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23 August 2017
Bangor Man Pleads Guilty to Sexual Exploitation of Children and Possession of Child PornographyRead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Jeffrey Swimm, 38, of Bangor, pled guilty today in U.S. District Court to sexual exploitation of children and possession of child pornography.
According to court records, between about October 2012 and April 2017, Swimm produced still-image and video files depicting child pornography, some of which were produced using a camera hidden in the defendant’s bathroom. In addition, the defendant possessed other images and videos of child pornography depicting children under the age of 12 which he solicited and received over the internet.
Swimm faces between 15 to 30 years in prison for child exploitation and up to 20 years in prison for possessing child pornography. He also faces up to a $250,000 fine on each count and between five years and life on supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Bangor Police Department, and the Penobscot County Sheriff’s Office.
Ambler Man Charged with Defrauding FHARead the Press Release
Eugene Peter Kenworthy, Jr., age 50, of Ambler, PA, was charged today by Indictment with wire fraud, false statements for the purpose of influencing the Federal Housing Administration, aggravated identity theft, and failure to file a tax return, announced Acting United States Attorney Louis Lappen.
If convicted the defendant faces a maximum possible sentence is 166 years’ imprisonment, five years of supervised release, a $5,050,000 fine, and a $1,000 special assessment
The case was investigated by the United States Department of Housing and Urban Development - Office of Inspector General and the Internal Revenue Service - Criminal Investigation, and is being prosecuted by Assistant United States Attorney Karen L. Grigsby.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Alien Smuggling Ring DismantledRead the Press Release
BROWNSVILLE, Texas – With the sentencing of the final defendant today, 11 members of a smuggling group that operated throughout the Rio Grande Valley have all been ordered to federal prison, announced Acting U.S. Attorney Abe Martinez.
Manuela Cedillo-Hernandez, 59, of La Feria, was the leader and organizer of the ring. She and her husband - Javier Aranda Velez, 51 - harbored aliens who had entered the United States unlawfully and conspired to transport them farther north into the nation’s interior. Cedillo-Hernandez employed associates in the alien smuggling scheme including her own children.
The investigation into the Cedillo-Hernandez alien smuggling organization began in March 2016. By July 2016, the investigation had revealed an extensive operation including five properties across south Texas involving the smuggling of at least 39 aliens within a few short months.
Cedillo-Hernandez was previously sentenced to 37 months in federal prison. Her home was also seized by federal authorities. The others convicted in the scheme included Francisca Torres, 54, Landsie Rubi Leija, 28, Christopher Ray Vega, 31, and William Adam Leija, 26,all of La Feria; Raquel Flores-Cedillo, 37, and Rogelio Gonzalez, 41, both of Brownsville; Guadalupe Iracheta Obregon, 41,and Bobby Joe Canales, 38, both of Alton; and Jorge Vidales, 39, of Harlingen. The final defendant - Flores Cedillo - was sentenced today to 16 months in prison. The remaining defendants were previously sentenced to a variety of terms up to 37 months imprisonment.
Immigration and Custom's Enforcement's Homeland Security Investigations conducted the four-month investigation with assistance from Enforcement Removal Operations, U.S. Marshals Service, Border Patrol, the State Department’s Diplomatic Security Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Cameron County District Attorney’s Office, Cameron County Sheriff’s Office and police departments in Brownsville, Harlingen and Mission. Assistant U.S. Attorney Jason Corley and Assistant U.S. Attorney Vince Carroll prosecuted the case.
Acting Manhattan U.S. Attorney Announces $13.4 Million Settlement of Civil Healthcare Fraud Lawsuit Against US Bioservices Corp.Read the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services’ Office of Inspector General for the New York Region (“HHS-OIG”), announced that the United States has settled a civil fraud case against US BIOSERVICES CORP. (“US BIO”) pursuant to which US BIO will pay a total of $13.4 million. The settlement resolves claims that US BIO violated the Anti-Kickback Statute and the False Claims Act by participating in a kickback scheme with Novartis PharmaceuticalS Corp. (“Novartis”) relating to the NOVARTIS drug Exjade. Specifically, the United States’ Complaint alleges that US BIO and NOVARTIS entered into a kickback arrangement pursuant to which US BIO was promised additional patient referrals and related benefits in return for refilling a higher percentage of Exjade than the two other pharmacies that also dispensed Exjade. The settlement will also resolve numerous state law civil fraud claims.
Yesterday, Chief U.S. District Judge Colleen McMahon approved a settlement stipulation to resolve the Government’s claims against US BIO. Under the settlement, US BIO is required to pay approximately $10.6 million to the United States and has made extensive admissions regarding its conduct. Further, as part of the settlement, US BIO will pay approximately $2.8 million to resolve the state law civil fraud claims. In prior lawsuits, the Government sued NOVARTIS and the two other pharmacies that participated in this same Exjade kickback scheme. The Government settled those lawsuits, pursuant to which NOVARTIS paid $390 million, the two other pharmacies paid $75 million, and NOVARTIS and the pharmacies made extensive admissions regarding their conduct.
Acting Manhattan U.S. Attorney Joon H. Kim said: “The integrity of the federal healthcare system requires that all providers, including pharmacies like US Bioservices, refrain from entering into kickback relationships. When healthcare providers accept kickbacks, they violate the law, subject what should be health-based decision-making to the influence of profit-seeking drug manufacturers, and thereby put their own financial interests ahead of the interests of their patients. This Office will continue to use its law enforcement tools to pursue healthcare providers who accept kickbacks or otherwise put their profits ahead of patient safety.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “The conduct displayed by US Bioservices compromised patient care and undermined the integrity of our nation’s health care programs. This settlement should serve as a warning to all providers that choose to let financial inducements cloud their medical judgment.”
As alleged in the Government’s Complaint, US BIO participated in a kickback scheme with NOVARTIS that violated the federal Anti-Kickback Statute and the False Claims Act. In connection with this scheme, US BIO submitted claims for thousands of Exjade prescriptions to Medicare and Medicaid, causing those programs to pay out millions of dollars for false claims tainted by kickbacks. As part of the settlement, US BIO admitted as follows:
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In December 2005, US BIO signed a contract with Novartis relating to the distribution of Exjade. Under that contract, Novartis agreed that US BIO would be one of three specialty pharmacies (the “EPASS pharmacies”) permitted to dispense Exjade as part of Novartis’s EPASS network. US BIO, in turn, agreed to provide specialty pharmacy services to Exjade patients, including having clinical staff available to speak with patients and to answer clinical questions or concerns about Exjade.
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In or about June 2007, Novartis began issuing monthly “Exjade Scorecards” to US BIO and the other two EPASS pharmacies that measured, among other things, the pharmacies’ “adherence” scores. The “adherence” score in the Exjade Scorecards showed how long Exjade patients continued to order refills, without excluding patients who stopped ordering refills due to side effects or patients who were directed to stop therapy by their physicians. Starting in or about July 2007, Novartis had discussions with US BIO regarding how US BIO could improve its “adherence” scores in the Exjade Scorecards.
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In late 2007 and early 2008, and to improve its “adherence” score, US BIO trained its nurses to call Exjade patients and tell patients that not treating iron overload, for which Exjade is prescribed, could have severe consequences like organ failure, and that while Exjade had certain common side effects like diarrhea, such side effects typically went away with time. The nurses at US BIO did not use written scripts for the calls with Exjade patients.
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In October 2008, Novartis implemented a new plan for allocating Exjade patient referrals among US BIO and the other EPASS pharmacies. Under that plan, Novartis would allocate 60% of all undesignated patient referrals to the EPASS pharmacy with the top “adherence” scores in the Exjade Scorecards and allocate 20% of the undesignated patient referrals to each of the other two EPASS pharmacies.
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Mr. Kim thanked HHS-OIG and the Medicaid Fraud Control Units for New York, Washington, and California for their investigative efforts and assistance with this case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Li Yu and Mónica P. Folch are in charge of the case.
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22 August 2017
“Family ties” ring leader sentenced in federal courtRead the Press Release
Sold hundreds of kilograms of heroin and cocaine in Indianapolis area
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler announced today that an Indianapolis man was sentenced to 360 months (30 years) imprisonment for his role in selling large quantities of narcotics in Indianapolis neighborhoods. Geraldo Colon, 48, was sentenced by U.S. District Judge Jane Magnus-Stinson after being convicted at a jury trial in April 2017, of drug distribution, money laundering and bankruptcy fraud charges.
“The goal of this office is to make the Southern District of Indiana the worst place in America to sell drugs,” said Minkler. “That is accomplished by investigations like this in which drug dealers are detained without bond, convicted at trial and sent to federal prison for a very long time.”
In May 2014, law enforcement officials learned that large quantities of narcotics were being shipped to the Indianapolis area from Phoenix, Arizona. The drugs were being shipped to a location on Bomar Lane in Greenwood, Indiana. From there, the drugs were being moved to the Muebleria Luz Furniture Store on the Northwest side of Indianapolis, where Colon then distributed them to various Indianapolis-based drug traffickers.
Law enforcement soon learned that Colon was the ringleader of this drug trafficking organization, which brought hundreds of pounds of heroin, cocaine and methamphetamine to the Indianapolis area. Various search warrants were served during the investigation netting: 24 firearms, over $4.5 million in cash proceeds, along with 9.5 kilograms of heroin, over 21 kilograms of cocaine and 22 kilograms of methamphetamine.
Colon was one of 20 federal defendants charged as part of Operation Family Ties that targeted a well-armed and heavily funded drug trafficking organization. A large portion of the drugs were being distributed in the Northwest side of Indianapolis as well as the Butler-Tarkington Neighborhood. Two other primary distributors in the “Family Ties” investigation have been sentenced. Daniel Stewart was sentenced to life without parole in November 2016 and Wade Havvard was sentenced to 31 years in May 2016.
“The negative impact this organization had on the lives and families of Indianapolis is unmeasurable, yet devastating,” said IMPD Chief Bryan Roach. “I am thankful for the good work and passion all the detectives working in collaboration with our federal partners who continue to pursue these types of crimes and criminals to change lives and make Indianapolis a safer place.”
"The investigation of Colon not only shut down a major source of narcotics to the Indianapolis area, but disrupted the flow of drug proceeds through financial systems,” said Gabriel Grchan, IRS Criminal Investigation Special Agent in Charge. “As shown in this investigation, criminals can expect that IRS special agents will expose illicit financial activity that is concealed within legitimate and fictitious businesses. I am proud of the efforts of this investigation as it demonstrates the tremendous work achieved when law enforcement agencies partner together to protect our communities.”
“Concealing income and assets in a bankruptcy proceeding is a crime,” stated Nancy J. Gargula, United States Trustee for Indiana, Central Illinois and Southern Illinois (Region 10). “We are grateful to all of our law enforcement partners in this case, and in particular to U.S. Attorney Minkler for his commitment to pursuing those who commit bankruptcy fraud and abuse the bankruptcy process for their own personal gain.” The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill
This case was investigated by the Indianapolis Metropolitan Police Department, Internal Revenue Service-Criminal Investigation, Drug Enforcement Administration, Department of Homeland Security Investigations, and the U.S. Trustee’s Office.
According to Assistant U.S. Attorney Michelle P. Brady who prosecuted this case for the government, Colon must serve five years of supervised release following his lengthy sentence and pay a $5,000 fine.
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United States Files Complaints to Forfeit More Than $11 Million from Companies That Allegedly Laundered Funds to Benefit Sanctioned North Korean EntitiesRead the Press Release
WASHINGTON – The United States filed two complaints today seeking imposition of a civil money laundering penalty and to civilly forfeit more than $11 million from companies that allegedly acted as financial facilitators for North Korea, announced U.S. Attorney Channing D. Phillips, Michael DeLeon, Special Agent in Charge of the FBI’s Phoenix Field Office, and Michael J. Anderson, Special Agent in Charge of the FBI’s Chicago Field Office.
The actions, filed in the U.S. District Court for the District of Columbia, represent two of the largest seizures of North Korean funds by the Department of Justice. One complaint seeks $6,999,925 associated with Velmur Management Pte Ltd., a Singapore-based company. The other seeks $4,083,935 from Dandong Chengtai Trading Co. Ltd., also known as Dandong Zhicheng Metallic Material Co., Ltd., a company in Dandong, China.
The lawsuits follow a similar complaint, filed in June 2017, seeking more than $1.9 million from Mingzheng International Trading Limited, a company based in Shenyang, China.
The complaints allege that the companies have participated in schemes to launder U.S. dollars on behalf of sanctioned North Korean entities. According to the complaints, the companies participated in financial transactions in violation of the International Emergency Economic Powers Act (IEEPA), the North Korean Sanctions and Policy Enhancement Act of 2016, and federal conspiracy and money laundering statutes. Today’s complaints are the first filed actions based on the 2016 North Korean Sanctions and Policy Enhancement Act.
“These complaints show our determination to stop North Korean sanctioned banks and their foreign financial facilitators from aiding North Korea in illegally accessing the United States financial system to obtain goods and services in the global market place,” said U.S. Attorney Phillips. “According to the complaints, these front companies are supporting sanctioned North Korean entities, including North Korean military and North Korean weapons programs. Working with our law enforcement partners, we will vigorously enforce vital sanctions laws.”
“The complaints allege that these companies are assisting North Korea in evading sanctions, which is in direct conflict with our national security interests,” said Special Agent in Charge DeLeon, of the FBI’s Phoenix Field Division. “We will continue to use the necessary resources to expose these types of actions and investigate those who utilize the U.S. banking systems for illegal activities.”
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U.S. v. Velmur Management Pte., Ltd. (Velmur) and Transatlantic Partners Pte. Ltd. (Transatlantic)
This complaint alleges that Velmur and Transatlantic Partners Pte. Ltd. (Transatlantic) laundered United States dollars on behalf of sanctioned North Korean banks that were seeking to procure petroleum products from JSC Independent Petroleum Company (IPC), a designated entity. The complaint also seeks a civil monetary penalty against Velmur and Transatlantic for prior sanctions and money laundering violations related to this scheme.
According to the complaint, designated North Korean banks use front companies, including Transatlantic, to make U.S. dollar payments to Velmur. The complaint relates to funds that were transferred through four different companies and remitted to Velmur to wire funds to JSC Independent Petroleum Company (IPC), a Russian petroleum products supplier. On June 1, 2017, the Department of the Treasury’s Office of Foreign Asset Controls (OFAC) designated IPC. The designation noted that IPC had a contract to provide oil to North Korea and reportedly shipped over $1 million worth of petroleum products to North Korea.
The United Nations Panel of Experts reported in 2017 on the methods used by North Korean banks to evade sanctions and continue to access the international banking system. Specifically, despite strengthened financial sanctions, North Korean networks are adapting by using greater ingenuity in accessing formal banking channels. This includes maintaining correspondent bank accounts and representative offices abroad which are staffed by foreign nationals making use of front companies. These broad interwoven networks allow the North Korean banks to conduct illicit procurement and banking activity.
An FBI investigation revealed that Velmur’s and Transatlantic’s activities mirror this money laundering paradigm. Specifically, companies identified in the complaint and Transatlantic act as front companies for designated North Korean banks.
The government is seeking to forfeit $6,999,925 that was wired to Velmur in May 2017. The U.S. dollar payments, which cleared through the U.S., are alleged to violate U.S. law, because the entities were surreptitiously making them on behalf of the designated North Korean Banks, whose designation precluded such U.S. dollar transactions. The government also is seeking imposition of a monetary penalty commensurate with the millions of dollars allegedly laundered by Velmur and Transatlantic.
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U.S. v. Dandong Chengtai Trading Co., Ltd. (Dandong Chengtai), also known as Dandong Zhicheng Metallic Material Co., Ltd.
This complaint alleges that Dandong Chengtai and associated front companies controlled by Chi Yupeng, a Chinese national, comprise one of the largest financial facilitators for North Korea. According to the complaint, Dandong Chengtai conspired to evade U.S. economic sanctions by facilitating prohibited U.S. dollar transactions through the United States on behalf of the North Korean Workers’ Party, a sanctioned entity.
The complaint further alleges that the North Korean government relies on exports of coal as its primary means of obtaining access to foreign currency, and that the North Korean military controls the amount of coal produced and its subsequent export. The North Korean government uses proceeds of coal sales to fund its weapons of mass destruction program and missile programs. Coal generates more than $1 billion in revenue per year for North Korea. The investigation revealed that Dandong Chengtai is one of the largest importers of North Korean coal in China, and has continued to engage in illicit U.S. dollar transactions related to its coal sales to benefit North Korea.
The complaint alleges that Dandong Chengtai facilitated wire transfers denominated in U.S. dollars for purchases of goods that are well outside the scope of a mineral trading company. Financial records reveal that purchases of bulk commodities such as sugar, rubber, petroleum products, and soybean oil, among others, were in fact destined for North Korea.
As reported in findings by the Treasury Department and the United Nations Panel of Experts, North Korean financial facilitators frequently establish and maintain offshore U.S. dollar accounts for the purposes of remitting wire transfers denominated in U.S. dollars on behalf of sanctioned North Korean entities. These broad interwoven networks allow sanctioned North Korean entities to conduct illicit procurement and banking activity.
The government is seeking to forfeit $4,083,935 that Dandong Chengtai wired on June 21, 2017 to Maison Trading, using their Chinese bank accounts. The investigation revealed that Maison Trading is a front company operated by a Dandong Chengtai employee. These U.S. dollar payments, which cleared through the United States, are alleged to violate U.S. law, because the recent North Korean sanctions law specifically barred U.S. dollar transactions involving North Korean coal and the proceeds of these transactions were for the benefit of the North Korea Worker’s Party, whose designation precluded such U.S. dollar transactions.
This case relates to a previously unsealed opinion from Chief Judge Beryl A. Howell of the U.S. District Court for the District of Columbia, which found that probable cause existed to seize funds belonging to Dandong Chengtai.
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The claims made in the complaints are only allegations and do not constitute a determination of liability.
The FBI’s Phoenix Field Office is investigating the case involving Velmur Management Pte Ltd. and Transatlantic Partners Pte., Ltd. The FBI’s Chicago Field Office is investigating the case involving Dandong Chengtai Trading Co. Ltd. Both investigations are being supported by the FBI Counterproliferation Center.
Assistant U.S Attorneys Arvind K. Lal, Zia M. Faruqui, Christopher B. Brown, Deborah Curtis, Ari Redbord, and Brian P. Hudak, all of the U.S. Attorney’s Office for the District of Columbia, are prosecuting both cases. Paralegal Specialist Toni Anne Donato and Legal Assistant Jessica McCormick are providing assistance.
dandong_chengtai_trading_-_complaint_-_august_2017.pdf velmur_management_-_complaint_-_august_2017_4.pdfU.S. Postal Service Employee Sentenced for Lying About Cancer in Order to Take Sick LeaveRead the Press Release
DENVER – Caroline Zarate Boyle, age 60, of Highlands Ranch, Colorado, was sentenced today by U.S. District Court Judge Raymond P. Moore to serve 5 years’ probation with the first 6 months in home confinement including wearing an electronic monitor. She was also ordered to pay a $10,000 fine and spend 652 hours doing community service to be served at a cancer treatment center, cancer research center or hospice. Finally, she was ordered to pay $20,798.38 in restitution to the U.S. Postal Service, Acting U.S. Attorney Bob Troyer and Executive Special Agent in Charge of the U.S. Postal Service Office of the Inspector General announced.
Boyle was first charged by Criminal Complaint on March 3, 2017. She was indicted by a federal grand jury in Denver on March 16, 2017. She pled guilty to the indictment as charged without a plea agreement on April 28, 2017. She was sentenced by Judge Moore today, August 22, 2017.
According to the Factual Basis for Change of Plea stipulated by both parties, Boyle was an employee of the U.S. Postal Service. In the summer of 2015, after she was not selected for a promotion, Boyle decided to take some time off work by pretending to have cancer. She communicated to her supervisor that she was recently diagnosed with non-Hodgkins lymphoma. She then began taking substantial amounts of sick leave, despite the fact that Boyle did not have non-Hodgkins lymphoma, nor did she have any other sort of cancer or serious illness that necessitated the sick leave she was taking.
Boyle continued the ruse until she was caught following an interviewed by an agent of the Postal Service’s Office of the Inspector General on February 28, 2017. In the approximately twenty months that Boyle’s fraud lasted, she used her non-existent cancer treatment to support both unwarranted sick leave and unwarranted accommodations allowing her to work part-time or work from home. Boyle was to continue this fraud until her scheduled retirement in April 2017. Despite claiming that cancer treatment had made her too sick to work or come to the office, she was planning a post-retirement cruise to Hawaii.
During the course of the investigation it was determined that Boyle e-mailed her supervisor notes from two different doctors indicating that she was receiving cancer treatment. However, the notes were created by Boyle as she was not a patient of either doctor.
Additional evidence at sentencing showed that, prior to faking cancer herself, Boyle had falsely accused a subordinate of faking cancer and denied her certain accommodations which that employee had requested due to her sickness. In contrast, Boyle was often granted paid administrative leave (not charged to her sick leave balance) and allowed to work from home up to five days a week based on her fraudulent illness.
Executive Special Agent in Charge Scott Pierce said, “The American public trusts that U.S. Postal Service employees will obey the law. When an employee of the Postal Service violates that trust, the U.S. Postal Service Office of Inspector General (USPS OIG) thoroughly investigates those matters. This type of behavior within the Postal Service is not tolerated and the overwhelming majority of Postal Service employees, which serve the public, are honest, hardworking, and trustworthy individuals who would never consider engaging in any type of criminal behavior. The USPS OIG and U.S. Attorney’s Office remain committed to holding accountable anyone responsible for such violations.”
This case was investigated by the U.S. Postal Service Office of the Inspector General. The case was prosecuted by Special Assistant United States Attorney Dan Burrows.
Two defendants plead guilty to child pornography crimesRead the Press Release
CHARLESTON, W.Va. – Two defendants pleaded guilty yesterday to child pornography crimes, announced United States Attorney Carol Casto. Steven Lee Rhodes, 39, of Clendenin, pleaded guilty to receiving child pornography. In a separate prosecution, Kenneth Frederick Stier, 29, of Spencer, entered his guilty plea to distributing child pornography.
Rhodes admitted that on June 4, 2015, he received a video of a prepubescent minor engaged in sex acts. The video was received on Rhodes’ computer, which was located at his residence in Clendenin. The investigation revealed that Rhodes was using a peer-to-peer file sharing program to download, receive, and distribute child pornography images and videos. Rhodes admitted that he possessed over 600 images and videos of minors engaged in sex acts.
In a separate prosecution, Stier admitted that on December 13, 2016, he distributed two videos of prepubescent minors engaged in sex acts. An undercover law enforcement operation revealed that Stier distributed the videos using a messenger application on his cell phone. Stier also admitted to distributing child pornography videos on another occasion, and to possessing over 600 images and videos depicting child pornography.
Rhodes and Stier both face at least five and up to 20 years in federal prison when they are sentenced, as well as a term of federal supervised release of at least five years and up to life. Rhodes is scheduled to be sentenced on November 14, 2017. Stier is scheduled for sentencing on November 13, 2017. Upon release from federal prison, both Rhodes and Stier will be required to register as sex offenders.
“The penalties for endangering children with sexual predatory behavior are significant, and those who abuse the most vulnerable will pay a heavy price,” said United States Attorney Carol Casto. “We will continue working with our law enforcement partners to aggressively prosecute those who exploit the children of our communities.”
The Federal Bureau of Investigation, the West Virginia State Police, the West Virginia Internet Crimes Against Children Task Force, the Parkersburg Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigations. The Roane County Sheriff’s Office also investigated the Stier case. Assistant United States Attorney Lisa G. Johnston is in charge of these prosecutions.
The plea hearing for Rhodes was held before United States District Judge John T. Copenhaver, Jr. The plea hearing for Stier was held before United States District Judge Joseph R. Goodwin.
These cases were brought as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Two Texas Men Plead Guilty to Federal Hate Crime for Assaults Based on Victim’s Sexual OrientationRead the Press Release
Nigel Garrett, 21, and Cameron Ajiduah, 18, pleaded guilty today to assaulting men because of the victim’s sexual orientation, the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office of the Eastern District of Texas, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives’ Dallas Division announced.
According to the plea agreement signed by Garrett on January 19, 2017, defendants Garrett, Anthony Shelton and Chancler Encalade used Grindr, a social media dating platform for gay men, to arrange to meet the victim at the victim’s home. Upon entering the victim’s home, the defendants restrained the victim with tape, physically assaulted the victim, and made derogatory statements to the victim for being gay. The defendants brandished a firearm during the home invasion, and stole the victim’s property, including his motor vehicle.
Included in a separate plea agreement signed by Ajiduah on February 7, 2017, defendants Ajiduah, Garrett, and Shelton used the same scheme on a different victim, including restraining the victim and covering his eyes with tape, verbally berating him for his sexual orientaion, and physically assaulting him.
A federal grand jury previously returned an eighteen-count indictment against Ajiduah, Shelton, Garrett, and Chancler Encalade including charges of hate crimes, kidnappings, carjackings, and the use of firearms to commit violent crimes. The indictment also charged the defendants with conspiring to cause bodily injury because of the victim’s sexual orientation during four home invasions in Plano, Frisco, and Aubrey, Texas, between January 17 and February 7, 2017.
“The Justice Department will not tolerate hate crimes against any individual based on sexual orientation,” said Acting Assistant Attorney General John Gore. “Hate crimes are violent crimes, but also attack the fundamental principles of the United States. The Justice Department will continue to aggressively investigate and prosecute hate crimes.”
"Garrett and Ajiduah invaded homes, robbed and assaulted their victims, and particularly horrendous, targeted their victims based on the victim’s sexual orientation,” said Acting U.S. Attorney Brit Featherston. “In response to such a hate crime, let it be known that law enforcement will leave no stone unturned to catch and prosecute the likes of these criminals to the fullest extent of the law."
Garrett and Ajiduah face a maximum statutory penalty of life in prison and a $250,000 fine for their guilty plea for the hate crime charge.
The investigation is being conducted by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, the Plano Police Department, and the Frisco Police Department. The case is being prosecuted by Assistant U.S. Attorney Tracey Batson of the U.S. Attorney’s Office for the Eastern District of Texas and Trial Attorney Saeed Mody of the Civil Rights Division.
Two Maryland men indicted on bank fraud chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two Baltimore, Maryland men were indicted by a federal grand jury on August 9, 2017 sitting in Wheeling on bank fraud charges, Acting United States Attorney Betsy Steinfeld Jividen announced.
Steven Allen Baldwin, Jr., age 34, was indicted on one count of “Conspiracy to Commit Bank Fraud” and three counts of “Bank Fraud.”
Tyrone Baldwin, age 31, was indicted on one count of “Conspiracy to Commit Bank Fraud” and three counts of Bank Fraud.”
Both are accused of stealing checks from mailboxes, creating counterfeit checks, and cashing those counterfeit checks. The crimes are alleged to have taken place in April 2016 in Berkeley and Jefferson Counties, West Virginia.
It is alleged that more than $9,000 was taken in this case. The government is seeking to forfeit the amount of alleged proceeds in this case.
Assistant U.S. Attorney Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The United States Postal Inspection Service is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Grant County residents admit to heroin distributionRead the Press Release
ELKINS, WEST VIRGINIA – A Grant County man and woman pled guilty today to heroin distribution charges, Acting United States Attorney Betsy Steinfeld Jividen announced.
Cody Zane Stevenson, age 24, pled guilty to a one count information, charging him with “Distribution of Heroin - Aiding and Abetting.” Stevenson admitted to distributing heroin in May 2016 in Grant County, West Virginia.
Amanda Lynn Bow, 22, pled guilty to a one count information, charging him with “Distribution of Heroin - Aiding and Abetting.” Bow admitted to distributing heroin in May 2016 in Grant County, West Virginia.
Stevenson and Bow each face up to 20 years incarceration and a fine of up to $1,000,000. 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 cases on behalf of the government. The West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Tuskegee Man Sentenced to Life Plus 282 Years in Federal Prison for Multiple Armed Robberies and CarjackingRead the Press Release
Montgomery, Alabama—Today, Tariq Khalil Jones, 35, of Tuskegee, Alabama, was sentenced to life in federal prison plus 282 years for committing numerous armed robberies and a carjacking, announced A. Clark Morris, Acting U.S. Attorney for the Middle District of Alabama.
His crime spree began on January 16, 2016, and ended May 4, 2016, and included the following ten businesses:
• Dollar General on Notasulga Road in Tallassee, Alabama;
• Tiger Spirits on Webster Road, in Auburn, Alabama;
• Chevron Store 10 on West Longleaf Drive in Auburn, Alabama;
• QuikTrip convenience store on East Highway 34 in Newnan, Georgia;
• Marathon Service Station on Lafayette Parkway in LaGrange, Georgia;
• Wing N’ Burger Factory on Hogansville Road in LaGrange, Georgia;
• Papa John’s restaurant on South Memorial Drive in Prattville, Alabama;
• Family Dollar on 2nd Avenue in Opelika, Alabama;
• Family Dollar on Broadnax Street in Dadeville, Alabama; and
• Dollar General on County Road 89 in Camp Hill, Alabama.
Jones used a firearm during each of the crimes and while fleeing one of them, he shot at a vehicle with a father and his 3-year old daughter inside. Luckily, neither were harmed. After another robbery, he carjacked a vehicle from a woman in the store’s parking lot.
The sentences were handed down after his June 2017 trial where a jury found Jones guilty on each of the twenty-three counts in his indictment. Eleven of the counts carried a mandatory life sentence and included the ten robberies and carjacking. Twelve counts were for using a firearm during the robberies, carjacking, and shooting. The first of the firearms counts resulted in a 7-year sentence. For the remaining eleven firearms counts, he was sentenced to 25 years each. The 7 year and 25 year sentences run consecutive to each other for a total of 282 years. The 282 years run consecutive to his life sentences. There is no parole in the federal system.
The life sentences for Jones were triggered due to his four previous robbery convictions in state court. Federal law imposes a mandatory life sentence if the defendant is convicted in federal court of a serious violent felony, and has two or more previous convictions for serious violent felonies.
“Tariq Jones terrified innocent people by putting a gun in their faces and demanding money,” stated Acting U.S. Attorney Morris. “He showed no regard for human life when he shot at a vehicle with a father and his 3 year old daughter inside just because he thought he was being followed. He is a violent criminal and I hope this sentence sends a clear message to other offenders that my office will use all of its power and resources to combat violent crime in our communities.”
This case was investigated by the Federal Bureau of Investigation, the Auburn Police Division, the Camp Hill Police Department, the Coweta County Sheriff's Office (Newnan, GA), the Dadeville Police Department, the LaGrange, Georgia Police Department, the Opelika Police Department, the Prattville Police Department, and the Tallassee Police Department. Assistant United States Attorneys John Geer and Brandon Bates prosecuted the case.
Tuscaloosa Man Plead Guilty to Bank RobberyRead the Press Release
BIRMINGHAM –A Tuscaloosa man pleaded guilty today in federal court to robbery of a federally insured bank and taking of hostages during the robbery in the Northern District of Alabama.
U.S. Attorney Jay Town, and FBI Special Agent in Charge, Johnnie Sharp announced the plea.
CEDRICK LAMAR COLLINS, 19, entered his plea before U.S. District Court Judge L. SCOTT COOGLER today to one count of robbery of a federally insured bank, the Alabama Credit Union, in Tuscaloosa, Alabama. Collins also pleaded guilty to a second count of taking hostages during the commission of the bank robbery. The maximum prison penalty for bank robbery is 20 years. The charge of taking a hostage while attempting to flea a bank robbery carries a minimum 10-year prison sentence. The charge of taking someone hostage to force a specific government action carries a maximum penalty of life in prison.
The robbery of Alabama Credit Union occurred on January 17, 2017. The University of Alabama Police Department received a call concerning suspicious activity at the credit union. As SWAT teams from the Tuscaloosa Police Department and Tuscaloosa Sheriff’s Department arrived on the scene, COLLINS had taken a number of bank employees hostage after demanding money. Officers attempted to make entry into the bank and encountered COLLINS in the stairwell with a hostage in front of him. COLLINS threatened to start shooting unless law enforcement moved back. Officers later made entry into the bank and safely secured COLLINS, without any of the hostages being injured. COLLINS’ suspected firearm was determined to be a BB gun.
The Federal Bureau of Investigation investigated the case, which Assistant U.S. Attorney Brad Felton prosecuted.
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Top Executives at Long Island Mortgage Lender Arrested for Engaging in $8.9 Million FraudRead the Press Release
A complaint was unsealed today in federal court in Central Islip, New York, charging Edward E. Bohm, Edward J. Sypher, Jr., and Matthew T. Voss, senior executives at Long Island mortgage lender Vanguard Funding, LLC (Vanguard), with conspiracy to commit wire and bank fraud in connection with their obtaining more than $8.9 million of warehouse loans for Vanguard to fund mortgages. The defendants allegedly misused the loans to pay personal expenses and compensation, as well as to repay earlier fraudulently obtained loans. Bohm, Sypher and Voss were arrested this morning, and their initial appearances are scheduled for this afternoon before United States Magistrate Judge Arlene R. Lindsay.
The arrests were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Maria T. Vullo, Superintendent, New York State Department of Financial Services.
“As alleged, the defendants – executives of a mortgage lender – defrauded banks into lending them money by stating that the money would fund new mortgages or refinance existing ones,” stated Acting United States Attorney Rohde. “We will continue to address dishonesty in the mortgage industry whether the victims are financial institutions, investors, or homeowners, as it ultimately hurts all of us as a community.”
“As alleged, the defendants sought short-term loans from financial institutions that served as a repository for lenders,” stated FBI Assistant Director-in-Charge Sweeney. “They then allegedly took the money, which is typically intended for borrowers looking to purchase a home, and used it for their own personal gain. Today’s charges are proof of our continued determination to root out those whose business practices attempt to harm the financial integrity of banks and financial institutions that facilitate homeownership.”“These defendants, for their own gain, allegedly defrauded the financial institutions that provide funding for individuals to buy homes, and they must be held accountable,” said Financial Services Superintendent Vullo. “As the regulator and protector of financial services companies in New York, the Department of Financial Services is proud to have assisted the Acting United States Attorney in bringing these defendants to justice.”
According to the complaint unsealed this morning, between August 2016 and March 2017, Voss, Vanguard’s Chief Operating Officer, Sypher, the Chief Financial Officer, and Bohm, the President of Sales, engaged in a scheme in which they obtained warehouse loans, or short-term loans, for Vanguard by falsely representing that Vanguard would use the proceeds of those loans to fund mortgages or mortgage refinancing for Vanguard’s clients. Once Vanguard received the loans, however, the defendants used the monies to pay personal expenses and compensation and to pay off loans they had previously obtained with fraudulent loan submissions for improper purposes. Nearly $9 million of fraudulently obtained, and subsequently misused, loans have been identified so far.
In a recorded conversation with a co-conspirator in 2017, Bohm expressed confidence that they would evade criminal liability because the victims of their fraudulent scheme were financial institutions. “At the end of the day, the s--- we did wasn’t to the public,” Bohm stated in part, according to the complaint.
The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face a statutory maximum of 30 years’ imprisonment for bank fraud conspiracy and 20 years’ imprisonment for wire fraud conspiracy.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Whitman G.S. Knapp and Elizabeth Losey Macchiaverna are in charge of the prosecution.
The Defendants:
EDWARD E. BOHM
Age: 39
Residence: Nissequogue, New YorkEDWARD J. SYPHER, JR.
Age: 40
Residence: Scarsdale, New YorkMATTHEW T. VOSS
Age: 42
Residence: Northport, New YorkE.D.N.Y. Docket No. 17-MJ-742
Toledo man indicted for having images of child sexual exploitation and rapeRead the Press Release
A Toledo man was indicted for receipt and distribution of child pornography, said U.S. Attorney Justin E. Herdman.
Russell Smith, 50, received numerous images of minors engaged in sexually explicit conduct, This took place between at least March 15 and August 10, 2017, according to the indictment.
Smith possessed more than 20 computer files and images of children, some as young as eight years old, being sexually abused and/or raped, according to court documents.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the United States Secret Service in Toledo and is being handled by Assistant U.S. Attorney Tracey Ballard Tangeman
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Men Plead Guilty to Conspiracy to Violate the Lacey Act by Illegally Trafficking Threatened Alligator Snapping TurtlesRead the Press Release
The Department of Justice’s Environment and Natural Resources Division, the United States Attorney’s Office for the Eastern District of Texas, and the U.S. Fish and Wildlife Service announced today that Travis Leger and Rickey Simon, both of Sulphur, Louisiana, and Jason Leckelt of Wilburton, Oklahoma, have all pled guilty to conspiracy to violate the Lacey Act by illegally trafficking alligator snapping turtles.
Alligator snapping turtles are the largest freshwater turtles in the world and can grow to weigh more than 200 pounds with a lifespan of more than 100 years. The turtles are designated as threatened with statewide extinction under Texas State Law, which strictly prohibits anyone from taking, capturing, transporting, or selling these turtles, or attempting to do so. The turtles are also protected under Louisiana State Law, which makes it illegal to sell or barter for the turtles. The Lacey Act makes it a federal crime to engage in the interstate trafficking of wildlife taken in violation of state wildlife protection laws.
“Those who choose to exploit our precious wildlife resources threaten the existence of these rare reptiles,” said Acting U.S. Attorney Brit Featherston. “Protection of the turtles and the prevention of diseases that may spread by these actions make these prosecutions vital to the health of our natural wildlife.”
In April 2017, Leger, Leckelt, and Simon were charged in a six-count indictment. The conspiracy charged all defendants with illegally taking more than 60 large alligator snapping turtles during their multiple fishing trips to Texas in the spring and summer of 2016, and also with transporting the turtles back to a property in Sulphur, Louisiana, where they intended to sell the turtles. In July 2016, Federal agents seized about 30 large alligator snapping turtles from ponds located at a defendant’s property in Sulphur, Louisiana, pursuant to a federal search warrant.
As part of his guilty plea, Travis Leger admitted to selling a live, illegally taken, 171-pound turtle for $1,000 and another live, illegally taken, 168-pound turtle for $500 in May and June of 2016. The turtles were later seized by U.S. Fish and Wildlife Agents from the buyer and are currently being cared for at a private facility. In sum, Leger admitted that the market value of all the turtles that he caught illegally in Texas and then sold in Louisiana during the course of the conspiracy was between $40,000 and $95,000. Leger also agreed to forfeit all of the turtles seized from his property in Sulphur, Louisiana, and will permit the U.S. Fish and Wildlife Service to return to the property, drain the ponds, and seize all remaining alligator snapping turtles. Similarly, Jason Leckelt, who is Leger’s half-brother, admitted that the market value of the turtles that he illegally personally caught in Texas and sold in Louisiana during the course of the conspiracy was between $15,000 and $40,000.
Finally, Rickey Simon admitted that his role in the conspiracy included selling a 120-pound alligator snapping turtle, illegally caught in Texas, to an undercover U.S. Fish and Wildlife Agent in May of 2016. In addition, Mr. Simon admitted that he obstructed justice by deleting text messages from his cell phone prior to being interviewed by a Special Agent from the U.S. Fish and Wildlife Service during the execution of the search warrant at the Sulphur property in July 2016. Simon deleted the text messages from his cell phone after Travis Leger called and warned him that game wardens were coming to the Sulphur property to take the turtles out of the ponds. Simon also admitted that he subsequently made false statements to the Special Agent during the execution of the search warrant at the Sulphur property by denying that he had ever fished for alligator snapping turtles in Texas.
The defendants all face up to a maximum five years in prison and a $250,000 fine for the conspiracy convictions.
Assistant U.S. Attorney Joseph R. Batte of the Eastern District of Texas and Senior Trial Attorney David P. Kehoe of the Department of Justice, Environmental Crimes Section, prosecuted the case. The case is being investigated by the U.S. Fish and Wildlife Service, the Louisiana Department of Wildlife and Fisheries, and the Texas Parks and Wildlife Department.
Three Guilty of Threatening East Texas Alligator Snapping TurtlesRead the Press Release
BEAUMONT, Texas – Three men have pleaded guilty to illegally trafficking alligator snapping turtles in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston along with the Department of Justice’s Environment and Natural Resources Division and the U.S. Fish and Wildlife Service today.
Travis Joseph Leger, 40, and Rickey Paul Simon, 57, both of Sulphur, Louisiana, and Jason Gene Leckelt, 36, of Wilburton, Oklahoma, have all pleaded guilty to conspiracy to violate the Lacey Act by illegally trafficking alligator snapping turtles. Simon and Leckelt appeared before U.S. Magistrate Judge Keith Giblin on Aug. 17, 2017 while Leger entered his guilty plea before Judge Giblin on Aug. 21, 2017.
Alligator snapping turtles are the largest freshwater turtles in the world and can grow to weigh more than 200 pounds with a lifespan of more than 100 years. The turtles are designated as threatened with statewide extinction under Texas State Law, which strictly prohibits anyone from taking, capturing, transporting, or selling these turtles, or attempting to do so. The turtles are also protected under Louisiana State Law, which makes it illegal to sell or barter for the turtles. The Lacey Act makes it a federal crime to engage in the interstate trafficking of wildlife taken in violation of state wildlife protection laws.
“Those who choose to exploit our precious wildlife resources threaten the existence of these rare reptiles,” said Acting U.S. Attorney Brit Featherston. “Protection of the turtles and the prevention of diseases that may spread by these actions make these prosecutions vital to the health of our natural wildlife.”
According to information presented in court, Leger, Leckelt, and Simon conspired to illegally take more than 60 large alligator snapping turtles during their multiple fishing trips to Texas in the spring and summer of 2016. The defendants transported the turtles back to a property in Sulphur, Louisiana, where they intended to sell them. In July 2016, Federal agents seized about 30 large alligator snapping turtles from ponds located at a defendant’s property in Sulphur, Louisiana, pursuant to a federal search warrant.
As part of his guilty plea, Leger admitted to selling a live, illegally taken, 171-pound turtle for $1,000 and another live, illegally taken, 168-pound turtle for $500 in May and June of 2016. The turtles were later seized by U.S. Fish and Wildlife Agents from the buyer and are currently being cared for at a private facility. Leger admitted that the market value of all the turtles that he caught illegally in Texas and then sold in Louisiana during the course of the conspiracy was between $40,000 and $95,000. Leger also agreed to forfeit all of the turtles seized from his property in Sulphur, Louisiana, and will permit the U.S. Fish and Wildlife Service to return to the property, drain the ponds, and seize all remaining alligator snapping turtles. Similarly, Leckelt, who is Leger’s half-brother, admitted that the market value of the turtles that he illegally personally caught in Texas and sold in Louisiana during the course of the conspiracy was between $15,000 and $40,000.
Finally, Simon admitted that his role in the conspiracy included selling a 120-pound alligator snapping turtle, illegally caught in Texas, to an undercover U.S. Fish and Wildlife Agent in May of 2016. In addition, Simon admitted that he obstructed justice by deleting text messages from his cell phone prior to being interviewed by a Special Agent from the U.S. Fish and Wildlife Service during the execution of the search warrant at the Sulphur property in July 2016. Simon deleted the text messages from his cell phone after Leger called and warned him that game wardens were coming to the Sulphur property to take the turtles out of the ponds. Simon also admitted that he subsequently made false statements to the Special Agent during the execution of the search warrant at the Sulphur property by denying that he had ever fished for alligator snapping turtles in Texas.
Under federal statutes, the defendants each face up to five years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
The case is being investigated by the U.S. Fish and Wildlife Service, the Louisiana Department of Wildlife and Fisheries, and the Texas Parks and Wildlife Department and is being prosecuted by Assistant U.S. Attorney Joseph R. Batte of the Eastern District of Texas and Senior Trial Attorney David P. Kehoe of the Department of Justice, Environmental Crimes Section.
Taney County Restaurant Owner Pleads Guilty to Tax EvasionRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that the owner of a Taney County, Mo., restaurant pleaded guilty in federal court today to tax evasion after confessing his crimes to undercover federal agents who posed as buyers when his business was for sale.
Tony E. Cowden, 63, of Protem, Mo., pleaded guilty before U.S. Magistrate Judge David P. Rush to five counts of income tax evasion.
Cowden operated Tony’s Pizza House in Protem since April 2008. By pleading guilty today, Cowden admitted that he engaged in a scheme to conceal taxable income from the IRS from April 2008 to January 2015 by skimming from cash sales at the business and not reporting the cash income to the IRS.
Cowden listed his business and property for sale in 2015. Two undercover agents from IRS-Criminal Investigation posed as potential buyers and met with Cowden. Cowden apologized to the undercover agents for not having provable income to substantiate the $599,000 sales price, but stated, “it saves me a lot of taxes.” Cowden admitted to the undercover agents that he “pockets” all the money from the sale of Keno-Lotto tickets and the cash received from the arcade games in his restaurant. Cowden maintained true and correct financials for the business in a black three-ring binder.
Cowden encouraged his customers to pay in cash by offering discounts for cash payments. Cowden concealed the cash he skimmed from the restaurant from his accountant and so evaded paying federal income taxes on that revenue. By omitting a portion of his gross receipts, Cowden falsely claimed he was entitled to the earned income credit.
In addition to $91,037 in federal income taxes for the years 2009, 2010, 2011, 2012, 2013 and 2014, Cowden admitted he owes $12,474 in state income tax and $35,016 in state sales tax for the same period.
Federal and state tax losses for those five years total $138,527. Under the terms of today’s plea agreement, Cowden must pay restitution to the IRS and to the state of Missouri. Cowden must also pay $29,581 to the Social Security Administration for Social Security disability payments that he was not entitled to receive.
Under federal statutes, Cowden is subject to a sentence of up to 25 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by IRS-Criminal Investigation, Social Security Administration – Office of Inspector General and the Missouri Department of Revenue.
Tampa Man Sentenced for Stealing Firearms from Lakeland Gun StoresRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Oscar Garcia Garcia (33, Tampa) to 30 months in federal prison for stealing firearms from a federal firearm licensee. He pleaded guilty on May 15, 2017.
According to court documents, on January 9, 2017, Garcia and his co-defendant, Jerry Nelson Reyes Torres, burglarized Rapture Guns and Knives in Lakeland and stole 58 firearms from a display case. On January 29, 2017, Garcia and Torres broke into Guns Galore in Lakeland and stole 46 firearms. On both occasions, the men arrived in a vehicle, entered the store by dismantling the lock on the front door, broke into display cases, used duffel bags to remove firearms, and then returned to their vehicle and fled the area.
In February 2017, law enforcement detained Garcia and another male after observing them smoking marijuana in a vehicle outside the residence of Garcia and Torres. The other individual told the officers that Garcia had given him two firearms to hold, and he consented to a search of his nearby residence. Officers recovered two of the firearms stolen from Rapture Guns and Knives from a suitcase found in that home.
On March 14, 2017, a superseding indictment was returned charging Jerry Nelson Reyes Torres with stealing firearms from a federal firearm licensee and possessing a firearm as a convicted felon. A warrant has been issued for his arrest and he is currently at large. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Polk County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Michael Sinacore.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl McCrary, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy on reducing violent crime in communities.
Two Texas Men Plead Guilty to Federal Hate Crime for Assaults Based on Victim’s Sexual OrientationRead the Press Release
WASHINGTON — Nigel Garrett, 21, and Cameron Ajiduah, 18, pleaded guilty today to assaulting men because of the victim’s sexual orientation, the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office of the Eastern District of Texas, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives’ Dallas Division announced.
According to the plea agreement signed by Garrett on January 19, 2017, defendants Garrett, Anthony Shelton and Chancler Encalade used Grindr, a social media dating platform for gay men, to arrange to meet the victim at the victim’s home. Upon entering the victim’s home, the defendants restrained the victim with tape, physically assaulted the victim, and made derogatory statements to the victim for being gay. The defendants brandished a firearm during the home invasion, and stole the victim’s property, including his motor vehicle.
Included in a separate plea agreement signed by Ajiduah on February 7, 2017, defendants Ajiduah, Garrett, and Shelton used the same scheme on a different victim, including restraining the victim and covering his eyes with tape, verbally berating him for his sexual orientaion, and physically assaulting him.
A federal grand jury previously returned an eighteen-count indictment against Ajiduah, Shelton, Garrett, and Chancler Encalade including charges of hate crimes, kidnappings, carjackings, and the use of firearms to commit violent crimes. The indictment also charged the defendants with conspiring to cause bodily injury because of the victim’s sexual orientation during four home invasions in Plano, Frisco, and Aubrey, Texas, between January 17 and February 7, 2017.
“The Justice Department will not tolerate hate crimes against any individual based on sexual orientation,” said Acting Assistant Attorney General John Gore. “Hate crimes are violent crimes, but also attack the fundamental principles of the United States. The Justice Department will continue to aggressively investigate and prosecute hate crimes.”
"Garrett and Ajiduah invaded homes, robbed and assaulted their victims, and particularly horrendous, targeted their victims based on the victim’s sexual orientation,” said Acting U.S. Attorney Brit Featherston. “In response to such a hate crime, let it be known that law enforcement will leave no stone unturned to catch and prosecute the likes of these criminals to the fullest extent of the law."
Garrett and Ajiduah face a maximum statutory penalty of life in prison and a $250,000 fine for their guilty plea for the hate crime charge.
The investigation is being conducted by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, the Plano Police Department, and the Frisco Police Department. The case is being prosecuted by Assistant U.S. Attorney Tracey Batson of the U.S. Attorney’s Office for the Eastern District of Texas and Trial Attorney Saeed Mody of the Civil Rights Division.
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Supai Man Sentenced to 24 Months for Sexually Abusing Minor and for Drug OffenseRead the Press Release
PHOENIX – Today, Xavier Justice Hamidreek, 24, of Supai, Ariz., was sentenced by U.S. Senior District Judge Roslyn O. Silver to 24 months in prison for sexually abusing an underage victim on the Havasupai Indian Reservation. Hamidreek was also sentenced to a 24-month concurrent term for possessing marijuana with intent to distribute it on the reservation. Upon release from prison, Hamidreek will be on supervised release for 20 years and will be required to register as a sex offender for the rest of his life.
Both Hamidreek and the underage victim are members of the Havasupai Indian Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs. The prosecution was handled by Christine D. Keller, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-16-08169-PCT-ROS
RELEASE NUMBER: 2017-079_Hamidreek
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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.
Seven Indicted on Federal Drug Conspiracy ChargesRead the Press Release
Abingdon, VIRGINIA – A federal grand jury sitting in the United States District Court for the Western District of Virginia in Abingdon have indicted seven individuals on federal drug conspiracy charges, Acting United States Attorney Rick A. Mountcastle announced.
The grand jury has charged Jeremy Rick Sturgill, 40, of Jonesville, Va., Tony Lynn Ketron, 27, of Church Hill, Tenn., Todd Houston Conyer, 29, of Pennington Gap, Va., Leslie Ann Clasby, 42, of Jonesville, Va., Jason Dale Moore, 36, of Jonesville, Va., William Benjamin Brewer, 35, of Jonesville, Va. and Kristina Karen Burton, 43, of Jonesville, Va.
The indictment, unsealed last week, charges each of the seven defendants with conspiracy to distribute and possess with the intent to distribute 50 grams or more of methamphetamine. Sturgill is also charged with three counts of possession with the intent to distribute methamphetamine, one count of maintaining a place for the purpose of manufacturing, distributing and using methamphetamine, two counts of possession of a firearm by a previously convicted felon and two counts of possession of a firearm in furtherance of a drug trafficking crime. Ketron is also charged with two counts of possession with the intent to distribute methamphetamine, two counts of possession of a firearm by a previously convicted felon and two counts of possession of a firearm in furtherance of a drug trafficking crime.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lee County Sheriff’s Office and the Southwest Virginia Drug Task Force. Special Assistant United States Attorney Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, prosecuted the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Second E-Commerce Company and Its Top Executive Agree to Plead Guilty to Price-Fixing Conspiracy in Customized Promotional Products IndustryRead the Press Release
HOUSTON - E-commerce company Custom Wristbands Inc. (aka Kulayful Silicone Bracelets, Kulayful.com, Speedywristbands.com, Promotionalbands.com, Wristbandcreation.com and 1inchbracelets.com) and its top executive Christopher Angeles have agreed to plead guilty for conspiring to fix prices for customized promotional products sold online to customers in the United States.
Acting U.S. Attorney Abe Martinez, Acting Assistant Attorney General Andrew Finch of the Department of Justice’s Antitrust Division and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Division made the announcement.
According to the felony charges filed today in the U.S. District Court for the Southern District of Texas in Houston, the conspirators attended meetings and communicated in person and online. The investigation has revealed that the conspirators used text messaging and other online messaging platforms to reach and implement their illegal agreements. Specifically, the defendants and their co-conspirators agreed, from as early as June 2014 until June 2016, to fix the prices of customized promotional products sold online, including wristbands. In addition to agreeing to plead guilty, Custom Wristbands has agreed to pay a $409,342 criminal fine.
“Price-fixing schemes like these that are designed to give individuals and businesses an illegal advantage will not be tolerated,” said Martinez. “We will continue to prosecute those who conspire to cause financial harm to consumers and businesses in the Internet marketplace.”
“Today’s charges are yet another step in the Division’s commitment to prosecuting collusion that affects the online marketplace,” said Finch. “The Division, along with our law enforcement colleagues, will continue to hold companies and executives accountable for their unlawful collusive practices.”
“The FBI works to ensure the integrity of our markets and eradicate price fixing and other unlawful business practices,” said Turner. “In open, competitive markets, customers get better service and lower prices.”
Angeles is charged with price fixing in violation of the Sherman Act, which carries a maximum sentence of 10 years in federal prison and a maximum fine of $1 million for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.Both defendants have agreed to cooperate with the Antitrust Division’s ongoing investigation. The plea agreements are subject to court approval.
This prosecution arose from an ongoing federal antitrust investigation into price fixing in the online promotional products industry, which is being conducted by the Antitrust Division’s Washington Criminal I Section with the assistance of the FBI’s Houston Field Office. Anyone with information on price fixing or other anticompetitive conduct in the customized promotional products industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Second E-Commerce Company and Its Top Executive Agree to Plead Guilty to Price-Fixing Conspiracy in Customized Promotional Products IndustryRead the Press Release
E-commerce company Custom Wristbands Inc. (aka Kulayful Silicone Bracelets, Kulayful.com, Speedywristbands.com, Promotionalbands.com, Wristbandcreation.com and 1inchbracelets.com) and its top executive Christopher Angeles have agreed to plead guilty for conspiring to fix prices for customized promotional products sold online to customers in the United States.
Acting Assistant Attorney General Andrew Finch of the Department of Justice’s Antitrust Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Division made the announcement.
According to the felony charges filed today in the U.S. District Court for the Southern District of Texas in Houston, the conspirators attended meetings and communicated in person and online. The investigation has revealed that the conspirators used text messaging and other online messaging platforms to reach and implement their illegal agreements. Specifically, the defendants and their co-conspirators agreed, from as early as June 2014 until June 2016, to fix the prices of customized promotional products sold online, including wristbands. In addition to agreeing to plead guilty, Custom Wristbands has agreed to pay a $409,342 criminal fine.
“Today’s charges are yet another step in the Division’s commitment to prosecuting collusion that affects the online marketplace,” said Acting Assistant Attorney General Andrew Finch of the Department of Justice’s Antitrust Division. “The Division, along with our law enforcement colleagues, will continue to hold companies and executives accountable for their unlawful collusive practices.”
“Price-fixing schemes like these that are designed to give individuals and businesses an illegal advantage will not be tolerated,” said Acting U.S. Attorney Martinez. “We will continue to prosecute those who conspire to cause financial harm to consumers and businesses in the Internet marketplace.”
“The FBI works to ensure the integrity of our markets and eradicate price fixing and other unlawful business practices,” said Special Agent in Charge Perrye K. Turner. “In open, competitive markets, customers get better service and lower prices.”
Angeles is charged with price fixing in violation of the Sherman Act, which carries a maximum sentence of 10 years in federal prison and a maximum fine of $1 million for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Both defendants have agreed to cooperate with the Antitrust Division’s ongoing investigation. The plea agreements are subject to court approval.
This prosecution arose from an ongoing federal antitrust investigation into price fixing in the online promotional products industry, which is being conducted by the Antitrust Division’s Washington Criminal I Section with the assistance of the FBI’s Houston Field Office. Anyone with information on price fixing or other anticompetitive conduct in the customized promotional products industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Ross County Man on Parole Charged with Attempted Coercion of Minor for Unlawful Sexual Activity, Distributing Child PornRead the Press Release
COLUMBUS, Ohio – John Charles Fortner, 39, of Chillicothe, was arrested yesterday afternoon when he met up with an undercover officer who he believed would connect him to children in order to engage in sexual conduct.
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 Division, Franklin County Sheriff Dallas Baldwin, Westerville Police Chief Joseph Morbitzer and other members of the FBI’s Child Exploitation Task Force and the Franklin County Internet Crimes Against Children (ICAC) announced the arrest.
Fortner was charged by criminal complaint with attempted coercion or enticement of a minor for unlawful sexual activity, distribution of child pornography and commission of a felony offense involving a minor while required to register as a sex offender.
According to the affidavit attached to the criminal complaint, Fortner responded to an undercover task force officer’s advertisement seeking “open minded” individuals interested in “taboo fetishes.” The officer’s persona was that of a mother with three children, ages 12, eight and five.
Fortner told the persona he had wanted to engage in sexual activities with kids for a while and persisted in asking what sexual activities he could engage in with the children, and suggested that he and the persona meet soon.
Via Kik messenger, Fortner also sent the undercover officer a webpage link to child pornography and a screen shot from a video of a seven-to-nine-year-old female being sexually abused.
Upon asking for further contacts of parents with children open to sexual intercourse, the undercover officer provided Fortner with a second undercover officer’s phone number. Fortner reached out to that second officer and requested to engage in sexual intercourse with the officer’s fictitious 13-year-old daughter.
Fortner was convicted in 2013 and sentenced to prison in Montgomery County, Texas for possession of child pornography. The previous year, he had been convicted and sentenced to prison in Belmont County, Ohio for importuning and unlawful sexual conduct with a minor, for which he is still currently on parole. Commission of a felony offense involving a minor while required to register as a sex offender calls for an additional 10 years in prison consecutive to any other sentence imposed.
Fortner is currently registered as a Tier III sex offender in Ross County.
In this case, due to the prior convictions of the defendant, attempted coercion or enticement of a minor for unlawful sexual activity is a crime punishable by a range of 10 years to life in prison and distribution of child pornography carries a potential sentence of 15 to 40 years in prison.
U.S. Attorney Glassman commended the cooperative investigation by the FBI’s Child Exploitation Task Force and the Franklin County ICAC, as well as Assistant United States Attorney Heather A. Hill, who is representing the United States in this case.
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Rockford Insurance Executive Charged with Defrauding More Than 100 ClientsRead the Press Release
ROCKFORD — A federal grand jury in Rockford today increased the number of fraud charges previously brought against TODD J. FENDLER, 41, of Rockford.
Fendler was initially charged on Feb. 28, 2017, with one count of mail fraud and one count of wire fraud. Today, the grand jury returned a superseding indictment charging Fendler with a total of 19 counts of wire fraud and one count of mail fraud, all in connection with a scheme to defraud former insurance clients of Fendler’s businesses. The superseding indictment alleges that Fendler defrauded over 100 clients of more than $800,000.
According to the superseding indictment, Fendler controlled and operated several insurance-related businesses in Rockford, including Surplus Market Solutions LLC, Northern Underwriting Managers Inc., and Northern Illinois Insurance Agency Inc. The superseding indictment alleges that Fendler obtained bank account information from businesses and individuals who had applied for insurance policies through Fendler’s companies, and used that information to withdraw funds from those businesses and individuals. Fendler did so, the superseding indictment states, by causing ACH and EFT withdrawals to be taken from the victims’ accounts without the victims’ knowledge or permission. The superseding indictment also alleges that Fendler created fictitious checks purportedly issued by the insurance applicants and deposited those fictitious checks into bank accounts he controlled.
Each count in the superseding indictment carries a maximum penalty of 20 years in prison, and a maximum fine of $250,000. If convicted, the Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines, as well as restitution.
Arraignment on the superseding indictment will be set for a later date before U.S. Magistrate Judge Iain D. Johnston in Rockford.
The superseding indictment was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and E. C. Woodson, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.
The government is represented by Assistant U.S. Attorney John G. McKenzie.
The public is reminded that a superseding indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving the defendant’s guilt beyond a reasonable doubt.
Rochester Man Pleads Guilty to Possessing Child PornographyRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that Cory Danis, 28, of Rochester, New Hampshire, waived indictment by a grand jury and pleaded guilty to one count of possessing child pornography. A sentencing hearing has been scheduled for December 4, 2017.
According to court documents and statements made during the change of plea hearing, in 2015 the FBI was contacted by a New York firm that was in the business of producing canvas prints from photographs. The firm had received a photograph of a minor in a sexually explicit pose as part of an order for a canvas print of the image. The firm provided the FBI with contact information for the customer. Further investigation by the FBI resulted in the identification of Danis as the customer who possessed the image that was sent to the New York business and who ordered the canvas print.
The Federal Bureau of Investigation conducted the investigation of this case with assistance from the Rochester Police Department. The case is being prosecuted by Assistant United States Attorney Helen White Fitzgibbon.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Roanoke Man Sentenced on Drug, Gun ChargesRead the Press Release
Roanoke, VIRGINIA – A Roanoke man was sentenced yesterday to federal prison after previously pleading guilty to drug and gun charges, Acting United States Attorney Rick A. Mountcastle announced.
De’Shae Antonio Webb, 27, of Roanoke, was sentenced yesterday to 46 months in federal prison. Webb previously pled guilty today to one count of distribution of cocaine and one count of possession of a firearm by a previously convicted felon.
According to evidence presented at a previous hearing, Webb sold cocaine to a police informant and was observed to be in possession of a firearm during the drug transaction.
The Roanoke City Police Department, the Roanoke HIDTA and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation of the case. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Pleasants County man admits to selling methamphetamineRead the Press Release
CLARKSBURG, WEST VIRGINIA – A St. Marys, West Virginia man pled guilty today to a methamphetamine distribution charge, Acting United States Attorney Betsy Steinfeld Jividen announced.
Roger Dale Doehring, age 54, pled guilty to one count of “Distribution of Methamphetamine - Aiding and Abetting.” Doehring admitted to selling methamphetamine in December 2016 in Pleasants County, West Virginia.
Doehring faces up to 20 years incarceration and a fine of up to $1,000,000. 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 Stephen D. Warner prosecuted the case on behalf of the government. The West Virginia State Police and the Pleasants County Sheriff’s Office investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Parkersburg woman pleads guilty to federal drug crimeRead the Press Release
CHARLESTON, W.Va. – A Parkersburg woman caught with heroin and methamphetamine in January 2017 pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Megan Kerns, 29, entered her guilty plea to possession with intent to distribute heroin and methamphetamine.
On January 12, 2017, agents with the Parkersburg Narcotics Task Force arrested Kerns in Parkersburg, and in a search incident to arrest, discovered in her possession approximately 30 grams of heroin, 50 grams of methamphetamine, and a Taurus .380 caliber pistol. She also had in her possession a box of sandwich bags, a set of digital scales, and two cell phones. As part of the plea agreement, Kerns further admitted to all the drug trafficking activity charged in the indictment, including that she distributed heroin and methamphetamine in Parkersburg during the months of March 2016 and January 2017.
Kerns faces up to 20 years in federal prison when she is sentenced on November 13, 2017.
The Parkersburg Narcotics Task Force conducted the investigation. Assistant United States Attorney Stephanie S. Taylor is handling the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
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 illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Parkersburg carjacker pleads guilty to federal crimeRead the Press Release
CHARLESTON, W.Va. – A Parkersburg man pleaded guilty today to a federal carjacking charge, announced United States Attorney Carol Casto. Marshall Leroy Saunders, 29, entered his guilty plea to a single-count indictment charging him with carjacking a taxi in Wood County.
Saunders was a suspect in an unrelated crime when police observed him entering a taxi in Vienna on October 6, 2016. Saunders admitted that when police attempted to pull the taxi over, he pointed a loaded pistol at the driver and ordered him out of the vehicle. Saunders then took control of the taxi and fled to Parkersburg, driving at speeds of up to 110 miles per hour, running a red light, and driving the taxi southbound in the northbound lane of Grand Central Avenue. Saunders abandoned the taxi in Parkersburg, then hid in a wooded area until he was apprehended by police.
Saunders faces up to 15 years in federal prison when he is sentenced on November 15, 2017.
The Vienna Police Department, the Parkersburg Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney James Matthew Davis is handling the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Omaha, Nebraska Man to Federal Prison for Drug Trafficking in IowaRead the Press Release
A man who conspired to distribute methamphetamine and distributed methamphetamine and cocaine was sentenced August 22, 2017, to 13 years in federal prison.
Jeremy Terrell, 28, from Omaha, Nebraska, received the prison term after an August 5, 2016, guilty plea to one count of conspiracy to distribute meth, one count of possession with intent to distribute meth and one count of possession with intent to distribute cocaine. Terrell had previously been convicted of distribution of crack cocaine in federal district court for the Northern District of Iowa in 2006 and had served a 46-month sentence.
At the guilty plea, Terrell admitted that from June 2015 through September 2015, he conspired to distribute methamphetamine in the Fort Dodge, Iowa, area. On August 14 and 28, 2015, law enforcement received information that Terrell was involved in drug trafficking conduct in Fort Dodge. On August 14, 2015, during Terrell’s attempted flight from law enforcement, officers observed he was attempting to destroy or conceal something as he ran from agents. After Terrell was captured, officers searched his travel path, recovered and seized approximately two ounces of cocaine. Terrell admitted he possessed this cocaine to distribute to other persons and had previously distributed several ounces of cocaine in Fort Dodge. Terrell also admitted receipt of ½ kilograms of cocaine by mail three other times, which he had distributed to several people in Fort Dodge. On August 28, 2015, law enforcement intercepted a mailed package intended for Terrell which contained three pounds of high-grade methamphetamine. On August 29, 2015, agents conducted a controlled delivery of the package containing the methamphetamine. After Terrell claimed the package, he again attempted to flee, but was captured by agents nearby with the methamphetamine. Terrell admitted receipt of the methamphetamine for distribution to other persons in Fort Dodge, Iowa.
Terrell was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Terrell was sentenced to 156 months’ imprisonment. A special assessment of $300 was imposed. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Terrell 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 Shawn S. Wehde and investigated by the Federal Bureau of Investigations, Fort Dodge Police Department, and Iowa Division of Criminalistics Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-3051. Follow us on Twitter @USAO_NDIA.
Norwalk Man Sentenced to 2 Years in Prison for Embezzling Money and Tax EvasionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARK W. ERRICO, 64, of Norwalk, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 24 months of imprisonment, followed by three years of supervised release, for embezzlement and tax evasion offenses.
According to court documents and statements made in court, for approximately 20 years, ERRICO worked for the owner of two companies located in Norwalk, handling the companies’ finances, including payroll, bank accounts, accounts payable and accounts receivable. Between approximately February 2011 and March 2014, ERRICO embezzled approximately $823,476.22 from the two companies. ERRICO transferred stolen funds from the companies’ accounts to pay his personal credit card debts, and also forged the signature of the companies’ owner on company checks and cashed them or made them payable to his own company and deposited them into his company’s business account.
For the 2011 through 2014 tax years, ERRICO attempted to evade paying federal taxes on $851,076.22 of unreported income, which resulted in a total tax loss of $265,326.
As an example, for tax year 2013, ERRICO filed a federal individual tax return for himself in which he stated his taxable income for 2013 was $31,200. The tax return failed to report approximately $536,434.50 in money he stole from the two Norwalk companies.
Judge Underhill ordered ERRICO to pay $649,346.09 in restitution to the two companies from which he stole money, and $265,326 in back taxes, plus penalties and interest, to the IRS.
On April 24, 2017, ERRICO pleaded guilty to one count of the interstate transportation of money obtained by fraud and one count of tax evasion.
ERRICO, who is released on bond, was ordered to report to prison on October 18, 2017.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division, U.S. Secret Service and Connecticut Financial Crimes Task Force. The case was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
Northern Cambria Man Sentenced for Converting Social Security Benefits to His Own UseRead the Press Release
JOHNSTOWN, Pa. - A resident of Northern Cambria, Pa., has been sentenced in federal court to three years’ probation, 225 hours of community service and a fine of $3,000, on his conviction of conversion of government funds, Acting United States Attorney Soo C. Song announced today.
United States District Judge Kim R. Gibson imposed the sentence on Bernard M. Dospoy, 67, of Northern Cambria, Pa.
According to information presented to the court, from in or around June 2005, to in or around October 2015, Dospoy did receive and convert falsely to his own use, a total of $207,592, which represents 176 separate Social Security Administration benefit payments made to him to which he was not entitled. He also agreed to pay restitution of $207,592 pursuant to a related Civil Settlement Agreement entered into by him and the United States.
Assistant U.S. Attorney John J. Valkovci, Jr. prosecuted this case on behalf of the government and Assistant U.S. Attorney Colin J. Callahan litigated the case on behalf of the Affirmative Civil Enforcement Section of the United States Attorney’s Office.
Ms. Song commended the Social Security Administration, Office of Inspector General, for the investigation that led to the successful prosecution of Dospoy.
New York Man Sentenced for Conspiring to Use Fake Credit Cards to Buy Gift CardsRead the Press Release
PITTSBURGH - A resident of Jamaica, NY, has been sentenced in federal court to 21 months imprisonment with credit for time served on any federal detainer, to be served consecutively to the sentence imposed by the Albany County Criminal Court at Case No. 16-21078; three years Supervised Release, and restitution in the amount of $28,106.27 on his conviction of conspiracy, Acting United States Attorney Soo C. Song announced today.
United States District Judge Cathy Bissoon imposed the sentence on Ronald Heggs, 27, of Jamaica, NY.
According to the information presented to the court, in April, 2015, Heggs and his co-conspirator used counterfeit credit cards which they used to purchase gift cards at K-Mart stores in Western Pennsylvania in April, 2015.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
The Acting United States Attorney Soo C. Song commended the U.S. Secret Service for the investigation leading to the successful prosecution of Ronald Heggs.
Monroe man sentenced to more than 10 years in prison for methamphetamine possessionRead the Press Release
MONROE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a man from Monroe was sentenced Monday to 121 months in prison for possessing methamphetamine for later sale.
Travis C. Mills, 35, of Monroe, was sentenced by U.S. District Judge Robert G. James on one count of possession of methamphetamine with intent to distribute. He was also sentenced to five years of supervised release. According to the May 19, 2016 guilty plea, law enforcement agents arrested Mills on October 7, 2015, as he was leaving his home. They found 115 grams of methamphetamine in a brown paper bag in the front seat of his car. His home was also searched, and 84 grams of methamphetamine were found.
The DEA and Ouachita Parish Metro Narcotics Task Force conducted the investigation. Assistant U.S. Attorney James G. Cowles Jr. prosecuted the case.
Mexican Man Gets 10 Years in Cocaine ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – A 31-year-old Mexican National who was residing in Illinois has been ordered to federal prison for assisting a South Texas drug trafficking organization, announced Acting U.S. Attorney Abe Martinez. Juan Carlos Gamez-Herrera pleaded guilty April 25, 2017.
Today, U.S. District Judge Hilda Tagle ordered him to prison for 120 months. Not a U.S. citizen, he is expected to face deportation proceedings following his sentence. At the hearing, Gamez-Herrera was found to be responsible for conspiring to possess with intent to distribute 41.2 kilograms of cocaine.
The investigation into Gamez-Herrera began following the seizure of $586,390 in U.S. currency near Corpus Christi on Aug. 11, 2016. Between Aug. 1 and Nov. 29, 2016, Gamez-Herrera assisted a South Texas drug trafficking organization. He would receive cocaine from South Texas and assist with the delivery and distribution of this cocaine to other persons in the Rockford, Illinois, area. Gamez-Herrera also worked with other known and unknown co-conspirators to transfer the proceeds from the sale of the organization’s cocaine in the Rockford area to South Texas and eventually into Mexico.
The Drug Enforcement Administration and IRS-Criminal Investigation conducted the investigation known as “Operation Black Taxi.” Assistant U.S. Attorney Kenneth Cusick is prosecuting the case.
Massachusetts Woman Sentenced to Five Years for Drug Distribution ConspiracyRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that Leslie Aberle, 33, of Salisbury, Massachusetts, was sentenced to five years in federal prison after pleading pleaded guilty to conspiring to distribute and to possess with the intent to distribute heroin and fentanyl.
According to court documents, on October 16, 2015, Aberle drove Mark Ross and Eve Tarmey to Lawrence, Massachusetts, in order to obtain a quantity of heroin. Ross obtained the drugs from a source in Lawrence while Aberle and Tarmey waited in Aberle’s car. After Ross acquired the drugs, the three returned to the Riviera Motel. Ross and Jazzmyn Rood also used a portion of the drugs and Ross provided a portion to Tarmey. The following morning, Tarmey was found dead in the motel room. The New Hampshire Medical Examiner later found that Ms. Tarmey died of acute fentanyl intoxication.
Aberle will be on supervised release for three years after she services her prison sentence.
New Hampshire has the third-highest rate of per capita drug overdose deaths in the United States. More than half of the drug overdose deaths in New Hampshire in 2015 were the result of fentanyl, either alone or in combination with other drugs.
In April 2016, the United States Attorney’s Office and the New Hampshire Attorney General’s Office announced the formation of an inter-office team of prosecutors who work together to prosecute individuals who cause opiate overdose deaths in New Hampshire. This prosecution, initiated before the creation of the joint team, is an example of the type of case the team reviews and monitors.
The case was investigated by the Rochester Police Department and the Drug Enforcement Administration assisted in the investigation. The case is being prosecuted by Assistant U.S. Attorney Donald Feith.
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Mason County couple pleads guilty to federal drug chargesRead the Press Release
HUNTINGTON, W.Va. – A Mason County couple pleaded guilty today to federal drug charges, announced United States Attorney Carol Casto. Eugene “Gene” Asbury, 69, and Natasha “Tess” Clonch, 32, both of Gallipolis Ferry, entered guilty pleas to conspiracy to distribute synthetic cannabinoids.
Asbury and Clonch admitted that from at least 2013 through February 2015, they sold $1.6 million worth of synthetic cannabinoids, also known as “Spice” and “Potpourri” from “The Scent Shop,” a store they operated on Huntington Road in Mason County. The synthetic cannabinoids contained controlled substances and controlled substance analogues, and were packaged under a variety of trade names, including Scooby Snax, Heaven’s Grass, Get Real, Black Diamond, Mr. Nice Guy, and Mad Hatter. The couple further admitted that they laundered the proceeds of the sales by using cash or money orders to purchase additional synthetic cannabinoids, as well as vehicles and real property. They also admitted to laundering the proceeds by co-mingling the money through the bank accounts of Natasha Clonch, dba “The Scent Shop” and Asbury Inc., under which Asbury operated several businesses, including the Route 35 Adult Video and Bookstore in Putnam County.
Under the terms of the plea agreement, Asbury and Clonch agreed to the forfeiture of $1.6 million in assets obtained by the sale of synthetic cannabinoids, including more than $189,000, a 2015 GMC Yukon, a 1952 Oldsmobile, a fully-restored 1959 Chevrolet Bel Air, and real property located in Glenwood, West Virginia.
Asbury and Clonch each face up to 20 years in federal prison when they are sentenced on November 27, 2017.
The investigation was conducted by the West Virginia State Police and the United States Postal Inspection Service. Assistant United States Attorney Joshua Hanks is in charge of the prosecution. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
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 illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Manhattan U.S. Attorney’s Office Closes Federal Criminal Investigation into the Death of Mohamed BahRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that there is insufficient evidence to pursue federal criminal charges in connection with the fatal shooting of Mohamed Bah. Mr. Bah was killed during an encounter with police officers from the New York City Police Department (“NYPD”) on September 25, 2012. The Acting U.S. Attorney met today with Mr. Bah’s family and their counsel to inform them of this decision.
The New York County District Attorney’s Office investigated Mr. Bah’s fatal shooting, and on November 26, 2013, a Manhattan grand jury voted not to bring criminal charges against any officer involved in the shooting of Mr. Bah, finding that the use of deadly force was not unlawful. Nevertheless, after following the progress of the civil litigation relating to Mr. Bah’s death, receiving documents from Mr. Bah’s family’s counsel in October 2015, and the unsealing of a ballistics report, this Office began to conduct an independent review into the death to determine whether a federal civil rights crime could be proven.
As Mr. Kim informed Mr. Bah’s family today, the only determination the Office made was whether a federal crime could be proven under the standard applicable to criminal cases, which is proof beyond a reasonable doubt. The Office did not reach any conclusions on any other issue, nor did it evaluate the officers’ actions under any other standard. The Office expresses no view regarding any claims made against any party under the standard applicable to civil cases, which is proof by a preponderance of the evidence.
After conducting a review of the evidence, including physical and documentary evidence, as well as grand jury and civil deposition testimony, this Office has determined that there is insufficient evidence to meet the high burden of proof required for a federal criminal civil rights prosecution. To prove a violation of the federal criminal civil rights statute, prosecutors must establish, beyond a reasonable doubt, that a law enforcement officer willfully deprived an individual of a constitutional right, meaning that the officer acted with the deliberate and specific intent to do something the law forbids. This is the highest standard of intent imposed by law, and is different from and higher than the intent standard under the relevant state statutes. Neither accident, mistake, fear, negligence, nor bad judgment is sufficient to establish a federal criminal civil rights violation.
In reaching this determination, the Office considered, among other things, testimony from the only eye witnesses to the events (law enforcement officers) that Mr. Bah was holding a knife and lunged at the officers, the fact that vests worn by officers at the scene have slashes consistent with penetration by a knife, and the lack of video evidence of the incident. The Office also considered the testimony of officers present that non-lethal force, including Tasers, was used before lethal force was deployed, and that shots were fired virtually simultaneously only after non-lethal force was used. Finally, the Office considered the autopsy report prepared the day after the shooting and conducted an independent ballistics analysis. After reviewing such evidence, the Office made the determination that it could not prove beyond a reasonable doubt that any officer willfully violated Mr. Bah’s constitutional rights.
Accordingly, this Office’s investigation into Mr. Bah’s death has been closed.
Mr. Kim expressed his deep sympathy to the family of Mr. Bah for their tragic loss.
Man Sentenced for Possessing a Firearm After Federal Felony Conviction and Violating the Terms of his Supervised ReleaseRead the Press Release
RALEIGH –United States Attorney John Stuart Bruce announced that today in federal court, Chief United States District Judge James C. Dever III sentenced KEVIN KHAALIQ BEAMON, 28, of Fayetteville, North Carolina, to 71 months imprisonment followed by 3 years of supervised release for Possession of a Firearm as a Convicted Felon and 19 months imprisonment for violating the terms of his federal supervised release, which will run consecutively.
On May 22, 2017, BEAMON pleaded guilty to the firearm charge. The evidence established that on May 1, 2016, BEAMON and a female passenger were on their way home from buying marijuana. BEAMON was driving and received a phone call that upset him and he argued with the female. As they approached the intersection outside the McDonalds at 6779 Raeford Road in Fayetteville, North Carolina, BEAMON pulled out a silver revolver and angrily fired it. The bullet struck the middle console of the car. BEAMON also pointed the firearm at the female and threatened to shoot her. The female jumped out of the car, and BEAMON fled the scene.
Concerned bystanders called 911 and officers with the Fayetteville Police Department responded to the scene and to an address associated with BEAMON. Officers observed the car BEAMON had been driving during the incident and saw the bullet hole in the console. Officers arrested BEAMON and quickly located the firearm he had illegally possessed and fired.
BEAMON had been on federal supervised release at the time of this innicident for a 2014 federal conviction of Conspiracy to Distribute and Possess with Intent to Distribute a Quantity of Heron.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Fayetteville Police Department conducted the investigation of this case. Assistant United States Attorney Daniel P. Bubar is prosecuting this case on behalf of the government
Man Indicted for Robbing Bank in RockfordRead the Press Release
ROCKFORD — A Rockford man was indicted today by a federal grand jury on a charge of armed bank robbery.
DEMONTRION D. PHILLIPS, 23, was charged with robbing Alpine Bank, located at 2642 Charles St., in Rockford, on July 17, 2017. The indictment alleges that Phillips used a BB gun to commit the robbery and that during the robbery he obtained $28,309 from bank employees.
A federal arrest warrant has been issued for Phillips, who is currently in custody in the Winnebago County Jail on unrelated charges. Arraignment in federal court in Rockford has not yet been scheduled.
Armed bank robbery carries a maximum penalty of 25 years in prison, to be followed by up to five years of supervised release, and a maximum fine of up to $250,000. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines, and the defendant would be required to pay restitution to Alpine Bank. The public is reminded that an indictment contains only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The indictment was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Dan O’Shea, Chief of the Rockford Police Department.
The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.
Logan County man pleads guilty to federal gun crimeRead the Press Release
CHARLESTON, W.Va. – A Logan County man who possessed a sawed-off shotgun in October 2016 pleaded guilty today to a federal gun charge, announced United States Attorney Carol Casto. Brian Kevin Sigmon, II, 34, of Henlawson, entered his guilty plea to possession of an unregistered firearm.
On October 22, 2016, Sigmon possessed a shotgun that had been sawed-off, with a barrel length of less than 18 inches and an overall length of less than 26 inches. The sawed-off shotgun Sigmon possessed was not registered on the National Firearms Registration and Transfer Record as required by federal law.
Sigmon faces up to 10 years in federal prison when he is sentenced on November 29, 2017.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney Eric Bacaj is handling the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Las Cruces Man Sentenced to Prison for Role in Doña Ana County Cocaine Trafficking RingRead the Press Release
ALBUQUERQUE – Juan Velasquez, 27, of Las Cruces, N.M., was sentenced today in federal court in Las Cruces, N.M., to 37 months in prison for participating in a conspiracy to distribute cocaine in Doña Ana County, N.M. Velasquez will be on supervised release for three years after completing his prison sentence.
Velasquez was arrested in Sept. 2016, on an indictment alleging cocaine trafficking charges. The 18-count indictment was the result of a six-month investigation, which was designated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) program, targeting a drug trafficking organization allegedly led by Joel Ibarra-Torres, 47, a Mexican national, that distributed cocaine in Doña Ana County.
The indictment charged Ibarra-Torres and seven co-conspirators, including several members of Ibarra-Torres’ family, with participating in a cocaine trafficking conspiracy that existed from at least March 2016 until Sept. 2016. The indictment also charged that Ibarra-Torres and two of his co-defendants participated in an international money laundering conspiracy. It also charged certain of the defendants with substantive cocaine trafficking offenses and with using telephones to facilitate their drug trafficking activities. The indictment included forfeiture provisions that seek the forfeiture of at least $31,620, constituting proceeds of the defendants’ criminal activities, to the United States.
On Dec. 22, 2016, Velasquez pled guilty to conspiracy and three counts of distribution of cocaine. In entering the guilty plea, Velasquez admitted that from March 31, 2016 through Sept. 20, 2016, he conspired with his co-defendants to distribute cocaine. In his plea agreement, Velasquez admitted that on July 14, 2016, he directed a courier to pick up five ¼ kilogram packages of cocaine from a co-conspirator in El Paso, Tex., and delivered the cocaine to him in Las Cruces. On July 25, 2016, Velasquez gave the co-conspirator money owed to the source of supply in Mexico for cocaine. On Aug. 25, 2016, Velasquez directed a courier to pick up six ¼ kilogram packages of cocaine in El Paso, Tex., and delivered the cocaine to him in Las Cruces. Velasquez further admitted that he distributed approximately 250 grams of cocaine to an individual working with law enforcement on June 8, 2016, July 14, 2016, and Aug. 25, 2016. The plea agreement stipulates that Velasquez was responsible for distributing approximately 2 to 3.5 kilograms of cocaine.
Seven of Velasquez’s co-defendants have entered guilty pleas and four have been sentenced. Noemi Ibarra, 24, of Las Cruces, pled guilty on April 24, 2017, and Alejandro Chavez, 28, also of Las Cruces pled guilty on July 24, 2017; both are pending sentencing hearings. Joel Ibarra, Jr., 22, of Sunland Park, N.M., pled guilty on Dec. 20, 2016, and was sentenced on April 26, 2017. Denise Duarte, 25, also of Sunland Park, pled guilty on Dec. 23, 2016, and was sentenced on May 1, 2017. Gabriela Castro, 25, a Mexican national pled guilty on Dec. 19, 2016, and was sentenced on April 24, 2017. Rene Cruz-Vargas, 41, a Mexican national, pled guilty on June 22, 2017, and was sentenced on Aug. 15, 2017.
Ibarra-Torres has yet to be arrested and is considered a fugitive. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
The investigation leading to the indictment was conducted by the Las Cruces office of the DEA, the U.S. Border Patrol and the FBI. The case is being prosecuted by Assistant U.S. Attorneys Terri J. Abernathy and Sarah M. Davenport of the U.S. Attorney’s Las Cruces Branch office.
Lakewood Man Charged with Social Security FraudRead the Press Release
ROCKFORD — A Lakewood man was indicted today by a federal grand jury on fraud charges.
VALENTINO VALERIU AGIGNOAE, 50, was charged with two counts of wire fraud, one count of stealing Social Security disability insurance funds that he and his dependents were not entitled to, and four counts of making false statements or concealing facts with the intent to fraudulently secure Social Security benefit payments.
As alleged in the indictment, Agignoae began receiving Social Security disability insurance benefits in 1996. The benefits were paid via direct deposit to Agignoae’s bank account. The indictment alleges that from approximately January 2007 through April 2015, Agignoae schemed to defraud and to obtain money from the U.S. Social Security Administration by failing to notify the Social Security Administration that he was managing Valentino’s Club Café in Chicago, even though he knew that he was required to do so. It is also alleged that Agignoae’s misrepresentations and concealment of facts caused the U.S. Government, through the Social Security Administration, to suffer losses of approximately $157,503, in the form of monthly disability insurance payments to Agignoae and his dependents, to which Agignoae was not entitled.
Each count of wire fraud carries a maximum potential penalty of up to 20 years in prison; stealing disability insurance funds carries a maximum potential penalty of up to ten years in prison; and each count of making a false statement or concealing facts for use by the Social Security Administration in determining rights to Social Security disability insurance benefits payments carries a maximum potential penalty of up to five years in prison. Each count also carries a fine of up to $250,000, and full restitution. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
Agignoae will appear for arraignment in Rockford before U.S. Magistrate Judge Iain D. Johnston on a date yet to be determined.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The indictment was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and Tracey Thanos, Special Agent-in-Charge of the Chicago Office of the Social Security Administration – Office of Inspector General.
The government is represented by Assistant U.S. Attorney Michael D. Love.
Jury Convicts Lawrence Kidnapping Crew LeaderRead the Press Release
BOSTON – After deliberating for less than an hour, a federal jury in Boston convicted the leader of a kidnapping crew whose organization was involved in violent abductions including burning victims with hot irons.
Danny Veloz, a/k/a “Maestro,” 40, of Lawrence, was convicted of conspiracy to commit kidnapping following a two-week trial. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Nov. 17, 2017.
Veloz the leader of a violent, sophisticated kidnapping crew in Lawrence, was arrested on Sept. 28, 2012, following a wide-ranging investigation that targeted kidnapping and home invasion crews operating in Lawrence. The majority of these kidnappings were carried out by organized, armed, violent crews often referred to as Joloperros (loosely translated as “Stick-up Guys”).
Veloz’s crew consisted of four other Lawrence men, Jose Guzman, a/k/a “Cano”; Gadiel Romero, a/k/a “TC”; Jose Matos, a/k/a “Boyca”; and Luis Reynoso, a/k/a “Prieto”; as well as Henry Maldonado, of Manchester, N.H.; and Thomas Wallace of Raynham, N.H.
On July 23, 2012, armed with firearms and wearing t-shirts with the word “police” on them, the crew kidnapped two men at gunpoint on Allston Street in Lawrence. The victims were transported to Manchester, N.H., and held overnight – during which time one was burned with a hot iron – before being rescued by law enforcement. The July 23, 2012, kidnapping was one of several kidnappings or attempted kidnappings committed by Veloz’s crew in 2012.
A search of Veloz’s home resulted in the seizure of two laptop computers containing information about GPS tracking devices used to commit kidnappings, as well as cell phones used by Veloz to communicate with his associates. During trial, several individuals testified that in addition to the July 23, 2012, kidnapping, Veloz and his crew also attempted kidnappings on May 8, 2012, and July 8, 2012.
Since the investigation began in 2012, more than 20 people have been convicted of either kidnapping-related offenses or being associated with members of Lawrence-based kidnapping or home invasion crews.
Romero and Matos were sentenced to 23 years and 12 years in prison, respectively, and Guzman, Maldonado, Wallace and Reynoso are scheduled to be sentenced in October 2017.
The charge of conspiracy to commit kidnapping provides for a sentence of up to life in prison, five years of supervised release, and a fine of $250,000. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Essex County District Attorney Jonathan Blodgett; Lawrence Police Chief James X. Fitzpatrick; Manchester (N.H.) Police Chief Nick Willard; and Essex County Sheriff Kevin F. Coppinger made the announcement today. Assistant U.S. Attorney Christopher Pohl of Weinreb’s Organized Crime and Gang Task Force prosecuted the case.
Highline Medical Center Agrees to Settle Civil Rights ClaimsRead the Press Release
Highline Medical Center, in Burien, Washington, a division of CHI Franciscan Health, reached a settlement today to resolve alleged violations of the Americans with Disabilities Act (“ADA”), announced U.S. Attorney Annette L. Hayes. The U.S. Attorney’s Office for the Western District of Washington began the investigation after a complainant, who is deaf, alleged that the hospital failed to provide him and his wife, who is also deaf, with sign-language interpreters so that both could understand the information provided by medical professionals following the complainant’s spinal surgery. Highline Hospital has agreed to pay the patient $25,000, and his wife $10,000. In addition, Highline will pay $10,000 to the United States in lieu of a civil penalty, and will implement a compliance plan to ensure full compliance with ADA requirements in the future.
“There is very little as important in the hospital than being able to communicate effectively with treatment providers,” said U.S. Attorney Annette L. Hayes. “The Americans with Disability Act ensures that at critical junctures in medical care those who need it – including those who are deaf or hard of hearing – have access to services such as ASL translators. The agreed compliance plan that is part of this settlement ensures that the U. S. Attorney’s Office can monitor continued compliance by Highline Medical Center for an extended period of time.”
According to the settlement, the patient uses American Sign Language (ASL) as his primary means of communication. He was a patient at Highline for a surgical procedure known as a cervical laminectomy between January 28, 2014, and January 31, 2014. The patient had requested that the hospital provide an ASL interpreter in advance of the surgery. However, at critical junctures in his care, such as the period immediately following surgery, and when medical staff provided discharge instructions, no interpreter was provided. The patient’s wife is also deaf and the lack of an interpreter meant she too was not able to effectively communicate with medical staff about her husband’s condition, including the extent of spinal damage that was discovered during surgery, the patient’s level of pain, information about post-operative care, and potential side effects from medication.
Under the terms of the settlement, and pursuant to the agreed compliance plan, Highline Medical Center will appoint an Assistive Device Point Person to ensure that appropriate aids, including Qualified ASL Interpreters, are provided free of charge to patients who need them. The medical center will maintain a log of all patients requesting interpretive services. There will be a grievance resolution system for disputes over services to patients who are deaf or hard of hearing. The hospital will also take steps to publicize its commitment to providing ASL interpreters for deaf and hard of hearing patients. Under the terms of the settlement, the U.S. Attorney’s Office is authorized to review Highline Medical Center’s compliance with the plan for three years.
This case is part of the Department of Justice’s Barrier-Free Health Care Initiative, which seeks to enforce the ADA’s prohibition of discrimination against disabled individuals by health care providers, including hospitals. Through the Barrier-Free Health Care Initiative, U.S. Attorneys’ offices across the nation and the Department of Justice’s Civil Rights Division target their enforcement efforts on this critical area for individuals with disabilities—access to medical services and facilities. The Barrier-Free Health Care Initiative is a multi-phase initiative that includes effective communication for people who are deaf or have hearing loss, physical access to medical care for people with mobility disabilities, and equal access to treatment for people who have HIV/AIDS.
The Department of Justice has a number of publications available to assist entities in complying with the ADA, including a Business Brief on Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings, at www.ada.gov/hospcombr.htm. For more information on the ADA and to access these publications, visit www.ada.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TTY). ADA complaints may be filed by email to [email protected] .
The case was handled by Assistant United States Attorney Christina Fogg in collaboration with Disability Rights Section of the Civil Rights Division of the United States Department of Justice.
German Ship Management Company and Corporate Vessel Owner Indicted for Falsification of Pollution RecordsRead the Press Release
A federal grand jury in Portland, Maine, returned a nine-count indictment today charging MST Mineralien Schiffarht Spedition Und Transport GmbH (MST) and Reederei MS “Marguerita” GmbH & Co. Geschlossene Investment KG (Reederei) with failing to keep accurate pollution control records and falsifying records, the Justice Department announced.
The charges stem from the falsification of records in 2016 and 2017 designed to cover up overboard discharges of oily mixtures and machinery space bilge water from the Liberian-flagged cargo vessel, M/V Marguerita. On at least eight occasions between September 2016 and June 2016, the M/V Marguerita entered United States waters and ports with a false and misleading Oil Record Book available for inspection by the U.S. Coast Guard. The Oil Record Book failed to accurately record transfers and discharges of oily wastewater on the vessel.
The vessel’s management company, MST Mineralien Schiffarht Spedition Und Transport, and the vessel’s owner, Reederei MS “Marguerita,” both of Germany, are charged with failing to maintain an accurate oil record book as required by the Act to Prevent Pollution from Ships, a U.S. law which implements the International Convention for the Prevention of Pollution from Ships, commonly known as MARPOL. The companies were also charged with falsification of records with the intent to impede, obstruct, or influence inspections and examinations of the M/V Marguerita by the U.S. Coast Guard.
An indictment is merely an accusation and defendants are presumed innocent unless and until proven guilty in a court of law.
The case was investigated by the Coast Guard Investigative Service. The case is being prosecuted by John Cashman and Shane Waller of the Justice Department’s Environmental Crimes Section.
Geneseo Man Pleads Guilty to Stolen Valor OffensesRead the Press Release
ROCK ISLAND, Ill. – William R. Jones, 67, of Geneseo, Ill., entered pleas of guilty today to theft of government funds and making false statements about his military service to the U.S. Department of Veterans Affairs, announced Patrick D. Hansen, Acting U.S. Attorney for the Central District of Illinois. Sentencing has been scheduled for Dec. 12, 2017.
During court hearings and according to court documents, the government established that Jones entered service in the armed forces of the United States in 1971 via the Air National Guard. Thereafter, Jones served in various Reserve or National Guard components. Jones retired from the military in 2002 as a Lieutenant Colonel. At no time did Jones ever serve in the Southeast Asia or Republic of Vietnam (RVN) theater of combat operations or in any other theater of combat operations.
In 2003, after retirement, Jones sought disability benefits, based on claims in statements to the VA that he was suffering from post-traumatic stress disorder attendant to combat service in the RVN. Jones falsely claimed that he had been a Special Operations air crewman on an AC-130 Spectre gunship and was shot down and wounded. Jones claimed that he had been awarded a Bronze Star Medal with V for Valor and a Purple Heart for RVN service. The VA denied the claims after checking Jones’ military service records and determining that he was never in RVN.
Jones, however, continued to press for claims for disability based on combat service, submitting a false DD-214 to the VA and causing the American Legion and public officials to petition or write the VA in support of the defendant based on Jones’s false representations. As a result of these false representations, Jones received $71,472 from the VA for combat-related disability.
On Oct. 31, 2013, Jones caused the American Legion to submit to the VA on his behalf a new claim with supporting documents that included a copy of an article from the Geneseo, Ill., newspaper. The article was based on false information provided by Jones about his purported combat service, including copies of several false certificates for combat awards, a false certificate from MACV SOG (Vietnam Special Operations Group) attesting to Jones’s purported SOG service, a false certificate representing that “Staff Sergeant Jones” had received an Enlisted Aircrew badge in November 1971, and a letter dated 2008 from then-U.S. Senator Barack Obama stating that the defendant was a RVN veteran.
In addition, on July 16, 2013, Jones submitted to the office of U.S. Senator Richard J. Durbin a “Privacy Act Release” form that contained false information indicating that Jones had served in combat in Vietnam in 1972; that Jones had been assigned to Special Operations in Vietnam; and, that Jones was shot down in enemy territory but rescued by U.S. Marines three weeks later. In fact, as Jones well knew, he never served in Vietnam; was never assigned to Special Operations in Vietnam, and, was never shot down and rescued by U.S. Marines. As a result of these false statements to Senator Durbin, the Senator conveyed the false statements to the VA in support of the defendant’s claim for disability benefits.
The statutory maximum penalty for theft of government funds (one count) is 10 years in prison and a fine of up to $250,000. The maximum penalty for making false statements is five years in prison and a fine of up to $250,000. Jones also may be ordered to pay restitution to the VA.
The case is being prosecuted by Assistant U.S. Attorney Don Allegro. The charges are the result of an investigation by the Office of the Inspector General of the U.S. Department of Veterans Affairs.
Garfield Heights man sentenced to 11 years in prison for pointing a gun at the head of a teller during bank robberyRead the Press Release
A Garfield Heights man was sentenced to more than 11 years in prison for using a firearm to rob the Key Bank on Turney Road, said Justin E. Herdman, U.S. Attorney for the Northern District of Ohio, and FBI Special Agent in Charge Stephen D. Anthony.
Levert A. Bates, 54, was sentenced to 135 months in federal prison He previously pleaded guilty to one count of armed bank robbery and one count of using and carrying a firearm during and in relation to a crime of violence.
Bates and Marc A. Montgomery robbed a Key Bank in Garfield Heights on November 30, 2016. robbers stole approximately $55,376 from the bank and pointed a gun at the head of a teller during the robbery, according to court documents and statements.
“The defendant’s actions put people’s lives in danger and traumatized the victims,” Herdman said. “Sending this defendant back to prison helps make our commuity safer.”
"The actions of these two individuals brought great fear to the bank employees and customers that day,” Anthony said. “Law enforcement will continue to work tirelessly to identify individuals that choose to commit such violent actions and ensure they are held accountable.”
Montgomery was previously convicted for his role in the robbery and is scheduled to be sentenced Aug. 28.
Assistant U.S. Attorney Megan R. Miller is prosecuting the case following an investigation by the Federal Bureau of Investigation and the Garfield Heights Police Department.