical professionals, announced U.S. Attorney Channing D. Phillips and Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office.
Morrison, of Bethesda, Md., pled guilty in the U.S. District Court for the District of Columbia to transportation of money taken by fraud. The charge carries a statutory maximum of 10 years in prison and potential financial penalties. Under federal sentencing guidelines, she faces a likely range of 24 to 30 months in prison and a fine of up to $95,000. As part of her plea, Morrison has agreed to pay $391,600 in restitution and an identical amount in a forfeiture money judgment. She is to be sentenced on Oct. 2, 2017, by the Honorable James E. Boasberg.
According to a statement of offense submitted as part of the guilty plea, Morrison worked for Providence Hospital from 1978 until 2016, with much of her career in executive positions. Apart from her official work duties, since at least 2001, Morrison oversaw the bank accounts of the Providence Hospital Medical Staff, an association comprised of medical professionals at the facility. In that role, she had access to the checkbooks and reviewed the account statements.
From December 2009 until December 2015, according to the statement of offense, Morrison wrote approximately 140 checks, totaling $391,600, from one of the association’s bank accounts containing dues payments. She endorsed the front of the checks with a signature stamp of a former President of the Medical Staff who no longer worked at Providence Hospital. She deposited all of the checks into her personal bank account.
In announcing the plea, U.S. Attorney Phillips and Assistant Director in Charge Vale commended the work of those who investigated the case from the FBI’s Washington Field Office. They also acknowledged the efforts of those who handled the case from the U.S. Attorney’s Office, including Paralegal Specialists Kristy Penny and Joshua Fein. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Anthony Saler, who is prosecuting the case.
Former Businessman's Probation Revoked, Sentenced to Prison in $1M Food Stamp Fraud SchemeRead the Press Release
PROVIDENCE, R.I. – The former owner of a Providence convenience store who admitted to masterminding a $1.1 million dollar scheme to defraud the Supplemental Nutrition Assistance Program (SNAP) has been sentenced to 31 months in federal prison, after a court imposed sentence of five-year probation with intermittent confinement was revoked at the government’s request.
In October 2016, Sami Almuhtaseb, 46, of Providence, a former owner of Oasis Market in Providence, was sentenced to five years probation with 730 days intermittent confinement at the Wyatt Detention Center. The intermittent sentence was imposed to permit Almuhtaseb to continue to operate his business. It was later determined by investigators that prior to sentencing, Almuhtaseb had divested himself of his businesses, a fact that he failed to disclose to the court, U.S. Probation or the United States Attorney’s Office at sentencing.
At the government’s request, the court revoked Almuhtaseb’s probation for committing fraud on the court, and sentenced him to federal prison. At the June 30, 2017 sentencing, U.S. District Court Chief Judge William E. Smith also ordered Almuhtaseb to serve 3 years supervised release upon completion of his prison term and to pay restitution to SNAP in the amount of $1,188,729. Almuhtaseb pleaded guilty on April 15, 2016, to conspiracy to commit Supplemental Nutrition Assistance Program fraud and money laundering.
The U.S. Sentencing Guideline range revised to reflect the defendant’s obstruction of justice in this matter is 37- 46 months imprisonment. The government recommended a sentence of 37 months imprisonment.
Almuhtaseb’s sentence is announced by Acting United States Attorney Stephen G. Dambruch; Bethanne M. Dinkins, Special Agent in Charge of the Northeast Region of the United States Department of Agriculture Office of Inspector General; and Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI.
According to court documents, between November 2009 and December 2015, the defendant’s store redeemed $2,755,125 in SNAP benefits. Over $1,259,320, or 45% of the food stamp transactions, were for transactions of $100 or more. Over 72% of the SNAP transactions at the store were from transactions in excess of $50. Legitimate SNAP transactions at a convenience store rarely involve a transaction of $50 or more.
An investigation by the United States Attorney’s Office, the Department of Agriculture Office of Inspector General and the FBI determined that at least $1.1 million dollars of SNAP funds received by Almuhtaseb were the result of fraudulent transactions. These fraudulently obtained funds were deposited into bank accounts controlled by Almuhtaseb, from which the defendant withdrew over $770,000 in cash or checks payable to himself.
An analysis of bank records performed by the FBI revealed that Almuhtaseb used a significant portion of fraudulently obtained funds to gamble, acquire real estate and pay for personal entertainment expenses. The FBI analysis showed that among the expenditures, Almuhtaseb used nearly $200,000 of fraudulently gained funds at casinos, paid over $160,000 in mortgages, and used at least $35,000 for entertainment, credit card bills and shopping.
The case was prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
Eagle Butte Man Sentenced for Third Degree BurglaryRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Third Degree Burglary was sentenced on July 6, 2017, by U.S. District Judge Roberto A. Lange.
Daniel LeBeau, age 31, was sentenced to 14 months in custody, followed by 3 years of supervised release, $3,745.00 in restitution, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
LeBeau was indicted by a federal grand jury on November 9, 2016. He pled guilty on April 17, 2017.
The conviction stems from an incident that happened between June 2, 2016, and June 13, 2016. LeBeau, who had been drinking alcohol with a friend, entered the victim’s home after parting company with his friend. The structure was in the process of being remodeled and was unoccupied. Once inside, he saw boxes of flooring and a toolbox. LeBeau removed several items from the structure. The total value of the listed property stolen was $2,360.00. There was also $50.00 in damage to the home. Some of the stolen property was recovered by law enforcement.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
LeBeau was immediately turned over to the custody of the U.S. Marshals Service.
Detroit man sentenced to five years in federal prison for heroin offenseRead the Press Release
HUNTINGTON, W.Va. – A Detroit man who was part of a group selling heroin in Huntington in 2015 was sentenced today to five years in federal prison, announced United States Attorney Carol Casto. Corey Lebron Blevins, 24, previously pleaded guilty to possession with intent to distribute heroin.
Between July and October of 2015, Blevins and others distributed heroin that was transported from Michigan to the Huntington area. On July 9, 2015, the Huntington FBI Drug Task Force executed a search warrant at 126 Olive Street in Huntington. Agents located Blevins and another individual in the residence. Agents also seized over $6,000 in cash and an AR-style pistol that Blevins admitted he possessed. On October 5, 2015, the Huntington FBI Drug Task Force conducted another search at 1826 Old 16th Street Road in Huntington. Agents again located Blevins inside the residence, as well as two other individuals. During the search, agents seized over 300 grams of heroin and over $51,000 in cash. Blevins admitted that he and the other individuals intended to sell the heroin.
The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution. Chief United States District Judge Robert C. Chambers imposed the sentence.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Detroit man pleads guilty for role in federal heroin conspiracyRead the Press Release
HUNTINGTON, W.Va. – A Detroit man involved with others in distributing heroin in the Huntington area in 2014 and 2015 pleaded guilty today to a federal drug charge, announced United States Attorney Carol Casto. Bradley William McCutchen, 36, entered his guilty plea to possession with intent to distribute 100 grams or more of heroin.
On March 28, 2015, agents with the Drug Enforcement Administration Task Force executed a search warrant at The Sandwich Joint, a restaurant located at 417 12th Street in Huntington. Agents had previously purchased heroin at the restaurant on several occasions. During the search, agents located and seized over 275 grams of heroin from a safe located on the second floor of the restaurant. Agents also seized various items of drug paraphernalia during the search, including packaging material, a digital scale, and multiple bottles of inositol powder, which is commonly used as a cutting agent in the preparation of heroin for distribution. McCutchen admitted that he used the restaurant to store heroin that he supplied to other individuals and distributed himself. McCutchen further admitted that between August 2014 and March 2015, he supplied the owner of the restaurant with heroin that he transported to Huntington from Detroit.
McCutchen faces at least 5 and up to 40 years in federal prison when he is sentenced on October 10, 2017.
The Drug Enforcement Administration Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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