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Tuesday 6 June 2017
Camden County, New Jersey, Man Admits Conspiracy to Sexually Exploit ChildrenRead the Press Release
CAMDEN, N.J. – A Collingswood, New Jersey, man today admitted conspiring with his former girlfriend to produce sexually explicit images of two children, Acting U.S. Attorney William E. Fitzpatrick announced.
Alexander Capasso, 43, pleaded guilty before U.S. District Judge Jerome B. Simandle to Count One of an indictment charging him with conspiring with Janine Kelley, 36, of Audubon, New Jersey, to engage in the sexual exploitation of children.
According to documents filed in this case and statements made in court:
Capasso began a sexual relationship with Kelley in 2010. During that relationship, Capasso took, or allowed Kelley to take, recorded images of Capasso engaged in sexually explicit conduct with a child. Capasso also took, or allowed Kelley to take, recorded images of Kelley engaged in sexually explicit conduct with two children.
According to the terms of the plea agreement, if accepted by the court, Capasso will receive a term of between 15 and 20 years in prison as well as a lifetime of supervised release. He also faces a potential $250,000 fine and must pay full restitution to the victims. Sentencing is scheduled for Sept. 20, 2017. Capasso has been in federal custody since his July 20, 2015 arrest.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI Philadelphia Division, under the direction of Special Agent in Charge Michael Harpster, and the FBI Washington D.C., Field Office, under the direction of Assistant Director in Charge Andrew Vale, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorneys Diana Carrig and Sara Aliabadi of the U.S. Attorney’s Office in Camden.
Defense counsel: Terri Lodge Esq., Cinnaminson, New Jersey
California Man Sentenced to Prison for Federal Drug Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Jesus Omar Morales-Anguiano, 35, of Hesperia, Calif., was sentenced today in Albuquerque, N.M., to 60 months in prison followed by four years of supervised release for his narcotics trafficking conviction.
Morales-Anguiano was arrested in July 2015, after law enforcement officers found approximately 394.09 grams (.86 pounds) of heroin, 29.66 grams (.06 pounds) of cocaine and 28.46 grams (.06 pounds) of methamphetamine in his vehicle during a traffic stop. According to the criminal complaint, Maestas agreed to have a narcotics canine inspect his vehicle, and after the canine alerted to the presence of drugs, the officers located the wrapped packages concealed in the vehicle’s stereo unit.
Morales-Anguiano was subsequently indicted on Aug. 12, 2015, and charged with possession of heroin, cocaine and methamphetamine with intent to distribute on July 21, 2015, in Bernalillo County, N.M.
Morales-Anguiano entered a guilty plea to the indictment on Dec. 20, 2016, and admitted that on July 21, 2015, he possessed heroin, cocaine and methamphetamine while he was driving to Albuquerque from California. Morales-Anguiano further admitted that he was to be paid when he arrived back in California.
This case was investigated by Homeland Security Investigations and the New Mexico State Police. Assistant U.S. Attorney Letitia C. Simms prosecuted the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Berkeley County man pleads guilty to his role in a heroin distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Charles Wright, 37, of Martinsburg, West Virginia, was convicted of heroin distribution, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Wright admitted to traveling between Maryland and West Virginia to aid in a heroin distribution operation in March 2016.
Wright pled guilty to one count of “Aiding and Abetting Interstate Travel in Aid of Racketeering.” He faces up to five years in prison and a fine of up to $500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Anna Z. Krasinski prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Eastern Panhandle Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Albuquerque Man Sentenced for Conviction on Misdemeanor Charge of Assaulting a Federal OfficerRead the Press Release
ALBUQUERQUE – Joe J. Zambrano, 55, of Albuquerque, N.M., was sentenced today in federal court in Santa Fe, N.M., to six months in prison followed by one year of supervised release for his conviction on a misdemeanor charge of assaulting, resisting and impeding a federal officer in the performance of their official duties.
Zambrano was charged in a criminal complaint with assaulting, resisting or impeding federal officers, and providing false information to law enforcement officers on Jan. 15, 2017, in Bernalillo County, N.M. According to the criminal complaint, on Jan. 15, 2017, Zambrano attempted to use his vehicle as a weapon against Park Rangers of the National Park Service during a routine traffic stop within the Petroglyph National Monument. Zambrano then provided a false name, birthdate and social security number to the Park Rangers in response to their request for Zambrano’s identification information.
Zambrano subsequently was charged by a misdemeanor information on Jan. 18, 2017, with assaulting, resisting and impeding a federal officer. On March 1, 2017, Zambrano pled guilty to the information. and admitted that on Jan. 15, 2017, he nearly struck a Park Rangers with his vehicle while attempting to flee from two Park Rangers. Zambrano further admitted that he ignored the Park Rangers’ verbal commands that he stop his vehicle.
This case was investigated by the National Park Service and was prosecuted by Assistant U.S. Attorney Eva Fontanez.
Monday 5 June 2017
Winter Harbor Man Sentenced to Five Years for Possession of Child PornographyRead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Jack Palmer, 66, of Winter Harbor, Maine, was sentenced today in U.S. District Court to five years in prison to be followed by ten years of supervised release for possession of child pornography. Palmer was convicted on September 13, 2016 following a jury trial.
The evidence at trial revealed that on October 23, 2014, law enforcement officers executed a search warrant at Palmer’s residence where they recovered a laptop computer and compact disks. A forensic examination of these items revealed over 300 images and videos of child pornography. During two separate interviews with law enforcement, Palmer admitted to searching for, viewing, and collecting child pornography.
At sentencing, Judge John A. Woodcock, Jr. noted that Palmer had done something “terribly wrong” and that the images of child pornography were “abhorrent.” Judge Woodcock admonished Palmer for committing a “terrible crime against children.”
The investigation was conducted by the Maine State Police Computer Crimes Unit and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
West African computer hacker sentenced to Federal PrisonRead the Press Release
ATLANTA - Eric Donys Simeu, a/k/a Martell Collins, a citizen of Cameroon extradited from France, has been sentenced to four years, ten months in federal prison for a series of “phishing campaigns” which targeted clients of Global Distribution Systems.
“This case shows the global reach of our cyber investigation and prosecution capabilities,” said U.S. Attorney John Horn. “The great work of our domestic and international law enforcement partners brought a cybercriminal operating from the streets of West Africa to justice for seeking to harm one of our district’s corporate citizens, among others.”
“The sentencing of international cyber hacker Eric Donys Simeu to federal prison, as well as his arrest abroad and the resulting and protracted international extradition that brought him back to the U.S., is a direct result of the hard work and persistence of numerous FBI investigators and federal prosecutors working with their international partners. The cooperation between law enforcement, both domestic and international, and the victim companies targeted, as seen in this case, is an example of what it takes to investigate, apprehend, and present for prosecution those international criminals who feel that they are beyond the reach of U.S. law enforcement,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
“This sentencing sends a strong message that DSS is committed to making sure those who commit cybercrimes, identity theft and fraud, face consequences for their criminal actions,” said Richard Ingram, Special Agent in Charge, U.S. Department of State’s Diplomatic Security Service, Washington, D.C. Field Office. “Diplomatic Security’s strong relationship with the U.S. Attorney’s Office and presence around the world are essential to our success in partnering with international law enforcement, investigating, apprehending and returning offenders to the United States to face justice.”
According to U.S. Attorney Horn, the charges, and other information presented in court: Eric Simeu was responsible for a series of “phishing campaigns” which targeted customers of Global Distribution System (“GDS”) companies from approximately July 2011 to September 2014. The GDS companies impacted by Simeu’s criminal conduct included Travelport, which maintains a major presence in Atlanta, and Sabre, which is headquartered in Southlake, Texas.
A “phishing campaign” is the act of sending targeted emails to individuals for the purpose of acquiring usernames and passwords. The emails masquerade as an official communication from a legitimate company to gain the trust of the recipient and deceive them into providing protected information.
GDS companies provide travel booking services to travel agencies and travel-related websites. Airline tickets that are issued from sources other than air carriers themselves are generally processed through a GDS company. Customers of GDS companies, such as representatives from a travel agency or travel-related website, are issued unique login credentials that are used to authenticate their identity and facilitate the issuance of airline tickets on GDS servers.
Simeu’s phishing campaigns targeted customers of Travelport and Sabre, causing phishing emails to be delivered to their customers for the purpose of obtaining and stealing their unique log-in credentials. Simeu and others used the stolen log-in credentials to access the servers of Travelport and Sabre and cause the issuance of fraudulent airline tickets. Simeu and others then sold these airline tickets to customers, mostly in West Africa, for fractions of the actual cost, or used them for personal travel. The value of the fraudulently issued airline tickets exceeded $2 million.
On September 3, 2014, Eric Donys Simeu, 32, was arrested by French law enforcement pursuant to a federal criminal complaint issued out of the Northern District of Georgia. At the time of his arrest, Simeu was traveling from Casablanca, Morocco, to Paris, France, on a fraudulently issued airline ticket in the name of his alias, Martell Collins, utilizing a fraudulent United Kingdom passport under the same name. A federal grand jury in the Northern District of Georgia returned an indictment against Simeu on September 23, 2014, and Simeu was extradited from France on May 19, 2016. Simeu had been in French custody since his arrest in September 2014, pending completion of extradition proceedings.
Simeu pled guilty to conspiracy to commit wire fraud on December 13, 2016. On May 25, 2017, U.S. District Court Judge William S. Duffey, Jr., sentenced Simeu to four years, ten months in prison, and ordered him to pay $162,146 in restitution to Travelport.
This case was investigated by the Federal Bureau of Investigation and U.S. Department of State’s Diplomatic Security Service.
Assistant U.S. Attorney Steven D. Grimberg and Trial Attorney Peter Roman with the U.S. Department of Justice Computer Crime and Intellectual Property Section prosecuted the case. The Justice Department’s Office of International Affairs provided valuable assistance.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Virginia man convicted of traveling across state lines to have sex with a minorRead the Press Release
MARTINSBURG, WEST VIRGINIA – Johnnie William Bateman, III, of Culpepper, Virginia, was convicted today of traveling across state lines to meet a minor for sex, Acting United States Attorney Betsy Steinfeld Jividen announced.
Bateman, age 39, pled guilty to one count of “Travel with Intent to Engage in Illicit Sexual Conduct.” Bateman admitted to traveling from Virginia to Berkeley County, West Virginia in August 2016 to engage in illicit sexual conduct with a person he believed to be a 15-year-old girl.
Bateman faces up to thirty years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Anna Z. Krasinski is prosecuting the case on behalf of the government. The West Virginia State Police investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Two Who Targeted U.S. Marines Sentenced for Conspiracy, Wire Fraud, and Aggravated Identity TheftRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, John Stuart Bruce, announced that today, Senior District Court Judge W. Earl Britt sentenced JONES TYLER MARTIN, of Hampton, South Carolina, and HAILEY TYKOSKI, of Wayne, Michigan, for their convictions in a fraudulent scheme that seriously impacted the United States Marine Corps and numerous victim Marines from North Carolina to California. MARTIN was sentenced to 57 months imprisonment, 5 years supervised release, and was ordered to pay $117,306.42 in restitution, and TYKOSKI was sentenced to 5 years probation and was ordered to pay $42,289.05 in restitution.
In September 2016, a federal grand jury in Wilmington, North Carolina, returned a five-count indictment charging MARTIN and TYKOSKI with conspiring to commit wire fraud, wire fraud, aggravated identity theft, and aiding and abetting. On January 30, 2017, MARTIN pled guilty to conspiracy to commit wire fraud and aggravated identity theft. On March 27, 2017 TYKOSKI pled guilty to conspiracy to commit wire fraud.
John Stuart Bruce, United States Attorney for the Eastern District of North Carolina, stated: “The U.S. Department of Justice and the U.S. Attorney’s Office in this district treat cases such as this one with high priority. There will continue to be vigorous prosecution of those who commit fraud and cybercrimes targeting members of the armed services and veterans.”
H. Andrew Goodridge, Special Agent in Charge, Naval Criminal Investigative Service, stated: “This case reminds all of us to remain vigilant about what information we provide to strangers, it also demonstrates that NCIS is committed to pursuing those who exploit US service members."
The investigation revealed that between 2013 and 2015, MARTIN, working with accomplices including TYKOSKI, created fake female identities on internet dating websites for the purpose of targeting and luring young enlisted Marines into virtual relationships. In the course of the fraud scheme, the defendants sent text messages and emails to Marines who were deceived into believing they were in online romantic relationships. The conspirators induced the victims to take out personal loans from Navy Federal Credit Union. Using the victims’ personal identification, MARTIN then initiated wire transfers of the loan proceeds into other accounts. MARTIN also withdrew funds using new lines of credit and accounts in the victims’ names, leaving the victim Marines to pay off the debts.
Investigation of this case was conducted by the Naval Criminal Investigative Service, Field Office Carolinas, Camp Lejeune, North Carolina. Special Assistant United States Attorney Mark Griffith prosecuted the case for the government.
Two Bloods Gang Member Brothers Sentenced in Manhattan Federal Court, One for Committing A 2005 MurderRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that brothers BURNELL SCOTT, a/k/a “B.U.,” and BURCHANTI SCOTT, a/k/a “Napp,” were sentenced in Manhattan federal court today. BURCHANTI SCOTT was sentenced to 11 years in prison for distributing heroin, while BURNELL SCOTT was sentenced to 25 years in prison in connection with the 2005 drug-related murder of Kason Pinnick, a/k/a “Marijuana” (“Pinnick”) in Paterson, New Jersey. U.S. District Judge Laura Taylor Swain imposed both sentences.
Acting U.S. Attorney Joon H. Kim said: “As they admitted in their guilty pleas, Burnell and Burchanti Scott, brothers and longtime members of the Bloods street gang, distributed heroin and used violence to protect their drug distribution territory. Burnell Scott in fact shot and killed Kason Pinnick over a territorial dispute in Paterson, New Jersey. Today, each brother was sentenced to the lengthy prison term their crimes merit.”
BURCHANTI SCOTT previously pled guilty to participating in a conspiracy to distribute and possess with the intent to distribute more than 100 grams of heroin.
BURNELL SCOTT previously pled guilty to participating in a conspiracy to distribute and possess with the intent to distribute more than one kilogram of heroin.
According to the indictments and the felony information previously filed in Manhattan federal court, and public information:
BURNELL SCOTT, a long-time member of the G-Shine set of the Bloods street gang, was arrested on October 30, 2013, in Paterson, New Jersey. On February 24, 2016, SCOTT pled guilty to participating in a conspiracy to distribute and possess with the intent to distribute more than one kilogram of heroin, from 2005 through 2014. SCOTT admitted that, as part of the charged narcotics distribution offense, he and his co-conspirators were engaged in an ongoing dispute concerning, inter alia, drug distribution territory in Paterson. In connection with that ongoing dispute, on or about September 28, 2005, SCOTT encountered Pinnick in the vicinity of Twelfth Avenue and East 23rd Street, in Paterson. SCOTT pulled out a firearm, and discharged multiple rounds at Pinnick at point-blank range, striking Pinnick in the head, and killing him.
BURCHANTI SCOTT, the brother of BURNELL SCOTT and a high-ranking member of the Fruit Town Brims set of the Bloods street gang, who used violence or the threat of violence to protect his drug distribution territory, was writted into federal custody on March 18, 2014, from the New Jersey Department of Corrections, where he was incarcerated. On August 17, 2016, BURCHANTI SCOTT pled guilty to participating in a conspiracy to distribute and possess with the intent to distribute more than 100 grams of heroin, from 2012 through 2014.
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Mr. Kim praised the outstanding investigative work of the Federal Bureau of Investigation (“FBI”) Safe Streets Task Force, Newark Division, the Paterson Police Department, the Passaic County Prosecutor’s Office, the Clifton Police Department, and the New Jersey State Police.
The Office’s Violent and Organized Crime Unit is overseeing the case. Assistant U.S. Attorney Justina L. Geraci is in charge of the prosecution.
Two Arrested for Transporting Nearly Seven Kilos of Cocaine on Commercial FlightRead the Press Release
BOSTON – Two men were arrested for allegedly trafficking nearly seven kilos of cocaine that were sent from the Dominican Republic to Boston on a commercial airline.
Juan Luis Perez Garcia, 44, a Dominican national residing in Bronx, N.Y., and Juan Artiles Taveras, 43, of Lakewood, N.J., were arrested Friday, June 2, 2017, in Attleboro, Mass., and charged with possession with intent to distribute cocaine.
According to court documents, a cooperating witness (CW) worked with investigators to identify members of a narcotics organization based in the Dominican Republic. At a meeting in the Dominican Republic in June 2015, the CW and an undercover officer learned that one of the members of the narcotics organization had contacts who could put drugs on JetBlue flights destined for the United States, but who needed assistance in Boston taking the drugs off the plane. The CW responded that he worked at the airport in Boston and could get the drugs off the aircraft without having them discovered. In July 2015, another member of the drug organization told the CW that he had the ability to smuggle contraband into the United States from the Dominican Republic via JetBlue commercial flights.
It is alleged that in February 2016, the CW spoke with Perez Garcia about arranging for cocaine to be put on a plane in the Dominican Republic for delivery to the CW in Boston. On June 2, 2017, arrangements were allegedly made for a suitcase containing cocaine to arrive on a JetBlue flight from the Dominican Republic to Boston. When the flight arrived in Boston, federal agents intercepted the suitcase and field-tested its contents which yielded a positive result for cocaine and weighed nearly seven kilos. On the evening of June 2, 2017, Perez Garcia and Artiles Taveras met the CW and undercover officer at a parking lot in Attleboro, Mass., to exchange money for the drugs. Federal agents placed the two men under arrest.
The charging statute for possession with intent to distribute five kilograms or more of cocaine provides for a mandatory minimum sentence of 10 years and up to a lifetime in prison, up to five years of supervised release and a fine of $10 million. 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; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Office made the announcement today. Assistance was provided by Customs and Border Protection and the Attleboro Police Department. Assistant U.S. Attorney David G. Tobin of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Taos County Man Pleads Guilty to Oxycodone Trafficking ChargeRead the Press Release
ALBUQUERQUE – Joseph Cordova, 30, of Chamisal, N.M., pled guilty today in federal court in Albuquerque, N.M., to an Oxycodone trafficking charge. The plea agreement recommends that Cordova be sentenced to a 48-month prison sentence followed by a term of supervised release to be determined by the court.
Cordova was arrested on Sept. 30, 2016, on an indictment charging him with possessing Oxycodone, heroin, cocaine and methadone with intent to distribute. The indictment alleged that Cordova committed the crimes on June 5, 2016, in Taos County, N.M.
During today’s proceedings, Cordova pled guilty to Count 1 of the indictment charging him with possessing Oxycodone with intent to distribute. In entering the guilty plea, Cordova admitted that on June 5, 2016, officers of the New Mexico State Police found more than 1,000 Oxycodone pills while searching Cordova’s vehicle. Cordova admitted that he intended to distribute the pills to others. A sentencing hearing has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and the New Mexico State Police. Assistant U.S. Attorney Peter J. Eicker is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Suburban Fugitive Sentenced in Absentia to More than 20 Years in Federal PrisonRead the Press Release
HOUSTON – A 53-year-old Houston-area contractor has been sentenced in absentia for his role in a $16 million loan fraud scheme, announced Acting U.S. Attorney Abe Martinez.
Oscar Cantalicio Ortiz, who had resided in Kingwood prior to becoming a fugitive in this case, pleaded guilty June 30, 2016, to conspiring to commit bank, mail and wire fraud. He was set for set for sentencing April 24, 2017, but failed to appear for that hearing.
Today, U.S. District Judge Kenneth Hoyt sentenced Ortiz in absentia to a 262-month-term of federal imprisonment. He was further ordered to pay $5,462,800 in restitution. At the hearing today, court heard testimony that Ortiz was aware of the previous hearing and that he had cut off his ankle monitor and left it on the side of the road.
He is considered a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact the FBI at 713-693-5000.
His codefendant – Houston realtor Seung Min Santillan, aka Suzy, 57, also of Houston – pleaded guilty to the conspiracy and making false statements on a loan application in September 2016. She was previously sentenced to 168 months in federal prison and ordered to pay $5,299,500 in restitution.
Ortiz and Santillan operated a mortgage fraud scheme in which they recruited straw borrowers to purchase residential properties in the Houston area. Loans were obtained from lending institutions to purchase these properties in the names and using the credit of the straw borrowers. The lenders were provided materially false information to induce them to fund these residential loans, including fraudulent appraisal reports. The loans were funded and ultimately fell into default when all the mortgage payments were not made as promised.
Ortiz and Santillan utilized several business entities during the execution of the scheme to defraud including Uptown Builders LLC, Americorp Builders LLC, Luxury Quality Homes LLC and Santi Investments. In recruiting straw borrowers during the scheme, the borrowers were told the residential property would be in their name for a short period while Ortiz made modifications to the property prior to reselling the house. Ortiz and Santillan promised the straw borrowers that they would handle all the costs associated with purchasing and holding these properties.
Once the loans to purchase the residence funded, one or more of the business entities Ortiz utilized would receive a large portion of the loan proceeds. This occurred even when the same property was purchased for the second time in the name of a new straw borrower. The defendants were able to take a large portion of the loan proceeds since the value of the residence was inflated with fraudulent appraisal reports.
The FBI conducted the investigation. Assistant U.S. Attorney Melissa Annis is prosecuting the case.
Statement on Filing of Federal Carjacking, Kidnapping Charges Against Harrison in UTA CaseRead the Press Release
SALT LAKE CITY -- An Information charging Dereck James Harrison with one count of carjacking and one count of kidnapping was filed late Friday afternoon in U.S. District Court in Salt Lake City.
Count 1 of the indictment alleges Harrison took by force, violence and intimidation, and with intent to cause death or serious bodily harm, a 2013 Ford F150 pickup from a person identified as K.P.R. in the Information. The Information further alleges the May 12, 2016, carjacking resulted in the death of K.P.R.
Count 2 charges Harrison with the May 12, 2016, kidnapping of K.P.R. The indictment alleges Harrison took the victim from Utah to Wyoming and, according to the Information, the kidnapping resulted in the death of K.P.R.
The potential sentence for the charges in the Information is mandatory life in prison. An Information is not a finding of guilt. Individuals charged in an Information are presumed innocent unless proven guilty in court.
The District of Utah has concurrent jurisdiction in this case with Salt Lake County, Utah, and Lincoln County, Wyoming. Although Harrison is being prosecuted in Lincoln County, federal prosecutors believe Utah’s interests in the case have yet to be vindicated.
The victim was a resident of Utah. The crimes alleged in the Information filed Friday occurred in Salt Lake County, Utah. In consultation with the Salt Lake District Attorney’s Office, a decision was made to represent Salt Lake County and the District of Utah’s interests by proceeding with a federal prosecution of Harrison. The FBI and the U.S. Marshals Service have been actively involved in the investigation of this case since the alleged crimes occurred.
Schuele Boys Associate 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 Andre Jackson, 29, of Buffalo, who was convicted of conspiracy to distribute cocaine, was sentenced to time served by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that between June 2013 and July 2014, Jackson conspired with other Schuele Boys associates and gang members, including Michael Robertson, to distribute cocaine in the City of Buffalo.
The Schuele Boys refers to a gang that operated in the Schuele Street area of the East Side of Buffalo and is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine, and marijuana.
Jackson is one of 28 individuals arrested as part of the Schuele Boys investigation. To date, 23 of those 28 defendants have been convicted. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Today’s sentencing is the culmination of an investigation on the part of the FBI's Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen.
Schenectady Man Sentenced to 87 Months for Child Pornography OffensesRead the Press Release
ALBANY, NEW YORK - Jeffrey Butler, age 33, of Schenectady, New York, was sentenced today to serve 87 months in prison for receiving and possessing child pornography.
The announcement was made by United States Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
United States District Judge Mae A. D’Agostino also sentenced Butler to 15 years of supervised release, to begin following his release from prison.
As part of his February 6, 2017 guilty plea, Butler admitted that he used the Internet and a peer-to-peer file sharing program to download child pornography. In his home, Butler possessed electronic devices that contained videos and still images depicting the sexual exploitation of children.
At sentencing today, Judge D’Agostino told Butler: “Many, many people continue to believe that viewing child pornography is a victimless crime. But it is important, I think, for the record to establish that what you were viewing, Mr. Butler, was horrendous crimes being committed against children who are real children. They're not fake, they're not three-dimensional caricatures, and it's not victimless. Because every time you view child pornography, you are prolonging and perpetuating the agony that these real children sustained when they were being tortured and raped as depicted in many of the images and films that you viewed.”
This case was investigated by HSI and prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Sacramento Woman Sentenced for Making Counterfeit CurrencyRead the Press Release
RENO, Nev. – A California woman was sentenced today by U.S. District Judge Miranda M. Du to 15 months in prison for making counterfeit $100 bills, then spending the counterfeit money at businesses in Northern Nevada, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Yvonne Geneal Flores, 38, of Sacramento, Calif., pleaded guilty on Feb. 15, 2017, to one count of making counterfeit currency. Co-defendant Thomas Michael Morla, 42, pleaded guilty to making counterfeit currency and was sentenced on Oct. 31, 2016, to serve 18 months in prison.
According to the plea agreement, from Oct. 7, 2015 to May 5, 2016, Flores and Morla manufactured counterfeit $100 bills and spent the counterfeit money at various businesses in Reno, Sparks, and Carson City. In May 2016, law enforcement arrested Flores and Morla for possession of an embezzled rental car in Carson City. At the time of Morla’s arrest, he was in possession of counterfeit money. During the execution of a search warrant of Morla and Flores’ hotel room, law enforcement found equipment and supplies used to manufacture the counterfeit currency. Law enforcement collected approximately $50,000 in counterfeit $100 bills from businesses that can be attributed to Flores and Morla based on the similarities of the fraudulent notes.
The case was investigated by the U.S. Secret Service and the Carson City Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Brian L. Sullivan.
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Sachse Man Sentenced to 96 Months in Federal Prison on Child Pornography OffenseRead the Press Release
DALLAS — Mark Reice Anderson, 62, of Sachse, Texas, was sentenced last week by Chief U.S. District Judge Barbara M.G. Lynn to 96 months in federal prison, following his guilty plea in November 2016 to one count of transportation and shipping child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, on October 16, 2015, law enforcement executed a search warrant at the residence of Anderson on Maple Shade Ave., Sachse, Texas. An unusually large number of computers and other digital media were found and seized. A search of the computers and other digital media revealed multiple files depicting child pornography, including over 19,000 images of child pornography and 1,000 videos of child pornography.
The 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 U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Shane Read was in charge of the prosecution.
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Rome Man Sentenced for Possession of Ammunition by a Convicted Felon in Connection with Drive-by Shooting in SyracuseRead the Press Release
NEW YORK – Alfred Laquann “Merc” Thomas, 32, of Rome, New York, was sentenced today to serve 115 months in prison for his possession of ammunition as a convicted felon in connection with an August 2012 drive by-shooting in Syracuse, New York, announced United States Attorney Richard S. Hartunian and Special Agent in Charge Vadim D. Thomas, FBI Albany Division of the Federal Bureau of Investigation (FBI). The defendant was also sentenced to serve three years of supervised release following his term of imprisonment.
After being acquitted on an unrelated September 2014 murder in Syracuse, Thomas admitted on Facebook that he had actually committed that murder. He repeated those admissions to federal agents. In sentencing the defendant today, United States District Judge Brenda Sannes noted Alfred Thomas’ long criminal record of offenses involving the use of violence including his admissions about that murder.
"The lengthy sentence reflects Thomas’s long record of violent crime including his admissions that he had killed someone after being acquitted in a state homicide prosecution. This successful prosecution is the result of outstanding collaboration and dogged persistence to bring him to justice by Assistant U.S. Attorney Richard Southwick, FBI, ATF, and Syracuse Police with assistance from the Onondaga County District Attorney’s Office,” said United States Attorney Richard S. Hartunian.
“People like Mr. Thomas terrorize and destroy our communities through violence,” Special Agent in Charge Vadim D. Thomas. “Today’s sentencing is the result of countless hours of hard work and dedication, and the FBI, together with our law enforcement partners, will continue to investigate individuals who jeopardize the safety of our communities through gun violence.”
December 23, 2016, Alfred Thomas pled guilty in Federal Court to being a convicted felon in possession of two 12-gauge shotgun shells. Thomas possessed the shells in his pants pocket after an August 16, 2012 drive-by shooting at 115 West Bissell Street, Syracuse. Several people, including an infant, were in the house at the time. Two expended 12-gauge shotgun shells were found in the rear seat of the car he had been driving, and the same caliber ammunition was used during the shooting. In addition, 911 callers identified Thomas and his car when they called to report the shooting. After learning about the defendant’s Facebook admissions, FBI and ATF Agents in Syracuse revisited the 2012 West Bissell Street drive-by shooting in light of federal law violations, which led to the current case in United States District Court.
This case was investigated by The Federal Bureau of Investigation (FBI), The United States Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Syracuse Police Department, and was prosecuted by Assistant U.S. Attorney Richard R. Southwick with assistance from the Onondaga County District Attorney’s Office.
Rhode Island Man Admits to Traveling to Connecticut to Engage in Sex with MinorRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that NICHOLAS MURPHY, 27, of Exeter, R.I., pleaded guilty today in Hartford federal court to one count of traveling to engage in illegal sexual activity with a minor.
Accord to court documents and statements made in court, MURPHY communicated with a minor victim through online platforms including Facebook. The victim told MURPHY that she was 16 years old when, in fact, she was younger than 16, but older than 13. In May and June 2015, MURPHY travelled from Rhode Island to Connecticut to meet the victim. On at least one occasion during this time, MURPHY engaged in illicit sexual conduct with the minor victim in his truck.
On the evening of September 16, 2015, after communicating on Facebook, MURPHY drove from Rhode Island to Connecticut to meet the victim. MURPHY knew that the victim was sneaking out of her home without her parents’ knowledge to meet him. MURPHY picked up the victim in his truck and then drove to a secluded area where he and the victim engaged in illicit sexual conduct.
MURPHY is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on September 13, 2017, at which time he faces a maximum term of imprisonment of 30 years.
MURPHY was arrested on related state charges on May 9, 2016. He is released on a $150,000 bond.
This matter has been investigated by the Federal Bureau of Investigation, Plainfield Police Department, Rhode Island State Police and the U.S. Air Force’s Office of Special Investigations. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Physical Therapist Sentenced for Obstruction and Tax Fraud OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DANIELLE FAUX, 49, of Weston, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to two years of probation, the first six months of which FAUX must spend in home confinement, for obstruction and tax fraud offenses. Judge Underhill also ordered FAUX to perform 100 hours of community service and pay a $3,000 fine.
According to court documents and statements made in court, FAUX owned and operated Danielle Faux PT, LLC, a physical therapy clinic located at 27 Lois Street in Norwalk. In August 2009, a contractor for the Medicare program conducting an audit of FAUX’s physical therapy practice contacted FAUX and requested records of 40 claims for physical therapy that FAUX had submitted to Medicare. The requested records included appropriate documentation to support the services billed, including the physical therapy progress notes, physical therapy flow sheet/activity sheets, and any additional documentation verifying medical necessity for the physical therapy procedures. Because no patient progress notes or similar records existed that would support many of the Medicare claims, FAUX instructed a physical therapist working for her to create detailed notes in the patient files that were requested in the audit, and FAUX similarly created such records.
In addition, from 2008 through 2011, FAUX skimmed checks and cash proceeds from her physical therapy practice and did not declare the skimmed proceeds on her federal income tax returns. Through this conduct, FAUX avoided paying $77,640 in taxes over the four-year period.
Judge Underhill ordered FAUX to pay full restitution to the Internal Revenue Service.
On September 22, 2016, FAUX pleaded guilty to one count of obstruction of a federal audit, and one count of making false statement on a federal income tax return.
In a related civil matter, FAUX agreed to pay $50,000 to settle allegations that she and her practice submitted false records to the Medicare program in violation of the False Claims Act.
This investigation was conducted by the Federal Bureau of Investigation, U.S. Department of Health and Human Services – Office of the Inspector General, and Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorneys David J. Sheldon and Richard M. Molot.
Pennsylvania Man Sentenced on Carjacking and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Michael Gonzalez-Colon, 21, of Erie, Pennsylvania, who was convicted of carjacking and brandishing a firearm in furtherance of a crime of violence, was sentenced to 144 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Michael P. Felicetta, who handled the case, stated on July 20, 2015, the defendant traveled with co-defendants Dimas Colon-Cruz and Denis Cruz, from Erie, Pennsylvania to Dunkirk, NY, on stolen all-terrain vehicles. Shortly after arriving in Dunkirk, the ATV's were seized by the Dunkirk Police Department leaving the defendants without transportation.
Subsequently, the defendant and his codefendants assaulted an individual (Victim 1) in the vicinity of Robin and Second Streets in Dunkirk. The trio brandished firearms during the assault, struck Victim 1 in the face and stole several items from Victim 1. Almost immediately after Victim 1 was assaulted, a second victim (Victim 2) was assaulted by the defendant and his codefendants in the vicinity of 209 Robin Street. After exiting a car, Victim 2 was approached by the defendant and his codefendants and ordered to kneel on the ground at which time the victim was struck in the head with a handgun. Following the assault, the defendant and his codefendants stole Victim 2’s car, a 2004 Pontiac Grand Am. Also on July 20, 2015, Lakeside Lawncare in Fredonia, NY, was burglarized and several items were stolen including a gray 2002 GMC Sierra pickup truck. On July 22, 2015, both the 2004 Pontiac Grand Am and the 2002 GMC Sierra pickup truck were recovered in Erie, Pennsylvania.
Charges are pending against Dimas Colon-Cruz and Denis Cruz. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Today’s sentencing is the result of an investigation by the Dunkirk Police Department, under the direction of Chief David Ortolano, the Erie, Pennsylvania Police Department, under the direction of Chief Randy Bowers, the New York State Police, under the direction of Major Steven Nigrelli, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Owner of Nationwide Tax Return Preparation Franchisor Convicted of Conspiracy, Evading Employment Taxes and Other Tax-Related CrimesRead the Press Release
An Ohio resident was convicted Friday by a federal jury sitting in Cincinnati, Ohio of conspiracy to commit wire fraud, wire fraud, bank fraud, evasion of employment taxes and failure to pay over employment taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the evidence presented at trial, Fesum Ogbazion, 44, was the owner and CEO of ITS Financial LLC, which was the national franchisor of Instant Tax Service (ITS), a tax preparation business. Ogbazion founded ITS in 2004 and at one time it had more than 1,100 franchise locations throughout the United States.
From approximately January 2009 through 2012, Ogbazion conspired with others at ITS to generate loan and tax return preparation fees for ITS and its franchises by luring taxpayers into ITS franchises through a fraudulent nationwide advertising campaign. The ITS ads offered tax refund anticipation loans through an independent third party lender, despite the fact that ITS did not have such a lender to fund the promised loans. The evidence introduced at trial established that Ogbazion used the false advertising campaigns to entice customers into coming to ITS locations for a loan and then used their loan applications to prepare and file income tax returns – often without customers’ authorization. ITS charged its customers between $500 to $800 in tax preparation fees. Between 2006 and 2011, ITS collected more than $70 million in fees.
Ogbazion also failed to pay approximately $1.3 million in payroll taxes due from ITS and another business during four tax quarters in 2009 and 2010. Ogbazion evaded the Internal Revenue Service’s (IRS) attempts to collect the unpaid taxes by directing business revenue to nominee accounts, placing assets in the names of nominee entities and making false statements to an IRS revenue officer during the course of collection activity.
In 2013, ITS and Ogbazion were permanently barred from operating or being involved with any work or business relating to the preparation of tax returns.
Sentencing will be set at a later date. Ogbazion faces a statutory maximum sentence of 20 years in prison on the conspiracy count, 20 years in prison for the wire fraud counts, 30 years in prison for bank fraud, five years in prison for tax evasion and five years in prison for failure to pay over employment taxes. He also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Senior Litigation Counsel Corey Smith, Trial Attorney Mark McDonald and Paralegal Specialist Tiffany Thompson of the Tax Division, and Paralegal Specialist Laura Strubbe of the U.S. Attorney’s Office for the Southern District of Ohio, who prosecuted the case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office for the Southern District of Ohio for their assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Olathe Man Pleads Guilty in $8 Million Investment ScamRead the Press Release
KANSAS CITY, KAN. - An Olathe man pleaded guilty Monday to stealing more than $8 million from a Turkish investor, U.S. Attorney Tom Beall said.
Nagy Shehata, 57, Olathe, Kan., pleaded guilty to one count of conspiracy to commit wire fraud. In his plea, he admitted the crime occurred while he was president of Premier Investment Group, a corporation registered in Missouri. During that time, Shehata formed a joint partnership with co-defendant Laura Lee Sorsby, a Texas resident who conducted business through a company called Can Am International.
The victim was a Turkish resident who was the founder of a hospital in Istanbul, Turkey. The defendants offered the victim the opportunity to invest in a project that started out as a plan to build a hospital in Syria and evolved into a plan to build a shopping mall in Iraq. Based on the defendants’ false statements, the victim transferred money to Shehata’s bank in New York. Shehata wired the money from New York to his bank accounts in Kansas.
The defendants did not use the money for the hospital or shopping mall projects. Instead, Shehata bought an $111,000 car and an $855,000 house.
Sentencing will be set for a later time. Shehata faces up to 20 years in federal prison and restitution of more than $8.2 million. Beall commended The FBI and Assistant U.S. Attorney Chris Oakley for their work on the case.
North Texas Contractor and Executive Agree to Pay United States $2.475 Million to Resolve False Claims Act and Anti-kickback Act AllegationsRead the Press Release
North Texas Contractor and Executive Agree to Pay United States $2.475 Million to Resolve False Claims Act and Anti-kickback Act Allegations
Mansfield, Texas-based Integrated Medical Solutions Inc. (IMS), along with the company’s former President Jerry Heftler, have agreed to pay the United States $2.475 million to settle allegations that they violated the False Claims Act and Anti-Kickback Act in connection with federal contracts IMS obtained from the U.S. Bureau of Prisons (BOP), the Justice Department announced today.
“This settlement demonstrates that the Department of Justice is committed to protecting the integrity of the federal contracting process from unscrupulous contractors,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “When government contractors maintain improper financial arrangements with government officials, it has a corrupting influence on contracts funded by taxpayer dollars.”
“Our office will continue to aggressively investigate federal contracting abuse and will use all available tools to hold accountable those who try to gain an advantage in contracting through improper means,” said U.S. Attorney John R. Parker for the Northern District of Texas.
“Our office is committed to uncovering corruption in the contracting process, particularly when it involves an abuse of trust by the Department of Justice’s own employees,” said Special Agent in Charge Monte A. Cason of the Department of Justice Office of the Inspector General. “It is imperative that we protect taxpayer funds by ferreting out such abuse.”
The settlement announced today resolves allegations that IMS engaged Cary Hudson, who was then employed by BOP as a business administrator, to serve as a paid consultant to assist IMS in obtaining contracts with BOP to serve as a third-party administrator responsible for developing managed healthcare networks that provide medical care to federal inmates. Specifically, the Government alleged that IMS paid Hudson in order to obtain favorable treatment during the contracting process, which included Hudson’s provision of certain confidential, non-public information that gave IMS an unfair competitive advantage in the bidding process. After IMS obtained the contracts with BOP, the Government alleged that Hudson thereafter improperly assisted IMS in its performance of the contracts while simultaneously serving as a BOP financial administrator.In October 2014, Hudson pleaded guilty to a felony violation of submitting a false document to an agency of the United States in which he failed to disclose payments he received from IMS as part of his annual obligation as a federal government employee to report any potential conflicts of interests.
This matter was handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Northern District of Texas, with assistance from the Department of Justice Office of the Inspector General.
Except to the extent of the admissions in Hudson’s guilty plea, the claims resolved by the civil settlement are allegations only, and there has been no determination of liability.
North Texas Contractor and Executive Agree to Pay United States $2.475 Million to Resolve False Claims Act and Anti-Kickback Act AllegationsRead the Press Release
WASHINGTON – Mansfield, Texas-based Integrated Medical Solutions Inc. (IMS), along with the company’s former President Jerry Heftler, have agreed to pay the United States $2.475 million to settle allegations that they violated the False Claims Act and Anti-Kickback Act in connection with federal contracts IMS obtained from the U.S. Bureau of Prisons (BOP), the Justice Department announced today.
“This settlement demonstrates that the Department of Justice is committed to protecting the integrity of the federal contracting process from unscrupulous contractors,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “When government contractors maintain improper financial arrangements with government officials, it has a corrupting influence on contracts funded by taxpayer dollars.”
“Our office will continue to aggressively investigate federal contracting abuse and will use all available tools to hold accountable those who try to gain an advantage in contracting through improper means,” said U.S. Attorney John R. Parker for the Northern District of Texas.
“Our office is committed to uncovering corruption in the contracting process, particularly when it involves an abuse of trust by the Department of Justice’s own employees,” said Special Agent in Charge Monte A. Cason of the Department of Justice Office of the Inspector General. “It is imperative that we protect taxpayer funds by ferreting out such abuse.”
The settlement announced today resolves allegations that IMS engaged Cary Hudson, who was then employed by BOP as a business administrator, to serve as a paid consultant to assist IMS in obtaining contracts with BOP to serve as a third-party administrator responsible for developing managed healthcare networks that provide medical care to federal inmates. Specifically, the Government alleged that IMS paid Hudson in order to obtain favorable treatment during the contracting process, which included Hudson’s provision of certain confidential, non-public information that gave IMS an unfair competitive advantage in the bidding process. After IMS obtained the contracts with BOP, the Government alleged that Hudson thereafter improperly assisted IMS in its performance of the contracts while simultaneously serving as a BOP financial administrator.
In October 2014, Hudson pleaded guilty to a felony violation of submitting a false document to an agency of the United States in which he failed to disclose payments he received from IMS as part of his annual obligation as a federal government employee to report any potential conflicts of interests.
This matter was handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Northern District of Texas, with assistance from the Department of Justice Office of the Inspector General.
Except to the extent of the admissions in Hudson’s guilty plea, the claims resolved by the civil settlement are allegations only, and there has been no determination of liability.
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Nigerian Citizen Sentenced for International Money LaunderingRead the Press Release
ALBANY, NEW YORK – Uyiosa Eribo, age 42, and a citizen of Nigeria, was sentenced today to 10 months in jail for using a foreign bank account to accept money from fraud victims in the United States.
The announcement was made by United States Attorney Richard S. Hartunian and James D. Robnett, Special Agent in Charge of the New York Field Office of IRS-Criminal Investigation.
United States District Judge Mae A. D’Agostino also ordered Eribo to pay $11,000 in restitution to his victims, and to pay a $3,000 fine.
Eribo pled guilty to international money laundering charges on February 1, 2017. He admitted that in 2014, he opened and maintained a bank account in the United Kingdom. He used this account to receive wire transfers from people in the United States knowing that the money he received was proceeds of Internet-based frauds targeting United States residents. Eribo’s conspirators, who were based in Nigeria and elsewhere, had the actual contact with the victims and directed that the victims send money to Eribo.
Among other things, Eribo received proceeds from a stolen identity federal income tax refund fraud, in which a New York married couple’s names, social security numbers and financial information were used without their authorization to file a fraudulent federal tax return and obtain a $482,000 tax refund from the United States Treasury Department. Eribo’s account received part of this tax refund.
This case was investigated by the New York Field Office of IRS-Criminal Investigation and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Nashville Man Responsible for J.C. Napier Violence Pleads Guilty to Multiple Charges and Faces 35-Year Prison SentenceRead the Press Release
Calvin Starks, 23, of Nashville, Tenn., pleaded guilty yesterday in U.S. District Court, to a series of federal crimes including using a firearm to commit a crime of violence resulting in death; conspiracy to commit Hobbs Act robbery and extortion; and conspiracy to tamper with a witness, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
According to charging documents and the plea agreement, Starks and his cousin, Darryl Starks, were responsible for shooting Joshua Woods on October 16, 2014, in the J.C. Napier neighborhood. They fired a total of 16 rounds during the assault and Woods was treated at a local hospital and survived the gunshots. After Woods had identified the Starks’ as the shooters, he was later threatened and bribed by Darryl Stark’s mother, Ivy Starks, in an attempt to prevent him from testifying truthfully in subsequent court proceedings.
On November 26, 2014, Starks and Terrance Kimbrough planned and carried out a robbery of Brendon Leggs, aka “Beazy.” They approached him at a market on Lewis St., near the J.C. Napier neighborhood and attempted to rob Leggs of drugs and money. As Leggs attempted to drive away, they opened fire on him and Leggs died from gunshot wounds shortly thereafter. The 9mm bullet casings recovered from this shooting matched casings from an incident on November 23, 2014, where a car occupied by 3 people was shot at. Starks was also involved in that shooting.
In the days following the Leggs shooting, Starks and Kimbrough searched for an individual named Monte Watson, whom they believed saw them kill Leggs and feared he would report that to law enforcement. On December 1, 2014, Starks was arrested for cocaine possession and during a subsequent recorded jail phone call, Starks made statements about Watson being a “snitch” and discussed their attempt to find him and silence him. On December 3, 2014, Monte Watson was shot and killed near Lewis and Robertson St., in close proximity to the J.C. Napier housing development. Terrance Kimbrough is currently charged with the murder of Monte Watson as well as attempted robbery and killing of Brandon Leggs.
Ivy Starks and Darryl Starks have previously pleaded guilty to charges related to this case and are awaiting sentencing. Terrance Kimbrough is awaiting trial. He is presumed innocent unless and until proven guilty in a court of law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Metropolitan Nashville Police Department. Assistant U.S. Attorney Sunny A.M. Koshy is prosecuting the case.
Mississippi Corrections Officers Sentenced for Inmate Assault and Cover-UpRead the Press Release
Mississippi correctional officers Romander Nelson and Deonte Pate were sentenced today for their roles in the beating of an inmate and subsequent cover-up at the state’s Parchman Prison, the Justice Department announced today.
Deonte Pate, 24, was sentenced to 5 years of probation with 12 weeks of weekend confinement for conspiring to cover up the beating of an inmate identified by his initials, K.H. Pate acknowledged that he submitted false reports and lied to the FBI in order to prevent knowledge of the beating from reaching outside authorities. Romander Nelson, 44, was sentenced to 5 years of probation, 14 weeks of weekend confinement, and a $500 fine for failing to protect the victim during the beating.
The victim, was temporarily blinded by the attack and suffered severe blood loss, a broken orbital bone, and permanent partial vision loss.
Pate and Nelson were charged in 2016 along with two other officers: Lawardrick Marsher, 28, and Robert Sturdivant, 47. All four were officers at Mississippi State Penitentiary, in Parchman, Mississippi.
Marsher has pleaded guilty to carrying out the assault; Sturdivant, a supervisor, has pleaded guilty to conspiring to cover the assault up. Marsher and Sturdivant are scheduled to be sentenced on June 15 for their roles in the crime.
“Every corrections officer owes a duty of honesty and integrity to the individuals under his or her protection,” said Acting Assistant Attorney General Tom Wheeler. “The Department of Justice is committed to ensuring the rights of all citizens, including those in our nation’s jails and prisons.”
"The FBI's mission is to protect the American people and uphold the constitution of the United States," said Christopher Freeze, Special Agent in Charge of the FBI in Mississippi. "This protection extends to those serving time for various offenses in jails and prisons throughout the United States. The constitution provides no protection to those hiding behind a correctional officer uniform and abusing the authority given to them. The FBI will continue to aggressively investigate any allegations of civil rights violations."
This case was investigated by the FBI’s Jackson Division, with the cooperation of the Mississippi Department of Corrections. It was prosecuted by Assistant U.S. Attorney Robert Coleman of the Northern District of Mississippi and Trial Attorney Dana Mulhauser of the Civil Rights Division’s Criminal Section.
Methamphetamine Trafficker Sentenced to 120 Months ConfinementRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announces that United States District Court Chief Judge Kristi K. DuBose sentenced Jay Kimberly Ponder on June 2, 2017 to serve a term of imprisonment of 120 months followed by 5 years of supervised release for the conspiracy to distribute methamphetamine in violation of 21 USC § 846(a)(1). Both federal and local authorities began their initial investigation of the case in 2015 and discovered that the defendant was distributing methamphetamine throughout the Mobile, Alabama region. The defendant, who had an extensive criminal history, entered a guilty plea before the Court on December 1, 2016.
This case was investigated by the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the Mobile County Sheriff’s Office, the Mobile Police Department, and the United States Marshals Service. The case was prosecuted by Assistant United States Attorney Lawrence J. Bullard for the United States Attorney’s Office for the Southern District of Alabama.
Marion County man convicted of mail fraudRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Fairmont, West Virginia man pled guilty today to mail fraud, Acting United States Attorney Betsy Steinfeld Jividen announced.
Michael Sine, age 34, pled guilty to one count of “Mail Fraud.” Sine admitted to participating in a staged vehicle accident, faking injuries from said accident, and filing false insurance claims resulting in a $41,000 settlement. The crime happened between May 2013 and October 2013 in Marion County.
Sine faces up to twenty years incarceration and a $250,000 fine. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The West Virginia Insurance Commission Office of Inspector General and the United States Postal Inspection Service investigated.
U.S. District Judge Irene M. Keeley presided.
Manhattan Doctor Arrested for Illegal Distribution of OxycodoneRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging medical doctor Martin Tesher with writing thousands of illegal prescriptions for Schedule II controlled substances, particularly opioids such as oxycodone, without a legitimate medical purpose. Tesher was arrested earlier today in Manhattan, and his initial appearance is scheduled for this afternoon before United States Magistrate Judge Lois Bloom.
The charges were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division.
As alleged in the complaint, the defendant operates a family medical practice in Manhattan. Between June 2012 and January 2017, Tesher wrote more than 14,000 prescriptions for oxycodone, totaling over 2.2 million oxycodone pills, a disproportionately high amount for a family practitioner. Opioids, which include heroin, are highly addictive narcotics. Tesher does not have any specialized training in pain management. In some cases, Tesher indicated that he knew that certain of his patients were addicted to oxycodone, or that they were using other illicit substances such as heroin or cocaine, but continued prescribing oxycodone and other opioids to those patients anyway. In one case, on a patient’s first visit, Tesher prescribed the patient 15 oxycodone pills a day without even basic verification that the patient had any injury.
“As alleged, Dr. Tesher used his position as a doctor not to heal but to foster opioid addiction,” stated Acting United States Attorney Rohde. “This Office and our partners at the DEA will continue to hold medical professionals accountable to the fullest extent of the law whenever they abrogate their duties and contribute to the opioid crisis.”
“Dr. Tesher acted no differently than a multi-million dollar heroin ring, distributing more than $20 million worth of opioids,” stated DEA Special Agent-in-Charge Hunt. “In fact, by using his position as a family practitioner, he enabled patients seeking help for substance abuse and turned new patients into opioid addicts by writing unnecessary prescriptions in exchange for cash. Law enforcement has no tolerance for rogue doctors, their medical staff or opioid traffickers, and we are committed to dismantling drug trafficking organizations, be it operating out of a family practitioner’s office or a heroin mill.”
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s investigation was led by the DEA’s Long Island Tactical Diversion Squad, which is comprised of agents and officers of the DEA, Internal Revenue Service, Nassau County Police Department (NCPD), Suffolk County Police Department, Port Washington Police Department, and Rockville Centre Police Department. The DEA Tactical Diversion Squad also worked in conjunction with officers and agents of the New York City Police Department (NYPD), Criminal Enterprise Investigations, the Department of Health & Human Services, Office of the Inspector General, New York City Department of Investigation, and NCPD’s Asset Forfeiture and Intelligence Bureau.
This case is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York as part of the Prescription Drug Initiative. In January 2012, this Office and the DEA, in conjunction with the five District Attorneys in this district, the Nassau and Suffolk County Police Departments, the New York City Police Department, and New York State Police, along with other key federal, state, and local government partners, launched the Initiative to mount a comprehensive response to what the United States Department of Health and Human Services Centers for Disease Control and Prevention called an epidemic increase in the abuse of so-called opioid analgesics. To date, the Initiative has brought over 160 federal and local criminal prosecutions, including the prosecution of 19 health care professionals, taken civil enforcement actions against a hospital, a pharmacy, and pharmacy chain, removed prescription authority from numerous rogue doctors, and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The Initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
The government’s case is being handled by the Office’s Narcotics and Money Laundering Section. Assistant United States Attorney Jennifer M. Sasso is in charge of the prosecution.
The Defendant:
MARTIN TESHER
Age: 81
Manhattan, New YorkE.D.N.Y. Docket No. 17-MJ-504
Man Sentenced to 2 Years in Prison for Marijuana Cultivation at Native American Archaeological Site in Sequoia National ForestRead the Press Release
FRESNO, Calif. — Carlos Piedra-Murillo (Piedra), 30, a citizen of Mexico, was sentenced today to two years and one month in prison for conspiring to manufacture, distribute and possess with intent to distribute marijuana in connection with a large-scale cultivation operation that impacted a prehistoric site, U.S. Attorney Phillip A. Talbert announced. Piedra was also ordered to pay $5,233 to the U.S. Forest Service to cover the cost to repair damage to the land and natural resources.
According to court documents, between May 1, 2016, and August 26, 2016, Piedra conspired with Juan Carlos Lopez, 32, of Lake Elsinore; Rafael Torres-Armenta (Torres), 30, and Javier Garcia-Castaneda (Garcia), 38, both citizens of Mexico, to cultivate marijuana in the Domeland Wilderness in the Sequoia National Forest. The Domeland Wilderness is a federally designated wilderness area about 55 miles northeast of Bakersfield and is known for its many granite domes and unique geologic formations. Law enforcement officers located over 8,000 marijuana plants at that location and seized 15 pounds of processed marijuana, a .22‑caliber rifle, a pellet rifle, and numerous rounds of .22‑caliber ammunition.
The marijuana cultivation operation caused extensive environmental damage. It covered about 10 acres and was within the burned area of the 2000 Manter Fire. Some of the new vegetation and trees that sprouted after the fire had been cut and trimmed to make room for the marijuana plants. Water was diverted from a tributary stream of Trout Creek, a major tributary to the Kern River. Fertilizer and pesticides, including illegal carbofuran and zinc phosphide, highly toxic pesticides from Mexico, were found at the site. Large piles of trash were found near the campsite. The moving of soil to accommodate a basin around each marijuana plant caused extensive damage to a large prehistoric Tűbatulabal archaeological site. Holes were dug in the middle of the archaeological site and artifacts were found scattered on the surface among the marijuana plants.
This case is the product of an investigation by the U.S. Forest Service, Bureau of Land Management, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the California Department of Fish and Wildlife. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
Torres, Lopez, and Garcia have also pleaded guilty and are scheduled for sentencing on June 26, 2017. They face a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Man Sentenced to Two Years and One Month for Marijuana Cultivation at Native American Archaeological Site in the Sequoia National ForestRead the Press Release
FRESNO, Calif. — Carlos Piedra-Murillo (Piedra), 30, a citizen of Mexico, was sentenced today to two years and one month in prison for conspiring to manufacture, distribute and possess with intent to distribute marijuana in connection with a large-scale cultivation operation that impacted a prehistoric site, U.S. Attorney Phillip A. Talbert announced. Piedra was also ordered to pay $5,233 to the U.S. Forest Service to cover the cost to repair damage to the land and natural resources.
According to court documents, between May 1, 2016, and August 26, 2016, Piedra conspired with Juan Carlos Lopez, 32, of Lake Elsinore; Rafael Torres-Armenta (Torres), 30, and Javier Garcia-Castaneda (Garcia), 38, both citizens of Mexico, to cultivate marijuana in the Domeland Wilderness in the Sequoia National Forest. The Domeland Wilderness is a federally designated wilderness area about 55 miles northeast of Bakersfield and is known for its many granite domes and unique geologic formations. Law enforcement officers located over 8,000 marijuana plants at that location and seized 15 pounds of processed marijuana, a .22‑caliber rifle, a pellet rifle, and numerous rounds of .22‑caliber ammunition.
The marijuana cultivation operation caused extensive environmental damage. It covered about 10 acres and was within the burned area of the 2000 Manter Fire. Some of the new vegetation and trees that sprouted after the fire had been cut and trimmed to make room for the marijuana plants. Water was diverted from a tributary stream of Trout Creek, a major tributary to the Kern River. Fertilizer and pesticides, including illegal carbofuran and zinc phosphide, highly toxic pesticides from Mexico, were found at the site. Large piles of trash were found near the campsite. The moving of soil to accommodate a basin around each marijuana plant caused extensive damage to a large prehistoric Tűbatulabal archaeological site. Holes were dug in the middle of the archaeological site and artifacts were found scattered on the surface among the marijuana plants.
This case is the product of an investigation by the U.S. Forest Service, Bureau of Land Management, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the California Department of Fish and Wildlife. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
Torres, Lopez, and Garcia have also pleaded guilty and are scheduled for sentencing on June 26, 2017. They face a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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Louisville Physician Sentenced to 48 Months in Prison for Unlawful Distribution of Controlled Substances and Health Care FraudRead the Press Release
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr., today announced the 48 month sentence of a Louisville physician, in United States District Court, by Chief District Judge Joseph H. McKinley, Jr., for unlawful distribution of controlled substances and health care fraud. Restitution will be determined at a later date by Chief Judge McKinley.
“Despite his physician’s oath to do no harm, Dr. George Kudmani recklessly prescribed opioids, for no legitimate medical purpose, to patients suffering from substance use disorders,” stated U.S. Attorney John Kuhn. “I hope today’s sentence will bring some measure of closure to those patients and families harmed by Dr. Kudmani. I hope, too, this sentence will send a message to physicians that prescribing opioids outside the scope of legitimate medical care will be punished.”
George Kudmani, 71, was convicted of nineteen counts of unlawfully distributing controlled substances and eight counts of health care fraud, following a seven-day jury trial, in Louisville, on January 26, 2017.
After trial, Kudmani was convicted of unlawfully distributing and dispensing controlled substances, not for a legitimate medical purpose and beyond the bounds of a professional medical practice, between July 2009 and September 2012. The controlled substances prescribed were Oxycodone, a schedule II controlled substance, and Hydrocodone, a schedule III controlled substance.
Kudmani was also convicted of health care fraud for falsely and fraudulently billing Kentucky Medicaid (Passport) by submitting claims for medically unnecessary Transvaginal Ultrasounds (TVS), TVSs not performed, and billing for TVS reports that were never prepared for patients, between January 2009 and September 2012.
Kudmani operated an obstetrical and gynecological medical practice located at 9702 Stonestreet Road, in Louisville, Kentucky from December of 1980 until 2012. The practice did not employ any other individual with medical training. Evidence developed at trial demonstrated that between 2009 and 2012, a typical first-time patient would pay $75 for a gynecological exam, then typically pay $35 in cash during later visits to receive a Schedule II-V controlled substance prescription without a physical examination. Multiple patients testified to paying cash and being prescribed controlled substances for years.
In addition to the 48 month sentence, Kudmani owes $2,600 in special penalties and will serve three years of supervised release. The amount of money he will be required to forfeit and to pay victims as restitution will be determined by the Court in a later order.
This case was prosecuted by Assistant United States Attorneys Joseph Ansari and Lettricea Jefferson-Webb, assisted by paralegal Lori Cracknell and was investigated by the United States Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Kentucky Medical Fraud Control Unit and Louisville Metro Police Department (LMPD).
Louisville Felon to Serve A Life Sentence Without the Possibility of Parole for Engaging in Sexually Explicit Conduct with A Minor and Producing ImagesRead the Press Release
Defendant is currently serving a 210-month sentence for distribution and possession of child pornography
LOUISVILLE, Ky. – A Louisville felon was sentenced to serve a life sentence without the possibility of parole, by Chief District Judge Joseph H. McKinley Jr, in United States District Court today, for coercing a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction announced United States Attorney John E. Kuhn, Jr. Arthur Wayne Kniffley is currently serving a
210-month sentence for distribution and possession of child pornography.
“Kniffley is a predator who abused innocent children repeatedly over the course of many years, children who will struggle with the effects of his unspeakable conduct for the rest of their lives,” stated U.S. Attorney John Kuhn. “We hope these victims, their families and our community may find some solace in knowing that others are finally safe from this man, who will spend the remainder of his life in prison, with no hope of parole or early release.”
Kniffley, 43, was convicted by a federal jury, on all charges, on February 8, 2017, following a three-day trial. The jury deliberated under one hour before reaching its unanimous verdict.
According to information and testimony presented at trial, on or about October 12, 2003, July 31, 2007, and August 1, 2007, in Louisville, Kniffley, molested and photographed a minor engaging in sexually explicit conduct with his Polaroid digital camera.
Kniffley was previously convicted in the Western District of Kentucky of distribution and
possession of child pornography in Criminal Action Number 3:08-CR-134-S on January 25, 2010.
For the prior case, Kniffley was sentenced to a period of 210 month’s incarceration.
During an interview with law enforcement in the previous case, Kniffley admitted to law enforcement that he viewed images of child pornography so he would not again harm children.
After the conclusion of the former prosecution the FBI and United States were contacted by a previously unidentified victim whose images had been discovered in forensic review of Kniffley’ s digital camera seized during a search warrant.
The victim explained that he/she had been sexually abused and photographed by Kniffley via digital camera when he/she was between 11 to 15 years old. The victim was interviewed by the FBI and confirmed the photographs contained his/her image. The victim said Kniffley would take pictures of him/her engaging in sexual activity with Kniffley’s digital camera.
Kniffley also sexually abused three minors in state criminal action number 95-CR-2158.
Kniffley provided a statement to a Detective that he used the children to perform sexual acts.
This case was prosecuted by Assistant United States Attorney Joshua Judd, and was investigated by the Federal Bureau of Investigation (FBI).
Lewiston Man Sentenced to Six Years for Illegal Firearm PossessionRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Nicholas Coy, 32, of Lewiston, Maine, was sentenced today in U.S. District Court by Judge George Z. Singal to six years in prison for illegally possessing a firearm.
According to court records, on December 12, 2016, Lewiston police officers responding to a 911 call at an apartment on Knox Street encountered Coy behaving irrationally and appearing to be under the influence of a controlled substance. While inside the apartment, the police recovered a handgun belonging to Coy. Coy was prohibited from possessing firearms based on prior felony convictions for robbery, aggravated assault and theft.
The case was investigated by the Lewiston Police Department; the U.S. Marshals Service; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Lawrenceville man sentenced to 28 years in prison for attempting to arrange sex with a childRead the Press Release
ATLANTA - Leonard Nathaniel Peragine, Jr., has been sentenced to over 28 years in federal prison for using the Internet to entice a child for sexual activity, and for distributing and possessing child pornography as part of that enticement.
“Peragine intentionally searched online for sexual opportunities with children, and fortunately his efforts connected him to an undercover FBI agent instead,” said U.S. Attorney John Horn. “Such conduct is as dehumanizing as it is dangerous. Sexual predators may feel the anonymity of the internet keeps them safe from detection, but this case shows that these predators will be found and prosecuted.”
“The federal investigation into Mr. Peragine Jr. clearly identified his predatory intentions and the resulting lengthy prison sentence handed down reflects the threat he posed to the community. The FBI will continue to work hard toward protecting our nation’s children from such individuals that are so clearly focused on doing them harm,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: Peragine responded to a classified advertisement that purported to offer sexual access to a child. While arranging to have sex with the child, Peragine sent child pornography videos to the undercover agent that depicted adult men committing sex acts on prepubescent children.
Peragine later spoke with who he thought was the child and asked the child whether she had seen the videos, and whether she wanted to try those activities with him. After the child said she might be interested, Peragine arranged to meet on September 29, 2015, at a location in Suwanee, Georgia. When Peragine showed up for the meeting, he was arrested and searched by the FBI. Condoms were found in his car, and additional child pornography was located on his cell phone.
Later investigation revealed other instances where Peragine sexually abused girls aged one, six, and eight, and a 14-year-old boy.
Leonard Nathaniel Peragine, Jr., 34, of Lawrenceville, Georgia, was indicted on October 27, 2015. He pleaded guilty, without a plea agreement, on October 25, 2016. He was sentenced to 28 years, four months in prison, to be followed by a lifetime of supervised release on May 31, 2017, by U.S. District Court Judge William S. Duffey, Jr. Peragine still faces outstanding state charges, in Lumpkin County, Georgia, of aggravated child molestation and other related offenses.
This case was investigated by the Federal Bureau of Investigation.
This case was prosecuted by Assistant U.S. Attorney John S. Ghose.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Lake County Woman Sentenced to 4 Years in Federal Prison for Defrauding the State of Illinois out of $6.8 Million in Unemployment BenefitsRead the Press Release
CHICAGO — A Lake County woman was sentenced today to four years in federal prison for defrauding the State of Illinois out of nearly $7 million in unemployment benefits.
LETICIA GARCIA assisted hundreds of individuals, mostly undocumented immigrants, in preparing and filing unemployment insurance claims that Garcia knew contained false information, such as invalid Social Security numbers, false assertions of U.S. citizenship, and phony dependents. As a result of the fraudulent claims, the Illinois Department of Employment Security paid out approximately $6.8 million in unemployment benefits to hundreds of ineligible claimants.
Garcia, 54, of Round Lake Beach, pleaded guilty earlier this year to three counts of mail fraud. U.S. District Judge Edmond E. Chang imposed the sentence in federal court in Chicago.
The sentence was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General in Chicago. The Illinois Department of Employment Security and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations provided valuable assistance.
“Defendant committed wholesale fraud against a state program designed to help some of the most vulnerable state residents get back on their feet after an unexpected job loss,” Assistant U.S. Attorney Nicholas Eichenseer argued in the government’s sentencing memorandum. “Her crime diminished the resources available to eligible UI claimants who played by the rules.”
“Garcia defrauded taxpayers of millions of dollars by assisting hundreds of ineligible workers in their efforts to receive unemployment insurance benefits intended for Americans who were out of work,” said Special Agent-in-Charge Vanderberg. “The Office of Inspector General will continue to work with our law enforcement partners to investigate those who attempt to fraudulently obtain money from Department of Labor Programs.”
Many of Garcia’s clients were Mexican-born immigrants without lawful immigration status or U.S. work permits, making them ineligible for unemployment insurance benefits. From 2006 through May 2012, Garcia operated an office out of a converted garage in her home, where she and her employees saw as many as 15 clients per day. It was understood that Garcia would not ask clients for immigration papers.
Garcia charged each client $300 to $400 to prepare and file a claim online, with half of the fee due upfront and the balance owed when the client received the benefits. Through her fraud, Garcia made tens of thousands of dollars, which she hid in bank accounts in her daughter’s name.
The government is represented by Mr. Eichenseer.
Juvenile Corrections Officer Arrested for Distribution of Child PornographyRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man was arrested and charged today for allegedly distributing images and videos of child sexual abuse, Acting U.S. Attorney William E. Fitzpatrick announced.
Michael A. Ruggiero, 35, of Forked River, New Jersey, a corrections officer at a juvenile detention facility, was arrested at work this morning by agents of the Department of Homeland Security, Homeland Security Investigations (HSI), on a complaint charging him with one count of distribution of child pornography. Ruggiero is expected to appear later today before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court.
According to documents filed in this case and statements made in court:
From April 16, 2016, to April 19, 2016, Ruggiero used a mobile chat application to distribute and share over the internet images and videos of children engaged in sexual acts. Anyone with information regarding possible victims of this activity is urged to contact HSI in Newark: (973)-776-5500.
The charge of distributing child pornography carries a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.
Acting U.S. Attorney Fitzpatrick credited special agents HSI, under the direction of Acting Special Agent in Charge Brian A. Michael; inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Daniel Brubaker, Philadelphia Division; and members of the Ocean County Prosecutor’s Office, with the investigation leading to today’s charge.
The government is represented by Assistant U.S. Attorney Veronica Allende of the U.S. Attorney’s Criminal Division.
The charges and allegations in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Defense counsel: Brian P. Reilly Esq., Assistant Federal Public Defender, Trenton
Heroin Trafficker Sentenced to 245 Months in Federal PrisonRead the Press Release
DALLAS — Rolando Benitez, aka “San Luis,” 35, arrested in July 2015 following a law enforcement operation that was led by the FBI, the Dallas Police Department and the Internal Revenue Service Criminal Investigation, has been sentenced, announced U.S. Attorney John Parker of the Northern District of Texas.
Last week, Benitez was sentenced by U.S. District Judge Jane J. Boyle to 245 months in federal prison. Benitez pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute a schedule I controlled substance in October 2016.
According to documents filed in the case, beginning on October 29, 2014 and continuing through February 2, 2015, Benitez and others possessed with intent to distribute 100 grams or more of a mixture or substance containing a detectable amount of heroin.
The FBI, Dallas Police Department, and Internal Revenue Service Criminal Investigation led the investigation with assistance from the Texas Department of Public Safety; the DFW Department of Public Safety; the U.S. Department of State; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Transportation Security Administration; the U.S. Secret Service; U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; and the Fort Worth, McKinney, Mesquite, and Plano Police Departments.
Assistant U.S. Attorney George Leal prosecuted.
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Heroin Dealer Who Delivered Fatal Dose Sentenced to 42 Months in PrisonRead the Press Release
A member of the Muckleshoot Indian Tribe who sold a fatal dose of heroin to a young Quileute Tribal member was sentenced today to 42 months in prison, announced U.S. Attorney Annette L. Hayes. CASEY MARIE WARD, 28, and two co-defendants sold heroin to 28-year-old Felisha Jackson on September 5, 2015. Moments after that sale, Jackson was found unresponsive by her 9-year-old daughter. Paramedics tried to save Jackson, but she died a few days later at a hospital. Social media records reveal that WARD had reached out to Jackson, asking if she knew anyone interested in buying drugs -- it was that contact that led to WARD delivering the fatal dose. At the sentencing hearing U.S. District Judge Benjamin H. Settle said, “it is important that the message go out that if you are going to engage in this type of activity and someone dies as a result, you will receive a significant prison term…. A person lost their life…. Those who are addicted and using are playing a game of Russian roulette. There will be a bullet in the chamber and somebody is going to die.”
“The heroin epidemic is taking a particularly heavy toll in Tribal communities so we are working closely with our Tribal partners to do our part to combat opioid abuse,” said U.S. Attorney Annette L. Hayes. “Cases involving small amounts of heroin are not routinely charged in federal court, but in appropriate cases where dealing on Tribal lands leads to death, we are committed to seeking just punishment. As Tribes work to provide treatment and wellness resources, law enforcement must do its part to deter those who target Tribal communities and cause tragedies like those in this case.”
According to records filed in the case, Felisha Jackson had struggled to stay clean for her three small children. Another drug user said the heroin sold by WARD and her co-defendants proved particularly powerful. After Jackson’s daughter found her mother unresponsive, she got her grandfather, and he performed CPR in an ultimately futile effort to save his daughter.
WARD too has a history of substance abuse. Judge Settle recommended that she receive drug treatment both in prison and as part of her supervised release following incarceration.
Members of the Quileute Tribal Council submitted a statement to the Court and attended the sentencing hearing. “Our community was devastated by the death of Felisha Jackson, a 28 year old mother of three,” the Tribal Council wrote. It further explained that “[t]he Quileute Tribe is attempting to stem the tide of substance abuse in several ways, including coordinating with local, state, and federal law enforcement agencies . . ., providing chemical dependency treatment, and working on several initiatives to promote wellness and prevent addiction.”
Co-defendants Hugh Brown and Edward Foster are scheduled for sentencing later this month.
The case was investigated by the FBI and the Quileute Tribal Police. The case is being prosecuted by Assistant United States Attorney Nicholas Manheim.
If you, or someone you know, would like information about resources for those suffering from a heroin or other substance abuse addiction, you can call the 24 hour Washington Recovery Helpline at 1 866-789-1511, or go to the University of Washington Alcohol and Drug Institute website (link is external). If you are between 13 and 20 years old you can also call Teen Link at 1866TEENLINK (1 866 833 6546) to talk to a teen volunteer.
Harrison County man convicted of illegal possession of a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Clarksburg, West Virginia man was convicted today in federal court of illegally possessing a firearm, Acting United States Attorney Betsy Steinfeld Jividen announced.
Casey Love, age 28, pled guilty to one count of “Unlawful Possession of a Firearm.” Love, having previously been convicted of second degree robbery in Harrison County Circuit Court and being a known user and addict of controlled substances, admitted to having in his possession a 9mm pistol in Harrison County in November 2016.
Love faces up to ten years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bridgeport Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Guatemalan National Pleads Guilty to Illegal Reentry After DeportationRead the Press Release
BOSTON - A Guatemalan national pleaded guilty and was sentenced today in federal court in Boston for a federal immigration crime.
Hirain Dermin Robles-Gomez, 44, a Guatemalan national residing in Lynn, pleaded guilty before U.S. District Court Judge Douglas P. Woodlock, who sentenced Robles-Gomez to time served of approximately three months. Robles-Gomez will be subject to deportation.
In June 1996, Robles-Gomez was deported from the United States. Federal authorities encountered Robles-Gomez in Middleton, Mass., in December 2016, and determined him to be unlawfully present in the U.S.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney David G. Tobin of Weinreb’s Major Crimes Unit prosecuted the case.
Four Fort Worth Bank Robbers SentencedRead the Press Release
FORT WORTH — Four Fort Worth bank robbers were sentenced Friday by U.S. District Judge John McBryde for their roles in the November 3, 2016 robbery of a Woodhaven National Bank. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
Judge McBryde sentenced Tony Kalumba Tshiansi, 22, to 180 months in federal prison, Justin Corie Murry, 20, to 70 months in federal prison, Tremain Keyon Smith, 22, to 37 months in federal prison, and Nykesciah Danielle Williams, 25, to 37 months in federal prison.
According to documents filed in the case, on November 3, 2016, Williams drove the four defendants to the Woodhaven National Bank located at 6301 North Beach Street, Fort Worth, Texas. Tshiansi advised of the best parking location to avoid detection and entered the bank with Murray. Murray presented a bank robbery note to a bank teller while the others waited. After the bank teller provided money the defendants fled the bank. As they fled the bank, a dye pack contained in the money exploded, rendering most of the money unusable.
The Federal Bureau of Investigation and the Fort Worth Police Department investigated. Special Assistant U.S. Attorney Dan Cole prosecuted.
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Former Bakersfield Marijuana Store Owner Sentenced to Five Years in PrisonRead the Press Release
FRESNO, Calif. — Raymond Arthur Gentile, 56, of Las Vegas, Nevada, was sentenced to five years in prison by U.S. District Judge Dale A. Drozd for conspiring to manufacture, distribute and possess with intent to distribute marijuana, manufacturing marijuana, possessing marijuana with intent to distribute, and two counts of making false statements during firearms transactions, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial in July 2016, from 2009 to 2012, Gentile was the owner and operator of ANP, a marijuana storefront, in Bakersfield. When agents executed a federal search warrant, they seized 170 marijuana plants, over 24 pounds of processed marijuana, over $68,000 in cash, and a loaded shotgun. The testimony at trial established that Gentile made $25,000 to $30,000 a month in gross proceeds. Agents found the marijuana plants growing in two separate grow rooms within the store and sales receipts indicated 40 to 50 sales to customers each day. In addition, the evidence showed that Gentile made false statements on a Firearms Transaction Record, ATF Form 4473, in order to purchase two Glock firearms. One of the firearms was seized from ANP during the investigation of this case.
Under federal law, marijuana is a controlled substance without any legitimate medical purpose. The city of Bakersfield, where Gentile’s marijuana store was located, has prohibited the operation of marijuana dispensaries within its limits. Prior to sentencing, Judge Drozd found that even under California law, Gentile was not in compliance.
The case was the product of an investigation by the Drug Enforcement Administration with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the California Highway Patrol and the Bakersfield Police Department. Assistant United States Attorneys Karen A. Escobar and Melanie L. Alsworth prosecuted the case.
Former Bakersfield Marijuana Store Owner Sentenced to Five YearsRead the Press Release
FRESNO, Calif. — Raymond Arthur Gentile, 56, of Las Vegas, Nevada, was sentenced to five years in prison by U.S. District Judge Dale A. Drozd for conspiring to manufacture, distribute and possess with intent to distribute marijuana, manufacturing marijuana, possessing marijuana with intent to distribute, and two counts of making false statements during firearms transactions, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial in July 2016, from 2009 to 2012, Gentile was the owner and operator of ANP, a marijuana storefront, in Bakersfield. When agents executed a federal search warrant, they seized 170 marijuana plants, over 24 pounds of processed marijuana, over $68,000 in cash, and a loaded shotgun. The testimony at trial established that Gentile made $25,000 to $30,000 a month in gross proceeds. Agents found the marijuana plants growing in two separate grow rooms within the store and sales receipts indicated 40 to 50 sales to customers each day. In addition, the evidence showed that Gentile made false statements on a Firearms Transaction Record, ATF Form 4473, in order to purchase two Glock firearms. One of the firearms was seized from ANP during the investigation of this case.
Under federal law, marijuana is a controlled substance without any legitimate medical purpose. The city of Bakersfield, where Gentile’s marijuana store was located, has prohibited the operation of marijuana dispensaries within its limits. Prior to sentencing, Judge Drozd found that even under California law Gentile was not in compliance.
The case was initiated by the Drug Enforcement Administration (DEA) following a report to Bakersfield Police Department regarding an assault that allegedly occurred at Gentile’s business. In sentencing the defendant, the judge found that the defendant used threats of violence in connection with the sale of marijuana.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), California Highway Patrol and Bakersfield Police Department assisted in the DEA investigation. Assistant United States Attorneys Karen A. Escobar and Melanie L. Alsworth prosecuted the case.
Five More Defendants Plead Guilty for Their Roles in Multimillion Dollar India-Based Call Center Scam Targeting U.S. VictimsRead the Press Release
Five men, including two individuals who formerly worked at scam call centers in India, each pleaded guilty within the past two weeks for their respective roles in a massive telephone impersonation fraud and money laundering scheme perpetrated by India-based call centers.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) and Inspector General John Roth of the U.S. Department of Homeland Security Office of Inspector General (DHS-OIG) made the announcement.
From May 26 to June 6, Rajubhai Patel, 32, an Indian national most recently residing in Willowbrook, Illinois; Viraj Patel, 33, an Indian national most recently residing in Anaheim, California; Dilipkumar Ambal Patel, 53, an Indian national most recently residing in Corona, California; and Fahad Ali, 25, a Pakistani national and permanent U.S. resident most recently residing in Dyer, Indiana, each pleaded guilty to money laundering conspiracy before U.S. District Court Judge David Hittner of the Southern District of Texas. Hardik Patel, 31, an Indian national most recently residing in Arlington Heights, Illinois, pleaded guilty to wire fraud conspiracy before the same court on June 2. Sentencing dates are pending for all five defendants.
According to admissions made in connection with the plea agreements, the five men and their co-conspirators perpetrated a complex scheme in which individuals from call centers located in Ahmedabad, India, impersonated officials from the IRS and U.S. Citizenship and Immigration Services (USCIS), and engaged in other telephone call scams, in a ruse designed to defraud victims in the U.S. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims, who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money. Upon payment, the call centers would immediately turn to a network of “runners” based in the U.S. to liquidate and launder the fraudulently obtained funds.
Based on the statements in his June 2 guilty plea, beginning in August 2012, Hardik Patel owned and managed the day-to-day operations of an India-based scam call center before later leaving for the U.S. While in India, in his capacity as a manager, Hardik Patel communicated extensively via email, text, and other means with various India-based co-defendants to operate the scheme and exchange scripts used in the scheme, coordinate the processing of payments from scammed victims, obtain and exchange lead lists used by callers to target U.S. victims, and exchange spreadsheets containing the personal identifying information (PII) of U.S. persons misappropriated by the scammers to register reloadable cards used in the scheme. Hardik Patel also managed worker payroll and kept detailed records of profits and expenses for various associated scam call centers. Hardik Patel continued to communicate with India-based co-defendants about the scheme and assist with the conspiracy after he moved to the U.S.
According to his June 6 guilty plea, Rajubhai Patel operated as a runner and assisted a co-defendant in managing the activities of a crew of other runners, based primarily out of Illinois, who liquidated victim funds in various locales in the U.S. for conspirators from India-based call centers. Rajubhai Patel communicated about the liquidation of scam funds via electronic WhatsApp communications with domestic and India-based co-defendants, purchased reloadable cards registered using the misappropriated PII of U.S. citizens that were later used to receive victims’ funds, and used those cards to purchase money orders and deposit them into various bank accounts of co-defendants and others as directed. Rajubhai Patel also admitted to creating and maintaining spreadsheets that detailed deposits, payments to co-conspirators, expenses and profits from the scheme.
According to admissions made in his June 2 guilty plea, Viraj Patel first became involved in the conspiracy between April and September 2013, prior to entering the U.S., when he worked at and assisted with overseeing the operations of a call center in India engaging in scam activity at the behest of a co-defendant. After entering the U.S., beginning in December 2014 Viraj Patel engaged in additional activities in support of the scheme in exchange for a cut of the profits, including serving as a processor of scam victim payments and as a runner engaging in the purchase and liquidation of cards loaded with victim scam funds. Viraj Patel communicated with various India-and U.S.-based co-defendants in furtherance of the conspiracy, and also obtained and circulated lead lists to his co-conspirators containing the PII of U.S. citizens for use by the call centers in targeting victims of the various fraud schemes and to register reloadable cards used to launder the proceeds of the schemes.
Based on the admissions made in his May 26 guilty plea, since late 2013, Dilipkumar A. Patel operated as a runner in and around Southern California, along with other co-defendants based in the region. At the direction of India-based co-conspirators, often via electronic WhatsApp communications, Patel admitted to participating in the purchase of reloadable cards registered with the PII of U.S. citizens, and the subsequent liquidation of victim scam funds loaded to those cards by co-conspirators, while keeping a percentage of the victim funds on the cards for himself.
According to his guilty plea, also on May 26, beginning in or around 2013, Fahad Ali worked as a member of a crew of runners operating in the Chicago, Illinois area, the Southern District of Texas and elsewhere throughout the country. Ali admitted that he first served as a driver for an Illinois-based co-defendant engaging in activities in furtherance of the conspiracy. Ali later operated at the direction of that co-defendant and others, via various means of communication, including text messages, to purchase reloadable cards, and then liquidate victim scam proceeds placed on those cards by India-based co-conspirators, in exchange for recurring payments. Ali also admitted to using false identification documents to receive wire transfers from victims of the fraud.
To date, Hardik Patel, Rajubhai Patel, Viraj Patel, Dilipkumar A. Patel, Fahad Ali, 51 other individuals and five India-based call centers have been charged for their roles in the fraud and money laundering scheme in an indictment returned by a federal grand jury in the Southern District of Texas on Oct. 19, 2016. Including the most recent pleas, a total of nine defendants have pleaded guilty thus far in this case. Co-defendants Bharatkumar Patel, Ashvinbhai Chaudhari, Harsh Patel and Nilam Parikh previously pleaded guilty on April 13; April 26; May 11; and May 18, respectively.
The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
HSI, DHS-OIG and TIGTA led the investigation of this case. Also providing significant support were: the Criminal Division’s Office of International Affairs; Ft. Bend County, Texas, Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and in Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection and Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration, Office of Inspector General; IOC-2; INTERPOL Washington; USCIS; U.S. State Department’s Diplomatic Security Service; and U.S. Attorneys’ Offices in Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Illinois, Northern District of Indiana, District of Nevada and District of New Jersey. The Federal Communications Commission’s Enforcement Bureau also provided assistance in TIGTA’s investigation.
Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section, Trial Attorney Robert Stapleton of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel of the Southern District of Texas are prosecuting the case.
A Department of Justice website has been established to provide information about the case to already identified and potential victims and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the Federal Trade Commission (FTC) via this website.
Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.
Federal Jury Finds Jacksonville Human Trafficking Customer Guilty of Using Underage “Models” to Produce Child PornographyRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found Thomas Leslie Carr (49, Jacksonville) guilty of using underage “models” to engage in sexually explicit conduct for the purpose of producing pornographic images and videos. He faces a minimum mandatory penalty of 15 years, up to 30 years, in federal prison on each of the two charges. Carr has been in custody since his arrest and a sentencing hearing is set for September 21, 2017.
According to court documents and evidence presented at trial, in 2012, law enforcement officers began a human trafficking investigation involving the prostitution of minor and adult females throughout the state of Florida, by an individual named Michael Gallon (52, Lakeland). The investigation revealed that Gallon had recruited his victims to travel and work at “parties” and “VIP rooms” as “models,” where customers paid to have sex with them. During the investigation, agents identified and interviewed several female victims who had been prostituted by Gallon; Carr was identified as one of his regular customers.
On October 28, 2013, Gallon was arrested and charged with sex trafficking of minors and production of child pornography. Two weeks later, a federal search warrant was executed at Carr’s residence. During an interview, Carr admitted that he had hired about 15 girls from Gallon over a three-year period. He stated that Gallon called him when he had girls available in Jacksonville and that the two would meet so that Carr could pay Gallon to select girls to take back to his residence. At his home, Carr paid the females for photos session that usually consisted of photographing the female wearing an outfit, stripping nude, and then wearing a costume. He stated that he usually tried to get the female to masturbate for him on video, then he would attempt to have sex with her. If the female was reluctant, Carr would offer her more money.
During the search of Carr’s residence, agents recovered computer media that contained images and videos of at least two minors, ages 15 and 17, engaged in sexually explicit conduct. Car admitted to doing “photo shoots” with each of these girls, and videos depicted him engaging in sexual intercourse with one of them.
In 2014, Gallon pleaded guilty and was sentenced to 33 years and 9 months in federal prison.
This case was investigated by the Lakeland Police Department, the Florida Department of Law Enforcement, the Jacksonville Sheriff’s Office, and U.S. Immigration and Customs Enforcement‘s Homeland Security Investigations in Tampa and Jacksonville. It is being prosecuted by Assistant United States Attorneys D. Rodney Brown, Beatriz Gonzalez, and Stacie Harris.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Federal Government Contractor in Georgia Charged with Removing and Mailing Classified Materials to a News OutletRead the Press Release
A criminal complaint was filed in the Southern District of Georgia today charging Reality Leigh Winner, 25, a federal contractor from Augusta, Georgia, with removing classified material from a government facility and mailing it to a news outlet, in violation of 18 U.S.C. Section 793(e).
Winner was arrested by the FBI at her home on Saturday, June 3, and appeared in federal court in Augusta this afternoon.
“Exceptional law enforcement efforts allowed us quickly to identify and arrest the defendant,” said Deputy Attorney General Rod J. Rosenstein. “Releasing classified material without authorization threatens our nation’s security and undermines public faith in government. People who are trusted with classified information and pledge to protect it must be held accountable when they violate that obligation.”
According to the allegations contained in the criminal complaint:
Winner is a contractor with Pluribus International Corporation assigned to a U.S. government agency facility in Georgia. She has been employed at the facility since on or about February 13, and has held a Top Secret clearance during that time. On or about May 9, Winner printed and improperly removed classified intelligence reporting, which contained classified national defense information from an intelligence community agency, and unlawfully retained it. Approximately a few days later, Winner unlawfully transmitted by mail the intelligence reporting to an online news outlet.
Once investigative efforts identified Winner as a suspect, the FBI obtained and executed a search warrant at her residence. According to the complaint, Winner agreed to talk with agents during the execution of the warrant. During that conversation, Winner admitted intentionally identifying and printing the classified intelligence reporting at issue despite not having a "need to know," and with knowledge that the intelligence reporting was classified. Winner further admitted removing the classified intelligence reporting from her office space, retaining it, and mailing it from Augusta, Georgia, to the news outlet, which she knew was not authorized to receive or possess the documents.
An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
The prosecution is being handled by Trial Attorney Julie A. Edelstein of the U.S. Department of Justice’s National Security Division’s Counterintelligence and Export Control Section, and Assistant U.S. Attorney Jennifer Solari of the U.S. Attorney’s Office for the Southern District of Georgia. The investigation is being conducted by the FBI.
2017 06 05 Winner Criminal Complaint Form 2017 06 05 Winner Criminal Complaint AffidavitDistrict Man Sentenced to 11 Years in Prison for Attacking Man in Downtown IntersectionRead the Press Release
WASHINGTON – George Joyner, 50, of Washington, D.C., has been sentenced to an 11-year prison term on a charge of voluntary manslaughter in the slaying of a man last summer in downtown Washington, U.S. Attorney Channing D. Phillips announced today.
Joyner pled guilty in March 2017, in the Superior Court of the District of Columbia. The plea, which was contingent upon the Court’s approval, called for a sentence of 11 years in prison. The Honorable Hiram E. Puig-Lugo accepted the plea on June 2, 2017, and sentenced Joyner accordingly. Following his prison term, Joyner will be placed on three years of supervised release.
According to the government’s evidence, on Aug. 8, 2016, at approximately 7:30 p.m., Joyner became involved in a physical altercation with Keon Parker, 28, who was walking in the area of the intersection of Second and E Streets NW. At some point during the altercation, Joyner began to assault Mr. Parker with a sharp object. Mr. Parker fell to the ground, and Joyner continued to attack him. Onlookers rushed to the aid of Mr. Parker, as did the District of Columbia Department of Fire and Emergency Medical Services. Mr. Parker was declared dead at approximately 8:10 p.m. He had been stabbed in the neck and torso.
Joyner was apprehended in the area soon after the attack by officers with the Metropolitan Police Department (MPD). He made several statements to police indicating that he was involved in an altercation with Mr. Parker at the intersection.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Zekiah Wright and Kelly Blakeney, Victim/Witness Advocate Marcia Rinker, and Assistant U.S. Attorney Charles Willoughby, Jr., who investigated and prosecuted the matter.