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10 August 2017
Investment Bank Vice President Pleads Guilty to Insider TradingRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that AVANEESH KRISHNAMOORTHY, who worked as a vice president and risk management specialist for a Manhattan-based investment bank (the “Investment Bank”), pled guilty earlier today to a criminal Information (the “Information”) charging him with engaging in a scheme to commit insider trading. KRISHNAMOORTHY made over $78,000 by trading in the stock and options of three publicly traded companies based on material nonpublic information he misappropriated from the Investment Bank and its parent company (the “Company”). KRISHNAMOORTHY pled guilty before United States District Judge Jesse M. Furman.
Acting U.S. Attorney Joon H. Kim said: “As he admitted today in federal court, Avaneesh Krishnamoorthy abused his position as an investment bank executive to get nonpublic information about several companies and then trade on it. We remain committed to prosecuting financial professionals whose greed drives them to break the law.”
According to the allegations in court documents, including the Information and a previously filed criminal complaint, and statements made during court proceedings:
As a vice president and risk management specialist, KRISHNAMOORTHY was given access to material, nonpublic information concerning mergers and acquisitions in which the Investment Bank was potentially going to be retained.
In November 2016, the Investment Bank was contacted about financing the acquisition of Neustar, Inc., a company whose shares are traded on the New York Stock Exchange, by a private equity fund (the “Fund”). KRISHANMOORTHY received multiple emails regarding the Investment Bank’s potential involvement in the transaction, which also summarized the mechanics of the deal. In violation of the Company’s policies and in breach of his duties to the Company and its clients, KRISHNAMOORTHY used this material nonpublic information to acquire Neustar stock and options. In the days and weeks after receiving the emails, KRISHNAMOORTHY purchased numerous Neustar call options and hundreds of shares of Neustar stock before the public announcement of the transaction. KRISHANMOORTHY did not reveal these trades or the existence of the underlying brokerage accounts to the Company. The price of Neustar stock increased by approximately 20% following the public announcement of the Fund’s acquisition of Neustar on December 14, 2016. KRISHNAMOORTHY also used material nonpublic information that he received from the Company to make profitable trades in securities of Cabelas Inc. and Axiall Corporation.
As a result of the scheme, KRISHNAMOORTHY reaped over $78,000 in ill-gotten gains, which he has agreed to forfeit to the Government as part of his plea agreement.
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KRISHNAMOORTHY, 42, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5 million, or twice the gross gain or loss from the offense. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
KRISHNAMOORTHY is scheduled to be sentenced November 21, 2017.
Mr. Kim praised the investigative work of the Federal Bureau of Investigation and thanked the Securities and Exchange Commission.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Brendan F. Quigley is in charge of the prosecution.
Harrisburg Man Indicted on Firearms OffensesRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Johnnie Jahill Wilkerson, age 30, of Harrisburg, Pennsylvania, was indicted on August 9, 2017, by a federal grand jury for possessing a firearm and ammunition after having been convicted of a felony and possessing a firearm with an obliterated serial number.
According to U.S. Attorney Bruce D. Brandler, the indictment alleges that Wilkerson had a firearm (Taurus 357 Magnum) in his possession on December 21, 2016.
The case was investigated by the Harrisburg City Police with assistance from the U.S. Drug Enforcement Administration. Assistant United States Attorney James T. Clancy is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for possessing a firearm after a felony conviction is 10 years’ imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalty for possessing a firearm with an obliterated serial number is 5 years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Grand Jury Charges Family with Money LaunderingRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged a father, mother and daughter in a 33-count indictment returned here on June 22 that alleges the family members conspired to and actually laundered nearly $3 million.
Parents Mitch G. Stevenson, 53, and Patricia Stevenson, 57, and their daughter Candace G. Stevenson, 30, all of Mason, Ohio, were charged with conspiring to launder money and money laundering.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, announced the indictment that was unsealed yesterday.
The indictment alleges that in 2009 two life-insurance policies were fraudulently purchased insuring another relative for a combined $2.9 million.
The policy applications falsely stated that the relative had never been diagnosed with diabetes, high blood pressure or ulcers, among other conditions, and that the relative had not had any medication in the 12 months before the application was prepared. The defendants reported the person’s weight as 170 pounds, when in actuality the person’s true weight was approximately 375 to 400 pounds.
As part of the application process for the life insurance, a medical examination was required.
“In early February 2009, an unknown individual in Sugar Land, Texas, who met the description in the applications, represented herself as the relative at the examination and was weighed at 176 pounds,” said U.S. Attorney Glassman. “Three weeks earlier, the actual relative was weighed in a Cincinnati emergency room at 387 pounds.”
In early 2011, amendments were made to the owners and beneficiaries of the two policies to name Patricia and Candace Stevenson. One year later, the relative died and West Coast Life Insurance Company issued a $1.5 million check to Patricia Stevenson and a $1.4 million check to Candace Stevenson.
The defendants then engaged in a complex sequence of transactions allegedly designed to conceal and disguise the nature, location, source, ownership or control of the proceeds of the life-insurance fraud.
They also purchased a 2012 Bentley GT Convertible for approximately $247,000 and used approximately $284,000 as a down payment on a land contract on a home in Mason, Ohio. Other transactions included approximately $16,000 to World of Decor and nearly $33,000 to Facet Jewelry.
Money laundering conspiracy is a crime punishable by up to 20 years in prison and money laundering carries a potential maximum sentence of 10 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation, and Assistant United States Attorney Peter K. Glenn-Applegate, who is prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
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Four men indicted on illegal alien chargesRead the Press Release
WHEELING, WEST VIRGINIA – Two Mexican men, a Nicaraguan man, and a man from El Salvador have been indicted by a federal grand jury on reentry of a removed alien charges, Acting United States Attorney Betsy Steinfeld Jividen announced.Elias Rojas-Zapata, age 30, of Nicaragua, was indicted on one count of “Reentry of Removed Alien.” Rojas-Zapata, having previously been removed from Louisiana, allegedly was found in Brooke County in June 2017 without consent.
Mauro Nieto-Garcia, age 26, of Mexico, and Noe Jacinto-Nieto, age 26, also of Mexico, were each indicted on one count of “Reentry of Removed Alien.” Nieto-Garcia, and Jacinto-Neito, each having previously been removed from Arizona, allegedly were found in Ohio County in June 2017 without consent.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting all three cases on behalf of the government. The U.S. Department of Homeland Security, Immigrations and Customs Enforcement and the Brooke County Sheriff’s Office are investigating the Rojas-Zapata case. The U.S. Department of Homeland Security, Immigrations and Customs Enforcement and the Bethlehem Police Department are investigating the Nieto-Garcia and Jacinto-Nieto cases.
Miguel Angel Melendez-Lopez, age 37, of El Salvador, was also indicted on indicted one count of “Reentry of Removed Alien.” Melendez-Lopez has previously been removed from Newark, New Jersey and Atlanta, Georgia, allegedly was found in Ohio County without consent in July 2017.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the Melendez-Lopez case on behalf of the government. The U.S. Department of Homeland Security, Immigrations and Customs Enforcement and the West Virginia State Police are investigating the Melendez-Lopez case.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Four Schuylkill County Residents Indicted for Methamphetamine TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that four Schuylkill County residents were indicted on August 8, 2017, by a federal grand jury for allegedly participating in a methamphetamine trafficking conspiracy from July 2016 through May 2017.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Anibal Luis Rodriguez a/k/a “Lou,” age 26, of Pottsville, Malcom Wilfong a/k/a “Sleep,” age 26, of Pottsville, David Castro a/k/a “D,” age 27, of Pottsville, and Laverne Schaeffer, age 45, of Schuylkill Haven, conspired to distribute and possess with intent to distribute methamphetamine. The indictment further alleges that Rodriguez, Wilfong, and Castro were involved in distributing more than 500 grams of methamphetamine. Schaeffer is alleged to have distributed more than 50 grams of methamphetamine.
Rodriguez and Castro are also charged with five additional counts of distributing methamphetamine. Wilfong is also charged with an additional count of distributing methamphetamine.
The indictment also seeks to forfeit the residence and property of Laverne Schaeffer in Schuylkill Haven, Pennsylvania.
The case is being investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Shenandoah Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for conspiracy to distribute more than 500 grams of methamphetamine is life imprisonment, a term of supervised release following imprisonment, and a fine. There is also a mandatory minimum sentence of 10 years for that offense. The maximum penalty under federal law for conspiracy to distribute more than 50 grams of methamphetamine is 40 years in prison. There is a mandatory minimum sentence of five years in prison for that charge. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Union Officer Charged with Embezzling over $280,000 in Union FundsRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced today that Ryan Jones, 34, of Bath, Maine was indicted yesterday by a federal grand jury for embezzling union funds.
The indictment charges Jones with embezzling over $280,000 from the International Association of Machinists and Aerospace Workers, Local Lodge S6, during a period when he served as an officer of that union.
If convicted, Jones faces up to five years in prison, three years of supervised release, a $10,000 fine and restitution.
The investigation was conducted by the U.S. Department of Labor, Office of Labor-Management Standards and the Federal Bureau of Investigation.
An indictment is merely an accusation, and a defendant is presumed innocent unless proven guilty in a court of law.
Former Tennessee Alhambra Office Manager Sentenced to Serve Two Years in Federal Prison for Embezzlement from OrganizationRead the Press Release
CHATTANOOGA, Tenn. – On August 9, 2017, Belinda A. Phillips, 58, of Chattanooga, Tennessee, was sentenced by the Honorable Curtis L. Collier, Senior U.S. District Judge, to serve 24 months in federal prison for embezzlement from the Alhambra Shrine (Alhambra) in Chattanooga. Upon her release from prison, U.S. Probation will supervise her for three years. Phillips was also ordered to pay $120,000 in restitution.
Phillips previously pleaded guilty to one count of an indictment charging her with making, uttering and possessing a forged security of an organization. Detailed information regarding her actions is included in the plea agreement on file with U.S. District Court. According to the plea agreement, while employed as an office manager with Alhambra in Chattanooga, Tennessee, Phillips had control over their financial books and records, including checks and credit cards. During the time of her employment, Phillips devised a scheme to defraud and embezzle from the organization and obtain money and property for her personal use. She stole and converted checks drawn on Alhambra’s bank accounts, forged signatures and used credit cards to make unauthorized purchases and make payments for her own benefit, including the purchase of personal goods and payment of personal bills.
Alhambra, a charitable and social fraternal unincorporated association, was an affiliate of Shriner’s International. As part of its charitable activities, Alhambra supported the Shriner’s Hospitals for Children, which provide free medical care to children. They maintained a transportation fund that was to be used exclusively to transport children without charge from the Chattanooga area to the Shriner’s Hospitals for Children. Alhambra officials discovered that Phillips was siphoning funds from various accounts, including the charitable transportation account, for her own use when they were unable to pay for the transportation of a sick child who needed to fly from Chattanooga to Cincinnati for critical health care. As a result, they had to find funding elsewhere, and the treatment was delayed.
The Chattanooga Police Department and U.S. Secret Service investigated this case. Assistant U.S. Attorney Steven Neff represented the United States.
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Former QVC Director Charged in Million-Dollar Fraud Scheme Involving Hollywood PR Agency and NYC Production CompanyRead the Press Release
PHILADELPHIA – James D. Falkowski, a/k/a “Jamie Falkowski,” 42, of Buffalo, New York, was charged by indictment1, unsealed today, with eleven counts of wire fraud, eleven counts of mail fraud, and one count of conspiracy, announced Acting United States Attorney Louis D. Lappen.
According to the indictment, Falkowski – while working as a QVC Director responsible for enhancing QVC’s brand and reputation in the entertainment and fashion industries – engaged in a multi-layered fraud scheme that enabled him to live a luxury lifestyle through fraud. Falkowski allegedly used a variety of methods to fraudulently obtain from QVC over $1,000,000 worth of money, goods and services, all without QVC’s knowledge or approval. Specifically, the indictment alleges that Falkowski fraudulently caused QVC to pay for: hundreds of thousands of dollars of his personal expenses, including Falkowski’s first-class travel, luxury hotel and resort stays, spa treatments, upscale restaurants, luxury clothing, luxury accessories, and botox treatment; approximately $200,000 in private luxury chauffeur rides for himself and his friends and associates; approximately $70,000 in payments to his personal vendors and creditors, including over $28,000 in payments to a custom furniture maker for two tables for Falkowski’s Philadelphia apartment; and approximately $59,500 in pre-paid American Express, Tom Ford, and Barney’s New York gift cards that he used for himself. Falkowski also entered into fraudulent kickback arrangements with two separate QVC vendors, who collectively paid Falkowski approximately $240,000 as his cut of the kickback arrangement. Allegedly, Falkowski fraudulently abused QVC’s product requisition process to shower his friends and associates with at least tens of thousands of dollars’ worth of QVC products, all at QVC’s expense.
The indictment alleges that Falkowski caused QVC to hire Los Angeles-based PR firm “The Steinberg Group,” d/b/a “dOMAIN” (“TSG”), to serve as QVC’s outside PR agency. After QVC hired TSG, Falkowski allegedly used TSG to “launder” hundreds of thousands of dollars of his personal expenses. Falkowski did this by causing TSG to reimburse him directly for his personal expenses, but after paying Falkowski in the dollar amounts he commanded, TSG subsequently obtained reimbursement from QVC by issuing fraudulent invoices to QVC often written at Falkowski’s direction and, in certain instances, written by Falkowski himself. Those fraudulent invoices, by design, did not reveal to QVC the true nature of Falkowski’s expenses. Falkowski also caused TSG to reimburse him for expenses that he also submitted directly to QVC for reimbursement, thus causing QVC to unknowingly repay him multiple times for the same expenses. And, in some instances, Falkowski allegedly created entirely fake invoices and bills for submission to QVC to hide the true costs of his expenses from QVC. Falkowski also allegedly used a second QVC vendor, “SPEC Entertainment,” d/b/a “CS Global” (“SPEC”), to fraudulently alter invoices that SPEC submitted to QVC to hide the true costs of Falkowski’s expenses – including by reducing the cost of Falkowski’s luxury hotel charges on invoices submitted to QVC by tens of thousands of dollars, and by artificially inflating an event invoice to cover Falkowski’s personal vacation to the Turks and Caicos Islands.
Separately, the indictment alleges that Falkowski entered into fraudulent kickback arrangements with TSG and SPEC – both of which Falkowski caused QVC to hire, and both of whose relationships with QVC Falkowski controlled. Regarding TSG, Falkowski allegedly instructed TSG’s President and TSG’s General Counsel how to become a QVC “vendor representative” and earn royalties from QVC. Falkowski thereafter secretly assisted TSG leadership in negotiating against QVC – his own employer – by providing TSG with QVC’s proprietary contractual information, which enabled TSG leadership to negotiate for, and obtain, a larger royalty percentage over a longer period of time from QVC. In return, TSG leadership secretly cut Falkowski into the deal, and made him their “silent partner” – agreeing to pay Falkowski a kickback of fifty percent (50%) on all royalty payments received from QVC, as well as for funds received from a separate deal related to product sold by a QVC competitor. After Falkowski was terminated by QVC, Falkowski allegedly sent a private email to TSG’s President and TSG’s General Counsel, stating: “Let’s be clear of a few things: [. . . ] You have a better deal [at QVC] than any other rep because of me solely. [ ] we do not have any contract between us of our deal JUST [TSG President’s] word that we split things 50/50 always. This was because of the complications while I was at QVC.” TSG, which did business as “Domain Miami LLC” for its royalty deal with QVC, earned hundreds of thousands of dollars in royalties from QVC pursuant to the deal negotiated with Falkowski’s secret assistance, of which TSG kicked back approximately $160,981.73 to Falkowski as his share of their fraudulent deal.
Falkowski also allegedly entered into a similar fraudulent kickback arrangement with SPEC, pursuant to which he instructed SPEC how to serve as a QVC vendor representative, and in turn was secretly cut into the deal by SPEC as a one-third (33%) partner. SPEC earned hundreds of thousands of dollars in royalties from QVC, of which it kicked back approximately $81,571.23 to Falkowski as his share of their fraudulent deal.
If convicted of all charges, Falkowski faces a potential advisory sentencing guideline range of 108-135 months in prison, three years of supervised release, a possible fine, and a $2,300 special assessment. Restitution may also be ordered.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney James Petkun.
1An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Presidio Title C.F.O. Sentenced to Federal Prison for Stealing over $367K from CompanyRead the Press Release
In San Antonio this afternoon, a federal judge sentenced Joseph P. Karpowicz, 48-year-old former Chief Financial Officer for Presidio Title (Presidio), to 30 months in federal prison for stealing over $367,000 from the San Antonio real estate title company announced United States Attorney Richard L. Durbin, Jr.
In addition to the prison term, United States District Judge Xavier Rodriguez ordered that Karpowicz pay $367,309 restitution to his victim and be placed on supervised release for a period of three years after completing his prison term.
On August 24, 2016, Karpowicz pleaded guilty to one count of mail fraud and one count of engaging in financial transactions with criminally derived proceeds.
According to court records which the defendant admitted were factually correct, Karpowicz schemed to steal the money from Presidio between April 2010 until June 2013. Karpowicz issued Presidio checks to pay for his own personal expenses and credit card bills, then created materially false entries in Presidio’s records in order to hide his fraudulent conduct.
The United States Secret Service Identity Theft Task Force together with the Internal Revenue Service-Criminal Investigation conducted this investigation. Assistant United States Attorney Thomas P. Moore prosecuted this case on behalf of the Government.
Former Pit Boss, Blackjack Dealer, and a Player Plead Guilty in Federal Court to a Cheating Conspiracy at Dakota Sioux CasinoRead the Press Release
United States Attorney Randolph J. Seiler announced that three individuals have pleaded guilty in federal court to a charge of Conspiracy Involving Theft by Employees of a Gaming Establishment on Indian Land.
Lito Banbilla Bolocon, age 44, and Jordon Anthony Rondell, age 29, appeared before U.S. District Judge Charles B. Kornmann on August 1, 2017, and pled guilty to the Conspiracy charge contained in the Superseding Indictment. Jeremy Kris Brown, age 43, pleaded guilty to that same count on May 1, 2017.
The maximum term of imprisonment upon conviction is up to 5 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Dakota Sioux Casino (“DSC”) is a gaming establishment located approximately five miles north of Watertown, in Codington County, South Dakota. The DSC is also located on the Lake Traverse Indian Reservation and is operated by the Sisseton Wahpeton Oyate Sioux Tribe.
According to the defendants’ plea agreements, Bolocon worked at the DSC as a pit boss, and Brown worked as a blackjack dealer. Rondell was a customer of the DSC whom frequently played blackjack. In December 2015 and through January 1, 2016, Bolocon, Brown, Rondell, and others conspired to enrich themselves by unlawfully obtaining gaming chips and money from the DSC. Specifically, in December 2015, the defendants devised a plan to cheat the DSC of monies derived during the gambling operations taking place on New Year’s Eve 2015 and into January 1, 2016. The agreement was for Rondell to unlawfully make a large sum of money from illegitimate winnings paid by Brown, and Rondell would then pay-off the other defendants for their participation. Rondell cashed-out approximately $10,000 from the DSC after playing at Brown’s blackjack tables, which were supervised by Bolocon.
Bolocon, as pit boss during that night and early morning, would oversee Brown’s and Gill’s dealing to Rondell. Bolocon knew about and allowed the cheat to proceed throughout the night of December 31, 2015, and early morning of January 1, 2016.
The investigation is being conducted by the Federal Bureau of Investigation, the United States Attorney’s Office, and the Sisseton-Wahpeton Oyate Sioux Tribe’s Gaming Commission. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
A fourth defendant, Fern Freya Gill, has a trial date set for August 22, 2017.
The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the United States Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the United States Attorney’s Office at (605)330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Former Lebanon Airport Operator Indicted for $707,000 Fraud SchemeRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that the former owner of a fixed base operation at the Lebanon, Mo., airport has been indicted by a federal grand jury for a $707,000 investment fraud scheme.
Paul David Ward, 61, of Camdenton, was charged with wire fraud in an indictment returned by a federal grand jury in Jefferson City, Mo., on Wednesday, Aug. 9, 2017.
Ward was the owner of Lebanon Aviation Service, Inc., which provided services to the users of the Lebanon airport, including the sale of aviation fuel, through a contract with the city of Lebanon. Ward purchased aviation fuel for his business from Avfuel Corporation, located in Ann Arbor, Michigan. In October 2014, Ward surrendered his contract with the city of Lebanon to sell aviation fuel at the airport. At that time, Ward was suffering monthly losses of $6,000 or greater.
The federal indictment alleges that, from Jan. 1, 2011, to Aug. 22, 2016, Ward engaged in a scheme to defraud friends and associates who invested in his company. Ward falsely and fraudulently claimed he would use the solicited investments in Lebanon Aviation Service, the indictment says, but he actually used the solicited investments for personal expenses and to make Ponzi-style payments to previous investors. In total, according to the indictment, Ward defrauded approximately 25 investors in Camden, Laclede and Cole Counties who suffered actual losses of approximately $264,720.
Ward solicited his friends and associates to invest in Lebanon Aviation Services. At various times, the indictment says, Ward falsely claimed that he needed additional capital to purchase aviation fuel, needed capital to purchase pleasure boats for resale, and that he needed capital for undisclosed purposes. Ward continued to solicit investments after Lebanon Aviation Services was dissolved by the Missouri Secretary of State in January 2015.
At the time of the investment, Ward provided the investor with a post-dated bank check in the amount of the principal plus interest. In most cases, when the investment became due and payable, the investor deposited the post-dated check, but the check was returned for insufficient funds. When an investor complained to Ward about the returned check, the indictment says, Ward falsely stated a reason for the returned check and provided a series of false excuses for the failure to pay to lull the investor and gain more time to repay the investor. Ward generally attempted to repay investors who threatened to tell his wife about his failure to repay the investment. When Ward’s attempts to stall an investor failed, he solicited additional investments for the purpose of paying off a previous investor.
The indictment also contains a forfeiture allegation, which would require Ward to forfeit to the government any property derived from the proceeds of the alleged offense, including a $264,720 money judgment.
Larson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the FBI and the Missouri State Highway Patrol.
Former Eastpointe Human Services Chief Financial Officer SentencedRead the Press Release
GREENVILLE – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court on August 9, 2017, Senior United States District Judge Malcolm J. Howard sentenced WILLIAM ROBERT CANUPP, 58, from Richlands, N.C., to 42 months in prison and 3 years of supervised release and restitution in the amount of $731,180.00, for conspiracy to commit federal program fraud, wire fraud and tax fraud. CANUPP pled guilty to the charges on March 17, 2017.
From March 2010 to April 2013, CANUPP was the Chief Financial Officer for Eastpointe Human Services based in Beaulaville, North Carolina. CANUPP hired his co-defendant, Ronnie L. Davis, to perform personal construction services without taking bids for the renovation projects and did not have the completed work inspected or approved. Additionally, CANUPP created and submitted fraudulent invoices for the work Davis supposedly performed or for supplies and materials. Davis submitted personal checks to CANUPP to purchase supplies for the construction work. Additionally, CANUPP committed tax fraud by not reporting the money he received from Davis on his tax returns. CANUPP used the embezzled funds to purchase an $80,000 boat, hunting equipment, fishing software, high-end video gaming systems, make mortgage payments for a beach house, make personal credit card payments, and for other personal matters.
The case was investigated by the Federal Bureau of Investigation (FBI), the Internal Revenue Service - Criminal Investigation (IRS-CI), the United States of Department of Health and Human Services, Office of Inspector General (HHS-OIG), and the United States Department of Housing and Urban Development, Office of Inspector General (HUD-OIG). The federal prosecution was handled by Assistant United States Attorney Ethan A. Ontjes
Federal-State Law Enforcement Partnership Results in More Than 75 Arrests in San Mateo, San Francisco CountiesRead the Press Release
SAN FRANCISCO – Officials from more than a half dozen law enforcement agencies gathered today to announce that over 75 individuals have been arrested and charged with a variety of state and federal crimes pursuant to “Operation Cold Day,” a joint federal-state effort to combat crime in San Mateo and San Francisco counties.
The announcement was made by U.S. Attorney Brian J. Stretch; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), San Francisco Field Division, Special Agent in Charge Jill Snyder; San Mateo County District Attorney Steve Wagstaffe; San Francisco District Attorney George Gascón; San Francisco Chief of Police William Scott; Daly City Chief of Police Manuel Martinez; and California Highway Patrol, Golden Gate Division, Assistant Chief James Libby.
According to the officials, Operation Cold Day was spearheaded by the ATF in close coordination with local law enforcement partners in an effort to support ongoing state and local efforts to combat gun and drug-related crime. Multiple investigations and undercover operations have resulted in federal charges against 42 defendants and charges against dozens in state court.
According to the federal charging documents, the defendants are charged in mostly separate indictments. Each defendant is charged with allegedly committing at least one or more of the following crimes: possessing illegal firearms (such as firearms with obliterated serial numbers), in violation of 18 U.S.C. § 922(k); engaging in the unlicensed dealing in firearms, in violation of 18 U.S.C. § 922(a)(1)(A); distributing and possessing with intent to distribute methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(B)(viii); being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1); and participating in a conspiracy to distribute methamphetamine and cocaine base, in violation of 21 U.S.C. § 846. Similarly, defendants in the prosecutions brought by the district attorneys of San Francisco and San Mateo Counties face a variety of charges.
“This week we took a key preemptive step in our battle against violent crime,” said U.S. Attorney Stretch. “By pooling the resources of the federal government with those of our state and local law enforcement partners, scores of weapons that we allege were illegally possessed and sold now have been taken off the streets. We commend and thank all of our law enforcement partners who have risked their safety to bring this phase of the operation to a successful conclusion.”
“It is our duty to make this community a safer place for you and your families,” said ATF Special Agent in Charge Snyder. “The safety of the public is at the core of ATF’s mission and we stand at the frontline eradicating violent crime from our streets. One firearm in the hands of a gang member or prohibited person is one firearm too many. It only takes one round from one gun to end a life. Today ATF and our partners stand here united and proud to serve our communities. Through everyone’s hard work and dedication this operation has been a true success. These are also our neighborhoods and today the greater San Francisco area is a safer place.”
“Law enforcement is at its best when we all come together to enhance public safety,” said District Attorney Gascón. “My office’s Crime Strategies Unit is always looking for creative ways to work with our law enforcement partners to make our jurisdictions safer together.”
“Gun violence has negatively impacted the lives of far too many people in San Francisco,” said SFPD Chief Scott. “This type of violence is more likely to happen when guns are in the hands of individuals willing to obtain and/or use them illegally. This interagency collaboration and the resulting arrests goes a long way to towards addressing gun violence by removing from our streets firearms and those willing to obtain them illegally and potentially use them.”
“The effects of this large-scale and collaborative operation will have an impact on the public safety in this region for quite some time,” said Daly City Police Chief Martinez.
“This type of interagency cooperation stands as an example of what can be accomplished when state, federal and local law enforcement agencies work together to ensure that our communities are safe,” said CHP Assistant Chief Libby. “This two-year operation would never have been possible were it not for the cooperation of all of the agencies involved, and for this, the California Highway Patrol is grateful to all of our allied partners.”
The indictments merely allege that crimes have been committed, and each defendant must be presumed innocent until proven guilty beyond a reasonable doubt.
These prosecutions are the result of close coordination between the ATF; the California Highway Patrol; and the police departments of San Francisco, Redwood City, San Bruno, and Daly City; and the San Mateo County Sheriff’s Office.
OPERATION COLD DAY FEDERAL DEFENDANTS
Defendant
Case Number(s)
Charges
MARIO ALVARADO
CR 17-336 WHA
21 U.S.C. § 841
21 U.S.C. § 846
18 U.S.C. § 922(g)(1)
HARRINGTON AMADOR
CR 17-361 WHA
21 U.S.C. § 841
AISHAH BUENAVENTURA
CR 17-395 CRB
CR 17-402 CRB
CR 17-401 RS
21 U.S.C. § 841 (four counts)
21 U.S.C. § 846 (two counts)
18 U.S.C. § 922(a)(1)
PAUL BIDINGER
CR 17-391 EMC
21 U.S.C. § 841
21 U.S.C. § 846
ALLELEA CABILES
CR 17-404 SI
21 U.S.C. § 841 (two counts)
21 U.S.C. § 846
RYAN COSINO
CR 17-402 CRB
21 U.S.C. § 841
21 U.S.C. § 846
VICENTE CRUZ
CR 17-356 EMC
21 U.S.C. § 841 (two counts)
21 U.S.C. § 846
18 U.S.C. § 922(g)(1)
DAVID DAYAN
CR 17-372 MMC
21 U.S.C. § 841
NELSON DECUIRE
CR 17-395 CRB
CR 17-391 EMC
CR 17-393 WHA
21 U.S.C. § 841 (three counts)
21 U.S.C. § 846 (three counts)
JOEL DOMINGUEZ
CR 17-0375 JST
21 U.S.C. § 841
21 U.S.C. § 846
ARMANDO ESPARZA
CR 17-381 VC
21 U.S.C. § 841
21 U.S.C. § 846
JEAN FAALATAINA
CR 17-373 CRB
21 U.S.C. § 841
21 U.S.C. § 846
CENTURY FAATAUI
CR 16-303 CRB
18 U.S.C. § 922(g)(1)
SHANE DYLAN FABRIS
CR 17-386 CRB
21 U.S.C. § 841 (two counts)
21 U.S.C. § 846
KRISTIAN SANTOS FIEL
CR 17-335 VC
21 U.S.C. § 841 (two counts)
CHRISTINE FLORES
CR 17-398 WHO
21 U.S.C. § 841
21 U.S.C. § 846
KRYSTAL FLORES
CR 17-373 CRB
21 U.S.C. § 841
21 U.S.C. § 846
RODRICK FORD
CR 17-377 VC
21 U.S.C. § 841
18 U.S.C. § 922(g)(1) (three counts)
26 U.S.C. § 5861(d)
CARLITA FOWLER
CR 17-412 VC
21 U.S.C. § 841 (three counts)
21 U.S.C. § 846
LORENZO GAINES
CR 17-371 CRB
18 U.S.C. § 922(g)(1) (two counts)
ALBERTO GARCIA
CR 17-353 CRB
18 U.S.C. § 922(k)
MONICA GARCIA
CR 17-411 WHO
21 U.S.C. § 841
LAWRENCE GILBERT
CR 17-265 CRB
18 U.S.C. § 922(g)(1)
ROBERT GUEVARA
CR 17-378 RS
21 U.S.C. § 841
21 U.S.C. § 846
LILLIAN HOVAN
CR 17-378 RS
21 U.S.C. § 841
21 U.S.C. § 846
ETEVATI LEVI
CR 17-356 EMC
21 U.S.C. § 841
21 U.S.C. § 846
ANGELITO MALLARI
CR 17-403 WHO
CR 17-404 SI
21 U.S.C. § 841 (five counts)
21 U.S.C. § 846 (two counts)
JENNIFER MCPIKE
CR 17-389 RS
21 U.S.C. § 841
21 U.S.C. § 846
ALICIA MORALES
CR 17-398 WHO
21 U.S.C. § 841
21 U.S.C. § 846
CARLOS ORELLANA
CR 17-396 SI
21 U.S.C. § 841(a)(1) (two counts)
BRIAN PEREZ
CR 17-383 SI
CR 17-386 CRB
18 U.S.C. § 371
18 U.S.C. § 922(a)(1)
18 U.S.C. § 922(g)(1) (two counts)
21 U.S.C. § 841 (two counts)
21 U.S.C. § 846
CARL PITTS
CR 17-412 VC
21 U.S.C. § 841
21 U.S.C. § 846
JOSE ALEJANDRO VASQUEZ ROBLEDO
CR 17-381 VC
21 U.S.C. § 841
21 U.S.C. § 846
LUIS ROMERO
CR 17-336 WHA
21 U.S.C. § 841
21 U.S.C. § 846
18 U.S.C. § 922(g)(5)
JAVIER ROSALES
CR 17-376 SI
26 U.S.C. § 5861(d)
EFRAIN SANTAMARIA
CR 17-389 RS
18 U.S.C. § 922(g)(1)
DANIELLE SIMRIL
CR 17-382 CRB
21 U.S.C. § 841 (two counts)
KERMIT TANNER
CR 17-383 SI
CR 17-347 VC
18 U.S.C. § 371
18 U.S.C. § 922(a)(1)
18 U.S.C. § 922(g)(1) (three counts)
21 U.S.C. § 841 (two counts)
SANDY TUIMAVAVE
CR 15-593 TEH
18 U.S.C. § 922(g)(1)
BRIAN VANDERCOURT
CR 16-121 WHO
21 U.S.C. § 841 (two counts)
DONNIE YINGLING
CR 17-388 SI
18 U.S.C. § 371
18 U.S.C. § 922(a)(1)(A)
18 U.S.C. § 922(g)(1) (two counts)
21 U.S.C. § 841
IVAN ZARICH
CR 16-358
18 U.S.C. § 922(g)(1)
18 U.S.C. § 111(b)
The statutes referenced above correlate to the following alleged offenses:
18 U.S.C. § 371- Conspiracy to deal in firearms without a license
18 U.S.C. § 111(b)- Assault on a federal officer
18 U.S.C. § 922(a)- Dealing in firearms without a license
18 U.S.C. § 922(g)- Felon in possession of a firearm
18 U.S.C. § 922(k)- Possession of a firearm with an obliterated serial number
21 U.S.C. § 841- Distribution and/or possession with intent to distribute a controlled substance
21 U.S.C. § 846- Conspiracy to distribute and/or possess with intent to distribute a controlled substance
26 U.S.C. § 5861(d)- Possession of an unregistered firearm
Federal Inmate Sentenced to 41 Months’ Imprisonment for Assaulting Fellow InmateRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Court Judge James M. Munley sentenced James Carson, age 31, to 41 months of imprisonment for assaulting a fellow inmate while incarcerated at the United States Penitentiary Canaan (USP Canaan) in Waymart, Pennsylvania.
According to United States Attorney Bruce D. Brandler, Carson previously pleaded guilty to the assault, during which he stabbed another inmate several times with an improvised knife, causing serious injury. Carson was deemed a career offender, in consideration of his extensive criminal history.
At the time of the assault, Carson was serving a sentence at USP Canaan pursuant to a 2012, federal conviction for being a felon in possession of a sawed-off shotgun. Judge Munley thus ordered that Carson’s new sentence run consecutive to his undischarged term of imprisonment.
The case was investigated by the Federal Bureau of Investigation and officers from USP Canaan. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
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Federal Grand Jury Indicts Columbus Man Who Allegedly Cyberstalked Local Law Enforcement OfficerRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged William E. Young, 54, of Columbus, with one count of cyberstalking in an indictment returned here today.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Office, announced the indictment.
The indictment alleges that Young used the mail and the Internet to attempt to cause substantial emotional distress and evoke fear of serious bodily injury or death.
According to an affidavit filed in support of a criminal complaint in this case, Young was arrested in October 1999 for menacing by stalking a female in Delaware County, Ohio. It is alleged that he has continuously harassed and stalked one of his arresting officers since the time of his arrest and conviction.
The affidavit details that over the course of more than 17 years, Young created four webpages and sent multiple letters claiming the victim is a “pedophile” and “corrupt cop.” Young allegedly mailed letters on numerous occasions to the victim’s wife and family, neighbors, physician, barber, church and church pastor and pastor’s wife, as well as to Ohio Wesleyan College, Delaware City Hall, the Delaware Chamber of Commerce, the Delaware City Mayor, Delaware City Council members, the Delaware Police Department, the Delaware County Sheriff’s Office, the Delaware County Jail, the Arapahoe County Prosecutor’s Office and other local community businesses.
“Letters varied in length from three to 92 pages, and often included court records related to the 1999 conviction and documents related to civil lawsuits that Young filed against the victim and a fellow officer,” U.S. Attorney Glassman said.
In a May 2010 interview with agents of the Ohio Bureau of Criminal Investigation (BCI), Young stated he wanted the victim fired and wanted him to “eat his gun.”
In September 2015, Young allegedly mailed a 62-page letter to the victim’s spouse which stated: “I’ll force his hand if the powers that be make the mistake of coming after me again. Then I’ll take everyone down who had a hand in what was done to me one by one.”
Over the last decade, Young has filed multiple state and federal civil lawsuits against the victim and another arresting officer from Young’s 1999 arrest, and the Delaware Police Department, alleging various claims of corruption and fraud.
Young was arrested by FBI agents on Tuesday and is scheduled to return to court at 11am tomorrow for a detention hearing before U.S. Magistrate Judge Elizabeth Preston-Deavers.
Cyberstalking is a federal crime punishable by up to five years in prison and a fine of up to $250,000.
U.S. Attorney Glassman commended the investigation of this case by the FBI, and Assistant United States Attorney Jessica H. Kim, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Endicott Man Pleads Guilty to Sexually Exploiting Two Children and Possessing and Receiving Child PornographyRead the Press Release
BINGHAMTON, NEW YORK – Richard M. Squires, 58, of Endicott, New York, pled guilty today to Exploitation of a Child, Receiving Child Pornography, and Possession of Child Pornography in Federal Court in Binghamton, New York, announced Acting United States Attorney Grant C. Jaquith and FBI Special Agent in Charge of the Albany Field Office Vadim D. Thomas.
As part of his guilty plea, Richard M. Squires admitted that in 2013 he made images of his sexual exploitation of two minor females and in 2014 received and possessed images depicting child pornography at his home in Endicott, New York. At sentencing on December 19, 2017, Richard M. Squires faces a minimum sentence of 15 years and up to 30 years imprisonment for each count of child exploitation, a minimum sentence of five years and up to 20 years imprisonment for receiving child pornography, and up to 20 years imprisonment for possession of child pornography. Additionally, he faces a term of between five years and life of supervised release following his release from incarceration. He will also be ordered to register as a sex offender.
In April of 2017, law enforcement officials became aware of these offenses when one of the victims disclosed her sexual abuse by the defendant to a school official. Squires was interviewed by members of the Endicott Police Department and he confessed to making, possessing and receiving child pornography. Endicott Police and FBI Agents obtained search warrants for the defendant’s residence and electronic media located there and gathered evidence supporting his guilt.
This case was investigated by the Endicott Police Department and the FBI, and is being prosecuted by Assistant U.S. Attorney Miroslav Lovric.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc
Elma Man Pleads Guilty to Possessing Child PornographyRead 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 Kevin D. Waczkowski, 32, of Elma, NY, pleaded guilty to possession of child pornography, before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that on April 15, 2016, the Federal Bureau of Investigation’s Violent Crimes Against Children Task Force executed a search warrant at the defendant’s residence and seized several electronic devices. Forensic examination determined that Waczkowski was in possession of thousands of images of child pornography, some of which depicted prepubescent children less than 12 years of age, and some of which depicted images of violence.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Sentencing is scheduled for November 16, 2017, at 2:00 pm before Judge Vilardo.Eagle Butte Man Sentenced for Abusive Sexual Contact and Failure to AppearRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Abusive Sexual Contact and Failure to Appear was sentenced on August 9, 2017, by U.S. District Judge Roberto A. Lange.
Luther Blue Thunder, age 36, was sentenced to a total of 128 months in prison, followed by 10 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Restitution may also apply.
Blue Thunder was indicted by a federal grand jury on August 16, 2016. He was scheduled to plead guilty to Abusive Sexual Contact at a change of plea hearing on May 16, 2017, but he failed to appear for the hearing and a warrant was issued for his arrest. Blue Thunder was apprehended in Eagle Butte on May 18, 2017, and charged with Failure to Appear. He pled guilty to both offenses on May 22, 2017. Blue Thunder was sentenced to 120 months in prison for the Abusive Sexual Contact conviction and 8 months in prison for the Failure to Appear conviction, with the sentences ordered to be served consecutively.
The Abusive Sexual Contact conviction stemmed from conduct that occurred between May 2011 and September 2012, wherein Blue Thunder sexually assaulted a child who was between six and seven years old. The conduct occurred in Mission, South Dakota.
The case was investigated by the Rosebud Sioux Tribe Law Enforcement Services, the Federal Bureau of Investigation, and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Blue Thunder was immediately turned over to the custody of the U.S. Marshals Service.
Dorchester Man Pleads Guilty to Role in $4 Million Bank Fraud ConspiracyRead the Press Release
BOSTON – A Dorchester man pleaded guilty today in federal court in Boston in connection with a $4 million bank fraud scheme.
Charles Washington, 44, pleaded guilty today to one count of bank fraud conspiracy and four counts of bank fraud for his role in coordinating unauthorized withdrawals from federally insured banks. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Nov. 2, 2017.
Washington obtained bank account information, personally identifiable information, and sample signatures for bank customers with high balances. He recruited runners to impersonate the account holders at bank branches in order to make unauthorized withdrawals and obtained and distributed fake driver’s licenses to the runners that bore the runners’ photographs with the account holders’ personal information. Washington instructed the runners on how to forge the victims’ signatures. To avoid detection, runners withdrew money from victims’ accounts at several different bank branches.
Washington and others also recruited runners to open bank accounts (known as drop accounts) in the name of non-existent businesses (known as shell business). The shell businesses were registered and named as if they were title companies, property management companies, contracting businesses, and other businesses for which incoming large-dollar wire transfers would not be unusual. Washington provided the shell businesses’ information to co-conspirators who made unauthorized wire transfers in the hundreds of thousands of dollars into the drop accounts. Once the drop accounts were funded with unauthorized wire transfers, Washington and co-conspirators accompanied runners to bank branches to withdraw the money -- in cash, by check, or by wire transfers to other drop accounts -- before the victims of the unauthorized wire transfers realized that their accounts had been compromised.
Washington and co-conspirators gained unauthorized access to approximately $4 million - either in bank accounts that they took over, or in proceeds unlawfully wired to drop accounts for withdrawal - and successfully withdrew approximately $2 million.
The charges of bank fraud and bank fraud conspiracy provide for a sentence of no greater than 30 years in prison, five years of supervised release, a fine of $1 million, and restitution. 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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Boston Police Commissioner William Evans made the announcement today. Assistant U.S. Attorney Seth B. Kosto of Weinreb’s Cybercrime Unit is prosecuting the case.
Developer Sentenced to Prison for Bank Fraud in Connection with Carbondale Apartment ComplexRead the Press Release
On August 9, 2017, Christopher E. Creek, 56, of Champaign, IL, was sentenced to 12 months and 1 day in federal prison on his federal bank fraud conviction, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Creek’s conviction resulted from his participation as a developer for the construction of an apartment complex in Carbondale, IL, known as the Pointe at SIU.
When he pled guilty on May 9, 2017, Creek admitted that he submitted fraudulent requests for draws of construction loan funds to the banks that financed the construction of the apartment complex. Specifically, Creek submitted documents to the banks that falsely stated that the framing for the project had been provided by a company called "Southern Framing," and that the foundation work had been done by a company called "Solid as a Rock." Both "Southern Framing" and "Solid as a Rock" were fictitious entities that Creek created. Creek deposited the checks that were payable to the fictitious entities into bank accounts that he controlled. He then used those funds for his own purposes, including paying subcontractors and materials suppliers from prior jobs to whom he still owed money.
Creek’s sentencing hearing was held in United States District Court in Benton, Illinois. In addition to the prison sentence, Creek was also ordered to pay $376,890.84 in restitution to the victims of his crime and fined an additional $2,000. The judge also ordered Creek to serve three years of supervised release after he is released from prison.
The investigation was conducted by agents from the Springfield Division, Marion, Illinois, Resident Agency, of the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Scott A. Verseman.
Defense Contractor ADS Inc. Agrees to Pay $16 Million to Settle False Claims Act Allegations Concerning Fraudulently Obtained Small Business ContractsRead the Press Release
Virginia Beach, Virginia-based contractor ADS Inc. and its subsidiaries have agreed to pay the United States $16 million to settle allegations that they violated the False Claims Act by knowingly conspiring with and causing purported small businesses to submit false claims for payment in connection with fraudulently obtained small business contracts, the Department of Justice announced today. The settlement further resolves allegations that ADS engaged in improper bid rigging relating to certain of the fraudulently obtained contracts. The settlement with ADS ranks as one of the largest recoveries involving alleged fraud in connection with small business contracting eligibility.
“Small or disadvantaged businesses serve as important engines of economic growth, and the United States utilizes small business set-aside contracts to aide those businesses in their development,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “When ineligible companies improperly obtain set-aside contracts, they prevent the small business community from receiving the assistance that Congress intended.”
In order to qualify as a small business, companies must meet defined eligibility criteria, including requirements concerning size, ownership, and operational control. The settlement with ADS resolves allegations that ADS, together with several purported small businesses that it controlled, fraudulently induced the government to award certain small business set-aside contracts by misrepresenting eligibility requirements. The purported small businesses affiliated with ADS include Mythics Inc., London Bridge Trading Co. Ltd., as well as MJL Enterprises LLC, which falsely claimed to be an eligible service-disabled veteran-owned company, and SEK Solutions LLC and Karda Systems LLC, both of which falsely claimed to qualify as socially or economically disadvantaged businesses under the Small Business Administration’s 8(a) Business Development Program. ADS and its affiliates allegedly concealed the companies’ affiliations with ADS and knowingly made misrepresentations concerning the size of the businesses and their eligibility as service-disabled or 8(a) qualified businesses. Finally, the settlement resolves allegations that ADS engaged in illegal bid rigging schemes that inflated or distorted prices charged to the government under certain contracts.
“This settlement reflects the government’s commitment to ensure that its business partners are truthful in their dealings with the United States,” said U.S. Attorney Channing D. Phillips for the District of Columbia. “Contractors who attempt to disguise or misrepresent themselves to obtain funds reserved to promote small and disadvantaged businesses will be held accountable for their fraud on the public fisc.”
“The actions of ADS and its affiliated entities deprived legitimate small businesses of valuable federal contracting opportunities.” said Acting Inspector General Hannibal “Mike” Ware. “OIG will aggressively pursue companies that, through false statements, wrongfully benefit from small business set-aside contracts. I want to thank the Department of Justice for its leadership and dedication to serving justice in this case.”
“This case is yet another example of the tremendous results achieved through the joint efforts of the SBA, the Department of Justice, and other partner agencies, to uncover and forcefully respond to civil fraud committed by those participating in Federal Government contracting programs,” said SBA General Counsel Christopher M. Pilkerton. “This case involved fraud perpetrated in the Service-Disabled Veteran-Owned Small Business Contracting Program and the 8(a) Program for disadvantaged individuals. Identifying and aggressively pursuing instances of civil fraud by participants in these procurement programs and other set aside contracting programs, is one of SBA’s top priorities.”
The settlement with ADS resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed in federal district court in the District of Columbia by Ameliorate Partners LLP. As part of today’s resolution, the whistleblower will receive approximately $2.9 million.
The settlement is the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch, the U.S. Attorneys’ Offices for the District of Columbia and the Eastern District of Virginia, the Small Business Administration’s Office of Inspector General, and the General Services Administration’s Office of Inspector General.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Defense Contractor ADS Inc. Agrees to Pay $16 Million to Settle False Claims Act AllegationsRead the Press Release
WASHINGTON - Virginia Beach, Virginia-based contractor ADS Inc. and its subsidiaries have agreed to pay the United States $16 million to settle allegations that they violated the False Claims Act by knowingly conspiring with and causing purported small businesses to submit false claims for payment in connection with fraudulently obtained small business contracts, the Department of Justice announced today. The settlement further resolves allegations that ADS engaged in improper bid rigging relating to certain of the fraudulently obtained contracts. The settlement with ADS ranks as one of the largest recoveries involving alleged fraud in connection with small business contracting eligibility.
"Small or disadvantaged businesses serve as important engines of economic growth, and the United States utilizes small business set-aside contracts to aide those businesses in their development,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “When ineligible companies improperly obtain set-aside contracts, they prevent the small business community from receiving the assistance that Congress intended.”
“This settlement reflects the government’s commitment to ensure that its business partners are truthful in their dealings with the United States,” said U.S. Attorney Channing D. Phillips for the District of Columbia. “Contractors who attempt to disguise or misrepresent themselves to obtain funds reserved to promote small and disadvantaged businesses will be held accountable for their fraud on the public fisc.”
In order to qualify as a small business, companies must meet defined eligibility criteria, including requirements concerning size, ownership, and operational control. The settlement with ADS resolves allegations that ADS, together with several purported small businesses that it controlled, fraudulently induced the government to award certain small business set-aside contracts by misrepresenting eligibility requirements. The purported small businesses affiliated with ADS include Mythics Inc., London Bridge Trading Co. Ltd., as well as MJL Enterprises LLC, which falsely claimed to be an eligible service-disabled veteran-owned company, and SEK Solutions LLC and Karda Systems LLC, both of which falsely claimed to qualify as socially or economically disadvantaged businesses under the Small Business Administration’s 8(a) Business Development Program. ADS and its affiliates allegedly concealed the companies’ affiliations with ADS and knowingly made misrepresentations concerning the size of the businesses and their eligibility as service-disabled or 8(a) qualified businesses. Finally, the settlement resolves allegations that ADS engaged in illegal bid rigging schemes that inflated or distorted prices charged to the government under certain contracts.
"The actions of ADS and its affiliated entities deprived legitimate small businesses of valuable federal contracting opportunities.” said Acting Inspector General Hannibal “Mike” Ware. “OIG will aggressively pursue companies that, through false statements, wrongfully benefit from small business set-aside contracts. I want to thank the Department of Justice for its leadership and dedication to serving justice in this case.”
“This case is yet another example of the tremendous results achieved through the joint efforts of the SBA, the Department of Justice, and other partner agencies, to uncover and forcefully respond to civil fraud committed by those participating in Federal Government contracting programs,” said SBA General Counsel Christopher M. Pilkerton. “This case involved fraud perpetrated in the Service-Disabled Veteran-Owned Small Business Contracting Program and the 8(a) Program for disadvantaged individuals. Identifying and aggressively pursuing instances of civil fraud by participants in these procurement programs and other set aside contracting programs, is one of SBA’s top priorities.”
The settlement with ADS resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed in federal district court in the District of Columbia by Ameliorate Partners LLP. As part of today’s resolution, the whistleblower will receive approximately $2.9 million.
The settlement is the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch, the U.S. Attorneys’ Offices for the District of Columbia and the Eastern District of Virginia, the Small Business Administration’s Office of Inspector General, and the General Services Administration’s Office of Inspector General.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Dauphin County Man Charged with Bank RobberyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that David Wayne Miles, age 46, of Harrisburg, Pennsylvania, was indicted on August 9, 2017, for bank robbery and attempted bank robbery.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Miles robbed the Orrstown Bank on Simpson Street, Mechanicsburg, Pennsylvania, taking approximately $12,348, on April 6, 2017, and again on April 26, 2017, taking approximately $11,664. The indictment also alleges that on May 31, 2017, Miles attempted to rob the Community State Bank of Orbisonia, on Waterfall Road, Waterfall, Pennsylvania.
The case was investigated by the Federal Bureau of Investigation, the Mechanicsburg Police Department, and the Pennsylvania State Police. Assistant United States Attorney Daryl F. Bloom is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for each count of bank robbery is 20 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Coraopolis Man Charged with Distributing Fentanyl Resulting in DeathRead the Press Release
PITTSBURGH – An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
The one-count indictment, returned on August 8 and unsealed today, named Cleo Maurice Bronaugh, 40, of Coraopolis, PA as the sole defendant.
According to the indictment, on March 5, 2017, Bronaugh possessed with intent to distribute and distributed fentanyl that caused the serious bodily injury and death of a person who used that fentanyl.
The law provides for a maximum total sentence of up to life in prison, a fine of not more than $2,000,000, 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 Timothy M. Lanni is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Coraopolis Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Columbus Man Pleads Guilty to Dealing Lethal Heroin Fentanyl MixRead the Press Release
COLUMBUS, Ohio – Richard R. Edwards, 28, of Columbus, pleaded guilty in U.S. District Court to distributing heroin and fentanyl that resulted in the death or serious bodily injury of another.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Steve Francis, Special Agent in Charge, Homeland Security Investigations (HSI), Franklin County Prosecutor Ron O’Brien, Franklin County Sheriff Dallas Baldwin and other members of the Sheriff’s Office’s Heroin Overdose Prevention & Education (HOPE) Task Force announced the plea entered into today before U.S. Magistrate Judge Elizabeth A. Preston-Deavers.
In the statement of facts filed as part of the plea agreement in this case, Edwards admitted that his distribution of heroin and fentanyl led to a non-fatal overdose of a Columbus man in August of 2106, and a fatal overdose of a Columbus woman in December of 2016.
Edwards was arrested in March and has remained in custody since.
Distribution of heroin in this case is punishable by up to 20 years in prison.
“We will continue to work with all of our law enforcement partners through initiatives like the HOPE Task Force to bring the available federal tools and resources to bear on the narcotics traffickers who are causing so many deaths and overdoses in our Southern Ohio communities,” U.S. Attorney Glassman said.
“A fatal dose of fentanyl can fit inside the tip a finger nail, making it the deadliest chemical substance that we have to contend within the law enforcement community,” said Special Agent in Charge Francis. “Today’s guilty plea demonstrates our unrelenting resolve to bring to justice those responsible for distributing this lethal poison in our communities.”
“This is the first case investigated by the Franklin County HOPE Task Force to be adjudicated at the Federal Level since its inception in January of 2016,” said Sheriff Baldwin. “The HOPE Task Force is a Franklin County Sheriff’s Office led initiative which investigates Fatal and Non-Fatal overdose incidents with the combined objectives of incarcerating those responsible for the sale of deadly and dangerous opiates which cause death and/or serious physical harm, and linking survivors of Non-Fatal overdoses with Healthcare, Treatment, and Recovery programs overseen and administrated by Southeast Healthcare Inc.”
“This case is another example of the collaborative effort between all agencies working together in the prosecution of criminals selling drugs on the streets that are killing people,” Prosecutor O’Brien said. “We will continue to stand united against this kind of criminal conduct that continues to destroy lives on a daily basis.”
U.S. Attorney Glassman commended the investigation of this case by HSI and HOPE Task Force officers. Deputy Criminal Chief Michael J. Hunter is representing the United States in this case.
Established in 2016, the Heroin Overdose Prevention & Education Task Force was created as a restructuring of the Franklin County Drug Task Force. Experienced narcotics and homicide detectives working on the HOPE Task Force are treating opiate overdose scenes as crime scenes; investigating the source of the supply that caused the overdose. This case represents the first federal prosecution of a “death-resulting” case in Columbus that stemmed from a joint investigation with the HOPE Task Force.
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Columbia Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that on August 9, 2017, Steven D. Blosser, 40, Columbia, IL, pled guilty to an Indictment charging him with Receipt of Child Pornography which carries a penalty of a term of imprisonment of not less than five (5) years but not more than twenty (20) years, a fine up to $250,000, and a term of supervised release of not less than five (5) years to life.
Facts stipulated to by the parties were that, on March 2, 2016, a search warrant was executed at Blosser’s residence in Columbia, Illinois. Among the items seized from the defendant’s residence were an Apple iPad and a Dell desktop computer. While the search warrant was being executed, Blosser provided a voluntary, videotaped statement. During his statement, the defendant admitted having child pornography on his Apple iPad, stating that it had been on there "for years." The defendant also admitted downloading child pornography and provided the officers with a name of a website that he visited to find child pornography. He said that he had been downloading child pornography "as far back as I can remember."
Blosser also stipulated that a forensic review of his Dell computer revealed that it contained 84 image files of child pornography while a forensic review of his iPad revealed 2,124 image files of child pornography. In addition, the forensic review of the two devices revealed that, from on or about September 16, 2015, until on or about February 19, 2016, the defendant received images of child pornography, including those charged in the indictment.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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."
The case was investigated by the Columbia, Illinois, Police Department and the Federal Bureau of Investigation's Springfield Child Exploitation Task Force. The case is assigned to Assistant United States Attorney Angela Scott.
Chicago Police Officer Convicted of Obstruction of Justice for Passing Law Enforcement Information to Target of Federal Drug ProbeRead the Press Release
CHICAGO — A federal jury today convicted a Chicago Police officer on an obstruction charge for notifying a high school friend that he was the target of a federal drug investigation.
RONALD COLEMAN notified his friend's cousin that police were planning to search 10-12 houses in the friend's neighborhood, including the friend's house, as part of an investigation into drug sales. The probe involved surveillance and wiretaps and centered on the primary drug supplier, RODNEY BEDENFIELD, who was an associate of Coleman’s friend. Coleman, a Chicago Police officer working the case with the U.S. Drug Enforcement Administration, knew that his friend was involved in Bedenfield’s drug trafficking activities. On June 9, 2014, Coleman contacted the friend’s cousin about the impending search. Upon learning of it, the friend in turn passed along the information to Bedenfield, who quickly moved drugs and other contraband to an alternative location.
After a four-day trial in federal court in Chicago, the jury on Thursday convicted Coleman, 46, of Chicago, on one count of obstruction of justice. The conviction is punishable by up to 20 years in prison. U.S. District Judge Charles Norgle set sentencing for Nov. 15, 2017, at 11:30 a.m.
The verdict was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.
As a result of the leaked information, Bedenfield was observed via law enforcement surveillance carrying large bags out of a residence in the North Lawndale neighborhood and transporting them to an alternative location around the corner. On June 12, 2014, agents and officers executed an additional search warrant on the alternative location and discovered approximately 400 grams of heroin, two containers of lactose, five handguns, one rifle, multiple handgun magazines, ammunition, three digital scales, two heat sealers, a hand mixer, plastic baggies and a bill counter.
Bedenfield, 43, of Chicago, was indicted separately on multiple drug trafficking and firearms charges. He pleaded guilty to the narcotics-related counts and was convicted of the firearms-related counts at a bench trial in federal court in Chicago. He was sentenced to 18 years in prison.
The government is represented by Assistant U.S. Attorneys Shoba Pillay and Megan Cunniff Church.
Chester, PA Man Charged with Illegal Reentry After DeportationRead the Press Release
Estuardo Felix, a/k/a “Estuardo Lopez-Felix,” of Chester, PA, was charged today by Indictment with illegal reentry after deportation, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about July 12, 2017, Felix, an alien, and native and citizen of Guatemala, was found in the United States after having been deported from the United States on or about June 21, 2012 and March 18, 2015.
If convicted the defendant faces a maximum possible sentence of ten years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Jonathan B. Ortiz.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
California Man Sentenced to Nine and a Half Years for Federal Methamphetamine Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Fermin Artiaga, 36, of Perris, Calif., was sentenced today in federal court in Albuquerque, N.M., to 114 months in prison followed by four years of supervised release for his methamphetamine trafficking conviction.
Artiaga was arrested in Aug. 2015, and was charged by a criminal complaint with a methamphetamine trafficking offense after the DEA seized approximately 1.95 kilograms (4.29 pounds) of methamphetamine during an interdiction investigation at the Amtrak Train Station in Albuquerque. The methamphetamine was concealed in four bundles inside Artiaga’s suitcase. Artiaga was indicted on Sept. 10, 2015, and was charged with possession of methamphetamine with intent to distribute.
On April 6, 2017, Artiaga pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Artiaga admitted that on Aug. 22, 2015, he transported four bundles of methamphetamine weighing an aggregate of 1758 grams in a suitcase into New Mexico on an Amtrak train.
This case was investigated by the Albuquerque office of the DEA and was prosecuted by Assistant U.S. Attorney Presiliano Torrez.
Calera Man Sentenced to Nearly 16 Years in Prison as an Armed Career CriminalRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Calera man to 15 years and eight months in prison as an armed career criminal, announced Acting U.S. Attorney Robert O. Posey and Bureau of Alcohol, Tobacco, Firearms, and Explosives Assistant Special Agent in Charge David Hyche.
U.S. District Court Judge Virginia Emerson Hopkins sentenced VAUGHN ALEXANDER CROPPER, 29, for possessing a pistol after previously being convicted of a felony.
According to evidence at his April trial, Birmingham police arrested Cropper in the early morning hours of Sept. 25, 2016, in the parking lot of the USA Economy Lodge on Crestwood Boulevard in Irondale. Officers were responding to a complaint of a disturbance involving a man with a gun. The police, who were wearing body cameras, captured video of the defendant reaching into his pocket before officers seized the gun and placed him under arrest.
Cropper has multiple drug-trafficking felonies and qualified as an armed career criminal, thus facing a minimum sentence of 15 years and a maximum sentence of life in prison.
The ATF and Birmingham Police Department investigated the case, which Assistant U.S. Attorney Gregory R. Dimler prosecuted.
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CEO Indicted for Wire Fraud and Aggravated Identity TheftRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – A federal grand jury has indicted Zheng Geng, a/k/a “Jason Geng”, age 59, of Vienna, Virginia, on charges related to a scheme to defraud the United States. The indictment was returned on August 9, 2017, and unsealed today upon the arrest of Geng. Geng is the Chief Executive Officer of Xigen LLC (Xigen), which has offices in Maryland and Virginia.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Inspector General Paul Martin of the National Aeronautics and Space Administration Office of Inspector General; Inspector General Allison Lerner of the National Science Foundation Office of Inspector General; Special Agent in Charge Nick DiGiulio of the Health and Human Services Office of Inspector General; Special Agent in Charge Gordon Thompson of the U.S. Postal Service Office of Inspector General; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to the six-count indictment, Geng devised a scheme between 2005 to 2016 to defraud the United States by submitting false and fraudulent grant applications under the Small Business Innovation Research (SBIR) Program. The SBIR program aims to stimulate United States technological innovation. A further aim is to foster and encourage participation in technical innovation by socially and economically disadvantaged small businesses that in some instances are at least 51-percent owned and controlled by women. Geng prepared materially fraudulent proposals for awards, subsequent reports, and related communications under the programs.
To support the applications, Geng submitted endorsements for his grant applications using the identities of people without their permission, or misrepresenting their positions within Xigen. In addition, he submitted endorsements that misrepresented active affiliations with various universities including, Harvard University Medical School and Johns Hopkins University School of Medicine, and budgeted funds for subcontractors without their knowledge and without providing them with budgeted funds. With this false information, the United States government approved SBIR program awards and grants through the Department of Health and Human Service’s National Institutes of Health and the National Aeronautics and Space Administration. The awards totaled over $1.8 million.
According to court documents, Geng used the rewarded funds for his own personal use and the use of his family members and associates.
“The NASA Office of Inspector General will continue to aggressively investigate those who undermine and defraud NASA programs and operations,” said Inspector General Martin. “The NASA OIG appreciates the efforts of the entire investigative and prosecution team during this multi-year investigation, and we look forward to continued cooperation with our law enforcement partners in this and related matters.”
Allison Lerner, Inspector General for the National Science Foundation said, “The SBIR program is a valuable tool for advancing promising new technologies. My office will continue to vigorously pursue attempts to defraud scarce research dollars intended to promote economic growth through innovative SBIR investments.”
“The United States Department of Health and Human services provides research grant funds to qualified small businesses; we cannot tolerate the theft of taxpayer funds meant for honest research projects” said Nick DiGiulio, Special Agent in Charge for the Inspector General’s Office of the US Department of Health and Human Services.
Geng faces a maximum sentence of 20 years in prison and a $250,000 fine for wire fraud and a 2-year mandatory minimum consecutive sentence for each of the aggravated identity theft charges.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning commended the NASA Office of Inspector General, the National Science Foundation Office of Inspector General, the HHS Office of Inspector General, U.S. Postal Service Office of Inspector General and the FBI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Phil Selden and Jennifer Sykes, who are prosecuting the case and Assistant U.S. Attorney David Salem who also helped investigate this case.
Buffalo Man Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Robert Brown a/k/a Pee Wee, 54, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute and to distribute cocaine, was sentenced to time served and 1 year of supervised release by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Wei Xiang, who handled the sentencing, stated that between June 2013 and July 2014, the defendant bought quantities of cocaine from a co-defendant. The defendant then re-distributed the cocaine from his residence in Buffalo as well as from his store “Pee Wee’s Variety Store.”
The sentencing is the result of an investigation by the FBI’s Safe Streets Task Force.
Albuquerque-Area Construction Contractor Sentenced for Federal Tax Evasion and Fraud ConvictionRead the Press Release
ALBUQUERQUE – Joseph Dubois, 38, of Albuquerque, N.M., was sentenced today in federal court to 27 months in prison followed by three years of supervised release for federal tax evasion and fraudulently presenting a fictitious surety bond. Dubois was also ordered to pay $410,520 in restitution to the victims of his crimes.
Dubois, the owner and operator of Regency Development Group (RDG), a construction contractor located in Albuquerque, was charged by felony information with tax evasion and presenting a fictitious surety bond. According to the information, Dubois evaded his federal corporate tax obligations from Nov. 2011 to Oct. 2013, by opening and concealing a new bank account to circumvent tax liens, removing and dissipating assets to avoid their seizure, and by underreporting income and gross receipts. The information also alleged that Dubois created a materially false document, a surety bond, and fraudulently presented it as an actual security and financial instrument under the authority of a surety company.
On Feb. 8, 2017, Dubois pled guilty to the two charges in the information. In entering the guilty plea, Dubois admitted that as owner and operator of RDG, he evaded payment of $237,251 in federal employment taxes for tax years 2010 through 2012. Specifically, Dubois admitted that from Nov. 2011 through Oct. 2013, he opened a bank account which he used to divert funds in an attempt to circumvent liens and levies, and to evade payment of his tax liabilities. Dubois also acknowledged underreporting income and gross receipts to the IRS.
According to Dubois’s plea agreement, in Dec. 2011, RDG entered into contracts with the Ramah Navajo School Board to renovate a building at the Pine Hill School. The contracts required RDG to obtain and provide a surety bond. On Feb. 10, 2012, Dubois produced a materially false and fictitious surety bond which appeared to be an actual security under the authority of the Western Surety Company.
This case was investigated by the Albuquerque office of IRS Criminal Investigation and Department of the Interior, Office of Inspector General, and was prosecuted by Assistant U.S. Attorney Jeremy Pena.
Airline Staffing Executive Pleads Guilty to Immigration FraudRead the Press Release
Assistant U.S. Attorney Nicholas W. Pilchak (619) 546-9709
NEWS RELEASE SUMMARY – August 10, 2017
SAN DIEGO – The former Vice President of Operations for two airline mechanic staffing companies, Eleno Quinteros, Jr., pleaded guilty today to charges of making false statements in support of legal permanent resident petitions for dozens of the companies’ mechanics.
Quinteros admitted that he falsely certified that he had received no payments from the mechanics, when in fact he had demanded and collected hundreds of thousands of dollars of unlawful fees from approximately 85 of them.
According to the plea agreement, Quinteros demanded and collected as much as $567,480 from employees, even though employers are prohibited by law from demanding payment for their fees—including attorneys’ fees—in connection with the charged applications. Some of the money Quinteros collected was paid to attorneys assisting with the applications. The rest of the money was pocketed by Quinteros himself.
Quinteros was vice president of two different staffing companies, as set out in his plea agreement. The companies’ staff performed heavy maintenance on aircraft at a variety of locations nationwide. Quinteros was responsible for recruiting Mexican airline mechanics to work in the United States for the companies, and for helping recruits to obtain work visas such as TN or H-2B visas.
According to the indictment, Quinteros first assisted recruits in obtaining work visas to come to the United States. Quinteros then agreed to help at least 85 of them pursue a legal permanent residency—in exchange for substantial (and unlawful) fees. Quinteros directed many employees to pay money to his wife’s bank account, or provide him with blank money orders, in order to conceal the source of the unlawful funds.
Quinteros pleaded guilty to a single count of making a false claim in support of an immigration application, in violation of Title 18, United States Code, Section 1546(a). He admitted in his plea, however, that the underlying scheme involved more than 25 immigration documents.
“Legal permanent residency is not for sale,” said Acting U.S. Attorney Alana W. Robinson. “This Office is dedicated to fighting immigration fraud and prosecuting those who hawk lawful immigration status for their own personal financial gain.”
“The Diplomatic Security Service is committed to protecting the integrity of H-2B visas and all U.S. visas and travel documents that assist U.S. companies to legally employ foreign workers,” said Michael Bishop, Special Agent in Charge of the DSS Los Angeles Field Office. “This case is the result of the partnership among federal law enforcement agencies and DSS’ global network of special agents working together to interdict visa and passport crimes and stop criminals from reaping illegal income by exploiting U.S. visas, passports, and foreign workers.”
“Immigration benefit fraud is a serious crime, and those who corrupt the integrity of our nation’s legal immigration system must understand there are serious consequences for those actions,” said Joseph Macias, special agent in charge of Homeland Security Investigations (HSI) Los Angeles. “Not only do schemes like this potentially rob deserving immigrants of benefits they rightfully deserve, they also create a security vulnerability that could be exploited by criminals and others who pose a danger to our community. As the lead agency for the Los Angeles Document and Benefit Fraud Task Force, HSI will continue to work with our law enforcement partners to aggressively target those who conspire to manipulate and exploit our nation's legal immigration system for their own personal financial gain.”
“U.S. Citizenship and Immigration Services has zero tolerance for those who try to fraudulently misuse our country’s lawful immigration system,” said Susan Curda, USCIS District Director in Los Angeles. “We are proud of our role in uncovering this scheme and bringing the perpetrator to justice.”
Quinteros' sentencing is set for November 6, 2017 before Judge Michael M. Anello.
DEFENDANT Case No. 17-cr-557-MMA
“Max” Quinteros, Jr. Age: 45 Chula Vista, California
CHARGES
False Statement on an Immigration Document - 18 U.S.C. § 1546(a)
Maximum penalty: 10 years’ imprisonment and $250,000 fine
AGENCIES
Department of State, Diplomatic Security Service
Department of Homeland Security, Homeland Security Investigations
U.S. Citizenship and Immigration Services
Adrian Man Sentenced for Meth, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that an Adrian, Mo., man has been sentenced in federal court for drug trafficking and illegally possessing a firearm.
Jesus A. Arredondo, 24, of Adrian, was sentenced by U.S. District Judge Stephen R. Bough on Wednesday, Aug. 9, 2017, to 11 years in federal prison without parole.
On March 22, 2017, Arredondo pleaded guilty to participating in a conspiracy to distribute methamphetamine, three counts of possessing methamphetamine with the intent to distribute, and one count of being a felon in possession of a firearm.
According to the plea agreement, Jackson County sheriff’s deputies attempted to stop Arredondo (who had an unidentified female passenger in his vehicle) on Oct. 14, 2015, near the intersection of Beach Road and Colbern Road in Lee’s Summit, Mo. Arredondo, driving a stolen vehicle, led deputies on a chase that reached speeds up to 100 miles per hour. During the pursuit, Arredondo failed to yield for multiple red lights and stop signs and traveled the wrong direction on multiple roadways. Arredondo traveled off the roadway and crashed near Grain Valley, Mo., and fled on foot. Deputies took Arredondo into custody in a nearby field.
Inside Arredondo’s vehicle, deputies found 81 grams of methamphetamine, marijuana, a number of Hydrocodone and other pills and a glass pipe.
Arredondo told law enforcement officers that he and the woman in his vehicle had been driving to multiple locations to sell methamphetamine. She had taken multiple Xanax pills and fell asleep in the passenger seat while he was driving. Arredondo also admitted that he had thrown a handgun with laser sights from the vehicle as he was fleeing from law enforcement.
Arredondo told officers he facilitated many narcotics transactions, including large methamphetamine sales using his connections from Mexico. Two days earlier, he said, Arredondo had orchestrated a deal for three kilograms of methamphetamine for $35,000.
A week later, the owner of a Grain Valley business near the location where Arredondo’s vehicle crashed notified law enforcement that he found a black nylon backpack on his property. Inside the backpack was a baggie that contained 315.85 grams of methamphetamine (which Arredondo later identified as part of the three-kilogram shipment smuggled from Mexico into Texas), a digital scale and a cell phone.
On Oct. 25, 2015, Harrisonville, Mo., police officers responded to a call regarding a careless and imprudent driver. Arredondo, the driver of the vehicle, had fled on foot with a red backpack prior to the officers’ arrival. When officers arrived, they contacted Arredondo, who admitted he was driving fast. Officers searched the vehicle and found 7.6 grams of methamphetamine, drug paraphernalia, 9mm ammunition and $2,526.
On Nov. 2, 2015, Harrisonville police officers responded to a call reporting suspicious behavior at Burger King. They were directed to a vehicle that was stopped in the drive-through lane in which Arredondo was a passenger and an unidentified female was the driver. Officers searched the vehicle and found 23.7 grams of methamphetamine, 81 syringes, a glass pipe and a loaded Intratec TEC-9 firearm. They also found a black safe that was later searched and found to contain 71.7 grams of methamphetamine and a single 9mm bullet.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Arredondo has a prior felony conviction for assault for beating his girlfriend.
This case was prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the Jackson County, Mo., Sheriff’s Department, the Grain Valley, Mo., Police Department, the Harrisonville, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jackson County Drug Task Force.
Acton Couple Arrested for Defrauding the Treasury Department of over $50 Million in Tax Free Energy GrantsRead the Press Release
BOSTON – An Acton couple was arrested today and charged with defrauding the U.S. Treasury Department of more than $50 million in tax free energy grants as part of the American Recovery and Reinvestment Act of 2009.
Christopher N. Condron, 45, and Jessica Metivier, 41, were charged in an indictment unsealed today with one count of conspiracy to defraud the United States with respect to claims and three counts of wire fraud. They were released on conditions following an initial appearance in federal court in Boston today.
The indictment alleges that Condron and Metivier conspired to submit fraudulent applications to the Treasury Department for energy grants as part of the American Recovery and Reinvestment Act of 2009. The Recovery Act provided tax-free grants to individuals and businesses who put certain “specified energy property”—such as wind farms and gasification systems that convert trash into electricity—into service in a trade or business.
From May 2009 to June 2013, Condron and Metivier allegedly submitted fraudulent grant applications to the Treasury Department on behalf of four different Massachusetts companies, Acton Bio Energy, Concord Nurseries, Kansas Green Energy and Ocean Wave Energy. According to the indictment, for each of the applications, Condron and Metivier falsely claimed that Metivier and her entities had acquired, placed into service, or started construction of energy property, which allegedly included three different bio-fuel gasification systems, purportedly built at a cost of approximately $88 million, and an $84 million wind farm project. Condron and Metivier sought to be reimbursed for more than $50 million based on those costs—which the indictment alleges they never actually incurred—and received grants totaling more than $8 million. To support their applications, Condron and Metivier submitted fraudulent documentation to a Massachusetts-based attorney who, in turn, submitted the applications to the Treasury Department on their behalf.
The charge of conspiracy to defraud the United States with respect to claims provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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 Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The government acknowledges the assistance of the U.S. Department of Treasury, Office of Inspector General, Office of Investigations. The case is being prosecuted by Assistant United States Attorney Neil J. Gallagher, Jr. of Weinreb’s Economic Crimes Unit.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
9 August 2017
“Laser Sight”: Charleston Felon Convicted in Federal Court on Federal Gun Charges Following Two-Day TrialRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Garndell Jerome Macon, Jr., 32, from Charleston, South Carolina, was convicted in federal court on two felon in possession of a firearm counts after a two-day trial before United States District Court Judge David Norton. He faces a potential twenty-year sentence in federal prison.
United States Attorney Drake recognized the work of the Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, which investigated the case. “We are working with our state and local law enforcement partners to address violence in our communities. The federal firearm laws allow us to do that in an effective and expeditious manner.”
ATF Special Agent in Charge C.J. Hyman said, “ATF appreciates our strong working relationship with the Charleston Police Department and the USAO. We are committed to reducing violent crime and apprehending violent offenders. This collaborative effort and the resulting conviction showcases what can be accomplished as we continue to work together to keep our communities safe.”
Evidence presented during trial established that on October 7, 2015, the City of Charleston Police Department, responding to complaints by management of an apartment complex about people loitering and selling drugs on their property, did a drive through of the parking lot.
When the officers drove into the parking lot, they observed a number of individuals around a Honda CRV, loitering, including Macon. The smell of marijuana was in the air and they saw one of the men place a digital scale on the hood of the Honda. The people near the car scattered as soon as the police car arrived. The officers checked the car and found drug paraphernalia (the scale, multiple plastic baggy pieces, and cigar wrappings). The scale was on the hood. An officer in another unit was set up in an observation post in an adjacent parking lot to conduct surveillance.
That officer, close in distance, with the scene illuminated by streetlights, could see the Honda from where he was stationed and he could also see the front of the apartment complex. He saw Macon walk out of the complex lobby. Macon looked about nervously and walked over to the Honda and picked up the scale from the hood. He went around and opened the rear driver’s side passenger’s door of the CRV, bent down, picked up a gun, and stood up. The officer on the surveillance post alerted the other officers who rapidly responded. When they came into the parking lot, Macon began sprinting towards the entrance of an apartment building. He made it into the door and ran down the hall into an apartment.
The officers quickly followed, chasing him as he ran into the building. A video captured his entry. In a still photograph, the defendant can be seen carrying the gun, equipped with a laser sight. The laser light can also be seen projected on the floor of the lobbying as Macon scurried toward an apartment inside.
The officers located Macon inside an apartment within the complex with children present, sitting in a chair, perspiring and out of breath. The officers found a Glock .45 caliber pistol stashed between the mattress and the box springs in a bedroom in the apartment. The laser light was still on. The weapon was loaded with thirteen rounds in the magazine and one round was chambered.
Officers then returned to the unlocked Honda. On the driver’s side passenger seat rear floorboard (behind the driver’s s eat) officers saw a black handgun.
This second gun was a loaded .40 caliber Smith and Wesson XD with a round in the chamber. The officers retrieved the weapon and the digital scale which the officers had seen on the hood of the car earlier. The gun and the drug scale were recovered from the same location in the Honda where officers had observed Macon grab the Glock .40 caliber just moments earlier.
Ms. Drake advised that Assistant United States Attorney Sean Kittrell tried the case for the government. Kittrell said that the case is a small snapshot of what the police in Charleston do every day. “They confronted an armed and convicted felon. They were running into danger and not away from it. They did what they do, every day, protecting people first and places second, on behalf of all of us.”
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Zuni Pueblo Woman Pleads Guilty to Federal Voluntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Bree Lynn Coonsis, 25, a member and resident of Zuni Pueblo, N.M., pled guilty today in federal court in Albuquerque, N.M., to a voluntary manslaughter charge. Coonsis entered the guilty plea under a plea agreement that recommends that she be sentenced to an eight-year term of imprisonment followed by a term of supervised release to be determined by the court
Coonsis was arrested on May 10, 2017, on a criminal complaint charging her with killing a woman on the Zuni Pueblo on April 29, 2017, in McKinley County, N.M. According to the criminal complaint, Coonsis killed the victim by hitting the victim with her car while Coonsis was driving under the influence of intoxicating liquor or drugs.
During today’s proceedings, Coonsis pled guilty to an information charging her with voluntary manslaughter. In entering the guilty plea, Coonsis admitted that on April 29, 2017, she killed the victim by striking the victim with a vehicle, while intending to cause the victim serious bodily injury. Coonsis remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Gallup office of the FBI and the Zuni Pueblo Tribal Police and is being prosecuted by Assistant U.S. Attorney Sarah Mease.
Yonkers Gang Member Sentenced to over 30 Years in Prison for Murder of Florida Man and Other Racketeering CrimesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that KEVIN WILTSHIRE was sentenced today in White Plains federal court to a prison term of 30 years and one day for crimes committed as part of a Yonkers-based street gang, “Cruddy 650,” including the murder of Andre Folsom, who was killed in Greenacres, Florida, on May 26, 2014. WILTSHIRE pled guilty on April 10, 2017, to participating in the Cruddy 650 racketeering conspiracy, to using and carrying firearms during and in relation to that conspiracy, and to using a firearm to murder Folsom. WILTSHIRE pled guilty before U.S. District Judge Vincent Briccetti, who imposed today’s sentence.
Acting U.S. Attorney Joon H. Kim stated: “Kevin Wiltshire and his fellow gang members wrought havoc on the City of Yonkers through shootings, drug distribution, and robberies. They also took their mayhem on the road, with disastrous consequences for Andre Folsom, whom Wiltshire murdered in Greenacres, Florida, in a senseless act of violence. Thanks to the hard work of the FBI and Yonkers Police Department, Wiltshire and the other members of Cruddy 650 have been brought to justice.”
According to documents filed in this case and statements made in related court proceedings:
Cruddy 650 is a criminal enterprise operating principally in and around the City of Yonkers, New York. Cruddy 650 was founded in 2013 as the result of an alliance between gang members hailing from various parts of Yonkers, including Riverdale Avenue, Woodworth Avenue, Warburton Avenue, and Cottage Place Gardens. Even after the alliance, members of the gang hailing from Cottage Place Gardens continued to identify primarily as “Cruddy,” while members of the gang hailing from Riverdale Avenue identified primarily as “650.”
Cruddy 650 members and associates protected and promoted the gang’s power and territory, and sought to enrich its members through acts of violence, intimidation, and the sale of illegal drugs. During the time period relevant to the Superseding Indictment, members and associates of Cruddy 650 were responsible for multiple shootings and attempted murders, street robberies, robberies of banks and other businesses, bank fraud, witness tampering, and the distribution of narcotics, including crack cocaine and marijuana. Victims of the shootings and other acts of violence perpetrated by members of Cruddy 650 included both rival gang members and innocent bystanders.
The violence of the Cruddy 650 enterprise and its members spread from Yonkers, New York, to Florida. On May 26, 2014, KEVIN WILTSHIRE murdered Andre Folsom in Greenacres, Florida, shooting him in the head during a dispute in the parking lot of a Walmart store.
The tragic circumstances of Folsom’s death did not deter WILTSHIRE from further violence. After the murder, he and his fellow Cruddy 650 members returned to Yonkers, where he continued to engage in acts of violence on behalf of the gang. Of particular note, during the summer of 2014, WILTSHIRE and a co-conspirator shot into a crowd in the vicinity of Oliver Street in Yonkers. Although their objective was to kill rival gang members, no one was seriously hurt. Subsequently, on September 21, 2014, WILTSHIRE and several co-conspirators again fired on rival gang members in the vicinity of Oliver Avenue in Yonkers.
WILTSHIRE, 22, of Yonkers, New York, was sentenced to 25 years on the murder count, five years on the firearms offense, and one day on the racketeering count, all to run consecutively, to be followed by five years’ supervised release.
Mr. Kim praised the outstanding investigative work of the FBI’s Westchester County Safe Streets Task Force, which comprises agents and investigators from the FBI, the United States Probation Office, the Westchester County District Attorney’s Office, the Westchester County Department of Public Safety, the New York City Police Department, the City of Yonkers Police Department, the City of Peekskill Police Department, and the Mount Vernon Police Department. He also thanked the FBI’s Miami Division and the Palm Beach County Sheriff’s Office for their assistance.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Scott Hartman and Jessica Feinstein are in charge of the prosecution.
Woman Pleads Guilty to Medicaid Fraud and Identity Theft ChargesRead the Press Release
A Richmond woman pleaded guilty today healthcare fraud and aggravated identity theft.
According to court documents, Chermeca Harris, 36, was a Medicaid beneficiary and would misrepresent her health condition to health care providers, such as hospitals and ambulance services, in order to obtain health care benefits. Specifically, Harris would falsely represent that she was suffering from sickle cell anemia and was having a sickle cell crisis in order to obtain pain killing drugs, such as dilaudid, which she wanted to receive intravenously through the neck. In fact, doctors tested Harris in January 2016, and determined she did not have sickle cell anemia. The hospitals involved were Virginia Commonwealth University Medical Center, Chippenham, Bon Secours St. Mary’s, Memorial Regional, John Randolph Medical Center, and Henrico Doctor’s. According to court documents, it was a further part of the scheme that Harris also falsely represented her identity. On some occasions she used the name of M.M., and on other occasions she used the name of R.J.; both Medicaid recipients. She also falsely stated to investigating federal agents that her name was M.M. and that she had sickle cell anemia.
Harris was charged as part of the largest ever health care fraud enforcement action by the Medicare Fraud Strike Force, involving 412 charged defendants across 41 federal districts, including 115 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving approximately $1.3 billion in false billings. Of those charged, over 120 defendants, including doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Thirty state Medicaid Fraud Control Units also participated in today’s arrests. In addition, HHS has initiated suspension actions against 295 providers, including doctors, nurses and pharmacists.
Harris pleaded guilty to healthcare fraud on the Medicaid program and aggravated identity theft. She faces a mandatory minimum of two years in prison and a maximum penalty of 12 years in prison, when sentenced on October 26. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; and Nick DiGiulio, Special Agent in Charge, Philadelphia Regional Office of Inspector General of Department of Health and Human Services, made the announcement after the plea was accepted by Magistrate Judge David J. Novak. Assistant U.S. Attorney David T. Maguire is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-77.
William Merriweather to Serve Life in Prison for Deadly 2007 Bessemer Bank RobberyRead the Press Release
BIRMINGHAM – A federal judge today sentenced William Merriweather Jr. to life in prison for robbing a Bessemer Bank in 2007 and intentionally shooting four tellers, killing two and seriously wounding the others, during the crime, announced acting U.S. Attorney Robert O. Posey and FBI Special Agent in Charge Johnnie Sharp.
In a series of hearings today, U.S. District Judge R. David Proctor found Merriweather, 41, competent to stand trial, then accepted his guilty pleas and sentenced him to prison for the rest of his life.
“The victims of Merriweather’s brutal crime and the families of the victims whom he killed have endured a long wait for him to be convicted and punished,” Posey said. “Today that wait ends, and Merriweather will never again walk free.”
“Merriweather's utter disregard for human life is beyond comprehension,” Sharp said. “I applaud the sentence handed down today, as Merriweather will now spend the rest of his life behind bars as a consequence for his heartless actions.”
Repeated court-ordered mental evaluations prompted many delays in Merriweather’s prosecution since he robbed the West Bessemer branch of Wachovia Bank on May 14, 2007, shooting and killing tellers Eva Hudson and Sheila Prevo and wounding tellers Anita Gordon and Latoya Freeman. Jefferson County sheriff’s deputies arrested Merriweather outside the bank after he exited holding a gun to the bank manager’s head and using him as a shield.
As part of a plea agreement between Merriweather and federal prosecutors, the government agreed to withdraw its pursuit of the death penalty in exchange for Merriweather’s guilty pleas. He pleaded guilty to armed bank robbery resulting in death, using and carrying a firearm during a crime of violence, and two counts of causing a death by using a firearm during a crime of violence.
Merriweather’s deadly bank robbery took place as follows, according to his guilty plea:
Merriweather, wearing a green baseball cap, shirt, tie and slacks, entered the Bessemer bank shortly after it opened and moments later, without saying a word, walked up behind a customer at Hudson’s teller window and shot both Hudson and Prevo in the head. Prevo died instantly. Hudson died soon after.
Merriweather then grabbed Freeman and began looking for the vault and demanding the vault key and money. When Gordon attempted to hand keys to Merriweather, he shot her in the face at point-blank range.
Merriweather then turned the gun on Freeman and fired a shot at her head. Freeman was standing near Merriweather, her hands up in front of her face, and the bullet deflected off her hand, severing part of her right index finger.
After shooting the four tellers, Merriweather walked past the teller windows, grabbing about $11,255 and stuffing it into a plastic bag. Merriweather started to leave the bank but a customer who had darted out the door when the shooting began was armed and waiting beside his car for the robber to exit. Several sheriff’s deputies also had arrived and taken positions in the parking lot.
Merriweather moved away from the door into the bank’s interior and found the manager crouched behind his desk. Merriweather grabbed the man, put a gun to his head and walked out of the bank, holding the manager in front of him. When Merriweather tripped at the corner of the building, the manager broke free and a deputy fired one shot at Merriweather, striking him in the leg and groin and putting him on the ground.
The FBI, Jefferson County Sheriff’s Office and Bessemer Police Department investigated the case, which Assistant U.S. Attorney William G. Simpson prosecuted.
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Westerly Resident Detained on Child Pornography ChargesRead the Press Release
PROVIDENCE – Jonathan Breslin, 32, of Westerly, was ordered detained in federal custody following his initial appearance in federal court in Providence today before U.S. District Court Magistrate Judge Patricia A. Sullivan on a criminal complaint charging him with receiving and distributing child pornography; possessing and accessing with intent to view child pornography; transfer of obscene material to a minor via interstate commerce; and attempted production of child pornography.
Breslin was arrested earlier today following a federal court authorized search of his Westerly residence, and the seizure of a computer, a digital media storage device, and a cell phone allegedly containing child pornography. The search was conducted by agents from Homeland Security Investigations (HSI) and members of the Rhode Island State Police Internet Crimes Against Children Task Force, with the assistance of members of the Westerly and Warwick Police Departments.
Breslin’s arrest, initial appearance in U.S. District Court and detention are announced by Acting United States Attorney Stephen G. Dambruch; Matthew J. Etre, Special Agent in Charge of HSI for New England; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; Westerly Police Chief Richard G. Silva; and Warwick Police Chief Colonel Stephen M. McCartney.
According to court documents, it is alleged that in late March 2016, a law enforcement officer in Saskatchewan, Canada, arrested an individual in an unrelated matter. A search of a cell phone belonging to the individual resulted in the discovery of an online mobile chat application allegedly used to discuss and share child pornography images and videos to a network of users. A review by Saskatchewan law enforcement identified 78 unique users who allegedly shared and/or communicated about child pornography.
Information developed and records obtained by Canadian law enforcement through Canadian court orders were provided to HSI agents who, through further investigation, identified IP address in the United States that were allegedly used to participate in some of the conversations, and/or to upload and view child pornography. Among the IP address identified was one allegedly belonging to Breslin.
Further investigation by an HSI agent in Rhode Island included online chats between Breslin and the agent posing as an individual interested in discussing, viewing and sharing child pornography. It is alleged that Breslin discussed viewing, possessing and attempted production of child pornography.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
The Rhode Island ICAC Task Force is comprised of members of the Rhode Island State Police Computer Crimes Unit along with detectives from the Warwick, Cranston, Newport, East Providence Police, Pawtucket, North Kingstown, Portsmouth and Woonsocket Police Departments and agents from Homeland Security Investigations and United States Postal Inspection Services.
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U.S. Attorney's Office Concludes Investigation into Fatal Shooting of Terrence SterlingRead the Press Release
WASHINGTON - The U.S. Attorney’s Office for the District of Columbia announced today that there is insufficient evidence to pursue federal criminal civil rights or District of Columbia charges against an officer from the Metropolitan Police Department (MPD) who fatally shot Terrence Sterling on Sept. 11, 2016, in Northwest Washington.
The U.S. Attorney’s Office and the Metropolitan Police Department (MPD) conducted a comprehensive review of the incident. This included law enforcement and civilian witness accounts, photographs, diagrams, physical evidence, recorded radio communications (911 calls and radio runs), District of Columbia Department of Transportation (DDOT) video, Closed Circuit Television (CCTV) video, MPD photo radar footage, cellphone video, body-worn camera footage, law enforcement agency reports from MPD and the FBI, MPD General Orders, accident reconstruction reports, speed analysis data, reports from District of Columbia Department of Fire and Emergency Medical Services, and the autopsy report for Mr. Sterling.
Following this review, the U.S. Attorney’s Office has concluded that there is insufficient evidence to prove beyond a reasonable doubt that the officer violated Mr. Sterling’s civil rights by willfully using more force than was reasonably necessary, had the necessary criminal intent when he shot Mr. Sterling, or was not acting in self-defense.
The evidence is consistent with the following chronology:
The chain of events began at approximately 4:20 a.m. on Sept. 11, 2016, at the intersection of 15th and U Streets NW. The MPD officer and his partner were working on the Third District’s Crime Suppression Unit, a specialized crime patrol team. Both were in full uniform and in a marked cruiser. The officer was the passenger and his partner was the driver. The officers were stopped at a red light, westbound on U Street NW, when they observed a motorcyclist, later identified as Mr. Sterling, 31, drive his motorcycle alongside their cruiser. Mr. Sterling pulled in front of the cruiser and briefly stopped. Mr. Sterling looked over his shoulder in the direction of the officers and then accelerated at a high rate of speed through the red light.
The officers activated their lights and siren and attempted to stop Mr. Sterling. Mr. Sterling did not stop. The officers attempted to follow Mr. Sterling, at times losing visual contact with him. During this period, several officer and civilian witnesses observed Mr. Sterling operating his motorcycle at excessive and dangerous speeds—sometimes estimated at 100 miles per hour or more. One MPD sergeant reported seeing the motorcycle in the area of 11th and U Streets, speeding through all of the red lights. The motorcycle was going so fast that it nearly hit another police cruiser in the area. In another instance, Mr. Sterling sped through an intersection at 16th and U Streets NW just moments after a bicyclist had ridden through it.
The two officers, meanwhile, continued their attempt to follow Mr. Sterling, but lost sight of him again at Ninth and U Streets. As they kept looking for him, they heard the sound of a motorcycle’s revving engine. This time, they located Mr. Sterling on Third Street NW, where he was bypassing cars backed up because of a red light.
According to the evidence, after Mr. Sterling stopped his motorcycle at the intersection of Third and M Streets NW, the officers pulled their cruiser into the intersection and partially blocked Mr. Sterling’s lane of travel. The officers intended to stop the motorcycle’s forward progress and arrest Mr. Sterling. With Mr. Sterling still on his motorcycle and generally facing the passenger side of the cruiser, the officer removed his firearm from the holster, put it into the tuck position (pointed downward and close to his body), and opened the cruiser’s passenger door to exit the cruiser.
In this moment, according to the evidence, Mr. Sterling revved his motorcycle and then accelerated and turned it toward the cruiser’s exposed passenger side. The officer, who was partially out of the cruiser, never got a chance to fully exit the vehicle. He felt the impact of the motorcycle hitting the cruiser’s door. The impact caused by the advancing motorcycle caused a dent in the cruiser’s open door and a bruise to the officer’s knee. The officer reacted by immediately firing two rounds at Mr. Sterling through his front passenger window. The rounds struck Mr. Sterling in the right side and neck. The shooting was at approximately 4:27 a.m.
Following the shooting, the officer made a radio transmission requesting assistance and an ambulance. He and his partner attempted to perform life-saving measures, but were unsuccessful. Emergency medical personnel transported Mr. Sterling to Howard University Hospital, where he was pronounced dead.
Toxicology results determined that Mr. Sterling’s blood alcohol content was .16. Under District of Columbia law, that is approximately two times the legal limit. Mr. Sterling also tested positive for THC, the active ingredient in marijuana.
The officers’ pursuit of Mr. Sterling lasted several minutes and covered approximately 25 city blocks. During that time, Mr. Sterling pulled in front of the officers’ marked cruiser, looked directly at them, and then sped through a red light; drove approximately 100 miles an hour in an urban environment while running several more red lights; narrowly averted collisions with another police cruiser and a civilian; and refused multiple times to surrender to the lawful authority of the police.
After a careful, thorough, and independent review of the evidence, federal prosecutors have found insufficient evidence to prove beyond a reasonable doubt that the officer willfully used unreasonable force and/or was not acting in self-defense when he discharged his service weapon at Mr. Sterling.
Use-of-force investigations generally
The U.S. Attorney’s Office reviews all police-involved fatalities to determine whether sufficient evidence exists to conclude that any officers violated either federal criminal civil rights laws or District of Columbia law. To prove such violations, prosecutors must typically be able to prove that the involved officers willfully used more force than was reasonably necessary. Proving “willfulness” is a heavy burden. Prosecutors must not only prove that the force used was excessive, but must also prove, beyond a reasonable doubt, that the officer acted with the deliberate and specific intent to do something the law forbids. A conclusion that “there is insufficient evidence” is not meant to suggest anything further about what evidence, if any, exists.
The U.S. Attorney’s Office remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources necessary to ensure that all allegations of serious civil rights violations are investigated fully and completely. The Metropolitan Police Department’s Internal Affairs Bureau investigates all police-involved fatalities in the District of Columbia.
Twenty-one people indicted in federal court for trafficking heroin in Youngstown and RavennaRead the Press Release
Twenty-one people were indicted in federal court for their roles trafficking heroin and other drugs in the Youngstown and Ravenna areas, law enforcement officials said.
Arrests were executed this morning for people named in three separate indictments.
A 79-count indictment charges 12 people with drug trafficking and related crimes for a conspiracy beginning at least as early as August 2015 and continuing through June 8, 2016.
Indicted are: Aaron L. Rogers, 47; Cametrius K. Adams, 40; Darry K. Woods, 40; Mack F. Hill, 25; James L. Jackson, 41; Deondea K. Hill, 23; Qeevys D. Clinkscale; Trina Hill, 43; Brian K. Hunter, 44; John J. Montero, 39; Terrell L. Leonard, 38, and Cornell L. Kennedy, 33. All the defendants are from Youngstown but Clinkscale, who is from Cleveland.
Those defendants conspired to possess with the intent to distribute and to distribute heroin, cocaine and crack cocaine, used cellular telephones to facilitate their drug trafficking activities, maintained a drug premises and some were felons in possession of firearms and ammunition.
Woods supplied heroin to Jackson for distribution in the Youngstown area while Rogers supplied Jackson with heroin and cocaine. Jackson, in turn, supplied drugs to Montero and the Hills. Jackson also supplied heroin to Clinkscale, Hunter, Leonard, Adams and the Hills, according to the indictment.
Trina Hill maintained a premises on Ravenwood Avenue in Youngstown, for the purposes of distributing and storing drugs. Rogers, Jackson, Montero and Trina Hill possessed firearms and U.S. currency as part of the conspiracy, according to the indictment.
Jackson, Montero, Rogers and Hunter are charged with being felons in possession of firearms and ammunition.
In a related case, seven people were charged in a 35-count indictment with conspiracy to possess with intent to distribute heroin. The conspiracy took place in 2015 and was focused on heroin distribution in Youngstown.
Indicted are: Richard L. Jones, 50, of Ravenna; Willie J. Beacham, 69, of Youngstown; Terrell L. Leonard, 38, of Youngstown; Ronald C. Gilbert, 40, of Youngstown; Shajehan Haywood, 45, of Youngstown; Ricky C. Jordan, 33, of North Lima, and Shane S. Blair, 38, of Sebring.
Jones supplied heroin to Haywood and Leonard, who then sold the drugs to Blair, Beacham, Gilbert, and Jordan for distribution in the Youngstown area, according to the indictment.
In another related case, a 20-count indictment was filed charging three people with distributing heroin in the Ravenna area.
Indicted are: Antonio D. Liddell, 37, of Ravenna; Daryl Keith Jones, 50, of Ravenna, and Brook Brooks, 36, of Twinsburg.
Jones and Brooks travelled to Michigan to obtain heroin and then, along with Liddell, sell it around Ravenna. This took place from as early as November 2015 through January 2016, according to the indictment.
“Today more than 20 people who bring heroin to our neighborhoods were taken off the street,” said Acting U.S. Attorney David A. Sierleja. “Ohio has been devastated by heroin and opioids over the past few years. This is an example of law enforcement working together to lock up dangerous people supplying the drugs.”
“These individuals brought heroin, cocaine and violence to our community,” said FBI Special Agent in Charge Stephen D. Anthony. “This multi-agency, multi-state roundup is another example of the collaborative efforts engaged in by local and federal law enforcement agencies in an effort to rid our streets of drugs and the dangerous individuals that supply them.
“These charges and the arrest of 22 people in Youngstown and Ravenna demonstrate that the drug epidemic is as significant in Northeast Ohio as anywhere in the United States,” said DEA Special Agent in Charge Timothy Plancon. “Investigating and bringing to justice the individuals that are contributing to Ohio’s opioid epidemic, and its related violence and societal costs, is DEA’s and our partner’s top priority.”
Captain Larry Limbert of the Portage County Sheriff's Office/Portage County Drug Task Force said: “Without a cooperative effort between local and federal agencies we would not have been as successful in shutting down this large-scale narcotics organization.”
“ATF remains committed to removing violent offenders from our community,” said Trevor Velinor, Special Agent in Charge for ATF 'a Columbus Field Division. “We look forward to continuing to work with our partners at all levels to make our citizens safer.”
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The joint investigation preceding the indictment was conducted by the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Mahoning Valley Law Enforcement Task Force, the Portage County Drug Task Force and the Youngstown Police Department, with the assistance of the Mahoning County Prosecutor’s Office. The cases are being prosecuted by Assistant U.S. Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Texas Law Enforcement Gets Safety and Survival TrainingRead the Press Release
HOUSTON – Nearly 100 law enforcement agents and officers from across the state of Texas are attending an officer safety training conference sponsored by the Department of Justice, announced Acting U.S. Attorney Abe Martinez. The officer saftey and wellness training program is entitled Preventing Violence Against Law Enforcement and Ensuring Officer Resilience and Survivability, aka VALOR, and it is part of a the recently-announced Houston Law Enforcement Violent Crime Initiative created to proactively fight violent crime across the Greater Houston area.
“Each day, law enforcement at the federal, state and local levels face numerous threats while on duty,” said Martinez. “It is our job to provide them all the tools necessary to promote the safe execution of their duties as they work together to keep our communities safe”.
Martinez opened the program today which will include presentations by federal, local and state law enforcement experts from across the nation. The three-day conference is being held at Drug Enforcement Administration. The United States Attorney’s Office (USAO) and the Regional Organized Crime Information Center are co-hosting the event which is sponsored by the Department of Justice’s Bureau of Justice Assistance.
The VALOR initiative offers a national response to emerging trends and aims to help law enforcement agencies adequately prepare officers for the threats they face while on duty. The goal is to reduce violence against law enforcement and improve officer survivability. VALOR enables the entire U.S. law enforcement community to have access to and benefit from the latest expertise, analysis, tactics, interdiction techniques and response methods to address this critical problem and to reduce the number of officer fatalities. This goal is achieved through ongoing identification of emerging criminal threats, the development and delivery of knowledge and skills-based training to effectively address those threats as well as the promotion of attentive vigilance among law enforcement to proactively assess ever-changing circumstances.
This long-term officer safety initiative includes the comprehensive and multifaceted training program which is supported by data collection and analysis, policy development support and technical assistance. VALOR is designed to reach thousands of officers and law enforcement managers and policymakers through in-person (classroom and hands-on) and distance-learning efforts, resources and publications and technical assistance.
The VALOR training being offered this week was designed for front-line law enforcement to promote officer safety and help prevent injuries and deaths to law enforcement officers in the line of duty. In this training, participants gain an understanding of emerging threats, including those posed by antigovernment criminal extremists and learn techniques for anticipating and surviving a violent encounter. Officers also learn how to identify concealed weapons and armed gunmen, gain knowledge of the mental and physical skills required for high-risk tactical situations that may involve active shooters, high-risk tactical considerations, specific threat groups and violent criminals as well as an understanding of the importance of self-aid/buddy-aid training.
At a previous event held at the U.S. Attorney’s Office last month, law enforcement executives received training that addressed officer safety issues relevant to the roles and responsibilities of law enforcement executives, discussed the effectiveness of past and current officer safety policies and strategies, and identified and explored new ideas regarding agencies’ approaches to officer safety.
St. Paul Man Pleads Guilty to Attempted Armed Robbery of Convenience StoreRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the guilty plea of MICKIAH LATRELL JACKSON, 32, for the January 2017 violent attempted armed robbery of a Super America gas station and convenience store in St. Paul, Minn. In May 2017, a grand jury returned a two-count Indictment, charging JACKSON with one count of interference with commerce by attempted robbery pursuant to the Hobbs Act, and with one count of using, carrying, and discharging a firearm during a crime of violence. JACKSON entered his guilty plea to both counts today before Senior Judge Michael J. Davis in U.S. District Court in Minneapolis, Minn.
“This is a perfect example of how intelligence solves crimes,” said ATF Special Agent in Charge James Modzelewski of the St. Paul Field Division. “Partly based on use of the ATF National Integrated Ballistic Information Network we were able to link different crime scenes together, ultimately leading us to Jackson. Getting this career offender behind bars is no doubt going to make the community a safer place. This was a great collaboration on the part of St. Paul Police, Metro Transit Police, the Ramey County Attorney’s Office, the U.S. Attorney’s Office and ATF. Our hats off to these professionals for pulling the pieces of this puzzle together.”
According to the defendant’s guilty plea and documents filed in court, on January 7, 2017, JACKSON entered a Super America (“the SA”) gas station in St. Paul, Minn., pulled a semiautomatic firearm from his waistband and pointed it at the cashier while demanding money from the register. The cashier pushed the defendant’s gun away and struggled with the defendant for a few seconds before JACKSON aimed his firearm at the ground and discharged one round. JACKSON again pointed the gun at the cashier’s face and demanded money from the register. Another store employee quickly shut the bulletproof glass door of the cashier station and JACKSON fled the SA on foot empty-handed.
According to the defendant’s guilty plea and documents filed in court, on February 25, 2017, JACKSON again entered the SA, and the employee who slammed the glass door shut on the defendant during the attempted robbery recognized the defendant. After the employee notified an off-duty St. Paul Police Officer who was working at the SA, JACKSON was arrested. Upon execution of a search warrant of the defendant’s residence, law enforcement investigators recovered a black stocking cap and other items of clothing consistent with what the defendant was wearing in the SA surveillance video.
The case was the result of an investigation conducted by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives, the St. Paul Police Department, and the Metro Transit Police, with assistance from the Ramsey County Attorney’s Office.
Assistant U.S. Attorney Benjamin Bejar is prosecuting the case.
Defendant Information:
MICKIAH LATRELL JACKSON, 32
St. Paul, Minn.
Convicted:
- Interference with commerce by attempted robbery, 1 count
- Using, carrying, and discharging a firearm during and in relation to a crime of violence, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Scranton Man Charged with Bank RobberyRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Wyatt Erb, age 47, of Scranton, Pennsylvania, was indicted on August 8, 2017, by a federal grand jury for bank robbery.
According to United States Attorney Bruce D. Brandler, the indictment alleges that on August 1, 2017, Erb robbed the First National Bank in Nicholson, Pennsylvania.
The case was investigated by the Dalton Police Department, South Abington Township Police Department, the Pennsylvania State Police, and the Federal Bureau of Investigation. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Prince George’s County Liquor Board Official Indicted for Federal BriberyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – On August 7, 2017, a federal grand jury indicted Anuj Sud, age 39, of Hyattsville, Maryland, on charges related to a bribery conspiracy. Sud allegedly solicited and accepted bribes in the performance of his official duties in Prince George’s County.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.
Sud was a Liquor Board Commissioner and has been a licensed attorney in Maryland since 2005, with offices in College Park. According to court documents, in September 2015, Sud solicited bribes from a lobbyist in exchange for Sud’s assistance with liquor board matters. At a subsequent meeting, Sud and the lobbyist discussed Sud voting favorably in two upcoming hearings concerning the lobbyist’s clients, in exchange for money. The lobbyist advised that the hearings would take place on December 2 and December 15, 2015. At each of the hearings, Sud took favorable action on behalf of the lobbyist’s client. Following each hearing, the lobbyist met with Sud and gave Sud $1,000 cash for Sud’s assistance. Similarly, on November 30, 2016, Sud received a $1,000 bribe payment in exchange for taking favorable action on behalf of the lobbyist’s client.
Sud was charged with two counts of bribery, for each of which he faces a maximum sentence of ten years in prison.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning commended the FBI, IRS-CI, and Prince George’s County Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Thomas P. Windom, Menaka S. Kalaskar, and Arun G. Rao, who are prosecuting the case.
Plainfield Man Charged with Producing Child PornographyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury in Hartford returned an indictment today charging RYAN STONE, 30, of Plainfield, with one count of production of child pornography.
The indictment alleges that between March 30 and April 1, 2017, STONE used a minor to engage in sexually explicit conduct for the purpose of producing a video depiction of such conduct.
If convicted of the offense, STONE faces a mandatory minimum term of imprisonment of 15 years and a maximum term of life.
STONE has been in state custody since April 19 when he was arrested for criminal trespass in the first degree and criminal violation of a restraining order.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Homeland Security Investigations and the Plainfield Police Department. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Pittsburgh Man Indicted on Federal Drug and Gun ChargesRead the Press Release
PITTSBURGH – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, Acting United States Attorney Soo C. Song announced today.
The three-count indictment, returned on August 8, named Lamont Willis, age 45, of Pittsburgh, Pennsylvania, as the sole defendant.
According to the indictment, on or about March 8, 2017, Willis possessed with the intent to distribute quantities of cocaine and cocaine base, commonly known as crack, Schedule II controlled substances. Further, on that same date, Willis possessed a Smith & Wesson .357 caliber revolver, a Harrington & Richardson .22 caliber revolver, a Remington .22 caliber rifle, a .308 caliber Mauser rifle, and numerous rounds of ammunition in furtherance of said drug trafficking crime. It is unlawful for Willis, who has previously been convicted of a felony offense, to possess a firearm or ammunition.
The law provides for a maximum total sentence of not less than five years and up to life in prison, a fine not to exceed $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, City of Pittsburgh Bureau of Police and North Strabane Township Police Department, conducted the investigation leading to the indictment in this case. This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.