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11 July 2017
Chehalis Man Who Photographed Molestation of 9-Year-Old Girl Sentenced to 20 Years in PrisonRead the Press Release
A 33-year-old resident of Chehalis, Lewis County, Washington was sentenced late yesterday in U.S. District Court in Tacoma to a total of more than 20 years in prison and lifetime supervised release for production of child pornography, announced U.S. Attorney Annette L. Hayes. BRANDON K. PHELPS is already serving more than 15 years in prison on a state sentence for separate crimes of child molestation and rape. At the sentencing hearing U.S. District Judge Benjamin H. Settle imposed a 228-month federal sentence on top of an 18-month sentence PHELPS had already served in state custody, saying, “Deterrence is very important...word must be out there for others like you that, if you engage in these crimes (child sex offenses), you will receive very long sentences.”
According to records filed in the case, in 2014, PHELPS babysat three minor children, one of whom was a 9-year-old girl. PHELPS forced the young girl to engage in sexually explicit conduct. PHELPS made photos of the abuse using his smart phone, and described the abuse to others in email communications. PHELPS made additional sexually explicit photos of another young child while she slept. In October 2014, law enforcement received a cyber-tip concerning the defendant’s online exchange of child pornography with others. PHELPS was arrested in January 2015.
On February 22, 2017, PHELPS was sentenced to 185 months in prison for Child Molestation for an incident in 2009 when he pulled a 10-year-old’s bathing suit aside to view her bare vagina, watched her take a shower and offered to display his naked body to her. PHELPS was also convicted of raping his adult girlfriend while she was incapacitated.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI) and the Seattle Police Department in its role as operator of the Internet Crimes Against Children (ICAC) task force.
The case was prosecuted by Assistant United States Attorney Grady Leupold in coordination with the Lewis County Prosecuting Attorney’s Office.
Charleston man pleads guilty for failing to register as a sex offenderRead the Press Release
CHARLESTON, W.Va. – A Charleston man faces up to 10 years in federal prison after pleading guilty today to failing to register as a sex offender, announced United States Attorney Carol Casto. Hershel Vanhoose, 43, also faces a term of federal supervised release of at least five years and up to life following his sentence.
Vanhoose admitted that from early 2016 until his arrest on February 12, 2017, he failed to register as a sex offender as required by the Sex Offender Registration and Notification Act. On February 12, 2017, Vanhoose was arrest by the Charleston Police Department on an outstanding warrant for failure to update his registration in Ohio. Vanhoose was required to register as a sex offender because of a 2003 Ohio conviction for gross sexual imposition involving a minor.
Vanhoose is scheduled to be sentenced on October 18, 2017.
The Charleston Police Department, the United States Marshals Service, and the West Virginia State Police conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
This case is being prosecuted as part of an ongoing initiative of the United States Attorney’s Office to combat child sexual exploitation and abuse in the Southern District of West Virginia.
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Catawba Co. Man Sentenced to 20 Years in Prison on Child Pornography ChargesRead the Press Release
STATESVLLE, N.C. – Nathan Matthew Jennings-Townsend, 25, of Newton, N.C. was sentenced late yesterday by U.S. District Judge Richard L. Voorhees to 240 months in prison on child pornography charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Jennings-Townsend was also ordered to serve a lifetime of supervised release and to register as a sex offender.
Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas and Robert Schurmeier, Director of the North Carolina State Bureau of Investigation join U.S. Attorney Rose in making today’s announcement.
“Jennings-Townsend used his computer savviness in the worst possible way: to trade in child pornography and to exploit and victimize innocent children. Hiding behind the screen of a computer to violate children in no way shields an offender. This case demonstrates that law enforcement is very effective in identifying offenders and collecting evidence so that we may prosecute and imprison those engaged in such repugnant behavior” said U.S. Attorney Rose.
According to court documents and information introduced at the sentencing hearing, law enforcement became aware that an individual in the United States, later identified as Jennings-Townsend, was using a foreign based photo file sharing website to view child pornography and to solicit others to trade child pornography. In June 2014, law enforcement seized Jennings-Townsend electronic devices, including a computer and a cellphone. According to court records, forensic analyses of those devices revealed that Jennings-Townsend possessed images and videos of child pornography, some of which depicted prepubescent minors engaging in sadistic and masochistic or other violent conduct.
Jennings-Townsend pleaded guilty in January 2017 to one count of transportation of child pornography. Jennings-Townsend also has a previous statutory rape conviction in North Carolina. He is currently in custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
U.S. Attorney Rose thanked HSI and SBI for their investigation of this case. Assistant U.S. Attorney Cortney Randall, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
CVS Pharmacy Inc. Pays $5M to Settle Alleged Violations of the Controlled Substance ActRead the Press Release
SACRAMENTO, Calif. — CVS Pharmacy Inc. has paid $5 million to resolve federal Controlled Substances Act (CSA) allegations that its pharmacies in the Eastern District of California failed to keep and maintain accurate records of Schedule II, III, IV, and V controlled substances, U.S. Attorney Phillip A. Talbert and Drug Enforcement Administration Special Agent in Charge John J. Martin announced today.
Drugs, substances, and certain chemicals used to make drugs are classified into five distinct categories or schedules depending upon the drug’s acceptable medical use and the drug’s abuse or dependency potential.
In addition to the settlement payment, CVS has agreed to an administrative compliance plan with the DEA. The payment and plan resolve the United States’ allegations that during the period from April 30, 2011, through April 30, 2013, CVS pharmacies failed to provide effective controls and procedures to guard against diversion when CVS failed to: record the amount received and the date received of Schedule II drugs on DEA-222 Forms; maintain DEA-222 Forms and keep them separate from other records; record the date of acquisition of controlled substances in Schedules II through V; maintain invoices for drugs in Schedules III through V and keep the records separate from non-controlled substance records; and conduct a biennial inventory on one specific day.
“The Department of Justice is committed to fighting prescription drug abuse, including the alarming rise of prescription opioid abuse that is plaguing the country,” U.S. Attorney Talbert stated. “National retailers that distribute massive amounts of controlled substances have a responsibility to comply with recordkeeping regulations because these regulations are specifically designed to prevent dangerous drugs from being diverted into the community and abused.”
“The nation is in the midst of an opioid crisis and all entities that distribute controlled substances must hold the frontline. Regulatory compliance and accurate recordkeeping are key in a pharmacy’s ability to prevent prescription drug diversion,” stated DEA Special Agent in Charge Martin.
Under the settlement reached July 5, 2017, CVS acknowledges that its DEA-registered pharmacies were and are required to comply with the CSA, and that nine CVS pharmacies in the Eastern District of California failed to fulfill these recordkeeping obligations in a manner fully consistent with CVS’s responsibilities under the CSA. The settlement and compliance plan cover the 168 CVS pharmacies that operated in the Eastern District of California from April 30, 2011, through April 30, 2013.
The allegations resolved by this settlement were uncovered during a DEA investigation that began in 2012 after CVS self-reported thefts and losses of hydrocodone, a Schedule III drug at the time, at five of its Sacramento-area pharmacies. Under the CSA, DEA-registered pharmacies are obligated to report any thefts or significant losses of controlled substances to DEA.
To address the issues uncovered by this investigation, CVS made improvements to its pharmacies in the Eastern District of California by, among other things, instituting annual CSA compliance training of its pharmacy staff, increasing loss prevention oversight, and excluding controlled substances prescriptions from the volume metric that can impact pharmacy staff compensation.
Assistant U.S. Attorneys M. Anderson Berry and Kurt Didier handled the case with assistance from diversion investigators at DEA’s Sacramento field office.
Brandon Man Sentenced to 30 Months for Stolen Identity Refund Fraud ConspiracyRead the Press Release
Tampa, Florida – U.S. District Judge Richard A. Lazzara has sentenced Aaron Stanley (48, Brandon) to two years and six months in federal prison for conspiracy and aggravated identity theft. The Court also ordered him to make restitution to the Internal Revenue Service in the amount of $203,887.10, which constitutes the proceeds of the offenses.
Stanley pleaded guilty on March 9, 2017.
According to court documents, in 2011, Stanley and others used the proceeds of stolen identity refund fraud to purchase three vehicles from Rodriguez Auto Wholesale in Tampa. Stanley and his conspirators used debit cards loaded with fraudulently obtained tax refunds to purchase money orders that they used to purchase a Cadillac Escalade, an Infiniti SUV, and a Chevrolet Camaro. The false and fraudulent tax returns filed by the conspirators using stolen identities resulted in the conspirators receiving $203,887.10 in fraudulently obtained tax refunds.
The owner of Rodriguez Auto Wholesale, Raymond Rodriguez, pleaded guilty to money laundering and was sentenced to 37 months in federal prison on March 28, 2017. Stanley’s co-defendant, Charmeta Bess, who participated in the purchase of the Cadillac Escalade, was sentenced to five years’ probation on February 24, 2017.
This case was investigated by the Internal Revenue Service - Criminal Investigation. It was prosecuted by Assistant United States Attorney Mandy Riedel.
Boston Man Sentenced for Armed Bank RobberyRead the Press Release
BOSTON – A Boston man was sentenced yesterday in federal court in Boston for armed bank robbery.
Kenneth E. Denny, 61, was sentenced by U.S. District Court Judge Denise J. Casper to 51 months in prison and three years of supervised release after pleading guilty in April 2016. He is currently in custody in New York for armed bank robbery, and the sentence imposed today will run concurrent to his sentence in Buffalo.
On July 24, 2015, Denny entered a branch of the Citizens Bank on Washington Street in Brighton and handed the teller a demand note. He removed what appeared to be a bomb from a newspaper he was carrying and placed it on the teller’s counter, demanding money. The teller handed Denny $4,040. When Denny turned to exit the bank, he was confronted by the bank’s manager, at which time he dropped the bag of money, headed toward the exit door and removed a white cell phone from his pocket and stated: “I am going to blow it up.” Denny then exited the bank and was observed heading down Washington Street. The bomb was later determined by law enforcement to be a hoax.
The suspect had also left his wallet on the teller’s counter containing a Massachusetts Identification Card with the name Kenneth E. Denny and a headshot. Law enforcement recalled that they had observed an individual resembling the man in the photo heading down Washington Street as they were approaching the bank just a few minutes earlier. Denny was later located and asked his name, to which he replied, “Kenneth Denny.” When Denny was asked to produce some identification, he stated he must have lost his wallet. Bank employees subsequently picked Denny out of a line-up as the individual who had robbed them.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William B. Evans made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit prosecuted the case.
Berthold USA Pleads Guilty to Misrepresenting That Packages Used to Ship Radioactive Materials Had Been Properly TestedRead the Press Release
KNOXVILLE, Tenn. - Berthold Technologies, USA (Berthold), of Oak Ridge, Tennessee, has entered into a plea agreement with the U.S. Attorney’s Office for the Eastern District of Tennessee in which Berthold admits that it falsely represented that devices shipped in interstate commerce had been tested to meet the requirements of the U.S. Department of Transportation for radioactive containers. The devices, used to measure density of fluids used in natural gas fracking operations, were shipped from Oak Ridge to Texas and Oklahoma in March and October 2014.
The plea agreement on file with the U.S. District Court recommends that Berthold be ordered to pay a fine of up to $500,000 at sentencing, with $50,000 to be paid upon entry of the company’s guilty plea in federal court. The plea agreement anticipates that the sentencing hearing be set 18 months after the entry of Berthold’s guilty plea. During the 18 months between guilty plea and sentencing, Berthold will work with the Pipeline and Hazardous Materials Safety Administration of the U.S. Department of Transportation to address any problems that may exist concerning the safety of the devices that have been shipped to Berthold’s customers. Under the terms of the plea agreement, costs associated with remedying any identified problems with the devices will reduce the ultimate fine amount to be paid by Berthold at sentencing.
This investigation was conducted by the U.S. Department of Transportation – Office of Inspector General. Assistant U.S. Attorney Matthew T. Morris is handling the prosecution of the case.
Bergen County, New Jersey, Man Sentenced to 162 Months in Prison for Conspiracy to Distribute More Than Three Kilograms of Heroin in PatersonRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced today to 162 months in prison for purchasing more than three kilograms of heroin from a source in Bronx, New York, and re-selling it to drug dealers in Paterson, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Edwin Lopez, a/k/a “E,” a/k/a “Pan,” 31, of Elmwood Park, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to information charging him with one count of conspiracy to possess with intent to distribute more than one kilogram of heroin.
According to the documents filed in this case and statements made in court:
From June 2015 to May 2016, Lopez and others allegedly participated in a drug trafficking organization that amassed wholesale quantities of heroin at multiple locations around Bronx and used couriers to deliver large quantities of heroin to mid-level drug dealers in Paterson. The heroin was either sold in the Paterson area or redistributed to street-level drug dealers in suburban areas, including Morris County, New Jersey, and Rockland County, New York.
Lopez admitted he participated in this conspiracy from June 2015 until his arrest on April 19, 2016. He admitted that at the time of his arrest, he was giving a $13,500 payment to one of Goris-Castellano’s couriers in exchange for the 150 bricks of heroin.
In addition to the prison term, Judge Wigenton sentenced Lopez to five years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the OCDETF/Narcotics Unit of the U.S. Attorney’s Office in Newark.
This case was brought under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Beaumont Federal Inmate Guilty of Assaulting Prison GuardRead the Press Release
BEAUMONT, Texas – A 51-year-old federal inmate has pleaded guilty to assaulting a prison guard in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Terence Millsaps, of New Orleans, LA, pleaded guilty to assaulting a federal officer before U.S. Magistrate Judge Zack Hawthorn on July 10, 2017.
According to information presented in court, on Feb. 9, 2017, while an inmate with the Bureau of Prisons, Millsaps assaulted a correctional officer by striking the officer in the face with a closed fist.
Under federal statutes, Millsaps faces up to eight years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the Federal Bureau of Prisons and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Athol Man Sentenced for Possession of Child PornographyRead the Press Release
BOSTON – An Athol man was sentenced today in federal court in Worcester for possession of child pornography.
Arthur Cummings, 49, was sentenced by U.S. District Court Judge Timothy S. Hillman to 30 months in prison and five years of supervised release. In May 2017, Cummings pleaded guilty to one count of possession of child pornography.
On March 10, 2016, a federal search warrant was executed at Cummings’ residence based upon an investigation into individuals who use anonymizing software to traffic in child pornography on the “dark web,” a part of the internet accessible only by special software allowing users to remain anonymous. A forensic review of a laptop seized from Cummings’ home revealed the presence of more than 100 images of child pornography and 10 videos, many of which depicted prepubescent children and toddlers engaged in sexual intercourse with adult men.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Worcester Police Chief Steven M. Sargent; and Athol Police Chief Russel Kleber made the announcement today. Assistant U.S. Attorney Mark J. Grady of Weinreb’s Worcester Branch Office prosecuted the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Amherst Man Pleads Guilty to Drug ConspiracyRead 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 Rohan Chopra, 22, of Amherst, NY, pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, MDMA, also known as “Molly,” before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Patricia Astorga, who is handling the case, stated that the defendant conspired with co-defendants Connor Dempsey and Joel Jacob. All three defendants agreed that Chopra would store various controlled substances at 365 Campus Drive in Buffalo, an apartment rented by Dempsey and Jacob. Chopra was also allowed to sell drugs out of the apartment. Dempsey and Jacob gave Chopra keys to the apartment so that he could access and distribute the drugs stored in the apartment. Chopra also ordered controlled substances from the Internet and had them delivered to the apartment. Chopra instructed Dempsey and Jacob not to sign for packages and to deny that they were expecting a package to avoid liability.
On August 17, 2016, Jacob signed for a parcel addressed to him during a controlled delivery by the U.S. Postal Inspection Service. The package, which Chopra ordered over the internet using bitcoins, was sent from Munchen, Germany and contained over 180 grams of MDMA. During a search of the apartment, officers recovered quantities of: marijuana; LSD; cocaine; THC; Xanax; and ketamine. They also found a digital scale, baggies, empty capsules, other drug paraphernalia, and another mail parcel addressed to Chopra. After Chopra learned about the search, he contacted Dempsey and Jacob and asked them to take responsibility for a quantity of the controlled substances found in the apartment.
Dempsey and Jacob have been convicted and are awaiting sentencing.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security investigations, under the direction of Special Agent-in-Charge James C. Spero; and the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski of the Boston Division.
Sentencing is scheduled for December 12, 2017 at 11:00 a.m. before Judge Wolford.
American Samoan Woman Arrested on Charges of False Claims for Filing over 200 Fraudulent Tax Returns on Behalf of Other IndividualsRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that Coriana Ifopo, 54, of American Samoa, was arrested today in Honolulu, Hawaii, and has been charged with 28 counts of making false claims to a government agency.
According to Assistant U.S. Attorney Aunnie Steward, who presented the case to the grand jury, Ifopo filed tax returns on behalf of over 200 other individuals living in American Samoa. Ifopo falsely claimed that they lived in the United States, including Alaska, and falsely claimed that they were owed refunds when they were not. The false claims included listing false dependents, false withholdings, and claiming earned income credits when they were not applicable.
The law provides for a maximum sentence of five years in prison for each count and a $250,000 fine or both. Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Department of Treasury, Internal Revenue Service, Criminal Investigation Division conducted the investigation leading to the indictment in the case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Amarillo Woman Sentenced for $400,000 Airline Travel SchemeRead the Press Release
AMARILLO, Texas — Ai Inthavong Lopez, 37, of Amarillo, Texas, was sentenced this morning before U.S. District Court Judge Sidney A. Fitzwater to 34 months in federal prison following her guilty plea to one count of mail fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
Judge Fitzwater ordered Lopez to pay $426,044.66 in restitution. Lopez was also ordered to report to the Bureau of Prison on August 22, 2017.
According to plea documents, from May 2014, and continuing through November 2015, Lopez participated in a scheme involving the sale of fictitious vouchers for future airline travel.
Specifically, Lopez, and persons acting at her direction, would telephonically contact customers in the United States who were falsely informed that they could purchase a voucher for either a round-trip domestic or international flights. Lopez claimed to customers that she was Stephanie Cancino, and that she received discounts on airline tickets through her employment.
Lopez would persuade some customers of her scheme, who did not know of the fraudulent nature of the scheme, to telephonically contact other customers to purchase airline vouchers for future travel. Customers who purchased vouchers would provide personal information, such as name, email address, phone number, and credit card information to Lopez. Lopez would receive money from customers via the United States Postal Service, PayPal, wire transfers, bank transfers, and credit card payments. Lopez, at times, would use the customer’s credit card to purchase other customers’ flight tickets.
To entice customers, Lopez would contact customers about vouchers for one-day sales or special promotions. Lopez knew actual airline tickets purchased by Lopez cost significantly more than the amount a customer paid to purchase the voucher. Lopez continued to solicit customers by promising vouchers below the market rate. Lopez would often have the customers purchase their airline tickets when they were stranded and Lopez would promise to reimburse the customer for the amount they spent. Several times during the course of this scheme, Lopez provided a check to customers to reimburse them for their loss, but the check would be returned to the customer by the bank due to insufficient funds. Lopez would then stop communication with the customer.
As a result of the scheme, Lopez’s false and fraudulent pretenses, representations, and promises fraudulently induced customers to issue monetary payments to Lopez, and for the benefit of Lopez, resulting in a total loss of approximately $401,955.06.
The Federal Bureau of Investigation and Amarillo Police Department investigated. Assistant U.S. Attorney Joshua Frausto prosecuted.
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Albuquerque Man Sentenced to Five Years for Conviction on Federal Firearms and Heroin Trafficking ChargesRead the Press Release
ALBUQUERQUE – Gerald Herrera, 31, of Albuquerque, N.M., was sentenced today in federal court to 60 months in prison for his conviction on firearms and heroin trafficking charges. Herrera will be on supervised release for three years after completing his prison sentence.
Herrera was arrested on April 7, 2016, on an indictment charging him with being a felon in possession of a firearm and ammunition, possessing methamphetamine and heroin with intent to distribute, and using and carrying a firearm in relation to a drug trafficking crime. According to the indictment, Herrera committed the offenses on July 8, 2015, in Bernalillo County, N.M. Herrera was prohibited from possessing firearms or ammunition because he previously had been convicted of receiving or transferring a stolen vehicle, tampering with evidence, possession of cocaine, homicide by vehicle and auto burglary.
On Dec. 10, 2016, Herrera pled guilty to possessing heroin with intent to distribute and carrying a firearm in relation to a drug trafficking crime. In entering the guilty plea, Herrera admitted that on July 8, 2015, officers of the Albuquerque Police Department found a firearm, ammunition and individually packaged bags of heroin and methamphetamine on him and in his vehicle during a traffic stop.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department. Assistant U.S. Attorney Rumaldo R. Armijo 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.
Albuquerque Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Adam Chavez, 35, of Albuquerque, N.M., pled guilty today in federal court to a methamphetamine trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Chavez was arrested in Feb. 2016, and was charged by criminal complaint with possessing methamphetamine with intent to distribute on Feb. 16, 2016, in Bernalillo County, N.M. According to the complaint, Deputies of the Bernalillo County Sheriff’s Office and Special Agents of the DEA seized three bags containing an aggregate of 934 grams of methamphetamine and drug paraphernalia when they executed a state search warrant at Chavez’s residence. Chavez was subsequently indicted on the same charge on March 8, 2016.
During today’s proceedings, Chavez pled guilty to the indictment. In entering the guilty plea, Chavez acknowledged that on Feb. 16, 2016, law enforcement officers executed a search warrant at his Albuquerque residence. Chavez admitted that as the officers approached his residence, they observed him throw a brown bag containing a shirt, a set of scales and 846 grams of pure methamphetamine from his second floor balcony onto a neighboring rooftop before reentering his residence.
At sentencing, Chavez faces a statutory minimum penalty of ten years and a maximum of life in federal prison. Chavez remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and the Bernalillo County Sheriff’s Office. Assistant U.S. Attorneys Alexander M. Uballez and Timothy S. Vasquez are prosecuting the case.
10 July 2017
Wakpala Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Wakpala, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance, was sentenced on July 6, 2017, by U.S. District Judge Roberto A. Lange.
Brooke Malenia Ducheneaux, age 31, was sentenced to 48 months in custody, followed by 3 years of supervised release, a fine of $500, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $100.
Ducheneaux was indicted by a federal grand jury on January 19, 2017. She pled guilty on April 17, 2017.
Between the March 1, 2014, and January 19, 2017, Ducheneaux knowingly and intentionally conspired with others to distribute methamphetamine in the District of South Dakota. Ducheneaux received distributable quantities of methamphetamine and distributed some of the methamphetamine in South Dakota. The individuals who provided Ducheneaux with methamphetamine knew that she intended to engage in further distribution. Ducheneaux admitted that more than 350 grams of methamphetamine was distributed during the course of the conspiracy.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division, the Federal Bureau of Investigation, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Ducheneaux was immediately turned over to the custody of the U.S. Marshals Service.
Union County Man Charged with Possessing Child PornographyRead the Press Release
NEWARK, N.J. – A Springfield, New Jersey, man who was previously convicted of possessing child pornography was arrested this morning on the same charge, Acting U.S. Attorney William E. Fitzpatrick announced.
Sam Cynamon, 66, is charged by criminal complaint with one count of possession of child pornography. He appeared this afternoon before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court was released on $100,000 unsecured bond.
According to the complaint:
On Jan. 10, 2017, Cynamon used an Internet based peer-to-peer network to request a webcam video file of a prepubescent girl engaging in sexually explicit conduct. On July 10, 2017, law enforcement obtained multiple computers and electronic storage media belonging to Cynamon from his residence. The computers and electronic storage media contained the peer-to-peer network software and multiple images and videos of child pornography, including images of child sexual abuse.
Cynamon previously pleaded guilty in New Jersey federal court to possession of child pornography in March 2005 and was sentenced to 27 months in prison.
As a result of Cynamon’s prior conviction, the charge of possession of child pornography carries a mandatory minimum potential penalty of 10 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 with the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Brian A. Michael, with the investigation.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Alan Zegas Esq., Chatham, New Jersey
U.S. Customs and Border Protection Officer and Two Others Plead Guilty to Roles in Marihuana Distribution ConspiracyRead the Press Release
AMARILLO, Texas — Today, Russell Tim Shen, 69, Andre Jorge Hernandez, 39, and Ernesto Esteve, 50, all from Miami, Florida, appeared before U.S. District Judge Sidney A. Fitzwater and pleaded guilty to their roles in a marihuana distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Shen and Hernandez pleaded guilty to one count of distribution and possession with intent to distribute marihuana. They face a maximum penalty of 5 years in federal prison and a $250,000 fine. Esteve pleaded guilty to one count of misprision of a felony. He faces a statutory maximum of 3 years in federal prison and a $250,000 fine. Sentencing for all three defendants is scheduled for October 23, 2017.
According to plea documents filed in the case, in December 2013, Esteve traveled from Florida to Colorado with Hernandez. While in Colorado, Esteve purchased thousands of dollars’ worth of supplies and equipment used to grow and cultivate marihuana plants. In February 2014, Esteve’s credit card was used to purchase additional materials used for the growth and cultivation of marihuana plants.
On March 14, 2014, Esteve paid for one-way flights from Miami, Florida, to Denver, Colorado, for Shen, who was an officer with the U.S. Customs and Border Protection stationed in Miami, Florida and Hernandez. Shen and Hernandez landed in Denver, Colorado, shortly after midnight on March 15, 2014. Shen and Hernandez rented a car in Denver, Colorado, which was due in Miami, Florida, on March 17, 2014.
On March 15, 2014, a Childress, Texas police officer pulled over a vehicle for following too closely. The vehicle was a rental car driven by Shen. During the stop, Shen identified himself to the police officer as a federal law enforcement officer. The passenger in the vehicle was identified as Hernandez, also a resident of Miami, Florida. Based on suspicious behavior, the Childress police officer asked for consent to search the vehicle. Shen refused to provide consent. So the police officer deployed his canine, who was already on the scene, to conduct a free-air sniff of the car. The police officer then informed Shen and Hernandez that he was going to search the car based on the canine’s alert. During the search, police found approximately 71 gross pounds of suspected marihuana in the trunk of the vehicle.
During an interview with law enforcement, Esteve made misleading statements to the agents about Shen’s and Hernandez’s conspiracy to distribute marihuana in an attempt to conceal the crime.
The Federal Bureau of Investigation, U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Childress Police Department, Amarillo Police Department, Douglas County, Colorado Sheriff's Office and Castle Rock, Colorado Police Department are conducting the investigation. Assistant U.S. Attorney Sean Taylor is in charge of the prosecution.
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Tribal District Vice-Chair Appears in Federal Court for Embezzlement ChargeRead the Press Release
United States Attorney Randolph J. Seiler announced that a Lacreek District Vice-Chair has been indicted by a federal grand jury for Embezzlement and Theft from an Indian Tribal Organization.
Charles Leo Cummings, 57, of Martin, South Dakota, was indicted on June 20, 2017. He made his initial appearance before U.S. Magistrate Judge Daneta Wollman on July 7, 2017, and pled not guilty to the indictment.
The maximum term of imprisonment upon conviction is up to 5 years, and/or a $250,000 fine, a period of 3 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment charges that between December 28, 2015, and January 18, 2016, Cummings did willfully and knowingly embezzle, steal, misapply, and convert to his own use more than $1,000 of monies, funds, credits, goods, assets, and other property belonging to the Oglala Sioux Tribe.
The investigation is being conducted by the Federal Bureau of Investigation and the Department of Interior, Office of Inspector General. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the United States Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the United States Attorney’s Office at (605)330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Tohono O’odham Woman Sentenced to 5 Years for Child AbuseRead the Press Release
PHOENIX – Today, Rosalee Vavages, 55, of Sacaton, Ariz., a member of the Tohono O’odham Indian Nation, was sentenced by U.S. District Judge John J. Tuchi to 63 months in prison. Vavegas had previously pleaded guilty to child abuse, likely to produce death or serious bodily injury. Previously, co-defendant Ernestine Jefferson, 74, a member of the Gila River Indian Community, was sentenced to 30 months in prison, also after pleading guilty to child abuse. Victims are current members of the Tohono O’odham Indian Nation and the offenses occurred on the Gila River Indian Community.
The investigation in this case was conducted by the Gila River Police Department and the Federal Bureau of Investigation. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-16-1242-PHX-JJT
RELEASE NUMBER: 2017-059_Vavages
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Three Former Employees of Evans Landscaping Plead Guilty to Involvement in Defrauding City, State ‘Small Business’ & ‘Minority Business’ ProgramsRead the Press Release
CINCINNATI – Three former employees of Evans Landscaping pleaded guilty in U.S. District Court to charges related to defrauding the City of Cincinnati and other public entities including universities and numerous school districts through fraudulent small business and minority business contracts.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Office, and Ohio Attorney General Mike DeWine announced the pleas entered today before U.S. District Judge Michael R. Barrett.
Maurice Patterson, former CFO of Evans Landscaping, and Michael Moeller, former manager at Evans Landscaping, each pleaded guilty to one count of conspiracy to commit wire fraud. Conspiracy to commit wire fraud is punishable by up to 20 years in prison, up to three years of supervised release, a fine of up to $250,000 and mandatory restitution.
John Dietrich, former CFO of Evans Landscaping, pleaded guilty to one count of misprision of a felony. Misprision of a felony carries a maximum sentence of three years in prison, up to one year of supervised release, a fine of up to $250,000 and mandatory restitution.
Documents filed with their guilty pleas say Patterson and Moeller conspired with others between 2008 and 2014 to create a company, Ergon Site Construction, LLC, to serve as a fraudulent Small Business Enterprise (SBE) and Minority Business Enterprise (MBE) company for the benefit of Evans Landscaping in obtaining public contracts. Dietrich became aware of the conspiracy and scheme to defraud and helped conceal the crime in 2013.
U.S. Attorney Glassman commended the investigation of this case by the FBI’s Southern Ohio Public Corruption Task Force, which includes special agents from the FBI and the Ohio Bureau of Criminal Investigation, as well as Assistant United States Attorney Timothy S. Mangan and Deputy Criminal Chief Emily N. Glatfelter, who are prosecuting the case.
Six Orlando-Area Residents Indicted for Conspiracy Involving Impersonating Homeland Security Agents and Wire FraudRead the Press Release
Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of a 25-count indictment charging John Pierre Mack III (25, Kissimmee, former member of the Florida National Guard), Ronnie Rolland Montgomery (28, Orlando), David Augusta Jones, III (26, Orlando), Dillon McDowell (25, Orlando), Amaryllis Pagan (19, Kissimmee), and Ashley Ferrell (26, Orlando) with one count of conspiracy to commit wire fraud and multiple counts of wire fraud. Mack, Montgomery, and Jones are charged with 24 counts of wire fraud. Ferrell, McDowell, and Pagan are charged with 13, 9, and 4 counts of wire fraud, respectively. The maximum penalty for each count is 20 years in federal prison.
According to the
indictment , from at least August 1, 2015, through July 6, 2017, these individuals were part of a criminal organization that was demanding money from victims by claiming to be agents with the Department of Homeland Security (DHS) and/or the Cyber Crimes Center (C3). Typically, the victims had responded to an online dating post and engaged in a conversation and exchange of photos with a female that they believed was an adult. The victims were later contacted by schemers posing as “agents,” who alleged that the female from the dating post was under the age of 18. The “agent” would claim that they had an arrest warrant for charges of soliciting a minor and would then direct the victim to make payments for “fines” and “penalties,” in lieu of being arrested. To further their scheme, the “agents” sent paperwork to the victims displaying the DHS seal, a judge’s name, and legal terms related to child exploitation. The schemers utilized email addresses containing variants of “child exploitation” and “cyber crimes center” in their correspondence. The victims were then directed to retail locations where they were to wire money to pay these “fines” or “fees,” and the defendants then took turns picking up the payments. The defendants also traded victims with each other to continue the scheme and to get more money. The victims, many of whom were members of the military or elderly, sent multiple extortion payments, ranging from $200 to $1,900 per transaction, fearing that they would otherwise be arrested.An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s Office of Professional Responsibility and Homeland Security Investigations (San Diego) with assistance from the Naval Criminal Investigative Service (San Diego) and the Osceola County Sheriff’s Office. It is being prosecuted by Special Assistant United States Attorney Christina R. Downes, on assignment from the Office of the Principal Legal Advisor, ICE.
Senior Member of Drug Trafficking Organization Admits Conspiring to Sell Heroin in New JerseyRead the Press Release
TRENTON, N.J. – A senior member of a large-scale drug trafficking organization today admitted distributing heroin in Ocean and Monmouth Counties and elsewhere in New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Robert Britt, a/k/a “True,” 45, of Asbury Park, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an indictment charging him with conspiracy to distribute heroin.
Between March and May 2014, 21 other individuals, including numerous members of the drug trafficking organization, were charged in two separate criminal complaints with conspiring to distribute heroin and other related offenses. The complaint referred to the drug trafficking organization as the “Britt-Young DTO,” after two of its leading members, Britt and Rufus Young, a/k/a “Equan,” a/k/a “E-Money,” a/k/a “Kintock.” As of today’s plea, all 22 defendants have been convicted.
According to documents filed in the case and statements made in court:
Between July 2010 and March 2014, Britt conspired with others to distribute heroin in Ocean and Monmouth counties as part of the Britt-Young DTO. During his plea hearing, Britt admitted that he distributed between one and three kilograms of heroin in furtherance of the conspiracy and that he served as a manager or supervisor of the conspiracy.
Under the terms of the plea agreement, if accepted by the court, Britt will receive a sentence of 12 years in prison. Sentencing is scheduled for Nov. 2, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI Red Bank Resident Office, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation.
The government is represented by Assistant U.S. Attorneys Nicholas Grippo and Brendan Day of the U.S. Attorney’s Office Criminal Division in Trenton.
Scranton Business Owners Sentenced to Home-Confinement in Unemployment Benefit SchemeRead the Press Release
WILKES-BARRE. The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on July 8, 2017, United States District Court Judge A. Richard Caputo sentenced Samuel and Steven Borgia to 6 months home-confinement and 1-year probation for conspiring to commit wire fraud in connection with the fraudulent receipt of unemployment benefits. Judge Caputo also ordered that the defendants pay $169,524.33 in restitution to the Federal and State Department of Labor.
According to United States Attorney Bruce D. Brandler, Samuel Borgia, age 52, and Steven Borgia, age 46, owned and operated Home Resource Corporation, a home improvement company in Scranton. From 2009 to 2012, the defendants filed fraudulent claims for unemployment compensation and received unemployment benefits to which they were not entitled. Additionally, the defendants instructed a number of their employees who were employed to falsely report to the Pennsylvania Department of Labor that the employees were not employed in order for the employees to also fraudulently receive unemployment benefits. The defendants and their co-conspirators received more than $150,000 as a result of the scheme and caused more than $300,000 in losses to both the Federal and State Department of Labor.
The Borgia brothers plead guilty to a one-count information pursuant to plea agreements on November 30, 2016.
The case was investigated by the United States Department of Labor, Office of the Inspector General, and the Pennsylvania Department of Labor. Assistant United States Attorney Evan Gotlob is prosecuted the case.
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Salina Man Sentenced to 20 Years on Federal Drug, Gun ChargesRead the Press Release
TOPEKA, KAN. - A Salina man was sentenced Monday to 20 years in federal prison on drug and gun charges, U.S. Attorney Tom Beall said.
Jason Lars Sheets, 36, Salina, Kan., pleaded guilty to one count of conspiracy to distribute methamphetamine and one count of brandishing firearms in furtherance of drug trafficking. In his plea, he admitted he was a member of a drug trafficking organization operating in the Salina area in 2016. He admitted that he and his co-defendants jointly possessed 18 firearms including pistols and rifles.
Co-defendants include:
Seth Allen George, 26, Salina, who was sentenced in June to 18 years.
Tyler Lee Shea, 21, Salina, Kan., who was sentenced in June to 15 years.
Kyle Allen Palmer, 30, Salina, Kan., who was sentenced in April to 15 years.
Beall commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Salina Police Department, the Saline County Sheriff’s Office and Assistant U.S. Attorney Greg Hough for their work on the case.
Russian-Born Cybercriminal Sentenced to over Nine Years in PrisonRead the Press Release
ALEXANDRIA, Va. – A nearly decade-long member of several elite Russian-speaking cybercrime forums was sentenced today to 110 months in prison for running a sophisticated scheme to steal and traffic sensitive personal and financial information in the online criminal underground.
Alexander Tverdokhlebov, 29, of Los Angeles, pleaded guilty on March 31 to wire fraud. Accordingly to court documents, the defendant, who emigrated from Russia in 2007 and subsequently obtained U.S. citizenship, was an active member of several highly exclusive Russian-speaking cybercrime forums since at least 2008. Through his membership on these forums, Tverdokhlebov forged lucrative business partnerships with other Russian-speaking cybercriminals, with whom he exchanged tools, services, and stolen personal and financial information.
The defendant offered a variety of illegal services on these forums, including the laundering of stolen funds. He also operated several “botnets,” which are groups of compromised computers that can be used to steal credit card and other sensitive financial information. At various times between 2009 and 2013, Tverdokhlebov claimed on the cybercrime forums that, among other things, he possessed 40,000 stolen credit card numbers and could control up to 500,000 infected computers.
Tverdokhlebov executed a number of schemes to “cash out” or monetize the financial information he stole, such as by selling it to other cybercriminals or by providing it to accomplices who would use it to make fraudulent purchases or fraudulent withdrawals from victims’ accounts. In addition, the defendant recruited Russian students visiting the United States on J-1 visas to open bank accounts in their names, receive money from victim accounts, and then transfer the money to Tverdokhlebov or his co-conspirators.
The plea agreement stipulates to estimated losses between $9.5 and $25 million. Upon Tverdokhlebov’s arrest, the government seized $272,000 in hundred dollar bills distributed among several safe deposit boxes in Los Angeles and Las Vegas. The government was able to seize additional assets from the defendant, including Bitcoin, currently valued at approximately $5 million.
As part of the sentencing, the court also ordered the defendant to serve three years of supervised release following his prison term, with conditions of release that will include monitoring of the defendant’s computer use.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Brian J. Ebert, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after sentencing by U.S. District Judge T.S. Ellis III. Assistant U.S. Attorneys Kellen S. Dwyer and Laura Fong prosecuted the case.
The New York County District Attorney’s Office, along with the U.S. Secret Service’s Los Angeles Field Office, provided significant assistance with the investigation.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-9.
Repeat Sex Offender Sentenced to More Than 17 Years in PrisonRead the Press Release
Steve Butler, Acting United States Attorney for the Southern District of Alabama, announced that Sam Wesley Conaway, 49, of Citronelle, was sentenced today to 210 months in prison for possession and transportation of child pornography. Conaway entered a guilty plea to both charges in March and was sentenced by Senior United States District Judge Callie V.S. Granade.
Documents filed with Conaway’s guilty plea show that he uploaded 58 videos to a remote internet file storage service, and that the videos contained child pornography involving victims that appeared to be from 2 to 14 years of age. Separately, law enforcement agents received information that Conaway was engaged in sexually explicit online chats with girls as young as 14. Conaway was a registered sex offender as a result of a 1998 conviction for child molestation in Georgia. Following a search warrant at his home, agents recovered several hundred videos and images of child pornography.
Following his release from prison, Conaway will be supervised by the United States Probation Office for the rest of his life. Conaway will also be required to maintain his registration as a sex offender.
The case was investigated by the Alabama Law Enforcement Agency (ALEA) and the Federal Bureau of Investigation (FBI), and was prosecuted by Assistant United States Attorney Sean P. Costello. It 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. 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.
Registered Sex Offender Sentenced to 12 Years in Prison for Attempting to have Sex with a ChildRead the Press Release
A 50-year old Seattle man with previous convictions for sex offenses against children, was sentenced today in U.S. District Court in Seattle to 12 years in prison and 20 years of supervised release for attempted enticement of a minor, announced U.S. Attorney Annette L. Hayes. TODD DARREN RICKDAL, was arrested following a Seattle Police Department sting operation in November 2016. RICKDAL communicated by email, text and telephone believing he was making arrangements to have sex with the undercover’s 5-year-old daughter. At sentencing U.S. District Judge James L. Robart said he was “substantially concerned about protecting the public.”
“A federal conviction – with its significant penalties and intensive supervision after release – is the right result in a case like this,” said U.S. Attorney Annette L. Hayes. “I commend law enforcement for working proactively to identify those who try to use the internet to commit their crimes. There is no question that their work prevented the exploitation of real children and the impact such horrific crimes have over a lifetime.”
According to records filed in the case, the Seattle Police Department initiated an investigation into people using the website Craigslist to seek sex with children. The undercover officer posted an ad in the ‘Casual Encounters’ section referencing “family fun.” RICKDAL responded to the ad and over the next few days made statements regarding his intent to meet the undercover to have sex with the undercover’s fictitious 5-year-old child. RICKDAL was arrested when he arrived at the hotel and had products in his possession that he had described to the undercover as aids to assist in the planned sexual abuse.
RICKDAL is a registered sex offender and at the time of the current offense was still on community corrections supervision for a 2012 conviction for Attempted Child Molestation in the Second Degree and Possession of Depictions of Minors Engaged in Sexually Explicit Conduct. RICKDAL served 34 months in prison for that conviction.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse that was launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Seattle Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI). The case was prosecuted by Special Assistant United States Attorney Cecelia Gregson. Ms. Gregson is a Senior Deputy King County Prosecutor specially designated to prosecute child exploitation crimes in federal court.
Raymore Man Sentenced to 19 Years for Armed Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Raymore, Mo., man was sentenced in federal court today for the armed robbery of United Missouri Bank in Raymore.
Charles O. Jones, 53, of Raymore, was sentenced by U.S. District Judge Howard F. Sachs to 19 years and seven months in federal prison without parole.
Jones, who pleaded guilty on Feb. 10, 2017, admitted that he stole $1,330 at gunpoint from United Missouri Bank, 315 S. Dean, Raymore, on April 4, 2016. Jones brandished an air soft pistol, which the tellers believed was a handgun. Jones demanded money and threatened to shoot if they didn’t comply with his demands. A teller gave Jones money from her drawer and he fled from the bank.
The air soft gun was recovered from a trash can located in a nearby Lowe’s Home Improvement store. Jones was arrested the next day.
This case was prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the FBI and the Raymore, Mo., Police Department.
Providence Resident Sentenced for Possessing and Viewing Child PornographyRead the Press Release
PROVIDENCE – David A. Skally, 58, of Providence, was sentenced today to 30 months in federal prison for possessing and accessing child pornography with the intent to view, announced Acting United States Attorney Stephen G. Dambruch; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England; and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Skally to serve 5 years supervised release upon completion of his prison term and to pay a mandatory $5,000 special assessment pursuant to the Justice for Victims of Trafficking Act of 2015.
The U.S. Sentencing Guidelines in this matter provide for a sentence of 51-63 months of imprisonment. The government recommended the court impose a sentence of 46 months of incarceration.
The Justice for Victims of Trafficking Act of 2015 requires non-indigent defendants convicted of child exploitation, child pornography, human trafficking, and human smuggling offenses to pay a $5,000 fine in addition to any other penalties imposed. The money from these fines are deposited into a “Domestic Trafficking Victims’ Fund” to supplement programs that provide victims’ services to domestic human trafficking victims, and provide law enforcement with resources to investigate and combat modern-day slavery.
David Skally pleaded guilty on December 20, 2016, to possessing and accessing child pornography with the intent to view. He was arrested on July 11, 2016.
According to information presented to the court, in September 2015, the HSI Child Exploitation Unit became involved in a child pornography investigation into multiple individuals, believed to be residing across the United States as well as abroad, and who are members of an Internet-based bulletin board. Users of the bulletin board were provided a link to a file sharing site from which child pornography could be accessed, viewed and downloaded.
A court authorized search of the defendant’s computers at his residence in June 2016 by members of HSI and the Rhode Island State Police Internet Crimes Against Children Task Force resulted in the discovery of child pornography. A further forensic examination of the computers resulted in the discovery of approximately 284 videos and 418 images of child pornography.
The case was prosecuted by Assistant U.S. Attorney John P. McAdams.
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Prior Felon from Roswell Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Gilbert Dutchover, 58, of Roswell, N.M., pled guilty today in federal court in Las Cruces, N.M., to violating the federal firearms laws. The plea agreement recommends an 18-month prison sentence followed by a term of supervised release to be determined by the court.
Dutchover was arrested on May 5, 2017, on an indictment charging him with being a felon in possession of a firearm and ammunition on Aug. 18, 2014, in Chaves County, N.M. According to the indictment, Dutchover was previously convicted of unlawful carrying of a firearm into a licensed liquor establishment, being a felon in possession of a firearm or destructive device, receiving stolen property and cocaine trafficking.
During today’s proceedings, Dutchover pled guilty to the indictment and admitted that on Aug. 18, 2014, law enforcement officers located a pistol and ammunition in his garage during the execution of a search warrant on his residence. Dutchover further admitted that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon. A sentencing hearing has yet to be scheduled.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Chaves County Sheriff’s Office and the Pecos Valley Drug Task Force. Assistant U.S. Attorneys Luis A. Martinez and Selesia L. Winston of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Postal Employee Sentenced for Stealing MailRead 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 Richard D’Arcy, Jr., 37, of Buffalo, NY, who pleaded guilty to theft of mail by a postal employee, was sentenced to one year probation by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated that on August 2, 2016, a U.S. Postal Service mail carrier discovered 52 pieces of mail, in delivery order, in a blue collection box on McKinley Parkway in Buffalo. It was determined that each of those pieces of mail were never delivered to Fisher Road (Route 53) in West Seneca, NY. Some of the mail was postmarked July 30, 2016, and was supposed to be delivered on August 1, 2016. The defendant delivered Route 53 on August 1, 2016. He also lived approximately a half of a mile from the blue mailbox in which the undelivered mail was discovered.
A review of the Global Positioning System (GPS) used to track the delivery of mail parcels showed that on August 1, 2016, D’Arcy drove through the portion of Route 53 on Fisher Road where the mail was supposed to be delivered. A comparison of the GPS data from the day before and the day after showed the postal carrier made many more stops and took much longer to deliver the same portion of Fisher Road.
A subsequent search of the defendant’s car uncovered multiple bundles of undelivered advertisements, placards, and First Class mail. D’Arcy opened some of the mail and took the contents, which included solicitations from various veterans groups, children's cancer foundations, and animal protection groups, which contained a $1 bill or other coin currency, seeking additional contributions from patrons.
The sentencing is the culmination of an investigation on the part of the United States Postal Service, Office of the Inspector General, under the direction of Special Agent-in-Charge Monica Weyler, Eastern Area Field Office, Philadelphia, PA.
Pittsburgh Woman Pleads Guilty to Federal Drug and Gun ChargesRead the Press Release
PITTSBURGH - A former resident of Pittsburgh, Pa., pleaded guilty in federal court on Friday to charges of violating federal drug and firearm laws, Acting United States Attorney Soo C. Song announced today.
Janay Brown pleaded guilty to four counts before United States District Judge Mark Hornak.
In connection with the guilty plea, the court was advised that in July of 2016, multiple individuals began overdosing on stamp bags marked “CEO.” A local law enforcement agency arrested an individual with some of these stamp bags and alerted the DEA. That person agreed to cooperate and identified Brown as the source of the heroin and fentanyl. The DEA investigation led to a search warrant which was issued for Brown’s residence. There, federal agents located Brown, over 100 “bricks” of heroin and fentanyl, firearms, ammunition, cellphones and a large amount of cash. Brown had a prior 2009 conviction for Forgery and a prior 2011 conviction for a drug offense. Each of these offenses precluded her from lawfully possessing a firearm or ammunition under federal law.
Judge Hornak scheduled sentencing for November 9, 2017 at 1:30 p.m. The law provides for a total sentence of not less than five years and up to life in prison, a fine of up to $2,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the and the prior criminal history of the defendant.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Drug Enforcement Administration (DEA) conducted the investigation that led to the prosecution of Brown with valuable assistance from the Pennsylvania State Police and other local police departments.
Pawtucket Resident Sentenced for Possessing Stolen Firearm with Obliterated Serial NumberRead the Press Release
PROVIDENCE, R.I. – Justice Reyes, 20, of Pawtucket, was sentenced today to time served, 14 months in federal prison, for possession of a firearm with an obliterated serial number, announced Acting United States Attorney Stephen G. Dambruch and Mickey Leadingham, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
At the time of his guilty plea, Reyes admitted to the court that on April 1, 2016, he sold the firearm to an undercover ATF agent while outside of his residence. Reyes was serving a Rhode Island state court imposed sentence of home confinement at the time he sold the firearm to the agent.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Reyes to serve 3 years supervised release upon completion of his term of imprisonment. Reyes pleaded guilty on February 21, 2017.
The U.S. Sentencing Guidelines imprisonment range in this matter is 33–41 months. The government recommended the court impose a term of incarceration of 33 months.
According to information presented to the court, on April 1, 2016, an undercover ATF agent bought a .22 caliber semi-automatic rifle from Reyes for $350. Reyes specified that the serial number had been obliterated, and that he could get the undercover and the undercover’s associates additional guns with obliterated serial numbers.
According to Rhode Island state court records, Reyes was sentenced on March 17, 2016, to one year home confinement for violating a suspended sentence imposed on January 29, 2016, having pleaded nolo contendre to a charge of simple assault domestic. Reyes began serving his home confinement sentence two weeks prior to selling the firearm to the ATF agent.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
The matter was investigated by ATF and the Rhode Island AFT Task Force. Acting United States Attorney Stephen G. Dambruch thanks the Pawtucket Police Department for their assistance in the investigation of this matter.
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Overland Park Man Sentenced to 8+ Years for Distributing Child PornographyRead the Press Release
KANSAS CITY, KAN. - An Overland Park man was sentenced Monday to 97 months in federal prison for distributing child pornography on the Internet while posing as a 46-year-old woman, U.S. Attorney Tom Beall said.
Frank Joseph Kurtz, 70, Overland Park, Kan., pleaded guilty to one count of distributing child pornography. In his plea, he admitted that an investigation by the Israeli National Police first identified emails in which Kurtz used the alias “Lisayearning46” to send child pornography to another person. The FBI in Kansas tracked the emails to Kurtz, who registered with Yahoo under the name “Lisa Lewis” and used photos he found on the Internet as his profile picture.
Beall commended the FBI, the Heart of America Regional Computer Forensics Laboratory and Assistant U.S. Attorney Kim Flannigan for their work on the case.
Optometry Practice Agrees to Pay $16,343 to Settle Civil Health Care Fraud CaseRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy today announced that Brunswick Eye Care Associates, P.C. (“BECA”) has entered into a civil settlement agreement with the United States and the State of Maine in which it will pay $16,343 to resolve allegations that it submitted false claims to Medicare, TRICARE, the Department of Veterans Affairs (“VA”), and MaineCare (Maine’s Medicaid program) from May 7, 2014 through April 29, 2016. MaineCare is primarily funded by the United States, which pays about two-thirds of all claims submitted to MaineCare.
According to a civil complaint filed today, BECA billed and received reimbursement from Medicare, TRICARE, the VA, and MaineCare for services provided by BECA, and then improperly used a portion of the funds received from these programs to pay the salary and benefits of a BECA employee who previously had been excluded from Federal health care programs and the MaineCare program. Prior to joining BECA, the employee had been excluded based upon her conviction for stealing drugs while employed as a pharmacy technician. Before employing this woman, BECA failed to ask her whether she had ever been excluded from participation in any Federal health care program or MaineCare. BECA also did not check the publicly available exclusion databases maintained by the Department of Health and Human Services’ Office of Inspector General and MaineCare’s Program Integrity Unit, despite federal regulations prohibiting the employment of excluded providers.
Federal health care programs may not pay, directly or indirectly, for items or services furnished, ordered, or prescribed by excluded individuals or entities. This prohibition extends to administrative and clerical personnel, and is not limited to health care providers. By failing to abide by the requirements of the MaineCare and Federal health care programs regarding the employment of excluded individuals, BECA acted with reckless disregard of the falsity of the claims it submitted to MaineCare and Federal health care programs.
The case was investigated by the U.S. Department of Health & Human Services, Office of Inspector General, and the Attorney General’s Office of the State of Maine. The civil action is docketed United States and the State of Maine v. Brunswick Eye Care Associates, P.C., 2:17-cv-257-DBH (D. Me.).
Ocala Doctor Pleads Guilty to $1.5 Million Fraud Scheme Involving Clipping of ToenailsRead the Press Release
Jacksonville, FL – Acting United States Attorney W. Stephen Muldrow announces that Michael Rotstein (Ocala, 55) today pleaded guilty to one count of healthcare fraud. He faces a maximum penalty of 10 years’ imprisonment and must pay mandatory restitution of approximately $1.5 million. A sentencing date has not yet been set.
According to the
plea agreement , Rotstein, a podiatrist, billed the Medicare and TRICARE healthcare programs. He was one of the highest billers in the country for a medical service requiring the “removal of skin and muscle.” He claimed that nearly half of his procedures were for the removal of skin and muscle, placing him in the top one-percent of billers nationwide for this procedure. In reality, Rotstein did not actually perform these procedures. Rather, the majority of the times that he billed for these procedures, he was actually performing routine foot care, including the clipping of toenails, which is not a reimbursable service under Medicare or TRICARE. Since the services performed were not reimbursable, Rotstein devised a scheme to submit claims to the Medicare and TRICARE programs that included using a false diagnosis code and false billing code. Further, he included notes in his patients’ medical files to make it appear that he was actually performing these services. As a result of the scheme, Rotstein received $1,504,952.67 in healthcare reimbursements to which he was not entitled.This case was investigated by the Department of Health and Human Services, Office of Inspector General. It was prosecuted by Assistant United States Attorney Jason Mehta.
Oakland Woman Sentenced to 8 Years in Prison for Transporting 14-Year-Old Across State Lines to Engage in ProstitutionRead the Press Release
OAKLAND – Carrie Myles was sentenced today to 96 months in prison for transporting a 14-year-old girl from Oakland, Calif., to Las Vegas, Nev., for the purpose of making the girl available to engage in commercial sex acts, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Haywood S. Gilliam, U.S. District Judge.
Myles, 38, of Oakland, pleaded guilty on February 27, 2017, to driving a 14-year-old girl across state lines to engage in commercial sex acts. According to her plea agreement, Myles admitted that for nearly a month she profited from arranging for the minor to engage in commercial sex acts with adults. Myles admitted she photographed the girl while she was partially dressed in provocative clothing and also admitted posting or directing the girl to post those photos in advertisements on an online classified website service. Myles acknowledged she misrepresented the girl’s age in the advertisements and admitted she instructed the girl that, if asked, the girl should tell customers she was an adult. Myles also provided the girl with clothing to use in photographs and while performing sex acts and controlled the phone number she provided the minor. Myles admitted she used the girl’s purported number to communicate with potential customers who may have thought they were communicating with the girl they saw in photographs in the advertisements. Myles also admitted that for a month, on approximately a daily basis, she urged the girl to engage in commercial sex acts. This continued until Myles was arrested in September of 2015 after she drove the girl to an Oakland hotel to meet with someone who had solicited prostitution.
On September 29, 2016, a federal grand jury indicted Myles, charging her with one count of transportation for illegal sexual activity, in violation of 18 U.S.C. § 2421(a) and one count of transportation of a minor for illegal sexual activity, in violation of 18 U.S.C. § 2423(a) and (e). Pursuant to her plea agreement, Myles pleaded guilty to the transportation for illegal sexual activity charge and received sentencing enhancements for her behavior with the minor including the following: committing the federal offense while having the minor in her custody and control, knowingly misrepresenting the girl’s age, and unduly influencing the minor to engage in commercial sex.
In addition to the prison term, Judge Gilliam also sentenced Myles to serve a five-year term of supervised release and ordered Myles to register as a sex offender.
Assistant U.S. Attorney Thomas R. Green is prosecuting the case with the assistance of Noble Hughes and Trina Khadoo. The prosecution is the result of an investigation by the FBI.
If members of the public have any information relevant to this investigation or to suspected child predators or suspicious activity, the FBI encourages them to contact HSI through the toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form at https://www.ice.gov/webform/hsi-tip-form. Both are staffed around the clock by investigators. Suspected child sexual exploitation or missing children may also be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-THE-LOST.
Nine Additional Savannah Residents Indicted with Federal Gun Crimes as Part of Efforts to Combat Violent CrimeRead the Press Release
SAVANNAH, GA: Last week, as part of numerous ongoing investigations being conducted by the ATF and the Savannah-Chatham Metropolitan Police Department (SCMPD), a federal grand jury sitting in Savannah charged 9 more Savannah residents with a variety of firearms offenses and drug crimes:
Eron Ventura, 24, of Savannah, charged with possession of a firearm by a convicted felon, possession with intent to distribute marijuana and possession of a firearm in furtherance of drug trafficking;
Tevin Lawton, 25, of Savannah, charged with receipt of a firearm while under indictment, possession of a sawed-off shotgun, and being a drug user in possession of firearms;
John Young, Jr., 26, of Savannah, charged with possession of a firearm by a convicted felon;
Timothy Kendall Stewart, 30, of Savannah, charged with two counts of possession of a firearm by a convicted felon;
Eric Brown, 39, of Savannah, charged with possession of a firearm by a convicted felon;
Robert Anthony Frazier, 35, of Savannah, charged with possession of firearms by a convicted felon, possession with intent to distribute methamphetamine, ecstasy, and marijuana and possession of firearms in furtherance of a drug trafficking crime;
Daryl Jackson, 40, of Savannah, charged with possession of a firearm by a convicted felon;
Dominick Jackson, 33, of Savannah, charged with possession of a firearm by a convicted felon, possession with intent to distribute ecstasy and possession of a firearm in furtherance of a drug trafficking crime; and,
Kevin Reevey, 32, of Savannah, charged with possession of a firearm by a convicted felon.
Acting U. S. Attorney James Durham said, “Earlier this year, Attorney General Jeff Sessions instructed U. S. Attorneys' Offices to identify those responsible for significant violent crime in our communities, and, if the decision is made to pursue federal charges, to utilize the substantial tools available under federal law to prosecute those offenders. We’re working closely with SCMPD and the Chatham County District Attorney’s Office on a number of fronts to address violent crime problems in Savannah. The indictments returned last week aren’t the first federal indictments and they certainly won’t be the last, as we work together to take back this great city from those spreading violence and fear.”
All federal defendants charged with the unlawful possession of a firearm face a maximum sentence of 10 years in prison and a $250,000 fine. However, any defendant who has at least three prior violent felonies or serious drug offenses will face a mandatory minimum sentence of at least 15 years in prison. Additionally, defendants who possess firearms in furtherance of drug trafficking face a consecutive sentence of at least 5 years in prison. Parole has been abolished in the federal system.
Acting U. S. Attorney Durham emphasized that indictments are only accusations and are not evidence of guilt. Each defendant is entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
Assistant United States Attorneys Carlton R. Bourne, Jr., Tania D. Groover, Marcela C. Mateo, Bradford C. Patrick and Jennifer G. Solari are prosecuting the cases on behalf of the United States.
New York Man Admits Robbing Bergen County, New Jersey, BankRead the Press Release
NEWARK, N.J. – A New York man today admitted robbing a bank in Fort Lee, New Jersey, in January 2017, Acting U.S. Attorney William E. Fitzpatrick announced.
Issac Nesbit, 30, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count of bank robbery.
According to the documents filed in this case and statements made in court, Nesbit admitted that Jan. 20, 2017, he robbed a Bank of New Jersey in Fort Lee. Nesbit admitted that he handed a teller a hand-written note demanding cash and threatening to shoot everyone in the bank if the teller did not comply.
The bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Oct. 17, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Bergen County Prosecutor’s Office, under the direction of Prosecutor Gurbir S. Grewal; and the Fort Lee Police Department, under the direction of Chief Keith M. Bendul, with the investigation leading to the conviction.
The government is represented by Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Patrick McMahon Esq., Assistant Federal Public Defender, Newark
Navajo Man from Shiprock Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Aaron Curley, 55, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pled guilty today in federal court in Albuquerque, N.M., to an assault charge under a plea agreement with the U.S. Attorney’s Office.
Curley was arrested in Nov. 2016, on a criminal complaint charging him with assaulting a Navajo woman by stabbing her in the leg and sternum area with a knife. Curley was indicted on Dec. 20, 2016, and charged with assault with a dangerous weapon, a knife, with intent to do bodily injury and assault resulting in serious bodily injury. According to the indictment, the offenses took place on Nov. 20, 2016, on the Navajo Indian Reservation in San Juan County, N.M.
During today’s proceedings, Curley pled guilty to Count 1 of the indictment charging him with assault with a dangerous weapon. In entering the guilty plea, Curley admitted that on Nov. 20, 2016, he assaulted the victim by stabbing her in the left leg and caused the victim to sustain cuts to her left arm and hand as she was defending herself.
At sentencing, Curley faces a maximum penalty of ten years in federal prison. Curley remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Kyle T. Nayback is prosecuting this case as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Maryland Real Estate Flipper Pleads Guilty to Obstructing IRS and Failing to File Tax ReturnsRead the Press Release
A Maryland man who bought, improved and sold residential real estate pleaded guilty today in U.S. District Court for the District of Maryland to one count of obstructing the lawful functions of the Internal Revenue Service (IRS) and four counts of failing to file personal and corporate income tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Stephen M. Schenning for the District of Maryland.
According to the indictment and information presented to the court, David J. Simard, 58, purchased and sold real estate in Maryland and elsewhere since the mid-1980s. In January 2008, Simard received notice that the IRS, in connection with an audit of his personal income taxes, had requested documents and information from third parties regarding his real estate transactions. Less than one month after receiving this notice, Simard created Pegasus Home Corporation and began buying and selling properties in its name instead of his own. From 2009 through 2010, Simard purchased and sold 96 properties in the name of Pegasus. Simard attempted to conceal his ownership and control of Pegasus by falsely representing that his relative was the owner. Simard had the same relative apply with the IRS for an employer identification number for Pegasus and used this when buying and selling properties. This caused the IRS to receive information falsely indicating that the relative owned Pegasus. Simard also instructed the relative to open a bank account for Pegasus. Simard did not file personal tax returns for tax years 2009 and 2010, despite earning income requiring him to file. He also did not file corporate tax returns for Pegasus for the same years despite having an obligation to do so.
Sentencing is scheduled for Oct. 12 before U.S. District Judge Roger W. Titus. Simard faces a statutory maximum penalty of three years in prison for obstructing the IRS and one year in prison for each count of failure to file tax returns. He also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Schenning thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Michael C. Vasiliadis and Kenneth C. Vert of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Manhattan U.S. Attorney Announces Arrest of Bronx Man in Connection with the Murder of Jessica WhiteRead the Press Release
Joon H. Kim, Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced today the arrest of STIVEN SIRI-REYNOSO in connection with the June 11, 2016, murder of Jessica White in the vicinity of the John Adams Houses in the Bronx, New York. The defendant was arrested this morning and is expected to be presented later today in Manhattan federal court before United States Magistrate Judge Andrew J. Peck. The case is assigned to Chief United States District Judge Colleen McMahon.
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SIRI-REYNOSO, 24, of the Bronx, is charged in an Indictment with one count of murder through the use of a firearm in connection with a crime of violence, and aiding and abetting the same. He faces a maximum sentence of death or life in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the FBI, the NYPD, and the New York/New Jersey Regional Fugitive Task Force.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorney Drew Johnson-Skinner is in charge of the prosecution.
The charge contained in the Indictment is merely an accusation and the defendant is presumed innocent unless and until proven guilty.
Man Pleads Guilty to Conspiring to Provide Material Support to Terrorists and Soliciting the Murder of a Federal JudgeRead the Press Release
Yahya Farooq Mohammad, 39, pleaded guilty today to one count of conspiracy to provide and conceal material support or resources to terrorists and one count of solicitation to commit a crime of violence.
Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney David A. Sierleja for the Northern District of Ohio, Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Field Division, and U.S. Marshal Peter J. Elliott of the Northern District of Ohio made the announcement. The U.S. Attorney’s Office of the Eastern District of Michigan supervised the prosecution of the solicitation to commit a crime of violence charge.
“The defendant conspired to provide and did provide material support to Anwar Al-Awlaki in response to his calls to support violent jihad,” said Acting Assistant Attorney General Boente. “The National Security Division’s highest priority is counterterrorism and we will continue to pursue justice against those who seek to provide material support to terrorists.”
“This defendant conspired to attack our service members abroad as well as a judge in Toledo,” Acting U.S. Attorney Sierleja said. “He threatened the hallmarks of our democracy. He is a dangerous criminal who deserves a long prison sentence.”
“Conspiring to have a judge killed is not the way to avoid being prosecuted – now Mohammad will be held accountable for additional serious federal charges,” said Special Agent in Charge Anthony. “The FBI will continue to work with our partners to ensure the safety of those that uphold the rule of law. “
“Protecting the federal judiciary is our highest priority,” said U.S. Marshal Elliott. “This is an example where we were able to work with our law enforcement partners to protect a judge and bring charges against a dangerous individual.”
Mohammad is an Indian citizen who was an engineering student at Ohio State University between 2002 and 2004. He married a U.S. citizen in 2008. He and three other defendants – his brother, Ibrahim Mohammad, Asif Ahmed Salim, and Sultane Room Salim – were indicted by a federal grand jury in September 2015. The case against the remaining three defendants is pending. They have pleaded not guilty.
Mohammad admitted to conspiring with his co-defendants to travel to Yemen to provide thousands of dollars, equipment, and other assistance to Anwar Al-Awlaki, in an effort to support violent jihad against U.S. military personnel in Iraq, Afghanistan and throughout the world. Al-Awlaki was later designated as a global terrorist in 2010 and identified as a “key leader” of al-Qa’ida in the Arabian Peninsula, according to court documents.
On July 22, 2009, Mohammad travelled with two associates to Yemen to meet Awlaki and deliver the $22,000 that they had raised. Although they were unable to meet Awlaki in person, Mohammad and his associates did ensure that Awlaki received the money through a courier.
In addition to pleading guilty to conspiring to provide and conceal material support to terrorists, Mohammad also admitted to soliciting an undercover FBI employee (UCE), posing as a “hitman,” to kidnap and murder U.S. District Judge Jack Zouhary. In or about April 2016 – while the terrorism case was pending and assigned to Judge Zouhary – Mohammad told another inmate in the Lucas County Corrections Center in Toledo, Ohio that he wanted Zouhary kidnapped and murdered and that he was willing to pay $15,000 to have this carried out. The inmate provided Mohammad with the contact information for the UCE and stated that the UCE would need a $1,000 down payment before the murder could occur. The inmate also provided Mohammad with an agreed upon code to use when discussing the planned murder over the jail telephone.
On or about April 26, 2016, Mohammad called the UCE from the Lucas County Corrections Center. Using the agreed-upon code, Mohammad told the UCE he wanted to have Judge Zouhary killed. Mohammad agreed to provide the $1,000 down payment. When asked when he wanted the murder committed, Mohammad stated, “The sooner would be good, you know.” Over the ensuing days, Mohammad arranged to have a family member provide the $1,000 in cash to the UCE. On May 5, 2016, that family member met with the UCE and provided the UCE with $1,000 in cash. Mohammad later informed the inmate that the rest of the money for the murder was coming, according to court documents.
Under the terms of his plea agreement, Mohammad is expected to be sentenced to 27 ½ years in federal prison. Mohammad will be deported from the U.S. upon completion of his sentence, under the terms of his plea agreement.
The case is being prosecuted by Assistant U.S. Attorneys Michael Freeman, Matthew Shepherd and Christos N. Georgalis of the Northern District of Ohio, and Trial Attorneys Gregory Gonzalez and David Smith of the National Security Division’s Counterterrorism Section, following an investigation by the FBI.
Madera County Arrest Leads to 2-Year Prison Sentence for Alien in Possession of FirearmRead the Press Release
FRESNO, Calif. — Antonio Soria-Arellano (Soria), 44, a citizen of Mexico, was sentenced today to two years in prison for being an alien in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on February 23, 2017, Soria, an alien, was in possession of a Remington 870 Express, 12-gauge shotgun. According to the criminal complaint, law enforcement officers found Soria at an indoor marijuana cultivation operation in a residence in Madera County. Soria was the sole occupant of the residence and was in possession of the loaded shotgun and ammunition. On April 17, 2017, Soria pleaded guilty to being an alien in possession of a firearm.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Madera County Sheriff’s Office, and the Merced County District Attorney’s Office. Assistant U.S. Attorney Karen A. Escobar prosecuted the case.
Littlefield Man Pleads Guilty to Role in Methamphetamine Distribution ConspiracyRead the Press Release
LUBBOCK, Texas — Arnoldo Mendoza Lepez, 44, of Littlefield, Texas, appeared before U.S. Magistrate Judge D. Gordon Bryant, Jr. this afternoon and pleaded guilty to his role in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Lepez pleaded guilty to one count of possession with intent to distribute 500 grams or more of methamphetamine. He faces not less than 10 years and up to life in federal prison and a $10,000,000 fine. A sentencing date has not been set.
Co-defendants Joseph Raymond Jaramillo, Jr., 30, and Zahir Rivera-Pineda, 27, pleaded guilty earlier this month to their role in the conspiracy and are awaiting sentencing.
According to plea documents filed in the case, on May 5, 2017, New Mexico State Police stopped a vehicle being driven by Rivera-Pineda that was found to contain approximately 20 pounds of suspected methamphetamine near Albuquerque, New Mexico. Agents with Homeland Security Investigations (HSI) were able to determine that the methamphetamine was destined for a specific residence located in Littlefield, Texas. HSI agents coordinated with agents from the Lubbock County, Texas Sheriff’s Office (LCSO) and Drug Enforcement Administration (DEA) to complete the delivery of the methamphetamine to the residence in an attempt to identify the individuals receiving the narcotics.
Shortly after the methamphetamine was delivered to the residence in Littlefield, agents executed a search warrant. Inside the residence, agents located Jaramillo, Jr. and Lepez. Inside the room with Jaramillo and Lepez, agents located in plain view several of the bundles containing the methamphetamine that had just been delivered to the house. Inside a hidden compartment located in the closet of the same room, agents discovered the remainder of the bundles containing the recently delivered methamphetamine. Also in the room were two firearms. Agents also located several other firearms throughout the residence.
The methamphetamine located in the residence weighed a total of 8,833 grams.
The U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Drug Enforcement Administration, Lubbock County Sheriff’s Office, and New Mexico State Police are conducting the investigation. Assistant U.S. Attorney Sean Long is in charge of the prosecution.
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Lewisville Woman Pleads Guilty to the Operation of a Brothel in DallasRead the Press Release
DALLAS — Connie Su Moser, a/k/a “Vivian” and “Song Ye Hong,” 64, of Lewisville, Texas, appeared this afternoon before U.S. District Judge Jane J. Boyle and pleaded guilty to charges related to the operation of the Doll House massage parlor in Dallas, announced U.S. Attorney John Parker of the Northern District of Texas.
Moser pleaded guilty to one count of use of a facility of interstate commerce in aid of a racketeering enterprise and one count of misprision of a felony. She faces a maximum penalty of five years imprisonment and a $250,000 fine. Sentencing is scheduled for October 26, 2017.
Co-conspirator Kum Shugars, 68, pleaded guilty in June 2017 to one count of use of a facility of interstate commerce in aid of a racketeering enterprise and one count of misprision of a felony. Sentencing for Shugars is scheduled for October 12, 2017.
The other defendant charged in the case, Allen Nash, a/k/a “A-1,” 31, of Dallas, is charged with one count each of sex trafficking of children; transportation of a minor to engage in commercial sex acts; felon in possession of ammunition; sex trafficking through force, fraud or coercion and conspiracy to commit sex trafficking. Nash is scheduled to begin trial on July 17, 2017.
According to plea documents in Moser’s case, between June 1, 2012 and March 1, 2015, Moser engaged in a prostitution enterprise at the Doll House in Dallas, Texas. Moser purchased the Doll House from its previous owner in 2012. Moser would frequently visit the Doll House to pick up money and to check on her managers, including Shugars, as well as her employees. Moser was involved in hiring of the women that worked at the Doll House, and she knew that commercial sex acts were occurring regularly there. Various employees would post ads on the commercial sex website Backpage.com to locate customers for the Doll House, and customers would often respond to the ads either by calling to make an appointment or by walking into the spa. Clients would then arrange to come to the Doll House under the guise of receiving a '”body rub,” but in reality would pay for and receive commercial sex. The clients would pay an initial fee to the spa manager, and then the client would then be taken into a room by one of the female employees, where the commercial sex acts would occur. The employee would receive a “tip” once the commercial sex act had been performed, and the employee would pay a portion of this money back to the Doll House each day.
The Texas Department of Public Safety, U.S. Immigration and Customs Enforcement Homeland Security Investigations, Dallas Police Department, U.S. Postal Inspection Service and the Dallas County Sheriff’s Office – all members of the North Texas Trafficking Taskforce – are investigating the case. Assistant U.S. Attorney Cara Foos Pierce is in charge of the prosecution.
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Leader of Multi-State Drug Trafficking Organization to be Sentenced on WednesdayRead the Press Release
Columbia, South Carolina --- United States Attorney Beth Drake announced today that Eric Scott, age 40, will be sentenced on Wednesday, July 12th, at 10:00 A.M. The sentencing hearing will take place in the Clement F. Haynsworth Federal Building, 300 East Washington Street, Greenville, South Carolina, before the Honorable Timothy M. Cain, U.S. District Judge.
Assistant U.S. Attorney Andy Moorman, Deputy Narcotics Chief for the Narcotics Unit, was the lead prosecutor.
The Drug Enforcement Administration, the Internal Revenue Service Criminal Investigation Division, the Anderson County Sheriff’s Office, the Anderson Police Department, the Greenville County Sheriff’s Office, the Greenville Department of Public Safety, the Cherokee County Sheriff’s Office, the South Carolina Highway Patrol, the Richland County Sheriff’s Office, the South Carolina Law Enforcement Division, the Franklin County (GA) Sheriff’s Office, and the Douglas County (GA) Sheriff’s Office investigated the case.
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Lake Wales Man Indicted on Tax Fraud ChargesRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of an indictment charging Tedderick Fields charging him with three counts of filing false claims with the Internal Revenue Service, one count of wire fraud, and one count of aggravated identity theft in connection with income tax fraud. If convicted, he faces a maximum penalty of 20 years in federal prison for the wire fraud charge, with an additional two-year consecutive sentence for the aggravated identity theft charge. He also faces up to five years’ imprisonment on each of the false claim charges.
According to the indictment, Fields filed false tax returns in his name from 2011 through 2013, claiming a $400,000 refund in 2012. He also filed a false and unauthorized tax return claiming a fraudulent refund of $6,546 in the name of another individual and unlawfully used that individual’s personal identifying information to file a false tax return in his name.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Internal Revenue Service – Criminal Investigation. The St. Lucie County Sheriff’s Office assisted with the arrest. It will be prosecuted by Assistant United States Attorney Kelley Howard-Allen.
Lafayette Woman Sentenced in Opioid Pill Mill CaseRead the Press Release
DALLAS — Carolina Giselle Berrio, a/k/a “Carolina Slocum Berrio,” “Karrie,” 37, of Lafayette, Louisiana, was sentenced last week for her involvement in a “pill mill” operation, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Berrio was sentenced before U.S. District Judge Sidney A. Fitzwater to 78 months in federal prison. Berrio pleaded guilty in March 2017 to one count of conspiracy to distribute a controlled substance.
Twenty-four individuals were indicted by a federal grand jury in Dallas in February 2015 on offenses related to their participation in the prescription drug distribution conspiracy. That indictment alleged that from at least January 2013 through July 2014, the defendants participated in a scheme to illicitly obtain prescriptions for pain medications, such as oxycodone and hydrocodone, and then distribute those controlled substances for profit. As part of the conspiracy, individuals, often homeless or of limited means, were recruited and paid to pose as patients at medical clinics, including the McAllen Medical Clinic, to obtain prescriptions to fill those prescriptions at designated pharmacies.
Superseding indictments were returned in December 2015 and in January 2016, and a total of 27 individuals have now been convicted.
According to plea documents in Berrio’s case, on December 18, 2013, Berrio negotiated to purchase a quantity of oxycodone 30mg pills from co-conspirator Cornelius Robinson, her supplier. Robinson asked for a higher price to deliver the oxycodone to Berrio in Lafayette, Louisiana, and a lower price if Berrio picks up the pills in Houston. Robinson agreed to supply Berrio with oxycodone 30mg at $18.50 per pill, and Berrio agreed to pick up the pills in Houston, Texas. Berrio sought 300 oxycodone 30mg pills with the intent to distribute them at a later time. In addition, Berrio admits to purchasing additional quantities of oxycodone 30 mg pills from Robinson in both March and May of 2014 that she intended to distribute at a later time.
This Organized Crime Drug Enforcement Task Force (OCDETF) investigation is being conducted by the Drug Enforcement Administration, with assistance from the Internal Revenue Service Criminal Investigation, the Texas Department of Public Safety, the Louisiana State Police, the Grand Prairie Police Department, the Dallas Police Department, the Houston Police Department, the Arlington Police Department, the Greenville Police Department, the Parker County Sheriff’s Office, the U.S. Marshal’s Service, the U.S. Postal Inspection Service, and the Diplomatic Security Service.
Assistant U.S. Attorney Mary Walters is in charge of the prosecution.
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