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Wednesday 5 July 2017
Columbia Man Indicted for Enticing a Minor for SexRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was indicted by a federal grand jury today for attempting to entice an undercover officer, whom he believed was a 14-year-old girl, to meet for illicit sex.
Darren Wade Lasley, 28, of Columbia, was charged in an indictment returned by a federal grand jury in Jefferson City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Lasley on June 22, 2017.
The federal indictment alleges that Lasley attempted to entice a minor to engage in illicit sexual activity between June 14 and June 21, 2017.
According to an affidavit that was filed in support of the original criminal complaint, a detective with the Boone County Sheriff’s Department posted an undercover online advertisement in an attempt to seek out potential sexual predators. On June 14, 2017, the decoy began receiving e-mails from Lasley. The decoy told Lasley she was 14 years old and they exchanged photographs.
In e-mail exchanges over the course of the next several days, the affidavit says, Lasley described his plans for a sexual encounter with the decoy. Lasley allegedly proposed visiting the decoy’s residence while her mother was at work or out of town. On June 21, 2017, Lasley asked the decoy if she could sneak out of her house to meet him for a sexual rendezvous. When Lasley arrived at the arranged meeting location, he was arrested.
Larson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt.
Buffalo Man Pleads Guilty to Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Gabriel Rodriguez, 39, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, 100 kilograms or more of marijuana before Senior U.S. District Judge William M. Skretny. The charges carry a mandatory minimum sentence of 5 years in prison, a maximum sentence of 40 years, and a fine of $5,000,000.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that between 2004 and July 12, 2012, the defendant conspired with others to distribute large quantities of marijuana in the Buffalo area. In April 2009, codefendants Jordan Ali and Shane Grafman began assisting one another in their drug distribution businesses. The defendants obtained the narcotics in the State of Arizona, and then utilized several methods to send the marijuana and cocaine to the Buffalo area, including cars, trucks, shipping crates and United States Postal Service parcels. Grafman also utilized private jets to travel from Arizona to Buffalo to pick up his drug proceeds. During this time, Rodriguez obtained more than 2,000 from Grafman and Ali for distribution in the Buffalo area.
During the investigation, law enforcement officers seized approximately $1,000,000 in United States currency, including $671,385 from a hidden compartment within a Honda Ridgeline driven by Grafman.
A total of six defendants were arrested and convicted in this case.
The plea is the culmination of investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge James C. Spero; Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge James D. Robnett; United States Postal Service Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam Cohen; Buffalo Police Department, under the direction of Commissioner Daniel Derenda; Erie County Sheriff's Department, under the direction of Sheriff Tim Howard; Niagara Frontier Transit Authority, under the direction of Chief George Gast; Tempe, Arizona Police Department; Apache County, Arizona Sheriff's Department; and the Oklahoma State Police.
Sentencing is scheduled for October 18, 2017, at 10:00 a.m. before Judge Skretny.
Buffalo Man Pleads Guilty to Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Robert Hall, 41, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine before U.S. District Judge Richard J. Arcara. The charge carries a mandatory minimum 10 years in prison, a maximum of life and a $10,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that on May 13, 2016, law enforcement officers seized three packages containing cocaine that were shipped from Texas to Buffalo to various recipients. The cocaine was hidden inside air purifiers. Officers seized two of the packages before they were delivered and set-up controlled deliveries to addresses on Tyler and Custer Streets in Buffalo. The three packages contained a total of five kilograms of cocaine. Hall paid the recipients of the packages in money or crack cocaine so they would receive the packages for Hall and co-defendant Clarence Adams. The charges against Adams remain pending. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, the Niagara Frontier Transportation Authority Police, under the direction of Chief George Gast, and the Cheektowaga Police Department, under the direction of Chief David Zack.
Sentencing is scheduled for October 13, 2017, at 1:00 p.m. before Judge Arcara.
Brookfield Man Pleads Guilty to Manufacturing Child PornographyRead the Press Release
CONCORD, N.H. – Andrew McKenzie, 28, of Brookfield, New Hampshire, pleaded guilty today to one count of manufacturing child pornography, announced Acting United States Attorney John J. Farley.
According to documents on file and statements made during the change of plea hearing, in October 2016 the defendant began an instant messenger conversation through Kik with an undercover agent of the Federal Bureau of Investigation. The defendant agreed to send the undercover agent sexually explicit photographs of a minor child. The investigation determined that the images sent by the defendant were of a minor child known to the defendant.
The defendant has agreed to serve a sentence of 262 months in federal prison under the terms of a plea agreement with the United States to be followed by five years of supervised release. If the Court decides to reject the agreement, the defendant will have the right to withdraw his guilty plea. The sentencing hearing is scheduled for October 19, 2017.
The case was investigated by the Federal Bureau of Investigation and the Rochester Police Department. The case was prosecuted by Assistant United States Attorneys Helen White Fitzgibbon and Donald Feith.
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Boardman man sentenced to nearly five years in prison for defrauding investors out of nearly $1.2 millionRead the Press Release
A Boardman man was sentenced to nearly five years in prison for defrauding investors out of nearly $1.2 million and related tax violations, said Acting U.S. Attorney David A. Sierleja, Stephen D. Anthony, Special Agent in Charge of the FBI and Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office
George N. Krinos was sentenced to 57 months in prison. U.S. District Judge Dan Aaron Polster ordered Krinos to pay $1.1. million in restitution to the victims and $177,000 in restitution to the IRS.
Krinos previously pleaded guilty to a one count each of engaging in a securities fraud scheme and willfully failing to collect and pay taxes for his employees.
Krinos, through his various companies known as Krinos Holdings, engaged in a securities fraud scheme in which he sold through false and deceptive practices securities to numerous victims in Ohio. These securities consisted of debenture notes and private placement memoranda that were not properly registered with the Securities and Exchange Commission. Because the securities were not registered with and therefore subject to greater scrutiny by the SEC, Krinos was limited to selling them to “accredited investors” who were generally individuals having a net worth in excess of $1 million or who met specific, high-dollar income thresholds, according to court documents.
From 2011 through 2014, Krinos sold these unregistered securities to at least 10 investors in Ohio, causing them financial losses. Krinos sold the securities under the pretense that his investors’ funds would be used for legitimate business purposes, including to provide venture capital to various client companies seeking funding from Krinos Holdings. Rather than use these funds for their intended uses, Krinos instead used the money for personal expenses and to engage in unauthorized foreign currency transactions. To entice his victims, Krinos made promises that their initial investments of $.10 per share would rise in value to as much as $5 or $6 per share. Krinos also falsely told investors and others that he managed approximately $600 million in an investment account when he in fact had only $5 in the account, according to court documents.
Krinos submitted falsified letters and statements to reflect high balances in his accounts. Krinos also falsely told investors that they were making high returns on their investments and that his relationships with the client companies was on good terms. Contrary to his representations to his investors, Krinos actually used their funds on for his own personal use at restaurants, bars, casinos, adult entertainment clubs and hotels. Rather than disclose these personal expenses, Krinos later characterized them as “sales and marketing” costs in a budget given to his shareholders at a meeting in Boardman, in 2013, according to court documents.
Krinos also improperly withheld taxes, including federal income taxes and Federal Insurance Contribution Act taxes from his employees without paying over those taxes to the IRS. Over the course of approximately two years, Krinos improperly withheld and kept approximately $91,495 of his employees’ tax contributions from the IRS, according to court documents.
“This defendant lied to investors as means to funding a lavish lifestyle for himself,” Sierleja said.
“George Krinos left several investors in financial peril and created a recipe for devastation that could last a lifetime,” Korner said. "Additionally, employment tax fraud results in the loss of tax revenue to the United States government and the loss of future Social Security or Medicare benefits for the employees."
This case is being prosecuted by Assistant U.S. Attorneys Om Kakani and Robert J. Patton, following an investigation by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations.
Attorney General Jeff Sessions Issues Statement on the Murder of NYPD Officer Miosotis FamiliaRead the Press Release
Attorney General Jeff Sessions today issued the following statement on the murder of NYPD Officer Miosotis Familia:
“Officer Miosotis Familia proudly wore the badge for 12 years, serving her community and keeping the people of New York City safe,” Attorney General Sessions said. “She was doing her duty, on patrol in the Bronx, when she was unjustly targeted and murdered in a cowardly, unprovoked attack. She will be remembered for her years of service and for the example of selflessness that she set protecting innocent people on our streets. This murder in cold blood is a tragedy, and sadly it is the latest in a troubling series of attacks on police officers over the past two years. These attacks must stop and we must honor the service of every law enforcement officer and the memory of those we have lost in the line of duty.”
Albuquerque Felon Sentenced to Federal Prison for Unlawfully Possessing a Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Jesse Chavez, 34, of Albuquerque, N.M., was sentenced today in federal court to 46 months in prison followed by three years of supervised release for violating the federal firearms laws by unlawfully possessing a firearm and ammunition.
Chavez was charged by criminal complaint on May 27, 2016, with being a felon in possession of a firearm and ammunition on May 4, 2016, in Bernalillo County, N.M. According to the criminal complaint, officers of the Bernalillo County Sheriff’s Office executed an arrest warrant on Chavez on May 4, 2016. During a search incident to arrest, the officers seized a loaded firearm from Chavez.
Chavez subsequently was indicted on June 14, 2016, and charged with being a felon in possession of a firearm and ammunition. At the time, Chavez was prohibited from possessing firearms or ammunition because he previously had been convicted of first-degree murder in 2000. On Jan. 13, 2017, Chavez pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bernalillo County Sheriff’s Office. Assistant U.S. Attorney George C. Kraehe prosecuted the case.
55-Year Sentence Imposed on Columbus Man Convicted of Sex Crimes Against ChildRead the Press Release
COLUMBUS, Ohio – Thomas A. Sweeney, 49, of Columbus was sentenced to serve 45 years in prison for committing sex crimes involving a 14-year old female.
Vipal Patel, First Assistant United States Attorney for the Southern District of Ohio, Steve Francis, Acting Special Agent in Charge, U.S. Department of Homeland Security Investigations (HSI), Franklin County Sheriff Dallas Baldwin and other members of the Franklin County Internet Crimes Against Children (ICAC) Task Force announced the sentence handed down today by U.S. District Judge Michael H. Watson.
After a three-day trial, A U.S. District Court jury convicted Sweeney on January 20, 2017 of sexual exploitation of a minor, attempted coercion and enticement of a minor, receipt of child pornography and committing a sexual offense against as minor as a registered sex offender. Judge Watson sentenced Sweeney to a 45-year prison term on each of the first three crimes and ordered him to serve them concurrently, plus an additional ten years for committing a sexual offense against a minor as a registered sex offender.
According to court documents and trial testimony, Sweeney communicated with his then-14-year-old biological daughter via cellular phone and convinced her to send him photographs of her nude genitalia via text message. He also attempted to convince her to meet with him for purposes of the two engaging in sexual acts.
Sweeney had been convicted in 2004 in Franklin County Common Pleas Court for two counts of rape involving a minor. He was sentenced to two consecutive terms of five years in prison for that conviction.
Sweeney was charged by a criminal complaint in this case on February 11, 2016 and was indicted by a federal grand jury on March 31, 2016 and in a superseding indictment on January 12, 2017.
This case was prosecuted by United States Attorney Benjamin C. Glassman and Assistant United States Attorney Heather A. Hill. It was investigated by Franklin County ICAC Task Force members.
“Sweeney has proven himself to be a true predator,” Patel said. “The most significant outcome of the case is that the public is protected from future crimes by him.”
“The sentence handed down today should send a clear message about the harsh consequences that await child predators," said Steve Francis, special agent in charge of HSI, "This case is yet another example of the extraordinary collaborative efforts among our law enforcement partners with the ICAC, and our resolve to protect the most vulnerable among us."
The Franklin County ICAC Task Force is a multi-agency effort dedicated to the fight against computer facilitated crimes against children. In addition to HSI and the Franklin County Sheriff’s Office, the following agencies are members of the task force: Ohio ICAC, the Ohio Bureau of Criminal Investigation in Attorney General Mike DeWine’s Office, Franklin County Prosecutor Ron O’Brien’s Office, the Delaware and Pickaway county Sheriff’s offices and the police departments in Circleville, Columbus, Grandview, Grove City, Hilliard, The Ohio State University, Upper Arlington and Westerville.
Monday 3 July 2017
Two Men Convicted of Burglarizing Firearms DealersRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted two local men today of conspiracy and theft of firearms from a federally licensed firearms dealer.
According to court records and evidence presented at trial, Preston G. Holmes III, 23, and Matthew D. Jones, 23, participated in the burglary of a Federal Firearms Licensee (FFL) in Chantilly, where they stole 35 handguns. Holmes and Jones were also involved in attempted thefts of firearms from FFLs in Spotsylvania County and Fredericksburg.
Holmes and Jones each face up to 10 years in prison when sentenced on Sept. 12, 2017. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; Colonel Edwin C. Roessler Jr., Chief of Fairfax County Police; Roger L. Harris, Spotsylvania County Sheriff; and David W. Nye, Chief of Fredericksburg Police, made the announcement after U.S. District Judge Gerald Bruce Lee accepted the verdict. Assistant U.S. Attorneys Michael Rich and Alexander Blanchard are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-67.
Two District Men Sentenced to 47-Year Prison Terms for Deadly 2009 Gun Battle in Northeast WashingtonRead the Press Release
WASHINGTON – Two men, both from Washington, D.C., have been sentenced to 47-year prison terms for their roles in a gun battle in Northeast Washington in which two people were killed, including a 15-year-old innocent bystander, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Sequarn Tibbs, 25, and Earl Jackson, 24, were found guilty by a jury in November 2016 of two counts of second-degree murder while armed, three counts of assault with intent to kill, two counts of aggravated assault, and related weapons offenses. The verdicts followed a trial in the Superior Court of the District of Columbia. They were sentenced on June 30, 2017, by the Honorable Michael Ryan.
Tibbs and Jackson had pled guilty in 2013 to voluntary manslaughter and other charges, but the pleas were subsequently reversed by the District of Columbia Court of Appeals. That led to the trial and the jury’s verdict. Additionally, a third co-defendant, Antonio Barnes, 25, pled guilty in September 2016 to voluntary manslaughter and other charges. He was sentenced in November 2016 to a 13-year prison term, to be followed by five years of supervised release.
According to the government’s evidence, Tibbs and Jackson were part of a group, known as “Young Savage,” associated with the 37th Street/37th Place neighborhood of Southeast Washington. The violence came after the discovery on Oct. 12, 2009 that a burglary took place in the home of Jackson’s mother, located in the Clay Terrace area of Northeast Washington. A .38-caliber revolver, belonging to a juvenile co-conspirator, was stolen during the burglary.
Late Oct. 12, 2009 and early Oct. 13, 2009, Jackson and others, including Tibbs’s brother, Daquan Tibbs, 18, decided that Clay Terrace residents were responsible for the burglary. The group decided to travel to the home of Jackson’s mother in Clay Terrace to identify and find the people responsible and get the property back - with force, if necessary.
They rode to Clay Terrace in a taxicab, while armed with a .45-caliber semi-automatic pistol, a .40-caliber pistol and a .9-mm pistol. Once there, they decided to confront Clay Terrace individuals who were outside in the neighborhood. They demanded the .38-caliber revolver, and, although it remains unclear if money was taken in the burglary as well, also asked for cash.
A male from the Clay Terrace group advised that they did not know who was responsible for the theft, but opined that it was probably a “young’un.” Later, an older Clay Terrace resident came to the Jacksons’ house, and asked about the situation. This person also speculated it was probably “one of the little young’uns,” and left. The older man later came back and returned the gun, not saying where he got it. He said that he did not know anything about the missing money.
Sequarn Tibbs, meanwhile, joined the group in Clay Terrace. Throughout the day, several members of the group smoked marijuana. At one point, Jackson and the juvenile co-conspirator discussed whether they should wait until school was over to see if they could find the “young’uns” responsible for the theft/burglary.
Shortly before 4 p.m. on Oct. 13, 2009, the defendants and others in the group left the house. The group took their guns with them, which included a .45-caliber pistol, a .40-caliber pistol, a .38-caliber revolver, and a .9-mm pistol. They headed to a courtyard known in Clay Terrace as “Briscoe Court,” in the 300 block of 53rd Street NE. A gun battle soon began, with Sequarn Tibbs firing the first shot. During the gunfire, Daquan Tibbs was shot to death by a weapon fired by the juvenile co-conspirator. A 15-year-old boy, Davonta Artis – an innocent bystander – was shot and also killed. Three others were wounded.
In August of 2010, Tibbs and Jackson learned that warrants had been issued for their arrests, and they fled the Washington, D.C. area to avoid being apprehended. Tibbs was captured on Sept. 21, 2010 in New York, and Jackson was captured on Jan. 13, 2012, in North Carolina.
In announcing the sentences, U.S. Attorney Phillips and Chief Newsham commended the work of the detectives, officers and mobile crime scene technicians who investigated the case for the Metropolitan Police Department and the U.S. Park Police. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Deborah Sines; former Assistant U.S. Attorneys Reagan Taylor, Sean Tonolli, J.P. Cooney, Sharad Khandelwal and Heather Carlton; Liaison and Operations Manager Linda McDonald; Paralegal Specialists Zekiah Wright, Debra Joyner, Kendra Johnson, Alesha Matthews-Yette, Kwasi Fields, Kelly Blakeney, Sharon Newman, Fern Rhedrick, and Marian Russell; Litigation Technology Specialists Leif Hickling, William Henderson, and Joshua Ellen; Victim/Witness Advocates Marcia Rinker and Katina Adams-Washington, former Investigative Analyst Larry Grasso, and Investigative Analysts Zachary McMenamin, Durand Odom, and John Marsh. Finally, they praised the work of Assistant U.S. Attorneys Laura Bach and Nebiyu Feleke and Special Assistant U.S. Attorney Veronica Noonan, of the District of Columbia Office of the Attorney General, who prosecuted the case.
Tax Return Preparer Pleads GuiltyRead the Press Release
DALLAS — Arslen Ramin Ayeze, a tax return preparer who managed a tax preparation business in Dallas, Texas, appeared last week in federal court in Dallas, before U.S. Magistrate Judge Renee Toliver, and pleaded guilty to one count of aiding and assisting in the preparation of a tax return, announced U.S. Attorney John Parker of the Northern District of Texas.
Ayeze, who was remanded to custody following his guilty plea for a violation of his conditions of pretrial release, faces a maximum statutory penalty of three years in federal prison, a $250,000 fine and restitution. Sentencing is set for October 11, 2017, before U.S. District Judge Ed Kinkeade.
According to the factual resume filed in the case, from 2008 through 2010, Ayeze was a tax preparer doing business under the name of Universal Tax in Dallas, Texas. On January 20, 2010, Ayeze prepared and electronically filed with the IRS, a 2009 U.S. Individual Income Tax Return, Form 1040, on behalf of K.G. which was false and fraudulent. In preparing the tax return, Ayeze deceived the I.R.S. by falsely including a business loss deduction in the amount of $10,575 for a purported sole proprietorship operated by K.G. Ayeze knew K.G. had not incurred the loss and was not entitled to claim the deduction on the tax return. The false deduction of $10,575 resulted in an actual tax loss to the United States in the approximate amount of $2,557.
The investigation was conducted by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Christopher Stokes is in charge of the prosecution.
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Prospect Mortgage, LLC agrees to pay $4.157 Million to resolve False Claims Act allegations arising from the FHA Mortgage Lending Practices of two of its branchesRead the Press Release
ATLANTA – John A. Horn, U.S. Attorney for the Northern District of Georgia, and Brian J. Stretch, U.S. Attorney for the Northern District of California, announced that the United States has settled civil mortgage fraud claims against Prospect Mortgage Company, LLC (“Prospect”) stemming from Prospect’s participation in the Direct Endorsement Lender Program, which is administered by the Federal Housing Administration (“FHA”) and the U.S. Department of Housing and Urban Development (“HUD”).
“To participate in the FHA program, Prospect had to comply with HUD underwriting and quality control requirements and certify that these requirements had been satisfied with respect to each FHA loan it originated,” said John A. Horn, U.S. Attorney for the Northern District of Georgia. “Prospect failed to adhere to these requirements at two Southeastern branches and when many of these loans later defaulted, the United States suffered substantial losses.”
“Prospect’s knowing failure to comply with material HUD loan origination requirements not only resulted in major losses to the public fisc, but also served to undermine the FHA program,” said Brian Stretch, U.S. Attorney for the Northern District of California. “Today’s settlement demonstrates the Department of Justice’s resolve and commitment to hold lenders, large and small, accountable for this type of fraudulent conduct.”
“Ensuring the fiscal integrity of FHA programs is at the core of our mission,” said Acting HUD Inspector General Helen M. Albert. “We will continue to work with our law enforcement partners to identify and root out those that seek to compromise such programs that are directly intended to assist the American public,” he concluded.
In this settlement, Prospect has agreed to pay the United States $4.157 million to resolve an investigation conducted by the U.S. Attorneys’ Offices for the Northern Districts of Georgia and California into whether Prospect violated the False Claims Act by falsely certifying compliance with critical underwriting and quality control (“QC”) requirements when originating loans insured by the FHA and HUD. As revealed by an Atlanta HUD-Office of Inspector General (“OIG”) audit, two Prospect branches – one in Florida and another in North Carolina – originated many of these loans without adhering to the requisite HUD requirements. As a result, the United States suffered substantial losses when the loans defaulted and ripened into claims by Prospect for insurance payments from the United States.
Prospect participated in the FHA insurance program as a Direct Endorsement Lender (“DE Lender”). As a DE Lender, Prospect had the authority to originate, underwrite, and endorse mortgages for FHA insurance. If a DE Lender approves a mortgage loan for FHA insurance, and the loan later defaults, the holder of the loan may submit an insurance claim to the Government to recover its losses on the loan. Under the DE Program, the Government does not review a loan before endorsement for FHA insurance. Instead, FHA and HUD rely upon DE Lenders like Prospect to follow program rules, which require, among other things, that a lender: (1) adhere to HUD underwriting guidelines; (2) maintain a QC program that can identify and correct deficiencies in their underwriting practices; and (3) self-report to HUD materially deficient loans identified by their QC program.
Between December 2007 and December 2009, Prospect had a 12.29 percent default rate – well in excess of the national average – within HUD’s Atlanta Home Ownership Center (“HOC”). HUD determined that approximately 76% of these defaults were attributable to two particular Prospect branches located in Florida and North Carolina. The Government’s investigation revealed that the majority of the audited loans from these branches were not compliant with HUD underwriting requirements relating to Prospect’s assessment of borrower: (1) assets; (2) income; and (3) credit, which are essential considerations in determining whether a loan will be repaid, as opposed to going into default or serious delinquency.
As part of the settlement, Prospect has acknowledged among other things, the following conduct that occurred in the two Prospect branches at issue:
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Prospect endorsed for FHA insurance loans that had not been originated in accordance with HUD requirements concerning a DE Lender’s assessment of assets, income, and credit.
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Prospect falsely certified that the non-compliant loans that it originated had been underwritten in accordance with HUD underwriting requirements.
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As evidenced by its 12.29% default rate within the Atlanta HOC, and the fact that 76% percent of such defaults were attributable to one branch office in Florida and another in North Carolina, Prospect failed to adhere to HUD quality control guidelines.
The investigation of this case was a coordinated effort between the U.S. Attorneys’ Offices for the Northern Districts of Georgia and California, HUD, and HUD-OIG.
This resolution with Prospect is the latest in a string of civil fraud cases pursued by the United States in recent years alleging fraudulent lending practices by residential mortgage lenders.
Assistant U.S. Attorney Paris A. Wynn handled this matter for the U.S. Attorney’s Office for the Northern District of Georgia.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
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Prospect Mortgage, LLC Agrees to Pay $4.157 Million to Resolve False Claims Act Allegations Arising from the FHA Mortgage Lending Practices of Two of Its BranchesRead the Press Release
SAN FRANCISCO – Prospect Mortgage Company, LLC (“Prospect”) has agreed to pay the United States $4.157 million to resolve allegations that that the company committed civil mortgage fraud in connection with its participation in the Direct Endorsement Lender Program announced U.S. Attorney for the Northern District of California Brian J. Stretch, and U.S. Attorney for the Northern District of Georgia John A. Horn.
The Direct Endorsement Lender Program, is administered by the Federal Housing Administration (“FHA”) and the U.S. Department of Housing and Urban Development (“HUD”). Prospect participated in the FHA insurance program as a Direct Endorsement Lender (“DE Lender”). As a DE Lender, Prospect had the authority to originate, underwrite, and endorse mortgages for FHA insurance. In this settlement, Prospect has agreed to pay the United States $4.157 million to resolve an investigation conducted by the U.S. Attorneys’ Offices (USAO) for the Northern District of California and the Northern District of Georgia into whether Prospect violated the False Claims Act by falsely certifying compliance with critical underwriting and quality control (“QC”) requirements when originating loans insured by the FHA and HUD.
“Prospect’s knowing failure to comply with material HUD loan origination requirements not only resulted in major losses to the public fisc, but also served to undermine the FHA program,” said U.S. Attorney Stretch. “Today’s settlement demonstrates the Department of Justice’s resolve and commitment to hold lenders, large and small, accountable for this type of fraudulent conduct.”
“To participate in the FHA program, Prospect had to comply with HUD underwriting and quality control requirements and certify that these requirements had been satisfied with respect to each FHA loan it originated,” said U.S. Attorney Horn. “Prospect failed to adhere to these requirements at two Southeastern branches and when many of these loans later defaulted, the United States suffered substantial losses.”
“Ensuring the fiscal integrity of FHA programs is at the core of our mission,” said Acting HUD Inspector General Helen M. Albert. “We will continue to work with our law enforcement partners to identify and root out those that seek to compromise such programs that are directly intended to assist the American public,” he concluded.
Under the DE Program, if a DE Lender approves a mortgage loan for FHA insurance, and the loan later defaults, the holder of the loan may submit an insurance claim to the Government to recover its losses on the loan. The Government does not review a loan before endorsement for FHA insurance; instead, FHA and HUD rely upon DE Lenders like Prospect to follow program rules. The rules require, among other things, that a lender: (1) adhere to HUD underwriting guidelines; (2) maintain a QC program that can identify and correct deficiencies in their underwriting practices; and (3) self-report to HUD materially deficient loans identified by their QC program. As revealed by an Atlanta HUD-Office of Inspector General (“OIG”) audit, two Prospect branches – one in Florida and another in North Carolina – originated many of these loans without adhering to the requisite HUD requirements. As a result, the United States suffered substantial losses when the loans defaulted and ripened into claims by Prospect for insurance payments from the United States.
Between December 2007 and December 2009, Prospect had a 12.29 percent default rate – well in excess of the national average – within HUD’s Atlanta Home Ownership Center (“HOC”). HUD determined that approximately 76% of these defaults were attributable to two particular Prospect branches located in Florida and North Carolina. The Government’s investigation revealed that the majority of the audited loans from these branches were not compliant with HUD underwriting requirements relating to Prospect’s assessment of borrower: (1) assets; (2) income; and (3) credit, which are essential considerations in determining whether a loan will be repaid, as opposed to going into default or serious delinquency.
As part of the settlement, Prospect has acknowledged, among other things, the following conduct that occurred in the two Prospect branches at issue:
- Prospect endorsed for FHA insurance loans that had not been originated in accordance with HUD requirements concerning a DE Lender’s assessment of assets, income, and credit.
- Prospect falsely certified that the non-compliant loans that it originated had been underwritten in accordance with HUD underwriting requirements.
- As evidenced by its 12.29% default rate within the Atlanta HOC, and the fact that 76% percent of such defaults were attributable to one branch office in Florida and another in North Carolina, Prospect failed to adhere to HUD quality control guidelines.
The investigation of this case was a coordinated effort between the USAO for the Northern District of California, the USAO for the Northern District of Georgia, and HUD, including HUD’s Office of Inspector General.
This resolution with Prospect is the latest in a string of civil fraud cases pursued by the United States in recent years alleging fraudulent lending practices by residential mortgage lenders.
Assistant U.S. Attorney Douglas K. Chang handled this matter for the U.S. Attorney’s Office for the Northern District of California, with the assistance of Tina Louie.
Ponca City Woman Charged with Using Interstate Facilities to Solicit Murder with RicinRead the Press Release
Oklahoma City, Oklahoma – DANIELLE DANA LAYMAN, 37, of Ponca City, Oklahoma, has been charged by criminal complaint with soliciting someone to murder her former husband with ricin, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
According to the complaint and supporting affidavit, filed July 1, 2017, Layman used craigslist to locate someone interested in a "10 day gig overseas." On May 9, 2017, she met in Ponca City with a person who responded to the craigslist post. According to the affidavit, Layman gave that person written instructions on traveling to Tel Aviv, Israel, and using ricin to poison a specific taxi driver in exchange for $4,000 plus expenses. The affidavit states that Layman also gave the person a baggie that she claimed contained the ricin to be used in the murder. Ricin is an extremely hazardous substance derived from castor beans. According to the complaint, the taxi driver in Tel Aviv appears to be Layman’s former husband.
On June 30, 2017, the FBI executed a search warrant at Layman’s residence in Ponca City. The affidavit states that agents found castor beans in the kitchen, along with a mortar and pestle with residue that could be remnants of ground castor beans. According to the affidavit, agents also found instructions on how to make ricin. Layman was arrested late the same day. She appeared before U.S. Magistrate Judge Charles Goodwin this afternoon and will remain in federal custody pending further proceedings.
If convicted of using a facility of interstate commerce to solicit murder, Layman could be sentenced to ten years in prison, three years of supervised release, and a fine of $250,000.
Reference is made to the complaint affidavit and court record for further information. The public is reminded that Layman is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is the result of an investigation by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorneys David P. Petermann and Ashley Altshuler.
Ohio man indicted for trafficking crack cocaine and illegally having ammunitionRead the Press Release
An Ohio man was indicted trafficking crack cocaine and being a felon in possession of ammunition, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio.
Shamar M. Stevenson was arrested on May 5 and found to have crack cocaine and seven rounds of 9 mm ammunition. He was prohibited from having the ammunition because of prior convictions in Stark County for felonious assault with a firearm and participating in a criminal gang.
The matter is being prosecuted by Assistant United States Attorney Aaron P. Howell following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Canton Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the United States of America’s burden to prove each defendant’s guilt beyond a reasonable doubt.
If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ roles in the offense and the characteristics of the violations.
Mississippi Corrections Officers Sentenced for Inmate Assault and Cover-UpRead the Press Release
Mississippi correctional officer Robert Sturdivant, 48, was sentenced to 18 months in prison and one (1) year of supervised release for leading the cover-up after an inmate was severely beaten at the state’s Parchman Prison, the Justice Department announced today.
Three other officers have already been sentenced for the March 9, 2014, incident, in which an officer punched and kicked the victim while he lay nonresistant on the ground. The victim was temporarily blinded by the attack and suffered severe blood loss, a broken orbital bone, and permanent partial vision loss.
After the attack, Sturdivant, a supervisor, led the three other officers to create a cover story that falsely minimized and falsely justified the force used by officers. He pleaded guilty in February.
“Supervisory officers must be held accountable for permitting and encouraging the officers under their watch from committing violent acts,” said Acting Assistant Attorney General Tom Wheeler. “The Department of Justice is committed to enforcing the rights guaranteed by the United States Constitution.”
Three other officers were sentenced on June 2 for their roles in the beating and the cover-up. Lawardrick Marsher, 29, the main perpetrator of the assault, was sentenced to 50 weekends in jail and a period of probation. Deonte Pate, 24, was sentenced to 12 weekends in jail and to a period of probation for his role in concealing the incident. Romander Nelson, 44, was sentenced to 14 weekends in jail and a period of probation for failing to intervene to protect the victim.
The Mississippi State Penitentiary in Parchman is the largest prison in the state, housing more than 3,000 inmates. It has operated continuously as both a prison and a working farm since 1901.
“We have been consistent in our message,” said Christopher Freeze, special agent in charge of the FBI in Mississippi. “Corrections officers are not above the law. In fact, law enforcement officers should be held to a higher standard. This corrections supervisor heinously abused his power, infringing upon the Constitutional rights of the inmate, when he assisted with covering up the crime. It was our duty to bring him to justice. The FBI is committed and will continue to aggressively investigate any civil rights allegations."
This case was investigated by the FBI’s Jackson Division, with the cooperation of the Mississippi Department of Corrections. It was prosecuted by Assistant U.S. Attorney Robert Coleman of the Northern District of Mississippi and Trial Attorney Dana Mulhauser of the Civil Rights Division’s Criminal Section.
Meth Ice Dealer Convicted in Federal CourtRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announced that Zachery Joseph Cooley, 38, of Mobile, was convicted in federal court on Thursday for conspiracy to possess with intent to distribute methamphetamine, four counts of distribution and possession with intent to distribute methamphetamine, and three counts of illegal weapon possession. The jury for the trial was selected on Monday, June 26, and the trial commenced on June 27 before Senior District Court Judge Callie V. S. Granade.
The prosecution called 20 witnesses in the two-day trial. The evidence showed that Cooley came to the attention of law enforcement officers when a search warrant was executed at a residence on Willow Creek Drive in Mobile in February of 2016. The Mobile Police Narcotics Unit encountered Cooley in the first bedroom, on his knees packaging five ounces of methamphetamine ice into smaller amounts for distribution. Cooley gave a statement after being advised of his rights that he did not own the methamphetamine ice, but he was a drug dealer and he sold methamphetamine ice to make money to support his daughter. Others in the house gave statements after being advised of their rights that Cooley had traveled to Mississippi the night before the police searched the house, and he brought the methamphetamine ice into the residence.
Cooley was arrested again on September 8, 2016, when he brought methamphetamine ice into a hotel room in Tillman’s Corner where a confidential informant was waiting to get the drugs from a supplier. The informant was equipped with electronic devices to record the activities inside the room, and the video depicted Cooley arriving in the room with the drugs. Mobile County sheriff’s deputies followed Cooley away from the hotel and stopped him as he pulled into a gas station. Cooley was armed with a revolver and the marked money used by the informant to buy the drugs was recovered from his person.
Finally, Cooley was again encountered by law enforcement officers, this time the Mobile County Street Enforcement Narcotics Team (MCSENT). On September 27, 2016, another confidential informant was purchasing methamphetamine from a dealer, who called Cooley to bring the drugs. The officers confronted the dealer after Cooley left, and the dealer agreed to make another controlled purchase of methamphetamine from Cooley the next day. On that date, September 28, 2016, Cooley brought the methamphetamine to the dealer turned informant, and the MCSENT officers followed Cooley to arrest him for the distribution of the drugs. When a marked police car activated its blue lights, Cooley threw two items from his vehicle before he stopped. MCSENT officers subsequently recovered a brown bag containing methamphetamine, a pipe and a tube used to ingest methamphetamine, baggies and two scales. They also recovered a gun. Cooley gave a tape-recorded statement after he was advised of his rights in which he identified several others involved in the methamphetamine distribution business with him, including his suppliers and several local distributors who received meth ice from him. Four of the people who received meth ice from Cooley testified against him during the trial, each having entered into a plea agreement that provided for cooperation in ongoing drug investigations.
Thursday, the jury returned guilty verdicts on 8 of 9 counts. Cooley was acquitted, on one of the two counts of using and carrying a firearm in relation to a drug trafficking felony. Judge Granade set sentencing for October 4, 2017 at 9:30 a.m. Cooley faces a minimum mandatory 10 years to life sentence on the conspiracy charge, and a minimum mandatory consecutive sentence of 5 years on the using and carrying a firearm in relation to a drug trafficking felony count.
The case was investigated by the Mobile Police Department, MCSENT, the Mobile County Sheriff’s Office and the Department of Homeland Security Investigations. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Lima woman sentenced to 17 1/2 years in prison for sex trafficking conspiracyRead the Press Release
A Lima woman was sentenced to more than 17 years in prison for her role in a sex trafficking conspiracy, said Acting U.S. Attorney David A. Sierleja, FBI Special Agent in Charge Stephen D. Anthony and Lima Police Chief Kevin Martin.
Megan Hitt, 29, was sentenced to 210 months in federal prison. Jacqueline Young, 54, was sentenced to four years in prison for obstructing the investigation.
Last month, three people from Lima were sentenced to prison for their roles in the case. Randy Thompson, 26, was sentenced to 24 years in federal prison. Shemeric Cook, 30, was sentenced to 12 years in prison. Precious Russell, 20, was sentenced to nine years in prison.
Hitt, Thompson and others conspired to cause girls, aged 14 and 16, to engage in commercial sex acts in Lima and Fort Wayne, Indiana. They did this by taking and posting sexually explicit photos of the girls on backpage.com, transporting the girls, renting motel rooms for them and negotiating prices, according to court documents.
This took place between November 2015 and January 2016, according to court documents.
This case was prosecuted by Assistant U.S. Attorneys Alissa M. Sterling and Daniel Hurley following an investigation by the Lima Police Department, the FBI and the Northwest Ohio Crimes Against Children Task Force.
Henry County Felon in Possession of Weapons Sentenced to 110 Months in Federal PrisonRead the Press Release
Jackson, TN – Marvin Steinberg, 38, was sentenced to 110 months in federal prison for possession with intent to distribute methamphetamine and being a felon in possession of firearms. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, on November 6, 2015, members of the Henry County Sheriff’s Office executed a search warrant at Steinberg’s home in Paris, Tennessee, because of suspected methamphetamine and firearm possession.
Upon execution of the warrant, officers located six firearms, ammunition, and a loaded AK magazine. Officers also found methamphetamine along with digital scales, pipes, a "bong" and a gas mask. Steinburg, who was present, admitted to officers that the methamphetamine and some of the firearms were his.
On June 29, 2017, the Honorable J. Daniel Breen sentenced Steinberg to nearly 10 years’ confinement and received a total of 3 years supervised release to begin after his incarceration.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Henry County Sheriff’s Office; and the U.S. Attorney’s Office, who have all worked jointly to address gun-related crimes through aggressive investigation and prosecution. Assistant U.S. Attorney Taylor Eskridge prosecuted this case on the government’s behalf.
Gun Thief Sentenced in Federal CourtRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announced that Byron Chase Williams Champion, 24, of Pine Hill, was sentenced today in federal court on charges involving his theft of weapons and being a prohibited person in possession of firearms. Court documents show that Champion stole firearms from members of his family. These firearms were recovered from various pawnshops, one of which was in Pensacola, Florida. Champion also stole guns from others, some of which were recovered from a pawn shop in Meridian, Mississippi. The investigation also established that Champion was a marijuana user, and as such, he is prohibited from possessing a firearm under federal law. Champion pled guilty to the charges in March of 2017.
United States District Court Judge Kristi K. Dubose sentenced to be imprisoned for 18 months, followed by a three-year term of supervised release. Champion will undergo treatment for drug abuse while in prison and as a condition of his supervised release. No fine was imposed, however, the judge ordered that Champion pay $200 in special mandatory assessments.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Gaithersburg Man Sentenced to 5 Years in Prison for Aggravated Identity TheftRead the Press Release
JULY 3, 2017
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – On June 27, 2017, U.S. District Judge George J. Hazel, sentenced Glenn K. Wilcott, age 55, of Gaithersburg, Maryland, to 5 years in prison, followed by 3 years of supervised release for aggravated identity theft and being a felon in possession of firearms and ammunition.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Richard Ingram of the Department of State, Diplomatic Security Service, Washington Field Office; Special Agent in Charge, Daniel L. Board of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Marshal Johnny Hughes of the United States Marshals Service; Special Agent Michael McGill of the Social Security Administration, Office of the Inspector General and the United States Citizenship and Immigration Services.
According to court documents, on or about April 12, 2014, Wilcott submitted via mail a U.S. Department of State passport renewal form to acquire a new passport in the name of Victim A because the original passport was set to expire on May 17, 2014. During the renewal process, passport adjudicators determined that there were several fraud indicators associated with the application, including a death report related to the Social Security number that Wilcott used in the application. This social security number belonged to Victim A, who died March 6, 2012.
According to his plea agreement, when law enforcement executed a search warrant on Wilcott’s residence, they recovered various firearms and ammunition including a .22 caliber pen gun. Wilcott had previously sustained a conviction for an offense punishable by more than one year of imprisonment, which made him ineligible to possess firearms and ammunition.
Acting United States Attorney Stephen M. Schenning commended the Department of State, Diplomatic Security Service, ATF, the Social Security Administration, the United States Marshal’s Office, and ICE. Mr. Schenning thanked Assistant U.S. Attorneys Jennifer Sykes and Thomas Windom who prosecuted the case.
Former Psychiatrist Sentenced for Social Security FraudRead the Press Release
SAN JUAN, P.R. – Psychiatrist Luis Escabi-Pérez was sentenced to five years of probation, 500 hours of community service and ordered to pay a restitution of $230,244, for fraud in the application process for Social Security Administration (SSA) disability insurance benefits in Puerto Rico, announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez Vélez.
Escabi-Pérez had plead guilty on July 29, 2015 to committing fraud to the Social Security Administration. Escabi-Pérez’ DEA and medical license were revoked without contest.
Defendant Luis Escabi-Pérez submitted Psychiatric Medical Reports to the SSA in support of applications for disability insurance benefits submitted by his patients. Escabi-Pérez charged a fee for the medical visits, typically in the amount of $100.00. In addition, the defendant typically charged a fee in the amount of $500.00, for the preparation and submittal of a Psychiatric Medical Report to the SSA. He would at times also charge additional fees of up to $5,000 to backdate medical records in order to create the appearance of a longer history of medical treatment.
The case was investigated by the Social Security-OIG with the collaboration of the FBI and the Puerto Rico Police Department. Special Assistant United States Attorney Vanessa D. Bonano-Rodríguez prosecuted the case.
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Felon in Possession of a Firearm Sentenced in Federal CourtRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announced that Lance James Heine, 34, of Citronelle, was sentenced today in federal court on charges involving his being a prohibited person in possession of a. firearm. Court documents show that Heine was involved in a shoot-out in the Pleasant Circle subdivision in Citronelle in May of 2014. Citronelle police responded and found Heine hiding in some bushes near the McDavid Jones Elementary School. He was holding a pistol when he was apprehended. Heine pled guilty to the charges in February of 2017.
United States District Court Judge Kristi K. Dubose sentenced Heine to 24 months in prison, to be followed by a three-year term of supervised release. Heine will undergo treatment for drug abuse while in prison and as a condition of his supervised release. No fine was imposed, however, the judge ordered that Heine pay $100 in special mandatory assessments.
The case was investigated by the Citronelle Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Federal Jury Convicts Burleson Man of Child Pornography ChargesRead the Press Release
DALLAS — Following a one-week trial in Dallas, Texas, before U.S. District Judge Sidney A. Fitzwater, a federal jury has convicted Daryl Glenn Pawlak, 39, of Burleson, Texas, of two counts of child pornography offenses. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
Specifically, late Friday afternoon, the jury convicted Pawlak of one count of receipt of child pornography and one count of access with intent to view material containing child pornography involving a prepubescent minor. Pawlak faces a maximum statutory penalty of 20 years in federal prison for each count and a $250,000 fine. Following the verdict, Judge Fitzwater remanded Pawlak into custody. Sentencing is set for October 20, 2017.
This case arose from an FBI undercover operation involving an illegal member-only hidden-services website called Playpen. Playpen was dedicated to the advertisement and distribution of child pornography. Because Playpen operated as a hidden-services site, it was only available to users of the TOR network. The TOR network allows users and hidden-services sites anonymity by concealing the actual IP addresses of users and hidden-services sites.
Playpen categorized posts containing child pornography within forums and sub-forums according to the victim child’s age, gender, and type of sexual abuse endured, such as “Girls HC,” “Incest,” and “Toddlers.” Many of these posts displayed a preview image of child pornography, a link to download more child pornography, and a password to open the downloaded files. The website itself required a username and password to enter. Approximately 417,000 usernames were registered on Playpen at the time it was removed from the Internet.
Through the course of its investigation, the FBI discovered that the Playpen website was being run from within the United States. The FBI seized the server hosting the Playpen website and made the decision to conduct a limited, monitored, authorized two-week operation to catch individuals who had logged onto the site and clicked on certain posts within the site.
Pawlak was one of the individuals caught as a result of the FBI’s operation. Pawlak registered the username “notsoslow” with Playpen in September 2014 and had spent approximately 14.6 hours logged into the website prior to the FBI’s two-week operation.
The government presented evidence at trial showing on the morning of March 4, 2015, the last day of the FBI’s operation, Pawlak logged onto the Playpen site as user “notsoslow,” using his work computer at his house in Burleson, Texas. After clicking on a post within the site, the FBI deployed a network investigative technique (NIT) to “notsoslow’s” computer. The NIT instructed “notsoslow’s” computer to send to the FBI certain identifying pieces of information, including the actual IP address that was connecting the computer to the Internet, the MAC address of the network interface card of the computer, the name of the computer, and the username logged onto the computer.
Computer data captured as a result of the NIT showed that the MAC address, computer name, and username were consistent with having come from a computer that was provided to Pawlak by his employer (Employer One). The actual IP address resolved to Pawlak’s home address in Burleson, Texas. Forensic artifacts from this work computer showed that user “d.pawlak” had logged onto the computer earlier that morning and downloaded WinZip, a program that could be used to decompress files similar to many that were contained in Playpen.
Computer data collected during the FBI’s operation showed that a few minutes after the NIT deployed, user “notsoslow” navigated and clicked on two posts containing prepubescent child pornography, both of which were hosted in the “Pre teen Photos” “Girls HC” section of Playpen. Data from the Playpen server reflected that “notsoslow” had spent approximately 90 minutes logged into the site during the FBI’s two-week operation.
The government also presented evidence that two different work computers that had been assigned to Pawlak by two different employers both contained prepubescent child pornography in files associated with Pawlak’s computer usernames. The computer assigned to Pawlak by Employer One had forensic artifacts reflecting that the TOR browser had been installed, deleted, and reinstalled several times while the computer was assigned to Pawlak. The FBI also found forensic artifacts associated with the Playpen site, as well as file names consistent with child pornography. The jury heard testimony at trial that it appeared that Pawlak had undertaken some efforts to delete evidence of child pornography before returning the computer to Employer One.
On Pawlak’s second work computer, which had been assigned to him for merely three months, the FBI found over 800 images of child pornography and videos of child pornography depicting prepubescent children. Forensics also revealed that software used to wipe a computer’s hard drive was downloaded onto the computer shortly before Pawlak’s employer sent it to the FBI.
The FBI spoke with Pawlak as a part of its investigation. Pawlak confessed that he had been using his work computers to look at child pornography. He told the FBI that he began looking at child pornography sometime in 2012, he used TOR to find child pornography, and estimated that he had spent, on average, approximately half an hour a week on child pornography. Pawlak told the FBI that he preferred child pornography that depicted girls between the ages of 7-11 years old.
As a result of the FBI’s operation, at least 350 U.S.-based individuals have been prosecuted nationwide. At least 55 American children who were subjected to sexual abuse have been successfully identified or rescued, including at least four in the North Texas area. This case was prosecuted as a part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The FBI investigated this case. Assistant U.S. Attorneys Jamie L. Hoxie and Paul Yanowitch are in charge of the prosecution.
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Executive Office for Immigration Review Announces New Acting Deputy DirectorRead the Press Release
FALLS CHURCH, VA - The Executive Office for Immigration Review (EOIR) today announced the appointment of Katherine H. Reilly as the agency’s Acting Deputy Director. Ms. Reilly has served as Chief Counsel of the Employee and Labor Relations Unit within EOIR’s Office of General Counsel since December 2013.
"Katherine’s varied and impressive legal experience makes her well-suited for assuming the position of Acting Deputy Director at EOIR, especially during this important time when we are mobilizing all of our resources to combat a growing caseload," said Acting Director James McHenry. "The skills she has acquired as a manager and through her work in employee and labor relations are critical for the agency, both to meet its current challenges and to establish effective policies and procedures for the future."
In her new capacity as Acting Deputy Director, Ms. Reilly will supervise EOIR’s components and will be responsible for assisting in leading the agency in formulating and administering policies and strategies which enhance EOIR’s effectiveness in fulfilling its core mission of adjudicating cases fairly, expeditiously, and uniformly
Katherine H. Reilly joined EOIR in December 2013 as Chief Counsel of the Employee and Labor Relations Unit within the Office of General Counsel. Prior to her tenure with EOIR, she was the Director of Legal Services for the U.S. Postal Service Office of Inspector General, managing that agency’s employee relations team, civil litigation section, and contracting division. Ms. Reilly also served as a Special Assistant U.S. Attorney for criminal prosecutions in the Northern District of Texas. She began her career with the Federal Trade Commission as an antitrust attorney and also worked for a law firm, advising corporate clients on antitrust and commercial litigation. Ms. Reilly received her Bachelor of Arts and Juris Doctor degrees from the University of Texas at Austin and earned a Master of Laws degree from the University of Melbourne, Australia. Ms. Reilly is a member of the District of Columbia and Virginia bars.
Euclid woman indicted for fraudulently receiving $335,000 in benefits over two decadesRead the Press Release
A federal grand jury indicted Gwendolyn Cox-Johnson, 68, of Euclid, for theft of government funds, said David A. Sierleja, Acting United States Attorney for the Northern District of Ohio.
The indictment alleges that over a period of 23 years, Cox-Johnson fraudulently received approximately $335,000 in benefits from the Social Security Administration to which she was not entitled.
The Social Security Administration Office of the Inspector General conducted the investigation. Special Assistant United States Attorney Lisa J. Sanniti is prosecuting the case.
If convicted, the court will determine the defendant’s sentence after a review of 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. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Dallas Woman Sentenced to 12 Months and 1 Day in Federal Prison for Stealing Government MoneyRead the Press Release
DALLAS — Tasha Lashaun Wilson, of Dallas, was sentenced last Friday by Chief U.S. District Judge Barbara M. G. Lynn to serve a prison sentence of 12 months and one day for theft of government funds, announced U.S. Attorney John Parker of the Northern District of Texas.
Wilson pleaded guilty in July 2015 to one count of theft of government money. Chief Judge Lynn ordered that Wilson be immediately remanded into federal custody at the conclusion of the sentencing hearing. Wilson was also order to pay back the loss to the government, none of which Wilson had attempted to pay back prior to the sentencing hearing.
According to documents filed in the case, on October 24, 2012, the United States Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) received information about a Housing Choice Voucher Program (HCV) tenant believed to have a financial interest in the residence where she was living in Frisco, Texas.
A review of Wilson’s Dallas Housing Authority (DHA) tenant file revealed that she had been a HCV program participant since 2003. It was also determined that Wilson received United States Department of Agriculture (USDA) Supplemental Nutrition Assistance Program (SNAP) benefits and Medicaid assistance.
In 2010, Wilson was looking for a place to live while she was a participant in the HCV program. Wilson’s friend agreed to sign up to be an approved landlord in the HCV program so Wilson could live in his house in Frisco, Texas while she remained in the HCV program. As part of the process to be approved as a landlord, Wilson’s friend submitted a direct deposit form into which DHA would deposit money to subsidize Wilson’s rent. This direct deposit form listed a bank account to which both Wilson and her friend were signatories, but the submitted form did not disclose Wilson as a signatory to the account. Wilson told investigators that prior to submitting the direct deposit form, she told her friend that disclosing Wilson as a signatory to the joint bank account would be a problem because it would get her kicked out of the HCV program. Wilson’s friend told her that he would make sure Wilson’s name did not appear on the direct deposit form.
In September of 2010, Wilson completed and submitted an application to have her HCV rental subsidy transferred to her friend’s house in Frisco, Texas. From 2010 through into 2014, DHA deposited money into the joint bank account believing that it was sending money to Wilson’s landlord to subsidize her rent. Instead, Wilson accessed and spent the money at retailers and restaurants. Wilson was required to go through an annual re-certification process through which she was required to report income; Wilson did not disclose to DHA or HUD that she had access to, and was spending money from, the joint bank account. When confronted by law enforcement, Wilson admitted that she actively concealed the joint bank account because she knew that if she had reported it, she would have been kicked out of the HCV program.
An analysis of Wilson’s DHA HAP payments history from November 1, 2010, through February 28, 2014, revealed losses to DHA/HUD totaling $60,073.00. Similarly, an analysis of Wilson's SNAP benefit payments and Medicaid payments made during the same time period reveal losses to the government totaling $7,370.00 and $9,836.37, respectively.
HUD investigated the case. Assistant U.S. Attorney Jamie L. Hoxie prosecuted.
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Complaint Filed Against Rapper Ricky L. Hampton, aka Finese2Tymes, for Felon in Possession of a FirearmRead the Press Release
LITTLE ROCK—Patrick C. Harris, Acting United States Attorney for the Eastern District of Arkansas, and Jeffrey B. Reed, Resident Agent-in-Charge of the Little Rock Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announced today that a Complaint has been filed against Ricky L. Hampton, 25, of Memphis, Tennessee, for felon in possession of a firearm in violation of 18 U.S.C. 922(g)(1).
The complaint alleges that on June 25, 2017, Ricky L. Hampton, aka “Finese2Tymes” was at Club Envy in Forrest City, Arkansas. As Hampton, a Memphis rapper, was leaving the club, he began screaming at a person in a car that he believed was blocking his way. As Hampton got into his car, he continued screaming at the person to move out of his way. Hampton became impatient with that person in the other vehicle and pointed an AK-style pistol at that person. As that person drove away, Hampton fired a shot that shattered the rear window and struck the driver of the other vehicle in the neck. The weapon Hampton used, a Century Arms, model RAS 47, 7.62 caliber pistol, has been recovered by law enforcement.
Hampton was convicted in Tennessee of felony aggravated robbery, for which he was sentenced to eight (8) years in prison.
Acting U.S. Attorney Patrick C. Harris and Jeffrey B. Reed, Resident Agent-in-Charge jointly stated that, “Through the collaborative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, the Federal Bureau of Investigation, the Forrest City Police Department, the First Judicial Circuit States Attorney’s Office, and the United States Attorney’s Office, this alleged violent offense will proceed through the judicial process. The U.S. Attorney’s Office and ATF are committed to working with federal, state and local partners to address violent firearm offenses within the state of Arkansas.”
This investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Marshals Service, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Angela Jegley and Cameron McCree.
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Cleveland man indicted for using firearm to rob Family Dollar storeRead the Press Release
A Cleveland man was indicted for using a firearm while robbing a Family Dollar store, said Acting U.S. Attorney David A. Sierleja.
Donathan Kidd, 21, was indicted on one count of Hobbs Act robbery and one count of using a firearm in a crime of violence.
Kidd robbed the Family Dollar store at 14235 Kinsman Road in Cleveland on April 29. He used a firearm during the robbery, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of 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 violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Brian McDonough following an investigation by the ATF and Cleveland Division of Police.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Akron man indicted for having fentanyl and a firearmRead the Press Release
An Akron man was indicted for having fentanyl and a firearm, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio.
Kenneth Gay, 26, was arrested at his residence in Akron during the execution of a search warrant by the Summit County Drug Unit and the Summit County Sheriff’s S.W.A.T. team. Officers found Gay to be in possession of the firearm and fentanyl.
Gay has been previously convicted of improperly handling a firearm in a motor vehicle and trafficking in marijuana.
If convicted, the defendant’s sentence will be determined by the Court after review of 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 violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The matter is being prosecuted by Assistant U.S. Attorney Mark S. Bennett following an investigation by the Summit County Sheriff’s Office, Akron Police Department, DEA and ATF.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Sunday 2 July 2017
Rosebud Man Sentenced for Distribution of a Controlled Substance and Possession with Intent to Distribute a Controlled SubstanceRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man has been convicted of Distribution of a Controlled Substance and Possession with Intent to Distribute a Controlled Substance and was sentenced on June 26, 2017, by U.S. District Judge Roberto A. Lange.
Lloyd One Star, age 27, was sentenced to 5 months in custody followed by 5 months home confinement, 3 years of supervised release, a fine of $1,000, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
One Star was indicted by a federal grand jury on November 9, 2016. He pled guilty on February 7, 2017.
The conviction stems from a traffic stop on March 7, 2016. A K9 alerted on the vehicle and the officers found several baggies containing methamphetamine, a Schedule II Controlled Substance. One Star admitted that he received distributable quantities of methamphetamine and that he engaged in distribution
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
One Star was immediately turned over to the custody of the U.S. Marshals Service.
Rosebud Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man convicted of Assaulting a Federal Officer was sentenced on June 26, 2017, by U.S. District Judge Roberto A. Lange.
Laverne White Hose, age 28, was sentenced to 6 months in custody, followed by 6 months of home confinement, 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
White Horse was indicted by a federal grand jury on October 12, 2016. He pled guilty on April 11, 2017.
The conviction stemmed from an incident that occurred during a traffic stop near Mission, on August 13, 2016. White Horse, who was initially stopped for an equipment violation, was subsequently arrested for Driving Under the Influence. As he was being arrested, White Horse became uncooperative and belligerent with the arresting officer, a Rosebud Sioux Tribe Police Officer. After the officer placed White Horse in wrist restraints, White Horse spitvbdirectly in the officer’s face.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
White Horse was immediately turned over to the custody of the U.S. Marshals Service.
Porcupine Man Found Guilty of Second Degree MurderRead the Press Release
United States Attorney Randolph J. Seiler announced that Marlin Iron Crow, age 44, of Porcupine, South Dakota, was found guilty of Second Degree Murder as a result of a federal trial in Rapid City, South Dakota. The jury returned the verdict on June 30, 2017.
The charge carries a maximum penalty of up to life in custody and/or a $250,000 fine, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
The conviction stems from Iron Crow killing the male victim on November 11, 2016, at Porcupine by beating him with his hands and shod feet
This case was investigated by the Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Megan Poppen prosecuted the case.
A sentencing date will be set. Iron Crow was remanded to the custody of the U.S. Marshals Service pending sentencing.
Eighth Circuit Court of Appeals Affirms Conviction and 30 Year Sentence for Assault and Domestic Assault by a Habitual OffenderRead the Press Release
United States Attorney Randolph J. Seiler announces that the Eighth Circuit Court of Appeals has affirmed the district court in appeal no. 16-3483, United States of America, appellee, v. Denny Johnson, Sr., appellant.
Johnson lived in Kenel, South Dakota, on the Standing Rock Indian Reservation. He sexually assaulted and restrained his victim over the course of several weeks in December 2013 and January 2014.
Following a trial, a jury found Johnson guilty of two counts of aggravated sexual abuse, one count of assault with a dangerous weapon, one count of simple assault, and one count of domestic assault by a habitual offender. He was sentenced to 30 years of imprisonment, followed by five years of supervised release.
On appeal, Johnson argued that the district court should have excluded various pieces of evidence and should have allowed evidence about the victim’s past actions. He also argued about the sentencing court’s inclusion of certain sentencing enhancement based on his victim’s vulnerability and his obstruction of justice. The Eighth Circuit affirmed the district court in all respects. In particular, the Court discussed at length the value and credibility of the expert testimony provided by the executive director of the South Dakota Network Against Family Violence and Sexual Assault.
U.S. Attorney Seiler reflected on the decision, “It’s another great example of the fine work being done by our office and our partners to bring justice to domestic abusers.”
Assistant U.S. Attorney Troy Morley prosecuted the case at trial and handled the appeal for the government. The case was investigated by the Federal Bureau of Investigation.
Friday 30 June 2017
York County Man Sentenced to 15 Years’ Imprisonment for Being A Felon in Possession of A FirearmRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Reginald L. Lomax, Jr., age 32, of York, Pennsylvania, was sentenced on June 28, 2017, by United States District Court Judge William W. Caldwell to 15 years’ imprisonment for being a felon in possession of a firearm.
According to U.S. Attorney Bruce D. Brandler, in December 2014, Lomax, Jr. was found to be unlawfully in possession of a firearm (Jennings, Model J22, .22 caliber semi-automatic pistol) in York County. Lomax is a convicted felon, making it illegal for him to possess a firearm. In addition, Lomax, Jr. was designated an “Armed Career Criminal” by virtue of his prior criminal record which included three felony drug trafficking convictions and subjected him to the minimum mandatory 15 year term.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the York City Police Department. Assistant U.S. Attorney James T. Clancy prosecuted the case.
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Williamsville Woman Pleads Guilty to Stealing Social Security Retirement BenefitsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Diane Cleversley, 68, of Williamsville, NY, pleaded guilty to theft of social security retirement benefits, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that the defendant failed to notify the Social Security Administration of her mother’s death in 2001. As a result, social security checks continued to be issued and deposited into a joint savings account held by Cleversley and her mother. The defendant transferred funds from the joint savings account into her own checking account. Cleversley, a retired social worker, stole a total of $176,405 between July 2001 and February 2017.
The plea is the result of an investigation by the Office of the Inspector General of the Social Security Administration, under the direction of Special Agent-in-Charge John Grasso.
Sentencing is scheduled for October 2, 2017, at 12:00 pm before Judge Arcara.
Wildboys Gang Member Convicted for Violent Crime in Aid of Racketeering and Related Firearm OffenseRead the Press Release
A federal jury in Charleston, South Carolina, yesterday convicted a member of the Wildboys gang of attempted murder in aid of racketeering and discharge of a firearm during and in relation to a crime of violence, announced Acting Assistant Attorney Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge C.J. Hyman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Charlotte, North Carolina Field Division; Solicitor Duffie Stone of the 14th Judicial Circuit; Solicitor David Pascoe of the First Circuit; Sheriff R.A. Strickland of the Colleton County, South Carolina Sheriff’s Office; Chief Wade Marvin of the Walterboro, South Carolina Police Department; Sheriff Al Cannon, Jr. of the Charleston County, South Carolina Sheriff’s Office; Sheriff L. C. Knight of the Dorchester County, South Carolina Sheriff’s Office; Chief Jon Rogers of the Summerville, South Carolina Police Department; Director Jerry Adger of the South Carolina Department of Probation, Parole and Pardon Services; and Chief Mark Keel of the South Carolina Law Enforcement Division.
Devin Brown, aka “Deno Badazz,” 23, of Walterboro, S.C., was convicted of violent crime in aid of racketeering activity and discharge of a firearm during and in relation to a crime of violence as a result of his involvement in the April 7, 2015, attempted murder of individuals believed to be rival gang members. Brown faces a minimum mandatory term of 10 years in prison on the firearms charge.
According to evidence presented at trial, the defendant was a member of the Wildboys, a violent street gang from the Green Pond area of Walterboro, S.C. Evidence at trial showed that beginning as early as 2012, Wildboys gang members engaged in racketeering activity, to include an April 9, 2012, robbery in Walterboro, and a March 18, 2015, attempted murder in Summerville, S.C.
Evidence presented at trial also showed that Brown, along with two other members of the Wildboys, committed racketeering acts, including the April 7, 2015 shooting at the home of a rival gang member in the Dooley Hill area of Walterboro. According to the trial evidence, on that date, Brown and two other members of the Wildboys drove past the home of the rival gang members and used assault-type firearms to shoot into the home. An innocent bystander inside the home was shot and injured, the evidence showed.
Four individuals previously pleaded guilty to violent crime in aid of racketeering related to their involvement in the Wildboys gang. On June 2, 2017, U.S. District Judge Richard M. Gergel of the District of South Carolina sentenced Wildboys members and associates Kelvin Mitchell, Damien Robinson, and Brian Manigo for their roles in gang-related racketeering activities. Sentencing is pending for Wildboys member Joshua Manigault.
The case was investigated by the ATF, Charleston, South Carolina, in partnership with the Walterboro Police Department; Colleton County Sheriff’s Office; Charleston County Sheriff’s Office; Dorchester County Sheriff’s Office; Summerville Police Department; Fourteenth Judicial Circuit Solicitor’s Office; First Judicial Circuit Solicitor’s Office; South Carolina Department of Probation, Parole and Pardon Services; and the South Carolina Law Enforcement Division.
The case was prosecuted by Trial Attorney Leshia Lee-Dixon of the Criminal Division’s Organized Crime and Gang Section and Tameaka A. Legette, Special Assistant U.S. Attorney from the Fourteenth Judicial Circuit Solicitor’s Office, Bluffton, South Carolina.
Wildboys Gang Member Convicted for Violent Crime in Aid of Racketeering and Related Firearm OffenseRead the Press Release
WASHINGTON – A federal jury in Charleston, South Carolina, yesterday convicted a member of the Wildboys gang of attempted murder in aid of racketeering and discharge of a firearm during and in relation to a crime of violence, announced Acting Assistant Attorney Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge C.J. Hyman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Charlotte, North Carolina Field Division; Solicitor Duffie Stone of the 14th Judicial Circuit; Solicitor David Pascoe of the First Circuit; Sheriff R.A. Strickland of the Colleton County, South Carolina Sheriff’s Office; Chief Wade Marvin of the Walterboro, South Carolina Police Department; Sheriff Al Cannon, Jr. of the Charleston County, South Carolina Sheriff’s Office; Sheriff L. C. Knight of the Dorchester County, South Carolina Sheriff’s Office; Chief Jon Rogers of the Summerville, South Carolina Police Department; Director Jerry Adger of the South Carolina Department of Probation, Parole and Pardon Services; and Chief Mark Keel of the South Carolina Law Enforcement Division.
Devin Brown, aka “Deno Badazz,” 23, of Walterboro, S.C., was convicted of violent crime in aid of racketeering activity and discharge of a firearm during and in relation to a crime of violence as a result of his involvement in the April 7, 2015, attempted murder of individuals believed to be rival gang members. Brown faces a minimum mandatory term of 10 years in prison on the firearms charge.
According to evidence presented at trial, the defendant was a member of the Wildboys, a violent street gang from the Green Pond area of Walterboro, S.C. Evidence at trial showed that beginning as early as 2012, Wildboys gang members engaged in racketeering activity, to include an April 9, 2012, robbery in Walterboro, and a March 18, 2015, attempted murder in Summerville, S.C.
Evidence presented at trial also showed that Brown, along with two other members of the Wildboys, committed racketeering acts, including the April 7, 2015 shooting at the home of a rival gang member in the Dooley Hill area of Walterboro. According to the trial evidence, on that date, Brown and two other members of the Wildboys drove past the home of the rival gang members and used assault-type firearms to shoot into the home. An innocent bystander inside the home was shot and injured, the evidence showed.
Four individuals previously pleaded guilty to violent crime in aid of racketeering related to their involvement in the Wildboys gang. On June 2, 2017, U.S. District Judge Richard M. Gergel of the District of South Carolina sentenced Wildboys members and associates Kelvin Mitchell, Damien Robinson, and Brian Manigo for their roles in gang-related racketeering activities. Sentencing is pending for Wildboys member Joshua Manigault.
The case was investigated by the ATF, Charleston, South Carolina, in partnership with the Walterboro Police Department; Colleton County Sheriff’s Office; Charleston County Sheriff’s Office; Dorchester County Sheriff’s Office; Summerville Police Department; Fourteenth Judicial Circuit Solicitor’s Office; First Judicial Circuit Solicitor’s Office; South Carolina Department of Probation, Parole and Pardon Services; and the South Carolina Law Enforcement Division.
The case was prosecuted by Trial Attorney Leshia Lee-Dixon of the Criminal Division’s Organized Crime and Gang Section and Tameaka A. Legette, Special Assistant U.S. Attorney from the Fourteenth Judicial Circuit Solicitor’s Office, Bluffton, South Carolina.
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Washington County Felon Back in Federal PrisonRead the Press Release
PITTSBURGH - A resident of Washington, Pennsylvania, was sentenced in federal court on June 28, 2017 to an additional 24 months of federal incarceration after violating his federal supervision, Acting United States Attorney Soo C. Song announced today.
United States District Judge Nora Barry Fischer imposed the latest federal sentence on Zack James Sadler, age 32.
According to information presented to the court, Sadler had failed to report his address to United States Probation Officers as required and was then arrested on several different alleged gun-related offenses in Washington County. Most of those cases were dropped for reasons that include the victims failing to show in court, however, he was convicted of Recklessly Endangering Another Person and Illegally Possessing a Concealed Firearm charges at one Washington County case.
Prior to imposing sentence, Judge Fischer noted that Sadler was on supervision for being a Felon in Possession of a Firearm at one case in federal court where he was sentenced to 60 months of incarceration. Sadler received another 15 months of incarceration when charged with escaping from a halfway house after his release from federal custody. Prior court hearings revealed that Sadler has previous convictions for illegal firearm possession, assaults, drugs, burglary and shooting at civilians.
Assistant United States Attorney Ross E. Lenhardt of the Violent Crime Section of the Office of the United States Attorney prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Washington City Police Department and the United States Probation Office for the investigation leading to the successful prosecution of Sadler.
U.S. Attorney Charges Wilton Town Clerk with EmbezzlementRead the Press Release
BIRMINGHAM – Federal prosecutors today charged the former town clerk of Wilton with embezzling from the Shelby County town, announced Acting U.S. Attorney Robert O. Posey and FBI Acting Special Agent in Charge David W. Archey.
In a one-count information filed in U.S. District Court, the U.S. Attorney’s Office charged APRIL PRICE ROMERO, 31, of Thorsby, with embezzling $8,752 from Wilton between Jan. 1, 2016, and May 17, 2016, while she was the town clerk.
“Whether they are elected or appointed, public officials are servants of the public's interest,” Archey said. “While the vast majority of public officials are honest, those who are not should know that there is no acceptable level of corruption, and my office is dedicated to rooting out corruption at every level. If you have information about public corruption, call our tip line at 844-404-TIPS, and tell us what you know."
In conjunction with the information, prosecutors also filed a plea agreement with Romero in which she acknowledges the charges and pledges to plead guilty to them.
As town clerk, Romero had access to and signature authority on all of the Town of Wilton’s bank accounts. According to her plea agreement, Romero stole from the town by making unauthorized disbursements from the town’s accounts and converting the money to her personal use.
As part of the plea agreement, Romero will pay $17,216 in restitution to the town and forfeit $8,752 to the government as proceeds of illegal activity.
The maximum penalty for embezzlement is 10 years in prison and a $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney Pat Meadows is prosecuting.
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Two Joplin Men Sentenced for Attempted Armed Bank Robbery Foiled by CustomerRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that two Joplin, Mo., men were sentenced in federal court today for the attempted armed robbery of Pinnacle Bank in Joplin.
Sean LaDue, 30, and Jimmy Eisenhour, 37, both of Joplin, were sentenced in separate appearances before U.S. District Judge Stephen R. Bough. LaDue was sentenced to 15 years 10 months in federal prison without parole. Eisenhour was sentenced to 13 years in federal prison without parole.
LaDue and Eisenhour both pleaded guilty to aiding and abetting in the robbery of Pinnacle Bank, 1316 E. 32nd Street, Joplin, on Nov. 14, 2016. They each also pleaded guilty to aiding and abetting the use of a firearm during a crime of violence.
Eisenhour and LaDue entered the bank at approximately 3:50 p.m. and announced, “This is a robbery, get down!” Eisenhour jumped behind the bank counter while LaDue, who was armed with a .22-caliber handgun, stayed near the front of the bank. The sole customer of the bank struggled with LaDue in an attempt to disarm him. During the struggle, LaDue fired multiple shots. Both robbers then fled from the bank without taking any money.
Police officers located and arrested both Eisenhour and LaDue two days later, on Nov. 16, 2016.
This case was prosecuted by Assistant U.S. Attorneys James J. Kelleher and Patrick Carney. It was investigated by the Joplin, Mo., Police Department and the FBI
Tuskegee Man Found Guilty in Federal Court for Multiple Armed Robberies and CarjackingRead the Press Release
Montgomery, Alabama—Yesterday, a federal jury found Tariq Khalil Jones, 35, of Tuskegee, Alabama, guilty of 23 separate charges stemming from numerous armed robberies in Alabama and Georgia while brandishing and discharging a firearm, and an attempted carjacking, announced A. Clark Morris, Acting U.S. Attorney for the Middle District of Alabama. During his crime spree, Jones robbed various convenience stores and other cash-heavy businesses, including:
- 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.
Evidence presented at trial showed that Jones used a firearm during each of these crimes and pointed it at the victims. However, during two of the robberies, he went even further. After the robbery in Prattville, he shot at a vehicle with a father and his 3-year old daughter inside because he thought it was following him. Then, while fleeing the robbery of the Dollar General in Camp Hill, he attempted to carjack a Volkswagen Beetle from a woman in the parking lot.
Jones faces mandatory life sentences for the robberies and attempted carjacking, plus 282 years for multiple counts of brandishing and discharging a firearm during these crimes. 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. There is no parole in the federal system.
“The U.S. Attorney’s Office is committed to taking trigger pullers and violent criminals off the streets,” stated Acting U.S. Attorney Morris. “Each one of the crimes that Tariq Jones committed placed the lives of innocent people in jeopardy, including a 3-year old girl. I commend each law enforcement agency that worked together to bring him to justice and make our communities safer.”
“This case is a perfect example of cooperative effort in law enforcement with over ten federal, state, and local agencies coming together when the stakes are extremely high,” stated FBI Special Agent in Charge Robert Lasky. “The jury’s decision today says they approve of law enforcements efforts to stop dangerous individuals like Tariq Khalil Jones from continuing his extremely hazardous multi-state crime spree.”
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.
Sun City Center Resident’s Estate to Repay $15,743.14 to Social Security AdministrationRead the Press Release
Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that the Estate of Allan Dunn agreed to the sale of assets, from which the government was paid $15,743.14, to resolve allegations that Mr. Dunn failed to report the death of his wife and thereafter improperly collected her Social Security benefits.
Allan Dunn and his wife, Margaret Dunn, resided together in Sun City Center until Mrs. Dunn passed away at home in 2002. Mr. Dunn concealed his wife’s death by placing her body in a freezer in their home. He then collected her Social Security benefits until his own death in 2010. In all, he improperly collected $92,088 in federal benefits. Following Mr. Dunn’s death, authorities discovered that Mrs. Dunn had died eight years earlier.
Upon his death, Mr. Dunn’s sole asset of value was the condominium unit where he and his wife had resided. His heirs, who were unaware that he had concealed his wife’s death, agreed to waive their rights to inherit the condominium and to put it up for sale. The unit has since been sold. After paying the back taxes, sales costs, and amounts owed to the condominium association, the remaining sales proceeds of $15,743.14 were paid to the United States.
This case was handled by Assistant U.S. Attorney Charles Harden. It was investigated by the Social Security Administration - Office of the Inspector General.
Anyone who suspects abuse or neglect of the elderly is encouraged to contact state and local law enforcement authorities. Anyone who suspects fraud, waste, or abuse of federal benefits programs is encouraged to contact federal law enforcement authorities, such as the Inspector General of the federal agency that administers the program.
Springfield, Nixa Men Sentenced for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., man and a Nixa, Mo., man have been sentenced in federal court for their roles in a conspiracy to distribute large quantities of methamphetamine.
David Miller, 40, of Springfield, Mo., and Corey A. Stienbarger, 27, of Nixa, Mo., were sentenced by U.S. District Judge M. Douglas Harpool on Thursday, June 29, 2017. Miller was sentenced to 11 years and six months in federal prison without parole. Stienbarger was sentenced to four years and four months in federal prison without parole.
Miller and Stienbarger both pleaded guilty to participating in the conspiracy to distribute methamphetamine from June 1, 2013, through Nov. 29, 2014.
Beginning in 2012, the Drug Enforcement Administration, assisted by other agencies, investigated one of the largest methamphetamine distribution rings in southwest Missouri. The investigation resulted in the indictment of 28 co-defendants.
In 2013 through 2014, Daniel and Kenna Harmon, 38, of Republic, Mo., distributed in excess of 45 kilograms of methamphetamine in southwest Missouri. Kenna Harmon obtained methamphetamine from several sources and provided distribution amounts of methamphetamine to Miller and others. During the investigation law enforcement seized a total of 1.2 kilograms of methamphetamine from Miller.
Investigators learned that Jonathan A. Heredia was distributing methamphetamine from his business, Hot Shot Motors in Rogersville, Mo. When law enforcement officers executed a search warrant at the business on March 5, 2014, Heredia and Miller, an employee of Hot Shot Motors, were present. Inside the business, officers discovered approximately 75.59 grams of methamphetamine contained in various plastic bags inside Heredia’s desk in his office. Officers also found a .40-caliber Smith and Wesson handgun under his desk and $48,757 in his office.
Officers found approximately 518 grams of methamphetamine inside a bathroom shower at the business. Both Heredia and Miller told investigators that methamphetamine belonged to Miller, who had purchased it earlier in the day from Kenna Harmon.
Law enforcement officers executed a search warrant at Miller’s residence on April 7, 2014. Agents found approximately 569 grams of methamphetamine, 31 grams of crack cocaine, 28.2 grams of heroin, 34 grams of unknown white pills, 63 grams of marijuana and 48.7 grams of mushrooms. Officers also found a drug ledger type notebook, two digital scales, smoking pipes, other types of drug paraphernalia, cell phones and $10,937.
Miller admitted that he had been obtaining methamphetamine from the Harmons for about a year prior to his arrest. Beginning in the late summer of 2013, Miller received one to two pounds of methamphetamine every few days from the Harmons. Miller paid over $15,000 per pound for the methamphetamine.
Miller was stopped by law enforcement officers on Feb. 9, 2015. During the stop, officers searched his vehicle and found 146 grams of methamphetamine in six separate baggies, 31 grams of marijuana, and a glass pipe.
Stienbarger’s role in the conspiracy was to distribute methamphetamine that he obtained from co-defendant Anthony J. Van Pelt, 38, of Springfield. Van Pelt also provided methamphetamine to Kenna Harmon. On Aug. 19, 2014, Stienbarger, under Van Pelt’s direction, distributed approximately 450 grams of methamphetamine in Springfield to a person who had traveled from St. Louis.
Kenna Harmon was arrested in November 2014. Agents searched various residences and vehicles belonging to Kenna Harmon and her co-conspirators and seized approximately five kilograms of methamphetamine and approximately $128,674. Kenna Harmon has pleaded guilty to being a leader in the drug-trafficking conspiracy as well as a money-laundering conspiracy and to being a felon in possession of a firearm.
Daniel Harmon was indicted in the Eastern District of Missouri and pleaded guilty to possessing methamphetamine with the intent to distribute and to being a felon in possession of a firearm. Following his arrest and incarceration, Kenna Harmon continued to lead the drug-trafficking organization.
Van Pelt was sentenced on May 31, 2017, to 21 years in federal prison without parole. Heredia pleaded guilty in a separate case and was sentenced on March 8, 2016, to four years in federal prison without parole.
This case is being prosecuted by Assistant U.S. Attorneys Randall D. Eggert, Nhan D. Nguyen and Cynthia J. Hyde. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Missouri State Highway Patrol, the Springfield, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Sex Offender Sentenced to 15 Years in Prison for Online Enticement and Child Pornography OffensesRead the Press Release
PORTLAND, Ore. – On Thursday, June 29, 2017, U.S. District Court Judge Michael H. Simon sentenced David James McHarg, 58, of Beaverton, Ore. to 15 years in federal prison after he pleaded guilty to one count of attempted online enticement of a minor, and one count of receiving child pornography.
This case began when the Washington County Sheriff’s Office received information that McHarg, a previously convicted sex offender, was engaging in inappropriate online communications with adolescent boys. A Washington County Sheriff’s detective received permission to assume the online identity of one of the boys. McHarg engaged in a number of sexually explicit chats with the detective, who he believed was a 15-year-old boy. During the chats, McHarg suggested that the boy travel to Portland during his spring break, and talked about various sexual acts they would engage in together. McHarg was arrested when he traveled to the Portland International Airport to meet what he thought was the boy’s incoming flight.
A search of McHarg’s Facebook account revealed that he had also been communicating online with a 16-year-old boy in Colorado. At McHarg’s request, the boy sent sexually explicit images and videos of himself to McHarg. In addition, investigators learned that in 2006, McHarg took a 17-year-old boy to Jamaica, where they engaged in various sex acts together.
At the sentencing hearing, McHarg apologized profusely and expressed remorse for his conduct. He said, "I don’t want to be this person. This is not who I want to be." He expressed a desire to take advantage of treatment and counseling programs while in prison.
In imposing the sentence, Judge Simon described McHarg as a "good and decent person" who, for reasons that may be beyond his control, caused harm to young persons. Judge Simon was concerned that McHarg might continue to harm children if allowed to remain free and imposed the sentence in part to protect the public.
After completing his prison term, McHarg will be on supervised release for the remainder of his life. He will be subject to strict supervision conditions, including requirements that he participate in mental health and sex offender treatment programs, and limitations to his possession and use of computers, and access to the Internet. McHarg may petition the court to
modify or end his term of supervised release after he has completed at least five years of supervision.
Billy J. Williams, United States Attorney for the District of Oregon, praised the sentence imposed on McHarg. "Judge Simon recognized the serious and repetitive nature of Mr. McHarg’s conduct – particularly since Mr. McHarg had already been convicted once of a sex offense against a minor – and imposed an appropriate sentence," Williams said. "After serving a lengthy term of imprisonment, Mr. McHarg will be under close supervision for the rest of his life. Hopefully, that will help ensure that he never again attempts to exploit or abuse a child," Williams added.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the U.S. Department of Justice and led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Washington County Sheriff’s Office, and prosecuted by Gary Y. Sussman, Assistant United States Attorney and Project Safe Childhood Coordinator for the District of Oregon.
Seven More Sentenced and Two More Plead Guilty to Charges Arising Out of ATF-Led Operation Targeting Drug Trafficking and Firearms Crime in Bernalillo CountyRead the Press Release
ALBUQUERQUE – In Aug. 2016, a multi-agency investigation led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) concluded with the filing of 59 federal indictments and a federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. To date, 61 of the 104 defendants charged as the result of this investigation have entered guilty pleas and 26 of them have been sentenced. The following seven defendants were sentenced in federal court in Albuquerque, N.M., this week:
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Maria Citlaly Beltran-Ahumada, 37, a Mexican national illegally residing in Albuquerque was sentenced on June 26, 2017, on an illegal reentry charge to a term of time-served and is pending deportation;
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Julian Brown, 22, was sentenced on June 27, 2017, to 30 months in prison followed by three years of supervised release for possessing an unregistered firearm;
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Francisco Garcia, 20, was sentenced on June 27, 2017, to 60 months in prison followed by five years of supervised release for possessing a firearm in furtherance of a drug trafficking crime;
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Inkosi Grandberry, 35, was sentenced on June 28, 2017, to 60 months in prison followed by five years of supervised release for possessing a firearm in furtherance of a drug trafficking crime;
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Angelica Marie Santiesteban, 40, was sentenced on June 28, 2017, to 63 months in prison followed by five years of supervised release for distributing methamphetamine;
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Johnny Flores, 23, was sentenced on June 28, 2017, to 24 months in prison followed by three years of supervised release for distributing methamphetamine; and
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Manuel Boydston, 36, was sentenced yesterday to 60 months in prison followed by four years of supervised release for distributing methamphetamine.
In addition, Keith Thompson, 48, pled guilty yesterday and his co-defendant Matthew Sandoval, 38, pled guilty today to heroin trafficking charges. Thompson’s plea agreement recommends a sentence of 70 months in prison, and Sandoval’s plea agreement recommends a maximum sentence of 84 months in prison.
These nine defendants were amongst the 104 who were charged as the result of the investigation that began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Beltran-Ahumada’s co-defendants Guajira Maya Lovato, 44, Janet Bowman, 40, Anthony Barela, 34, and Juan Jose Rivas, 32, were charged by indictment on July 28, 2016, with distributing methamphetamine. The indictment was superseded on Aug. 9, 2016, to add Beltran-Ahumada as a defendant and an additional conspiracy charge. The superseding indictment charged the five defendants with conspiring to distribute methamphetamine from June 21, 2016 through Aug. 9, 2016, and distributing methamphetamine on June 22, 2016. Beltran-Ahumada pled guilty on June 9, 2017, to an information charging her with illegal reentry of a removed alien, and admitted that she was found to be illegally in Bernalillo County on Aug. 9, 2016, after being deported from the United States on Nov. 8, 2003.
Brown was arrested on Aug. 10, 2016, on an indictment charging him with distributing heroin and possessing a firearm not registered to him in the National Firearms Registration and Transfer Record (NFRTR). According to the indictment, committed the offenses on July 11, 2016, in Bernalillo County. On Feb. 1, 2017, pled guilty to Count 2 of the indictment charging him with possessing an unregistered firearm. In entering the guilty plea, admitted that on July 11, 2016, he possessed and sold a weapon made from a shotgun not registered to him in the NFRTR.
Garcia was arrested on July 8, 2016, and was charged by indictment with firearms and drug trafficking offenses. The indictment was subsequently superseded on July 28, 2016, and charged Garcia with distributing methamphetamine on May 10, 2016 and May 12, 2016, and using and carrying a firearm in relation to a drug trafficking crime. On Jan. 6, 2017, Garcia pled guilty to using and carrying a firearm in relation to a drug trafficking crime, and admitted that on May 12, 2016, he possessed a firearm during the sale of methamphetamine to an undercover law enforcement agent. Garcia further admitted carrying the firearm for protection and to assist him in his drug trafficking crimes.
Grandberry was arrested on July 6, 2016, on a six-count indictment charging him with distributing heroin on April 28, 2016 and April 29, 2016; being a felon in possession of firearms and ammunition on April 28, 2016, May 4, 2016 and May 12, 2016; and possessing a firearm in relation to a drug trafficking crime on April 28, 2016. According to the indictment, Grandberry was prohibited from possessing firearms or ammunition because of a previous felony conviction for possession of a controlled substance. On Nov. 2, 2016, Grandberry pled guilty to Count 3 of the indictment charging him with possessing and carrying a firearm in relation to a drug trafficking crime, and admitted that on April 28, 2016, he was in possession of a pistol loaded
with ammunition while conducting a heroin transaction.
Santiesteban and co-defendant Noe Urias, 36, were charged in a four-count indictment filed on June 30, 2016, with methamphetamine trafficking offenses. The indictment was superseded on July 28, 2016, to add Patrick Zamora, 22, and another methamphetamine trafficking charge. The superseding indictment charged the three defendants with conspiracy to distribute methamphetamine from May 2, 2016 through June 20, 2016, and distributing methamphetamine on June 20, 2016; Urias and Santiesteban with distributing methamphetamine on May 2, 2016 and May 19, 2016; and Urias with distributing methamphetamine on May 18, 2016. According to the superseding indictment, the defendants committed offenses in Bernalillo County. On Dec. 8, 2016, Santiesteban pled guilty to Count 5 of the superseding indictment charging her with distributing methamphetamine and admitted that on June 20, 2016, she sold approximately 116.8 grams of methamphetamine in exchange for money.
Flores and his co-defendant Josue Duarte, 31, were charged in a four-count indictment filed on Aug. 9, 2016, with conspiracy to distribute methamphetamine from July 18, 2016 through July 26, 2016, and distribution of methamphetamine on July 22, 2016; Flores with distribution of methamphetamine on July 18, 2016; and Duarte with distribution of methamphetamine on July 26, 2016. On Dec. 6, 2016, Flores pled guilty a felony information charging him with distributing methamphetamine, and admitted that on July 18, 2016, he acted as a medium to facilitate a methamphetamine transaction in exchange for money.
Boydston and his co-defendant Thomas Montoya, 40, were charged in a three-count indictment filed on June 30, 2016. The indictment charged Montoya with distribution of methamphetamine on June 6, 2016, and Montoya and Boydston with conspiracy and distribution of methamphetamine on June 14, 2016. On Feb. 6, 2017, Boydston pled guilty to Count 3 of the indictment charging him with distributing methamphetamine, and admitted that on June 14, 2016, he sold approximately 118 grams of methamphetamine to an undercover law enforcement agent.
Thompson and Sandoval were arrested in July 2016, and charged in a two-count indictment with distributing heroin on May 9, 2016, and distributing methamphetamine on May 19, 2016. Thompson entered a guilty plea yesterday and Sandoval entered a guilty plea today to heroin trafficking charges. In entering their guilty pleas, Thompson and Sandoval both admitted that on May 9, 2016, they sold heroin to another individual. They remain in custody pending sentencing hearings, which have yet to be scheduled.
The remaining defendants have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
These cases were investigated by the Albuquerque office of ATF. Assistant U.S. Attorney Presiliano Torrez is prosecuting the cases against Beltran-Ahumada and Boydston; Assistant U.S. Attorney Edward Han prosecuted the cases against Brown and Santiesteban; Assistant U.S. Attorney Rumaldo R. Armijo prosecuted the case against Garcia; Assistant U.S. Attorneys David M. Walsh and Norman Cairns prosecuted the case against Grandberry; and Assistant U.S. Attorney Paul H. Spiers prosecuted the case against Flores. Assistant U.S. Attorney Samuel A. Hurtado is prosecuting the case against Thompson and Sandoval.
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Second Trafficker of Massachusetts Woman Sentenced to PrisonRead the Press Release
PROVIDENCE – Kedwin Vargas, 26, of Roxbury, MA, was sentenced today in U.S. District Court in Providence, RI, to 60 months in federal prison for trafficking a female from Massachusetts to Rhode Island for the purpose of prostitution.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Vargas to serve 3 years supervised release upon completion of his prison term. Vargas pleaded guilty on December 8, 2016, to transportation with the intent to prostitute.
The government and the defendant recommended to the court that a sentence of 60 months of incarceration be imposed. The U.S. Sentencing Guideline range in this matter is 51 to 63 months of incarceration.
Vargas’ sentence is announced by Acting United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division.
At time of his guilty plea, Vargas admitted to the court that between January 2015 and March 2016, he met a female he knew to be engaged in prostitution, and did aid and abet her in carrying out that endeavor by, among other things, driving her from Massachusetts to appointments with customers in Rhode Island; holding cash she collected from her prostitution activities; and by profiting directly and indirectly from her activity.
Vargas has been detained in federal custody since his arrest on May 19, 2016.
A co-defendant in this matter, Rene Anthony Laureano, 31, of Roxbury, MA, was sentenced on June 21, 2017, to 24 months in federal prison. Laureano pleaded guilty on March 7, 2017, to transportation with the intent to prostitute.
The was prosecuted by Assistant U.S. Attorney William J. Ferland.
Acting United States Attorney Stephen G. Dambruch thanks the Warwick, R.I., and Boston Police Departments for their assistance in the investigation of this matter.
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Salem Man Sentenced to 25 Years in Prison for Producing child PornographyRead the Press Release
CONCORD, N.H.: Brian Powell, 34, of Salem, New Hampshire, was sentenced to spend 25 years in federal prison for producing child pornography, announced Acting United States Attorney John J. Farley.
According to court records and statements in court, an Electronic Service Provider (ESP) alerted the National Center for Missing and Exploited Children (NCMEC) that an individual had uploaded a child pornography file to the ESP’s website. That file was ultimately traced back to the Powell’s residence in Salem, New Hampshire. In 2015, the Salem Police Department obtained a search warrant for the residence and seized Powell’s personal computer. A detective with the Rochester, New Hampshire Police Department – also a member of the New Hampshire Internet Crimes Against Children Task Force – analyzed the contents of the computer and discovered a collection of child pornography.
That collection included several videos which the defendant had manufactured himself by initiating contact with minor females through an anonymous internet chat service. Powell, persuading the females to engage in sexually explicit conduct, which the defendant then captured on video without their knowledge. On at least two occasions, the defendant used advanced computer software to track the victims’ IP addresses which allowed him to reengage in conversation with them. He then played the previously-recorded videos for the victims and threatened to publicize them unless the victims engaged in additional sexual conduct. The victims complied and the defendant recorded these acts as well.
Powell, who previously pleaded guilty, will be on supervised release for ten years following his release from prison.
“The defendant’s conduct merits the substantial sentence that the court imposed today,” Acting U.S. Attorney Farley said. “He manipulated young women into exposing themselves and then threatened them with public humiliation if they did not engage in sexual acts that he could record. This reprehensible conduct robbed these young women of their innocence and cannot be tolerated. The U.S. Attorney’s Office will continue to work with our law enforcement partners each day to identify and prosecute those who abuse children by producing child pornography.”
The investigation in this case was led by the Salem, New Hampshire Police Department with the assistance of the New Hampshire Crimes Against Children Task Force, Homeland Security Investigations, and the Rochester and Derry police departments. The case was prosecuted by Assistant United States Attorney Georgiana Konesky.
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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Sacramento Woman Pleads Guilty to Possessing Stolen MailRead the Press Release
SACRAMENTO, Calif. — Channin Renee Dickens, 30, of Sacramento, pleaded guilty today to possessing stolen mail, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between September 15, 2016, and February 20, 2017, Dickens possessed mail that had been stolen from an authorized U.S. Mail receptacle. Dickens, along with Ashley Nicole Leyba, 27, of Sacramento, and others, carried out a scheme to defraud banks by using identity information and financial documents obtained from stolen U.S. Mail to apply for lines of credit and open accounts in the names of others. Dickens would use the cards to purchase merchandise and services.
On February 13, 2017, Leyba was arrested, and in April 7, 2017, pleaded guilty to bank fraud, aggravated identity theft, and possession of stolen mail. In Leyba’s plea agreement, she admits that while in custody, she instructed Dickens to destroy stolen identification and financial information that she had in her residence. However, some of the stolen mail was recovered in Dickens’ car before she could destroy it.
This case is the product of an investigation of the U.S. Postal Inspection Service, with assistance from the California Highway Patrol, the Sacramento County Sheriff’s Office, the Sacramento County Probation Office, and the Citrus Heights Police Department.
Dickens is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on September 15, 2017. Dickens faces up to five years in prison. Leyba is scheduled to be sentenced by Judge Burrell on July 28, 2017. Leyba faces up to 30 years in prison for bank fraud, a mandatory sentence of two years in prison for aggravated identity theft, and five years in prison for possession of stolen U.S. Mail.
Sacramento Man Sentenced to 20 Years in Prison for Sexual Exploitation of ChildrenRead the Press Release
SACRAMENTO, Calif. — Alexander Antonio Rojas, 58, of Sacramento, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 20 years in prison for distribution of child pornography, U.S. Attorney Phillip A. Talbert announced.
U.S. Attorney Talbert stated: “Today’s sentence is necessary to protect the public from further crimes by this defendant. He used his relative wealth and privilege in this country to exploit impoverished people overseas. It is our goal to ensure that this defendant never harms another child.”
“This case sends a clear message to those who seek, consume, and distribute child pornography,” said Acting Special Agent in Charge Voviette Morgan of the FBI Sacramento field office. “This investigation reminds those who are considering committing similar crimes that the FBI continues to collaborate with our international and task force partners to ensure the exploitation of vulnerable children is investigated and prosecuted to the full extent of the law.”
According to court documents, between August 5, 2013, and April 5, 2014, Rojas offered to pay money to individuals living in the Philippines and other Southeast Asian countries to produce photographs and videos of minor children engaged in sexually explicit conduct. In some instances, Rojas sought images of children as young as nine years old.
This case was the product of an investigation by the Federal Bureau of Investigation with assistance from the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Matthew G. Morris prosecuted the case.
Rojas has been in custody since his arrest on June 13, 2014.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.