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Thursday 18 May 2017
New York Man Charged with Buying Bald Eagle PartsRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Daniel E. Strachan, age 60, of Depew, New York, was charged in a one-count criminal information with illegal possession of wildlife.
According to United States Attorney Bruce D. Brandler, the information alleges that Strachan received several items of illegally transported wildlife through the mail. It is alleged that Strachan bartered for and bought various eagle parts and a bald eagle carcass in violation of the Lacey Act, which prohibits the sale and receipt of wildlife taken in violation of the Bald and Golden Eagle Protection Act.
The United States also filed a plea agreement, which is subject to the approval of the Court, wherein it is indicated that Strachan intends to plead guilty to the charges when he appears in federal court.
The case was investigated by the U.S. Fish and Wildlife Service and the Pennsylvania Game Commission. Assistant U.S. Attorney James T. Clancy is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is five years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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New York Doctor Pleads Guilty in Connection with Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – An internal medicine doctor practicing in Yonkers, New York, today admitted taking bribes in connection with a long-running and elaborate test referral scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, Acting U.S. Attorney William E. Fitzpatrick announced.
Ricky J. Sayegh, 44, of Scarsdale, New York, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with accepting cash bribes in violation of the Federal Travel Act.
According to documents filed in this case and statements made in court:
Sayegh admitted accepting cash bribes in return for referring blood specimens to BLS. From February 2010 through April 2013, Sayegh received bribes totaling approximately $400,000 from BLS employees and associates. Sayegh’s referrals generated more than $1.4 million in lab business for BLS.
The investigation has thus far resulted in 45 convictions – 31 of them doctors – in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case.
The investigation has to date recovered more than $12 million through forfeiture. On June 28, 2016, BLS, which is no longer operational, pleaded guilty and was required to forfeit all of its assets.
The charge to which Sayegh pleaded guilty is punishable by a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sayegh’s sentencing is scheduled for Sept. 6, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the ongoing investigation.
The government is represented by Assistant U.S. Attorneys Joseph N. Minish, Danielle Alfonzo Walsman, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit.
The New Jersey U.S. Attorney’s Office reorganized its health care fraud practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.32 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Michael Bachner Esq., New York
New Jersey Attorney Charged in Securities Fraud SchemeRead the Press Release
SAN FRANCISCO – Gregg Jaclin, an attorney and resident of New Jersey, was indicted today for his role in an alleged securities fraud scheme, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. According to the indictment, Jaclin, through the law firms at which he worked, conspired with another individual in a scheme to create and sell public shell companies with no ongoing business but which, in on their Securities and Exchange Commission (SEC) filings, were represented to be owned and controlled by various individuals and were legitimate businesses. In reality, they were shell companies created by one individual and meant for one purpose—selling them to others, who in some cases used them as vehicles for securities market manipulation schemes. Jaclin and the other individual also allegedly obstructed multiple SEC investigations into their conduct.
According to the indictment filed today, since at least March of 2008, Jaclin, 47, of Princeton Junction, New Jersey, was a licensed attorney who specialized in creating and taking public small companies. After helping companies through what the indictment alleges was referred to as his “self-filing process” to take companies public, Jaclin would frequently facilitate the sale of the companies that he and his co-conspirator created, in a “reverse merger” with a privately traded company owned by others. According to the indictment, Jaclin conspired to misuse this process in a way that violated federal law. Specifically, with Jaclin’s knowledge, his co-conspirator allegedly found individuals who would serve as sham nominee chief executive officers (CEOs) of the companies. These nominee CEOs, on paper, served as majority shareholders and sole directors of the companies. Nevertheless, in reality they did little more than receive payment for signing documents. The nominee CEOs exerted no control over the companies and took directions from Jaclin’s co-conspirator. Similarly, Jaclin’s co-conspirator allegedly recruited sham minority shareholders as part of the scheme. With Jaclin’s knowledge, money was fronted to these shareholders to purchase the securities of the companies, and fraudulent business plans were drafted for the companies, purporting to demonstrate the companies had real plans to engage in business and grow. In actuality, the companies were created and maintained for the sole purpose of being sold as a shell to purchasers who, either individually or as a group, wished to control all of the shares of the company. The companies were then, in most cases, used as a vehicle for a reverse merger, and the stock of the resulting companies was, in some instances, subject to market manipulation.
To assist in the scheme, Jaclin allegedly prepared and directed the filing of numerous fraudulent documents to create the companies, register their shares for public sale, and sell the companies in a reverse-merger transaction. According to the indictment, the documents that Jaclin and his co-conspirator filed with the SEC contained misrepresentations, promises, and omissions that allowed the shares of the companies to become publicly tradable. Following the reverse mergers, later investors who looked at the SEC filings would be misled into believing that the companies had legitimate histories of actual business and numerous shareholders when, in reality, the original company was a shell with only one person controlling all the stock. Jaclin is also accused of corruptly obstructing and impeding the proceedings on the SEC with respect to two separate companies.
In sum, Jaclin was charged with conspiracy, in violation of 18 U.S.C. § 371; securities fraud, in violation of 15 U.S.C. §§ 78j(b), 78ff and 17 C.F.R. § 240.10b-5; false filing under the Securities Exchange Act of 1933, in violation of 15 U.S.C. §§ 78j(b) and 78ff; false filing under the Securities Act of 1933, in violation of 15 U.S.C. §§ 77q(a) and 77x; scheme to conceal a material fact from a government agency, in violation of 18 U.S.C. § 1001(a)(1); false writings to a government agency, in violation of 18 U.S.C. § 101(a)(3); and two counts of obstruction of the proceedings of the SEC, in violation of 18 U.S.C. § 1505.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the maximum penalty for conspiracy is five years’ imprisonment and a $250,000 fine, the maximum penalty for securities fraud and false filing under the Exchange Act of 1934 is 20 years’ imprisonment and a $5,000,000 fine; the maximum penalty for false filing under the Securities Act of 1933 is five years’ imprisonment and a $10,000 fine; the maximum penalty for scheme to conceal a material fact from a government agency, false writings to a government agency, and each count of obstruction of proceedings before the Securities and Exchange Commission is five years of imprisonment and a $250,000 fine. 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.
Jaclin is scheduled to appear on June 8, 2017, at 9:30 a.m., before U.S. Magistrate Judge Laurel Beeler for arraignment.
Assistant U.S. Attorney Benjamin Kinglsey is prosecuting the case with the assistance of Claudia Hyslop, Denise Oki, and Bridget Kilkenny. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
New Haven Man Pleads Guilty to Illegally Possessing Gun, NarcoticsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANTRUM COSTON, 34, of New Haven, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of possession of a firearm by a felon and one count of possession with intent to distribute cocaine and cocaine base (“crack”).
According to court documents and statements made in court, on January 11, 2016, New Haven Police stopped a vehicle COSTON was driving. A search of the vehicle revealed a loaded Jimenez Arms 9 millimeter pistol, and a search of COSTON’s person revealed 13 baggies of cocaine and also a quantity of crack cocaine. The firearm had been previously reported stolen.
Prior to January 2016, COSTON had sustained multiple felony convictions, including a federal conviction in 2004 for possession of a firearm by a felon. COSTON was sentenced to 37 months of imprisonment on that prior federal conviction and, in June 2007, an additional 18 months of imprisonment for violating the conditions of his supervised release.
Judge Underhill scheduled sentencing for August 10, 2017, at which time COSTON faces a maximum term of imprisonment of 30 years.
This matter is being investigated by the Federal Bureau of Investigations and the New Haven Police Department. This case is being prosecuted by Assistant U.S. Attorneys Jennifer R. Laraia and Michael E. Runowicz.
Multiple Defendants Plead Guilty to Drug Conspiracy Charges in Federal Gang ProsecutionRead the Press Release
Columbia, South Carolina --- United States Attorney Beth Drake announced today that Deshawn Earl Chestnut, age 24, Matthew DeWitt, age 27, and Stacy Cambas, age 30, pled guilty on Tuesday, May 16, 2017, to participating in a drug conspiracy that operated in the Florence, Charleston, and Myrtle Beach areas of South Carolina. Timothy Singletary, age 22, also pled guilty on May 4, 2017, to participating in this drug conspiracy. Their respective convictions subject them to up to 20 years imprisonment.
Assistant U.S. Attorney Andy Moorman, lead Organized Crime and Drug Enforcement Task Force (OCDETF) Attorney for the District of South Carolina, noted that the prosecution is another OCDETF effort advanced in concert with local, state, and federal law enforcement. OCDETF is a program administered by the Department of Justice that targets large scale, multi-state drug trafficking organizations.
Moorman told the Court during proceedings that these Defendants, working with other co-defendants, distributed heroin, cocaine, and/or marijuana to customers in Florence and Myrtle Beach.
The investigation has targeted members of the Billie East Side Bloods, a set of the United Blood Nation, and others who formed an agreement to distribute heroin, fentanyl, cocaine, and marijuana in South Carolina, and to traffic in and possess firearms for the purpose of advancing the drug conspiracy.
The investigation is being conducted by the FBI, the DEA, the Horry County Sheriff’s Office, the Horry County Police Department, the Myrtle Beach Police Department, the North Myrtle Beach Police Department, the 15th Circuit’s Drug Enforcement Unit, and the Georgetown Police Department. The charges filed against the defendants in this operation are being prosecuted by Assistant US Attorneys Andy Moorman and Lauren Hummel.
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Missouri Hospitals Agree to Pay United States $34 Million to Settle Alleged False Claims Act Violations Arising from Improper Payments to OncologistsRead the Press Release
Two Southwest Missouri health care providers have agreed to pay the United States $34,000,000 to settle allegations that they violated the False Claims Act by engaging in improper financial relationships with referring physicians, the Justice Department announced today. The two Defendants are Mercy Hospital Springfield f/k/a St. John’s Regional Health Center, and its affiliate, Mercy Clinic Springfield Communities f/k/a St. John’s Clinic. Among other health care facilities, the Defendants operate a hospital, clinic, and infusion center in Springfield, Missouri.
The settlement announced today resolved allegations that the Defendants submitted false claims to the Medicare Program for chemotherapy services rendered to patients referred by oncologists whose compensation was based in part on a formula that improperly took into account the value of their referrals of patients to the infusion center operated by the Defendants. Federal law restricts the financial relationships that hospitals and clinics may have with doctors who refer patients to them.
“When physicians are rewarded financially for referring patients to hospitals or other health care providers, it can affect their medical judgment, resulting in overutilization of services that drives up health care costs for everyone,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “In addition to yielding a recovery for taxpayers, this settlement should deter similar conduct in the future and help make health care more affordable.”
The allegations settled today arose from a lawsuit filed by a whistleblower, Dr. Viran Roger Holden, a physician who was employed by one of the Defendants, under the qui tam provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. Dr. Holden will receive $5,440,000 from the recovery.
“This settlement protects patients and the public by enforcing the federal protections against profit incentives for physicians,” said Acting U.S. Attorney Thomas M. Larson for the Western District of Missouri. “Patients deserve assurances that they are receiving appropriate medical care, unbiased by hidden incentives. And taxpayers deserve assurances that the cost of public health care programs is not inflated by unnecessary procedures and services.”
“When physician compensation improperly accounts for referrals, patients are left to wonder whether their doctor’s judgment has been tainted and motivated by financial interests,” said Special Agent in Charge Steven Hanson for the Department of Health and Human Services Office of the Inspector General. “Illegal financial reward has no place in health care. Today’s settlement should send a message that, together with our law enforcement partners, we will pursue these cases.”
The government’s intervention/complaint in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The case, United States ex rel. Holden v. Mercy Hospital Springfield, et al., Case No. 15-cv-3283 (W.D. Mo.), was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Western District of Missouri, and the U.S. Department of Health and Human Services’ Office of Inspector General. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Mexican Citizen Removed Four Times from U.S. is Sentenced for Illegally Re-entering AgainRead the Press Release
PITTSBURGH - An illegal alien found in Pittsburgh, Pennsylvania, pleaded guilty and has been sentenced in federal court to time served on his conviction of Illegal Re-Entry After Deportation, Acting United States Attorney Soo C. Song announced today.
United States District Judge Cathy Bissoon imposed the sentence on Enrique Carmona-Bernardo, age 37, of Mexico.
According to the information presented to the court, Enrique Carmona-Bernardo, an illegal alien, was formally removed from the United States by United States Immigration and Customs Enforcement on November 5, 2009, December 7, 2012, January 17, 2013 and March 3, 2013. Enrique Carmona-Bernardo was found to be illegally present in Pittsburgh, Pennsylvania, on March 17, 2017, when he was arrested by City of Pittsburgh Police for driving under the influence under the name Enrique Cardona.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
Acting United States Attorney Soo C. Song commended the U.S. Immigration and Customs Enforcement (ICE)/Homeland Security Investigations (HSI) and the University of Pittsburgh Police Department for the investigation leading to the successful prosecution of Enrique Carmona-Bernardo.
Massachusetts Man Sentenced for Attempted Coercion of a Minor, and Distributing, Receiving and Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK – David J. Rancourt, age 62, of Palmer, Massachusetts, was sentenced today to 188 months in prison for attempted coercion and enticement of a minor for prohibited sexual activity, and distribution, receipt and possession of child pornography.
The announcement was made by United States Attorney Richard S. Hartunian and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
On November 23, 2016, Rancourt pled to all 12 counts of an indictment charging him with the child exploitation crimes before United States District Judge Mae A. D’Agostino. As part of his plea, Rancourt admitted that he posted an online advertisement, “Dad looking for a son,” seeking sexual role-play encounters with a boy. Following email and instant message exchanges with a Colonie Police Department officer acting undercover, Rancourt travelled to Albany to meet a person he believed to be a 14-year-old boy to engage in sexual activities. He also sent and received child pornography using a phone-based instant messaging application and possessed child pornography on his phone.
Judge D’Agostino also imposed a life term of supervised release, which will start after Rancourt is released from prison. As a result of his conviction, Rancourt will also be required to register as a sex offender after leaving prison.
Judge D’Agostino also ordered restitution of $3,000 to several child pornography victims who submitted restitution requests based on Rancourt’s possession of images depicting their abuse.
This case was investigated by the FBI and the Colonie Police Department, and was prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Marion County man sentenced for unlawful possession of a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Duane Jabbar Martin, 32, of Rivesville, West Virginia, was sentenced today to 18 months incarceration for unlawful possession of a firearm, Acting United States Attorney Betsy Steinfeld Jividen announced.
Martin, who had previously been convicted of a felony offense in Marion County, is prohibited from possessing a firearm. He admitted to possessing a 9mm semi-automatic handgun in April 2016.
Martin pled guilty to one count of “Unlawful Possession of a Firearm” in January 2017.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Marion County Sheriff’s Office investigated.
U.S. District Judge Irene M. Keeley presided.
Manager of Clothing Factory Sentenced to Prison after Offering Bribe to Federal Labor Investigator in Exchange for Closing InvestigationRead the Press Release
LOS ANGELES – The general manager of a La Puente garment factory, who was found guilty of offering to pay bribes to an investigator with the United States Department of Labor in exchange for the investigator closing an investigation into wage violations, has been sentenced to 18 months in federal prison.
Howard Quoc Trinh, 43, of Arcadia, the manager of Seven-Bros. Enterprises, was sentenced yesterday by United States District Judge Christina A. Snyder.
In April 2016, a federal jury, which deliberated for only about one hour, convicted Trinh of two counts of bribery, finding that he offered to pay $10,000 in bribes – and actually paid $3,000 – to a Department of Labor Wage and Hour investigator. As part of the bribery scheme, Trinh promised to pay the balance when the investigation was closed.
The Labor Department investigator was investigating Seven-Bros. for violating the Fair Labor Standards Act (FLSA), which sets standards for minimum wage and overtime pay. The Wage and Hour investigator led a team that conducted an unannounced visit to Seven-Bros on March 10, 2015. The investigation into wage violations covered a period from May 2012 through March 10, 2015 and found that Seven-Bros owed approximately $100,000 to compensate employees for FLSA violations over that period. As part of the investigation, the Labor Department issued a “hot goods” Notice to Restrain the Shipment of Goods, which prevented the company from shipping certain inventory until the back wages were paid to employees.
The investigator returned to Seven-Bros on March 18, at which time Trinh said he did not owe his employees any back wages and that he wanted to “take care” of the investigator. In response to Trinh’s statements, the Labor Department’s Office of Investigator General (OIG) initiated an investigation and outfitted the investigator with recording equipment. On the evening of March 18, during a recorded meeting, Trinh offered the investigator $10,000 to close out the investigation without finding any violations and to lift the hot goods notice. Trinh told the investigator that he wanted a “clean case” with “no violations” and ““I would say to you $10,000…in your pocket.”
The next day, during another recorded meeting, Trinh gave the investigator an initial payment of $3,000 in cash in an unmarked manila envelope. Before he gave the cash to the investigator, Trinh patted the envelope and said “we never met…we never sat at this table…we never had any of this.” On March 20, 2015, Trinh was arrested.
Trinh’s “criminal conduct reflects a complete disregard for the law,” prosecutors wrote in a sentencing memorandum filed with the court. “Rather than pay his employees (most of whom earned minimum wage) the back wages that they were owed for overtime, [the] defendant tried to buy his way out of trouble by bribing” the Labor Department investigator.
Judge Snyder ordered Trinh to begin serving his prison sentence by September 6.
The investigation in this case was conducted by the United States Department of Labor, Office of Investigator General, Office of Labor Racketeering and Fraud Investigations.
This case was prosecuted by Assistant United States Attorney Julian L. André of the Major Frauds Section.
Man sentenced for identity theftRead the Press Release
CLARKSBURG, WEST VIRGINIA – Daniel Aaron Stone, 36, currently incarcerated at Federal Correctional Institution Beckley, was sentenced today to 24 months incarceration for aggravated identity theft, Acting United States Attorney Betsy Steinfeld Jividen announced.
Stone admitted to having social security numbers of people for the intended use of filing false tax returns. Stone pled guilty to two counts of “Aggravated Identity Theft” in March 2017. The sentence is to run consecutively to any previous sentence imposed.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The Internal Revenue Service and the Special Investigative Services Unit of the Bureau of Prisons investigated.
U.S. District Judge Irene M. Keeley presided.
Man from El Salvador pleads guilty to illegally reentering the United States for the sixth timeRead the Press Release
LAKE CHARLES, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a man from El Salvador pleaded guilty to reentering the United States without permission for the sixth time.
Daniel Ernesto Viscarra-Lopez, 26, of El Salvador, pleaded guilty before U.S. Magistrate Judge Kathleen Kay to one count of illegal reentry of a removed alien. The plea will become final when accepted by U.S. District Judge Donald E. Walter. According to the guilty plea, Calcasieu Parish Sheriff deputies arrested the defendant on November 12, 2017. He later told U.S. Border Patrol agents that he was a citizen of El Salvador. After further investigation, agents learned that Viscarra-Lopez was previously removed from the United States in June 2006, July 2007, February 2009, June 2009 and December 2009. He entered the country illegally each time without first obtaining permission from the U.S. government.
Viscarra-Lopez faces up to two years in prison, one year of supervised release and up to a $250,000 fine.
United States Border Patrol and the Calcasieu Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Dominic Rossetti is prosecuting the case.
Man Sentenced to 10 Years in Prison for Transporting a Minor with the Intent to Engage in Criminal Sexual ActivityRead the Press Release
***In order to protect the privacy of the child victim in this case, the United States Attorney’s Office is requesting that the media not disclose the victim’s name or display an image of the victim when reporting this story. We are aware that her identity and images were released to the public in the course of the Amber Alert. This is simply a request, and we understand that the decision is ultimately left to your discretion. Please do not hesitate to contact our Public Information Officer below with any questions.***
MISSOULA – Rodney Lee Zahn, 61, formerly of Madison County, Montana, was sentenced today in federal court for transporting a child in interstate commerce with the intent the child engage in criminal sexual activity, namely sexual abuse of a minor in the third degree. Zahn pleaded guilty to the charge on January 30, 2017. Chief U.S. District Court Judge Dana Christensen sentenced Zahn to 120 months in prison. Following his release, Zahn will be placed on supervised release for 10 years. Zahn is also required to pay $ 773.04 in restitution to the victim, and forfeit his Ford pickup truck and camper that was used to transport the minor victim out of Montana.
In an offer of proof filed by Assistant U.S. Attorney Cyndee Peterson, the government stated that in late July 2016, Defendant Rodney Lee Zahn befriended a family in Sheridan, Montana. This included the family’s 16-year old daughter. Due to a diagnosed intellectual disability, the child cannot make sound judgments and is at risk of being manipulated by others. On the night of August 1, 2016, Zahn met the child a few blocks from the family’s residence. Zahn and the child left Sheridan that night in his truck pulling a camper trailer. After discovering she was gone the next morning, the child’s family reported her missing. On August 4, 2016, law enforcement located Zahn and the child in Casper, Wyoming. Zahn was arrested and was interviewed. Zahn admitted that he and the child left Montana, and drove through Idaho into Wyoming. Zahn admitted that he and the child had sexual intercourse twice during the trip. Zahn also stated that he knew the child was 16 years old.
Madison County Sheriff Roger Thompson stated, “It was highly unfortunate that Mr. Zahn decided to make the decision he did that created such a grave concern for the family. Getting the victim back safely was a great outcome. The cooperation and assistance the Federal Bureau of Investigation (FBI) and National Center for Missing and Exploited Children (NCMEC) provided to the Madison County Sheriff’s Office was tremendous and deeply appreciated.”
Federal Bureau of Investigation Ricky Shelbourn stated, “Rodney Zahn took advantage of a family’s trust and generosity, only to manipulate and victimize their daughter. The FBI aims to protect society’s most vulnerable from predators like Zahn. The effort is greatly enhanced because we work closely together with our law enforcement partners. In this case, inter-agency collaboration was integral to our finding the victim within 48 hours from her disappearance.”
The case was prosecuted by Assistant U.S. Attorney Cyndee Peterson and investigated by the Federal Bureau of Investigation, the Madison County Sheriff’s Office, and the Casper Wyoming Police Department.
Man Admits to Stealing Deceased Father’s Social Security Benefits for 16 yearsRead the Press Release
Special Assistant U.S. Attorney Jeffrey D. Hill (619) 546-7924
NEWS RELEASE SUMMARY – May 18, 2017
SAN DIEGO – Abel Jose Perez pleaded guilty in federal court today to theft of public property, admitting that he stole $271,925.60 in Social Security retirement benefits intended for his father, Angel Perez-Barajas, who died in 1997.
During a hearing before U.S. Magistrate Judge Andrew G. Schopler, Perez acknowledged that for more than 16 years, he retained exclusive access to and controlled a bank account belonging to his deceased parents, and all funds deposited therein. Perez, who was not an authorized user of the bank account, also never informed either the bank or the Social Security Administration of his father’s death.
Perez also admitted that he never requested that the Social Security Administration terminate the monthly direct deposit of his father’s retirement benefits, which continued each month from August 1997 until February 2014. Indeed, Perez admitted that he knew his father’s Social Security retirement benefits should have terminated upon his death, but he nonetheless converted all $271,925.60 to his own use, with no intention of ever returning it to the United States of America.
“The only difference between this and armed robbery is the gun,” said Acting U.S. Attorney Alana W. Robinson. “This defendant stole hundreds of thousands of dollars, and the ultimate victims are those who pay into Social Security expecting to receive benefits down the road. We won’t let thieves get away with these crimes, even if they have untraditional methods.”
“The Social Security Administration’s Office of the Inspector General is committed to pursuing those who defraud SSA and its benefit programs, which are a lifeline for so many Americans and their families,” said Robb Stickley, the Special Agent in Charge of the San Francisco Field Division, which is responsible for Southern California. “We will continue to assist the U.S. Attorney’s Office in bringing violators to justice."
As a part of his plea agreement, Perez agreed to pay full restitution to the Social Security Administration for all of the money he gained by his crime. Perez faces up to 10 years in federal prison and a fine of up to twice his gross gains from this crime at his sentencing on August 7, 2017 before U.S. District Court Judge William Q. Hayes.
DEFENDANT Case Number 17-cr-01259-WQH
Abel Jose Perez San Diego, CA
SUMMARY OF CHARGES
Theft of Public Property – Title 18, U.S.C., Section 641
Maximum penalty: 10 years’ imprisonment, $543,851.20 fine, restitution
AGENCY
Social Security Administration’s Office of the Inspector General
Jury Convicts Schenectady Felon of Drug ConspiracyRead the Press Release
ALBANY, NEW YORK – A jury voted today to convict William “True” Hilts, age 52, of Schenectady, New York, of conspiracy to distribute crack cocaine and heroin, and distribution of crack cocaine and heroin, following a four-day jury trial.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA).
Hilts, who has several felony convictions for drug trafficking, faces at least 10 years and up to life in prison, as well as a term of post-imprisonment supervised release of between 8 years and life, when he is sentenced on September 11, 2017 by Senior United States District Judge Thomas J. McAvoy.
The evidence at trial showed that, from October 2015 through February 2016, Hilts conspired with his nephew, Elijah Jones, to distribute crack cocaine and heroin from their shared residence on Paige Street, next to a children’s daycare. Law enforcement officers recovered more than 80 grams of crack cocaine and more than 600 bags of heroin during the investigation. Jones pled guilty on May 10 to a conspiracy charge and faces at least 5 years and up to 40 years in prison.
This case was investigated by the DEA and the Schenectady County Sheriff’s Department, and is being prosecuted by Assistant United States Attorneys Wayne A. Myers and Joseph A. Giovannetti.
Jury Convicts California Man of Large-Scale PCP ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a California man was convicted in federal court today of his role in a conspiracy to distribute large quantities of PCP in the Kansas City area.
Ladronal S. Hamilton, also known as “Black,” 45, of Hawthorne, Calif., was found guilty of participating in a conspiracy to distribute PCP in Jackson County, Mo., and elsewhere from Jan. 1, 2011, to March 12, 2015.
Evidence introduced during the trial indicated that Hamilton supplied numerous associates in Kansas City with kilogram quantities of PCP, which was transported from California through the mail.
Operation Dirty Glass
Operation Dirty Glass was an investigation of a large-scale PCP and crack cocaine drug trafficking organization. More than 20 defendants were indicted and convicted as a result of the investigation, including the primary target, Gerald W. Jones, 45, of Kansas City, Mo., who received PCP from Hamilton. In a separate but related, case, Jones was convicted and sentenced to 20 years in federal prison without parole.
Investigators seized a total of approximately 14 kilograms of PCP in a series of Express Mail shipments made by Hamilton to Kansas City, Mo. On Oct. 17, 2014, a postal inspector identified an Express Mail package that had been sent by Hamilton from the La Tiejera, Calif., post office to a Kansas City, Mo., address. The parcel contained three metal canisters, each of which contained approximately two kilograms of PCP. On Nov. 10, 2014, a postal inspector identified two more Express Mail packages that had been sent by Hamilton from California to Kansas City, Mo., addresses. Inside each package, investigators found a metal canister containing approximately two kilograms of PCP.
Hamilton made frequent trips to the Kansas City area. Prior to the discovery of the PCP shipments, the U.S. Postal Inspection Service interdicted two Express Mail envelopes on Oct. 16, 2013, that Hamilton, while visiting Kansas City, had sent back to California. One envelope contained $4,000 and the other contained $7,000, of drug proceeds.
Operation Water Park
Hamilton was also implicated in a separate investigation, Operation Water Park, which resulted in the indictment and convictions of 11 defendants. In early 2015, Hamilton began supplying PCP to Leelon Williams, 40, of Kansas City, Mo. Williams pleaded guilty to conspiracy to distribute PCP and was sentenced to 20 years in federal prison without parole.
Williams was arrested on March 12, 2015, when Kansas City, Mo., police officers were dispatched to the area of 26th Street and College to investigate a shooting. Williams was found hiding inside his van, which was parked in an alleyway near the scene of the shooting. (Williams was not involved in the shooting.) Investigators searched the van and found two glass orange juice bottles that contained a total of approximately 1.2 kilograms of PCP, which Hamilton had shipped to Williams from California.
Under federal statutes, Hamilton is subject to a mandatory minimum sentence of 20 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about 3 hours before returning the guilty verdicts to U.S. District Judge Gary A. Fenner, ending a trial that began Monday, May 15, 2017.
This case is being prosecuted by Assistant U.S. Attorneys Brent Venneman and Emily A. Orsinger. It was investigated by the Kansas City, Mo., Police Department, the U.S. Postal Inspection Service and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Johnsonville Man Charged with Receiving and Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK – Keith J. Bleau, age 51, of Johnsonville, New York, was arrested on Tuesday on charges of receiving and possessing child pornography. Today, Bleau appeared before United States Magistrate Judge Daniel J. Stewart and was detained pending trial.
The announcement was made by United States Attorney Richard S. Hartunian and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
The criminal complaint alleges that between May 16, 2012 and May 16, 2017, Bleau used a peer-to-peer file sharing program and the Internet to download multiple child pornography movies. The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.
If convicted of all charges, Bleau faces at least 5 years and up to 20 years in prison, post-imprisonment supervised release of at least 5 years and up to life, and a maximum $250,000 fine, Sentences are imposed by a judge based on the particular statute the defendant is charged with violating, the United States Sentencing Guidelines and other factors.
This case is being investigated by the FBI and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Rick Belliss.
Indiana Man Indicted for Running Fraudulent Return Preparation Business and Obstructing the Internal Revenue LawsRead the Press Release
An Indiana man was indicted today by a federal grand jury in Hammond, Indiana for conspiracy to defraud the United States, attempting to interfere with the administration of the internal revenue laws, and aiding and assisting in the preparation and presentation of false tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Clifford D. Johnson for the Northern District of Indiana.
According to the indictment, John Newlin owned and operated Quick Sam Tax Service in Gary, Indiana. The indictment alleges that from approximately August 2008 through January 2012, Newlin trained, coached, and encouraged his employees to prepare and file with the Internal Revenue Service (IRS) fraudulent tax returns for taxpayer clients. Those returns allegedly contained false business income and expenses and false claims for the Earned Income Tax Credit, thereby generating IRS refunds to which the clients were not entitled. The indictment further charges that after the IRS suspended his electronic filing privileges, Newlin contracted with another individual in Georgia to transmit and file returns for Quick Sam using that individual’s tax preparer number.
An indictment merely alleges that crimes have been committed. Defendants are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Newlin face a statutory maximum sentence of five years in prison for the conspiracy count, three years in prison for attempting to interfere with the administration of the internal revenue laws and three years in prison for each count of aiding and assisting in the preparation of false tax returns. Newlin also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Johnson commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Gary Bell and John Mulcahy of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Indiana Man Indicted for Running Fraudulent Return Preparation Business and Obstructing the Internal Revenue LawsRead the Press Release
WASHINGTON – An Indiana man was indicted today by a federal grand jury in Hammond, Indiana for conspiracy to defraud the United States, attempting to interfere with the administration of the internal revenue laws, and aiding and assisting in the preparation and presentation of false tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Clifford D. Johnson for the Northern District of Indiana.
According to the indictment, John Newlin owned and operated Quick Sam Tax Service in Gary, Indiana. The indictment alleges that from approximately August 2008 through January 2012, Newlin trained, coached, and encouraged his employees to prepare and file with the Internal Revenue Service (IRS) fraudulent tax returns for taxpayer clients. Those returns allegedly contained false business income and expenses and false claims for the Earned Income Tax Credit, thereby generating IRS refunds to which the clients were not entitled. The indictment further charges that after the IRS suspended his electronic filing privileges, Newlin contracted with another individual in Georgia to transmit and file returns for Quick Sam using that individual’s tax preparer number.
An indictment merely alleges that crimes have been committed. Defendants are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Newlin face a statutory maximum sentence of five years in prison for the conspiracy count, three years in prison for attempting to interfere with the administration of the internal revenue laws and three years in prison for each count of aiding and assisting in the preparation of false tax returns. Newlin also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Johnson commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Gary Bell and John Mulcahy of the Tax Division, who are prosecuting the case.
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Indian River County Resident Sentenced to 30 Years in Prison for Producing Child PornographyRead the Press Release
Matthew Vaughn Hawks, 29, of Vero Beach, Florida, was sentenced on May 16, 2017, by United States District Judge Donald M. Middlebrooks to 360 months in prison, to be followed by a lifetime of supervised release, after previously pleading guilty to three counts of producing child pornography and one count of possessing child pornography.
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), Deryl Loar, Sheriff, Indian River County Sheriff’s Office, and James Stuart, Sheriff, Anoka County, Minnesota, Sheriff’s Office, made the announcement.
According to the court record, Hawks was on probation for making a false bomb threat in Indian River County, Florida, when he began communicating over the internet with multiple female children. Over a period of three months, Hawks cultivated an increasingly personal online relationship with the children. He began soliciting sexually explicit photographs from the minors and sent them sexually explicit images of himself. Hawks then requested increasingly explicit photographs. When some of the children resisted, Hawks threatened to post images of them on the internet if they did not comply with his demands. Hawks’ victims were located in Minnesota, Michigan, Massachusetts, Texas, and Florida.
Mr. Greenberg commended the investigative efforts of ICE-HSI, the Indian River County Sheriff’s Office, and the Anoka County Sheriff’s Office. The case was prosecuted by Special Assistant U.S. Attorney Ryan Butler and Assistant U.S. Attorney Daniel Funk.
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.
INTERPOL Washington Helps Countries Build Information Sharing CapacityRead the Press Release
INTERPOL Washington photograph. INTERPOL member countries Singapore, Malaysia, and the United States celebrate the successful conclusion of capacity building training.During the first week of May 2017, Steve Somerville (left), INTERPOL Washington Development and Operations Team member, participated in a training event for INTERPOL member countries Singapore and Malaysia. The training, hosted by Singapore, gave INTERPOL Washington an opportunity to refine and troubleshoot the integration of I-24/7 services. The training was part of the Asian Regional Capacity Building Initiative designed to integrate the full suite of INTERPOL tools and services into each country’s existing national information technology infrastructure. Other participating countries are Indonesia, Thailand, and the Philippines.
The Asian Capacity Building Project initiative helps countries to:
Develop or enhance their ability to contribute stolen or lost travel document (SLTD) data to INTERPOL’s SLTD database;
Enhance border and immigration screening capabilities by integrating INTERPOL’s I-24/7 network; and
Use INTERPOL Washington expertise to help member countries develop the information technology infrastructure needed to connect to INTERPOL information.
This initiative helps member countries to meet their United Nations Security Council obligations to “… prevent the movement of terrorists and terrorist groups by effective border controls … and to “… improve international, regional, and sub-regional cooperation through increased sharing of information.”
INTERPOL Washington is committed to providing global technical assistance to increase the capacity and long-term sustainability to interdict the illicit international travel of Foreign Terrorist Fighters and other transnational criminals through the strategic application and utilization of INTERPOL information sharing tools.
A component of the U.S. Department of Justice, INTERPOL Washington—the U.S. National Central Bureau—is co-managed by the U.S. Department of Homeland Security. As the designated representative to INTERPOL on behalf of the Attorney General, INTERPOL Washington serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States.
Houston Man Sentenced to 120 Months in Federal Prison for His Role in Tilak Jewelers RobberyRead the Press Release
DALLAS — Dominique Pearson, 25, of Houston, Texas was sentenced yesterday by U.S. District Judge Ed Kinkeade to serve a total of 120 months in federal prison, following his guilty plea in October 2016 to his role in the conspiracy to rob Tilak Jewelers in Irving, announced U.S. Attorney John Parker of the Northern District of Texas.
Pearson pleaded guilty to one count of conspiracy to interfere with commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence. Pearson has been in custody since his arrest in December 2015.
Pearson was charged along with eleven other individuals in an indictment in February 2016. Afraybeom Traverom Jackson, 27, Joshua Deunte Caldwell, 26, Hilton Murdock Aitch, 56, Irving Tyrone Flanagan, 47, Larry Solomon, 42, Terrence Lynn Thompson, 53, Anthony Ray Turner, Jr, 25, Treveon Dominique Anderson, 26, Michael Cornelious, 27, Xavier Rashad Ross, 25, and Vanlisa Scott, 47, were each charged with one count of one count of conspiracy to interfere with commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence. Out of the twelve, nine have pleaded guilty, two are set for trial in January 2018, and one has not made an appearance in the Northern District of Texas.
According to plea documents filed in the case, in the early morning hours on November 17, 2013, Aitch, Jackson, Caldwell, Pearson, Flanagan, Solomon, Aitch, Thompson, Turner, Anderson, Cornelious, and Ross, traveled from Houston, Texas, to the Dallas, Texas, area with the specific intent to rob the Tilak Jewelers store located at 8300 North MacArthur Boulevard, Suite 100, Irving, Texas. They stole a cargo van and a minivan after they arrived in the Dallas, Texas, area in order to avoid detection and apprehension by law enforcement.
Jackson, Caldwell, Pearson, Turner, Anderson, and Ross drove together in the stolen cargo van to the Tilak Jewelers store, with the specific intent to commit the robbery. Aitch, Flanagan, and Thompson participated in planning the robbery and positioned themselves outside the Tilak Jewelers store, but maintained communications with Jackson for the purpose of monitoring the robbery and alerting the participants of the presence of law enforcement.
Prior to entering the Tilak Jewelers store, Jackson, Caldwell, Pearson, Turner, Anderson, and Ross disguised their identities by wearing longsleeved clothing, long pants, gloves, and items covering their faces. Jackson and the others entered the jewelry store by smashing the locked glass door with a hammer. After gaining entry into the store, they restrained the owners of the jewelry store with zip-ties, smashed jewelry display cases, and took jewelry from the owners and employees of Tilak Jewelers.
After securing the jewelry, Jackson, Caldwell, Pearson, Turner, Anderson, and Ross fled from the robbery using the stolen cargo van. They abandoned the cargo van at a predetermined location, where Solomon was waiting in the stolen minivan. Solomon then drove them to a second predetermined location, where Cornelious was waiting in a switch vehicle. Cornelious then used the switch vehicle to further facilitate their flight from the robbery and avoid detection and apprehension by law enforcement. Scott, who had traveled from Houston, met Pearson and the other coconspirators at a different location and took possession of the stolen jewelry for the purpose of safely transporting it to Houston, Texas.
The Irving Police Department, Houston Police Department, and the Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Keith Robinson was in charge of the prosecution.
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Hornell Money Mule Pleads to Wire FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Helen Jackson, 50, of Hornell, NY, pleaded guilty to wire fraud before U.S. District Judge Charles J. Siragusa. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Jackson agreed to receive money, which had been obtained by others through fraud, into her bank account and then forward the money to various individuals in Nigeria. When interviewed by a Special Agent with the Federal Bureau of Investigation regarding these transactions, the defendant claimed that she was not aware and that she was involved in a fraud. The FBI explained that she was participating in fraudulent activity, and directed her to cease accepting and forwarding any further money and Jackson agreed to stop. However, a few months later, the defendant resumed sending money to individuals in Nigeria. In total, Jackson forwarded at least $30,000 obtained by fraud from a victim.
The plea is the result of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Sentencing is scheduled for August 15, 2017, at 9:15 a.m., before Judge Siragusa.
Honduran Man Sentenced for Illegal Re-EntryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that LUIS GABRIEL RODRIGUEZ-RUIZ, age 33, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Indictment charging him with illegal re-entry of a removed alien.
U.S. District Judge Nannette Jolivette Brown sentenced RODRIGUEZ-RUIZ to time served (approximately 5 months’ imprisonment). RODRIGUEZ-RUIZ will be surrendered to the custody of U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on December 13, 2016, RODRIGUEZ-RUIZ was found in the United States after having been deported previously on February 14, 2013.
Acting U.S. Attorney Evans praised the work of the Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Emily K. Greenfield was in charge of the prosecution.
Harrison County woman sentenced for cocaine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jennifer Y. Lucas, 37, of Clarksburg, West Virginia, was sentenced today to 10 months incarceration for cocaine distribution, Acting United States Attorney Betsy Steinfeld Jividen announced.
Lucas pled guilty to one count of “Distribution of Cocaine Base” in January 2017. She sold cocaine in Harrison County in March of 2016.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, A HIDTA-funded initiative, investigated.
U.S. District Judge Irene M. Keeley presided.
Hampshire County woman convicted of heroin distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Bonnie Bishop of Bloomery, West Virginia, was convicted today of heroin distribution, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Bishop, age 31, pled guilty to one count of “Conspiracy to Distribute a Controlled Substance.” Bishop admitted to conspiring with others to distribute heroin in Hampshire County in July 2015.
Bishop faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Anna Z. Krasinski prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Guatemalan Man Pleads Guilty to Illegal Re-EntryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that HECTOR BARRIOS-PATINO, age 37, a citizen of Guatemala, pled guilty to a one-count Indictment for illegal re-entry of removed alien.
According to court documents, on February 5, 2017, BARRIOS-PATINO, was found in the United States after having been deported previously on July 31, 2009. faces a maximum term of imprisonment of ten years and a fine of $250,000, or the greater of twice the gross gain to the defendant, three years supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Nannette Jolivette Brown set sentencing for June 29, 2017.
BARRIOS-PATINO faces a maximum term of imprisonment of ten years and a fine of $250,000, or the greater of twice the gross gain to the defendant, three years supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Nannette Jolivette Brown set sentencing for June 29, 2017.
Acting U.S. Attorney Duane A. Evans praised the work of the U.S. Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Emily K. Greenfield is in charge of the prosecution.
Fredericksburg Gas Station Owner Pleads Guilty to Cigarette TraffickingRead the Press Release
RICHMOND, Va. – A Fredericksburg man pleaded guilty today to participating in a conspiracy to traffic contraband cigarettes.
According to the statement of facts filed with the plea agreement, Bernard Ekelemu, 60, directed another individual to purchase a Gulf gas station in Fredericksburg in November of 2013. Ekelemu then registered a Virginia corporation to operate that gas station, and obtained a “Certificate of Registration for the Collection of Virginia Sales and Use Tax” that exempted Ekelemu from paying the Virginia sales and use tax when making business purchases. Ekelemu opened business memberships at various wholesale clubs and with wholesale cigarette distributors in Virginia, and subsequently used those business memberships to make sales-tax-free purchases of more than $7.1 million worth of Virginia-stamped cigarettes between March 2014 and November 2016. Ekelemu stored those cigarettes at several locations in Virginia, to include storage units in Fredericksburg and Springfield, where Ekelemu would sell those cigarettes to cigarette traffickers. The traffickers thereafter smuggled those Virginia cigarettes north to New York State (among other locations), where they were sold as contraband cigarettes on the black market.
Ekelemu faces a maximum sentence of five years in prison when sentenced on August 16. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after U.S. District Judge M. Hannah Lauck accepted the plea. Assistant U.S. Attorney Thomas A. Garnett is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-46.
Fourth Defendant Pleads Guilty for Role in Multimillion Dollar India-Based Call Center Scam Targeting U.S. VictimsRead the Press Release
An Alabama woman pleaded guilty today to one count of conspiracy to commit money laundering for her role in liquidating and laundering victim payments generated through various telephone fraud and money laundering schemes via India-based call centers.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) and Inspector General John Roth of the U.S. Department of Homeland Security Office of Inspector General (DHS-OIG) made the announcement.
Nilam Parikh, 46, a resident of Pelham, Alabama, pleaded guilty before U.S. District Court Judge David Hittner of the Southern District of Texas. Sentencing is scheduled for Aug. 11, 2017.
According to admissions made in connection with the plea, Parikh and her co-conspirators perpetrated a complex scheme in which individuals from call centers located in Ahmedabad, India, impersonated officials from the IRS or U.S. Citizenship and Immigration Services (USCIS) in a ruse designed to defraud victims located throughout the United States. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money. Upon payment, the call centers would immediately turn to a network of "runners" based in the U.S. to liquidate and launder the fraudulently-obtained funds.
Since around December 2013, Parikh worked as a runner operating in Alabama. In connection with her plea, Parikh admitted that, at the direction of an India-based co-conspirator, often via electronic WhatsApp text communications, Parikh purchased reloadable cards registered with misappropriated personal identifying information of U.S. citizens. Once victim scam proceeds were loaded onto those cards, Parikh admitted that she liquidated the proceeds on the cards and transferred the funds into money orders for deposit into various bank accounts, while keeping part of the victim funds for herself as payment. Parikh also admitted to sending and receiving scam proceeds to and from her co-conspirators via Federal Express.
To date, Parikh, 55 other individuals and five India-based call centers have been charged for their roles in the fraud and money laundering scheme in an indictment returned by a federal grand jury in the Southern District of Texas on Oct. 19, 2016. Parikh is the fourth defendant thus far to plead guilty in this case. Co-defendants Bharatkumar Patel, Ashvinbhai Chaudhari and Harsh Patel pleaded guilty on April 13, 2017, April 26, 2017 and May 11, 2017, respectively.
The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
HSI, DHS-OIG and TIGTA led the investigation of this case. Also providing significant support were: the Criminal Division’s Office of International Affairs; Ft. Bend County, Texas, Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection and Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration, Office of Inspector General; IOC-2; INTERPOL Washington; USCIS; U.S. State Department’s Diplomatic Security Service; and U.S. Attorneys’ Offices in Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Illinois, Northern District of Indiana, District of Nevada and District of New Jersey. The Federal Communications Commission’s Enforcement Bureau also provided assistance in TIGTA’s investigation.
Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section, Trial Attorney Robert Stapleton of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel of the Southern District of Texas are prosecuting the case.
A Department of Justice website has been established to provide information about the case to already identified and potential victims and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the Federal Trade Commission (FTC) via this website.
Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.
Fourth Defendant Pleads Guilty for Role in Multimillion Dollar India-Based Call Center Scam Targeting U.S. VictimsRead the Press Release
HOUSTON – An Alabama woman pleaded guilty today to one count of conspiracy to commit money laundering for her role in liquidating and laundering victim payments generated through various telephone fraud and money laundering schemes via India-based call centers.
Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) and Inspector General John Roth of the U.S. Department of Homeland Security Office of Inspector General (DHS-OIG) made the announcement.
Nilam Parikh, 46, a resident of Pelham, Alabama, pleaded guilty before U.S. District Court Judge David Hittner of the Southern District of Texas. Sentencing is set for Aug. 11, 2017.
According to admissions made in connection with the plea, Parikh and her co-conspirators perpetrated a complex scheme in which individuals from call centers located in Ahmedabad, India, impersonated officials from the IRS or U.S. Citizenship and Immigration Services (USCIS) in a ruse designed to defraud victims located throughout the United States. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money. Upon payment, the call centers would immediately turn to a network of “runners” based in the U.S. to liquidate and launder the fraudulently-obtained funds.
Since around December 2013, Parikh worked as a runner operating in Alabama. In connection with her plea, Parikh admitted that, at the direction of an India-based co-conspirator, often via electronic WhatsApp text communications, Parikh purchased reloadable cards registered with misappropriated personal identifying information of U.S. citizens. Once victim scam proceeds were loaded onto those cards, Parikh admitted that she liquidated the proceeds on the cards and transferred the funds into money orders for deposit into various bank accounts, while keeping part of the victim funds for herself as payment. Parikh also admitted to sending and receiving scam proceeds to and from her co-conspirators via Federal Express.
To date, Parikh, 55 other individuals and five India-based call centers have been charged for their roles in the fraud and money laundering scheme in an indictment returned by a federal grand jury in the Southern District of Texas on Oct. 19, 2016. Parikh is the fourth defendant thus far to plead guilty in this case. Co-defendants Bharatkumar Patel, Ashvinbhai Chaudhari and Harsh Patel pleaded guilty on April 13, 2017, April 26, 2017 and May 11, 2017, respectively.
The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
HSI, DHS-OIG and TIGTA led the investigation of this case. Also providing significant support were: the Criminal Division’s Office of International Affairs; Ft. Bend County Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection and Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration, Office of Inspector General; IOC-2; INTERPOL Washington; USCIS; U.S. State Department’s Diplomatic Security Service; and U.S. Attorneys’ Offices in Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Illinois, Northern District of Indiana, District of Nevada and District of New Jersey. The Federal Communications Commission’s Enforcement Bureau also provided assistance in TIGTA’s investigation.
Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel of the Southern District of Texas, Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section and Trial Attorney Robert Stapleton of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case.
A Department of Justice website has been established to provide information about the case to already identified and potential victims and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the Federal Trade Commission (FTC) via this website.
Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.
Former business manager at Catholic Charities of Cleveland sentenced to more than five years in prison for stealing $2 million from the organizationRead the Press Release
The former business manager and comptroller for Cleveland Catholic Charities was sentenced to more than five years in prison for embezzling $2 million from the organization, said Acting U.S. Attorney David A. Sierleja and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Michelle Medrick, 58, of North Royalton, previously pleaded guilty to bank fraud. U.S. District Judge Christopher Boyko sentenced Medrick to 62 months in federal prison and ordered her to pay $2.4 million in restitution.
Medrick embezzled $2 million from Catholic Charities of the Diocese of Cleveland beginning in at least 2008 through last year.
She was employed as the comptroller and the business manager for Catholic Charities at Parmadale, a facility that provides a variety of services. She was responsible for payroll, accounts payable, accounts receivable and other financial transcations.
Medrick converted proceeds of client-agency and donor checks to cash, which she then put in her own bank accounty, according to court documents.
She wrote more than 1,400 checks payable to cash and misrepresented herself as the agency’s chief financial officer so she could withdraw cash from Catholic Charities bank accounts, according to court documents and statements.
“This defendant stole millions of dollars from the vulnerable men, women and children who are supported by the good works of Catholic Charities,” Sierleja said. “The Diocese uncovered the fraud, came forward to federal authorities and cooperated fully,”
The case is being prosecuted by Assistant U.S. Attorneys Adam Hollingsworth and Alex Rokakis following an investigation by the Federal Bureau of Investigation.
Former U.S. Secret Service Officer Sentenced to 20 Years in Prison for Enticement of a Minor and Attempting to Send Obscene Images to a MinorRead the Press Release
A Church Hill, Maryland, resident was sentenced today to 20 years in prison to be followed by a lifetime term of supervised release for enticement of a minor to engage in sexual activity and attempting to transfer obscene materials to a minor, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida.
Lee Robert Moore, 38, pleaded guilty March 1, 2017, before U.S. District Judge Daniel T. K. Hurley of the Southern District of Florida. Moore was employed by the U.S. Secret Service-Uniformed Division and was assigned to the White House at the time of his arrest on Nov. 9, 2015, and has remained in custody since that time. Moore has since been terminated from his Secret Service position.
According to admissions made in connection with his plea, Moore maintained a profile on the social media application “Meet24,” which provides a mobile-based platform for exchanging digital images, as well as voice and text messages. Delaware State Police Detectives with the Delaware Child Predator Task Force created a profile on this site, posing as a 14-year-old girl, with whom Moore engaged in a number of online chat sessions, via the “Meet24” and “Kik” mobile apps over a two-month period, including while Moore was at work. A number of the online chats between Moore and the undercover officers posing as a female minor were sexual in nature and, on several occasions, Moore sent pictures of himself, including one sexually explicit image.
According to the plea documents, after his arrest, law enforcement discovered that Moore had communicated with a minor in Florida. Moore admitted that in those communications, he sent sexually explicit images of himself and enticed the minor to send sexually explicit photos of herself as well. Moore engaged in the same type of behavior with a 14-year-old girl in Texas and another 17-year-old girl in Missouri. Moore requested that his federal charges in Delaware be transferred to the Southern District of Florida so that he could plead guilty to both charges at one time.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Delaware Child Predator Task Force investigated the case. Trial Attorney Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Corey Steinberg of the Southern District of Florida prosecuted the case, with assistance from the U.S. Attorney’s Office for the District of Delaware.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Former U.S. Secret Service Officer Sentenced to 20 Years in Prison for Enticement of a Minor and Attempting to Send Obscene Images to a MinorRead the Press Release
A Church Hill, Maryland, resident was sentenced today to 20 years in prison to be followed by a lifetime term of supervised release for enticement of a minor to engage in sexual activity and attempting to transfer obscene materials to a minor, announced Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division.
Lee Robert Moore, 38, pleaded guilty March 1, 2017, before U.S. District Judge Daniel T. K. Hurley of the Southern District of Florida. Moore was employed by the U.S. Secret Service-Uniformed Division and was assigned to the White House at the time of his arrest on Nov. 9, 2015, and has remained in custody since that time. Moore has since been terminated from his Secret Service position.
According to admissions made in connection with his plea, Moore maintained a profile on the social media application “Meet24,” which provides a mobile-based platform for exchanging digital images, as well as voice and text messages. Delaware State Police Detectives with the Delaware Child Predator Task Force created a profile on this site, posing as a 14-year-old girl, with whom Moore engaged in a number of online chat sessions, via the “Meet24” and “Kik” mobile apps over a two-month period, including while Moore was at work. A number of the online chats between Moore and the undercover officers posing as a female minor were sexual in nature and, on several occasions, Moore sent pictures of himself, including one sexually explicit image.
According to the plea documents, after his arrest, law enforcement discovered that Moore had communicated with a minor in Florida. Moore admitted that in those communications, he sent sexually explicit images of himself and enticed the minor to send sexually explicit photos of herself as well. Moore engaged in the same type of behavior with a 14-year-old girl in Texas and another 17-year-old girl in Missouri. Moore requested that his federal charges in Delaware be transferred to the Southern District of Florida so that he could plead guilty to both charges at one time.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Delaware Child Predator Task Force investigated the case. Assistant U.S. Attorney Corey Steinberg of the Southern District of Florida and Trial Attorney Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case, with assistance from the U.S. Attorney’s Office for the District of Delaware.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
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.
Former State Trooper Charged with Cyberstalking, Deprivation of Rights Under Color of LawRead the Press Release
COLUMBUS, Ohio – A former law enforcement officer has been arrested and charged by criminal complaint with cyberstalking and deprivation of rights under color of law.
William P. Elschlager, 48, of Marietta, Ohio, was arrested yesterday evening by Washington County Sheriff’s Office deputies and is scheduled for an initial appearance today in federal court in Columbus at 2:30pm before U.S. Magistrate Judge Terrence P. Kemp.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Washington County Sheriff Larry R. Mincks, Sr. announced the arrest.
According to the affidavit filed in support of the criminal complaint, Elschlager was a lieutenant with the Ohio State Highway Patrol in Marietta, Ohio, where he was the post commander. He had been employed with the Ohio State Highway Patrol for approximately 19 years.
Elschlager and the wife of a fellow Ohio State Highway Patrol Trooper engaged in a sexual affair from April to September 2015, at which point the victim described Elschlager as being “creepy.” Specifically, according to the victim, she found a large ball of hair in the defendant’s home that he said he had made from hair he found in his house and that she believed to be her hair.
The victim said she also discovered digital folders on Elschlager’s iPad labeled with women’s names that included pictures of the women taken from social media accounts. For example, the folder in her name included pictures of the victim with her husband cut out.
Finally, the victim stated she would awake to Elschlager taking photographs of her sleeping when she did not know he was in the home with her.
Elschlager allegedly began stalking the victim in October 2015 after she ended their relationship. The affidavit alleges that he frequently followed the victim in vehicles, texted her knowledge of her whereabouts and showed up at her residence unannounced.
In December 2015, Elschlager allegedly placed a GPS tracking device on the victim’s vehicle and conducted an unlawful traffic stop of the victim, during which time he turned off his audio recording. Around this time, Elschlager also allegedly told the victim that he had named her and her son on his life insurance policy. He had obtained their personal information from the personnel file of the victim’s husband.
During that same month, the victim’s vehicle broke down due to a missing radiator cap and Elschlager arrived on the scene. Search warrants obtained by the Washington County Sheriff’s Office for Elschlager’s residence and electronic devices revealed Internet searches such as “how long can a car go without a radiator cap.”
The victim said she became increasingly fearful of Elschlager and that on one occasion when she noted he was carrying guns on his person he responded: “I always have a gun on me. You’ve just never known it.”
Subsequent search warrants and investigation by the Washington County Sheriff’s Office in January 2016 showed GPS tracking software on Elschlager’s personal cell phone, which had been tracking the victim’s vehicle for two months. Investigators discovered video recordings and photographs taken through the window of a residence in which the victim was located. They also revealed law enforcement information and photographs generated from the driver’s licenses of at least 10 females on Elschlager’s personal computer. The females confirmed that they were stopped by an Ohio State Highway Patrol Trooper on the dates of the photographs; they could not verify the name of the trooper that stopped them.
Cyberstalking is a crime punishable by up to five years in prison. Deprivation of rights under color of law carries a potential maximum sentence of one year in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Washington County Sheriff’s Office, as well as Assistant United States Attorney Jessica H. Kim, who is prosecuting the case.
A criminal complaint merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Former Rockford Coach Sentenced to 22 Years for Producing Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN – Timothy Vallier, 31, of Ada, Michigan, was sentenced in federal court for attempted sexual exploitation of children and possession of child pornography, Acting U.S. Attorney Andrew Byerly Birge announced today. U.S. District Judge Gordon J. Quist imposed a sentence of 22 years. In addition to the prison term, Vallier was ordered to serve 5 years of supervised release, to pay restitution, and to register as a sex offender for the rest of his life.
On September 28, 2016, Vallier pled guilty to producing approximately 86 hidden camera videos of girls changing clothes at two high school facilities: the Rockford rowing team’s boathouse and the Rockford Freshman Center. He made these videos between January 2012 and April 2016 while he was the rowing coach at Rockford High School. The charges followed an investigation by the Kent County Sheriff’s Department, the Michigan State Police Internet Crimes Against Children Task Force, and Homeland Security Investigations.
"While no amount of prison time can adequately punish a child predator, this sentencing will hopefully begin the healing process for those impacted by Mr. Vallier's depraved acts," said HSI Acting Special Agent in Charge Steve Francis. "This was an excellent collaboration between HSI and its partners at the Kent County Sheriff’s Office and Michigan State Police to bring this predator to justice."
HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form. Both are staffed around the clock by investigators. From outside the U.S. and Canada, callers should dial 802-872-6199. Hearing impaired users can call TTY 802-872-6196. Information concerning suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1- 800-THE-LOST. For additional information about wanted suspected child predators, download HSI’s Operation Predator smartphone app or visit the suspect alerts page.
This case was prosecuted by Assistant U.S. Attorneys Tessa K. Hessmiller and Daniel Y. Mekaru as part of the Department of Justice’s Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office, county prosecutor’s offices, and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.
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Former New York Bank Manager and Two Others Charged in Manhattan Federal Court in Multimillion-Dollar Fraud and Money Laundering SchemeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today the filing of a criminal complaint charging CHITAKRA RAMUDIT, a/k/a “Lilian Ramudit,” LOUIS LITVIN, and MELISSA CHAN with conspiracy to commit bank fraud, bank fraud, and conspiracy to commit money laundering in a multimillion-dollar scheme to steal from a real estate company (“Company-1”), which was a client of a major retail bank in Manhattan at which RAMUDIT was a branch manager. LITVIN was Company-1’s chief financial officer, and CHAN was a bookkeeper for Company-1. RAMUDIT abused her position as a bank manager to help LITVIN and CHAN steal from Company-1, and RAMUDIT also separately stole more than $100,000 from two elderly account holders at the bank. RAMUDIT and CHAN were arrested and will be presented later today before the U.S. Magistrate Judge Gabriel W. Gorenstein. LITVIN was arrested in Florida this morning and was presented before a Magistrate Judge in the Southern District of Florida.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Chitrakra Ramudit, a former bank manager, allegedly abused her position to steal more than a million dollars from the bank’s customers, including elderly account holders. Together with Louis Litvin and Melissa Chan, who worked at a victim real estate company, Ramudit also worked to launder their fraud proceeds through various back office dealings. These defendants allegedly took advantage of their positions at the bank and the victim company to steal money and launder it through a series of opaque transactions.”
According to the Complaint[1] unsealed today in Manhattan federal court:
RAMUDIT is a former branch manager at a major retail bank in Manhattan (“Bank-1”), with significant management authority and control over large financial transactions. RAMUDIT abused her position and authority to steal more than $1 million from client accounts, including accounts held by Company-1 and elderly individual account holders. RAMUDIT conspired with LITVIN, Company-1’s former CFO, and CHAN, a former Company-1 bookkeeper, to steal from Company-1. The defendants carried out their scheme through various means, including fraudulent wire transfers, unauthorized writing and cashing of cashier’s checks, and unauthorized withdrawals from Company-1’s accounts. The defendants laundered the illicit proceeds from these schemes through multiple bank accounts, and used the illicit proceeds to purchase various assets.
RAMUDIT appears to have received substantial kickbacks from LITVIN and CHAN for facilitating their theft from Company-1. For example, in 2010 and 2011, RAMUDIT conducted several transactions to help LITVIN and CHAN steal approximately $400,000 from Company-1, for which RAMUDIT received approximately $175,000 in payments to a bank account she controlled that was in the name of a family member. RAMUDIT also helped CHAN and LITVIN steal money by permitting them to cash or deposit Company-1’s checks. RAMUDIT would often personally cash Company-1’s checks for CHAN and CHAN would meet at RAMUDIT’s office to receive the cash from RAMUDIT. Some of the money CHAN stole was invested into a Brooklyn-based restaurant, in which RAMUDIT was also an investor.
LITVIN, who solely controlled Company-1’s payroll system, separately also stole more than $7 million from Company-1 through its payroll account with Bank-1. After LITVIN’s theft through the payroll system was discovered, he was fired by Company-1, and CHAN discussed unleashing a virus on Company-1’s computer systems to corrupt their files and cover up the crimes.
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RAMUDIT, 56, of Queens, LITVIN, 63, of West Palm Beach, Florida, and CHAN, 38, of Queens, are each charged with conspiracy to commit bank fraud and bank fraud, each of which carries a maximum sentence of 30 years in prison, and conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. RAMUDIT and LITVIN are each also separately charged with an additional count of bank fraud, which carries a maximum sentence of 30 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Acting U.S. Attorney Kim praised the work of the Criminal Investigators of the United States Attorney’s Office for the Southern District of New York, and the agents of the Federal Bureau of Investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Eli J. Mark and Jacob Warren are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint forth herein constitute only allegations, and every fact described should be treated as an allegation.
Former EDD Employee Arrested for Unemployment Benefits Fraud and Identity Theft SchemeRead the Press Release
SACRAMENTO, Calif. — An 18-count indictment was unsealed today after two of five defendants were arrested today for unemployment benefits fraud and an identity theft scheme, U.S. Attorney Phillip A. Talbert announced.
The indictment charges Pamela Emanuel, 57, of San Jose; Gregory Lee, 55, of Antioch; Russell White III, 35, of Turlock; Brittany Maunakea, 27, of Turlock; and Sergio Reyna, 24, of Stockton with conspiracy to commit mail fraud and 16 counts of mail fraud. Emanuel and Lee are also charged with separate counts of aggravated identity theft. Emanuel and Reyna were arrested today and are scheduled to be arraigned at 2:00 p.m. today.
According to court documents, between April 13, 2013, and July 14, 2016, the defendants conspired to execute a scheme to defraud the state of California. Emanuel worked as a tax compliance representative for the California Employment Development Department. She used her position to access the personal identifying information of workers throughout California and gave that information to other members of the conspiracy who filed fraudulent unemployment claims in the names of the unknowing victims. When Emanuel contacted EDD to pose as a laid-off employee, she used a Virtual Private Network designed to mask her IP address in an attempt to hide her identity. When the defendants filed claims with EDD, they usually provided the name of a fake business as the claimant’s last employer. As a result, the victim’s true employer was not immediately notified that a claim was filed.
The scheme resulted in the conspirators receiving over $800,000 in fraudulent unemployment benefits and over 250 stolen identities.
This case is the product of an investigation by the United States Department of Labor, Office of Inspector General, the Federal Bureau of Investigation and the California Employment Development Department – Investigations Division. Assistant U.S. Attorney Jared C. Dolan is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count. Emanuel and Lee also face statutory mandatory minimum penalty of two years in prison for aggravated identity theft, which would run consecutive to any other sentence imposed. 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Bank Officer Pleads Guilty to Role in Mortgage Fraud ConspiracyRead the Press Release
Tampa, FL – Acting United States W. Stephen Muldrow announces that Ross D. Pickard (63, Naples) today pleaded guilty to conspiracy to commit loan and credit application fraud. He faces a maximum penalty of five years in federal prison.
According to the
plea agreement , Pickard was a senior loan officer at JP Morgan Chase Bank. He conspired with others in a scheme to defraud the bank by completing, certifying, and submitting mortgage loan applications on behalf of borrowers that contained false and fraudulent statements. The false statements included overinflated income and assets, understated liabilities, and false occupancy. By relying on Pickard’s false and fraudulent statements on the loan applications, JP Morgan Chase funded mortgage loans for otherwise unqualified borrowers.The approximate losses suffered by JP Morgan Chase Bank associated with Pickard’s criminal conduct exceeds $33 million.
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General and the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Special Assistant United States Attorney Chris Poor.
Final Group of Physicians and Owner of Medical Practice Plead Guilty in Medical Kickback SchemeRead the Press Release
Pam Gardner, 55, of Springfield, Tennessee, pleaded guilty yesterday, to conspiracy to solicit and receive cash kickbacks in exchange for making patient referrals, announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee.
During a hearing before U.S. District Court Judge Sean Cox, sitting by designation, Gardner admitted that, as the owner and operator of Medical Necessities, Inc., a medical practice located in Springfield, Tenn., she agreed to receive cash kickbacks in exchange for causing patients to be referred to Air Affiliates, a Nashville-based medical equipment provider. Gardner admitted to accepting at least $15,000 in cash kickbacks, in exchange for referring patients to Air Affiliates, who provided these patients with Durable Medical Equipment such as continuous positive airway pressure (“CPAP”) ventilators. Gardner further acknowledged that some of the patients she referred in exchange for cash payments were Medicare beneficiaries.
Gardner faces up to five years in prison and a $250,000 fine when she is sentenced on September 26, 2017.
Also yesterday, Torvis Gardner, 41, of Springfield, Tennessee, an employee at Medical Necessities, pleaded guilty to making or causing a false statement to be made in a claim under a federal health care program. He faces up to one year in prison and a fine of up to $10,000. Gardner is scheduled to be sentenced on September 26, 2017.
These guilty pleas follow several other recent convictions in this district involving individuals who paid for or accepted cash kickbacks in exchange for patient referrals, or who caused false statements to be made in claims submitted under a federal health care program:
- On May 8, 2017, Dr. Donald Boatright, 72, of Nashville, Tenn., a physician who practiced at Medical Necessities, pleaded guilty to making or causing a false statement to be made in a claim under a federal health care program. He faces up to one year in prison and up to a $10,000 fine when he is sentenced on September 26, 2017.
- April 25, 2017, Dr. Hailu Kabtimer, 57, a physician practicing in Hendersonville, Tennessee, pleaded guilty to making or causing a false statement to be made in a claim under a federal health care program. Kabtimer faces up to one year in prison and up to a $10,000 fine when he is sentenced on August 22, 2017.
- On February 19, 2016, Dr. Bruce Rubinowicz, 54, of Aventura, Florida and previously of Franklin, Tennessee, pleaded guilty to one count of soliciting and receiving a cash kickback in exchange for making patient referrals to Air Affiliates. Rubinowicz faces up to five years in prison and a $25,000 fine when he is sentenced on July 31, 2017.
- On August 6, 2015, Bradley Sensing, 55, of Nashville, Tenn. and the owner of Air Affiliates, pleaded guilty to one count of conspiring to pay cash kickbacks in exchange for patient referrals. Sensing is scheduled to be sentenced on June 26, 2017.
All sentences will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of Inspector General, and the Tennessee Bureau of Investigation. The United States is represented by Assistant U.S. Attorney Thomas J. Jaworski.
Federal Bribery and Tax Charges Filed Against Former Reeves County Judge Jimmy GalindoRead the Press Release
Former Reeves County Judge Jimmy Galindo faces federal bribery and income tax related charges announced United States Attorney Richard L. Durbin, Jr.; Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division; and, Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter, San Antonio Division.
Today, the United States Attorney’s Office for the Western District of Texas filed an Information charging Galindo, age 53, of Selma, TX, with one count of conspiracy to commit bribery and one count of failure to file income tax returns.
Galindo served as County Judge for Reeves County from January 1995 through December 2006. The Information states that as an elected official, Galindo had a fiduciary duty to the people of Reeves County. Galindo, on behalf of Reeves County, negotiated a contract with a company owned by Vernon C. Farthing, III, of Lubbock, TX, to provide medical services for inmates located in the Reeves County Correctional Center. Galindo signed the contract on September 13, 2006. The Information alleges that Galindo conspired with Farthing and District 19 Texas State Senator Carlos Uresti to ensure that Farthing’s company was awarded that contract.
According to the Information, Galindo provided Farthing’s company with information not known to the general public about pricing which under the contract was more favorable to Farthing’s company than to Reeves County. To secure the contract, the Information states that Farthing agreed to hire Uresti as a consultant and pay him $120,000 year. Uresti, in turn, agreed to pay Galindo one-half the money he received from Farthing’s company. From September 2006 until December 2011, Farthing’s company paid Uresti approximately $600,000. Of that amount, Galindo received approximately $285,000. From January 2012 until December 2015, Farthing’s company, and its successor companies, paid Uresti approximately $252,500. Of that, Uresti paid Galindo approximately $116,740. The Information also alleges that Galindo failed to file individual income tax returns for the years 2004 to the present.
Upon conviction, Galindo faces up to five years in federal prison on the bribery charge and up to one year in federal prison on the tax charge. Galindo’s initial appearance date has yet to be scheduled.
A federal grand jury indictment, returned Tuesday in San Antonio, charges District 19 Texas State Senator Carlos I. Uresti and 44–year-old Vernon C. Farthing, III, of Lubbock, TX, with one count of conspiracy to commit bribery and one count of conspiracy to commit money laundering.
U.S. Magistrate Judge Henry Bemporad released Farthing on bond following his initial appearance this morning in San Antonio. Judge Bemporad released Uresti on bond following his initial appearance yesterday.
The FBI’s Pubic Corruption Task Force is conducting this investigation. The Task Force is comprised of investigators from the FBI, IRS-CI, Texas Department of Public Safety (DPS) and the Peace Corps-Office of Inspector General. Assistant United States Attorneys Joseph E. Blackwell, William R. Harris and Mark Roomberg are prosecuting this case on behalf of the Government.
It is important to note that an information and indictment are merely charges and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Fayette County man pleads guilty to federal methamphetamine crimeRead the Press Release
CHARLESTON, W.Va. – A Fayette County man pleaded guilty today to a federal drug charge, announced United States Attorney Carol Casto. Michael Terrell, 31, of Smithers, entered his guilty plea to possession with intent to distribute methamphetamine.
Terrell admitted that on December 8, 2015, he possessed over 160 grams of methamphetamine at his residence in Smithers that he intended to sell. Agents of the Central West Virginia Drug Task Force discovered the drugs during the execution of search warrant at Terrell’s residence. Prior to executing the search warrant, agents utilized a confidential informant to buy methamphetamine from Terrell at his residence on December 3 and again on December 6, 2015. During the execution of the search warrant, agents also seized approximately $10,000 cash that included prerecorded buy money used in each of the controlled buys.
Terrell faces up to 20 years in federal prison when he is sentenced on August 10, 2017.
The Central West Virginia Drug Task Force conducted the investigation. Assistant United States Attorney John Frail is in charge of the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.
This prosecution is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Drug Distributor and Member of Upstate Drug Conspiracy Sentenced to Twelve Years ImprisonmentRead the Press Release
Columbia, South Carolina --- United States Attorney Beth Drake announced today that Sergio Smith, age 31, was sentenced today in federal court to 12 years imprisonment followed by 10 years of supervised release. Smith was a member of a drug trafficking organization that operated for approximately 13 years in multiple states, including South Carolina, Louisiana, Alabama, Georgia, and Texas. During the course of the conspiracy, members of the conspiracy distributed millions of dollars’ worth of cocaine, crack cocaine, and marijuana.
This prosecution was part of the US Attorney’s Office’s Organized Crime and Drug Enforcement Task Force (OCDETF) efforts. OCDETF is a program administered by the Department of Justice that targets large scale, multi-state drug trafficking organizations.
Smith worked for co-defendant Walter Lee, and distributed cocaine and crack cocaine in Anderson, South Carolina. Moorman told the Court during proceedings that Smith’s prior criminal history, his participation in the conspiracy, and his conduct after his arrest warranted a lengthy prison sentence.
During the course of the investigation, law enforcement seized in excess of $1.5 million in U.S. Currency, over 5 kilograms of cocaine, quantities of marijuana and crack cocaine, and numerous firearms.
The Drug Enforcement Administration, the Internal Revenue Service, the Anderson County Sheriff’s Office, the Anderson Police Department, the Greenville County Sheriff’s Office, the Greenville Department of Public Safety, the Cherokee County Sheriff’s Office, the South Carolina Highway Patrol, the Richland County Sheriff’s Office, the South Carolina Law Enforcement Division, the Franklin County (GA) Sheriff’s Office, and the Douglas County (GA) Sheriff’s Office investigated the case. Assistant US Attorneys Andy Moorman, Bill Watkins, and Jeanne Howard of the Greenville office prosecuted the case.
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Citizen of Honduras Charged with Illegal ReentryRead the Press Release
Franklin Renan Euceda, a/k/a “Nathaniel Fuentes,” “Nathanael Ortiz,” and “Nathanael Ortiz-Fuentes,” was charged today by Indictment with illegal reentry after deportation, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about May 10, 2016, Euceda, an alien, and native and citizen of Honduras, was found in the United States after having been deported from the United States on or about June 26, 2009.
If convicted the defendant faces a maximum possible sentence of two years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Mark B. Dubnoff.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Charleston drug dealer pleads guilty to federal heroin crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Albert Bowman, Jr., 40, entered his guilty plea to distribution of heroin.
Bowman admitted that on July 5, 2016, he sold heroin to a confidential informant working with law enforcement. The controlled purchase took place inside Bowman’s residence on Russell Street in Charleston. Officers also executed a search warrant at the residence and located cash, additional drugs, and firearms. Bowman additionally admitted that he had distributed over 130 grams of heroin in the months leading up to the search warrant.
Bowman faces up to 20 years in federal prison when he is sentenced on August 14, 2017.
The investigation was conducted by the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Haley Bunn is responsible for the prosecution. United States District Judge Thomas E. Johnston is presiding over the case.
This case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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CarMax Carjacker Sentenced to 108 Months in PrisonRead the Press Release
A Fort Lauderdale resident was sentenced yesterday to 108 months in prison by United States District Judge William Zloch for violently carjacking a CarMax employee.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), Patrick Lynn, Chief, Davie Police Department, and W. Howard Harrison, Chief, Plantation Police Department, made the announcement.
Defendant Joshua Maxwell 28, of Fort Lauderdale, Florida, previously pled guilty to one count of carjacking, in violation of, Title 18, United States Code, Section 2119(1).
According to the court record, on November 11, 2016, defendant Maxwell entered the CarMax dealership located in Davie, Florida pretending to be a bona fide customer, and inquired about a 2012 Dodge Charger that was on the lot. He thereafter provided a driver’s license in order to take a test drive. Upon checking Maxwell’s name in the CarMax database, the salesman learned that the defendant had previously been entered into their system and had, in fact, visited that same CarMax location one-day prior. Maxwell went on the test drive of the Charger with the salesman and as they were nearing the end of the test drive, the salesman asked the defendant to stop the car so that they could switch positions and drive the Charger back into the CarMax lot. Maxwell, while in the driver’s seat, then assaulted the salesman by repeatedly striking him on the head with a copper metal pipe that he had secreted in his pocket. The salesman attempted to escape, but Maxwell continued to beat him and ultimately stabbed him in the chest. Maxwell fled in the 2012 Dodge Charger, and left the wounded salesman in the roadway. The victim was subsequently transported to a medical trauma center with serious injuries. Ultimately, Maxwell was arrested by law enforcement and admitted to committing the carjacking.
Mr. Greenberg commended the investigative efforts of the FBI, BSO, Davie Police Department and the Plantation Police Department. The case was prosecuted by Assistant U.S. Attorney Jodi L. Anton.
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
Bismarck Man Sentenced for Receipt of Child PornographyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Bismarck, North Dakota, man convicted of Receipt of Images Depicting the Sexual Exploitation of Minors, was sentenced on May 17, 2017, by U.S. District Judge Ralph R. Erickson, in Fargo, North Dakota.
Michael David Rivera, age 30, was sentenced to 7 years in custody, 5 years of supervised release, a $100 special assessment to the Federal Crime Victims Fund, and a $2,500 special assessment to the Domestic Trafficking Victims’ Fund.
Rivera was indicted by a North Dakota grand jury on October 6, 2016. The U.S. Attorney’s Office, District of South Dakota, handled prosecution of the case after the U.S. Attorney’s Office, District of North Dakota, recused itself from the matter. Rivera pled guilty on January 26, 2017.
“It is appropriate that this former federal law enforcement officer faced a federal judge in North Dakota for his offenses. This case proves that no one is above the law, including those federal officers who have previously sworn an oath to protect and serve our nation,” said Seiler. “Here, the U.S. Attorney’s Office for the District of North Dakota followed approved Department of Justice procedures to resolve any conflict or the appearance of impropriety it might have had, based upon its prior work alongside this disgraced officer. Appropriate steps were taken, as is done in every case, regardless of who the defendant is, to see that justice is done.” Seiler also commended the federal judiciary in Bismarck, which took steps to transfer the case to Fargo, since Rivera had a working relationship with courthouse employees in Bismarck.
The charge stems from the following facts:
In June 2016, Bismarck and other North Dakota state and federal law enforcement officers learned that Rivera, then a Deputy U.S. Marshal who worked at the federal courthouse in Bismarck, had been surreptitiously recording a variety of women, including juveniles, while they were in fitting rooms or in other parts of area stores. Some of the surreptitious recordings captured women and minors in various states of undress while they were in fitting rooms provided by local stores. Officers obtained search warrants to search Rivera’s Bismarck apartment, his vehicle parked at the federal courthouse in Bismarck, and his person, and to particularly look at any digital or computer media found at those locations. At his apartment, officers seized a computer that was password protected. Rivera was arrested on state charges related to the surreptitious recording of the adult and juvenile females, which were separately handled by in state court by authorities in Burleigh County, North Dakota.
Officers searched Rivera’s computer and found downloaded videos and images, including 36 or more pictures of child pornography and 52 or more videos of child pornography. A review of some of the downloaded videos, as a brief sample, included the sexual abuse of children, including toddlers and other children in the age range of 6 to 11. About 52 child pornography files, including mostly videos, were found in a user directory labeled “Michael” on Rivera’s computer.
The search also revealed artifacts in bookmarks, cache records, web history, and web visits. Some of those internet artifacts are commonly associated with child pornography and voyeur search artifacts. Internet access logs on the computer indicate some of the child pornography was received and accessed by Rivera between April 2016 and June 2016, in the District of North Dakota. The internet was used by Rivera to access visual depictions of minors engaging in sexually explicit conduct.
Rivera no longer is employed with U.S. Marshals Service.
The investigation was conducted by the Department of Homeland Security Homeland Security Investigations, Bismarck Police Department, North Dakota Crime Bureau’s Internet Crimes Against Children Task Force, and the Office of the Inspector General for the U.S. Department of Justice. Assistant U.S. Attorney Tim Maher is prosecuting the case on behalf of the U.S. Attorney General and U.S. Attorney Seiler. Based upon the request of the parties, Rivera was remanded back to state authorities to face his state court sentencing later this summer.
Attorney General Jeff Sessions Welcomes the Confirmation of Rachel Brand as Associate Attorney GeneralRead the Press Release
Attorney General Jeff Sessions today welcomed the confirmation of Rachel Brand to serve as the Department of Justice’s Associate Attorney General:
“I am pleased that the U.S. Senate has confirmed Rachel Brand to serve as Associate Attorney General, the third-ranking position in the Department of Justice. Rachel has proven herself to be a brilliant lawyer – graduating from Harvard Law School, clerking for Justice Anthony Kennedy and working in private practice, earning the respect of the entire legal community throughout her career. She is also a dedicated public servant who is strongly committed to upholding the rule of law and our Constitution, and she knows this Department well, having previously served with distinction as the Assistant Attorney General for the Office of Legal Policy. I know the entire Department of Justice joins me in congratulating her, and we look forward to her assuming her critical role in the Department. The Associate Attorney General has supervision over a number of key divisions: Antitrust Division, Civil Division, Civil Rights Division, Environment and Natural Resources Division, Tax Division, Office of Justice Programs, Community Oriented Policing Services (COPS), Community Relations Service, Office of Dispute Resolution, Office on Violence Against Women, Office of Information Policy, Executive Office for U.S. Trustees, Foreign Claims Settlement Commission, and the Servicemembers and Veterans Initiative.”
Athol Man Pleads Guilty to Possession of Child PornographyRead the Press Release
BOSTON – An Athol man pleaded guilty today in federal court in Worcester to possession of child pornography.
Arthur Cummings, 49, pleaded guilty before U.S. District Court Judge Timothy S. Hillman, who scheduled sentencing for July 11, 2017.
On March 10, 2016, federal agents executed a search warrant at Cummings’ residence based upon an investigation into individuals who use anonymizing software to traffic in child pornography on the “dark web,” a part of the internet accessible only by special software allowing users to remain anonymous. A forensic review of a laptop seized from Cummings’ home revealed the presence of more than 10 videos and more than 100 images of child pornography.
The charging statute provides for a sentence of no greater than 20 years in prison, a minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Athol Police Chief Russel Kleber, made the announcement today. Assistant U.S. Attorney Mark J. Grady of Weinreb’s Worcester Branch Office is prosecuting the case.
Anchorage Man Sentenced to 10 Years in Prison for Possession of Child PornographyRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that an Anchorage man was sentenced yesterday in federal court for possession of child pornography and failure to register as a sex offender.
Andrew Weed, 48, of Anchorage, was sentenced by U.S. District Judge Sharon L. Gleason, to 10 years in prison. Judge Gleason sentenced Weed to a combined sentence of 10 years imprisonment, and lifetime Supervised Release for his convictions on crimes of Child Sexual Exploitation-Possession of Child Pornography, and Failure to Register as a Sex Offender.
According to Assistant U.S. Attorney Audrey J. Renschen, Weed was previously convicted in Anchorage federal court in 2004, as a sex offender. At that time, Weed was convicted of 18 federal child sexual exploitation crimes, including advertising, transporting, and possessing child pornography. Weed was again caught with child pornography in 2016 that he downloaded at work, and saved at his residence.
FBI Special Agents and APD law enforcement searched Weed’s residence on May 31, 2016, pursuant to a federal search warrant, and found over 106,000 images of child pornography on his computer. After briefly talking to law enforcement that day, outside his residence, Weed fled Anchorage, and thereafter failed to report to work with his employer, and failed to return to his residence. Under federal law, sex offenders are required to notify the State of Alaska Sex Offender Registry within 24 hours of any change of address. Despite knowing about that requirement, Weed failed to report where he moved after leaving his Anchorage residence.
The U.S. Marshals Service (USMS) located Weed in Valdez, Alaska, more than two months later. Deputy Marshals arrested him on Aug. 2, 2016, on a federal warrant for failing to update his sex offender registration as required under federal and state law. Weed was then subsequently indicted on child pornography charges, and remained incarcerated after his arrest through his sentencing.
At the sentencing hearing, Judge Gleason noted that Weed’s child pornography crime was a serious one, with a huge amount of images involved [more than 106,000 images].
This prosecution is part of the Department of Justice’s ongoing Project Safe Childhood (PSC) initiative – launched to increase federal prosecutions of sexual predators of children, and to reduce the number of Internet crimes against children including child pornography trafficking. As a part of PSC, the United States Attorney’s Office has teamed with federal, state and local agencies and organizations to increase law enforcement presence on the Internet, and to educate the public about safe Internet use, thereby reducing the risk that children might fall prey to online sexual predators. For additional information on the PSC initiative, please go to www.projectsafechildhood.gov or call the United States Attorney’s Office for the District of Alaska.
Acting U.S. Attorney Schroder commends the FBI, APD, and the USMS for their investigation of this case.
Anchorage Insurance Sales Woman Sentenced on Charges of Bank Fraud and Aggravated Identity TheftRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that an Anchorage woman has been sentenced to 54 months on one count of Bank Fraud and one count of Aggravated Identity Theft.
Kara Hayden, Jr., 50, of Anchorage, was sentenced by U.S. District Court Judge Sharon L. Gleason.
According to Assistant U.S. Attorney Aunnie Steward, who prosecuted the case, from at least October 2014 to December 2015, Hayden applied for seventeen credit cards using the names, social security numbers, and dates of birth of nine different victims without their knowledge or authorization. Several of the victims had purchased veteran’s funeral benefits from Hayden. Hayden then used their personal information obtained during that process to fraudulently apply for credit cards. Hayden obtained approximately $14,500 in cash and retail goods prior to the discovery of her scheme.
A pleading filed with the court indicated that Hayden had also worked as an agent selling identity theft protection for nine years and was uniquely aware of the adverse consequences associated with identity theft. See Hayden’s LinkedIn profile below:
Judge Gleason noted that the defendant’s crimes were particularly serious because she targeted veterans who have served our country.
Acting U.S. Attorney Bryan Schroder commends the U.S. Postal Inspection Service, assisted by the Alaska State Insurance Division, for the investigation in this case.