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7 July 2017
Rapid City Man Sentenced for Possessing Child PornographyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Possession of Child Pornography was sentenced on July 5, 2017, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Eric Dill, age 42, was sentenced to 6½ years of imprisonment, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Dill was charged on November 3, 2015, and pleaded guilty on March 17, 2017. The conviction stems from Dill receiving and possessing child pornography from March 21 to April 8, 2015.
This case was investigated by the Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Dill was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on July 6, 2017, by U.S. District Judge Roberto A. Lange.
Trevor Red Bird, age 28, was sentenced to 14 months in prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Red Bird was indicted by a federal grand jury on March 15, 2017. He pled guilty on April 17, 2017.
Red Bird was convicted of Abusive Sexual Contact With a Minor in U.S. District Court in May 2008. As a result of this conviction, Red Bird is required to register as a sex offender. Between September 15, 2016, and November 8, 2016, Red Bird failed to reside at his registered address and did not properly update his sex offender registration, as required by law.
This case was investigated by the U.S. Marshals Service and the Rapid City Police Department. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Red Bird was immediately turned over to the custody of the U.S. Marshals Service.
Pleasants County residents indicted on methamphetamine chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA - Three St. Marys, West Virginia men were indicted by a federal grand jury on June 28, 2017 on methamphetamine distribution charges, Acting United States Attorney Betsy Steinfeld Jividen announced.
Glenn Edgor Pryor, age 60, was indicted on one count of “Conspiracy to Distribute Methamphetamine” and four counts of “Distribution of Methamphetamine.”
Dale Wesley Jenkins, Jr., also known as Buddy, age 56, was indicted on one count of “Conspiracy to Distribute Methamphetamine,” one count of “Distribution of Methamphetamine,” and two counts of “Distribution of Methamphetamine - Aiding and Abetting.”
Roger Dale Doehring, age 54, was indicted on one count of “Conspiracy to Distribute Methamphetamine” and two counts of “Distribution of Methamphetamine - Aiding and Abetting.”
The crimes are alleged to have taken place from July 2016 to December 2016 in Pleasants County, West Virginia.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The West Virginia State Police and the Pleasants County Sheriff’s Office are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Paterson Man Charged with Robbing Two Passaic County BanksRead the Press Release
NEWARK, N.J. – A Paterson, New Jersey, man appeared in federal court today to face charges that he recently robbed a TD Bank in Paterson, New Jersey, and an Investors Bank in Clifton, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
James M. Chestnut, 62, was arrested yesterday and charged by complaint with two counts of bank robbery. He appeared this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court and was detained.
According to the complaint:
On June 30, 2017, Chestnut allegedly entered a TD Bank in Paterson and handed a teller a note stating “Put 100s and 50s in the envelope. No dye pack.”
On July 5, 2017, Chestnut allegedly entered an Investors Bank in Clifton and approached a teller, this time while brandishing a firearm. He told the teller to “Open your drawer. Give me your money. All the 100s. Don’t call the cops or I’ll shoot you.”
Chestnut has two prior federal bank robbery convictions from 1996 and 2004.
The armed bank robbery count carries a maximum potential penalty of 25 years in prison. The unarmed bank robbery count carries a maximum potential penalty of 20 years in prison. Both counts carry a $250,000 fine, or twice the gross gain or loss from the offense.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, New Jersey, with the investigation. He also thanked the Paterson Police Department, under the direction of Director Jerry Speziale; the Saddle Brook Police Department, under the direction of Chief Robert Kugler; the Clifton Police Department, under the direction of Chief Mark Centurione; and the Passaic Police Department, under the direction of Chief Luis A. Guzman, for their assistance.
In addition, the investigation was aided by the FBI Violent Crime Task Force, which is comprised of law enforcement personnel from the Bergen County Prosecutor’s Office, the Passaic County Prosecutor’s Office, the Roxbury Police Department, the Paterson Police Department, and the N.J. State Police.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty
Defense counsel: Patrick McMahon Esq., Assistant Federal Public Defender, Newark
Owners of Bay Area Sushi Boat Restaurants Appear in Federal Court to Face Tax Fraud ChargesRead the Press Release
OAKLAND – Man Young Kim and Kyong Ja Kim, husband and wife, appeared in federal court today to face charges that they conspired to defraud the United States and committed related tax crimes, announced United States Attorney Brian J. Stretch and Michael T. Batdorf, Special Agent in Charge, Internal Revenue Service. The couple appeared before U.S. Magistrate Judge Kandis A. Westmore and were arraigned on charges related to three Bay Area sushi restaurants owned by the Kims, Sushi Boat Oakridge, Sushi Boat Valley Fair, and Sushi Boat Westgate.
A federal grand jury indicted the Kims on June 29, 2017. According to the indictment, Man Kim, 63, and Kyong Kim, 57, both of Dublin, Calif., each own 50 percent of the three sushi boat restaurants at issue and are alleged to have conspired to defraud the United States by failing to report income from the restaurants. The indictment describes an alleged scheme by which both defendants denied the existence of records related to daily income; then, after investigators sought computer records, Kyong Ja Kim allegedly hired a computer consultant to delete relevant data from the restaurants’ computer system. Both defendants are charged with conspiracy to defraud the United States, in violation of 18 U.S.C. § 371. In addition, Kyong Ja Kim is charged with preparing and filing false employment tax returns, in violation of 26 U.S.C. § 7206(2), and preparing and filing a false federal income tax return, in violation of 26 U.S.C. § 7206(1). In addition to the conspiracy charge, Man Young Kim is charged with three counts of filing false tax returns, in violation of 26 U.S.C. § 7206(l), and nine counts of willfully failing to collect, account for, and pay over to the IRS the federal income taxes, in violation of 26 U.S.C. § 7202.
Following today’s appearance, the defendants were released on bond. Defendants’ next court appearance is scheduled for August 31, 2017, at 2:00 p.m., before the Honorable Yvonne Gonzalez Rogers, U.S. District Court Judge.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted of the conspiracy charge, the defendants face a maximum sentence of five years in prison, a fine of $250,000, and restitution, if appropriate. In addition, Man Kim faces a maximum of three years of prison time, and a fine of $250,000, plus restitution for each violation of 26 U.S.C. § 7206(1) (filing false returns) and a maximum of 5 years of prison time, and a fine of $250,000, plus restitution for each violation of 26 U.S.C. § 7206(2) (willful failure to collect and pay over taxes). Kyong Kim faces a maximum of three years of prison time, and a fine of $250,000, plus restitution for each violation of 26 U.S.C. § 7206(2) (aiding and assisting in preparing false returns). However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Cynthia Stier is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service.
Owner and CFO of Debt Collection Company Sentenced to 7 ½ Years in Prison for Orchestrating $31 Million Debt Collection SchemeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that MAURICE SESSUM, the co-owner and chief financial officer of Four Star Resolution (“Four Star”), a Buffalo, New York-based debt collection company, was sentenced in Manhattan federal court to 90 months in prison for orchestrating a scheme to coerce thousands of victims across the country, through misrepresentations and false threats, into paying a total of more than $31 million to Four Star to resolve debts these victims purportedly owed. All 14 individuals charged in connection with the Four Star scheme have been convicted. SESSUM pled guilty on November 18, 2016, to conspiracy to commit wire fraud and wire fraud before U.S. District Court Judge Katherine Polk Failla, who also imposed today’s sentence.
Acting U.S. Attorney Kim said: “Maurice Sessum was a driving force behind the largest criminal debt collection scheme ever prosecuted. Using outrageous threats and blatant lies to take advantage of vulnerable Americans, Sessum and his co-conspirators defrauded victims out of $31 million. For victimizing others to enrich himself, Sessum will now serve a significant term in federal prison.”
According to the Indictment and other filings in Manhattan federal court, and statements made in connection with SESSUM’s sentencing and other court proceedings:
Between 2010 and February 2015, SESSUM was the co-owner, chief financial officer, and chief operating officer of the Four Star. In that capacity, SESSUM, together with his co-defendant and co-owner, Travell Thomas, oversaw four debt collection offices operated by Four Star in Buffalo as well as a team of managers and debt collectors. As part of the scheme, SESSUM and Travell Thomas falsely inflated the balances of debts owed by consumers in Four Star’s debt collection software so that debt collectors could collect more money from the victims than the victims actually owed.
As co-owner of Four Star, SESSUM approved debt collection scripts that contained a variety of misrepresentations and instructed his collectors to make those misrepresentations to consumers over the telephone. At the direction of SESSUM and Thomas, Four Star’s debt collectors, using a variety of aliases, attempted to trick and coerce thousands of victims throughout the United States into paying millions of dollars in consumer debts through a variety of false statements and false threats, including that: (1) Four Star was affiliated with local government and law enforcement agencies, including the “county” and the district attorney’s office; (2) the consumers had committed criminal acts, such as “wire fraud” or “check fraud,” and if they did not pay the debt immediately, warrants or other process would be issued, at which point they would be arrested or hauled into court; (3) the victims would have their driver’s licenses suspended if they did not pay their debts immediately; (4) Four Star was a law firm or mediation firm and that Four Star’s employees were working with lawyers, a law firm, mediators, or arbitrators; and (5) a civil lawsuit would be filed, or was pending, against the victims for failing to pay their debts. SESSUM and Thomas also approved an abusive and coercive “mailing campaign,” in which Four Star sent mailers to victims across the country that purported to be from courts and government agencies.
In total, from about January 2010 through November 2014, Four Star collected more than $31 million from thousands of victims across the United States. Of the money that Four Star took in from victims, millions of dollars were paid in cash to SESSUM and Thomas, and hundreds of thousands of dollars were used to pay for SESSUM’s personal expenses, including for gambling and season tickets for professional sports games.
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In addition to his prison term, SESSUM, 40, of Buffalo, New York, was sentenced to three years of supervised release, and ordered to forfeit $31 million.
In total, 14 individuals associated with Four Star have been charged and pled guilty to defrauding consumers as part of this debt collection scheme. In addition to SESSUM, co-owner and chief executive officer Travell Thomas, managers Jimmy Stokes, Tacoby Thomas, Heather Gasta, Mark Lavin, and John Salatino, and debt collectors Anthony Caba, Jessica Mann, Charles Starks, William Clark, Columbus Simmons, Michael Calandra, and Jennifer Sherk each pled guilty to conspiracy to commit wire fraud and wire fraud for their roles in the scheme.
Travell Thomas, Tacoby Thomas, Starks, Caba, Clark, Simmonds, Calandra, and Mann were sentenced by Judge Failla to prison terms of 100 months, 70 months, 37 months, 36 months, 30 months, 28 months, 15 months, and one year and one day, respectively. The sentencing of the other defendants who have pled guilty is pending.
Mr. Kim praised the efforts of the Office’s Criminal Investigators, who led the investigation of this matter. Mr. Kim also thanked the Federal Trade Commission for referring the case and for its assistance.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Edward A. Imperatore, Jennifer L. Beidel, and Jordan L. Estes are in charge of the prosecution.
Omaha, Nebraska Man Arrested for Threats to Public OfficialRead the Press Release
COUNCIL BLUFFS, IA - On July 7, 2017, Robert William Simet, 64, of Omaha, Nebraska, was arrested for making threats against United States Senator Joni Ernst. A charge is merely an accusation and Simet is presumed innocent unless and until proven guilty beyond a reasonable doubt. The Federal Bureau of Investigation is investigating this matter.
No other information or comments will be released until documents have been filed with the court as part of the public record.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Oklahoma City Mother and Son Sentenced to Prison for $770,000 Fraud Against MedicaidRead the Press Release
Oklahoma City, Oklahoma – DEBORAH A. GRAY, 51, and KEITH B. GRAY, II, 27, both of Oklahoma City, were sentenced to prison this week by United States District Judge David L. Russell for submitting false claims to Medicaid for behavioral health counseling, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma, and Mike Hunter, Attorney General for the State of Oklahoma. Deborah Gray, who was sentenced on Thursday, will serve 37 months in federal prison. Keith Gray, who was sentenced today, will serve 12 months and one day in federal prison. Both will serve three years of supervised release after imprisonment. The Court also ordered the Grays to pay $769,578.38 in restitution to Medicaid.
On July 6, 2016, the Grays were indicted on 151 counts of health care fraud. The indictment alleged that from October 2011 through May 2014, Deborah Gray owned and operated DAG Counseling Services, PLLC, which held itself out as providing behavioral health counseling services to Medicaid-eligible children. Keith Gray was a DAG Counseling employee. According to the indictment, the Grays devised and executed three schemes to defraud Medicaid through DAG Counseling. First, they caused to be submitted to Medicaid claims for "targeted case management services" for periods when children were actually being transported between home or school and the DAG Counseling offices, in violation of Medicaid regulations. Second, they submitted or caused to be submitted to Medicaid claims for one-on-one "psychosocial rehabilitation services" that exceeded the billing maximum of 90 minutes per child per day, also in violation of Medicaid regulations. Finally, they submitted or caused to be submitted to Medicaid claims for one-on-one "psychosocial rehabilitation services" that (a) were not actually provided, (b) were actually provided in groups of two or more children, or (c) were provided for less time than was billed to Medicaid.
Both defendants pled guilty on January 4, 2017, to one count of executing each of the three schemes.
"I commend and appreciate the work of our Medicaid Fraud unit, the FBI, and the United States Attorney," stated Oklahoma Attorney General Mike Hunter. "The sentences in this case should send a message that fraud against our children and our taxpayers will not be tolerated."
Reference is made to the indictment and other public filings for further information.
Medicaid is funded jointly by the federal government and the State of Oklahoma and administered by the Oklahoma Health Care Authority. This case is the result of a cooperative federal and state investigation by the Federal Bureau of Investigation and the Oklahoma Attorney General’s Office’s Medicaid Fraud Control Unit. It was prosecuted by Assistant U.S. Attorney Amanda Maxfield Green and Oklahoma Assistant Attorney General Lory Dewey.
Ocean Springs Man Sentenced for Producing, Transporting, Distributing and Possessing Child PornographyRead the Press Release
Gulfport, Miss. – Philip Joseph Spear, 60, of Ocean Springs, Mississippi, was sentenced on July 6, 2017, by Chief U.S. District Judge Louis Guirola, Jr., to 160 years (1920 months) in federal prison followed by a lifetime of supervised release for producing, transporting, distributing, and possessing child pornography, announced Acting U.S. Attorney Harold Brittain, FBI Jackson Division Special Agent in Charge Christopher Freeze and Mississippi Attorney General Jim Hood. Spear was also ordered to pay $47,500 in restitution to victims, and a special assessment of $30,000 for a related crime under the Justice for Victims of Trafficking Act.
In September, 2016, a federal search warrant was executed at Spear’s residence in Ocean Springs. Electronic devices including computers, hard drives, a digital camera, a media card and an iPad were seized. A forensic examination revealed illegal images and videos of minors engaging in sexually explicit conduct.
Spear pled guilty on March 9, 2017, to a six count Bill of Information charging him with producing, transporting into the United States, distributing and possessing child pornography. His victims ranged in age from infant to 16 years old.
"A principle part of the FBI’s mission is to protect the American people, and we are especially dedicated to the most vulnerable among us – children," said Christopher Freeze, Special Agent in Charge of the FBI in Mississippi. "Phillip Spear despicably violated the human rights of children and stole their innocence. We hope his sentencing of 1,920 months in federal prison sends a strong warning and clear message to others who take part in unspeakable crimes against children."
"This man is exactly where he deserves to be—behind bars for the rest of his life," said General Hood. "His disgusting actions have no place in Mississippi, or anywhere else, and our child exploitation task force and agency partners take their responsibility seriously to get sick predators far away from our innocent children. I am very pleased with the work of all those involved in this case."
The case was investigated by the FBI Jackson Division’s Child Exploitation Task Force, which is made up of agents from the FBI and the Mississippi Attorney General’s Office, deputies from the Prentiss County Sheriff’s Office and prosecutors from the United States Attorney’s Offices in Oxford and Jackson. Assistant United States Attorneys Andrea Jones and Glenda Haynes prosecuted the case for the government.
Northampton Man Sentenced to 48 Months’ Imprisonment for Theft at Delaware Water GapRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on July 6, 2017, United States District Judge Robert D. Mariani sentenced Lewis Davenport, age 40, to 48 months’ imprisonment and a two-year term of supervised release, for conspiring to commit theft on federal land, and for committing aggravated identity theft.
According to United States Attorney Bruce D. Brandler, Davenport and other individuals broke into unoccupied automobiles located in the Delaware Water Gap National Recreation Area. Davenport admitted that he and his conspirators stole electronics, cellular phones, credit cards and other items from the automobiles, and used the stolen credit cards at various retail businesses in Bartonsville and in Easton, Pennsylvania.
In pronouncing the sentence, Judge Mariani emphasized Davenport’s extensive criminal history, which included 19 convictions involving theft- and credit card fraud-related activities. Judge Mariani also imposed a $1,174.89 order of restitution as part of Davenport’s sentence.
The investigation was conducted by the National Park Service Rangers. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
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New York Man Sentenced to 5 Years in Federal Prison for Role in Southeastern Connecticut Drug RingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that QUADON CHAMBERS, also known as “DVD,” 30, of Queens N.Y., was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 60 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine.
This matter stems from a long-term investigation headed by the Connecticut State Police Statewide Narcotics Task Force East and U.S. Drug Enforcement Administration into the large-scale distribution of narcotics in southeastern Connecticut. The investigation revealed that Sydney Jackson, also known as “Fatz,” and others regularly acquired kilogram quantities of cocaine and heroin from sources in New York and transported the drugs to southeastern Connecticut. Much of the cocaine was converted to crack cocaine by Jackson in Connecticut, and the drugs were distributed through a network of dealers in Groton, Norwich, New London, Stonington, Westerly, R.I. and the surrounding area.
The investigation further revealed that John King, also known as “Soy,” of Queens, used an apartment on East Main Street in Norwich to store, process and package narcotics for street sale. CHAMBERS was arrested on April 28, 2015, after law enforcement officers made entry into the apartment and found him weighing and packaging narcotics for distribution. Officers seized approximately 150 grams of crack cocaine and approximately 80 grams of heroin from the apartment, and approximately $4,000 in cash from CHAMBERS’ person. Officers also searched a vehicle that was parked outside of the stash house and seized a kilogram of cocaine. The car was registered to John King.
On November 24, 2015, a federal grand jury in Hartford returned a 35-count superseding indictment charging CHAMBERS, Jackson, King and 10 other defendants with various narcotics trafficking and firearm offenses. In addition, approximately 20 individuals were prosecuted on related state charges.
CHAMBERS has been detained since his arrest. On November 4, 2016, he pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, 28 grams or more of cocaine base (“crack”).
On October 27, 2016, Jackson pleaded guilty to one count of conspiracy to distribute 280 grams or more of cocaine base (“crack cocaine”). On February 16, 2017, he was sentenced to 10 years of imprisonment.
King has pleaded guilty and awaits sentencing.
This matter has been investigated by the Connecticut State Police Statewide Narcotics Task Force East, U.S. Drug Enforcement Administration, Homeland Security Investigations, U.S. Marshals Service, Connecticut Department of Correction and Groton City, Groton Town, New London, Norwich and Waterford Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Dave Vatti and Joseph Vizcarrondo, with the assistance of Senior Assistant State’s Attorneys Paul Narducci and David Smith of the State’s Attorney’s Office for the Judicial District of New London.
Mobridge Man Sentenced for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mobridge, South Dakota, man convicted of Assault Resulting in Substantial Bodily Injury to an Intimate Partner was sentenced on July 6, 2017, by U.S. District Judge Roberto A. Lange.
Tracy Peters, age 51, was sentenced to 6 months in custody, followed by 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Peters was indicted by a federal grand jury on November 9, 2016. He pled guilty on April 17, 2017.
The conviction stems from an incident on November 3, 2016. Tracy Peters went with his girlfriend to the Legion Club and the Golden Rule Bar in Eagle Butte to drink and socialize. Both of them became extremely intoxicated. After leaving the bar, they returned to the Cheyenne River Motel where Peters was living. The two of them began arguing before they got back to the motel. While she was still in the car, Peters struck the victim in the face. The victim sustained substantial cuts to her face that required stitches.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Peters was immediately turned over to the custody of the U.S. Marshals Service.
Mobridge Man Sentenced for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mobridge, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on July 5, 2017, by U.S. District Judge Charles B. Kornmann.
Richard Cadotte, age 55, was sentenced to 34 months in custody, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Restitution is being left open for 90 days.
Cadotte was indicted by a federal grand jury on October 14, 2015. He filed a Petition to Plead Guilty on October 26, 2016.
The conviction stems from an incident on September 19, 2015, when the victim was driving a tan vehicle down the water tower road near Wakpala, South Dakota, and struck a cow. As the victim was exiting his vehicle, Cadotte approached the scene, driving an older model blue car. The victim began to approach the vehicle and Cadotte stepped out, but then got right back into his vehicle. The victim then approached Cadotte’s car, jumped on the hood, and began to strike the windshield. Cadotte drove away, trying to shake the victim off the vehicle.
The victim fell from the vehicle, got back on his feet and began to return to his own vehicle. Cadotte turned around in his vehicle and accelerated towards the victim, striking him with the front of the vehicle. The victim flipped through the air, landing on the road way. Cadotte then proceeded to a near-by residence, dropped someone off, and left the area. A witness drug the victim off the road, fearing Cadotte intended to run him over again.
A sergeant and a patrol officer inspected the outside of the blue car, which had been stopped previously. A red substance was observed on the front grill, drivers head lights, windshield, and roof of the car.
As a result of this incident, the victim suffered two broken legs.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Cadotte has been allowed to self-report to the custody of the U.S. Marshals Service by July 25, 2017.
Mission Man Sentenced for Drug PossessionRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Possession of a Controlled Substance was sentenced on June 27, 2017, by U.S. District Judge Roberto A. Lange.
Jeremy Joseph Douville, age 21, was sentenced to 6 months in custody with credit for time served, 1 year of supervised release, forfeiture of $2,281.91, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $25.
Douville was indicted by a federal grand jury on December 20, 2016. He pled guilty on May 3, 2017.
On December 6, 2016, Douville, knowingly and intentionally possessed marijuana, a Schedule I controlled Substance, in South Dakota.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Douville was released following sentencing.
Miami Resident Sentenced to 30 Years in Prison for Sex TraffickingRead the Press Release
A Miami resident was sentenced to thirty years in prison for sex trafficking six Cuban victims.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office, Rodolfo Llanes, Chief, City of Miami Police Department (MPD), and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.
Silvio Clark Morales, 31, originally of Cuba, pleaded guilty before U.S. District Judge Jose E. Martinez, in April 2017, to six counts of sex trafficking by force, threats of force, fraud, and coercion, in violation of Title 18, United States Code, Section 1591(a)(1), and one count of conspiracy to encourage and induce illegal aliens to reside in the United States, in violation of Title 8, United States Code, Section 1324(a)(1)(A)(v)(I). Judge Martinez sentenced Morales today to three hundred and sixty months in prison. Morales has also been ordered to pay restitution to his sex trafficking victims.
According to court records, Morales tricked at least six victims to travel from Cuba to the United States, via Mexico, and work as “dancers.” According to the victims, there was never any indication that they would be dancing naked or performing any commercial sex acts until they arrived in Miami and Morales told them to work at various strip clubs throughout Miami and as prostitutes. When the victims protested, Morales threatened them, physically assaulted them, kept them in debt bondage, and threatened their families. He also routinely kept a close watch on the victims and constantly brandished a firearm to keep them in compliance with his wishes. On one occasion, Morales drove one of the victims to an isolated bridge near the Everglades, beat her, and told her that he was going to throw her into the swamp and let the alligators eat her, before throwing her in the trunk of his car.
Together with Homeland Security Investigations, the United States Attorney’s Office for the Southern District of Florida leads the South Florida Human Trafficking Task Force, which works to increase public awareness, rescue victims, and prosecute traffickers. The task force is composed of not only federal agencies but also state and local law enforcement entities, and partners with non-law enforcement entities, such as service providers, victim advocates, faith-based organizations, academic representatives, and community members.
Mr. Greenberg commended the investigative efforts of ICE-HSI, MPD and MDPD. The case was prosecuted by Assistant U.S. Attorney Benjamin Widlanski.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican National Heads to Federal Prison for Smuggling Meth and HeroinRead the Press Release
LAREDO, Texas – A 48-year-old man from Monterrey, Nuevo Leon, Mexico, has been sentenced for conspiracy to import crystal methamphetamine and brown heroin, announced Acting U.S. Attorney Abe Martinez. Genaro Garcia-Gutierrez pleaded guilty Nov. 1, 2016.
Today, U.S. District Judge George P. Kazen ordered him to prison for 150 months. Not a U.S. citizen, he is expected to face deportation proceedings following his release.
On July 20, 2016, Garcia-Gutierrez took part in a conspiracy to smuggle 5.22 kilograms of crystal methamphetamine and 1.7 kilograms of brown heroin through the Lincoln-Juarez International Bridge in Laredo. He was driving a 2008 Dodge Nitro with Mexican license plates. Authorities soon discovered 10 packages containing the crystal methamphetamine and four packages with the brown heroin in the rear passenger quarter panel of the vehicle.
Garcia-Gutierrez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney José Angel Flores Jr. prosecuted the case.
Member of Trenton Drug Trafficking Organization Sentenced to Six Years in PrisonRead the Press Release
TRENTON, N.J. – A Trenton man was sentenced today to 72 months in prison for his role in a drug trafficking organization that allegedly distributed hundreds of grams of heroin in Trenton and the surrounding areas, Acting U.S. Attorney William E. Fitzpatrick announced today.
Keith Hunter, a/k/a “Meech,” 24, previously pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. As part of his guilty plea, Hunter also admitted possessing at least one firearm during the conspiracy.
In December 2016, Hunter and nine other members of a drug trafficking organization operating in Trenton were charged by criminal complaint with conspiracy to distribute heroin. The complaint referred to the drug trafficking organization as the “Abdullah DTO,” after its alleged leader, Ishmael Abdullah.
According to documents filed in this case and statements made in court:
From June 2015 through December 2016, Hunter and others engaged in a drug trafficking organization that operated in the area of Spring and Passaic streets in Trenton. Through the authorized interception of telephone calls and text messages, controlled purchases of heroin, the use of confidential sources of information, and other investigative means, law enforcement learned that defendant Ishmael Abdullah was a leader of the Abdullah DTO and was responsible for obtaining significant quantities of heroin from multiple suppliers, including from defendants Jose Joaquin Torres-Mezquita and Ileana Sanchez. Abdullah and Hunter coordinated the organization’s distribution of heroin through themselves and other conspirators. Members of the Abdullah DTO used temporary prepaid phones, stash houses and cars, and spoke in code to avoid detection by law enforcement. In connection with their narcotics conspiracy, Hunter and other members of the Abdullah DTO maintained joint access to multiple firearms.
In addition to the prison term, Judge Wolfson sentenced Hunter to four years of supervised release.
Acting U.S. Attorney Fitzpatrick credited agents and officers with the Greater Trenton Safe Streets Task Force, including special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Newark Division, Trenton Satellite Office, under the direction of Acting Special Agent in Charge Lawrence J. Panetta; officers of the Trenton Police Department, under the direction of Director Ernest Parrey Jr.; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; and detectives of the Mercer County Prosecutor’s Office, under the direction of Mercer County Prosecutor Angelo J. Onofri, with the investigation.
He also thanked special agents of the FBI’s Philadelphia Field Office, under the direction of Special Agent in Charge Michael Harpster; special agents of Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola; officers of the New Jersey State Police, under the direction of Superintendent Col. Joseph R. Fuentes; and officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler, for their assistance in the case.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations against the remaining defendants are merely accusations and those defendants are presumed innocent unless and until proven guilty.
Defense counsel: Robert J. Haney Esq., Princeton, New Jersey
Lubbock Woman Sentenced for Her Role in Fentanyl Distribution ConspiracyRead the Press Release
LUBBOCK, Texas — Jessica Christine Holl, 29, of Lubbock, Texas, was sentenced this morning before Senior U.S. District Judge Sam R. Cummings to 210 months in federal prison for her role in a conspiracy to distribute fentanyl, announced U.S. Attorney John Parker of the Northern District of Texas.
Holl pleaded guilty in March 2017 to one count of conspiracy to distribute and possess with intent to distribute fentanyl and furanyl fentanyl.
Co-defendants Sidney Caleb Lanier, 36, and Jamie Marie Robertson, 32, both of Lubbock, Texas, were both sentenced on June 9, 2017. Lanier was sentenced to 135 months in federal prison following his guilty plea in February 2017 to one count of conspiracy to distribute and possess with intent to distribute fentanyl. Robertson was sentenced to 48 months in federal prison following her guilty plea also in February 2017 to one count of unlawful use of a communications facility.
The defendants have been in custody since their arrest in October 2016 following a law enforcement operation led by Lubbock Police Department and special agents with the Drug Enforcement Administration focused on the distribution in the Lubbock area of the highly potent synthetic opioid, fentanyl.
“Fentanyl is responsible for a sharp increase in overdoses and deaths across the country and poses a very high risk of death to not only users, but law enforcement and first responders as well,” said U.S. Attorney Parker. “Our local, state and federal partners will continue to push back hard on those who peddle this poison in our communities.”
While fentanyl can serve as a direct substitute for heroin in opioid-dependent individuals, it is a dangerous substitute as it is 50 times more potent than heroin and results in frequent overdoses that can lead to respiratory depression and death. Cheaper than heroin, fentanyl can be ingested, inhaled or absorbed through the skin; just a few milligrams, equivalent to a few grains of table salt, may be deadly.
According to documents filed in this case, from approximately January 2013 to October 27, 2016, Lanier, Holl, and Robertson did knowingly and intentionally combine, conspire, confederate and agree with each other to intentionally distribute and possess with intent to distribute a mixture and substance containing a detectable amount of fentanyl, a Schedule II controlled substance. Lanier supplied Holl and Robertson with large amounts of Fentanyl he purchased online on the Darknet from China using Bitcoin, a digital currency. The Fentanyl was shipped to various addresses in the Lubbock area, prepared by the defendants and sold for use.
The case was investigated by the Lubbock Police Department and the Drug Enforcement Administration. Assistant U.S. Attorney Jeff Haag is in charge of the prosecution.
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Lincoln Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Robert C. Stuart announced that on July 7, 2017, Nicole Lynn Mount, 34, of Lincoln, was sentenced to 10 years (120 months) in prison for conspiracy to distribute and possess with the intent to distribute a mixture or substance containing methamphetamine. Following the prison term, Mount will serve five years on supervised release.
Information provided to law enforcement indicated that between June of 2014 and July of 2016, Mount was responsible for the distribution of at least 500 grams (approximately 18 ounces) of methamphetamine in the Lincoln area. In March of 2016, Mount and an associate were contacted by the Lincoln Police Department, and they were found in possession of a total of approximately 3 ⅔ ounces of methamphetamine.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Leader of Brooklyn Sex Trafficking Ring Sentenced to 15 Years in PrisonRead the Press Release
Earlier today in federal court in Brooklyn, Brian Adams, leader of a Brooklyn-based sex trafficking ring, was sentenced to 15 years’ imprisonment and 10 years’ supervised release by United States District Judge Jack B. Weinstein, based on his guilty plea last February to sex trafficking young women in Brooklyn. He was also ordered to pay restitution in the amount of $10,500 to the victim identified in the indictment as Jane Doe #4.
The sentence was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
Beginning in 2004, the defendant trafficked and attempted to traffic numerous young women and girls, some as young as 12-years-old, for sex with adult men in Brooklyn. The defendant arranged sex dates for these young women and girls, and had them attend sex parties. The defendant ran the prostitution business from his home in the Brooklyn neighborhood of Bedford-Stuyvesant, where many of these young women lived while they worked for him. He also subjected one of the young women, Jane Doe #1, to violence, forcing her to prostitute herself, and directed one of his workers to use Facebook to solicit underage women for the defendant’s sex parties, where adult men would pay the underage women for sex.
"The defendant’s conduct severely harmed numerous young women and girls, some of whom were still in middle school when preyed upon by the defendant and his co-conspirators. “This prosecution and sentence demonstrate that those who seek to profit from the sexual exploitation of others will be held accountable,” stated Acting United States Attorney Rohde.
“It defies explanation why men knowingly seek out girls as young as 12-years-old for sex, but the subject in this case knew he could make money offering up a service that attracts a vile clientele,” Assistant Director-in-Charge Sweeney stated. “He forced his young victims into a world most adults wouldn’t be able to cope with physically, or mentally. We won’t stop going after each and every criminal who exploits children and uses them for their own selfish profits.”
At sentencing, Jane Doe #1 recounted in a written statement that the defendant forced her to have sex beginning when she was 14-years-old, physically abused her, and threatened to have her and her family deported. Because of this abuse, Jane Doe # 1 stated, “I have tried to kill myself, and if it were not for my children I would continue to try. I am in therapy and can’t foresee the day I will be able to do without therapy.” She concluded, “Yet, I don’t want Mr. Adams to think he broke me. I try every day to become stronger. He will not win by having me destroyed for my entire life. I try each day to be stronger and to become the great mother that I know I can be. He tried to kill me in so many ways every day but I refuse to let that happen to me.”
The government’s case is being handled by the Office’s Civil Rights Section. Assistant United States Attorneys Michael P. Robotti and Hiral D. Mehta are in charge of the prosecution.
The Defendant:
BRIAN ADAMS
Age: 35
Brooklyn, New York
E.D.N.Y. Docket No. 14-CR-650
Lake Andes Man Charged in Two Indictments with Sexual Abuse of Two Children Appears in Federal CourtRead the Press Release
United States Attorney Randolph J. Seiler announced that a Lake Andes, South Dakota, man has been charged in two separate indictments by a federal grand jury for Aggravated Sexual Abuse of a Child, Abusive Sexual Contact of a Child, and Felony Child Abuse and Neglect.
Wendell Clark Archambeau, Jr., age 36, was indicted on July 6, 2017. He appeared before U.S. Magistrate Judge Veronica L. Duffy and pled not guilty to the Indictments.
For each of the sexual abuse charges, the maximum penalty upon conviction is up to life imprisonment, and/or a $250,000 fine, 5 years and up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered. Because the felony child abuse and neglect charges involve victims who were different ages, the maximum penalty is 10 years in one case and 15 years in the other.
According to the first Indictment, between the winter and spring months of 2016, Archambeau engaged in a sexual act with a child under twelve years old. He also engaged in abusing the same child.
According to the second indictment, Archambeau engaged in two instances of sexual contact with a child under twelve years old. This conduct took place in 2013. He also engaged in abusing the same child.
The charges are merely accusations and Archambeau is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Yankton Sioux Tribe’s Law Enforcement. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Archambeau was ordered detained pending trial. A trial date relating to the first indictment has been set for August 1, 2017. A trial date regarding the second indictment has been set for September 12, 2017.
Hyattsville Man Pleads Guilty to Federal Charges Related to A FirebombingRead the Press Release
July 7, 2017
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – On July 6, 2017, Richard Butler III, age 35, of Hyattsville, Maryland, pled guilty in federal court to being a felon in possession of explosives and malicious use of explosive materials.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Prince George’s County Fire/EMS Chief Marc S. Bashoor.
According to the plea agreement, on or about March 4, 2016, at approximately 3:25 a.m., the Prince George’s County Fire Department (PGFD) responded to the Overland Garden Apartments in Landover, Maryland for an automated general fire alarm. PGFD personnel arrived on scene and subsequently located the remnants of a fire in the master bedroom.
Fire investigators arrived on scene and conducted an investigation inside and around the apartment. Investigators located a concrete brick inside the master bedroom on the floor between the bed and window. Investigators located, in close proximity to the brick, an improvised incendiary device,—specifically, a clear plastic water bottle, which contained an unknown liquid, and a brown paper towel material protruding from the mouth of the bottle. Investigators also located a similar plastic bottle melted to the top of the burned bed. On the exterior of the apartment, in close proximity to the broken master bedroom window, investigators located a blue plastic one-quart motor oil container. The three bottles were submitted to the ATF Forensic Science Laboratory for examination and were found to contain the presence of gasoline.
At the time of the incident, two adults and three minors were inside the apartment.
Surveillance video recordings revealed that at approximately 2:27 a.m. on March 4, 2016, an individual matching the description of Butler walking into a local gas station where he purchased the gasoline and filled three plastic containers.
According to his plea agreement, Butler had previously sustained a conviction for an offense punishable by more than one year of imprisonment, which made him ineligible to possess destructive devices.
Acting United States Attorney Stephen M. Schenning commended the ATF and Prince George’s County Fire/EMS Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Jennifer Sykes and Thomas Sullivan who prosecuted the case.
Hutchins Man Sentenced to 80 Years in Federal Prison for Production of Child PornographyRead the Press Release
FORT WORTH, Texas — Robert Dion Ables, 40, of Hutchins, Texas, was sentenced this morning by U.S. District Judge John McBryde to 960 months in federal prison, following his guilty plea in March 2017 to one count of receipt of child pornography and two counts of production of child pornography. Today’s announcement was made by U.S. Attorney John Parker of the Northern District of Texas.
Ables has been in custody since his arrest in December 2016 on a related federal criminal complaint.
“The sexual victimization and exploitation of these young girls is profoundly sad,” said U.S. Attorney Parker. “It is also, obviously, a serious crime for which the penalties are justifiably significant.”
According to documents filed in the case, in December 2016, U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) agents conducting a child pornography investigation served a search warrant at Ables’ residence in Hutchins, Texas. Ables acknowledged that, beginning in 2014, while he was living in the Fort Worth and Arlington area, he used social media applications such as Kik messenger on his phone to initiate contact with minor females. During his conversations, Ables convinced these females to send nude photographs of themselves.
At times Ables would coerce these females to send additional sexually explicit images by threatening to expose the female’s pictures on social media such as Facebook.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and The Royal Canadian Mounted Police, Saskatchewan Internet Child Exploitation Unit (ICE) were in charge of the international investigation. Assistant U.S. Attorney A. Saleem prosecuted.
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Houston Woman Charged with Defrauding Sugar Land MissionRead the Press Release
HOUSTON – A 38-year-old resident of Houston has been arrested in connection with the submission of falsified funds requests to an investment adviser for the Basilian Father’s Missions of the Catholic Church (BFM), announced Acting United States Attorney Abe Martinez.
A grand jury returned a sealed indictment against Rosina K. Blanco aka Rosina Aviles on June 29, 2017, charging her with eight counts of wire fraud. The indictment was unsealed upon her arrest by federal authorities today. She is expected to make her initial appearance before U.S. Magistrate Frances Stacy at 2:00 p.m.
The BFM is headquartered in Sugar Land and raises money in North America to support schools in Mexico and Colombia. It reports to the Congregation of St. Basil, an order of Catholic priests headquartered in Toronto, Canada. The BFM receives funding from several sources to include the Congregation of St. Basil in Canada, individual mail solicitations and mission offerings.
The indictment alleges that on Aug. 31, 2015, Blanco was hired to be the bookkeeper for the BFM. She allegedly then caused more than $1 million in unauthorized transfers from BFM accounts to accounts in her name. Blanco accomplished the theft by using a computer to transmit fraudulent and falsified funds transfer requests from the Southern District of Texas to the BFM investment manager in St. Louis who then unwittingly transferred more than $1 million in BFM funds, according to the charges.
From September 2015 to October 2016, Blanco facilitated the transfer of approximately $1,107,425 from BFM accounts to her personal accounts without authorization, according to the indictment. Blanco allegedly used the majority of these funds for personal expenses such as jewelry, furniture, luxury cars, real estate, Louis Vuitton handbags, goods and services for her dog and other luxury items.
The FBI conducted the investigation. Assistant U.S. Attorney Belinda Beek is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Harrison Pleads Guilty to Carjacking, Kidnapping; Crimes Resulted in the Death of another PersonRead the Press Release
SALT LAKE CITY – Dereck James Harrison, age 23, currently incarcerated at the Utah State Prison, pleaded guilty to one count of carjacking and one count of kidnapping in U.S. District Court in Salt Lake City Thursday afternoon. The two crimes resulted in the March 12, 2016, death of an individual identified in charging documents as K.P.R. U.S. District Judge Robert J. Shelby sentenced Harrison to life in federal prison following the convictions.
Harrison, who was charged by Felony Information in June, was arraigned on the charges contained in the Information earlier Thursday afternoon by U.S. Magistrate Judge Brooke C. Wells.
As a part of the plea hearing, Harrison stipulated to facts describing his conduct during the carjacking and kidnapping. He admitted that on May 12, 2016, he and his father, Flint Harrison, took a truck from K.R.R., an employee of the Utah Transit Authority, after violently assaulting the victim. He further admitted that when he and his father took the truck, his father intended to cause serious bodily harm or death to K.P.R. Harrison admitted he aided and abetted his father in the assault.
Harrison admitted that after carjacking the truck, he and his father abducted K.P.R. and transported him across state lines from Salt Lake City to Wyoming, where Harrison admitted that K.P.R. was killed by his father. Harrison again admitted that he aided and abetted his father in killing K.P.R.
Federal prosecutors had concurrent jurisdiction in the case with Salt Lake County, Utah, and Lincoln County, Wyoming. As a part of the plea agreement federal prosecutors reached with Harrison, they agreed to recommend Harrison’s federal sentence run concurrently with the sentence he received in Wyoming and one he is currently serving as a result of a conviction in Utah’s Second Judicial Court in Farmington. Harrison will finish the sentence he is currently serving at the Utah State Prison before being transferred to Wyoming or federal prison.
“The crimes of carjacking and kidnapping committed in this case are very serious federal crimes. The victim, killed during the commission of these crimes, was a resident of Utah. The crimes occurred in Salt Lake County. Although Harrison was prosecuted in Wyoming, it was important to my office and the Salt Lake District Attorney’s Office that Utah’s interests in this case be vindicated. This guilty plea and the mandatory life sentence imposed resolve Utah’s interest. We have done our part to hold Mr. Harrison accountable for his actions in Utah,” U.S. Attorney John W. Huber said today.
“We also had a strong federal interest in the case because it involved the extensive use of federal investigative resources, including resources of the FBI and the U.S. Marshals Service,” Huber said.
Harrison County man sentenced for cocaine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Ruben L. Aguilar, 29, of Clarksburg, West Virginia, was sentenced today to 30 months incarceration for cocaine distribution, Acting United States Attorney Betsy Steinfeld Jividen announced.
Aguilar pled guilty to one count of “Conspiracy to Distribute Cocaine Base” in February 2017. Aguilar distributed cocaine in Harrison County in March 2016.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Greater Harrison Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Irene M. Keeley presided.
Harker Heights Man Sent to Prison for Attempting to Entice a Minor via CraigslistRead the Press Release
LAREDO, Texas – A 49-year-old resident of Harker Heights has been ordered to federal prison for attempting to entice a minor to engage in unlawful sexual activity, announced Acting U.S. Attorney Abe Martinez. Alton Zerie Brister pleaded guilty March 31, 2017.
Today, U.S. District Judge George P. Kazen handed Brister a 120-month sentence. Brister will also serve 10 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender and must pay a $5,000 special assessment.
Brister had placed a Craigslist ad that sought “school time fun.” He soon began engaging in sexually-explicit conversations with someone be believed to be a 14-year-old girl. He also sent sexually-explicit photos to that individual, who was actually a member of law enforcement. Eventually, Brister agreed to meet the individual in Laredo for the purpose of engaging in sex with the girl and her mother. He was arrested upon his arrival.
Following his arrest, Brister admitted posting the Craigslist advertisement and engaging in sexually explicit communications with someone whom he believed to be a minor.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Christopher S. Coker prosecuted the case.
HCC Trustee Convicted of BriberyRead the Press Release
HOUSTON – A trustee with Houston Community College (HCC) was recently convicted of bribery of a public official concerning programs receiving federal funds, announced U.S. Attorney Abe Martinez.
U.S. District Judge Vanessa Gilmore unsealed the case against Chris Oliver, 53, of Houston, today. He was originally charged March 9, 2017, and pleaded guilty May 15, 2017.
At the time of his guilty plea, Oliver admitted he accepted bribes in exchange for the promise of official actions related to his duties as a member of the HCC board of trustees. It was revealed in open court at the plea hearing that Oliver met with another individual on several occasions at various restaurants and coffee shops in Houston where he accepted cash payments in exchange for promising to use his position to help that person secure contracts with HCC.
He was permitted to remain on bond pending sentencing, which has been set for Aug. 28, 2017. At that time, Oliver faces up to 10 years in federal prison and a possible $250,000 fine.
The FBI conducted the investigation with assistance from the Department of Education - Office of Inspector General. Assistant U.S. Attorneys Andrew Leuchtmann and Julie Searle are prosecuting the case.
If you have information regarding public corruption in the Houston area, please contact the FBI helpline at 713-693-5000.
Grand Jury Indicts Washington County Man for Distributing Heroin and FentanylRead the Press Release
PITTSBURGH - A resident of the City of Washington, Washington County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of distributing and possessing with intent to distribute quantities of heroin and fentanyl, Acting United States Attorney Soo C. Song announced today.
The six-count indictment, returned on June 28 and unsealed today, named Jerome “Bubba” Barnes, 32, of Washington, Pennsylvania, as the sole defendant.
“The U.S. Attorney’s Office and the Washington County District Attorney’s Office have worked intensively to disrupt large-scale fentanyl and heroin traffickers, like Bubba Barnes,” stated U.S. Attorney Song. “By deputizing a Washington County prosecutor to bring federal charges, we have added another dimension to our cooperative efforts to reduce overdose deaths.”
“This indictment and arrest demonstrates what law enforcement can do to eliminate the deadly poisons being sold in our communities,” said Washington County District Attorney Gene Vittone. “Law enforcement at all levels – municipal, county, state and federal - were involved in the investigation and apprehension of this defendant. Working together, we are better able to eliminate this deadly threat to families and neighbors.”
According to the indictment presented to the court, Barnes distributed and possessed with intent to distribute quantities of heroin and fentanyl between April and June of 2017.
The law provides for a maximum total sentence of 30 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Yesterday, United States Magistrate Judge Robert C. Mitchell ordered the defendant to remain in federal custody, upon consideration, in part, of the June 6, 2017 Order of District Judge Nora B. Fischer detaining Barnes for allegedly violating his federal supervised release on his prior federal drug convictions.
Special Assistant United States Attorney Jerome A. Moschetta of the Washington County District Attorney’s Office is prosecuting this case on behalf of the government.
Task Force Officers with the Federal Bureau of Investigation, Pennsylvania State Police and Washington County District Attorney’s Office Drug Task Force conducted the investigation leading to the Indictment in this case.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Fresno County Man Arrested for Running $20 Million Ponzi SchemeRead the Press Release
FRESNO, Calif. — Seth Adam Depiano, 36, of Clovis, was arrested yesterday in Las Vegas and is charged in a criminal complaint with mail fraud, wire fraud and money laundering, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Depiano operated a Ponzi scheme that lured real estate investors into giving to him and the businesses he controlled — including The Rental Group, U.S. Funding and Home Services LLC, and Draymond Homes — more than $20 million. Depiano fraudulently promised investors that he would use their money to purchase residential properties and either manage the properties for rental income or arrange for them to be renovated and resold.
According to court documents, in many cases, Depiano promoted the properties to investors with documents that falsely represented high occupancy rates. He oftentimes had no authority to purchase or sell the properties and misled investors with fraudulent documents misrepresenting the properties’ ownership. Some of the properties Depiano marketed to investors did not even exist. Depiano paid investors purported rental income that, in fact, was money other investors had given him for investment purposes.
This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the U.S. Attorney’s Office for the District of Nevada. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.
If convicted, Depiano faces a maximum statutory penalty of 20 years in prison for the mail fraud and wire fraud charges, 10 years in prison for money laundering, and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Tucson Police Officer Sentenced to 78 Months for the Illegal Sales of FirearmsRead the Press Release
TUCSON, Ariz. – Yesterday, Joe Santiago Valles, 34, of Tucson, Ariz., was sentenced by U.S. District Judge James A. Soto to 78 months in prison. Valles had previously pleaded guilty to conspiracy to defraud the United States, aiding and abetting false statements in firearms transactions, tampering, tampering with a witness, and identity theft.
Beginning in October 2015 through April 20, 2016, Joe Valles was a business partner with a Federal Firearms Licensee (FFL) in Tucson, Ariz. The FFL and Valles used the identities of individuals, who were not purchasing firearms, to submit ATF Forms 4473 claiming they were the purchasers. ATF Form 4473 is required to legally purchase or acquire firearms from FFLs. The FFL and Valles used the fraudulent forms to conceal the identities of the true buyers. The conspiracy involved a total of 35 firearm transactions, including 24 semi-automatic pistols and rifles. Valles was working as a Tucson Police officer when he stole the identities of two individuals he had contact with through his official duties. Twenty-nine firearm transactions listed these two individuals as buyers when, in fact, they were not the purchasers. To date, one of the firearms was intercepted at the Nogales Port of Entry and a second firearm, a .50 caliber semi-automatic rifle, was seized by Mexican authorities.
The investigation in this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives with assistance by Customs and Border Protection. The prosecution was handled by Serra M. Tsethlikai and Karen E. Rolley, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-16-01059-TUC-JAS
RELEASE NUMBER: 2017-058_Valles
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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.
Former Mount Airy Casino Resort Employee Charged with Money Laundering ConspiracyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Ashley Brosius, age 30, of Stroudsburg, Pennsylvania, a former player coordinator for the Mount Airy Casino Resort, was charged on July 5, 2017, in a criminal information with conspiracy to commit money laundering.
According to United States Attorney Bruce D. Brandler, the information alleges that Brosius and an unindicted co-conspirator defrauded the Mount Airy Casino Resort by engaging in a money laundering scheme involving the use of stolen names and PINs (personal identification numbers) that were tied to players’ club cards. It is alleged that with the assistance of an unindicted co-conspirator, Brosius used the stolen information to create duplicate player club cards, which she then loaded with “free slot play” credits. The fraudulently created cards were then given to the unindicted co-conspirator to gamble with, primarily at slot machines. The criminal information also alleges that the scheme began in November 2014 and continued to November 2015, and that the fraudulent free play amounted to approximately $140,000.
The case was investigated by the Internal Revenue Service, Criminal Investigations and the Pennsylvania State Police. Assistant United States Attorney Michelle Olshefski is prosecuting the case.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under the federal law for this offense is 20 years’ imprisonment, a term of supervised release following imprisonment, and a $500,000 fine. The crime also carries a term of supervised release following imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Johns Hopkins Physician Pleads Guilty to Fraud Scheme Involving Travel Expense ReimbursementsRead the Press Release
July 7, 2017
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On July 7, 2017, Dr. Jean-Francois Geschwind, age 53, of Westport, Connecticut, pled guilty to four counts of mail fraud arising from a multi-year scheme to unlawfully obtain travel expense reimbursements from his former employer, the Johns Hopkins University School of Medicine. Geschwind was employed as a physician in the Division of Vascular and Interventional Radiology between 1998 and 2015.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation - Baltimore Field Office; and Marilyn J. Mosby, the State’s Attorney for Baltimore City.
According to his plea agreement, between 2007 and July 2015, Geschwind made material misrepresentations and omissions in travel expense statements that he submitted or caused to be submitted to the JHU-SOM, for the purpose of obtaining travel expense reimbursements to which he was not entitled. During this time period, Geschwind submitted multiple travel expense statements for purported business expenses, when he knew that the claimed expenses were personal, such as family vacations and meals. For example, during the summer of 2013, Geschwind obtained reimbursement from the JHU-SOM for a 13-day vacation to the United Kingdom and France by falsely representing that the he traveled to those locations to give lectures in connection with his work for the JHU-SOM. As a result of Geschwind’s material misrepresentations, the JHU-SOM issued three separate checks that included reimbursements for his family vacation.
Geschwind also obtained reimbursement from the JHU-SOM for expenses that he knew had already been paid, or would later be paid, by a second (and in some cases a third) entity. In seeking reimbursement for such expenses, Geschwind did not disclose to the JHU-SOM that he was seeking two (and in some cases three) reimbursements for the same expense.
For example, between July 1 and July 5, 2015, Geschwind traveled to Japan to attend the Asia Pacific Primary Liver Cancer Expert (APPLE) meeting. By the time he attended the APPLE meeting, Geschwind had joined the Yale School of Medicine faculty as Chair of the Department of Diagnostic Radiology. Prior to his departure for the APPLE meeting, Geschwind arranged for reimbursement of his round-trip airfare to Japan by Company No. 1, a life-sciences company based in France. Notwithstanding this arrangement, on May 8, 2015, Geschwind sought reimbursement for the same expense from the JHU-SOM but did not disclose that he had already sought reimbursement for his round-trip airfare from Company No. 1. As a result of this material omission, the JHU-SOM issued a check to Geschwind that included reimbursement for his round-trip airfare to and from Japan.
On or about June 22, 2015, Geschwind sought reimbursement from the Yale School of Medicine for the above-referenced round-trip airfare to Japan. Geschwind did not disclose to Yale that he had already arranged for payment of the same expense by Company No. 1, or that he had in fact been reimbursed for that expense by the JHU-SOM. On or about July 21, 2015, as a result of Geschwind’s material omissions, Yale University issued a check to Geschwind for the cost of the round-trip airline ticket.
In July of 2015, Company No. 1 initiated a wire transfer to Geschwind’s Bank of America checking account that included reimbursement for his round-trip airline ticket to Japan. Accordingly, as a result of the material omissions, Geschwind obtained three separate payments, from three separate entities, for the round-trip airfare to Japan in July of 2015.
Through the various methods identified above, Geschwind obtained money with an aggregate value of hundreds of thousands of dollars, in the form of travel expense reimbursements by the JHU-SOM.
Johns Hopkins investigators in the Office of Hopkins Internal Audit (OHIA) conducted an extensive audit of Geschwind’s reimbursement requests and upon discovering he had requested and received significant sums of inappropriate payments, they referred the case to law enforcement. Hopkins investigators worked closely with authorities to assist with their investigation.
Geschwind faces a maximum sentence of 20 years in prison. U.S. District Judge J. Frederick Motz has scheduled sentencing for September 7, 2017 at 12:00 p.m.
Acting United States Attorney Stephen M. Schenning commended the FBI and the Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant United States Attorney Peter J. Martinez and Special Assistant United States Attorney Alexander Huggins, who are prosecuting the case.
Former Comptroller of Poughkeepsie Companies Charged in White Plains Federal Court with Multimillion-Dollar FraudRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), and George P. Beach II, the Superintendent of the New York State Police (“NYSP”), announced today the unsealing of a Complaint charging MARK CINA with mail fraud. The charge arises from an alleged fraudulent scheme whereby CINA embezzled millions of dollars from two companies where he was comptroller, over the course of at least approximately seven years. Cina was presented this morning before Honorable Lisa Margaret Smith, United States Magistrate Judge.
Acting U.S. Attorney Joon H. Kim said: “As alleged, Mark Cina, who was entrusted with the finances of two local manufacturers in Poughkeepsie, abused that trust to spend the companies’ money on himself. For years, Cina allegedly used company money to gamble, pay his rent, dine out, and fund a host of other personal expenses. I want to thank our partners at the State Police and the Postal Inspection Service for their work to uncover and stop this fraud.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “As a Comptroller, Mr. Cina was placed in a position of trust. As alleged, he violated his employer’s trust when he decided to use company money to fund his lifestyle. He was promptly arrested by Postal Inspectors and will be brought to justice for his alleged thievery.”
NYSP Superintendent George P. Beach II said: “This arrest should serve as a reminder that those who choose to abuse their positions will be brought to justice. For years this suspect allegedly stole funds from a legitimate business, using the money for his own enjoyment and personal gain. I thank the U.S. Attorney’s Office for the Southern District of New York and the New York Office of the U.S. Postal Inspection Service for their continued partnerships. The State Police will continue to work with our law enforcement partners to end these types of crimes and hold accountable those who mistakenly think they can get away with these schemes.”
As alleged in the Complaint unsealed today in White Plains federal court[1]:
During all times relevant to the Complaint, two manufacturing companies were in operation, with plants located in the Town of Poughkeepsie (“Company-1” and “Company-2,” collectively the “Companies”). Company-1 designed and manufactured solar energy products such as solar-powered roof shingles. Company-1’s work included, for example, a solar-powered ring of lights encircling the top of MetLife Stadium, in New Jersey. Company-2 fabricated molded plastic.
The Companies were founded by an entrepreneur (“Victim-1”). During all times relevant to the Complaint, Victim-1 was the primary investor in and owner of the Companies.
In or about 2008, Victim-1 hired MARK CINA, the defendant, as a part-time bookkeeper for Company-1. In or about 2010, CINA became employed full-time for the Companies as comptroller. As comptroller, CINA was responsible for the day-to-day financial operations of the Companies. During some of the time period relevant to this Complaint, CINA had authority to sign checks for the Companies and to carry and use the Companies’ credit cards and ATM cards. CINA remained so employed until in or about August 2015, when he was terminated.
In or about September 2015, Victim-1 appeared at a New York State Police barracks in Dutchess County. Victim-1 reported, in part and substance, that a former employee of the Companies had stolen company funds. Thereafter, the New York State Police commenced an investigation, which federal law enforcement officers later joined. As summarized in the Complaint, the investigation yielded myriad evidence showing that CINA had defrauded Victim-1, via the Companies, of millions of dollars over the course of at least approximately seven years. CINA did so by, among other things, using the Companies’ funds for himself to gamble, pay his rent, drive rental cars, dine out, get his car washed, bail out an arrestee, and, in one instance, pay a phone charge for an inmate’s call.
According to, among other things, business and financial records obtained during the criminal investigation, and a forensic report prepared by an accounting firm, CINA made the following disbursements of the Companies’ funds, from in or about 2009 through in or about 2015, which were not authorized, and which had no apparent or recorded business purpose:
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Payments to a mini-mart (approximately $457,000)
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Payments to a gas station (approximately $180,000)
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Payment of CINA’s rent (approximately $25,000)
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Payment of CINA’s personal credit card bills (approximately $125,000)
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Checks payable to CINA (non-payroll) (approximately $599,000)
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Checks payable to cash (approximately $282,000)
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Cash withdrawals (approximately $825,000)
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Additional unauthorized charges (including charges to pharmacies, medical and dental facilities, a rental car company, a car wash facility, an inmate phone service, and for purported loans from family members of CINA)
* * *
CINA, 56, of Pleasant Valley, New York, is charged with one count of mail fraud, which carries a maximum sentence of 20 years 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 efforts of the United States Postal Inspection Service, the New York State Police, the Internal Revenue Service, Criminal Investigation, and the Office’s criminal investigators. He also thanked the Dutchess County District Attorney’s Office for their assistance.
The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Kathryn Martin and Benjamin Allee are in charge of the prosecution.
[1]As the introductory phrase signifies, the entirety of the text of the Complaint and the descriptions of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
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Florida Man Sentenced to Prison Term for His Role in Inauguration Day RiotRead the Press Release
WASHINGTON - Dane Powell, 31, of Tampa, Fla., was sentenced today to four months of incarceration for his role in the violence and destruction that took place in downtown Washington on Inauguration Day, announced U.S. Attorney Channing D. Phillips.
Powell pled guilty on April 28, 2017, in the Superior Court of the District of Columbia, to charges of felony rioting and felony assault on a police officer. Powell was among 234 people arrested in the aftermath of various incidents on January 20, 2017. He was arrested the following day. Powell was the first defendant to plead guilty to felony charges; 15 others have pled guilty to misdemeanor rioting offenses, and charges against 20 other defendants have been dismissed.
The Honorable Lynn Leibovitz sentenced Powell to a total of 36 months in prison, but suspended all but four months of that time on the condition that he successfully complete two years of supervised probation. In sentencing the defendant, Judge Leibovitz said that she credited his early acceptance of responsibility, but at the same time was compelled to take into account the seriousness of his individual acts and choices during the disturbances. Powell was taken into custody immediately after the hearing today to begin serving his prison sentence.
According to a factual proffer signed by the defendant, on January 20, 2017, Powell joined together with more than 200 other people in and around Logan Circle in Washington, D.C. The group formed a “black bloc” in which individual defendants wore black or dark colored clothing, gloves, scarves, sunglasses, ski masks, gas masks, goggles, helmets, hoodies, and other face-concealing and face-protecting items to conceal their identities in an effort to prevent law enforcement from being able to identify the individual perpetrators of violence or property damage. Some of the members of the black bloc were armed with hammers, crowbars, wooden sticks, and other weapons. Powell was among those dressed in black, and had in his possession a gas mask. Powell also attempted to conceal his face with a mask. In addition, Powell was in possession of a hammer, and a heavy wooden stick with a flag attached to it. As part of the proffer, he admitted being part of a group of rioters who moved approximately 16 blocks over a period of more than 30 minutes. He also admitted that he participated in breaking windows at two businesses and throwing a brick, large rock, or piece of concrete at uniformed law enforcement officers during the riot.
The rioting cases are being investigated by the Metropolitan Police Department (MPD) and the U.S. Attorney’s Office for the District of Columbia. They are being prosecuted by Assistant U.S. Attorneys Jennifer A. Kerkhoff and John W. Borchert.
Florida Man Sentenced to Six Years for Receiving Child PornographyRead the Press Release
Tampa, FL – U.S. District Judge Susan C. Bucklew has sentenced Zachary Hunter (41, St. Petersburg) to six years in federal prison for receiving and possessing child pornography. The Court also ordered him to forfeit three computers, an external hard drive, and a thumb drive.
Hunter pleaded guilty on April 4, 2017.
According to court documents and testimony at the sentencing hearing, Hunter was responsible for possessing 1,366 images and 503 videos depicting child pornography, including some that involved prepubescent children and sadistic conduct.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Gregory T. Nolan.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 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.
Five Members of Methamphetamine Conspiracy Plead Guilty in Federal CourtRead the Press Release
Roanoke, VIRGINIA –Five members of a Roanoke-based drug conspiracy that distributed methamphetamine in the city and to places as far west as Lynchburg and Amherst, pled guilty yesterday in the United States District Court for the Western District of Virginia in Roanoke, Acting United States Attorney Rick A. Mountcastle announced.
Yesterday in District Court, Lewis Cheresnowsky Jr., 35, of Roanoke, Brian Edward Roden, 37, of Roanoke, Joy Lynne Mason, 35, of Evington, Va., and Adam Royal McElvy, 34, of Roanoke, each pled guilty to one count of conspiring to possess with the intent to distribute and to distribute 50 grams or more of methamphetamine. Brandi Ann Doss, 35, of Roanoke, pled guilty yesterday to one count of conspiring to possess with the intent to distribute and to distribute a detectable amount of methamphetamine and one count of distributing methamphetamine.
According to evidence presented at yesterday’s guilty plea hearing by Assistant United States Attorney Ashley B. Neese, the conspiracy operated in and around the City of Roanoke from spring 2015 until late 2016. While a majority of the activity involved in the conspiracy was focused in the Roanoke-area, members of the conspiracy did distribute methamphetamine within the Lynchburg and Amherst regions of Virginia during part of the conspiracy.
The investigation of the case was conducted by the Drug Enforcement Administration, the Roanoke City Police, the Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Roanoke HIDTA. Assistant United States Attorney Ashley B. Neese prosecuted the case for the United States.
Falls Church Man Sentenced to 5 1/2-Year Prison Term for Sexually Assaulting College Student Who Was Walking on Northwest Washington StreetRead the Press Release
WASHINGTON – Sergio Velasquez Cardozo, 35, formerly of Falls Church, Va., was sentenced today to a 5 ½ year-prison term on charges stemming from an incident in which he snuck up on a college student and grabbed and groped her, announced U.S. Attorney Channing D. Phillips.
A jury found Velasquez Cardozo guilty in April 2017 of kidnapping, third-degree sexual abuse, fourth-degree sexual abuse and misdemeanor sexual abuse. The verdict followed a trial in the Superior Court of the District of Columbia. Velasquez Cardozo was sentenced by the Honorable Lynn Leibovitz. Upon completion of his prison term, he will be placed on three years of supervised release. He also will be required to register as a sex offender for a 10-year period following his release from prison.
According to the government’s evidence, at approximately 1 a.m. on Sept. 17, 2016, the victim was walking home to her apartment on the Georgetown University campus. While walking in the 3400 block of Prospect Street NW, Velasquez Cardozo snuck up behind her, grabbed her in a bear hug, and fondled her breast and buttocks.
Officers with the Metropolitan Police Department (MPD) happened to be driving slowly right behind, and next to, Velasquez Cardozo when he attacked the woman. They immediately stopped and arrested him. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Phillips praised the work of officers from MPD’s Second District and from MPD’s Sexual Assault Unit. He also expressed appreciation for the work of the Georgetown University Police Department, which arrived on the scene shortly after Velasquez Cardozo was apprehended, and assisted both the victim and the MPD officers. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Brenda C. Williams, former Paralegal Specialist Joyce Arthur, Victim/Witness Advocate Veronica Vaughan, and Litigation Technology Specialists Aneela Bhatia and Anisha Bhatia. Finally, he commended the work of Assistant U.S. Attorneys Kathleen “Katie” Kern and Peter V. Taylor, who investigated and prosecuted this case.
Evansville woman sentenced in federal court for bankruptcy and wire fraud schemeRead the Press Release
Wife filed forged documents in Bankruptcy Court and stole from husband’s retirement account
PRESS RELEASE
Evansville – United States Attorney Josh Minkler announced today the sentencing of an Evansville woman for her role in an elaborate bankruptcy fraud scheme in which she stole thousands of dollars from her husband’s retirement account. Patricia Bippus-Allen, 58, was sentenced to 60 months (five years) imprisonment by U.S. District Judge Richard L. Young after pleading guilty to conspiracy to commit bankruptcy fraud, subornation of perjury, wire fraud, and aggravated identity theft.
“Using the bankruptcy system and government resources to further one’s own selfish and fraudulent scheme will not be tolerated,” said Minkler. “If you intentionally waste the government’s limited judicial resources, you can expect to spend time in federal prison.”
In September 2010, Bippus-Allen filed a joint Chapter 13 bankruptcy petition in both her and her husband’s name in the United States Bankruptcy Court for the Southern District of Indiana. This was done without her husband’s consent, knowledge or authorization. During the course of the bankruptcy proceedings, Bippus-Allen created several documents bearing the forged signature of her husband of over 25 years.
Bippus-Allen also provided her bankruptcy attorney with a letter from a doctor stating her husband was under his care and would be hospitalized for at least 30 days during which he could not see visitors or take phone calls. The doctor who purportedly signed the letter stated it was a forgery and that he had never provided services for her husband.
In March 2011, Bippus-Allen attended a meeting of creditors which her husband was required to attend as well. David Bippus, her brother, attended the meeting with Bippus-Allen and posed as Bippus-Allen’s husband. Bippus-Allen and David Bippus both stated under oath that he was the husband and that all schedules and documents filed in the bankruptcy proceedings were true and correct.
Based on the representations made by Bippus-Allen and David Bippus, a bankruptcy plan was confirmed requiring monthly payments to Bippus-Allen’s trustee for 60 months. Pursuant to this plan, approximately $74,000 was deducted from the direct deposit paychecks of Bippus-Allen’s husband without his consent or knowledge.
Bippus-Allen was convicted of wire fraud stemming from her transferring money from her husband’s 401(k) account into her own personal bank accounts without his consent, knowledge, or authorization. Bippus-Allen made multiple calls to the 401(k) service center purporting to be her husband while also faxing supporting documentation to the service center for a 401(k) hardship withdrawal. In sum, Bippus-Allen made multiple unauthorized withdrawals from her husband’s 401(k) account for a total of over $24,000. Bippus-Allen also took out over $16,000 in loans on her husband’s 401(k) account without his consent, knowledge, or authorization.
This investigation was conducted by the Federal Bureau of Investigation with assistance from the Southern District of Indiana Bankruptcy Fraud Working Group, which includes the U.S. Trustee Program.
"For honest individuals who find themselves overwhelmed by debt, filing for bankruptcy can be a lifesaver. But then there are others who try to get out of paying their debts and line their pockets through illegal actions," said W. Jay Abbott, Special Agent in Charge of the FBI's Indianapolis Division. "The FBI takes our responsibility to pursue those who commit bankruptcy fraud and corrupt the process through deceit very seriously."
“Criminal bankruptcy fraud threatens the integrity of the bankruptcy system, as well as public confidence in that system,” stated Nancy J. Gargula, U.S. Trustee for Indiana, Central Illinois and Southern Illinois (Region 10). “I am grateful to U.S. Attorney Minkler and our law enforcement partners for their strong commitment to combating bankruptcy related crimes, as demonstrated by today’s sentencing.”The U.S. Trustee Program is the component of the U.S. Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill.
According to Assistant United States Attorneys Kyle M. Sawa and Todd Shellenbarger, who prosecuted this case for the government, Bippus-Allen must pay $112,354 in restitution and serve three years of supervised release following her sentence. Her co-defendant brother, David Bippus, was sentenced in May 2017 to two years of probation and $10,000 in restitution for conspiracy to commit bankruptcy fraud and making false statements in bankruptcy court.
East St. Louis Man Sentenced for Conspiracy to Distribute CocaineRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that Howard S. Mister, 42, of East St. Louis, Illinois was sentenced to 33 months of imprisonment on July 7, 2017 for Conspiracy to Distribute Cocaine.
At his change of plea hearing on April 4, 2017, Mister admitted that he had cooperated with several other individuals to distribute multiple kilogram quantities of cocaine in the East St. Louis area during late 2015 and early 2016. Police arrested Mister on March 11, 2016 as he was attempting to sell two kilograms of cocaine for $32,000.00.
The investigation which resulted in Mister’s arrest and sentence was conducted by the Federal Bureau of Investigations.
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
District Man Sentenced to More Than Six Years in Prison for Beating, Maltreating and Abusing 4-Year-Old BoyRead the Press Release
WASHINGTON –Timothy Allen, 20, of Washington, D.C., was sentenced today to six years and eight months in prison for beating and maltreating a four-year-old boy who was in his care last summer, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Allen’s mother, Suzette Nicole Allen, 45, is to be sentenced on Sept. 15, 2017 in the case. Both defendants pled guilty in April 2017, in the Superior Court of the District of Columbia, to a charge of first-degree cruelty to children. The pleas, which are contingent upon the Court’s approval, call for prison sentences of 18 months to seven years. The Honorable Lynn Leibovitz accepted Timothy Allen’s guilty plea today and sentenced him accordingly. Following completion of his prison term, Timothy Allen will be placed on three years of supervised release; during that time, he is to have no contact with children under the age of 18.
According to the government’s evidence, the child’s mother put the boy and his older brother in the care of the Allen family, who she knew, during the summer of 2016. Over the summer, the Allens beat the child with their hands and with drumsticks. The child’s health deteriorated as a result of these beatings, and by early August, he was having trouble walking. Over the next couple of weeks, the boy grew lethargic and his balance faltered. In text messages, the defendants discussed what was happening. Yet they never sought medical attention.
The boy’s mother received the children back from the Allen family on Aug. 16, 2016, immediately recognized that something was wrong, and rushed him to Children’s National Medical Center. He was found to be suffering from multiple brain contusions, two lacerations to his liver, a hemorrhage in his abdominal cavity, two rib fractures, a fractured finger, a missing tooth, patterned scars to his spine, abdomen, chest and inner thighs, and healing injuries to his forehead, eye, nose, jaw, and chest. The boy was kept at the hospital for 17 days and then spent another 55 days in rehabilitation at another facility.
The Metropolitan Police Department (MPD) was alerted by medical professionals and began an investigation that led to the defendants’ arrests last fall. Timothy Allen has been in custody since his arrest. Suzette Nicole Allen is free on personal recognizance pending sentencing, with a condition that she have no contact with children under age 18.
In announcing the sentence, U.S. Attorney Phillips and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Child Forensic Interview Specialist Tracy Owusu, Victim/Witness Advocate Veronica Vaughn, and Paralegal Specialist T.J. McPhail. Finally, they commended the work of Assistant U.S. Attorneys Louis Manzo and Melissa Price, who investigated and prosecuted the case.
District Man Pleads Guilty to Accosting Teenage Girl at MuseumRead the Press Release
WASHINGTON – Devone Foote, 35, of Washington, D.C., pled guilty today to a felony charge stemming from an incident last spring in which he sexually accosted a 14-year-old girl who was on a school trip at a museum, U.S. Attorney Channing D. Phillips announced.
Foote pled guilty in the Superior Court of the District of Columbia to a charge of attempted second-degree child sexual abuse. The charge carries a statutory maximum of five years in prison. The plea, which is contingent upon the Court’s approval, calls for an agreed-upon sentence of 18 months in prison. Following his prison term, Foote would be required to register as a sex offender for a period of 10 years. The Honorable Judith Bartnoff scheduled sentencing for Sept. 15, 2017.
Foote was arrested on April 4, 2017 after he allegedly touched seven girls, ages 13 and 14, on the buttocks, while they were visiting the Smithsonian National Museum of Natural History. He has been in custody ever since. The guilty plea involved one of those offenses.
According to a proffer of facts submitted at the plea hearing, on April 4, 2017, at approximately 5 p.m., a volunteer at the insect exhibit noticed Foote leering at a group of teenage girls from a few feet away. Foote approached the group and took several pictures. He then touched a 14-year-old girl on the buttocks with his hand and held her hair. He then walked away. He was identified shortly afterward outside the museum and arrested. In his guilty plea, Foote admitted that he acted voluntarily and on purpose, and not by mistake or accident.
In announcing the plea, U.S. Attorney Phillips commended the work of those who investigated the case from the Smithsonian Institution Office of Protection Services and from the U.S. Park Police. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Tracey Hawkins, Paralegal Specialist D’Yvonne Key, and Criminal Investigator John Marsh. Finally, he commended the work of Assistant U.S. Attorney Elana Suttenberg, who investigated and prosecuted the case.
Cleveland man sentenced to nearly five years in prison for violating Clean Air Act, illegally dumping garbageRead the Press Release
A Cleveland man was sentenced to nearly five years in prison and ordered to pay $7.8 million in restitution for violating the Clean Air Act by failing to remove asbestos prior to demolishing a former factory in Cleveland, Acting U.S. Attorney David A. Sierleja said.
Christopher Gattarello, 53, and Robert A. Shaw, Sr., 77, of Ypsilanti, Michigan also defrauded a Louisiana company out of $1.1 million. Shaw was sentenced to a year in prison.
U.S. District Judge Donald C. Nugent sentenced Gattarello to 57 months in prison. He ordered restitution of $5.9 million to the city of Cleveland to clean the site, nearly $800,000 to the U.S. EPA for work already done on the site, and $1.1 million to the defrauded Louisiana company.
“Mr. Gattarello created a garbage dump in a residential neighborhood near a school, which remains an environmental hazard,” Sierleja said. “He has caused irreparable harm and deserves this punishment.”
“The defendants in this case put unsuspecting workers at great risk and threatened the health and safety of the community when they failed to follow proper procedures for removing asbestos,” said Scot Adair, Acting Special Agent in Charge of EPA’s criminal enforcement program in Ohio. “This case demonstrates that EPA and its law enforcement partners will prosecute those who willingly break environmental laws in an attempt to cut costs.”
“Our goal is to protect Ohio’s families, and we work hard to ensure that people who commit crimes are held accountable for their actions,” Ohio Attorney General Mike DeWine said. “Collaboration among agencies, which occurred in this case, is so important.”
“Let these sentencings stand as a warning to those who victimize the public that whether you are the main perpetrator of a fraud, or merely assist in its facilitation, the law will hold all guilty parties accountable,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “The successful prosecution of these individuals is a direct result of the excellent partnership that federal, state and kocal law enforcement has in combating violations of federal law."
According to court documents and testimony:
Gattarello owned and controlled several garbage-hauling businesses in Cleveland, including Reach Out Disposal, All Points Rubbish Disposal and Axelrod Rubbish Recycling. Shaw worked for Gattarello at those companies, while William Jackson operated a Cleveland building demolition company.
Gattarello leased the former National Acme facility on East 131st Street in Cleveland in 2011. The 570,000 square-foot facility was built in 1917 and was used for manufacturing for nearly a century. It is located near many homes and a school. Gattarello represented that paper and cardboard waste would be recycled at the facility. Removing asbestos from the facility would cost an estimated $1.5 million.
Gattarello directed paper and cardboard waste, as well as municipal garbage, be delivered to the facility for recycling. Over the next several months, more garbage, paper and cardboard were delivered than could be handled, and Gattarello had the waste moved inside. By 2012, most of the facility was filled with garbage.
Gattarello entered into a contract to purchase the facility in May 2012. He intended to demolish the facility and sell any metal removed as scrap.
In July 2012, Jackson submitted a notice of demolition with Cleveland stating there was no asbestos in the National Acme facility. About 10 days later, the city rejected Jackson’s notice and stated demolition could not begin until proper notice was submitted and approved. About 10 days after that, on July 21, 2012, Jackson began demolition at Gattarello’s direction.
Asbestos fibers were released into the environment during demolition. Debris accumulated outside the facility and asbestos in the piles were exposed to the wind and elements.
Jackson had pleaded guilty to related charges and is awaiting sentencing
Gattarello and Shaw also admitted to defrauding AIM Business Capital LLC. The Lousiana company specializes in “factoring” – a practice in which AIM purchases accounts receivable, such as invoices billed to customers for goods and services. Businesses that factored their receivables with AIM received immediate cash. AIM purchased the receivables at a percentage discount of the invoice. AIM made a profit by collecting the full amount of the invoice from the business’s customers.
Shaw entered into contracts with AIM for the purchase of receivables from Reach Out and Axelrod in 2011 and 2012. Gattarello directed the creation of false and fraudulent invoices for the companies and directed that they be submitted to AIM. In some cases, Gattarello and Shaw directed other employees to create false letters attesting to the validity of the invoices, which Shaw forwarded to AIM. The loss to AIM was $1.1 million.
The case is being prosecuted by Assistant U.S. Attorneys Brad Beeson and Chelsea Rice following an investigation by the U.S. and Ohio Environmental Protection Agencies, the Ohio Bureau of Criminal Investigation and the Internal Revenue Service.
Chelsea Man Pleads Guilty to Theft of VA BenefitsRead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Victor Lawrence, 63, of Chelsea, Maine pled guilty yesterday in U.S. District Court to theft of travel reimbursement benefits from the U.S. Department of Veterans Affairs (VA).
According to court records, Lawrence submitted 77 claims from 2015 through 2016 to the VA for travel reimbursement, falsely claiming that he had driven nearly 100 miles to obtain treatment from the Togus VA Medical Center while he was in fact residing less than six miles away.
Lawrence faces up to 10 years in prison and a $250,000 fine. He will be sentenced after completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Criminal Investigation Division of the V.A. Office of the Inspector General.
Calvert County Man Sentenced to 72 Months in Federal Prison for Receipt of Child PornographyRead the Press Release
JULY 7, 2017
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4855
Greenbelt, Maryland – On July 6, 2017, U.S. District Judge George J. Hazel sentenced Andre Barbins, age 46, formerly of Solomons, Maryland, to 72 months in prison, followed by 15 years of supervised release, for receipt of child pornography. Barbins pled guilty to the charge on January 26, 2017.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Sheriff David Clague of the Knox County (Illinois) Sheriff’s Department.
According to his plea agreement, Barbins used experienceproject.com, a social media application accessible through the internet, to chat with and exchange pictures with a 12-year-old victim located in Illinois. The victim told Barbins directly that she was only 12 years old, nevertheless, Barbins continued chatting and exchanging pictures with the victim over the course of five days. Barbins persuaded the victim to send him pictures containing child pornography. Barbins also sent pornographic pictures of himself to the child. When a search warrant was executed at Barbins’ residence in Solomons, Maryland, officers located several items of furniture that were visible in the photographs that Barbins sent to the victim.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the “resources” tab on the left of the page.
Acting United States Attorney Stephen M. Schenning commended HSI, the Maryland State Police, and the Knox County Sheriff’s Office for their work in the investigation. Mr. Schenning thanked Assistant United States Attorney Joseph R. Baldwin, who prosecuted the case.
California Man Pleads Guilty to Possessing Firearms after a Domestic Violence ConvictionRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that QUINTON COOKS, 37, of California, pled guilty yesterday to two counts of possession of a firearm after having been convicted previously of a domestic violence offense.
According to court documents, on April 26, 2015, New Orleans Police Department (“NOPD”) detectives responded to the 3700 block of Earhart Boulevard because of reported gunshots. They observed an empty vehicle that had sustained several gunshots still running and in drive, with a door ajar. There were spent casings trailing down the sidewalk. The detectives encountered COOKS at the scene. After waiving his Miranda rights, COOKS admitted to exchanging fire with another vehicle and then hiding a firearm in a nearby residence. The detectives recovered the firearm hidden in a shoe in the closet of the residence.
A week later, on May 3, 2015, Louisiana State Police troopers observed a hand-to-hand transaction between a pedestrian and a vehicle that was stopped on Loyola Avenue near Julia Street in New Orleans. COOKS and two others occupied the vehicle. As the troopers approached the vehicle, they detected a strong odor of marijuana emanating from within the vehicle, and observed the passengers making suspicious movements. The troopers searched the vehicle and recovered two firearms with extended magazines and a plastic bag containing marijuana. COOKS testified in state court that one of the firearms belonged to him.
COOKS faces a maximum sentence of 10 years of imprisonment, up to a $250,000.00 fine, up to 3 years supervised release, and $100 Mandatory Special Assessment Fee for each count. U.S. District Court Judge Eldon E. Fallon set sentencing for October 5, 2017.
Acting U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosive, the Louisiana State Police, and the New Orleans Police Department for investigating this matter. Assistant United States Attorneys Maria Carboni and Matthew Payne are in charge of the prosecution.
California Man Indicted on Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned and indictment charging Loren Glen Warner, 27, of Fresno, CA, with production, receipt, and possession of child pornography. The charges carry a mandatory minimum penalty of 15 years, a maximum of 30 years and a $250,000 fine.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that according to the indictment and a previously complaint, in early January, 2017, the defendant met the 14 year-old victim at her family’s church in Cattaraugus County, NY, and the two began communicating via Facebook and Snapchat. During those communications, Warner, who knew the victim was 14 years-old, began making sexual references and statements, and sent sexually explicit images of himself to the victim. The defendant also asked for and received nude photographs of the victim.
On March 27, 2017, the defendant pleaded guilty to Rape in the Second Degree and Endangering the Welfare of a Minor in Cattaraugus County Court and is scheduled to be sentenced on those charges on July 12, 2017.
The defendant was arraigned this afternoon before U.S. Magistrate Judge Michael J. Roemer and is being held.
The indictment 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; the New York State Police, under the direction of Major Steven Nigrelli; and the Cattaraugus County District Attorney’s Office, under the direction of Lori Rieman.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Businessman Sentenced to 87 Months in Federal Prison for $4.6 Million Fraud SchemeRead the Press Release
DALLAS —Wesley Michael Woodyard, 66, most recently from Dallas, was sentenced today by U.S. District Judge Sidney A. Fitzwater to 87 months in federal prison for his role in a scheme to defraud Ace European Insurance Company (ACE) located in London, England of more than $4.6 million from approximately 2002 through 2013, announced U.S. Attorney John Parker of the Northern District of Texas.
Woodyard pleaded guilty in December 2016 to one count of wire fraud. Woodyard has been in custody since the time of his arrest in Minnesota in June 2016. Judge Fitzwater also order Woodyard to pay $3,943,179 in restitution and serve a three year term of supervised release following his release from federal prison.
According to documents filed in the case, Woodyard owned and operated Ringler Associates of North Texas, Incorporated (RANT). From approximately 1993 through 2015, RANT contracted with Ringler Insurance Agency to act as its agent to sell annuities provided by insurance underwriters whose products were offered for sale through Ringler Insurance Agency.
Ringler Associates, Incorporated (RAI) acted as a parent company for Ringler Insurance Agency and other subsidiaries conducting insurance business on behalf of RAI.
RANT settled insurance claims primarily by selling structured settlements (through annuities) offered for sale through Ringler Insurance Agency. The beneficiaries of these annuities were frequently victims of long term disability related injuries and/or death related to employment. While a policy beneficiary could choose to take a lump sum payment from the insurance company, usually the beneficiary agreed to be compensated through a structured settlement. The annuity would pay the beneficiary a set amount either monthly, quarterly or annually, for an extended period of time, often for the life of the beneficiary. Annuities usually offered the most cost-effective means for an insurance company to pay out a structured settlement. RANT sold annuities available on the open market through Ringler Insurance Agency.
According plea documents, during 2002 through 2013, Woodyard devised a scheme to defraud and to obtain money and property by false and fraudulent pretenses, representations, and promises. Woodyard engaged in a pattern of deceitful conduct and made false representations designed to fraudulently induce representatives of Ace European Insurance Company (ACE) to send 11 wire transfers totaling approximately $4,674,258 to one or more bank accounts controlled by Woodyard. ACE initially sent these funds to companies acting as a third party administrator who then transferred the ACE funds to Woodyard. As charged in the indictment, Woodyard stole $4.6 million which was intended to be used to purchase annuities for beneficiaries of ACE European insurance policies. The beneficiaries directly impacted by Woodyard’s extensive and lengthy scheme were United Nations employees who were either injured or killed in connection with their employment.
Woodyard falsely represented to ACE, as well as third party administrators Roger Rich and Company, and Vanbreda International, that Woodyard intended to lawfully use all funds received from ACE to purchase several life insurance annuity contracts from Metropolitan Life, Incorporated or some other legitimate insurance company. Woodyard also caused ACE funds to be sent from Roger Rich and Vanbreda directly to RANT rather than to the annuity provider and thus denied Ringler Insurance Agency its commission earned for the transaction. Woodyard fraudulently concealed from ACE and others that Woodyard unlawfully used the majority of ACE funds for Woodyard’s own personal financial benefit. As a result of this scheme, from 2002 through 2013, Woodyard fraudulently obtained a total of about $4,674,258 from ACE European Insurance Company.
As charged in the indictment, Woodyard made a total of about $857,626 in so-called “lulling payments” during the period from October 2004 through June 2014. These lulling payments were made by Woodyard in an effort to give beneficiaries the false impression that Woodyard had actually purchased legitimate insurance annuity contracts for these beneficiaries. Woodyard made these lulling payments in order to make detection of his extensive 11 year scheme more difficult. For restitution purposes, Woodyard was given credit for these lulling payments. Including all relevant conduct losses and credits, Woodyard was ordered to pay total restitution of $3,943,179.
The Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney David Jarvis prosecuted.
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Buffalo Woman Arrested on Cocaine ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Elisa Rivera Ortiz, 36, of Buffalo, NY, was arrested and charged by criminal complaint with attempted possession, with intent to distribute, cocaine. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the complaint, on April 8, 2017, United States Postal Inspectors intercepted a package during a routine inspection of incoming parcels that contained cocaine. The package was addressed to the defendant. On June 30, 2017, inspectors found narcotics inside a second package intended for Ortiz.
On July 6, 2017, a controlled delivery of a package containing sham cocaine and a monitoring device was conducted at the defendant’s Warren Avenue residence. Once the monitor altered investigators that the package had been opened, they entered the residence and executed a search warrant. Ortiz attempted to run out the side door but was taken into custody.
During the search, investigators located the package of sham cocaine, drug packaging materials, a digital scale with suspected cocaine residue, and a small bag of marijuana. Ortiz’s son and three other minor children were in the residence at the time.
The defendant made an initial appearance today before U.S. Magistrate Judge Michael J. Roemer and was released.
The complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division and the U.S. Postal Inspection Service, under the direction of Boston Division Inspector in Charge Shelly Binkowski.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Blawnox Man Gets 30-Year Prison Term for Producing, Possessing Child Exploitation VideosRead the Press Release
PITTSBURGH – A former resident of Allegheny County, Pennsylvania, has been sentenced in federal court to 30 years imprisonment for six counts of Production of Material Depicting the Sexual Exploitation of a Minor and one count of Possession of Material Depicting the Sexual Exploitation of a Minor, followed by a lifetime supervised release, and a $700.00 special assessment, Acting United States Attorney Soo C. Song announced today.
United States District Judge Arthur J. Schwab imposed the sentence on George Orbin, 62, formerly of Blawnox, Pennsylvania.
According to information presented to the Court at trial, on or about December 10, 2011, April 8, 2013, June 10, 2013, and June 11, 2013, Orbin employed, used, persuaded, induced, enticed, and coerced minors to engage in sexually explicit conduct for the purpose of producing a visual depiction of the sexual exploitation of the minors. Also, on or about August 11, 2012, and June 3, 2013, Orbin attempted to employ, use, persuade, induce, entice, and coerce minors to engage in sexually explicit conduct for the purpose of producing a visual depiction of the sexual exploitation of the minors. In addition, on or about September 10, 2013, Orbin knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
Assistant United States Attorney Jessica Lieber Smolar and Heidi Grogan prosecuted this case on behalf of the government.
Acting U.S. Attorney Song commended the Federal Bureau of Investigation and the Allegheny County District Attorney’s Office for conducting the investigation leading to the successful prosecution of Orbin.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.