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2 July 2017
Porcupine Man Found Guilty of Second Degree MurderRead the Press Release
United States Attorney Randolph J. Seiler announced that Marlin Iron Crow, age 44, of Porcupine, South Dakota, was found guilty of Second Degree Murder as a result of a federal trial in Rapid City, South Dakota. The jury returned the verdict on June 30, 2017.
The charge carries a maximum penalty of up to life in custody and/or a $250,000 fine, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
The conviction stems from Iron Crow killing the male victim on November 11, 2016, at Porcupine by beating him with his hands and shod feet
This case was investigated by the Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Megan Poppen prosecuted the case.
A sentencing date will be set. Iron Crow was remanded to the custody of the U.S. Marshals Service pending sentencing.
Eighth Circuit Court of Appeals Affirms Conviction and 30 Year Sentence for Assault and Domestic Assault by a Habitual OffenderRead the Press Release
United States Attorney Randolph J. Seiler announces that the Eighth Circuit Court of Appeals has affirmed the district court in appeal no. 16-3483, United States of America, appellee, v. Denny Johnson, Sr., appellant.
Johnson lived in Kenel, South Dakota, on the Standing Rock Indian Reservation. He sexually assaulted and restrained his victim over the course of several weeks in December 2013 and January 2014.
Following a trial, a jury found Johnson guilty of two counts of aggravated sexual abuse, one count of assault with a dangerous weapon, one count of simple assault, and one count of domestic assault by a habitual offender. He was sentenced to 30 years of imprisonment, followed by five years of supervised release.
On appeal, Johnson argued that the district court should have excluded various pieces of evidence and should have allowed evidence about the victim’s past actions. He also argued about the sentencing court’s inclusion of certain sentencing enhancement based on his victim’s vulnerability and his obstruction of justice. The Eighth Circuit affirmed the district court in all respects. In particular, the Court discussed at length the value and credibility of the expert testimony provided by the executive director of the South Dakota Network Against Family Violence and Sexual Assault.
U.S. Attorney Seiler reflected on the decision, “It’s another great example of the fine work being done by our office and our partners to bring justice to domestic abusers.”
Assistant U.S. Attorney Troy Morley prosecuted the case at trial and handled the appeal for the government. The case was investigated by the Federal Bureau of Investigation.
30 June 2017
York County Man Sentenced to 15 Years’ Imprisonment for Being A Felon in Possession of A FirearmRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Reginald L. Lomax, Jr., age 32, of York, Pennsylvania, was sentenced on June 28, 2017, by United States District Court Judge William W. Caldwell to 15 years’ imprisonment for being a felon in possession of a firearm.
According to U.S. Attorney Bruce D. Brandler, in December 2014, Lomax, Jr. was found to be unlawfully in possession of a firearm (Jennings, Model J22, .22 caliber semi-automatic pistol) in York County. Lomax is a convicted felon, making it illegal for him to possess a firearm. In addition, Lomax, Jr. was designated an “Armed Career Criminal” by virtue of his prior criminal record which included three felony drug trafficking convictions and subjected him to the minimum mandatory 15 year term.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the York City Police Department. Assistant U.S. Attorney James T. Clancy prosecuted the case.
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Williamsville Woman Pleads Guilty to Stealing Social Security Retirement BenefitsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Diane Cleversley, 68, of Williamsville, NY, pleaded guilty to theft of social security retirement benefits, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that the defendant failed to notify the Social Security Administration of her mother’s death in 2001. As a result, social security checks continued to be issued and deposited into a joint savings account held by Cleversley and her mother. The defendant transferred funds from the joint savings account into her own checking account. Cleversley, a retired social worker, stole a total of $176,405 between July 2001 and February 2017.
The plea is the result of an investigation by the Office of the Inspector General of the Social Security Administration, under the direction of Special Agent-in-Charge John Grasso.
Sentencing is scheduled for October 2, 2017, at 12:00 pm before Judge Arcara.
Wildboys Gang Member Convicted for Violent Crime in Aid of Racketeering and Related Firearm OffenseRead the Press Release
A federal jury in Charleston, South Carolina, yesterday convicted a member of the Wildboys gang of attempted murder in aid of racketeering and discharge of a firearm during and in relation to a crime of violence, announced Acting Assistant Attorney Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge C.J. Hyman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Charlotte, North Carolina Field Division; Solicitor Duffie Stone of the 14th Judicial Circuit; Solicitor David Pascoe of the First Circuit; Sheriff R.A. Strickland of the Colleton County, South Carolina Sheriff’s Office; Chief Wade Marvin of the Walterboro, South Carolina Police Department; Sheriff Al Cannon, Jr. of the Charleston County, South Carolina Sheriff’s Office; Sheriff L. C. Knight of the Dorchester County, South Carolina Sheriff’s Office; Chief Jon Rogers of the Summerville, South Carolina Police Department; Director Jerry Adger of the South Carolina Department of Probation, Parole and Pardon Services; and Chief Mark Keel of the South Carolina Law Enforcement Division.
Devin Brown, aka “Deno Badazz,” 23, of Walterboro, S.C., was convicted of violent crime in aid of racketeering activity and discharge of a firearm during and in relation to a crime of violence as a result of his involvement in the April 7, 2015, attempted murder of individuals believed to be rival gang members. Brown faces a minimum mandatory term of 10 years in prison on the firearms charge.
According to evidence presented at trial, the defendant was a member of the Wildboys, a violent street gang from the Green Pond area of Walterboro, S.C. Evidence at trial showed that beginning as early as 2012, Wildboys gang members engaged in racketeering activity, to include an April 9, 2012, robbery in Walterboro, and a March 18, 2015, attempted murder in Summerville, S.C.
Evidence presented at trial also showed that Brown, along with two other members of the Wildboys, committed racketeering acts, including the April 7, 2015 shooting at the home of a rival gang member in the Dooley Hill area of Walterboro. According to the trial evidence, on that date, Brown and two other members of the Wildboys drove past the home of the rival gang members and used assault-type firearms to shoot into the home. An innocent bystander inside the home was shot and injured, the evidence showed.
Four individuals previously pleaded guilty to violent crime in aid of racketeering related to their involvement in the Wildboys gang. On June 2, 2017, U.S. District Judge Richard M. Gergel of the District of South Carolina sentenced Wildboys members and associates Kelvin Mitchell, Damien Robinson, and Brian Manigo for their roles in gang-related racketeering activities. Sentencing is pending for Wildboys member Joshua Manigault.
The case was investigated by the ATF, Charleston, South Carolina, in partnership with the Walterboro Police Department; Colleton County Sheriff’s Office; Charleston County Sheriff’s Office; Dorchester County Sheriff’s Office; Summerville Police Department; Fourteenth Judicial Circuit Solicitor’s Office; First Judicial Circuit Solicitor’s Office; South Carolina Department of Probation, Parole and Pardon Services; and the South Carolina Law Enforcement Division.
The case was prosecuted by Trial Attorney Leshia Lee-Dixon of the Criminal Division’s Organized Crime and Gang Section and Tameaka A. Legette, Special Assistant U.S. Attorney from the Fourteenth Judicial Circuit Solicitor’s Office, Bluffton, South Carolina.
Wildboys Gang Member Convicted for Violent Crime in Aid of Racketeering and Related Firearm OffenseRead the Press Release
WASHINGTON – A federal jury in Charleston, South Carolina, yesterday convicted a member of the Wildboys gang of attempted murder in aid of racketeering and discharge of a firearm during and in relation to a crime of violence, announced Acting Assistant Attorney Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge C.J. Hyman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Charlotte, North Carolina Field Division; Solicitor Duffie Stone of the 14th Judicial Circuit; Solicitor David Pascoe of the First Circuit; Sheriff R.A. Strickland of the Colleton County, South Carolina Sheriff’s Office; Chief Wade Marvin of the Walterboro, South Carolina Police Department; Sheriff Al Cannon, Jr. of the Charleston County, South Carolina Sheriff’s Office; Sheriff L. C. Knight of the Dorchester County, South Carolina Sheriff’s Office; Chief Jon Rogers of the Summerville, South Carolina Police Department; Director Jerry Adger of the South Carolina Department of Probation, Parole and Pardon Services; and Chief Mark Keel of the South Carolina Law Enforcement Division.
Devin Brown, aka “Deno Badazz,” 23, of Walterboro, S.C., was convicted of violent crime in aid of racketeering activity and discharge of a firearm during and in relation to a crime of violence as a result of his involvement in the April 7, 2015, attempted murder of individuals believed to be rival gang members. Brown faces a minimum mandatory term of 10 years in prison on the firearms charge.
According to evidence presented at trial, the defendant was a member of the Wildboys, a violent street gang from the Green Pond area of Walterboro, S.C. Evidence at trial showed that beginning as early as 2012, Wildboys gang members engaged in racketeering activity, to include an April 9, 2012, robbery in Walterboro, and a March 18, 2015, attempted murder in Summerville, S.C.
Evidence presented at trial also showed that Brown, along with two other members of the Wildboys, committed racketeering acts, including the April 7, 2015 shooting at the home of a rival gang member in the Dooley Hill area of Walterboro. According to the trial evidence, on that date, Brown and two other members of the Wildboys drove past the home of the rival gang members and used assault-type firearms to shoot into the home. An innocent bystander inside the home was shot and injured, the evidence showed.
Four individuals previously pleaded guilty to violent crime in aid of racketeering related to their involvement in the Wildboys gang. On June 2, 2017, U.S. District Judge Richard M. Gergel of the District of South Carolina sentenced Wildboys members and associates Kelvin Mitchell, Damien Robinson, and Brian Manigo for their roles in gang-related racketeering activities. Sentencing is pending for Wildboys member Joshua Manigault.
The case was investigated by the ATF, Charleston, South Carolina, in partnership with the Walterboro Police Department; Colleton County Sheriff’s Office; Charleston County Sheriff’s Office; Dorchester County Sheriff’s Office; Summerville Police Department; Fourteenth Judicial Circuit Solicitor’s Office; First Judicial Circuit Solicitor’s Office; South Carolina Department of Probation, Parole and Pardon Services; and the South Carolina Law Enforcement Division.
The case was prosecuted by Trial Attorney Leshia Lee-Dixon of the Criminal Division’s Organized Crime and Gang Section and Tameaka A. Legette, Special Assistant U.S. Attorney from the Fourteenth Judicial Circuit Solicitor’s Office, Bluffton, South Carolina.
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Washington County Felon Back in Federal PrisonRead the Press Release
PITTSBURGH - A resident of Washington, Pennsylvania, was sentenced in federal court on June 28, 2017 to an additional 24 months of federal incarceration after violating his federal supervision, Acting United States Attorney Soo C. Song announced today.
United States District Judge Nora Barry Fischer imposed the latest federal sentence on Zack James Sadler, age 32.
According to information presented to the court, Sadler had failed to report his address to United States Probation Officers as required and was then arrested on several different alleged gun-related offenses in Washington County. Most of those cases were dropped for reasons that include the victims failing to show in court, however, he was convicted of Recklessly Endangering Another Person and Illegally Possessing a Concealed Firearm charges at one Washington County case.
Prior to imposing sentence, Judge Fischer noted that Sadler was on supervision for being a Felon in Possession of a Firearm at one case in federal court where he was sentenced to 60 months of incarceration. Sadler received another 15 months of incarceration when charged with escaping from a halfway house after his release from federal custody. Prior court hearings revealed that Sadler has previous convictions for illegal firearm possession, assaults, drugs, burglary and shooting at civilians.
Assistant United States Attorney Ross E. Lenhardt of the Violent Crime Section of the Office of the United States Attorney prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Washington City Police Department and the United States Probation Office for the investigation leading to the successful prosecution of Sadler.
U.S. Attorney Charges Wilton Town Clerk with EmbezzlementRead the Press Release
BIRMINGHAM – Federal prosecutors today charged the former town clerk of Wilton with embezzling from the Shelby County town, announced Acting U.S. Attorney Robert O. Posey and FBI Acting Special Agent in Charge David W. Archey.
In a one-count information filed in U.S. District Court, the U.S. Attorney’s Office charged APRIL PRICE ROMERO, 31, of Thorsby, with embezzling $8,752 from Wilton between Jan. 1, 2016, and May 17, 2016, while she was the town clerk.
“Whether they are elected or appointed, public officials are servants of the public's interest,” Archey said. “While the vast majority of public officials are honest, those who are not should know that there is no acceptable level of corruption, and my office is dedicated to rooting out corruption at every level. If you have information about public corruption, call our tip line at 844-404-TIPS, and tell us what you know."
In conjunction with the information, prosecutors also filed a plea agreement with Romero in which she acknowledges the charges and pledges to plead guilty to them.
As town clerk, Romero had access to and signature authority on all of the Town of Wilton’s bank accounts. According to her plea agreement, Romero stole from the town by making unauthorized disbursements from the town’s accounts and converting the money to her personal use.
As part of the plea agreement, Romero will pay $17,216 in restitution to the town and forfeit $8,752 to the government as proceeds of illegal activity.
The maximum penalty for embezzlement is 10 years in prison and a $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney Pat Meadows is prosecuting.
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Two Joplin Men Sentenced for Attempted Armed Bank Robbery Foiled by CustomerRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that two Joplin, Mo., men were sentenced in federal court today for the attempted armed robbery of Pinnacle Bank in Joplin.
Sean LaDue, 30, and Jimmy Eisenhour, 37, both of Joplin, were sentenced in separate appearances before U.S. District Judge Stephen R. Bough. LaDue was sentenced to 15 years 10 months in federal prison without parole. Eisenhour was sentenced to 13 years in federal prison without parole.
LaDue and Eisenhour both pleaded guilty to aiding and abetting in the robbery of Pinnacle Bank, 1316 E. 32nd Street, Joplin, on Nov. 14, 2016. They each also pleaded guilty to aiding and abetting the use of a firearm during a crime of violence.
Eisenhour and LaDue entered the bank at approximately 3:50 p.m. and announced, “This is a robbery, get down!” Eisenhour jumped behind the bank counter while LaDue, who was armed with a .22-caliber handgun, stayed near the front of the bank. The sole customer of the bank struggled with LaDue in an attempt to disarm him. During the struggle, LaDue fired multiple shots. Both robbers then fled from the bank without taking any money.
Police officers located and arrested both Eisenhour and LaDue two days later, on Nov. 16, 2016.
This case was prosecuted by Assistant U.S. Attorneys James J. Kelleher and Patrick Carney. It was investigated by the Joplin, Mo., Police Department and the FBI
Tuskegee Man Found Guilty in Federal Court for Multiple Armed Robberies and CarjackingRead the Press Release
Montgomery, Alabama—Yesterday, a federal jury found Tariq Khalil Jones, 35, of Tuskegee, Alabama, guilty of 23 separate charges stemming from numerous armed robberies in Alabama and Georgia while brandishing and discharging a firearm, and an attempted carjacking, announced A. Clark Morris, Acting U.S. Attorney for the Middle District of Alabama. During his crime spree, Jones robbed various convenience stores and other cash-heavy businesses, including:
- Dollar General on Notasulga Road in Tallassee, Alabama;
- Tiger Spirits on Webster Road, in Auburn, Alabama;
- Chevron Store 10 on West Longleaf Drive in Auburn, Alabama;
- QuikTrip convenience store on East Highway 34 in Newnan, Georgia;
- Marathon Service Station on Lafayette Parkway in LaGrange, Georgia;
- Wing N’ Burger Factory on Hogansville Road in LaGrange, Georgia;
- Papa John’s restaurant on South Memorial Drive in Prattville, Alabama;
- Family Dollar on 2nd Avenue in Opelika, Alabama;
- Family Dollar on Broadnax Street in Dadeville, Alabama; and
- Dollar General on County Road 89 in Camp Hill, Alabama.
Evidence presented at trial showed that Jones used a firearm during each of these crimes and pointed it at the victims. However, during two of the robberies, he went even further. After the robbery in Prattville, he shot at a vehicle with a father and his 3-year old daughter inside because he thought it was following him. Then, while fleeing the robbery of the Dollar General in Camp Hill, he attempted to carjack a Volkswagen Beetle from a woman in the parking lot.
Jones faces mandatory life sentences for the robberies and attempted carjacking, plus 282 years for multiple counts of brandishing and discharging a firearm during these crimes. The life sentences for Jones were triggered due to his four previous robbery convictions in state court. Federal law imposes a mandatory life sentence if the defendant is convicted in federal court of a serious violent felony, and has two or more previous convictions for serious violent felonies. There is no parole in the federal system.
“The U.S. Attorney’s Office is committed to taking trigger pullers and violent criminals off the streets,” stated Acting U.S. Attorney Morris. “Each one of the crimes that Tariq Jones committed placed the lives of innocent people in jeopardy, including a 3-year old girl. I commend each law enforcement agency that worked together to bring him to justice and make our communities safer.”
“This case is a perfect example of cooperative effort in law enforcement with over ten federal, state, and local agencies coming together when the stakes are extremely high,” stated FBI Special Agent in Charge Robert Lasky. “The jury’s decision today says they approve of law enforcements efforts to stop dangerous individuals like Tariq Khalil Jones from continuing his extremely hazardous multi-state crime spree.”
This case was investigated by the Federal Bureau of Investigation, the Auburn Police Division, the Camp Hill Police Department, the Coweta County Sheriff's Office (Newnan, GA), the Dadeville Police Department, the LaGrange, Georgia Police Department, the Opelika Police Department, the Prattville Police Department, and the Tallassee Police Department. Assistant United States Attorneys John Geer and Brandon Bates prosecuted the case.
Sun City Center Resident’s Estate to Repay $15,743.14 to Social Security AdministrationRead the Press Release
Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that the Estate of Allan Dunn agreed to the sale of assets, from which the government was paid $15,743.14, to resolve allegations that Mr. Dunn failed to report the death of his wife and thereafter improperly collected her Social Security benefits.
Allan Dunn and his wife, Margaret Dunn, resided together in Sun City Center until Mrs. Dunn passed away at home in 2002. Mr. Dunn concealed his wife’s death by placing her body in a freezer in their home. He then collected her Social Security benefits until his own death in 2010. In all, he improperly collected $92,088 in federal benefits. Following Mr. Dunn’s death, authorities discovered that Mrs. Dunn had died eight years earlier.
Upon his death, Mr. Dunn’s sole asset of value was the condominium unit where he and his wife had resided. His heirs, who were unaware that he had concealed his wife’s death, agreed to waive their rights to inherit the condominium and to put it up for sale. The unit has since been sold. After paying the back taxes, sales costs, and amounts owed to the condominium association, the remaining sales proceeds of $15,743.14 were paid to the United States.
This case was handled by Assistant U.S. Attorney Charles Harden. It was investigated by the Social Security Administration - Office of the Inspector General.
Anyone who suspects abuse or neglect of the elderly is encouraged to contact state and local law enforcement authorities. Anyone who suspects fraud, waste, or abuse of federal benefits programs is encouraged to contact federal law enforcement authorities, such as the Inspector General of the federal agency that administers the program.
Springfield, Nixa Men Sentenced for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., man and a Nixa, Mo., man have been sentenced in federal court for their roles in a conspiracy to distribute large quantities of methamphetamine.
David Miller, 40, of Springfield, Mo., and Corey A. Stienbarger, 27, of Nixa, Mo., were sentenced by U.S. District Judge M. Douglas Harpool on Thursday, June 29, 2017. Miller was sentenced to 11 years and six months in federal prison without parole. Stienbarger was sentenced to four years and four months in federal prison without parole.
Miller and Stienbarger both pleaded guilty to participating in the conspiracy to distribute methamphetamine from June 1, 2013, through Nov. 29, 2014.
Beginning in 2012, the Drug Enforcement Administration, assisted by other agencies, investigated one of the largest methamphetamine distribution rings in southwest Missouri. The investigation resulted in the indictment of 28 co-defendants.
In 2013 through 2014, Daniel and Kenna Harmon, 38, of Republic, Mo., distributed in excess of 45 kilograms of methamphetamine in southwest Missouri. Kenna Harmon obtained methamphetamine from several sources and provided distribution amounts of methamphetamine to Miller and others. During the investigation law enforcement seized a total of 1.2 kilograms of methamphetamine from Miller.
Investigators learned that Jonathan A. Heredia was distributing methamphetamine from his business, Hot Shot Motors in Rogersville, Mo. When law enforcement officers executed a search warrant at the business on March 5, 2014, Heredia and Miller, an employee of Hot Shot Motors, were present. Inside the business, officers discovered approximately 75.59 grams of methamphetamine contained in various plastic bags inside Heredia’s desk in his office. Officers also found a .40-caliber Smith and Wesson handgun under his desk and $48,757 in his office.
Officers found approximately 518 grams of methamphetamine inside a bathroom shower at the business. Both Heredia and Miller told investigators that methamphetamine belonged to Miller, who had purchased it earlier in the day from Kenna Harmon.
Law enforcement officers executed a search warrant at Miller’s residence on April 7, 2014. Agents found approximately 569 grams of methamphetamine, 31 grams of crack cocaine, 28.2 grams of heroin, 34 grams of unknown white pills, 63 grams of marijuana and 48.7 grams of mushrooms. Officers also found a drug ledger type notebook, two digital scales, smoking pipes, other types of drug paraphernalia, cell phones and $10,937.
Miller admitted that he had been obtaining methamphetamine from the Harmons for about a year prior to his arrest. Beginning in the late summer of 2013, Miller received one to two pounds of methamphetamine every few days from the Harmons. Miller paid over $15,000 per pound for the methamphetamine.
Miller was stopped by law enforcement officers on Feb. 9, 2015. During the stop, officers searched his vehicle and found 146 grams of methamphetamine in six separate baggies, 31 grams of marijuana, and a glass pipe.
Stienbarger’s role in the conspiracy was to distribute methamphetamine that he obtained from co-defendant Anthony J. Van Pelt, 38, of Springfield. Van Pelt also provided methamphetamine to Kenna Harmon. On Aug. 19, 2014, Stienbarger, under Van Pelt’s direction, distributed approximately 450 grams of methamphetamine in Springfield to a person who had traveled from St. Louis.
Kenna Harmon was arrested in November 2014. Agents searched various residences and vehicles belonging to Kenna Harmon and her co-conspirators and seized approximately five kilograms of methamphetamine and approximately $128,674. Kenna Harmon has pleaded guilty to being a leader in the drug-trafficking conspiracy as well as a money-laundering conspiracy and to being a felon in possession of a firearm.
Daniel Harmon was indicted in the Eastern District of Missouri and pleaded guilty to possessing methamphetamine with the intent to distribute and to being a felon in possession of a firearm. Following his arrest and incarceration, Kenna Harmon continued to lead the drug-trafficking organization.
Van Pelt was sentenced on May 31, 2017, to 21 years in federal prison without parole. Heredia pleaded guilty in a separate case and was sentenced on March 8, 2016, to four years in federal prison without parole.
This case is being prosecuted by Assistant U.S. Attorneys Randall D. Eggert, Nhan D. Nguyen and Cynthia J. Hyde. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Missouri State Highway Patrol, the Springfield, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Sex Offender Sentenced to 15 Years in Prison for Online Enticement and Child Pornography OffensesRead the Press Release
PORTLAND, Ore. – On Thursday, June 29, 2017, U.S. District Court Judge Michael H. Simon sentenced David James McHarg, 58, of Beaverton, Ore. to 15 years in federal prison after he pleaded guilty to one count of attempted online enticement of a minor, and one count of receiving child pornography.
This case began when the Washington County Sheriff’s Office received information that McHarg, a previously convicted sex offender, was engaging in inappropriate online communications with adolescent boys. A Washington County Sheriff’s detective received permission to assume the online identity of one of the boys. McHarg engaged in a number of sexually explicit chats with the detective, who he believed was a 15-year-old boy. During the chats, McHarg suggested that the boy travel to Portland during his spring break, and talked about various sexual acts they would engage in together. McHarg was arrested when he traveled to the Portland International Airport to meet what he thought was the boy’s incoming flight.
A search of McHarg’s Facebook account revealed that he had also been communicating online with a 16-year-old boy in Colorado. At McHarg’s request, the boy sent sexually explicit images and videos of himself to McHarg. In addition, investigators learned that in 2006, McHarg took a 17-year-old boy to Jamaica, where they engaged in various sex acts together.
At the sentencing hearing, McHarg apologized profusely and expressed remorse for his conduct. He said, "I don’t want to be this person. This is not who I want to be." He expressed a desire to take advantage of treatment and counseling programs while in prison.
In imposing the sentence, Judge Simon described McHarg as a "good and decent person" who, for reasons that may be beyond his control, caused harm to young persons. Judge Simon was concerned that McHarg might continue to harm children if allowed to remain free and imposed the sentence in part to protect the public.
After completing his prison term, McHarg will be on supervised release for the remainder of his life. He will be subject to strict supervision conditions, including requirements that he participate in mental health and sex offender treatment programs, and limitations to his possession and use of computers, and access to the Internet. McHarg may petition the court to
modify or end his term of supervised release after he has completed at least five years of supervision.
Billy J. Williams, United States Attorney for the District of Oregon, praised the sentence imposed on McHarg. "Judge Simon recognized the serious and repetitive nature of Mr. McHarg’s conduct – particularly since Mr. McHarg had already been convicted once of a sex offense against a minor – and imposed an appropriate sentence," Williams said. "After serving a lengthy term of imprisonment, Mr. McHarg will be under close supervision for the rest of his life. Hopefully, that will help ensure that he never again attempts to exploit or abuse a child," Williams added.
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 U.S. Department of Justice and led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Washington County Sheriff’s Office, and prosecuted by Gary Y. Sussman, Assistant United States Attorney and Project Safe Childhood Coordinator for the District of Oregon.
Seven More Sentenced and Two More Plead Guilty to Charges Arising Out of ATF-Led Operation Targeting Drug Trafficking and Firearms Crime in Bernalillo CountyRead the Press Release
ALBUQUERQUE – In Aug. 2016, a multi-agency investigation led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) concluded with the filing of 59 federal indictments and a federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. To date, 61 of the 104 defendants charged as the result of this investigation have entered guilty pleas and 26 of them have been sentenced. The following seven defendants were sentenced in federal court in Albuquerque, N.M., this week:
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Maria Citlaly Beltran-Ahumada, 37, a Mexican national illegally residing in Albuquerque was sentenced on June 26, 2017, on an illegal reentry charge to a term of time-served and is pending deportation;
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Julian Brown, 22, was sentenced on June 27, 2017, to 30 months in prison followed by three years of supervised release for possessing an unregistered firearm;
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Francisco Garcia, 20, was sentenced on June 27, 2017, to 60 months in prison followed by five years of supervised release for possessing a firearm in furtherance of a drug trafficking crime;
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Inkosi Grandberry, 35, was sentenced on June 28, 2017, to 60 months in prison followed by five years of supervised release for possessing a firearm in furtherance of a drug trafficking crime;
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Angelica Marie Santiesteban, 40, was sentenced on June 28, 2017, to 63 months in prison followed by five years of supervised release for distributing methamphetamine;
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Johnny Flores, 23, was sentenced on June 28, 2017, to 24 months in prison followed by three years of supervised release for distributing methamphetamine; and
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Manuel Boydston, 36, was sentenced yesterday to 60 months in prison followed by four years of supervised release for distributing methamphetamine.
In addition, Keith Thompson, 48, pled guilty yesterday and his co-defendant Matthew Sandoval, 38, pled guilty today to heroin trafficking charges. Thompson’s plea agreement recommends a sentence of 70 months in prison, and Sandoval’s plea agreement recommends a maximum sentence of 84 months in prison.
These nine defendants were amongst the 104 who were charged as the result of the investigation that began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Beltran-Ahumada’s co-defendants Guajira Maya Lovato, 44, Janet Bowman, 40, Anthony Barela, 34, and Juan Jose Rivas, 32, were charged by indictment on July 28, 2016, with distributing methamphetamine. The indictment was superseded on Aug. 9, 2016, to add Beltran-Ahumada as a defendant and an additional conspiracy charge. The superseding indictment charged the five defendants with conspiring to distribute methamphetamine from June 21, 2016 through Aug. 9, 2016, and distributing methamphetamine on June 22, 2016. Beltran-Ahumada pled guilty on June 9, 2017, to an information charging her with illegal reentry of a removed alien, and admitted that she was found to be illegally in Bernalillo County on Aug. 9, 2016, after being deported from the United States on Nov. 8, 2003.
Brown was arrested on Aug. 10, 2016, on an indictment charging him with distributing heroin and possessing a firearm not registered to him in the National Firearms Registration and Transfer Record (NFRTR). According to the indictment, committed the offenses on July 11, 2016, in Bernalillo County. On Feb. 1, 2017, pled guilty to Count 2 of the indictment charging him with possessing an unregistered firearm. In entering the guilty plea, admitted that on July 11, 2016, he possessed and sold a weapon made from a shotgun not registered to him in the NFRTR.
Garcia was arrested on July 8, 2016, and was charged by indictment with firearms and drug trafficking offenses. The indictment was subsequently superseded on July 28, 2016, and charged Garcia with distributing methamphetamine on May 10, 2016 and May 12, 2016, and using and carrying a firearm in relation to a drug trafficking crime. On Jan. 6, 2017, Garcia pled guilty to using and carrying a firearm in relation to a drug trafficking crime, and admitted that on May 12, 2016, he possessed a firearm during the sale of methamphetamine to an undercover law enforcement agent. Garcia further admitted carrying the firearm for protection and to assist him in his drug trafficking crimes.
Grandberry was arrested on July 6, 2016, on a six-count indictment charging him with distributing heroin on April 28, 2016 and April 29, 2016; being a felon in possession of firearms and ammunition on April 28, 2016, May 4, 2016 and May 12, 2016; and possessing a firearm in relation to a drug trafficking crime on April 28, 2016. According to the indictment, Grandberry was prohibited from possessing firearms or ammunition because of a previous felony conviction for possession of a controlled substance. On Nov. 2, 2016, Grandberry pled guilty to Count 3 of the indictment charging him with possessing and carrying a firearm in relation to a drug trafficking crime, and admitted that on April 28, 2016, he was in possession of a pistol loaded
with ammunition while conducting a heroin transaction.
Santiesteban and co-defendant Noe Urias, 36, were charged in a four-count indictment filed on June 30, 2016, with methamphetamine trafficking offenses. The indictment was superseded on July 28, 2016, to add Patrick Zamora, 22, and another methamphetamine trafficking charge. The superseding indictment charged the three defendants with conspiracy to distribute methamphetamine from May 2, 2016 through June 20, 2016, and distributing methamphetamine on June 20, 2016; Urias and Santiesteban with distributing methamphetamine on May 2, 2016 and May 19, 2016; and Urias with distributing methamphetamine on May 18, 2016. According to the superseding indictment, the defendants committed offenses in Bernalillo County. On Dec. 8, 2016, Santiesteban pled guilty to Count 5 of the superseding indictment charging her with distributing methamphetamine and admitted that on June 20, 2016, she sold approximately 116.8 grams of methamphetamine in exchange for money.
Flores and his co-defendant Josue Duarte, 31, were charged in a four-count indictment filed on Aug. 9, 2016, with conspiracy to distribute methamphetamine from July 18, 2016 through July 26, 2016, and distribution of methamphetamine on July 22, 2016; Flores with distribution of methamphetamine on July 18, 2016; and Duarte with distribution of methamphetamine on July 26, 2016. On Dec. 6, 2016, Flores pled guilty a felony information charging him with distributing methamphetamine, and admitted that on July 18, 2016, he acted as a medium to facilitate a methamphetamine transaction in exchange for money.
Boydston and his co-defendant Thomas Montoya, 40, were charged in a three-count indictment filed on June 30, 2016. The indictment charged Montoya with distribution of methamphetamine on June 6, 2016, and Montoya and Boydston with conspiracy and distribution of methamphetamine on June 14, 2016. On Feb. 6, 2017, Boydston pled guilty to Count 3 of the indictment charging him with distributing methamphetamine, and admitted that on June 14, 2016, he sold approximately 118 grams of methamphetamine to an undercover law enforcement agent.
Thompson and Sandoval were arrested in July 2016, and charged in a two-count indictment with distributing heroin on May 9, 2016, and distributing methamphetamine on May 19, 2016. Thompson entered a guilty plea yesterday and Sandoval entered a guilty plea today to heroin trafficking charges. In entering their guilty pleas, Thompson and Sandoval both admitted that on May 9, 2016, they sold heroin to another individual. They remain in custody pending sentencing hearings, which have yet to be scheduled.
The remaining defendants have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
These cases were investigated by the Albuquerque office of ATF. Assistant U.S. Attorney Presiliano Torrez is prosecuting the cases against Beltran-Ahumada and Boydston; Assistant U.S. Attorney Edward Han prosecuted the cases against Brown and Santiesteban; Assistant U.S. Attorney Rumaldo R. Armijo prosecuted the case against Garcia; Assistant U.S. Attorneys David M. Walsh and Norman Cairns prosecuted the case against Grandberry; and Assistant U.S. Attorney Paul H. Spiers prosecuted the case against Flores. Assistant U.S. Attorney Samuel A. Hurtado is prosecuting the case against Thompson and Sandoval.
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Second Trafficker of Massachusetts Woman Sentenced to PrisonRead the Press Release
PROVIDENCE – Kedwin Vargas, 26, of Roxbury, MA, was sentenced today in U.S. District Court in Providence, RI, to 60 months in federal prison for trafficking a female from Massachusetts to Rhode Island for the purpose of prostitution.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Vargas to serve 3 years supervised release upon completion of his prison term. Vargas pleaded guilty on December 8, 2016, to transportation with the intent to prostitute.
The government and the defendant recommended to the court that a sentence of 60 months of incarceration be imposed. The U.S. Sentencing Guideline range in this matter is 51 to 63 months of incarceration.
Vargas’ sentence is announced by Acting United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division.
At time of his guilty plea, Vargas admitted to the court that between January 2015 and March 2016, he met a female he knew to be engaged in prostitution, and did aid and abet her in carrying out that endeavor by, among other things, driving her from Massachusetts to appointments with customers in Rhode Island; holding cash she collected from her prostitution activities; and by profiting directly and indirectly from her activity.
Vargas has been detained in federal custody since his arrest on May 19, 2016.
A co-defendant in this matter, Rene Anthony Laureano, 31, of Roxbury, MA, was sentenced on June 21, 2017, to 24 months in federal prison. Laureano pleaded guilty on March 7, 2017, to transportation with the intent to prostitute.
The was prosecuted by Assistant U.S. Attorney William J. Ferland.
Acting United States Attorney Stephen G. Dambruch thanks the Warwick, R.I., and Boston Police Departments for their assistance in the investigation of this matter.
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Salem Man Sentenced to 25 Years in Prison for Producing child PornographyRead the Press Release
CONCORD, N.H.: Brian Powell, 34, of Salem, New Hampshire, was sentenced to spend 25 years in federal prison for producing child pornography, announced Acting United States Attorney John J. Farley.
According to court records and statements in court, an Electronic Service Provider (ESP) alerted the National Center for Missing and Exploited Children (NCMEC) that an individual had uploaded a child pornography file to the ESP’s website. That file was ultimately traced back to the Powell’s residence in Salem, New Hampshire. In 2015, the Salem Police Department obtained a search warrant for the residence and seized Powell’s personal computer. A detective with the Rochester, New Hampshire Police Department – also a member of the New Hampshire Internet Crimes Against Children Task Force – analyzed the contents of the computer and discovered a collection of child pornography.
That collection included several videos which the defendant had manufactured himself by initiating contact with minor females through an anonymous internet chat service. Powell, persuading the females to engage in sexually explicit conduct, which the defendant then captured on video without their knowledge. On at least two occasions, the defendant used advanced computer software to track the victims’ IP addresses which allowed him to reengage in conversation with them. He then played the previously-recorded videos for the victims and threatened to publicize them unless the victims engaged in additional sexual conduct. The victims complied and the defendant recorded these acts as well.
Powell, who previously pleaded guilty, will be on supervised release for ten years following his release from prison.
“The defendant’s conduct merits the substantial sentence that the court imposed today,” Acting U.S. Attorney Farley said. “He manipulated young women into exposing themselves and then threatened them with public humiliation if they did not engage in sexual acts that he could record. This reprehensible conduct robbed these young women of their innocence and cannot be tolerated. The U.S. Attorney’s Office will continue to work with our law enforcement partners each day to identify and prosecute those who abuse children by producing child pornography.”
The investigation in this case was led by the Salem, New Hampshire Police Department with the assistance of the New Hampshire Crimes Against Children Task Force, Homeland Security Investigations, and the Rochester and Derry police departments. The case was prosecuted by Assistant United States Attorney Georgiana Konesky.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s 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 www.projectsafechildhood.gov.
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Sacramento Woman Pleads Guilty to Possessing Stolen MailRead the Press Release
SACRAMENTO, Calif. — Channin Renee Dickens, 30, of Sacramento, pleaded guilty today to possessing stolen mail, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between September 15, 2016, and February 20, 2017, Dickens possessed mail that had been stolen from an authorized U.S. Mail receptacle. Dickens, along with Ashley Nicole Leyba, 27, of Sacramento, and others, carried out a scheme to defraud banks by using identity information and financial documents obtained from stolen U.S. Mail to apply for lines of credit and open accounts in the names of others. Dickens would use the cards to purchase merchandise and services.
On February 13, 2017, Leyba was arrested, and in April 7, 2017, pleaded guilty to bank fraud, aggravated identity theft, and possession of stolen mail. In Leyba’s plea agreement, she admits that while in custody, she instructed Dickens to destroy stolen identification and financial information that she had in her residence. However, some of the stolen mail was recovered in Dickens’ car before she could destroy it.
This case is the product of an investigation of the U.S. Postal Inspection Service, with assistance from the California Highway Patrol, the Sacramento County Sheriff’s Office, the Sacramento County Probation Office, and the Citrus Heights Police Department.
Dickens is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on September 15, 2017. Dickens faces up to five years in prison. Leyba is scheduled to be sentenced by Judge Burrell on July 28, 2017. Leyba faces up to 30 years in prison for bank fraud, a mandatory sentence of two years in prison for aggravated identity theft, and five years in prison for possession of stolen U.S. Mail.
Sacramento Man Sentenced to 20 Years in Prison for Sexual Exploitation of ChildrenRead the Press Release
SACRAMENTO, Calif. — Alexander Antonio Rojas, 58, of Sacramento, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 20 years in prison for distribution of child pornography, U.S. Attorney Phillip A. Talbert announced.
U.S. Attorney Talbert stated: “Today’s sentence is necessary to protect the public from further crimes by this defendant. He used his relative wealth and privilege in this country to exploit impoverished people overseas. It is our goal to ensure that this defendant never harms another child.”
“This case sends a clear message to those who seek, consume, and distribute child pornography,” said Acting Special Agent in Charge Voviette Morgan of the FBI Sacramento field office. “This investigation reminds those who are considering committing similar crimes that the FBI continues to collaborate with our international and task force partners to ensure the exploitation of vulnerable children is investigated and prosecuted to the full extent of the law.”
According to court documents, between August 5, 2013, and April 5, 2014, Rojas offered to pay money to individuals living in the Philippines and other Southeast Asian countries to produce photographs and videos of minor children engaged in sexually explicit conduct. In some instances, Rojas sought images of children as young as nine years old.
This case was the product of an investigation by the Federal Bureau of Investigation with assistance from the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Matthew G. Morris prosecuted the case.
Rojas has been in custody since his arrest on June 13, 2014.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Rhode Island Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A Rhode Island man was sentenced this afternoon in federal court in Boston for failing to register as a sex offender.
Michael Plant, 42, was sentenced by U.S. District Court Judge Denise J. Casper to time served and five years of supervised release, to include six months of home confinement. In March 2017, Plant pleaded guilty to one count of failing to register as a sex offender.
Plant was convicted on state charges of second degree child molestation in April 4, 2000, and is therefore required to register as a sex offender in Rhode Island. In addition, federal and state law require Plant to register any address where he works or lives. While Plant registered a home address in Newport, R.I., he failed to register either the address of his Massachusetts employer or a secondary residential address in Fall River, Mass., from February 2015 to October 2016.
Acting United States Attorney William D. Weinreb and John Gibbons, U.S. Marshal for the District of Massachusetts, made the announcement today. Assistant U.S. Attorney Anne Paruti, Weinreb’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, prosecuted the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Removed Alien Charged with Unlawfully Re-entering United StatesRead the Press Release
PITTSBURGH - A citizen of Mexico has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal immigration laws, Acting United States Attorney Soo C. Song announced today.
The one-count indictment, returned on June 27, named Cirilo Castano-Garcia, age 29, of Mexico, as the sole defendant.
According to the indictment, on or about May 24, 2017, Castano-Garcia was found in Pittsburgh, Pa., after having unlawfully re-entered the United States following one previous removal.
The law provides for a maximum total sentence of twenty (20) years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
United States Immigration and Customs Enforcement (ICE) conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Physician Sentenced to 7 Years in Prison for Accepting Kickbacks and Failing to Remit Employment TaxesRead the Press Release
JOHNSTOWN, Pa. - A resident of Hollidaysburg, Pa. has been sentenced in federal court to 84 months in prison, 60 months of which will be concurrent with a sentence imposed in the Southern District of Florida; three years’ supervised release; and was ordered to pay restitution to the Internal Revenue Service of $722,476.55 and to Health and Human Services of $2,300,000, on his convictions of conspiring to commit an offense against the United States and willfully failing to remit employment taxes, Acting United States Attorney Soo C. Song announced today.
United States District Judge Kim R. Gibson imposed the sentence on Dr. John H. Johnson, 55, of Hollidaysburg, Pa. Dr. Johnson will surrender today, June 30, 2017, to the United States Marshal Service to begin serving his 84-month federal prison sentence.
According to information presented to the court and in connection with Dr. Johnson conspiring to commit an offense against the United States:
- Universal Oral Fluid Labs (UOFL) was a clinical drug testing and drug screening lab located in Greensburg, PA. William Hughes was the owner and operator of UOFL. Dr. Johnson was a PA licensed physician practicing anesthesiology and pain management, who owned and operated a group of pain management clinics.
- Both Dr. Johnson and UOFL were enrolled providers in the Medicare program and the Pennsylvania Medicaid program. As a condition of becoming a Medicare and/or Medicaid provider and being authorized to bill Medicare and/or Medicaid, Dr. Johnson and UOFL were required to certify on their enrollment applications, Medicare Form 885B, that they would comply with all applicable federal and state laws, regulations, policies, procedures, and program requirements.
- UOFL billed, and was paid by, Medicare and Pennsylvania Medicaid for performing drug tests and related services for Medicare and Medicaid beneficiaries who were referred to UOFL by physicians enrolled in the program, including Dr. Johnson. UOFL also billed, and was paid by, various private health care insurance companies in the business of providing health care insurance to individuals and entities under various insurance policies, pursuant to which the private insurers paid UOFL for drug tests and related services performed for insureds who had been referred to UOFL by physicians.
- From in and or around May, 2011, and continuing thereafter until at least November, 2013, Dr. Johnson did knowingly and intentionally conspire with William Hughes and others to commit offenses against the United States, that is, to solicit and receive remuneration, directly and indirectly, overtly and covertly, in cash and in kind, namely, kickbacks and bribes, from William Hughes and UOFL in return for referring patients to UOFL for the furnishing and arranging for the furnishing of items and services, that is, the referral of patient lab work, for which payment was made in whole or in part under a Federal health care program, namely, Medicare and Medicaid, contrary to Title 42, United States Code, Section 1320a-7b(b)(1)(A).
- Dr. Johnson received cash payments from William Hughes and UOFL in exchange for referring Medicare and Medicaid patients to UOFL. Likewise, Dr. Johnson received monthly checks from UOFL in exchange for referrals, including Medicare and Medicaid referrals. Dr. Johnson also agreed on the value of the “kickbacks” that William Hughes and UOFL would pay Dr. Johnson for each referral of lab work sent to UOFL by Dr. Johnson. Specifically, the monthly “kickback” checks UOFL paid to Dr. Johnson were paid pursuant to the terms of a “joint venture” that Dr. Johnson entered into with UOFL. Under this “joint venture,” Dr. Johnson referred all of his patients, including Medicare and Medicaid beneficiaries, to UOFL for drug testing and related services. UOFL, in turn, billed third-party payors, including Medicare and Medicaid, for such tests, and then “kicked back” to Dr. Johnson, for each referred patient, reimbursement amounts for the tests that exceeded agreed upon thresholds, which were typically between $100.00 and $150.00. Dr. Johnson received these “joint venture” payments from William Hughes and UOFL solely in exchange for the referrals Dr. Johnson provided to UOFL, and not in exchange for the performance of any other services.
- Between May 2011 and November 2013, Dr. Johnson received more than $2,300,000 in “kickbacks” from Williams Hughes and UOFL for referrals. UOFL then received millions of dollars from third party payors, including approximately $3,443,528 from Medicare and $1,147,768 from Pennsylvania Medicaid, based on Dr. Johnson’s referrals.
In connection with Dr. Johnson willfully failing to remit employment taxes:
- On or about April 22, 2002, Central Anesthesia was incorporated with Dr. Johnson as the 100% shareholder who exercised complete control over every aspect of the business affairs. As the owner and operator of Central Anesthesia, Dr. Johnson had the corporate responsibility to collect, truthfully account for, and pay over Central Anesthesia’s payroll taxes to the IRS. Despite withholding payroll taxes from his employees paychecks, Dr. Johnson failed to make payments to the IRS. Specifically, for the taxable third quarter of 2013 (i.e., from on or about July 1, 2013 to on or about September 30, 2013), Dr. Johnson willfully failed to truthfully account for and pay over to the IRS all of the federal income taxes withheld and Federal Insurance Contributions Act (FICA) taxes due and owing to the United States on behalf of Central Anesthesia and its employees, totaling $135,112.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Ms. Song commended the Federal Bureau of Investigation, Health and Human Services Office of Inspector General, the Internal Revenue Service Criminal Investigation, and Pennsylvania Office of Attorney General Medicaid Fraud Control Section for the investigation leading to the successful prosecution of Dr. Johnson.
Palmetto Woman Pleads Guilty to Tax Fraud ChargesRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Latronda Brooks (44, Palmetto) has pleaded guilty to theft of government funds and aggravated identity theft in connection with income tax fraud. She faces a maximum penalty of 10 years in federal prison for the theft charge, followed by an additional two-year, consecutive sentence for the aggravated identity theft charge. Brooks also agreed to a forfeiture money judgment in the amount of $327,521, representing the proceeds of the tax fraud.
According to court documents, Brooks opened an Urban Trust Bank account in her name, doing business as Magnificent Tax Services, and used it to deposit fraudulent tax refund checks. These fraudulent checks were falsely endorsed with the taxpayer’s signature and deposited with a falsely endorsed “permission” form that purportedly gave Brooks permission to deposit third-party tax refund checks into her bank account. Brooks spent the money from the third-party tax refunds on personal expenditures, including paying others involved in the tax fraud, and did not provide any of the funds to the taxpayer.
This case was investigated by Internal Revenue Service – Criminal Investigations and the Manatee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Kelley Howard-Allen.
Palm Beach County Sheriff’s Deputy Pleads Guilty to Aggravated Identity Theft After Moving to Withdraw His Initial Guilty PleaRead the Press Release
Yesterday, a Palm Beach County Sheriff’s deputy re-asserted his guilt before United States District Judge Donald M. Middlebrooks and admitted to providing personally identifying information to another individual who used that information in an identity theft scheme.
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’s Homeland Security Investigations (ICE-HSI), Sean Scheller, Chief, Town of Lantana Police Department, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, made the announcement.
On March 23, 2017, Frantz Felisma, 42, of Boynton Beach, a deputy with the Palm Beach County Sheriff’s Office, initially pled guilty to access device fraud in connection with the identity theft scheme, in violation of Title 18, United States Code, Section 1029(a)(2) and aggravated identity theft Title 18, United States Code, Section 1028A(a)(1) (Case No. 17-CR-80008). However, following his plea hearing Felisma moved to withdraw his guilty plea and the matter was set for trial. On June 29, 2017, in advance of the trial date, Felisma re-affirmed his guilt by pleading to the initial charges of conviction.
According to the court record, over the span of approximately eighteen months, Deputy Felisma used his police department issued laptop computer to access a law enforcement database in order to obtain personally identifying information (PII) belonging to numerous individuals. Felisma sold this information to his co-conspirator, who then used the identities of at least 15 of these victims to set up credit card and bank accounts, stealing tens of thousands of dollars in the names of the victims. Felisma’s criminal conduct caused between $150,000 and $250,000 in financial losses.
Felisma faces a mandatory minimum of two years’ imprisonment, to run consecutive to any other term of imprisonment imposed, as to the aggravated identity theft charge; and a maximum of ten years’ imprisonment as to the access device fraud charge. Felisma is scheduled to be sentenced on August 1, 2017, before Judge Middlebrooks.
Mr. Greenberg commended the investigative efforts of ICE-HSI, the Lantana Police Department, IRS-CI and Palm Beach County Sheriff’s Office. This case is being prosecuted by Assistant United States Attorneys Lauren Jorgensen and Rinku Tribuiani.
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.
Pair Sentenced in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
LAREDO, Texas – Two Texas men have been ordered to prison following their convictions for conspiring to fraudulently claim federal income tax refunds using stolen identity information, announced Acting U.S. Attorney Abe Martinez and Special Agent in Charge Rick Goss of IRS-Criminal Investigation. Sunday Quincy Usoh, 47, of Dallas, and Jeffery Wahab Jubril, 43, of Killeen, pleaded guilty May 17, 2016.
“These international thieves and their cohorts tried to get away with a major identity theft tax scheme designed to steal amounts in the millions of dollars from the American taxpayers,” said Goss. “CI agents use special investigative techniques to follow a crimes’ money trail, wherever it takes them, back to the perpetrator. Now, with today’s sentencing, these defendants will begin paying the price for stealing from the taxpayers.”
Today, U.S. District Judge Marina Garcia Marmolejo ordered Usoh to serve a total of 96 months in federal prison, while Jubril was sentenced to a 52-month-term of imprisonment. Both men will also serve three years of supervised release following completion of their prison terms. The court further ordered they pay more than $265,000 in restitution. At the hearing, additional evidence was presented including the impact that the victims had suffered as the result of the crimes. In handing down the sentences, Judge Marmolejo said the hearing was about an appropriate and just punishment for the defendants’ behavior. The judge increased each man’s prison sentence, telling them that the recommendations provided to the court did not begin to adequately address all of the harm that they had caused the victims in the case.
From February through September 2015, Usoh and Jubril conspired to use stolen personal identifying information to file fraudulent tax returns claiming more than $1.8 million in refunds. They arranged for the refunds to be direct deposited into one of more than 25 bank accounts they had opened in cities across Texas, including Killeen, Odessa, Midland and Del Rio. The U.S. Treasury paid out more than more than $675,000 before the scheme was discovered. At least 230 taxpayers were the victims of identity theft as a result of the pair’s scheme.
Both men will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
IRS - Criminal Investigation conducted the investigation. Assistant U.S. Attorney Mike Eaton is prosecuting the case.
Pain Management Doctor Arrested in Health Care Fraud CasesRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama and Alabama Attorney General Steve Marshall announced today that Dr. Rassan M. Tarabein, 58, a neurologist residing in Fairhope, Alabama, was arrested by law enforcement officials on federal and state criminal charges relating to health care fraud. On June 16, 2017, a state grand jury in Montgomery County, Alabama returned a 2¬–count indictment against Dr. Tarabein, charging him with Medicaid fraud and theft of property in the first degree. On June 28, 2017, a federal grand jury for the Southern District of Alabama returned a 22–count superseding indictment against Dr. Tarabein, charging him with health care fraud, making false statements relating to health care matters, lying to a federal agent, unlawfully distributing schedule II controlled substances, and money laundering. Later today, Dr. Tarabein is scheduled for an initial appearance on the federal charges before United States Magistrate Judge P. Bradley Murray in Mobile, Alabama. Dr. Tarabein operated the Eastern Shore Neurology and Pain Center, a private clinic in Daphne, Alabama where he provided services relating to neurology and pain management, such as spinal injections.
Acting United States Attorney Steve Butler stated, “As alleged, this neurologist operated a fraudulent medical practice that for years stole millions of dollars from health care programs and endangered the safety of his patients. Federal and state investigators have worked diligently to expose the fraud. Now this physician must face the consequences of his actions.”
Attorney General Marshall stated, “I am pleased to partner with our federal law enforcement colleagues to protect precious state Medicaid resources. I hope that this case will serve as a warning to others who might be tempted to steal taxpayer money allocated to protect our most vulnerable citizens.”
Federal Bureau of Investigation (FBI) Special Agent in Charge Robert E. Lasky stated, “Health care fraud cases continue to be a priority for the FBI. We will continue to work closely with our law enforcement partners to bring these types of investigations to a swift and justifiable end.”
“It is disappointing when trusted professionals like Dr. Rassan Tarabein are engaged in corrupt practices, to include the diversion of controlled substances,” said Stephen G. Azzam, Special Agent in Charge of DEA’s New Orleans Field Division. “Doctors have an obligation to ensure that prescription medications are getting into the hands of legitimate patients. Thanks to the cooperative success of this investigation with our federal law enforcement partners and state investigators, this crooked doctor will be brought to justice.”
“Dr. Tarabein's alleged activities blatantly abused federal health care programs and treated patients as his personal money machines," said Special Agent in Charge Derrick L. Jackson, of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “This arrest should warn providers, who line their pockets at the expense of taxpayers, that they will face severe consequences.”
The facts in an indictment constitute allegations only. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The FBI, DEA, HHS-OIG, and Alabama Medicaid Fraud Division are investigating the federal case. Assistant United States Attorneys Sinan Kalayoglu and Gregory A. Bordenkircher are prosecuting the federal case in coordination with the Office of the Alabama Attorney General, Medicaid Fraud Control Unit. Assistant Attorney Generals Bruce M. Lieberman and Jon R. Moody are prosecuting the state case.
Online Reseller of Rare Nike Sneakers Pleads Guilty to Trafficking in Counterfeit Goods and Money LaunderingRead the Press Release
PORTLAND, Ore. – On Friday, June 30, 2017, former online sneaker retailer James Pepion appeared before U.S. Magistrate Judge Stacie F. Beckerman to plead guilty to charges of trafficking in counterfeit goods and money laundering under a plea agreement he negotiated with the United States. The maximum sentence for trafficking in counterfeit goods is 10 years in prison and a fine of up to $2 million (or twice the defendant’s proceeds, whichever is greater). The maximum sentence for money laundering is 20 years in prison and a fine of $500,000 (or twice the value of the property involved in the money-laundering scheme, whichever is greater).
Pepion offered rare Nike sneakers and similar merchandise for sale on the website Get-Supplied.com and through related businesses, including Supplied, Inc., and SwagSupply, Inc. using online platforms such as Instagram, eBay, and Shopify. Though Pepion acquired many of the limited-edition sneakers he resold through legitimate channels, he also imported counterfeit versions of some sneakers directly from black market sources in China, selling them as authentic Nike footwear to unwitting buyers. These fraudulent sales triggered numerous complaints to Nike as well as to Pepion.
Between June 2013 and September 2015, Pepion wired $174,460.00 to sellers in China, almost all of which was for counterfeit shoes and packaging. Pepion combined the proceeds of the sales of these counterfeit Nike sneakers with the proceeds of sales of authentic sneakers in various financial accounts in order to conceal the illegal source of much of his income.
Under the terms of Pepion’s plea agreement, he waived indictment by a federal grand jury and agreed to forfeit nearly $200,000 – including $92,000 seized from financial accounts at the same time federal agents executed a search warrant on his home and business in April 2016. The agreement provides that the government shall urge the court to impose a sentence of at least 18 months in federal prison.
“Oregon is at the center of athletic footwear design and technology for consumers around the globe, and Nike is a leader in the field,” said Billy J. Williams, United States Attorney for the District of Oregon. “It is essential to a safe and fair marketplace that consumers can trust that merchandise bearing the trademarks and insignias of respected companies like Nike are actually produced in compliance with those companies’ standards.” U.S. Attorney Williams emphasized that “the U.S. Attorney’s Office and Homeland Security Investigations will continue to work together to identify and prosecute vendors who seek to undermine that trust and to profit unjustly by smuggling and reselling counterfeit goods.”
This case was investigated by special agents of U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI) and Internal Revenue Service Criminal Investigations (IRS CI) and is being prosecuted by Ryan W. Bounds and Julia Jarrett, Assistant United States Attorneys for the District of Oregon.
Odenville Man Indicted for Possessing Pipe BombRead the Press Release
BIRMINGHAM – A federal grand jury late Thursday indicted an Odenville man for possessing a pipe bomb, announced Acting U.S. Attorney Robert O. Posey and federal Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Steven L. Gerido.
A one-count indictment filed in U.S. District Court charges EDWARD SHANE DEMPSEY, 39, with possessing the destructive device, which was not registered to him in the National Firearms Registration and Transfer Record, as required by law. Dempsey possessed the pipe bomb on Aug. 24, 2016, in St. Clair County, according to the indictment.
The maximum penalty for the charge is 10 years in prison and a $10,000 fine.
ATF investigated the case, which Assistant U.S. Attorney James Weil is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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North Carolina Man Indicted for Obstructing the IRS, Preparing Fraudulent Tax Returns and Bankruptcy FraudRead the Press Release
A grand jury sitting in the Middle District of North Carolina returned an indictment charging a Greensboro, North Carolina resident with corruptly endeavoring to obstruct and impede the Internal Revenue Service (IRS), preparing and filing fraudulent tax returns, bankruptcy fraud and making false bankruptcy declarations, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina.
The indictment alleges that, between July 2008 and July 2009, Hassie Demond Nowlin aka Demond Nowlin and Brilliant Knowlin, filed personal tax returns with the IRS reporting fake income and income taxes withheld and seeking more than $700,000 in fraudulent refunds. According to the indictment, between 2008 and 2010, the IRS assessed taxes, penalties and interest against Nowlin related to his 2005 through 2008 income tax returns. After being notified of the assessments, Nowlin allegedly began concealing his assets and placing them in the names of nominee entities. The indictment also alleges that Nowlin made false statements to IRS agents, including that he did not prepare tax returns for clients.
The indictment further charges that between January 2011 and January 2017, Nowlin operated a tax preparation business, and filed tax returns for clients that claimed phony business and education expenses and sought refunds to which the clients were not entitled. According to the indictment, Nowlin did not identify himself as the paid preparer on these fraudulent returns. The indictment alleges that Nowlin caused more than $250,000 in clients’ tax refunds to be deposited into nominee bank accounts that he controlled.
In addition to the tax-related charges, the indictment alleges that Nowlin attempted to cheat his creditors by filing six fraudulent personal bankruptcy petitions between April 2013 and January 2017. Along with five of those petitions, Nowlin also allegedly submitted false financial statements on which he did not fully disclose his income and assets.
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proved guilty beyond a reasonable doubt.
If convicted, Nowlin faces a statutory maximum sentence of three years in prison for obstructing the IRS and each count of preparing false tax returns and five years in prison for each count of bankruptcy fraud and making false bankruptcy declarations. He also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Hairston commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Anand Ramaswamy of the Middle District of North Carolina, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
North Carolina Man Indicted for Obstructing the IRS, Preparing Fraudulent Tax Returns and Bankruptcy FraudRead the Press Release
WASHINGTON – A grand jury sitting in the Middle District of North Carolina returned an indictment charging a Greensboro, North Carolina resident with corruptly endeavoring to obstruct and impede the Internal Revenue Service (IRS), preparing and filing fraudulent tax returns, bankruptcy fraud and making false bankruptcy declarations, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina.
The indictment alleges that, between July 2008 and July 2009, Hassie Demond Nowlin aka Demond Nowlin and Brilliant Knowlin, filed personal tax returns with the IRS reporting fake income and income taxes withheld and seeking more than $700,000 in fraudulent refunds. According to the indictment, between 2008 and 2010, the IRS assessed taxes, penalties and interest against Nowlin related to his 2005 through 2008 income tax returns. After being notified of the assessments, Nowlin allegedly began concealing his assets and placing them in the names of nominee entities. The indictment also alleges that Nowlin made false statements to IRS agents, including that he did not prepare tax returns for clients.
The indictment further charges that between January 2011 and January 2017, Nowlin operated a tax preparation business, and filed tax returns for clients that claimed phony business and education expenses and sought refunds to which the clients were not entitled. According to the indictment, Nowlin did not identify himself as the paid preparer on these fraudulent returns. The indictment alleges that Nowlin caused more than $250,000 in clients’ tax refunds to be deposited into nominee bank accounts that he controlled.
In addition to the tax-related charges, the indictment alleges that Nowlin attempted to cheat his creditors by filing six fraudulent personal bankruptcy petitions between April 2013 and January 2017. Along with five of those petitions, Nowlin also allegedly submitted false financial statements on which he did not fully disclose his income and assets.
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proved guilty beyond a reasonable doubt.
If convicted, Nowlin faces a statutory maximum sentence of three years in prison for obstructing the IRS and each count of preparing false tax returns and five years in prison for each count of bankruptcy fraud and making false bankruptcy declarations. He also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Hairston commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Anand Ramaswamy of the Middle District of North Carolina, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
# # #New Orleans CPA Charged with Filing a False Tax Return Underreporting Her IncomeRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that BRENDEL DEEMER, 48, of New Orleans, a Certified Public Account (CPA), was charged today with willfully filing a false tax return for herself. DEEMER was charged with filing a false 2010 individual income tax return that excluded income and inflated expenses for businesses under her control.
According to the Bill of Information, DEEMER operated Deemer CPA & Consulting Services LLC since at least 2009. From 1999 through 2005, she also operated Building Blocks Academy, a day care center. DEEMER ceased operating Building Blocks Academy after Hurricane Katrina and did not resume operating the business. As alleged in the Bill of Information, for tax years 2009 and 2010, DEEMER filed individual income tax returns that falsely reported her Schedule C business income from Deemer CPA and Consulting Services, LLC, and her expenses for Building Blocks Academy.
Upon conviction, DEEMER faces a maximum penalty of three years of imprisonment. She also faces a term of supervised release, as well as potential fines and other monetary penalties.
Acting U. S. Attorney Evans reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U. S. Attorney Evans commended the work of IRS-Criminal Investigations in investigating this matter. Assistant U.S. Attorney Hayden Brockett is in charge of the prosecution.
Myrtle Beach Man Sentenced in Federal Court on Fraud ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Howard Dillon, age 55, of Myrtle Beach was sentenced in federal court in Florence, South Carolina, for Conspiracy to Manufacture and Pass Counterfeit Securities, in violation of Title 18, United States Code, Section 371. United States District Judge R. Bryan Harwell, of Florence, sentenced Dillon to 30 months’ imprisonment followed by 3 years of supervised release. Dillon was also ordered to pay over $31,000 in restitution to victims of the fraud.
Evidence presented at the guilty plea hearing established that during the period from August 2015 through January of 2016, Dillon and others were involved in a conspiracy to manufacture and pass counterfeit securities (checks) of organizations.
The defendants would make counterfeit checks using genuine bank account and routing numbers they obtained from checks stolen out of mailboxes in Horry and Georgetown Counties.
The defendants would then use fraudulent driver's licenses bearing their photographs, but in other persons' names which matched the names on the counterfeit checks, to pass these counterfeit checks at various businesses.
The defendants would purchase merchandise at one store using the counterfeit checks, then they would go to another store in the same chain and exchange the merchandise for cash.
The case was investigated by agents of the U.S. Postal Inspection Service and officers of the Horry County Police Department. Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.
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Montgomery County Man Sentenced to Life in Federal Prison for Distributing Acetyl Fentanyl Resulting in DeathRead the Press Release
June 30, 2017
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – On Thursday, June, 29, 2017, U.S. District Judge Paula Xinis sentenced Justin Larson, age 30, of Gaithersburg, Maryland, to life in prison, for distribution of acetyl fentanyl, which resulted in death, as well as conspiracy to distribute narcotics, five counts of possession or attempted possession of a controlled substance and controlled substance analogue with intent to distribute, and one count of possession with intent to distribute and distribution of a controlled substance. Larson was convicted by a federal jury on January 25, 2017. The jury was not able to reach a verdict on a second count of distribution of acetyl fentanyl, resulting in death.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Postal Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service - Washington Division; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
According to the testimony at his three-week trial, from May 2014 through March 17, 2016, Larson conspired to distribute acetyl fentanyl, and furanyl fentanyl, a controlled substance analogue. The evidence showed that on May 9, 2014, Larson distributed acetyl fentanyl to an individual, resulting in the death of that individual.
Larson remains detained.
Acting United States Attorney Stephen M. Schenning praised HSI Baltimore, the FBI, U.S. Postal Inspection Service, Montgomery County Police Department, and Montgomery County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Schenning thanked Assistant United States Attorneys Kelly O’Connell Hayes and Erin Pulice, who prosecuted the case.
Moncks Corner Man Pleads Guilty to Federal Narcotics, Firearms ChargesRead the Press Release
Charleston, South Carolina ---- United States Attorney Beth Drake stated today that Joshua Frederick Davis, age 31, of Moncks Corner, South Carolina, has entered a guilty plea in federal court in Charleston, to two counts of possession with intent to distribute methamphetamine and one count of possession of firearms by a convicted felon. United States District Judge Richard M. Gergel, of Charleston, accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that on December 28, 2015, the Berkeley County Sheriff’s Office conducted a traffic stop on Davis. During the stop, officers conducted a probable cause search of the defendant and located 96 grams of crystal methamphetamine, 19 grams of crack cocaine and 12 grams of cocaine in Davis’ pants. Officers then executed a search warrant at Davis’ residence, where they found over 500 grams of crystal methamphetamine and two firearms in Davis’ bedroom.
On February 8, 2016, the Goose Creek Police Department conducted a lawful traffic stop on Davis. After placing Davis under arrest for a small amount of crystal methamphetamine found in his vehicle, officers recovered 25 grams of crystal methamphetamine, 10 grams of crack cocaine and 2 grams of cocaine from Davis’ pants.
Ms. Drake stated the maximum penalty is life imprisonment and/or a fine of $4,000,000.
The case was investigated by agents of the Drug Enforcement Administration, Berkeley County Sheriff’s Office, Moncks Corner Police Department and Goose Creek Police Department. Assistant United States Attorney Nick Bianchi of the Charleston office is prosecuting the case.
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Millvale Man Charged with Transporting a Minor for Sex, Other Child Exploitation ChargesRead the Press Release
PITTSBURGH - A former resident of Millvale, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of transporting a minor in interstate commerce for the purpose of engaging in sexual conduct, as well as producing and distributing images and videos of such sexual conduct, Acting United States Attorney Soo C. Song announced today.
The six-count indictment, returned on June 27, named Daniel A. Kundrat, 34, as the sole defendant.
According to the indictment, Kundrat, on August 10, 2016, traveled to Columbus, Ohio, where he picked up a 14-year old female, whom he brought back to the State of Pennsylvania with the intent to engage in unlawful sexual activity, including intercourse. He is further alleged to have produced videos of their sexual activity on August 22, 2016, and on August 31, 2016, as well as to have distributed in interstate and foreign commerce three videos depicting the sexual exploitation of a minor.
The law provides for a maximum total sentence of life in prison, a fine of $1,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Allegheny County Police Department, Allegheny County District Attorney’s Office, and Millvale Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Memphis Man Pleads Guilty in Scheme to Defraud Financial InstitutionsRead the Press Release
Memphis, TN – A Memphis man pleaded guilty to committing bank fraud against financial institutions in the Memphis area. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the conviction today.
According to the indictment, from August 2011 through February 2016, Talmadge Garner and other co-conspirators, participated in a deceptive scheme to defraud Orion Federal Credit Union, SunTrust Bank and Regions Bank. The fraud consisted of opening new accounts and/or using their existing accounts to deposit fraudulent checks. Garner also stole the identities of individuals to pass fraudulent checks to the banks.
Nearly 200 fraudulent closed accounts totaling $110,831.95 were deposited into accounts at the banks. Immediately after deposits were made in the banks, withdrawals were made by Garner and others not named in the indictment. Garner would give co-conspirators some of the proceeds withdrawn from the banks.
Garner pled guilty to two counts of bank fraud during the five-year period. The maximum penalty for bank fraud is 30 years in prison and a $1,000,000 fine. The sentencing hearing will be held on September 28, 2017.
The case was investigated by the United States Secret Service. Assistant U.S. Attorney Damon Keith Griffin is prosecuting this case on the government’s behalf.
Memphis Man Charged with Distributing a Lethal Dose of FentanylRead the Press Release
Memphis, TN – On June 29, 2017, a federal grand jury returned a four-count indictment against 30-year-old Cortez Armstrong, aka "B.B.," for distribution of a variety of narcotics including fentanyl which resulted in the death of 21-year-old Z.R. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the indictment today.
According to the indictment, on or about October 9, 2016, Armstrong distributed fentanyl to Z.R. The victim’s body was discovered by law enforcement during the early morning hours of October 10, 2016 at 3799 Shelby Drive, Memphis, Tennessee. The cause of Z.R.’s death was determined to be the result of a fentanyl overdose.
"Pursuant to federal law, a person who distributes fentanyl which causes the death of the buyer is criminally responsible for the buyer’s death even though the drug dealer did not intend to harm the buyer. Last year the Mid-South lost far too many lives to drug overdoses. Law enforcement will not sit idly by while the death toll continues to rise," said Acting U.S. Attorney Lawrence J. Laurenzi.
The penalty for distribution of fentanyl where death or serious bodily injury results is not less than 20 years in prison, but if the defendant has a prior felony drug conviction then life.
This case is being investigated by the Drug Enforcement Administration (DEA) and Memphis Police Department. Assistant U.S. Attorneys Michelle Kimbril-Parks and J. William Crow are prosecuting this case on the government’s behalf.
Massachusetts Man Pleads Guilty to Distributing FentanylRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that Edward Garcia, 36, of Massachusetts, pleaded guilty to two counts of distributing fentanyl at the Rockingham Mall in June and July 2015.
According to documents on file with the court and statements made at today’s change of plea hearing, in 2015 law enforcement officers were targeting the sale of heroin and fentanyl from sources located in Massachusetts. As part of the investigation, an undercover officer purchased fentanyl from Garcia on June 12, 2015 and on July 14, 2015. Each sale involved 29.5 grams of the controlled substance fentanyl.
A sentencing hearing is scheduled for October 23, 2017.
“The United States Attorney’s Office is committed to working with all of our law enforcement partners to stop the flow of fentanyl into New Hampshire,” said Acting U.S. Attorney Farley. “Because even a small quantity of fentanyl can be deadly, we will continue to work together to prosecute those who are responsible for distributing this drug and will make every effort to stop this drug from being sold in New Hampshire. While those who suffer from substance use disorders should receive treatment, those who seek to profit from the drug trade need to be held accountable for their actions.”
“Opioid abuse is at epidemic levels in New Hampshire,” said Special Agent in Charge Michael J. Ferguson. “Fentanyl is causing overdose deaths across the Granite State in record numbers, and DEA is committed to aggressively pursue anyone who distributes this poison in order to profit and destroy people’s lives. This investigation demonstrates the strength and continued commitment of our local, state and federal law enforcement partners and our strong relationship with the U.S. Attorney’s Office.”
The case was investigated by the Drug Enforcement Administration. Task Force Officers from a number of New Hampshire law enforcement agencies and members of the Massachusetts State Police assisted in the investigation. This case is being prosecuted by Assistant United States Attorney Don Feith.
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Maryland Man Pleads Guilty to Involuntary Manslaughter After Punching and Killing a Man in Northeast WashingtonRead the Press Release
WASHINGTON – Paul Hagans Jr., 37, of Waldorf, Maryland, pled guilty today to a charge stemming from his role in the killing of a man during an altercation earlier this year in Northeast Washington, D.C., announced U.S. Attorney Channing D. Phillips.
Hagans pled guilty to involuntary manslaughter in the Superior Court of the District of Columbia. The plea, which is contingent upon the Court’s approval, calls for him to be sentenced to five years in prison. The Honorable Zoe Bush scheduled sentencing for Sept. 8, 2017.
According to the government’s evidence, on March 2, 2017, at about 3:40 p.m., Hagans was working as a flagger near the 200 block of Rhode Island Avenue NE. Around the same time, the victim, Desmond Joseph, had driven his work truck into the 200 block of Rhode Island Avenue to a building in which he had been doing repair work. At some point, Mr. Joseph exited his truck to move traffic cones out of the way, so that he could drive his truck into a parking lot.
When Hagans noticed that Mr. Joseph had moved the traffic cones, Hagans approached him and began arguing with him. Witnesses were present when the argument took place. One heard Hagans say to Mr. Joseph: “he was a gangsta up there . . . he was a big man up there” (or words to that effect). That witness then observed Hagans throw a single punch, contacting Mr. Joseph’s head, causing Mr. Joseph backwards and hit his head on the street. According to witnesses, as soon as Hagans delivered the punch, Mr. Joseph was “knocked out” and fell backwards off the curb and onto the street. Another witness said that while Mr. Joseph and Hagans were arguing, Mr. Joseph had a cell phone in his hand and appeared to be making a phone call. Witnesses also said that while the two men were arguing, Mr. Joseph never had anything in his hands.
Mr. Joseph, 41, was taken to the hospital with a hematoma to the back, right portion of his head with no brain activity. On or about he died from injuries caused by the defendant.
In announcing the pleas, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office including Victim/Witness Advocate Jennifer Allen and Paralegal Specialist Alesha Matthews. Finally, he commended the work of Assistant U.S. Attorney Damien Diggs, who investigated and prosecuted the case.
Manhattan U.S. Attorney Announces Charges Against Individual for Defrauding Investors in Digital Media CompanyRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a criminal Complaint charging WILLIAM McFARLAND with wire fraud, in connection with a scheme to defraud investors in a company controlled by McFARLAND, Fyre Media LLC (“Fyre Media”), as well as a related entity responsible for organizing a music festival set to take place in the Bahamas (the “Fyre Festival”). McFARLAND was arrested today in New York, New York, and is expected to be presented before U.S. Magistrate Judge Kevin N. Fox tomorrow.
Acting Manhattan U.S. Attorney Joon Kim said: “As alleged, William McFarland promised a 'life changing' music festival but in actuality delivered a disaster. McFarland allegedly presented fake documents to induce investors to put over a million dollars into his company and the fiasco called the Fyre Festival. Thanks to the investigative efforts of the FBI, McFarland will now have to answer for his crimes.”
Assistant Director-in-Charge William F. Sweeney Jr. said: “Under McFarland's direction, Fyre Media created a promoter's marketplace for entertainment bidding. In addition to this initial business venture, McFarland went one step further in establishing a subsidiary of the company, Fyre Festival LLC. But in order to drive the success of both entities, as alleged, McFarland truly put on a show, misrepresenting the financial status of his businesses in order to rake in lucrative investment deals. In the end, the very public failure of the Fyre Festival signaled that something just wasn't right, as we allege in detail today.”
According to the allegations in the Complaint[1] unsealed today in Manhattan federal court:
McFARLAND was the founder and Chief Executive Officer of Fyre Media. In 2016, McFARLAND started Fyre Media to build a digital app that would allow individuals organizing commercial events, such as concerts, to bid for artist and celebrity bookings at such events. According to Fyre Media documents provided to investors by McFARLAND, Fyre Media’s historical and projected revenue from at least April 2016 to November 2017 consisted solely of artist bookings. In late 2016, McFARLAND established a subsidiary of Fyre Media known as Fyre Festival LLC and began promoting the Fyre Festival. McFARLAND promoted the Fyre Festival in part by claiming that it would bring a global audience together to share a life changing experience. Ultimately, the Fyre Festival was widely deemed to have been a failure.
From in or about 2016 through in or about May 2017, McFARLAND perpetrated a scheme to defraud, inducing at least two individuals to invest approximately $1.2 million dollars in Fyre Media and an associated entity based on misrepresentations about Fyre Media’s revenue and income. In order to procure these investments, McFARLAND provided materially false information. For example, McFARLAND told investors that Fyre Media earned millions of dollars of revenue from thousands of artist bookings from at least July 2016 until April 2017. In reality, during that approximate time period, Fyre Media earned less than $60,000 in revenue from approximately 60 artist bookings.
In addition, McFARLAND provided at least one investor an altered stock ownership statement, in an effort to make it appear that McFARLAND could personally guarantee the investment. Specifically, McFARLAND provided an altered brokerage statement that purported to show that he owned shares of a specific stock worth over $2.5 million, when in reality he owned shares of that stock valued at less than $1,500.
* * *
McFARLAND, 25, of New York, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the investigative work of the FBI’s New York Field Office, and thanked the Securities and Exchange Commission for their assistance.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Kristy J. Greenberg and Dina McLeod are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Man Sentenced in Hacking Conspiracy that Targeted Senior U.S. Government OfficialsRead the Press Release
ALEXANDRIA, Va. – A North Carolina man who conspired with others to gain unauthorized access to government computer systems and online accounts belonging to several United States government officials was sentenced today to 2 years in prison.
Andrew Otto Boggs, aka “INCURSIO”, 23, of North Wilkesboro, pleaded guilty on January 10. According to the statement of facts filed with the plea agreement, Boggs, along with others including co-conspirator Justin Gray Liverman, aka “D3f4ult”, 24, of Morehead City, North Carolina, joined a hacking group that called itself “Crackas With Attitude.” From about October 2015 to February 2016, the group used social engineering, including victim impersonation, to gain unlawful access to the personal online accounts of senior U.S. government officials, their families, and several U.S. government computer systems. In November 2015, Boggs and other co-conspirators used a victim's government credentials to gain unlawful access to a confidential federal law enforcement database. Several months later, Boggs publicly posted documents and personal information that the conspiracy unlawfully obtained from another government system, and which included names and contact information for tens of thousands of Department of Justice and Department of Homeland Security employees. In total, the conspiracy targeted more than 10 victims and caused more than $1.5 million in losses to victims.
Liverman pleaded guilty on January 6, and is scheduled to be sentenced on July 28. Other members of the conspiracy are located in the United Kingdom and are being prosecuted by the Crown Prosecution Service.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office; and Brian J. Ebert, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee. Assistant U.S. Attorneys Maya D. Song and Jay V. Prabhu, and Special Assistant U.S. Attorney Joseph V. Longobardo are prosecuting the case.
The U.S. Attorney’s Offices for the Eastern and Western Districts of North Carolina, and the FBI’s Charlotte Division provided significant assistance with the investigation.
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. 1:16-cr-314 (Boggs), and 1:16-cr-313 (Liverman).
Man Admits to Possessing Child PornographyRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Ryan Smith, age 23, formerly of Charleston, South Carolina, has entered a guilty plea in federal court in Columbia, to possessing child pornography containing images of children under the age of 12 that had traveled in interstate/foreign commerce by computer, a violation of 18 U.S.C. § 2252A. United States District Judge Joseph F. Anderson, Jr. accepted the guilty plea and will impose sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Smith used a University of South Carolina computer, in Columbia, to access a pay to view child pornography hidden service on the internet in March 2016. Law enforcement agencies in the United States and in other countries began monitoring the site and determined that Smith was one of many people accessing the web site. Further investigation revealed that Smith also possessed images of child pornography involving prepubescent children on his personal lap top computer.
Ms. Drake stated the maximum penalty for possessing child pornography containing images of children younger than 12 years old is imprisonment for up to 20 years plus supervised release from 5 years to life and/or a fine of $250,000.
The case was investigated by agents of the Federal Bureau of Investigation and ICE-Homeland Security Investigations. Assistant United States Attorney William E Day, II of the Columbia office is prosecuting the case.
This case was brought 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, please visit www.projectsafechildhood.gov.
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Local Businessman Sentenced to 180 Months in Prison for Orchestrating $70 Million Ponzi SchemeRead the Press Release
DAYTON – William M. Apostelos, 55, formerly of Springboro, Ohio, was sentenced in U.S. District Court to 180 months in prison for defrauding nearly 500 victims in a $70 million Ponzi scheme.
Apostelos pleaded guilty to conspiracy to commit mail and wire fraud and theft or embezzlement from an employee benefit plan in February.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio; Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office; Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI); Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service; James Vanderberg, Special Agent in Charge, U.S. Department of Labor Office of Inspector General; Joe Rivers, Regional Director of the U.S. Department of Labor Employee Benefits Security Administration; and Andrea Seidt, Commissioner, Ohio Department of Commerce Division of Securities, announced the sentence handed down today by U.S. District Judge Thomas M. Rose.
Apostelos and his wife, Connie, also known as Connie Coleman, were indicted in October 2015. According to court documents, beginning in 2009, and continuing for at least five years, the couple and others orchestrated a Ponzi scheme in the Dayton area in which nearly 480 investors lost more than $20 million collectively. Apostelos received $70 million in investment funds in total.
William Apostelos operated and oversaw multiple purported investment and asset management companies in the Dayton area, including WMA Enterprises, LLC, Midwest Green Resources, LLC and Roan Capital. He falsely reported that he held a degree in mathematics and was a registered securities broker.
Connie Apostelos also operated and oversaw multiple companies in the Dayton area, including Coleman Capital, Inc. and Silver Bridle Racing, LLC. These companies were allegedly operated through improper use of investor funds to William Apostelos’ companies.
The couple recruited investors from 37 states to invest in WMA and Midwest Green, telling the investors that their money would be used for acquiring stocks or securities, purchasing real estate or land, providing loans to business and buying gold and silver.
Rather than investing the money, the couple used it to pay for personal luxuries. According to court documents, William Apostelos was spending $35,000 per month on his wife’s horse racing company and $400 per month on Victoria’s Secret lingerie.
When the defendants became late on interest payments to the victims, they advised that their bank account had been hacked, a bank mistakenly failed to wire payment and/or the deal the victim had invested in was temporarily on hold.
The government has seized two racehorses, vehicles, jewelry, artwork and cash totaling approximately $650,000 from the couple.
“This was a massive and devastating fraud – the largest Ponzi scheme ever in Dayton,” U.S. Attorney Glassman said. “Apostelos thoroughly deserves the substantial prison sentence that he received today.”
“In Ponzi schemes the promoter eventually runs out of other people's money and the scheme collapses like a house of cards," said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “William Apostelos left approximately 500 investors in financial peril and created a recipe for devastation that could last a lifetime.”
“William Apostelos stole approximately $1.9 million from pension funds that American workers were counting on for retirement. We will continue to work with our law enforcement partners to safeguard employee benefit plan assets," said James Vanderberg, Special Agent in Charge, Chicago Region, U.S. Department of Labor, Office of Inspector General.
“Mr. Apostelos falsely reported that he was a registered securities broker,” said Ohio Securities Commissioner Andrea Seidt. “This is why we encourage investors to always check the background of people who try to sell them any kind of investment product. Ohioans can call our Investor Protection Hotline at 877-683-7841 to find out if the person is licensed to sell securities and if the product is properly registered.”
Steven Scudder, 62, of Centerville, an attorney who served as trustee of the WMA Trust, pleaded guilty in U.S. District Court on January 19 to wire fraud, admitting that he used his position as an attorney to facilitate the fraudulent investment scheme. He was sentenced to serve 14 months in prison.
Connie Apostelos pleaded guilty to one count of mail fraud on April 4 and is scheduled for sentencing on August 2 before Judge Rose.
U.S. Attorney Glassman commended the investigation of this case by law enforcement, and Assistant United States Attorney Brent G. Tabacchi and Deputy Criminal Chief Laura Clemmens, who are prosecuting the case, as well as Enforcement Attorney Brian Peters, who represented the Ohio Division of Securities on the case.
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Las Vegas Man Sentenced to More Than Six Years in Prison for $5.3 Million Advance Fee Grant Scheme Targeting Small Business OwnersRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was sentenced today to 78 months in prison for conspiracy to commit a nearly $5.3 million advance fee fraud scheme targeting small business owners seeking grant funding, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Gregory Villegas, 37, pleaded guilty on March 17, 2017, to one count of conspiracy to commit wire fraud. In addition to the term of prison, U.S. District Chief Judge Gloria M. Navarro ordered him to pay restitution in the amount of $5,908,726.38, and sentenced him to three years of supervised release.
According to his plea agreement, from March 1, 2008 to about May 2, 2012, Villegas and his co-conspirators Christine Gagnon, Mickey Gines, and others, defrauded at least 390 small business owners for an approximate total loss of $5,261,218. Villegas and his conspirators pretended to operate companies that would obtain grants for the small business owners from public and private sources. In truth, Villegas and his conspirators never intended to pursue any grant funding for the victims. The sole purpose of the scam was to enrich Villegas and conspirators. He and his conspirators made numerous false statements, including false promises of grant funding and false claims that grants had been obtained, but that the victims needed to pay additional fees for the grant agencies to release the funds. Villegas operated the scheme under multiple business names to avoid detection by consumer protection agencies and apprehension by law enforcement.
The case was investigated by the FBI and U.S. Secret Service and prosecuted by Assistant U.S. Attorney Dan Cowhig.
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Large scale marijuana distribution network dismantledRead the Press Release
Stored firearms and cash in Indianapolis storage facilities
PRESS RELEASE
Indianapolis –United States Attorney Josh Minkler announced today federal charges against six Indianapolis-area residents for their role in a large-scale marijuana distribution network in Central Indiana. The group faces charges including conspiracy to distribute 1,000 kilograms or more of marijuana, money laundering and unlawful possession of a firearm.
“Drug dealing brings guns and violence into our communities,” said Minkler. “Those who feel they can deal drugs without consequences in this district should think again.”
Those arrested include:
Joseph P. Pickett Sr. a/k/a Jay, 46, Indianapolis
Darrell P. Pickett, 52, Indianapolis
Sheila Stepp, 54, Indianapolis
Leonard O. Allen Jr., 48, Mooresville
Kelly Jo Spinks Jr., 33, Speedway
William J. Belew Jr., 32, Martinsville
The indictment alleges, between June 2015 and March 2017, the drug trafficking organization (DTO) lead by Joseph Pickett Sr., Darrell Pickett and Spinks, travelled to California and obtained between 100 and 400 pounds of marijuana each trip, then transported it back to Indianapolis. It is alleged that on at least 20 occasions, members of the DTO flew by commercial airlines to California to obtain marijuana. They also drove a motor home to a destination in California for the same purpose.
Once in Indianapolis, the marijuana was placed in storage facilities on the Westside of Indianapolis. Members of the DTO would then remove various amounts from the storage facilities for redistribution.
In total, law enforcement confiscated 181 firearms, (seven of which were stolen in Indiana) 21 vehicles, two motor homes, 16 motorcycles, $19,000 in jewelry, over $4.5 million in cash and 280 pounds of high grade marijuana.
This case was investigate by the Indianapolis Metropolitan Police Department and the Drug Enforcement Administration.
“Drug trafficking contributes to the unstableness and violence we observe within our communities today,” said DEA Assistant Special Agent in Charge Greg Westfall. “The DEA, through its core mission and its law enforcement partnerships bring safety to your neighborhoods by investigating and bringing to justice, criminal organizations that poison our streets with illegal drugs. The success of this case was a direct result of the teamwork and dedication to duty of the investigators and prosecutors who worked this investigation.”
“We are extremely thankful for our federal partnerships that continue to help us rid our streets of illegal narcotics,” said Chief Roach. “Federal, State, and Local law enforcement efforts will continue to keep the pressure on those who choose to participate in illegal narcotics selling in our community.”
According to Assistant United States Attorney Barry D. Glickman who is prosecuting this case for the government, Allen faces up to 10 years imprisonment, all other defendants face 10 years to life if convicted.
An indictment is only charge and not evidence of guilt. All defendants are considered innocent until proven guilty beyond a reasonable doubt in federal court.
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Justice Department Settles Immigration-Related Discrimination Claim against Florida Staffing CompanyRead the Press Release
The Justice Department announced today that it has reached an agreement with Sellari’s Enterprises, Inc. (Sellari’s), a company that provides staffing services in Orlando, Florida. The agreement resolves the department’s investigation into whether Sellari’s violated the Immigration and Nationality Act (INA) by discriminating against work-authorized immigrants when verifying their work authorization.
Based on its investigation, the department concluded that Sellari’s requested that non-U.S. citizens present specific documents to prove their work authorization, such as a Permanent Resident Cards or Employment Authorization Documents, while not requesting specific documents from U.S. citizens. All work-authorized individuals, whether citizens or non-citizens, have the right to choose which valid documentation to present to prove they are authorized to work. The anti-discrimination provision of the INA prohibits employers from subjecting employees to different or unnecessary documentary demands based on employees’ citizenship, immigration status or national origin.
Under the settlement, Sellari’s will pay a civil penalty of $120,000 to the United States, post notices informing workers about their rights under the INA’s antidiscrimination provision, train its staff, and be subject to departmental monitoring and reporting requirements for three years.
“The law protects individuals who are work-authorized from discriminatory obstacles during the employment eligibility verification process,” said Acting Assistant Attorney General Tom Wheeler of the Civil Rights Division. “Employers must ensure that their employment eligibility verification processes are not applied in an unlawful manner.”
The division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to different documentary requirements based on their citizenship/immigration status or national origin, or discrimination based on their citizenship/immigration status, or national origin in hiring, firing, or recruitment or referral for a fee, should contact IER’s worker hotline for assistance.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Cavan in Billings on June 27, 2017 and entering pleas of Not Guilty were:
- ROBERT JOHN BIGBACK, a 22-year-old resident of Billings, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, BIGBACK faces 10 years in prison, and $250,000 in fines. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 17-59
Appearing before U.S. Magistrate Cavan in Billings on June 22, 2017 and entering pleas of Not Guilty were:
- GEORGE SCOTT PRINDLE, a 60-year-old resident of Billings, appeared on charges of distribution of methamphetamine. If convicted of the charge contained in the indictment, PRINDLE faces 20 years in prison, and $1,000,000 in fines. The case was investigated by the FBI Task Force. PACER Case Reference. 17-64
Appearing before U.S. Magistrate Cavan in Billings on June 20, 2017 and entering pleas of Not Guilty were:
- MATTHEW FRANCESCO MANDALA, a 29-year-old resident of Billings, appeared on charges of conspiracy to possess with intent to distribute heroin, possession with intent to distribute heroin, and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious charges contained in the indictment, MANDALA faces life in prison, and $5,000,000 in fines. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 17-62
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Illegal Alien Sentenced to Federal Prison for Iowa-Minnesota Meth ConspiracyRead the Press Release
A man was sentenced June 30, 2017, to six years in federal prison for conspiracy to distribute methamphetamine.
Javier Martinez, 50, from Mexico received the prison term after a guilty plea on March 23, 2017, to conspiracy to distribute methamphetamine.
At his guilty plea hearing, Martinez admitted his involvement in a conspiracy that distributed at least 1,500 grams of actual (pure) methamphetamine from 2015 through September 2016 in Minnesota and Iowa. Martinez also admitted to purchasing about 4-12 grams of methamphetamine 3 to 4 times per week for about one year from Rogelio Garcia-Jimenez for further re-distribution.
Martinez was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Martinez was sentenced to 72 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 2-year term of supervised release after the prison term. Martinez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration; Iowa Department of Narcotics Enforcement; Minnesota Bureau of Criminal Apprehension; South Dakota Division of Criminal Investigation; Buffalo Ridge Task Force; and Internal Revenue Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-4084. Follow us on Twitter @USAO_NDIA.
Houston Pill Mill Operator Sentenced to 51 Months in Federal PrisonRead the Press Release
DALLAS — Fahim Ahmed Khan, 59, of Houston, Texas, was sentenced this morning for his involvement in a “pill mill” operation, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Khan was sentenced before U.S. District Judge Sidney A. Fitzwater to 51 months in federal prison. In addition to his prison sentence, he was ordered to pay a $17,500 fine. Khan pleaded guilty in August 2016 to one count of conspiracy to distribute a controlled substance, namely oxycodone. Judge Fitzwater ordered Khan to report to serve his sentence on September 5, 2017.
Twenty-four individuals were indicted by a federal grand jury in Dallas in February 2015 on offenses related to their participation in the prescription drug distribution conspiracy. That indictment alleged that from at least January 2013 through July 2014, the defendants participated in a scheme to illicitly obtain prescriptions for pain medications, such as oxycodone and hydrocodone, and then distribute those controlled substances for profit. As part of the conspiracy, individuals, often homeless or of limited means, were recruited and paid to pose as patients at medical clinics, including the McAllen Medical Clinic, to obtain prescriptions to fill those prescriptions at designated pharmacies.
Superseding indictments were returned in December 2015 and in January 2016, and a total of 26 individuals have now been convicted.
According to plea documents in Khan’s case, beginning in January 2013 and continuing through July 29, 2014, Khan, who has never been a licensed medical practitioner, has never held a DEA registration number, and has never been authorized to distribute or dispense oxycodone, a Schedule II controlled substance, obtained oxycodone with the intent to distribute it at a later time.
Khan established relationships with medical professionals and clinic owners, including co-conspirators, Muhammad Faridi and Dr. Richard Andrews of McAllen Medical Clinic in Dallas, Texas, to assist in the illegal distribution of oxycodone. Khan also pursued relationships with prescription ring leaders and agreed to bring patients to clinics and assisted patients in obtaining prescriptions. Khan would then collected between $420 and $600 in cash from each patient who obtained a prescription for oxycodone. The money collected was then distributed among Faridi, Andrews, himself, and office staff.
This Organized Crime Drug Enforcement Task Force (OCDETF) investigation is being conducted by the Drug Enforcement Administration, with assistance from the Internal Revenue Service Criminal Investigation, the Texas Department of Public Safety, the Louisiana State Police, the Grand Prairie Police Department, the Dallas Police Department, the Houston Police Department, the Arlington Police Department, the Greenville Police Department, the Parker County Sheriff’s Office, the U.S. Marshal’s Service, the U.S. Postal Inspection Service, and the Diplomatic Security Service.
Assistant U.S. Attorney Mary Walters is in charge of the prosecution.
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Houston Bank Robber Handed Significant SentenceRead the Press Release
HOUSTON – A 49-year-old Houston man has been ordered to federal prison for more than 21 years as a result of his convictions for two counts of bank robbery, one count of attempted bank robbery and one count of escape, announced Acting U.S. Attorney Abe Martinez. In May 2016, a federal jury sitting in Houston convicted Henry Lee London Jr. following a three-day trial and approximately five hours of deliberation.
Today, U.S. District Judge Melinda Harmon ordered he serve a total of 262 months in federal prison. The sentence included 240 months for the first bank robbery which will run concurrently to 60 months for the escape. He also received 22 months for each of the other two bank robberies which will served concurrently to each other but consecutive to the other term. The judge noted that London had two prior federal bank robbery convictions which made him a career offender.
“This is exactly the kind of criminal we are targeting with our collaborative Houston Law Enforcement Violent Crime Initiative announced yesterday,” said Martinez. “Reduction of violent crime is important to the community and this sentence reflects the severity of consequences to those that put our citizens at risk.”
During the trial, the jury heard that London escaped from the Leidel Sanction Center on Commerce Street in Houston on March 20, 2014, where he was serving the remainder of his federal sentence for the previous bank robberies. He was wearing a plain blue baseball hat, black shirt, a tan backpack and shoes. Shortly thereafter, a man wearing the same clothing robbed the BBVA Compass bank on 43rd Street in Houston. The robber handed a teller a demand note that read “This is a robbery give large bills.”
Four days later, a man wearing the same clothing and plain blue baseball hat attempted to rob an IBC bank on Katy Freeway in Houston. He was unsuccessful. The teller testified that she was trying to get the money but the robber became frustrated and left. Less than an hour later, the same man wearing the same clothes and plain blue baseball hat robbed the Comerica Bank on Highway 6 South in Houston.
The jury saw videos and photos from each of the robberies and heard testimony from 10 witnesses. Three of the witnesses knew London well from his personal life and were able to identify him in all of the robberies.
London’s defense did not dispute the fact that he escaped from the halfway house. They also did not dispute that the banks were robbed, but contended London was not the robber. The jury was not convinced and found him guilty on all counts.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI Bank Robbery Task Force which included the U.S. Marshals Service, sheriff’s offices in Harris and Fort Bend Counties and the Houston Police Department conducted the investigation. Assistant U.S. Attorneys Jennie Basile and Jill Stotts are prosecuting the case.
Hoover Man Pleads Guilty to Federal Wire, Bank FraudRead the Press Release
TUSCALOOSA – A Hoover man pleaded guilty to fraud charges today in federal court for stealing money from two former employers and a non-profit organization that supported the University of Alabama’s Million Dollar Band, announced Acting U.S. Attorney Robert O. Posey and FBI Acting Special Agent in Charge David W. Archey.
RANDALL SHO WOODS, 33, pleaded guilty before U.S. District Court Judge L. Scott Coogler to two counts of wire fraud and one count of bank fraud. Woods sentencing is scheduled Oct. 12 in Tuscaloosa.
Ingram’s Accounting & Financial Management Inc. in Tuscaloosa previously employed Woods as a staff accountant. While working at the business, Woods fraudulently charged more than $30,000 on corporate credit card accounts for personal expenses, according to the charges and Woods’ plea. Another company, Birmingham-based State Traditions, previously employed Woods as an account clerk. While at State Traditions, Woods engaged in numerous fraudulent activities, including stealing from the company’s Pay-Pal account and forging the endorsement of one of State Traditions’ owners on multiple checks. Combined, Woods stole more than $150,000 from State Traditions, according to his plea. Finally, while Woods served as treasurer of the Million Dollar Band Association, he stole more than $28,000 by writing checks payable to himself, according to his plea.
The maximum penalty for wire fraud is 20 years in prison and a $250,000 fine. The maximum prison sentence for bank fraud is 30 years.
The FBI investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark is prosecuting.
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