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Friday 30 June 2017
Eleven Alleged Members of Gangster Disciples Indicted in Racketeering and Drug ConspiracyRead the Press Release
A federal grand jury in Nashville, Tenn., yesterday returned a 40-count indictment charging 11 members of the Gangster Disciples gang with conspiring to participate in a racketeering enterprise that included multiple murders, including the murder of a witness; a drug distribution conspiracy; and multiple other crimes of violence in aid of racketeering as well as firearms and drug crimes. Earlier today, federal, state and local law enforcement officers orchestrated a coordinated takedown resulting in numerous arrests in Tennessee, Kentucky and Florida. Attorney General Jeff Sessions of the Justice Department; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting U.S. Attorney Jack Smith of the Middle District of Tennessee; Special Agent in Charge Steve Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and Director Mark Gwyn of the Tennessee Bureau of Investigation (TBI) made the announcement.
“The Gangster Disciples have been a menace to law-abiding Americans for more than 40 years and remain a threat in 35 states today,” said Attorney General Sessions. “This gang sells dangerous drugs and has taken innocent lives. The Department of Justice is making combating violent gangs like this one a high priority, and today we take another major step toward taking them off our streets for good. I want to thank the dedicated federal prosecutors who brought this case, and I especially want to thank the 10 law enforcement agencies from the state, local, and federal levels who took part in this investigation.”
“The charges in this case encompass conduct dating back over a decade,” said Acting U.S. Attorney Smith. “In bringing these charges, we have sought to hold accountable those who have played a central role in gang violence and whose criminal activity has too often disrupted the peace and harmony of our communities. Our work is not done and this prosecution is the next step in what will be a sustained effort to dismantle the Gangster Disciples organization in Middle Tennessee.”
“ATF’s priority of reducing firearms violence is evident with the recent enforcement operation,” said Special Agent in Charge Gerido. “The collective resources of our law enforcement partners, combined with support from the community, results in a safer environment for the public.”
“Having the support and cooperation of our partner local, state and federal agencies is critical to ensuring that we work together to protect Tennesseans from violent individuals such as these,” said Director Gwyn. “Gang members who commit such violent acts, as alleged here, have no place in our communities, and we will continue to work together to bring such bad actors to justice.”
According to the indictment, the defendants conspired to participate in the affairs of the Gangster Disciples, a violent criminal gang founded in Chicago and now active in numerous states across the U.S., including Tennessee. The indictment alleges that the Gangster Disciples are highly organized, operating under the national leadership of a corporate board-style group, who is responsible for decisions for the gang at a national level, and the state and regional leadership of “governors” and other subordinate gang members, who are responsible for the gang’s activities in specific geographic regions. As set forth in the indictment, in middle Tennessee, the Gangster Disciples generally recruited members from a local neighborhood or from within jail or prison.
According to the allegations, the defendants conspired to enrich, promote and enhance the gang; to preserve and protect its power, territory, and operations through acts and threats of violence, including murder, assault, intimidation of witnesses and victims; and to provide support to gang members charged with, or incarcerated for, gang-related or other criminal activities.
For example, among other crimes, the indictment alleges that on Jan. 6, 2012, Gangster Disciples member Brandon Durell Hardison, 31, of Madison, Tenn., murdered a Gangster Disciples associate. That same date, Hardison also murdered the associate’s girlfriend, who was a witness to the murder, then enlisted other Gangster Disciples members to dispose of the murder weapon, according to the allegations. The indictment alleges that Hardison committed these murders for the purpose of maintaining and increasing his position in the Gangster Disciples.
Gangster Disciples members were also responsible for attacks on rival gangs, according to the allegations. For example, the indictment alleges that on Nov. 3, 2012, Hardison; Maurice Duncan Burks, 31, of Hopkinsville, Tenn.; Marcus Termaine Darden, 38, of Guthrie, Ky.; and Xavier Raphael Jenkins, 29, of Clarksville, Tenn., plotted to assault members of the Bloods gang. Thereafter, according to the allegations, Hardison and Jenkins assaulted, and Burks shot and killed, a member of the Bloods gang inside a nightclub in Clarksville, Tenn.
Additionally, the indictment alleges that in August 2014, Lamar Andre Warfield, 28, of Guthrie, Ky.; Derrick Lamar Kilgore, 32, of Clarksville, Tenn.; and Lawrence Mitchell, 33, of Clarksville, Tenn. conspired to murder members of the rival Vice Lords gang, resulting in the shooting of four individuals in Clarksville, Tenn. The indictment also alleges that in a separate crime in December 2014, DeCarlos Titington, 41, of Clarksville, Tenn., shot at and attempted to murder two Vice Lords gang members. Both Vice Lords shootings were for the purpose of maintaining and increasing the defendants’ position in the Gangster Disciples, according to the allegations.
The indictment also contains forfeiture allegations. According to the allegations, the government seeks to forfeit any proceeds and property, including but not limited to a money judgment, representing all or part of the gross proceeds obtained as a result of the alleged crimes.
The indictment names the following defendants in the RICO conspiracy: Darden; Burks, Hardison; Warfield; Kilgore; Titington; Mitchell; Elance Justin Lucas, 27, of Guthrie, Ky.; and Lorenzo Cortez Brown, 31, of Murfreesboro, Tenn.
The indictment also names Darden, Burks, Warfield, Kilgore, Lucas, Titington, Mitchell, Brown, as well as Rex Andrew Whitlock, 32, of Clarksville, Tenn., in the drug distribution conspiracy.
In addition to the RICO and drug distribution conspiracies, the indictment charges Hardison with two counts of murder in aid of racketeering, related firearms crimes, and witness tampering, and Burks with murder in aid of racketeering and related firearms crimes. Warfield, Kilgore, Mitchell and Titington are charged with conspiracy to commit murder, attempted murder and assault in aid of racketeering, and related firearms charges, which stem from shootings of rival gang members. Darden, Kilgore, Brown and Titington are also charged with drug distribution offenses.
The charges and allegations in the indictment are merely accusations, and all defendants are presumed innocent unless and until proven guilty in a court of law.
This investigation was conducted by the ATF; the Drug Enforcement Administration; the TBI; the Montgomery County Sheriff’s Office; the Clarksville Police Department; the Rutherford County Sheriff’s Office; the Murfreesboro Police Department; the Gallatin Police Department; the Kentucky State Police; the 19th Judicial District Drug Task Force; and the Hopkinsville, Kentucky Police Department. Trial Attorney Ivana Nizich of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Ben Schrader are prosecuting the case.
Eleven Alleged Members of the Gangster Disciples Indicted in Racketeering and Drug ConspiracyRead the Press Release
A federal grand jury in Nashville, Tenn., returned a 40-count indictment yesterday, charging 11 members of the Gangster Disciples with conspiring to participate in a racketeering enterprise that included multiple murders, including the murder of a witness; a drug distribution conspiracy; and multiple other crimes of violence in aid of racketeering as well as firearms and drug crimes, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division.
Joining the U.S. Attorney at a Noon news conference, were David Rybicki, Deputy Assistant Attorney General for the Department of Justice Criminal Division; David Jaffe, Acting Chief of the Organized Crime and Gang Section of the Department of Justice Criminal Division; Steven Gerido, Special Agent in Charge of the ATF Nashville Field Division; Mark Gwyn, Director of the Tennessee Bureau of Investigation; Clarksville, Tenn. Police Chief Al Ansley; Rutherford County, Tenn. Sheriff, Mike Fitzhugh; Gallatin Police Lieutenant Ricky Troup; and Sgt. Kevin Warrell of the Kentucky State Police.
Earlier today, federal, state and local law enforcement officers orchestrated a coordinated takedown resulting in numerous arrests in Tennessee, Kentucky and Florida and the execution of several search warrants in the Clarksville and Murfreesboro areas of Tennessee, where many of the defendants reside.
“The Gangster Disciples have been a menace to law-abiding Americans for more than 40 years and remain a threat in 35 states today,” said Attorney General Sessions. “This gang sells dangerous drugs and has taken innocent lives. The Department of Justice is making combating violent gangs like this one a high priority, and today we take another major step toward taking them off our streets for good. I want to thank the dedicated federal prosecutors who brought this case, and I especially want to thank the 10 law enforcement agencies from the state, local, and federal levels who took part in this investigation.”
“The charges in this case encompass conduct dating back over a decade,” said Acting U.S. Attorney Jack Smith. “In bringing these charges, we have sought to hold accountable those who have played a central role in gang violence and whose criminal activity has too often disrupted the peace and harmony of these two communities. Our work is not done and this prosecution is the next step in what will be a sustained effort to dismantle the Gangster Disciples organization in Middle Tennessee.”
“ATFs priority of reducing firearms violence is evident with the recent enforcement operation,” said ATF Special Agent in Charge Steve Gerido. “The collective resources of our law enforcement partners, combined with the community support results in a safer environment for the public.”
“Having the support and cooperation of our partner local, state and federal agencies is critical in ensuring that we can work together to protect Tennesseans from violent individuals such as these,” said TBI Director Mark Gwyn. “Gang members who commit such violent acts, as alleged here, have no place in our communities and we will continue to work together to bring such bad actors to justice.”
The indictment sets forth a series of on-going allegations of gang related activities including organizational meetings and crime planning activities, violent assaults, murder, drug distribution and firearms offenses from 2005 until present.
According to the indictment, the defendants conspired to participate in the affairs of the Gangster Disciples, a violent criminal gang founded in Chicago and now active in numerous states across the United States, including Tennessee. The indictment alleges that the Gangster Disciples are highly organized, operating under the national leadership of a corporate board-style group, who is responsible for decisions for the gang at a national level, and the state and regional leadership of “governors” and other subordinate gang members, who are responsible for the gang’s activities in specific geographic regions. As set forth in the indictment, in middle Tennessee, the Gangster Disciples generally recruited members from a local neighborhood or from within jail or prison.
According to the allegations, the defendants conspired to enrich, promote, and enhance the gang; to preserve and protect its power, territory, and operations through acts and threats of violence, including murder, assault, intimidation of witnesses and victims; and to provide support to gang members charged with, or incarcerated for, gang-related or other criminal activities.
For example, among other crimes, the indictment alleges that on Jan. 6, 2012, Gangster Disciples member Brandon Durell Hardison, 31, of Madison, Tenn., murdered a Gangster Disciples associate. That same date, Hardison also murdered the associate’s girlfriend, who was a witness to the murder, then enlisted other Gangster Disciples members to dispose of the murder weapon, according to the allegations. The indictment alleges that Hardison committed these murders for the purpose of maintaining and increasing his position in the Gangster Disciples.
Gangster Disciples members were also responsible for attacks on rival gangs, according to the allegations. For example, the indictment alleges that on Nov. 3, 2012, Hardison, Maurice Duncan Burks, 31, of Hopkinsville, Tenn.; Marcus Termaine Darden, 38, of Guthrie, Ky.; and Xavier Raphael Jenkins, 29, of Clarksville, Tenn., plotted to assault members of the Bloods gang. Thereafter, according to the allegations, Hardison and Jenkins assaulted, and Burks shot and killed, a member of the Bloods gang inside a nightclub in Clarksville, Tenn.
Additionally, the indictment alleges that in August 2014, Lamar Andre Warfield, 28, of Guthrie, Ky.; Derrick Lamar Kilgore, 32, of Clarksville, Tenn.; and Lawrence Mitchell, 33, of Clarksville, Tenn.; conspired to murder members of the rival Vice Lords gang resulting in the shooting of four individuals in Clarksville, Tenn. The indictment also alleges that in a separate crime in December 2014, DeCarlos Titington, 41, of Clarksville, Tenn., shot at and attempted to murder two Vice Lords gang members. Both Vice Lords shootings were for the purpose of maintaining and increasing the defendants’ position in the Gangster Disciples, according to the allegations.
The indictment also names Darden, Burks, Warfield, Kilgore, Lucas, Titington, Mitchell, Brown, as well as Rex Andrew Whitlock, 32, of Clarksville, Tenn., in the drug distribution conspiracy.
In addition to the RICO and drug distribution conspiracies, the indictment charges Hardison with two counts of murder in aid of racketeering, related firearms crimes, and witness tampering, and Burks with murder in aid of racketeering and related firearms crimes. Warfield, Kilgore, Mitchell and Titington are charged with conspiracy to commit murder, attempted murder and assault in aid of racketeering, and related firearms charges, which stem from shootings of rival gang members. Darden, Kilgore, Brown and Titington are also charged with drug distribution offenses.
The indictment also contains forfeiture allegations. The government seeks to forfeit any proceeds and property, including but not limited to a money judgment, representing all or part of the gross proceeds obtained as a result of the alleged crimes.
If convicted, these defendants face maximum sentences ranging from 10 years to life in prison. Burks and Hardison potentially face imposition of the death penalty.
This extensive investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Tennessee Bureau of Investigation; the Montgomery County Sheriff’s Office; the Clarksville Police Department; the Rutherford County Sheriff’s Office; the Murfreesboro Police Department; the Gallatin Police Department; the Kentucky State Police; the 19th Judicial District Drug Task Force; and the Hopkinsville Kentucky Police Department. Assistant United States Attorney Ben Schrader and Trial Attorney Ivana Nizich of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
An indictment is merely an accusation. All defendants are presumed innocent unless and until proven guilty in a court of law.
Detroit Area Medical Biller Sentenced to 50 Months in Prison for Her Role in a $7.3 Million Dollar Healthcare Fraud SchemeRead the Press Release
A Detroit-area medical biller was sentenced today to 50 months in prison for her role in a $7.3 million Medicare and Medicaid fraud scheme involving medical services that were billed to Medicare and Medicaid but not rendered as billed.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division, and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office, made the announcement.
Dawn Bentley, 56, of Oakland County, Michigan, was sentenced by U.S. District Judge Sean F. Cox of the Eastern District of Michigan, who also ordered Bentley to pay $3,253,107 in restitution jointly and severally with her co-defendants. After a one-week jury trial in January 2017, Bentley was convicted of one count of conspiracy to commit health care fraud, wire fraud and mail fraud, as well as one count of mail fraud. Bentley was sentenced to 50 months in prison on each of the two counts, to run concurrently, followed by one year of supervised release.
According to the evidence presented at trial, from June 2014 through June 2015, Bentley knowingly submitted fraudulent bills on behalf of a co-conspirator physician for services she knew could not have been rendered, and for services she knew had not been rendered as billed. In exchange, Bentley was paid 6% of the total billings paid to the physician from Medicare, the evidence showed. Bentley’s largest client was Waseem Alam, who pleaded guilty to a $33 million Medicare fraud scheme in March 2016. Bentley billed $1.9 million of this fraud from June 2014 to June 2015, and was paid 6% of Alam’s receipts for the fraudulent billings, the evidence showed. Bentley’s company received over $100,000 from Alam’s practices between June 2014 and June 2015, the evidence showed.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. Fraud Section Trial Attorneys Tom Tynan and Jessica Collins prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,000 defendants who have collectively billed the Medicare program for more than $11 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Defendant Sentenced to Seven Years in Prison for Intentional Destruction of Data, Credit Card Fraud, and Aggravated Identity TheftRead the Press Release
A former Davie resident has been sentenced to 7 years in prison for intentionally damaging a protected computer belonging to his former employer and making unauthorized purchases with credit card numbers belonging to others.
Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Acting Assistant Attorney General Kenneth A. Blanco of the Department of Justice’s Criminal Division, and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
In April 2017, a jury convicted Jonathan Lee Eubanks, 29, of one count of intentionally causing damage to a protected computer without authorization, one count of access device fraud, and three counts of aggravated identity theft. According to testimony presented at trial, Eubanks worked for a private security company. After resigning from the company, Eubanks repeatedly accessed his former employer’s computer system, without authorization, using remote access software that he had surreptitiously installed on a co-worker’s computer. Through this remote access software, on January 27, 2013, Eubanks deleted all of the files on one of the company’s computer servers, including databases of client and employee information and files necessary for scheduling and tracking employee shifts. He also re-directed the company’s website, so that visitors were instead connected to the website of a competing security firm. The following day, Eubanks used the email account of a former co-worker to send multiple emails in that former co-worker’s name to the company’s employees and clients disparaging the company and accusing it of illegal practices. Several weeks later, Eubanks placed a series of online orders using credit cards and names belonging to three other individuals. The evidence presented at trial showed that Eubanks had obtained these credit card numbers by accessing the computers of another company, which made software for use by private security firms. The online orders sought rifle scopes, survivalist gear, and electronics.
Senior United States District Judge James I. Cohn, sentenced Eubanks to a total of 84 months in prison. The sentence consisted of 60 months for intentionally damaging a protected computer and access device fraud, followed by a consecutive term of 24 months in prison for aggravated identity theft.
Mr. Greenberg commended the investigative efforts of the FBI in this matter. Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida and Trial Attorney Louisa K. Marion, of the Department of Justice’s Computer Crime and Intellectual Property Section, prosecuted this case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Defendant Sentenced for Intentional Destruction of Data, Credit Card Fraud and Aggravated Identity TheftRead the Press Release
A former Davie, Florida resident was sentenced to seven years in prison for intentionally damaging a protected computer belonging to his former employer and making unauthorized purchases with credit card numbers belonging to others.
Acting Assistant Attorney General Kenneth A. Blanco of the Department of Justice’s Criminal Division, Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
In April 2017, a jury convicted Jonathan Lee Eubanks, 29, of one count of intentionally causing damage to a protected computer without authorization, one count of access device fraud, and three counts of aggravated identity theft. According to testimony presented at trial. After resigning from a private security company, Eubanks repeatedly accessed his former employer’s computer system, without authorization, using remote access software that he had surreptitiously installed on a co-worker’s computer. The evidence showed that through this remote access software, on Jan. 27, 2013, Eubanks deleted all of the files on one of the company’s computer servers, including databases of client and employee information and files necessary for scheduling and tracking employee shifts. He also re-directed the company’s website, so that visitors to that site were instead directed to the website of a competing security firm. The trial evidence also revealed that the following day, Eubanks used the email account of a former co-worker to send multiple emails in that former co-worker’s name to the company’s employees and clients disparaging the company and accusing it of illegal practices. Several weeks later, Eubanks placed a series of online orders for rifle scopes, survivalist gear and electronics using credit cards and names belonging to three other individuals, which the evidence presented at trial showed he had obtained by accessing the computers of another company, which made software for use by private security firms.
The Honorable James I. Cohn, Senior U.S. District Judge, sentenced Eubanks to a total of 84 months in prison. The sentence consisted of 60 months for intentionally damaging a protected computer and access device fraud, followed by a consecutive term of 24 months in prison for aggravated identity theft.
The FBI investigated the case. Trial Attorney Louisa K. Marion, of the Justice Department’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida are prosecuting the case.
DeSoto Woman Pleads Guilty to Embezzling $1.6 million from Grandview School DistrictRead the Press Release
St. Louis, MO – Angela Huskey, 51, De Soto, MO, pled guilty today to one charge of mail fraud in connection with her embezzlement of approximately $1.6 million from the Grandview R-2 School District. Huskey appeared today before United States District Judge Rodney W. Sippel. Sentencing is set for October 13, 2017.
According to court documents, Huskey worked for Grandview for more than 20 years, being elevated to the position of business manager in 2009. In court today, Huskey admitted that she embezzled no less than $1.6 million from the school district during that time, falsifying the school district’s records to conceal her crimes. In some cases, Huskey admitted, she concealed her embezzlement by inflating the reported wages for other employees of the school district, causing those individuals to pay excess taxes to the Internal Revenue Service. As a result, those individuals paid an additional $13,368.28 in income taxes they did not in fact owe.
The crime to which Huskey pled guilty carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Richard E. Finneran is handling the case for the U.S. Attorney’s Office.
Cypress Man Convicted for Enticement of a MinorRead the Press Release
HOUSTON – A 34-year-old Cypress man entered a guilty plea today to the coercion and enticement of a minor, announced Acting U.S. Attorney Abe Martinez.
On Nov. 19 and 20, 2015, Christopher Ray Nunes communicated through the texting application know as KIK with someone he believed to be a 15-year-old girl. During those conversations, he detailed his intended plans to engage in sexual acts with her.
On Nov. 20, 2015, Nunes drove from Cypress to Fort Bend County for the purpose of engaging in a sexual act with the girl. He was taken into custody upon his arrival. At the time of his arrest, Nunes was in possession of the phone on which the sexually explicit KIK chats occurred.
U.S. District Judge Melinda Harmon accepted the plea and set sentencing for Oct. 13, 2017. At that time, Nunes faces a minimum of 10 years and up to life in federal prison and a possible $250,000 maximum fine. Nunes will also have to register as a sex offender and adhere to any special conditions imposed at sentencing in regard to his Internet usage and proximity to children.
The FBI and the Houston Metro Crimes Against Children Task Force conducted the investigation. Assistant U.S. Attorney Sherri L. Zack is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Court Sentences Defendant to Five Years Incarceration for Conspiracy to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announces that United States District Court Chief Judge Kristi K. DuBose sentenced Jamie Nichelle McKay on June 30, 2017 to serve a term of imprisonment of 60 months followed by 4 years of supervised release for conspiracy to distribute methamphetamine in violation of 21 USC § 846. During the federal investigation, it was revealed that the defendant distributed 28 grams of methamphetamine (Actual) with her co-defendant, Jay Kimberly Ponder. The defendant, who had an extensive criminal history, entered a guilty plea before the Court on March 17, 2017.
This case was investigated by the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the Mobile County Sheriff’s Office, the Mobile Police Department, and the United States Marshals Service. Assistant United States Attorney Lawrence J. Bullard prosecuted the case for the United States Attorney’s Office for the Southern District of Alabama.
Cincinnati Man Sentenced for Sex Trafficking MinorRead the Press Release
CINCINNATI – Malik D.M. Bell, 24, of Cincinnati, was sentenced in U.S. District Court to 210 months in prison for sex trafficking of children and production of child pornography.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Office and West Chester Township Police Chief Joel Herzog announced the sentence handed down today by U.S. District Judge Timothy S. Black.
Bell was indicted in March 2016 and pleaded guilty to the two counts in February 2017.
According to the Statement of Facts in this case, Bell recruited a 15-year-old female to engage in a commercial sex act. Specifically, he began communicating with the victim through Tagged.com in April 2015. At that time, he made plans with the victim to get together with the intent of prostituting the minor.
Bell drove from Cincinnati to Fort Mitchell, Ky. to pick up the girl and bring her to the Tri-County Inn hotel in West Chester, Ohio. There, Bell engaged in sex acts with the minor and video recorded some of the activity on his cell phone.
Bell took nude and partially nude photos of the victim and created advertisements with them on Backpage.com. Bell arranged for at least two men to have sexual intercourse with the minor at the hotel. He instructed the victim about how much to charge for various amounts of time and sexual acts and the victim provided Bell with the money paid.
“Malik Bell took advantage of a vulnerable juvenile and sexually exploited her for his own financial gain,” U.S. Attorney Glassman said. “Today’s sentence illustrates how egregious his criminal actions were.”
U.S. Attorney Glassman commended the investigation of this case by the FBI and West Chester Township Police, as well as Assistant United States Attorney Kyle J. Healey, who is representing the United States in this case.
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Charges Unsealed Against British Citizen for Defrauding Investors of More Than $36 MillionRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a criminal Complaint in Manhattan federal court charging RENWICK HADDOW, a British citizen, with engaging in schemes to defraud victims by soliciting, through material misrepresentations, and misappropriating investments in companies created by HADDOW called Bitcoin Store Inc. (“Bitcoin Store”) and Bar Works Inc. (“Bar Works”) as well as related entities HADDOW controlled. HADDOW remains at large.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As alleged, Renwick Haddow misled investors about critical facts, including the performance and operations of companies he controlled, in order to get them to invest more than $36 million. Haddow also allegedly used the alias ‘Jonathan Black’ to disguise his connection to the companies, and then allegedly misappropriated investors’ money for his own use. Along with our partners at the FBI and SEC, we will continue to root out fraud schemes perpetrated on investors.”
Assistant Director-in-Charge William F. Sweeney Jr. said: “While seeking investor funding for his purported start-up companies, Haddow allegedly misrepresented key elements of their performance, operations, and management. The alleged twisting of facts not only involved concealing his financial interests, but also his true identity. And just as Haddow adopted an alias to hide behind, so, too, did he disguise the true state of the businesses he controlled. But, as alleged, it appears it was all smoke and mirrors—until today.”
According to the allegations in the Complaint[1] unsealed today in Manhattan federal court:
RENWICK HADDOW is a citizen of the United Kingdom From November 2014 through June 2017, HADDOW solicited investments in start-up companies he created and controlled, including Bitcoin Store — a purported online platform for purchasing, selling, and storing the digital currency known as “Bitcoin”—and Bar Works, which purports to be a company that adapts former restaurants, bar premises, and other locations into co-working spaces. When doing so, HADDOW made material misrepresentations about, among other things, the management, operations, and historical performance of those companies.
For example, HADDOW concealed his interest in Bitcoin Store and fabricated the purported “experienced team of leading investment professionals” working at the company. In connection with Bar Works, HADDOW adopted the alias “Jonathan Black” to further hide his role in the schemes. HADDOW claimed that “Jonathan Black” had an extensive background in finance and had a role in setting up “Car Share,” a car-sharing app.
HADDOW solicited investments through his control of InCrowd Equity Inc. (“InCrowd”), which represented itself as a type of crowdfunding portal through which investors could purchase shares of start-ups supposedly vetted by InCrowd. HADDOW did so without disclosing to investors that he had an ownership interest in both InCrowd, on the one hand, and Bitcoin Store and Bar Works, on the other. HADDOW also misappropriated without permission funds purportedly invested in Bitcoin Store and Bar Works for his own use and the use of others.
* * *
RENWICK HADDOW, 48, of the United Kingdom, has been charged in the Complaint with two counts of wire fraud — one relating to the Bitcoin Store scheme and the other relating to the Bar Works scheme. Each charge carries a maximum prison term of 20 years.
Mr. Kim praised the investigative work of the FBI and thanked the Securities and Exchange Commission, which has brought civil actions against the defendant, for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Vladislav Vainberg, Justin V. Rodriguez, and Brooke E. Cucinella are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Champaign Man Arrested, Charged with Kidnapping Visiting ScholarRead the Press Release
URBANA, Ill. – Late today, FBI agents arrested a Champaign, Ill., man, Brendt Christensen, 27, on a criminal complaint that charges Christensen with kidnapping visiting Chinese scholar Yingying Zhang on June 9, 2017. Christensen will remain in law enforcement custody pending his initial federal court appearance in Urbana scheduled on Monday, July 3, at 10:00 a.m.
The arrest and charges were announced by FBI Special Agent in Charge Sean Cox, Springfield Division, and Acting U.S. Attorney Patrick D. Hansen.
The affidavit filed in support of the complaint alleges that on June 9, Christensen was driving the black Saturn Astra which was observed on security camera video as it stopped next to Zhang at the corner of W. Clark St. and N. Goodwin Ave., at approximately 2:00 p.m. Zhang is observed on video entering the front passenger side of the vehicle. The vehicle then pulled away and proceeded northbound on N. Goodwin Ave.
Since Zhang was last seen in the video entering the car, the FBI, the University of Illinois Police Department and the Illinois State Police and local law enforcement have worked around the clock to locate Ms. Zhang and to investigate her disappearance. As part of this effort, the University of Illinois community of faculty, staff and students, and residents of the Champaign-Urbana community have provided information and support to law enforcement in the continuing search for Ms. Zhang.
According to the affidavit, on June 29, 2017, while Christensen was under law enforcement surveillance, agents overheard him explaining that he kidnapped Zhang. Based on this, and other facts uncovered during the investigation of this matter, law enforcement agents believe that Ms. Zhang is no longer alive.
Members of Ms. Zhang’s family, the Chinese consulate, and University of Illinois officials have been advised of Christensen’s arrest and the evidence in the possession of the FBI.
Members of the public are reminded that a complaint is merely an accusation; the defendant is presumed innocent unless proven guilty.
Carolina Healthcare System Agreems to Pay $6.5 Million to Settle False Claims Act AllegationsRead the Press Release
CHARLOTTE, N.C. - U.S. Attorney Jill Westmoreland Rose announced today that the Charlotte-Mecklenburg Hospital Authority, dba Carolinas Healthcare System (CHS), has agreed pay the Government $6.5 million to resolve allegations that the company violated the False Claims Act, by “up-coding” claims for urine drug tests in order to receive higher payment than allowed for the tests.
U.S. Attorney Rose is joined in making today’s announcement by North Carolina Attorney General Josh Stein, and Derrick L. Jackson, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations - Atlanta Region.
“Medical service providers must respect public resources in government health care programs,” said U.S. Attorney Rose. “As more Americans struggle with healthcare costs, we must ensure that our programs are efficient and compliant. For those medical providers who seek to unlawfully and unfairly take advantage of government health care programs, this case resolution should serve as fair warning.”
“Healthcare providers must accurately represent the services they are providing,” said Attorney General Stein. “Up-coding is an unacceptable waste of taxpayer dollars, and my office will not allow it.”
“When health care companies try to boost their profits by billing federal health care programs for more expensive services than they actually provided, the Office of Inspector General will ensure they are held accountable for their deceptive schemes,” said Special Agent in Charge Jackson.
According to court documents, from 2011 to 2015, CHS conducted urine drug tests, categorized as “moderate complexity” tests by the Food and Drug Administration (FDA), but submitted claims that indicated the company had conducted “high complexity” tests. Claims submitted to federal health care programs include a code that identifies the services provided and that triggers a certain payment. The government alleged that CHS engaged in a practice referred to as “up-coding,” by submitting claims using code G0431, which should be used only for tests classified as “high complexity” by the FDA, instead of using code G0434, which is the code for moderately complexity tests, which triggers a payment of approximately $20.00. As a result of CHS’s up-coding practices, the government alleges that federal health care programs paid CHS, and certain facilities under contract with CHS, approximately $80 more per test for the claims submitted with the higher paying code.
The allegations arose from a lawsuit filed by a whistleblower, Mark McGuire (the Relator), a former laboratory director for CHS, under the qui tam provisions of the False Claims Act. Under the False Claims Act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The act also allows the government to intervene and take over the action. The government conducted the investigation and intervened in this action to effectuate the settlement. Mr. McGuire will receive $1,365,000 from the settlement.
The settlement is the result of the coordinated effort between the United States Attorney’s Office for the Western District of North Carolina, the State of North Carolina’s Medicaid Investigations Division and the Department of Health and Human Services Office of the Inspector General.
This case is captioned United States ex rel. Mark McGuire v. The Charlotte-Mecklenburg Hospital Authority, et al., Case No. 3:15-cv-147. The claims resolved in this settlement are allegations only and there has been no determination of liability.
California Man Pleads Guilty to Violating Federal Firearms and Drug Trafficking Laws in New MexicoRead the Press Release
ALBUQUERQUE – Miguel Angel Arias, 26, of Oxnard, Calif., pled guilty today in federal court in Las Cruces, N.M., to violating the federal firearms and drug trafficking laws.
Arias and co-defendant Marco Antonio Valero, 54, also of Oxnard, Calif., were arrested in Jan. 2017, and were charged by criminal complaint with methamphetamine trafficking and firearms offenses on Jan. 26, 2017, in Hidalgo County, N.M. According to the criminal complaint, Special Agents of Homeland Security Investigations (HSI) and officers of the Lordsburg Police Department arrested Arias and Valero finding eight bundles of methamphetamine weighing approximately 4.2 kilograms (9.26 pounds) and a firearm and ammunition in the defendants’ vehicle during a traffic stop in Lordsburg, N.M.
Arias and Valero were subsequently charged on April 19, 2017, in a five-count indictment with participating in a methamphetamine trafficking conspiracy between Jan. 21, 2017 and Jan. 27, 2017. The indictment also charged Arias with possessing methamphetamine with intent to distribute, possessing a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm and ammunition, and Valero with possessing methamphetamine with intent to distribute. At the time, Valero was prohibited from possessing firearms or ammunition because he previously had been convicted on a marijuana trafficking charge.
During today’s proceedings, Arias pled guilty to conspiracy, possession of methamphetamine with intent to distribute, and being a felon in possession of a firearm. In entering the guilty plea, Arias admitted that on Jan. 26, 2017, law enforcement officers found methamphetamine concealed in his vehicle when he was stopped for speeding and following too closely in Lordsburg. Arias further admitted possessing a handgun, which was located under the driver seat of his vehicle, despite the fact that he was prohibited from possessing firearms or ammunition because of his previous felony conviction.
Earlier this month, on June 7, 2017, Valero pled guilty to possessing methamphetamine with intent to distribute, and admitted possessing the methamphetamine that was concealed in the vehicle in which he was a passenger on Jan. 26, 2017.
At sentencing, Arias faces a statutory mandatory minimum penalty of ten years and a maximum penalty of life in federal prison, and Valero faces a maximum penalty of 20 years in federal prison. Both men remain in custody pending sentencing hearings, which have yet to be scheduled.
This case was investigated by Homeland Security Investigations and the Lordsburg Police Department, and is being prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.
Berea Pharmacist Sentenced to 30 Years for Illegally Dispensing Prescription Pills and Pseudoephedrine and Money LaunderingRead the Press Release
Defendant was responsible for illegally distributing hundreds of thousands of pills
and thousands of boxes of pseudoephedrine
LEXINGTON, Ky. – A Berea pharmacist, who was convicted of 71 counts involving the illegal dispensing of oxycodone, hydrocodone, and pseudoephedrine, was sentenced today to 30 years in federal prison.
U.S. District Judge Danny C. Reeves sentenced Lonnie Hubbard, age 41, for 57 counts involving the illegal dispensing of controlled substances without a legitimate medical purpose and dispensing pseudoephedrine knowing it would be used to manufacture methamphetamine; maintaining a drug involved premises; and 13 counts involving money laundering.
Hubbard’s sentencing followed his conviction after an eight-day jury trial.
According to evidence presented at trial, from 2010 until 2015, Hubbard, who owned RX Discount Pharmacy of Berea, sold prescription pain pills, without a legitimate medical purpose, and pseudoephedrine, knowing or having reasonable cause to believe that it was being used to manufacture methamphetamine. Many of the individuals Hubbard sold to were addicts and drug traffickers from Madison, Rockcastle, Laurel, Clay and other counties in central and eastern Kentucky.
The evidence further established that many of Hubbard’s customers visited pain clinics in Florida, Ohio, Tennessee, and Georgia, to obtain illegitimate prescriptions from irreputable clinics. Hubbard would charge $600 to $1,000 to fill the prescriptions, which included excessive amounts of oxycodone. According to trial testimony, Hubbard also sold multiple boxes of pseudoephedrine at a time, at excessive prices, to drug addicts and traffickers. From 2013 to 2015, Hubbard’s pharmacy was the number one independent pharmacy retailer of pseudoephedrine in Kentucky.
Hubbard’s pharmacy clients testified that RX Discount was one of the only places in Kentucky that would fill their out of state prescriptions for pain medication.
More than twenty doctors from Florida, Georgia, and Tennessee, who wrote the illegal prescriptions related to this case, have surrendered their medical license, been indicted, or are currently under investigation.
The evidence also revealed that Hubbard made approximately $2.2 million in cash from the illegal drug sales and used that money to buy three residences, a boat, several luxury vehicles, a motorcycle, two watercraft, and a super ATV.
Hubbard’s wife, Meggan, is currently incarcerated, serving five months’ imprisonment for her involvement in purchasing property with funds from the unlawful sales of the prescription drugs and pseudoephedrine. Her imprisonment will be followed by five months’ home detention. Three other co-defendants have also pleaded guilty and been sentenced.
Carlton S. Shier, IV, Acting U.S. Attorney for the Eastern District of Kentucky; Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration; and Tracey D. Montaño, Special Agent in Charge, IRS, Criminal Investigation Division, jointly announced the sentence. The United States was represented by Assistant U.S. Attorneys Ron Walker, Katherine Crytzer, and Lauren Bradley.
Benton County Drug Dealer Sentenced to 80 Months in Federal PrisonRead the Press Release
EUGENE, Ore. – On Thursday, June 29, 2017, U.S. District Court Judge Michael J. McShane sentenced James Derby Rictor, 43, of Corvallis, Ore., to 80 months in federal prison for possession with intent to distribute methamphetamine.
According to court documents, on May 20, 2016, acting on information Rictor was transporting methamphetamine between Douglas and Benton counties, Douglas County Interagency Narcotics Team detectives stopped his vehicle in Rice Hill, Ore. A police canine alerted to areas in Rictor’s vehicle and trailer where detectives found a cashbox containing methamphetamine and items used to distribute it. When arrested, Rictor was on probation in Benton County for felony theft and failure to appear.
On March 21, 2017, Rictor pleaded guilty to possession with intent to distribute 49 actual grams of methamphetamine.
The case investigated by the Drug Enforcement Administration (DEA), the Douglas County Interagency Narcotics Enforcement Team (INET) and Benton County Sheriff Detective Ed Nowak. It was prosecuted by Frank R. Papagni, Jr., Assistant United States Attorney for the District of Oregon.
Bath County Man Sentenced for Misbranding Drugs and Obstructing JusticeRead the Press Release
LEXINGTON, Ky. – A Bath County, Ky., man, who was found guilty by a jury earlier this year of several federal charges, including manufacturing misbranding products, conspiring to impede an investigation and tampering with a witness, has been sentenced to 72 months in federal prison.
U.S. District Judge Danny C. Reeves sentenced Samuel Girod, 57, for impeding an officer of the United States, obstruction of proceedings before an agency of the United States, witness tampering, failure to appear, and nine violations of the Food, Drug, and Cosmetic Act, in connection with three products he made and distributed. Judge Reeves also ordered Girod to pay $14,239.08 in restitution to his customers, and imposed a term of supervised release of 3 years following his release from prison.
“The essence of this case is found in two fundamental principles: protecting the public and ensuring the integrity of the judicial process,” said Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky. “A federal jury convicted Mr. Girod of conduct that brazenly placed the public at risk, openly hampered law enforcement, and intentionally impeded the judicial process. The interests of everyone are served when criminal conduct undermining these principles is confronted and prosecuted.”
At his trial in March of this year, the evidence established that Girod had been manufacturing and selling homemade products to businesses in numerous states and that the products did not comply with FDA regulations. Specifically, one of his products was dangerous when used in the manner recommended and all three were advertised in a way that did not comply with the law.
In 2013, a federal judge in Missouri ordered Girod to stop manufacturing and selling his products, until his labeling and advertisement of the products met FDA regulations. Despite the court order, Girod continued to manufacture these products and sell them in diana, Wisconsin and Illinois, marketing them in the exact same manner as he had before the court order.
The evidence further established that, as part of the 2013 order, the judge required inspections of Girod’s facility in Bath County, to ensure his compliance with the order. In November 2013, two FDA Consumer Safety Officers attempted to conduct the court-ordered inspection of Girod’s facility, but they were prevented from conducting the inspection by Girod and others on his property.
Then, after the criminal case against him began, Girod tampered with a witness, failed to appear for court proceedings, and was a fugitive for several months.
Acting United States Attorney Shier and Mark McCormack, Special Agent in Charge, FDA Office of Criminal Investigations, jointly announced the sentence. The case was investigated by the FDA, Office of Criminal investigations, and the United States Marshals Service. Assistant U.S. Attorneys Kate K. Smith and Todd Bradbury prosecuted the case on behalf of the federal government.
Baltimore Man Sentenced to 16 Years in Prison for Sex Trafficking of A MinorRead the Press Release
June 30, 2017
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4855
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Steven B. Boyd, a/k/a “Gotti,” age 38, of Baltimore, to 16 years in prison, followed by 10 years of supervised release, for sex trafficking of a minor.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Baltimore Field Office; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, an undercover enforcement operation conducted by Baltimore City Police officers during an investigation of sex trafficking of minors, identified Boyd as a pimp who caused two minor girls to engage in commercial sex acts for his own financial benefit. Boyd knew the two girls were under 18 years of age when he recruited them to work for him. During the investigation, five other women over the age of 18 were also identified as working for Boyd, including two women who traveled from other states to Maryland to work for Boyd.
According to his plea agreement, Boyd paid for hotel rooms for the women to engage in commercial sex acts. Forensic examination of Boyd’s phone, as well as information provided by the women and girls working for Boyd, showed that he also paid for online ads for the women and girls to engage in commercial sex acts. According to the girls and women working for him, Boyd took all the money they made from commercial sex acts. Boyd transported the girls and women on “outcalls,” taking to them to hotel rooms and residences to engage in prostitution, as well as transporting them to other states. Boyd provided the girls and women with telephones to communicate with him about their commercial sex activities.
Boyd remains detained.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
Acting United States Attorney Stephen M. Schenning commended HSI Baltimore, the Baltimore City Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Zachary A. Myers and Rachel M. Yasser, who prosecuted the case.
Attorney General Jeff Sessions: We Cannot Accept these Levels of Violence in ChicagoRead the Press Release
Today Attorney General Jeff Sessions issued the following statement on the unacceptable violence plaguing the City of Chicago and outlined steps that the Department of Justice is taking to increase public safety:
"No child in America should have to walk the streets of their neighborhood in fear of violent criminals, and yet in Chicago, thousands of children do every day. Last year, more than 4,300 Chicagoans were shot, and more than 700 were killed—the deadliest year in two decades.”
“The Trump Administration will not let the bloodshed go on; we cannot accept these levels of violence. That's why, under President Trump's strong leadership, we have created the Chicago Gun Strike Force and are sending 20 more permanent ATF agents to Chicago, reallocating federal prosecutors and prioritizing prosecutions to reduce gun violence, and working with our law enforcement partners to stop the lawlessness.”
“The Trump administration will also continue to pursue every avenue available to ensure that states and cities comply with federal immigration law and protect our citizens—rather than protecting the criminal illegal aliens who prey upon them. So-called "sanctuary" policies tie the hands of law enforcement by rejecting common sense and undermining federal laws that would remove criminal, illegal aliens from the streets and remove them from this country. These policies are opposed by some 80 percent of the American people because they endanger us all by letting dangerous criminals stay in this country that are due to be removed.”
“I want to commend the President for his commitment to enforcing our laws and keeping our communities safe.”
“The most critical factor to our success is the strength, training, and morale of the Chicago Police Department and all of our law enforcement partners. This administration is anxious to work toward this goal.”
“And I am confident in Celinez Nunez, the new Special Agent in Charge of the Chicago office of ATF, who has experienced the tragic consequences of gang violence firsthand. With these new resources, she will help us make Chicago safe again."
BACKGROUND INFORMATION ON CRIME GUN STRIKE FORCE
The Crime Gun Strike Force, a permanent team of special agents, task force officers, intelligence research specialists, and ATF Industry Operations investigators who are focused on the most violent offenders, in the areas of the city with the highest concentration of firearm violence.
The Strike Force became operational June 1, 2017, and consists of 20 additional permanent ATF special agents, 6 intelligence research specialists, 12 task force officers from the Chicago Police Department (CPD), 2 task force officers from the Illinois State Police, and 4 NIBIN specialists (National Integrated Ballistics Information Network).
Atlantic City Man Charged with Receipt of Child PornographyRead the Press Release
CAMDEN, N.J. – An Atlantic City, New Jersey, man appeared in federal court today to face charges that he received images of child sexual abuse, Acting U.S. Attorney William E. Fitzpatrick announced.
Keith M. Clack, 41, is charged by complaint with knowingly receiving images of child pornography. Clack appeared this morning before U.S. Magistrate Judge Karen M. Williams in Camden federal court and was detained.
According to the documents filed in this case and statements made in court:
In May 2017, law enforcement officers conducted an undercover operation in which electronic devices later identified as belonging to Clack were detected accessing and downloading more than 3,500 images of child pornography, including images of infants and toddlers being sexually abused, and child erotica.
Because Clack has a prior conviction for sexual assault on a minor and endangering the welfare of a minor, if convicted of the charge in the complaint, he faces a 15-year mandatory minimum term of imprisonment and a maximum potential sentence of 40 years in prison (increased from the ordinary five-year mandatory minimum and 20-year maximum terms). Clack also faces additional penalties upon conviction, including the greater of a $250,000 fine, or twice the gross gain or loss from the offense, and a term of supervised release of at least five years and up to life.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Atlantic City Police Department, under the direction of Chief Henry White; the Atlantic City Sheriff’s Department, under the direction of Frank Balles; the New Jersey Human Services Police, under the direction of Director Timothy Gallagher; and the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon Tyner, with the investigation.
The government is represented by Assistant U.S. Attorneys Diana Vondra Carrig and Patrick Askin of the U.S. Attorney’s Office in Camden.
Defense Counsel: Thomas Young Esq., Assistant Federal Public Defender, Camden
Atlanta Tax Consultant Guilty of Defrauding the Kentucky Department of Revenue and Signature HealthcareRead the Press Release
LOUISVILLE, Ky. – An Atlanta, Georgia tax consultant pleaded guilty in United States District Court this week, before United States Magistrate Judge Colin H. Lindsay, to mail fraud and money laundering for devising a scheme to defraud the Kentucky Department of Revenue and his client Signature Healthcare, announced United States Attorney John E. Kuhn, Jr.
Todd Griffin, 46, was a tax credit consultant for a company located in Atlanta, Georgia. Between April of 2013, and June of 2014, Griffin fraudulently obtained $499,320 in state tax credits for his client Signature Healthcare (SHC) from the Kentucky Department of Revenue (KDOR). In return for securing the fraudulent tax credits, SHC compensated Griffin with commissions totaling $46,155. Griffin admits that he attempted to conceal his fraud from SHC, to continue to receive their commission and business, by making payments totaling $242,939.92 to KDOR, from his employer’s bank account, using funds derived from the scheme.
According to the plea agreement, Griffin submitted fraudulent documents to SHC to make it appear that the KDOR had approved certifications for eligibility for a tax credit program. Griffin then obtained state tax credits based on the fraudulent documents. The KDOR disallowed the credits and contacted Griffin, who had power of attorney for SHC and paid the disallowed tax credits in order to conceal the fraud.
According to the terms of the plea agreement, Griffin will pay restitution of $46,155 to SHC. At sentencing, the United States will recommend a sentence of 27-33 months in prison. Sentencing is scheduled before Chief Judge Joseph H. McKinley, Jr., on October 2, 2017 in Louisville.
This case is being prosecuted by Assistant United States Attorney Josh Judd and is being investigated by the Kentucky Department of Revenue, Kentucky Attorney General’s Office, Internal Revenue Service, Postal Inspection Service, and the Federal Bureau of Investigation (FBI).
griffin_pleas_6-30-17_0.pdfAthens, Ala., Man Indicted for Trafficking Meth, Illegally Possessing GunRead the Press Release
BIRMINGHAM – A federal grand jury late Thursday indicted an Athens, Ala., man for conspiring to distribute methamphetamine and illegally possessing a firearm, announced Acting U.S. Attorney Robert O. Posey and Drug Enforcement Administration Assistant Special Agent in Charge Bret Hamilton.
A five-count indictment filed in U.S. District Court charges VALENTINE NAVA, 35, with conspiring with others, who are not named in the indictment, to possess with intent to distribute 50 grams or more of methamphetamine in Limestone County between November 2013 and November 2016.
The indictment also charges Nava with two counts of possessing with intent to distribute 50 grams or more of methamphetamine, once on Nov. 7, 2015, and again on Nov. 4, 2016. The indictment further charges Nava with possessing a firearm, a Beretta .40-caliber pistol, on Nov. 4, 2016, in Limestone County, in furtherance of a drug-trafficking offense. It also charges that Nava was a convicted felon when he possessed the gun.
According to the indictment, Nava was convicted in Limestone County Circuit Court in September 2012 for shooting into an occupied vehicle, and was convicted in Madison County Circuit Court in June 2015 for possession of a controlled substance.
The maximum penalty for the conspiracy and the possession with intent to distribute 50 grams or more of methamphetamine charges is 10 years to life in prison and a $10 million fine. The minimum prison penalty for possessing a firearm in furtherance of a drug-trafficking crime is five years in prison, which must be served after completion of any other sentence related to the crime. The maximum penalty for being a convicted felon in possession of a firearm is 10 years in prison and a $250,000 fine.
DEA investigated the case, which Assistant U.S. Attorney Mary Stuart Burrell is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Thursday 29 June 2017
Worcester Man Arrested as Part of a Federal and State Law Enforcement Firearms TakedownRead the Press Release
BOSTON – A Worcester man was arrested today as part of a coordinated federal and state effort that resulted in the arrests of nine individuals who have been charged with firearm-related offenses.
Steven Rivera, 24, was charged by complaint with one count of being a felon in possession of ammunition. Rivera will be detained pending a hearing scheduled for July 13, 2017.
According to the complaint unsealed today, Rivera – who had previously been convicted of multiple felonies, including a drug-related offense – sold two handguns and numerous rounds of ammunition to a cooperating source in Worcester on Feb. 14, 2017. One of the handguns had an obliterated serial number, and the other had been stolen. The complaint also alleges that on Feb. 28, 2017, Rivera sold two other handguns and numerous rounds of ammunition to the same cooperating source. In addition, during a recorded phone call, Rivera offered to sell heroin to the cooperating source and referenced that someone “almost dropped” from some particularly potent heroin.
Eight others were arrested on state charges as part of the investigation into gun and narcotics trafficking in the Worcester area. During the course of the investigation, law enforcement purchased nine guns from nine defendants, including several handguns, two shotguns, and an assault rifle with a 100-round capacity drum magazine; multiple rounds of ammunition; and narcotics. Law enforcement seized several more guns today during the sweep.
The charge of possessing ammunition after being convicted of a felony provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Worcester County District Attorney Joseph D. Early Jr.; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorney William F. Abely of Weinreb’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Woman Sentenced to 150 Months Confinement for Multi-State Methamphetamine (ICE) Distribution ConspiracyRead the Press Release
MOBILE, AL— The Acting United States Attorney, Steve Butler, announces that Jenna Kathleen Fitzhugh-Thomas was sentenced in United States District Court, by Judge Callie V. Granade, on June 27, 2017 to 12 ½ years confinement for being involved and having a leadership role in a multi-state methamphetamine distribution conspiracy. On November 23, 2015, a United States Postal Inspector intercepted a postal parcel shipped from a United States Post Office located in El Segundo, California destined for Fairhope, Alabama. Mobile Police Department dedicated K-9 “ARON” alerted to the odor of narcotics emanating from the parcel. A search warrant of the package revealed 16.93 kilograms of methamphetamine with a purity of 92.8%.
The Postal Inspector contacted the Drug Enforcement Administration (DEA) to pursue an investigation. The DEA investigation revealed that Fitzhugh-Thomas travelled from her home in Pensacola, Florida to Southern California to obtain the 16.93 kilograms of methamphetamine from her suppliers, Fermin Alvarado Ponce and Jennifer Arlene Rosas-Saucedo, were also charged and convicted for their role in the conspiracy. Fitzhugh-Thomas arranged for Carlos Marquis Gross and Kera York to accompany her to Southern California and all three of them were captured on postal video mailing the package from El Segundo, California to Fairhope, Alabama. Gross and York were prosecuted in the conspiracy.
Further investigation revealed that Fitzhugh-Thomas had sent Michael Riker via airline to meet Rosas-Saucedo in Los Angeles, California in March 2016 and Riker received 7.8 pounds of methamphetamine from Rosas-Saucedo. Riker then transported the methamphetamine on an Amtrak train to New Orleans, Louisiana, where he planned to meet Fitzhugh-Thomas. However, the DEA and local officials intercepted arrested Fitzhugh-Thomas and Riker in New Orleans.
In September 2016, the DEA used an informant to purchase 1 kilogram of methamphetamine from Rosas-Saucedo, which again was shipped from Southern California to the Southern District of Alabama
In October 2016, investigative team members of FBI Vancouver authored a federal search warrant for Rosas-Saucedo’s and Ponce’s residence in Vancouver, Washington, as well as a vehicle at the property. A search of the residence revealed eight cellular phones, $7,388.00 in United States currency and multiple notebooks containing drug ledgers. A search of the vehicle, a 2013 Dodge Ram Pickup, yielded approximately $62,000 in United States currency, a stolen handgun and approximately 4.4 pounds of methamphetamine.The case was jointly investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation in Vancouver, Washington, the United States Postal Inspector in Mobile and the Mobile Police Department. Assistant United States Attorney George May prosecuted the case.
Acting United States Attorney Steve Butler stated, “This case represented the quintessential example of the partnership between different federal law enforcement agencies as well as the cooperation between federal and local law enforcement agencies. I laude the efforts of law enforcement in shutting down this significant methamphetamine trafficking organization.”
Woman Sentenced to 11 Years in Prison for Hobbs Act Robbery and Related Gun OffensesRead the Press Release
St. Thomas, USVI – On June 26, 2017, District Court Judge Curtis V. Gomez sentenced Aracelis N. Ayala a/k/a "Gordita" a/k/a "Fluff," 34, of St. Croix, to 11 years in prison and five years of supervised release for Hobbs Act robbery and related gun offenses, Acting United States Attorney Joycelyn Hewlett announced. Judge Gomez also ordered Ayala to perform 400 hours of community service and pay a $300 special assessment.
On February 23, 2017, a federal jury found Ayala guilty of one count of Hobbs Act robbery, one count of conspiracy to commit Hobbs Act robbery, one count of brandishing a firearm during a crime of violence, and one count of robbery in the first degree.
According to the evidence presented at trial, Ayala and two men conspired to rob Signature Jewelers on August 19, 2015. Ayala provided cash, rented a vehicle, and secured hotel rooms on St. Thomas. During the robbery Ayala’s co-conspirators brandished a handgun to intimidate the store employees and used duct tape to bind and gag them before fleeing with cash and merchandise.
Other members of the conspiracy, Turrel Thomas, 21, and Raheem Miller a/k/a "Caesar," 24, pleaded guilty to Hobbs Act robbery and related firearm offenses. They were remanded to the custody of the U.S. Marshals Service, and are awaiting sentencing on July 5, 2017.
This case is the result of an investigation by the Federal Bureau of Investigation and the Virgin Islands Police Department. It was prosecuted by Assistant United States Attorneys Anna A. Vlasova and Sigrid Tejo-Sprotte.
Wheeling man indicted on firearm, methamphetamine chargesRead the Press Release
WHEELING, WEST VIRGINIA - A Wheeling, West Virginia, man has been indicted by a federal grand jury sitting in Clarksburg on firearm and drug charges, Acting United States Attorney Betsy Steinfeld Jividen announced.
Peter Hankish, age 57, was indicted on one count of “Unlawful Possession of a Firearm” and one count of “Possession with Intent to Distribute Methamphetamine.” Hankish, having previously been convicted of Theft in the Camp Lejeune Marine Corps General Court, allegedly possessed a 7.62 caliber rifle. Hankish is also accused of possessing methamphetamine. The crimes are alleged to have occurred in April 2017 in Ohio County.
Assistant U.S. Attorney Randolph J. Bernard is prosecuting the case on behalf of the government. The Ohio Valley Drug & Violent Crime Task Force, a HIDTA-funded initiative, is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
West Virginia Man Charged with Traveling to Western PA for Sex with a MinorRead the Press Release
PITTSBURGH, PA – A resident of Huntington, West Virginia, has been indicted by a federal grand jury in Pittsburgh on charges of inducing a minor to engage in illegal sexual activity and travel with intent to engage in illicit sexual conduct, Acting United States Attorney Soo C. Song announced today.
The two-count indictment, returned on June 27, named Steven Michael Pursell, age 34, of Huntington, WV.
According to the indictment, from on or about March 20, 2017, until on or about March 21, 2017, Pursell traveled in interstate commerce for the purpose of engaging in illicit sexual conduct with another person, a minor under 18 years of age.
The law provides for a maximum total sentence of not more than 30 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the indictment in this case. This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Utica Man Convicted of Heroin ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Yesterday, following a two-day trial, a federal jury in Syracuse, New York, convicted Luis Estela, 53, of Utica of conspiracy to possess with intent to distribute heroin, announced United States Attorney Richard S. Hartunian and United States Drug Enforcement Administration (DEA) Special Agent in Charge James J. Hunt.
The evidence at trial established that in July 2015, Mr. Estela became a member of a heroin trafficking organization operating in Utica and Rome, New York. In particular, the evidence showed that the defendant helped the organization package heroin and assisted in selling drugs along the Erie Canal Trail in Rome.
Chief United States District Judge Glenn T. Suddaby will sentence Estela on November 9, 2017. Mr. Estela faces up to 20 years in prison, a fine of up to $1,000,000, and a term of supervised release of at least 3 years and up to life.
This case was investigated by the DEA, New York State Police-Community Narcotics Enforcement Team-Central (NYSP-CNET), City of Rome Police Department, City of Utica Police Department, Oneida County Sheriff’s Office, Oneida County District Attorney’s Office, U.S. Marshals Service, U.S. Border Patrol, U.S. Department of Homeland Security Investigations, Onondaga County Sheriff’s Office, and Onondaga County District Attorney’s Office. The case is being prosecuted by Assistant United States Attorneys Robert Levine and Carla Freedman.
Undocumented Alien Convicted of Assaulting Federal OfficerRead the Press Release
LAREDO, Texas – A 54-year-old undocumented Mexican National has been convicted of assaulting a Border Patrol agent, announced Acting U.S. Attorney Abe Martinez. A federal jury in Laredo returned the verdicts today against Miguel Cabrera-Rangel following a two-day trial and less than five hours of deliberation.
During trial, the jury heard testimony from a Border Patrol (BP) agent who was investigating a report of possible undocumented aliens on a ranch near Hebbronville. He came upon a group of aliens and attempted to apprehend them. Cabrera was one of them and engaged in a struggle with the agent and gained control of the agent’s service flashlight. Cabrera punched the agent in the face and struck him with the flashlight, causing a bilateral fracture of the nose along with lacerations and contusions. Cabrera fled, but was later apprehended on a fishing boat in Copano Bay off Corpus Christi.
U.S. District Judge Diana Saldaña presided over the trial will set sentencing at a later date. At that time, Cabrera faces up to eight years imprisonment and a possible $250,000 maximum fine. Cabrera has been in custody since his arrest where he will remain pending that hearing.
FBI investigated the case in conjunction with BP. Assistant U.S. Attorneys Michael Bukiewicz and Christopher Coker prosecuted the case.
Two Presidio County Officials Arrested on Federal Bribery Related ChargesRead the Press Release
In Midland today, FBI agents arrested 55–year-old Lorenzo Padilla Hernandez, Presidio County Precinct 3 Commissioner, and 65-year-old Carlos Eduardo Nieto, Special Projects Coordinator for the City of Presidio and Presidio Independent School District trustee, on federal bribery, fraud, and deprivation of honest services charges announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Emmerson Buie, Jr., El Paso Division.
A six-count federal grand jury indictment, unsealed today, charges Hernandez with two counts of bribery concerning programs receiving federal funds; conspiracy to commit mail and wire fraud; and, two counts of wire fraud and the deprivation of honest services. The indictment charges Nieto with one count of conspiracy to commit mail and wire fraud and one count of mail fraud and the deprivation of honest services.
The indictment alleges that since August 2015, the defendants conspired to defraud Presidio County and its citizens of money by corruptly ensuring, through their positions and influence, that a particular company would be awarded a County contract for a document management system. The indictment further alleges that Hernandez and Nieto solicited and received $19,800 and $8,300, respectively, for their efforts. On May 9, 2017, Hernandez voted to award the contract to that particular company.
All of the charges, with the exception of the bribery charges, call for up to 20 years in federal prison upon conviction. Each bribery charge calls for up to ten years in federal prison upon conviction.
Both defendants remain in federal custody. Initial appearances before United States Magistrate Judge David Counts are scheduled for tomorrow at 10:30am in Midland. No other court dates are scheduled.
“The individuals charged hold positions of public trust and will be held accountable. The FBI is committed to aggressively investigating allegations of public corruption and, where warranted, seeking appropriate federal charges,” stated Emmerson Buie, Jr., Special Agent in Charge of the El Paso Division of the FBI.
The FBI with assistance from Homeland Security Investigations (HSI) and the Texas Department of Public Safety Criminal Investigations Division is investigating this case. Individuals who have first-hand information about corruption, fraud, or bribery related to Presidio County are urged to contact the FBI at (915) 835-5000. Assistant United States Attorneys James J. Miller, Jr., and William F. Lewis are prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Three men plead guilty to distributing methamphetamineRead the Press Release
COEUR D’ALENE – Andrew Byers, 27, of Craigmont, Idaho, Brice Heimgartner, 25, of Clarkston, Washington, and Salvador Saucedo, 27, of Milton-Freewater, Oregon, pleaded guilty this week to federal drug charges, Acting U.S. Attorney Rafael Gonzalez announced. Byers, Heimgartner and Saucedo pleaded guilty to conspiracy to distribute methamphetamine. Byers also pleaded guilty to possession with intent to distribute methamphetamine. Federal grand juries indicted the men in February and May 2017.
According to court documents, the Federal Bureau of Investigation and the Quad Cities Drug Task Force began investigating methamphetamine distribution in Lewiston, Clarkston, and within the boundaries of the Nez Perce Indian Reservation. During their investigation, law enforcement officers seized over 400 grams of pure methamphetamine, heroin and cash, during searches and arrests occurring in Idaho, Washington, and Oregon. The Nez Perce County Prosecutor’s Office coordinated with the U.S. Attorney’s Office to charge two of the men and bring them into federal custody. “My office will continue to work with the Quad Cities Drug Task Force and the U.S. Attorney’s Office to aggressively prosecute drug dealers who harm our community,” said Nez Perce County Prosecutor, Justin Coleman.
Sentencing for Byers, Heimgartner, and Saucedo is set for September 26 and 27, 2017, before Senior United States District Judge Edward J. Lodge. Co-defendants, Robin Rose and Kyle Seidel, each 31 and from Lewiston, Idaho, are set for trial on July 25, 2017.
Conspiracy to distribute methamphetamine is punishable by at least ten years and up to life in prison, at least five years of supervised release, a $10,000,000 fine, and a $100 special assessment.
Several federal, state and local agencies participated in the investigation and prosecution, including: Federal Bureau of Investigation, Nez Perce County Prosecutor’s Office, Lewiston Police Department, Idaho State Police – District 2, Nez Perce Tribal Police, Blue Mountain Enforcement Narcotics Team, and the Quad Cities Drug Task Force.
Texas Man Charged with Transporting Woman to Sex Traffic Her in Hobbs, New MexicoRead the Press Release
ALBUQUERQUE – Markell Quashan Sweargin, 19, of Lubbock, Tex., made his initial appearance in federal court in Las Cruces, N.M., on a criminal complaint charging him with transporting a person in interstate commerce for the purpose of forcing the person to engage in a commercial sex act. Sweargin remains in federal custody pending a preliminary hearing and detention hearing, both of which have yet to be scheduled.
The criminal complaint alleges that on June 14, 2017, officers of the Hobbs Police Department arrested Sweargin on state charges after responding to a domestic disturbance call from a woman (victim) who alleged that Sweargin strangled and assaulted her during an altercation arising from her refusal to engage in a sexual act with another man for money.
According to the criminal complaint, Sweargin, the victim and another person traveled from Lubbock to a hotel in Hobbs, N.M. Once in the hotel room, Sweargin allegedly attempted to coerce the victim into having sex with other men for money, and became angry when the victim refused. The complaint further alleges that when Sweargin and the other person left the hotel room, a man came to the room with the expectation of having sex with the victim. When the victim refused to have sex with him, the man departed the room after telling the victim that he had come in response to an advertisement on a webpage known to advertise prostitution services. The complaint alleges that when Sweargin returned to the hotel room, he was very angry because the victim did not have sex with the man in return for money, began to hit the victim, and blocked the door to the hotel room to prevent the victim or the third person from leaving. When Sweargin stepped away from the door, the victim and third person fled.
If convicted of the charge in the criminal complaint, Sweargin faces a mandatory minimum penalty of 15 years and a maximum penalty of life in federal prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Las Cruces office of the HSI and the Hobbs Police Department. Assistant U.S. Attorney Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Strip Club Operator Sentenced to Prison for Promoting Prostitution Scheme and Engaging in Tax FraudRead the Press Release
PORTLAND, Ore. – On Wednesday, June 28, 2017, U.S. District Judge Michael H. Simon sentenced Kandace Desmarais, 65, and her brother, Gilbert "Mace" Desmarais, 52, to two years in federal prison for their roles in long-running schemes to promote prostitution at 10 Portland-area strip clubs and adult video stores and for conspiring to evade more than $728,000 in federal income taxes by concealing from the Internal Revenue Service (IRS) $2.6 million in income from strip shows and prostitution.
The sentences were handed down just over two months after Judge Simon sentenced Lawrence G. Owen – the defendants’ stepfather and the ringleader of the conspiracies – to 30 months in prison on the same charges. Gary Bryant, a manager of several of the strip clubs in question, pleaded guilty to the same charges in March 2016 and will be sentenced on August 28, 2017.
In imposing the sentences on Kandace and Gilbert Desmarais at the end of today’s 2.5-hour joint-sentencing hearing, Judge Simon rejected the defendant’s pleas for probation. The court emphasized the scope of the family’s tax frauds and illegal prostitution activities, noting that they constituted the largest such schemes in the district in recent years.
The defendants, together with Larry Owen, Gary Bryant, and several other members of the Desmarais family, owned and operated strip clubs called The Landing Strip, Oh! Zone, Sugar Shack, Sugar Shack Too, Peek-A-Boos, Dillingers Pub, Tommy’s, and Tommy’s Too, and adult video stores called Video Visions and Video Visions Plus. Collectively, these businesses had 19 private show rooms on their premises, each furnished with a small couch, a chair, a table, and a stereo. Gilbert Desmarais was personally responsible for overseeing the Landing Strip and the Oh! Zone, which was the site of several such show rooms.
Customers paid at least $160 for half-hour private shows with dancers in the show rooms, and the defendants’ businesses took $60 from each transaction. During many of these private shows, with the defendants’ knowledge and encouragement, the dancers performed acts of prostitution with the customers. From January 2006 through June 2010, strippers (and, on occasion, visiting prostitutes) engaged in tens of thousands of acts of prostitution at these businesses.
The defendants and their coconspirators cheated the IRS out of $728,000 in income taxes by engaging in a complicated scheme to conceal club revenue and their personal income. They established a "cash only" policy at the strip clubs, destroyed daily records of cash receipts, transported the weekly cash receipts to the home of one of the family members, gave their tax return preparer false income numbers, and filed false income tax returns. In these ways, they concealed $2.6 million in revenues from the IRS between 2006 and mid-2010. Kandace Desmarais served as the principal bookkeeper for these clandestine and illicit profits, carefully recording weekly revenues and, when necessary, rebuking store-level managers for failing to adequately record how often the strippers performed shows in the private rooms.
In June 2010, IRS agents and law enforcement personnel from the Portland Police Bureau and the Clackamas County Sheriff’s Office executed federal search warrants at the conspirators’ 10 strip clubs and video stores and at their homes. Officials seized 85 boxes of records and $843,000 in cash. $557,000 of the cash was taken from the residence of Kandace Desmarais and $180,000 from the home of another family member. All funds have been forfeited to the United States pursuant to plea agreements with the U.S. Attorney’s Office.
The conspirators operated two strip clubs and a video store on the Town Plaza property they owned in the Cully neighborhood in northeast Portland. In July 2015, they sold the Town Plaza property to a coalition of nonprofits and neighborhood groups for $2.3 million. Pursuant to plea agreements, the net proceeds of the sale have been placed in escrow to pay the federal income taxes—including penalties and interest—the conspirators still owe to the IRS.
"The two-year sentences for Kandace and Gilbert Desmarais reflect the seriousness of these tax- and prostitution-related crimes," said Billy J. Williams, United States Attorney for the District of Oregon. "The fact that these defendants and their coconspirators were forced to forfeit more than $800,000 in cash and the proceeds of the sale of the Town Plaza to the IRS underscores our ongoing commitment to force criminals to disgorge their illegal profits and to compel tax cheats to pay their fair share," Williams continued. "As always, this office and the IRS will continue to work together to identify and prosecute those who do not."
This case was investigated by Special Agents of the IRS Criminal Investigations with assistance from the Portland Police Bureau and the Clackamas County Sheriff’s Office, and was prosecuted by Seth D. Uram and Ryan W. Bounds, Assistant United States Attorneys for the District of Oregon.
Statement of Acting U.S. Attorney Joon H. Kim on Jury Verdict Finding 650 Fifth Avenue and Other Properties Forfeitable to the United StatesRead the Press Release
“For over a decade, hiding in plain sight, this 36-story Manhattan office tower secretly served as a front for the Iranian government and as a gateway for millions of dollars to be funneled to Iran in clear violation of U.S. sanctions laws. In this trial, 650 Fifth Avenue’s secret was laid bare for all to see, and today’s jury verdict affirms what we have been alleging since 2008: that through all the efforts to sanction and isolate Iran, a state sponsor of terrorism, the owners of 650 Fifth Avenue gave the Iranian government a critical foothold in the very heart of Manhattan through which Iran successfully circumvented U.S. economic sanctions. The jury’s verdict finding forfeitable a building valued at over $500 million dollars, as well as other real estate and funds, represents the largest civil forfeiture jury verdict and the largest terrorism-related civil forfeiture in U.S. history. This verdict not only vindicates the exemplary work of all the career prosecutors and law enforcement partners who have doggedly pursued this case for almost a decade, but importantly, it also allows for substantial recovery for victims of Iran-sponsored terrorism.”
Self-proclaimed Vagos motorcycle club member sentenced to ten years in federal prisonRead the Press Release
David Allen Oney Jr., 35, of Nampa, Idaho, was sentenced to 120 months in federal prison today for distributing methamphetamine, Acting U.S. Attorney Rafael Gonzalez announced. Oney will have to serve a five-year period of supervised release following his term of imprisonment and pay a $100 special assessment. Oney entered his guilty plea to the charge on March 28, 2017.
According to court documents, Oney, a self-proclaimed member of the Vagos motorcycle club, sold over 100 grams of pure methamphetamine over the course of three separate drug buys. During the last controlled purchase of methamphetamine, law enforcements agents discovered that Oney had brought his young daughter along. Oney had been held at the Ada County Jail while awaiting sentencing. During that time, Oney threatened the life of a deputy, struck another inmate in the head and attempted to manipulate his jail cell door, among other violations.
This case was investigated by the Treasure Valley Metro Violent Crime Task. The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
Salvadoran National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Salvadoran national was charged today in federal court in Boston with a federal immigration crime.
Amilcar Menjivar Umana, 38, was charged today with one count of illegal reentry after deportation. Menjivar Umana was previously deported on March 20, 2014. On May 12, 2017, law enforcement encountered Menjivar Umana and determined him to be illegally present in the United States.
Menjivar Umana faces a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit is prosecuting the case.
Sacramento Man Indicted for Credit Card Fraud, Stolen Mail, and Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Ahmad Nassar, 30, of Sacramento, charging him with access device fraud, possessing stolen mail, and being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on May 10, 2017, Nassar possessed numerous unauthorized or counterfeit credit and debit cards, a loaded firearm not registered to him, and stolen U.S. mail. Nassar allegedly conducted unauthorized transactions using credit and debit card accounts opened in others’ names.
This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento County Department of Human Assistance. Assistant U.S. Attorney Matthew M. Yelovich is prosecuting the case.
If convicted, Nassar faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for the access device fraud and firearms counts, and a maximum statutory penalty of five years in prison and a $250,000 fine for the stolen mail count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Ringleader of a Multi-Million Dollar Federal Prison Sentencing Reduction Fraud Scheme Sentenced to More Than 19 Years in PrisonRead the Press Release
Alvin James Warrick, 40, of Beaumont, Texas, and Colitha Patrice Bush, 36, of Port Arthur, Texas were sentenced today in Miami, Florida, by U.S. District Judge Joan Lenard of the Southern District of Florida, to 235 months and 96 months in prison, respectively, with an order for a forfeiture money judgment in the amount of over $4.4 million to follow. Warrick and Bush previously pled guilty to wire and mail fraud conspiracy charges in connection with a federal prison sentencing scheme that targeted federal inmates and their families in Miami-Dade County and elsewhere by promising them assistance in obtaining a Rule 35 sentencing reduction, in exchange for money.
Rule 35 of the Federal Rules of Criminal Procedure allows the court, upon the government’s motion, to reduce a defendant’s sentence if the defendant is found to have provided substantial assistance in investigating or prosecuting another person. Neither the government nor the court system charges inmates or their relatives a fee for requesting a sentencing reduction when an inmate provides substantial assistance.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Robert A. Bourbon, Special Agent in Charge, Department of Justice, Office of the Inspector General (DOJ-OIG), and Perrye K. Turner, Special Agent in Charge, Federal Bureau of Investigation (FBI), Houston Field Office, made the announcement.
According to court documents, from 2009 through September 7, 2016, Warrick, Bush, Shepherd, and others held themselves out as owners and operators of Private Services, a company that reportedly worked with a network of informants and law enforcement personnel to identify and provide information and third party cooperation that could be credited to federal inmates in Rule 35 proceedings. Using aliases such as “Peter Candlewood,” “Diane Lane,” and “Diane Rice,” the defendants repeatedly targeted federal inmates and their families by phone, text, email, mail, and in-person meetings, during which they promised that they could provide substantial assistance services, which would be used to help secure the early release of the inmates. In return, the defendants required relatives of the federal inmates to make periodic payments via cash, check, wire, Western Union, and MoneyGram, in order for the third party cooperation process to supposedly begin. Overall, more than $4.4 million was paid to the defendants by at least twenty-two victims, several of whom addressed the Court during Warrick and Bush’s sentencing hearing.
As part of the scheme, Warrick and Bush also provided fake invoices and fraudulent documents allegedly showing signed agreements between various U.S. Attorney’s Offices, including the Eastern District of New York and the Southern District of New York, and a company affiliated with Private Services. In fact, the agreements were fake, the prosecutors’ signatures were forged, and no substantial assistance was ever provided on behalf of these inmates. Instead, Warrick, Bush and Shepherd simply received payments from relatives of federal inmates, and used the fraudulently obtained funds for their personal use and benefit, including the purchase of luxury automobiles, vacations, and gambling activities.
In addition to their sentences for the Southern District of Florida matter (Case No. 16-CR-20698-JAL), Warrick and Bush were also sentenced in a related case originally brought in the Eastern District of Texas, and subsequently transferred to Florida (Case No. 17-CR-20194-JAL). On May 24, 2017, co-conspirator Roland Bennett Shepherd, 32, of Houston, Texas, was also sentenced by U.S. District Judge Joan Lenard of the Southern District of Florida to 28 months’ imprisonment, after having previously pled guilty to a single charge of conspiracy to commit mail fraud and wire fraud, in connection with his participation in the multi-year sentencing reduction fraud scheme.
Mr. Greenberg commended the investigative efforts of the DOJ-OIG, the FBI, the Houston Police Department, and the U.S. Attorney’s Offices in the Eastern District of New York, Northern District of New York, Southern District of New York, Eastern District of Texas, and Eastern District of Virginia, who provided significant and valuable support to this joint investigation. The Southern District of Florida case was prosecuted by Assistant United States Attorney Anne P. McNamara. The Eastern District of Texas case was jointly prosecuted by Assistant United States Attorneys Robert L. Rawls and Anne P. McNamara.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Pueblo Man Sentenced to 14 Years in Federal Prison for Firearm and Drug CrimesRead the Press Release
DENVER – Daniel Ray Dace, age 25, of Pueblo, was sentenced today by U.S. District Court Judge R. Brooke Jackson to serve 168 months (14 years) in federal prison, followed by 3 years on supervised release for firearm and drug related crimes, the U.S. Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced. Dace, who appeared at the hearing in custody, was remanded at its conclusion.
Dace was indicted by a federal grand jury in Denver on December 20, 2016. He pled guilty to being a felon in possession of firearms, possession of a controlled substance with the intent to distribute, and knowingly carrying a firearm during and in relation of a drug trafficking crime, on April 13, 2017, and was sentenced by Judge Jackson today, June 29, 2017.
According to the stipulated facts contained in the plea agreement, as well as other court documents, on October 4, 2016, the Pueblo Police Department received a report from a caller who observed a red Ford pick-up truck parked in front of what he thought was a vacant house. The caller also saw flashlights inside and around the house. The Pueblo Police Department responded, saw the red truck, and pulled it over. During the traffic stop Dace, the passenger, gave a fake name, and when confronted he admitted he had an outstanding arrest warrant. When he was taken into custody police found a total of $1,812 in cash on the defendant’s person. Located in Dace’s backpack following an inventory search was a .380 caliber semi-automatic pistol and several clear plastic baggies.
The driver of the red truck consented to a search. In the center console officers located another firearm, a .45 caliber pistol. Under the center console – next to where the defendant had been sitting – was a metal box, inside the box was a digital scale, more baggies, and in three separate baggies approximately 331 grams of 99.5% pure methamphetamine.
While detained in Pueblo County Jail, the defendant made several monitored phone calls to his mother, asking her to “go get my guns.” He wanted his guns sold so he could put money “on my book” which is an account used to purchase personal items from a prison store. Agents and officers executed a search warrant on the mother’s residence, and recovered seven additional firearms, all of which he had control over prior to being held in jail. Prior to Dace possessing the firearms, he had been convicted of Possession of a Controlled Substance with the Intent to Distribute, and was given a deferred sentence, making him a prohibited person not allowed to possess firearms. The defendant carried two of his firearms, the .380 caliber pistol and the .45 caliber pistol for protection of himself, the narcotics, and the money from his drug trafficking.
“For a community to breathe and be healthy again, certain people just need to be removed,” said Acting U.S. Attorney Bob Troyer. “With our exceptional partners, we forensically identify those certain people and remove them for good.”
“Dace was well known in the Pueblo community as a dealer in illegal narcotics. Now, he is well known for a long prison sentence,” said ATF Special Agent in Charge Debora Livingston. “We will continue to work closely with Pueblo PD and the U.S. Attorney’s Office to chip away at Pueblo’s drug trafficking and violent crime until these criminals are behind bars or take up shop elsewhere. They aren’t welcome in Pueblo.”
This case was investigated by the Pueblo Police Department and the ATF. The defendant was prosecuted by Assistant U.S. Attorney Kurt Bohn.
Previously Convicted Felon Sentenced to 46 Months in Federal Prison for Possessing FirearmsRead the Press Release
Concord, N.H.—John J. Farley, Acting United States Attorney for the District of New Hampshire, announced that Micky Garst, Jr., 26, previously of Manchester, New Hampshire, was sentenced to spend 46 months in federal prison for his possession of two stolen firearms.
According to court documents and statements in court, on the morning of August 19, 2015, Manchester Police investigating a reported fight outside a pizza parlor encountered a large crowd, including the defendant and a female companion. After investigating the source of the conflict, officers asked to search the companion’s vehicle, and she consented. Located in the trunk was a Colt .45 handgun that had been reported stolen from a home in Manchester four days earlier. Blood samples from the scene of the theft were later confirmed by the state crime lab as a match with Garst. Later, in February 2016, Garst took a Ruger firearm from the home of an acquaintance. The firearm was recovered after Garst stashed it in the dumpster of a nearby convenience store. Garst is prohibited from possessing firearms under federal law as a result of a prior felony conviction.
Garst, who pleaded guilty on March 16, 2017, will spend three years on supervised release after he is released from prison. Garst has been in state custody on a parole violation based on the above conduct since his arrest in March 2016. His federal sentence will run consecutive to his remaining undischarged time in state prison.
This matter was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Manchester Police Department, with assistance from the New Hampshire State Police Forensic Laboratory. The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes. The case was prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
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Postal Worker Pleads Guilty to Stealing Money OrdersRead the Press Release
ALBANY, NEW YORK – Naisha Wiley, age 34, of Schenectady, New York, pled guilty today to stealing $10,000 worth of money orders from her employer, the United States Postal Service (USPS).
The announcement was made by United States Attorney Richard S. Hartunian; Eileen Neff, Special Agent in Charge of the Northeast Area for the USPS, Office of the Inspector General; and Inspector in Charge Shelly A. Binkowski, United States Postal Inspection Service, Boston Division.
In pleading guilty, Wiley admitted that while working part-time as a retail clerk in Post Offices in Montgomery County in 2016 and 2017, she stole USPS money orders with a total value of $10,000. She also admitted to stealing gift cards out of the mail.
Wiley faces up to 10 years in prison, up to 3 years of post-imprisonment supervised release, and a maximum $250,000 fine when she is sentenced on October 10, 2017 by Senior United States Judge Thomas J. McAvoy. She may also be ordered to pay restitution to her victims. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the USPS, Office of the Inspector General, and the United States Postal Inspection Service, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Portland Company Sentenced for Lacey Act ViolationsRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that ISF Trading Company (“ISF”) of Portland, was sentenced yesterday in U.S. District Court by Judge John A. Woodcock, Jr. to one year of probation for violating the Lacey Act. ISF was also fined $552,500 and ordered to forfeit $297,500. The Lacey Act is a federal law that prohibits trade in wildlife that has been illegally taken, possessed, transported or sold.
ISF is a Maine company engaged in the business of buying seafood, including live sea urchins, from Maine and Canadian suppliers, processing that seafood, and selling it to domestic and foreign, mostly Asian, markets. According to court records, ISF bought Canadian sea urchins from a Canadian supplier, TGK Fisheries of Grand Manan that was not authorized under Canadian law to export them to the United States. ISF brought them across the Calais Port of Entry under the false label of another Canadian supplier, Matthews Seafood (“Matthews”) of New Brunswick, Canada. At times, Matthews was authorized to export them. On seven occasions between December 31, 2010 and February 1, 2011, ISF illegally imported a total of about 48,000 pounds of sea urchins, whose processed roe was worth at least $172,800, from TGK through Calais under the Mathews label. The scheme was discovered in February 2011, when ISF attempted to import 8,000 pounds of sea urchins, using an invoice in the name of Matthews. A U.S. Customs and Border Protection Officer became suspicious when he noticed that the totes containing the sea urchins did not have the labels required by law.
In pronouncing sentence, Judge Woodcock observed that ISF’s actions violated laws in two countries that were designed to protect the environment, marine resources and food safety. Those actions took advantage of the good faith of the citizens of those two countries and merited a significant penalty.
James Landon, Director of NOAA's Office of Law Enforcement stated that "illegal imports of fish or fish products harm honest fishermen, undercut importers and exporters who follow the law, and distort fair trade. OLE will continue to work with our counterparts at the Canadian Border Services Agency, Canadian Food Inspection Agency and Fisheries and Oceans Canada to combat illegal importation of fish or fish products across the US-Canada border."
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the National Oceanographic and Atmospheric Administration’s Fisheries Enforcement, with assistance from U.S. Customs and Border Protection’s Office of Field Operations, the Canadian Border Services Agency, the Department of Fisheries and Oceans Canada, and the Canadian Food Inspection Agency.
Ponderay Man Sent to Prison on Federal Child Pornography ChargeRead the Press Release
COEUR D’ALENE – Aragon Miller, 43, of Ponderay, was sentenced yesterday in United States District Court to 57 months in prison, followed by ten years of supervised release, and a $5100 special assessment, for possession of child pornography, Acting U.S. Attorney Rafael Gonzalez announced. Miller pleaded guilty on March 1, 2017.
According to the plea agreement and statements made in court, as far back as 2014, law enforcement officers observed that a computer in the Sandpoint area was making images of children engaged in sexually explicit conduct available on the internet. Based upon this evidence, members of the Idaho Internet Crimes Against Children Task Force were able to determine that the computer was located in the defendant’s Ponderay residence and obtained a state search warrant. Miller was present during the search. He admitted that he used the internet and child pornography search terms, to download images he knew were illegal. When agents examined a computer seized from Miller’s residence they recovered 169 images and 21 videos of minors engaged in sexually explicit conduct. Miller also used software to delete these images after he viewed them.
Senior United States District Court Judge Edward J. Lodge also ordered Miller to forfeit a hard drive he used during the commission of the crime and to pay $5000 in restitution to a child depicted in several images that Miller possessed. Miller will be required to register as a sex offender because of his conviction.
This case was investigated by the Idaho Internet Crimes Against Children Task Force, a coalition of federal, state, and local law enforcement agencies who investigate and prosecute individuals who use the internet to criminally exploit children.
The case was brought as a part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources”
Pleasants County woman indicted on charges involving the theft of social security benefitsRead the Press Release
CLARKSBURG, WEST VIRGINIA - A St. Marys, West Virginia woman was indicted by a federal grand jury on theft charges, Acting United States Attorney Betsy Steinfeld Jividen announced.
Anne Louise Hall, age 56, was indicted on one count of “False Statement for Use in Determining Supplemental Security Income Benefits,” one count of “Concealment of Event Affecting Right to Receive Supplemental Security Income Benefits,” one count of “False Statement to Federal Agent,” and one count of “Theft of Government Money.”
Hall allegedly made false claims in filing for social security benefits, which led to her allegedly fraudulently collecting more than $56,000 in benefits. The crimes allegedly occurred from October 2006 to March 2017.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Social Security Administration Office of Inspector General is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia District Attorney Rufus Seth Williams Pleads Guilty to Federal Bribery ChargeRead the Press Release
PHILADELPHIA – Philadelphia District Attorney Rufus Seth Williams today admitted that he accepted tens of thousands of dollars’ worth of concealed bribes in exchange for his agreement to perform official acts, defrauded a nursing home and family friends of money earmarked for a family member’s care, and used political action committee funds and official government vehicles for his personal benefit, Acting New Jersey U.S. Attorney William E. Fitzpatrick announced.
Williams, 50, of Philadelphia, pleaded guilty before U.S. District Judge Paul S. Diamond to Count One of a superseding indictment charging him with travel and use of interstate facilities to promote and facilitate bribery contrary to Pennsylvania law. Williams was ordered detained until his sentencing, which is set for Oct. 24, 2017.
“The indictment alleged that, as District Attorney, Mr. Williams compromised himself and his elected office by using his office to help those willing to secretly pay him with valuable items like money, trips, and cars, as well as defrauding his political action committee and others,” Acting U.S. Attorney Fitzpatrick said. “Today, Mr. Williams admitted all of that conduct. He admitted that he misused the resources of the Philadelphia DA’s Office and his influence as an elected official for personal gain. He admitted defrauding his political action committee. He admitted defrauding his mother’s nursing home and her friends. Williams owed the public a duty to act according to the highest legal and ethical standards. Seth Williams breached that trust; he abused his power; and he will now be held accountable for his actions.”
“From his first day in office, Seth Williams sought to portray himself as a man of the people – a principled public servant and reformer, devoted to the cause of justice,” said Michael Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Mr. Williams talked a good game. Unfortunately, ‘talk’ is all it was. In reality, he gamed the system. Feeling entitled to a certain lifestyle, he traded on his title of District Attorney in exchange for financial favors large and small. We’re gratified that Mr. Williams elected to change his plea, and admit to such brazen misconduct.”
According to documents filed in this case and statements made in court:
From July 2010 through May 2015, Williams had an arrangement with Mohammad N. Ali (identified in the indictment as “Business Owner #1) in which Williams, while serving as the Philadelphia District Attorney, accepted trips, money, and other things of value in exchange for performing and agreeing to perform official acts on behalf of Ali, including contacting a Philadelphia police official in order to pressure and advise the official to assist Ali with security screenings at the airport. Williams also agreed to assist with criminal charges brought by the Philadelphia District Attorney’s Office against Ali’s associate.
From March 2012 through July 2015, Williams had an arrangement with Michael Weiss (identified in the superseding indictment as “Business Owner #2”) in which Williams accepted airline tickets, money, an automobile, and other things of value in exchange for performing and agreeing to perform official acts on behalf of Weiss, including appointing him as Special Advisor to the Philadelphia District Attorney’s office in November 2012 and providing an official letter to the California Department of Alcoholic Beverage Control in order to influence a then-pending hearing to revoke or suspend Weiss’ California liquor license. In July 2015, Williams also obtained a police accident report at Weiss’ request.
In addition, from February 2012 through November 2013, Williams diverted his mother’s pension and Social Security payments to pay for his own personal expenses instead of applying them to his mother’s nursing home costs, as was his obligation under agreements with the nursing home. After accepting $10,000 from his mother’s friends intended to cover expenses for her nursing home care, Williams spent that money on his personal expenses as well.
From August 2010 through August 2016, Williams also defrauded the “The Committee to Elect Seth Williams” by using its funds for personal expenditures, including parties, birthday dinners, massages, and fitness classes. He concealed this fraud by providing false or incomplete reports to the Commonwealth of Pennsylvania and to the City of Philadelphia.
Lastly, Williams engaged in a scheme to use official vehicles – which were provided by the City of Philadelphia and a federal narcotics law enforcement program – for his personal benefit. Williams used the vehicles to transport himself, family members, friends and other non-employees on non-district attorney business, including personal trips outside of Philadelphia.
“The gifts Williams received represents the degree to which he was cheating the public," said IRS-CI Acting Special Agent in Charge Gregory Floyd. “No public official gets a free pass to ignore our laws. IRS CI will continue to ensure that our elected officials abide by their oath to faithfully discharge the duties of their office. It is unacceptable to accept benefits in exchange for performing official acts, but if you do IRS-Criminal Investigation will be there to seek justice on behalf of the citizens of Philadelphia."
“Homeland Security Investigations is pleased to have contributed to this investigation to hold accountable a public official who betrayed the trust of his community by engaging in such unscrupulous behavior,” Marlon V. Miller, special agent in charge of HSI Philadelphia, said. “The public places an enormous amount of trust in elected officers and they should be held accountable to a higher standard of conduct. HSI will continue to work jointly with our law enforcement partners to investigate those who exploit their official public positions for their personal benefit.”
The bribery charge to which Williams pleaded guilty is punishable by a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. As part of the plea agreement, Williams must forfeit $64,878.22, representing the sum of $33,765.52 worth of bribe proceeds and $31,112.70 worth of fraud proceeds.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Michael Harpster in Philadelphia; special agents of IRS-Criminal Investigation, Philadelphia Office, under the direction of Acting Special Agent in Charge Gregory Floyd, and special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigation (HSI) Philadelphia, under the direction of Special Agent in Charge Marlon V. Miller, with the investigation. He also thanked the U.S. Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Nick DiGiulio, for its participation in the investigation.
The U.S. Attorney in the Eastern District of Pennsylvania recused his office from the investigation involving the Philadelphia District Attorney’s Office, and the matter was assigned to the U.S. Attorney’s Office for the District of New Jersey. Two prosecutors from the Eastern District of Pennsylvania office were assigned to the case, subject to the supervision of prosecutors in the New Jersey office.
The government is represented by Deputy Chief Eric W. Moran of the U.S. Attorney’s Office Criminal Division in Newark and Chief of Appeals Robert A. Zauzmer and Assistant U.S. Attorney Vineet Gauri of the U.S. Attorney’s Office in Philadelphia.
Defense counsel: Thomas F. Burke Esq., Philadelphia.
Pennsylvania Man Pleads Guilty to Carjacking and Gun 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 Dimas Colon-Cruz, 37, of Erie, Pennsylvania, pleaded guilty to carjacking and brandishing a firearm in furtherance of a crime of violence, before U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Michael P. Felicetta, who is handling the case, stated on July 20, 2015, the defendant traveled with co-defendants Michael Gonzalez-Colon and Denis Cruz, from Erie, Pennsylvania to Dunkirk, NY, on stolen all-terrain vehicles. Shortly after arriving in Dunkirk, the ATV's were seized by the Dunkirk Police Department leaving the defendants without transportation.
Subsequently, the defendant and his codefendants assaulted an individual (Victim 1) near Robin and Second Streets in Dunkirk. The trio brandished firearms during the assault, struck Victim 1 in the face and stole several items from Victim 1. Almost immediately after Victim 1 was assaulted, a second victim (Victim 2) was assaulted by the defendant and his codefendants near 209 Robin Street. After exiting a car, Victim 2 was approached by the defendant and his codefendants and ordered to kneel on the ground at which time the victim was struck in the head with a handgun. Following the assault, the defendant and his codefendants stole Victim 2’s car, a 2004 Pontiac Grand Am. Also on July 20, 2015, Lakeside Lawncare in Fredonia, NY, was burglarized and several items were stolen including a gray 2002 GMC Sierra pickup truck. On July 22, 2015, both the 2004 Pontiac Grand Am and the 2002 GMC Sierra pickup truck were recovered in Erie, Pennsylvania.
Michael Gonzalez-Colon has been convicted and sentenced. Charges are pending against Denis Cruz. 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.
Today’s plea is the result of an investigation by the Dunkirk Police Department, under the direction of Chief David Ortolano; the Erie, Pennsylvania Police Department, under the direction of Chief Randy Bowers; the New York State Police, under the direction of Major Steven Nigrelli; and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Sentencing is scheduled for October 25, 2017, at 9:30 a.m. before Judge Vilardo.
Pennsylvania Man Pleads Guilty and Is Sentenced for Poisoning and Killing Bald Eagles and HawksRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-Acting U.S. Attorney James P. Kennedy announced today that William Wentling, 68, of Rothville, PA, pleaded guilty to violation of the Bald and Gold Eagle Protection Act before U.S. District Judge Jonathan W. Feldman. The defendant was then sentenced to two years’ probation and fined $3,500.
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that in March 2015, the New York State Department of Conservation received a report of a dead bald eagle in a field on Thompson Road in Addison, NY. The defendant operated a sheep farm in Addison, adjacent to where the carcass was discovered.
Subsequent investigation determined that in May 2014, Wentling mailed a container of Furadan, a restricted-use pesticide known to be highly toxic to wildlife, from his home in Pennsylvania to his farm in Addison. In March of 2015, the defendant directed his employees to pour Furadan over sheep carcasses on his farm for the purpose of controlling predators, specifically, birds of prey. As a result, two bald eagles, two red-tailed hawks, and a rough-legged hawk died after ingesting Furadan-laced sheep. One of the birds was an adult female bald eagle, which was incubating eggs in a nearby nest at the time of its death. At no time did Wentling have permits to take any of these birds, alive or dead.
“As a bird, the bald eagle is emblematic of our great Nation,” said Acting U.S. Kennedy. “With this prosecution, we reaffirm two of the very attributes which lie at the core of our Nation’s greatness — our commitment to upholding the rule of law and our commitment to protecting of the most vulnerable among us.”
“The U.S. Fish and Wildlife Service, Office of Law Enforcement, protects wildlife through the enforcement of federal conservation laws,” said Honora Gordon, Special Agent-in-Charge for the Northeast Region. "The intentional placement of poison on bait carcasses not only poses a threat to protected wildlife such as eagles and hawks, but also to other animals and to people. We take these situations very seriously and investigate these crimes to the fullest extent possible. The result of this case demonstrates our commitment to investigating wildlife crimes together with our partners such as the New York State Department of Environmental Conservation, Division of Law Enforcement.”
“From Staten Island to Lake Champlain to Western New York, bald eagles are thriving in our state thanks to decades of restoration efforts,” Department of Environmental Conservation (DEC) Commissioner Basil Seggos said. “I applaud the work of our Environmental Conservation Officers (ECOs), the United States Attorney's Office, Western District of New York, and Special Agents of the U.S. Fish and Wildlife Service for closing this case with a successful sentence. This will serve as a reminder that New York must remain diligent in our efforts to restore this iconic bird and uphold the conservation laws that protect it.”
In the early 1900’s, New York State was home to more than 70 nesting pairs of bald eagles, and was a wintering ground for several hundred more. However, by 1960, New York State had only one known active bald eagle nest remaining. Beginning in 1976, and continuing until 1988, the NYS-DEC Bald Eagle Program collected 198 nesting bald eagles from other parts of the United States, brought them to New York State, and then hand-reared them to independence. Today, there are more than 300 nesting pairs of bald eagles in the state.
The plea and sentencing are the result of an investigation by Special Agents of the U.S. Fish & Wildlife Service, under the direction of Special Agent-in-Charge Honora Gordon and Environmental Conservation Officers with the New York State Department of Environmental Conservation, under the direction of Captain John Burke.
Park Hill Man Sentenced to 37 Months for Methamphetamine Distribution, Unregistered FirearmRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that JEFFREY SCOTT HOFFMAN, age 47, of Park Hill, Oklahoma, was sentenced to 37 months imprisonment, and 3 years of supervised release for POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C); and for POSSESSION OF UNREGISTERED FIREARM (SAWED-OFF SHOTGUN), in violation of Title 26, United States Code, Sections 5861(d), 5841, 5845(a) and 5871.
The Indictment alleged that on or about November 5, 2016, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Indictment further alleged that on or about November 5, 2016, within the Eastern District of Oklahoma, the defendant, did knowingly possess a shotgun having a barrel less than 18 inches in length, which is a firearm, as defined in Title 26, United States Code, Section 5845, not registered to him in the National Firearms Registration and Transfer Record.
The charges arose from an investigation by the Hulbert Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Dean Burris represented the United States.
Okmulgee Man Sentenced to 110 Months for Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that STEVE EARL PERRY JR, age 27, of Okmulgee, Oklahoma, was sentenced to 110 months imprisonment, and 3 years of supervised release for FELON IN POSSESSION OF FIREARM & AMMUNITION, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) and 924(e).
The Indictment alleged that on or about November 14, 2016, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce a firearm which had been shipped and transported in interstate commerce.
The charge arose from an investigation by the District 25 District Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Dean Burris represented the United States.
Oklahoma City Tax Preparer and Edmond Woman Plead Guilty to Preparing a False Tax ReturnRead the Press Release
Oklahoma City, Oklahoma – DEANGELO ANTOINE McDANIEL, of Oklahoma City, Oklahoma, and TORIE L. ADKINS, of Edmond, Oklahoma, pleaded guilty yesterday to preparing and submitting a false income tax return to the IRS, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
At his plea hearing before the Honorable Robin Cauthron, Mr. McDaniel admitted that as a tax preparer, he prepared and submitted to the IRS a fraudulent tax return for the 2012 calendar year on behalf of Ms. Adkins. He also admitted he submitted two fabricated Form W-2s: one listing wages in the amount of $7,680.00 from Express Services, and another listing wages in the amount of $7,800.00 from OnTrack Staffing. Mr. McDaniel further admitted he knew Ms. Adkins never worked at either Express Services or OnTrack Staffing and that she earned no wage income in 2012. Ms. Adkins also pleaded guilty for her role in the offense. Pursuant to their respective plea agreements, both Mr. McDaniel and Ms. Adkins agreed that they caused losses between $40,000.00 and $100,000.00 to the IRS, and further agreed to pay restitution in an amount to be determined by the Court.
At sentencing, Mr. McDaniel and Ms. Adkins both face up to three years of imprisonment, a $250,000.00 fine, and one year of supervised release.
This case is the result of an investigation by IRS, Criminal Investigations. It is being prosecuted by Assistant U.S. Attorney Julia E. Barry.
Ohio Man Pleads Guilty to Providing Material Support to TerroristsRead the Press Release
Court records unsealed today reveal that Abdirahman Sheik Mohamud, 25, of Columbus, Ohio, pleaded guilty to all counts alleged against him regarding a terrorist plot.
A federal grand jury charged Mohamud in April 2015 with one count of attempting to provide and providing material support to terrorists, one count of attempting to provide and providing material support to a designated foreign terrorist organization – namely, al-Nusrah Front – and one count of making false statements to the FBI involving international terrorism in an indictment returned in Columbus. Mohamud pleaded guilty before U.S. Magistrate Judge Elizabeth Preston Deavers on Aug. 14, 2015, and the plea was sealed because of an ongoing investigation.
Assistant Attorney General for National Security Dana J. Boente, U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio, Special Agent in Charge Angela L. Byers of the FBI, Prosecutor Ron O’Brief for Franklin County, and the FBI’s Columbus Joint Terrorism Task Force (JTTF), announced the plea unsealed by U.S. District Judge James L. Graham.
“Mohamud admitted to traveling overseas, providing material support to a designated foreign terrorist organization, and receiving training from terrorists. He also admitted to returning to the United States and planning to conduct an attack on American soil. He will now be held accountable for his crimes,” said Acting Assistant Attorney General Boente. “The National Security Division’s highest priority is counterterrorism. We will remain vigilant in our efforts to identify, disrupt, and bring to justice those who provide material support to foreign terrorist organizations and seek to conduct attacks on our homeland.”
“National security is the first priority of this office, and we will use every tool at our disposal to stop those who support foreign terrorist organizations and those who seek to do harm in the United States,” U.S. Attorney Glassman said.
“Each day the Joint Terrorism Task Force and our law enforcement partners are working to keep the community safe from those who wish to disrupt our way of life,” said Special Agent in Charge Byers. "We must continue to remain vigilant against these potential threats.”
“This case illustrates the effectiveness of the local JTTF and the cooperative effort in the Columbus area that exists to combat terrorism,” said Franklin County Prosecutor O’Brien.
According to court documents, Mohamud is a Somali-born naturalized citizen of the U.S. who, in 2014, obtained a U.S. passport and one-way ticket to Greece. During his travel in April 2014, Mohamud did not board his connecting flight to Athens, Greece; rather, during his layover in Istanbul, Turkey, he completed pre-arranged plans to cross the border into Syria. In Syria, Mohamud received training from al-Nusrah Front, a terrorist organization affiliated with al-Qaeda.
According to a statement of facts supporting Mohamud’s guilty plea, while in Syria, Mohamud trained with al-Nusrah Front on fitness, and on the use of weapons and tactics. Mohamud also engaged in a firefight and expressed his desire to die fighting in Syria.
After his brother was killed while fighting for al-Nusrah Front, Mohamud returned to the U.S. According to the statement of facts, after returning to the U.S., Mohamud planned to obtain weapons in order to kill military officers or other government employees or people in uniform. Evidence seized by the FBI indicates that Mohamud researched places in the U.S. to carry out such plans.
Mohamud was originally arrested and indicted in state court and a $1 million bond was set that maintained him in custody. Those state charges were dismissed when the federal prosecution commenced. Mohamud was then transferred into federal custody following the April 2015 indictment and remains in custody.
Providing material support to terrorists and providing material support to a designated foreign terrorist organization are each crimes punishable by up to 15 years in prison. Making false statements involving international terrorism carries a maximum sentence of eight years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. The sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Boente and U.S. Attorney Glassman commended the cooperative investigation of the FBI’s JTTF with numerous local partners. Trial Attorneys Bridget Behling and Lolita Lukose of the National Security Division’s Counterterrorism Section, and Assistant U.S. Attorneys Douglas Squires, Jessica H. Kim and Salvador Dominguez and Special Assistant U.S. Attorney Joseph Gibson of the Southern District of Ohio, are prosecuting the case.