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Tuesday 2 May 2017
Stock Promoter Convicted in $131 Million Market Manipulation SchemeRead the Press Release
Earlier today, following a two-week trial, a federal jury in Brooklyn, New York, returned a guilty verdict on all counts against Louis Petrossi, a former registered broker, for his role in a $131 million fraudulent promotion and market manipulation scheme involving ForceField Energy Inc. (ForceField), a publicly-traded company listed on the NASDAQ under the ticker symbol “FNRG.” The defendant used a company called the Wealth Research Institute to induce investors to purchase ForceField stock, for which he received a secret ten percent commission. Petrossi and others also engaged in illegal trading to fraudulently increase the value of the stock. The defendant was convicted of conspiracy to commit securities fraud, conspiracy to commit wire fraud, money laundering conspiracy, and securities fraud. Petrossi is the ninth defendant convicted in this case.
When sentenced by United States District Judge Brian M. Cogan, Petrossi faces a maximum sentence of 20 years’ imprisonment.
The verdict was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
Ms. Rohde thanked the FBI for its hard work and dedication in leading the investigation and expressed her appreciation to the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority, Inc., Criminal Prosecution Assistance Group (FINRA CPAG) for their cooperation and assistance.
The government’s case is being prosecuted by Assistant United States Attorneys Mark E. Bini and Lauren H. Elbert of the Office’s Business and Securities Fraud Section.
The Defendant:
Louis Petrossi
Age: 76
Reno, Nevada
E.D.N.Y. Docket No. 16-CR-234 (BMC)
Stamford Man Who Captured and Killed Federally Protected Hawks is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ADAM BOGUSKI, 44, of Stamford, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to one year of probation for killing red-tailed hawks and Cooper’s hawks. Judge Chatigny also ordered BOGUSKI to pay a $250 fine and perform 60 hours of community service at a local animal shelter.
Red-tailed hawks and Cooper’s hawks are birds of prey, also known as raptors, and consume pigeons as part of their natural diet. These hawks are protected under the federal Migratory Bird Treaty Act.
According to court documents and statements made in court, Thomas Kapusta and BOGUSKI were racing pigeon enthusiasts who constructed and maintained a pigeon coop at 330 Weed Avenue in Stamford. Kapusta and BOGUSKI kept a large number of racing pigeons at this coop, and regularly let them fly outside the coop for exercise. Because Kapusta and BOGUSKI viewed these hawks as a threat to their pigeons, they systematically captured the hawks in a trap specifically designed to capture birds of prey, shot and killed them in the trap, and disposed of their carcasses.
Knowing that he was violating the law by capturing and killing the hawks, Kapusta instructed BOGUSKI to refer to the hawk trap as a “breeding cage” if law enforcement ever inquired.
On August 8, 2016, BOGUSKI pleaded guilty to one count of conspiracy to take, capture and kill red-tailed hawks and Cooper’s hawks, and two counts of taking, capturing and killing Cooper’s hawks. In pleading guilty he admitted that he killed Cooper’s hawks on September 27, 2015 and October 17, 2015.
On February 17, 2016, Kapusta pleaded guilty to one count of conspiracy to take, capture and kill red-tailed hawks and Cooper’s hawks, and four counts of taking, capturing and killing red-tailed hawks or Cooper’s hawks. In pleading guilty he admitted that he killed red-tailed hawks on September 8 and October 14, 2015, and Cooper’s hawks on September 2 and October 21, 2015.
On October 19, 2016, Judge Chatigny sentenced Kapusta to one year of probation and order him to pay a $5,500 fine and perform 90 hours of community service at a local animal shelter.
Judge Chatigny ordered several special conditions of Kapusta’s and BOGUSKI’s terms of probation that restrict their ability to engage in the racing pigeon hobby, including allowing the pigeon coop in Stamford to be randomly inspected by federal and state environmental authorities.
This matter was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement and the Division of Refuge Law Enforcement, and the Environmental Conservation Police of the Connecticut Department of Energy and Environmental Protection, with the assistance of the Stamford Police Department. The case was prosecuted by Assistant U.S. Attorney Hal Chen.
South Bay Methamphetamine Trafficker Sentenced to Ten Years in PrisonRead the Press Release
SAN JOSE – Victor Francisco Ramirez, Jr., was sentenced today to 120 months in prison for his role in a conspiracy to possess with the intent to distribute methamphetamine announced United States Attorney Brian J. Stretch and Drug Enforcement Administration (DEA) Special Agent in Charge John J. Martin. The sentence was handed down by the Honorable Beth Labson Freeman, U.S. District Judge, following Ramirez’s guilty plea on November 15, 2016.
According to his plea agreement, Ramirez, 20, of San Jose, admitted that in April and May of 2016, he knowingly participated in two methamphetamine sales in the San Jose area. Ramirez admitted that on April 28, 2016, he delivered approximately 487.3 grams of a mixture and substance containing methamphetamine to another individual at a parking lot on West Capitol Expressway in San Jose in exchange for a payment of $3,000. Ramirez further admitted that on May 19, 2016, he delivered approximately 1056.5 grams of a mixture and substance of containing methamphetamine to an individual in a parking lot on East Capitol Expressway in exchange for a payment of $6,800.
On July 7, 2016, a federal grand jury indicted Ramirez and three co-conspirators for their respective roles in the conspiracy to distribute methamphetamine. For his part, Ramirez was charged with one count of conspiracy to possess with intent to distribute methamphetamine, in violation of 21 U.S.C. § 846, and two counts of possession with intent to distribute methamphetamine, in violation of 21 U.S.C. § 841(a)(1). Pursuant to his guilty plea, Ramirez pleaded guilty to the conspiracy charge, and the possession with intent to distribute charges were dismissed.
In addition to the prison term, Judge Freeman ordered Ramirez to serve a five-year period of supervised release. Ramirez is currently out of custody on a $100,000 secured bond. Judge Freeman ordered the defendant to surrender on or before July 6, 2017, to begin serving his sentence.
Assistant U.S. Attorney Jeff Nedrow is prosecuting the case with the assistance of Susan Kreider. The prosecution is the result of an investigation by the DEA.
Seventeen Indicted on Federal Methamphetamine Conspiracy and Firearms ChargesRead the Press Release
KNOXVILLE, Tenn. – On April 4, 2017, a federal grand jury in Knoxville returned a seven-count indictment against the following individuals for their roles in the distribution of methamphetamine:
Keith L. Bird, a.k.a. “Dirty Bird,” 37, of Friendsville, Tennessee;
Daniel Hixon, 32, of Chattanooga, Tennessee;
James Haynes, a.k.a.“Haun,” 28, of Norcross, Georgia;
Christopher Mitchell, a.k.a. “Banjo,” 30, of Maryville, Tennessee;
Michael Smith, 32, of Norcross, Georgia;
Steve Bartholomew, a.k.a. “Trigger,” 50, of Louisville, Tennessee;
Samuel Higgins, a.k.a. “Sambo,” 25, of Maryville, Tennessee;
Jeremiah Higgins, 24, of Maryville, Tennessee;
Dennis Clark, a.k.a. “Big Brother,” 30, of Philadelphia, Tennessee;
Ashley Morris-Casebolt, 31, of Lenoir City, Tennessee;
Chadwick Condry, 44, of Maryville, Tennessee;
Thomas Freeman, 43, of Greenback, Tennessee;
William Norman, 42, of Rocky Top, Tennessee;
George Nicholas Bailey, 38, of Maryville, Tennessee;
John Shane Bailey, 44, of Knoxville, Tennessee;
Burt Cable, 46, of Maryville, Tennessee; and
Shannon Kirby, 49, of Friendsville, Tennessee
Trial has been set for August 1, 2017, before the Honorable Pamela Reeves, U.S. District Court Judge.
The indictment, on file with the U.S. District Court, alleges that each of these individuals was involved in a conspiracy to distribute 50 grams or more of methamphetamine in the Eastern District of Tennessee and elsewhere. Bird, Hixon, Haynes, and Smith were also each charged with one count of possession of a firearm in furtherance of a drug trafficking crime. Additionally, Bird was charged with two counts of distributing five grams or more of methamphetamine.
If convicted of the methamphetamine conspiracy charge, each faces a minimum mandatory term of imprisonment of at least 10 years and up to life, at least five years of supervised release, a fine of up to $10,000,000, any applicable forfeiture, and a $100 special assessment. The punishment for the firearm charges returned against Bird, Hixon, Haynes, and Smith is a minimum mandatory term of at least five years and up to life in prison, which must be served consecutively to any other prison term imposed, up to five years supervised release, a fine of up to $250,000, and a $100 special assessment. If convicted of the two methamphetamine distribution counts, Bird also faces a minimum mandatory sentence of at least five and up to 40 years in prison, at least four years of supervised release, a fine of up to $5,000,000, any applicable forfeiture, and a $100 special assessment.
This indictment is the result of an investigation by the Tennessee Bureau of Investigation, Fifth Judicial Drug Task Force, Blount County Sheriff’s Office, Ninth Judicial Drug Task Force, Loudon County Sheriff’s Office, Knox County Sheriff’s Office, and Federal Bureau of Investigation. Assistant U.S. Attorney Kelly A. Norris will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Saga Restaurant Owner Harbored Illegal AliensRead the Press Release
PITTSBURGH – An Allegheny County resident pleaded guilty yesterday in federal court to a charge of harboring illegal aliens, Acting United States Attorney Soo C. Song announced today.
Xing Zheng Lin, aka Steve Lin, age 44, of McKees Rocks, PA pleaded guilty to one count before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that from in and around 2009, until on or about January 10, 2014, Lin harbored illegal aliens who were employed at Saga Restaurant in Monroeville, Robinson, and Bethel Park, all of which were owned by Lin.
Judge Conti scheduled sentencing for July 31, 2017, at 3:30 p.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Lin.
Pursuant to Executive Order on Public Safety, Department of Justice Releases Data on Incarcerated AliensRead the Press Release
President Trump’s Executive Order on Public Safety in the Interior of the United States requires the Department of Justice to collect relevant data and provide quarterly reports on data collection efforts. The data in this release shows a significant prison population of incarcerated aliens.
“Illegal aliens who commit additional crimes in the United States are a threat to public safety and a burden on our criminal justice system,” said Attorney General Jeff Sessions. “This is why we must secure our borders through a wall and effective law enforcement, and we must strengthen cooperation between federal, state and local governments as we strive to fulfill our sacred duty of protecting and serving the American people.”
Below is a summary of data collected under Section 16 of the Order, which directs “the Secretary [of Homeland Security] and the Attorney General . . . to collect relevant data and provide quarterly reports” regarding the following subjects: (a) the immigration status of all aliens incarcerated under the supervision of the Bureau of Prisons; (b) the immigration status of all aliens incarcerated as federal pretrial detainees; and (c) the immigration status of all convicted aliens in state prisons and local detention centers throughout the United States.
Information Regarding Immigration Status of Aliens Incarcerated Under the Supervision of the Federal Bureau of Prisons
The Department’s Bureau of Prisons (BOP) has an operational process for maintaining data regarding foreign-born inmates in its custody. On a daily basis, BOP supplies this data to Immigration and Customs Enforcement (ICE). ICE, in turn, analyzes that data to determine the immigration status of each inmate and provides that information back to BOP.
By way of satisfying the department’s first quarterly report of this data, below is information regarding aliens currently incarcerated under the supervision of BOP. This data is current as of March 25, 2017:
There are 45,493 foreign-born inmates currently in BOP custody, of which 3,939 are U.S. citizens (either naturalized or derivative). Of the remaining 41,554 foreign-born inmates (aliens):
o Approximately 22,541 (54.2 percent) are aliens for which final immigration orders have been issued for their removal;
o Approximately 13,886 (33.4 percent) are aliens who are under ICE investigation for possible removal;
o Approximately 5,101 (12.3 percent) are aliens still pending adjudication (in other words, ICE has charged these aliens as removal cases, but a final disposition has not yet been reached); and
o Approximately 26 (0.1 percent) are aliens who have been granted relief on the basis of asylum claims.
Information Regarding the Immigration Status of Aliens Incarcerated as Federal Pretrial Detainees
The United States Marshals Service (USMS) is the Justice Department’s component charged with housing and care of federal pretrial detainees. USMS recently instituted a program to capture data regarding the immigration status of these detainees. During the prisoner intake process, USMS captures arrestee data such as place of birth, citizenship country and alien number (if available), in a system called the Justice Detainee Information System (JDIS).
At the department’s direction, USMS has begun providing ICE with complete data on all foreign-born detainees on a daily basis. The first of these data transfers to ICE took place on April 5, 2017, with a transfer of data associated with approximately 19,000 foreign-born detainees. ICE anticipates that its analysis of this data will soon be complete, and the department will then provide an updated status report.
Immigration Status of All Convicted Aliens Incarcerated in State Prisons and Local Detention Centers Throughout the United States
The Department of Justice and the Department of Homeland Security (DHS) do not currently have a program that collects data regarding the immigration status of convicted aliens incarcerated in state prisons and local detention centers throughout the United States. Neither the Department of Justice nor DHS can independently collect this data without the assistance of the other. To address this need, the Department of Justice is in the process of establishing such a program through its Office of Justice Programs (OJP), which houses the Bureau of Justice Statistics (BJS). BJS already collects some relevant aggregate data from state and local facilities and the department intends to permanently expand BJS’s data collection efforts in this area.
Prior Felon from Albuquerque Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Pilar Angel Lucero, 33, of Albuquerque, N.M., pled guilty today to violating federal firearms laws. The plea agreement included the recommendation that Lucero be sentenced to 48 months in prison followed by a term of supervised release to be determined by the court.
Lucero was charged by criminal complaint on July 7, 2016, with being a felon in possession of a firearm and ammunition on June 16, 2016, in Bernalillo County, N.M., following a routine traffic stop by the Albuquerque Police Department (APD). subsequently was indicted on the same charge on July 28, 2016. According to the indictment, was prohibited from possessing firearms or ammunition because of his previous felony convictions for shooting at a dwelling, shooting at or from a motor vehicle, drug trafficking, child abandonment/abuse, conspiracy to traffic in controlled substances, being a felon in possession of a firearm, and conspiracy to commit burglary of a house.
During today’s proceedings, Lucero pled guilty to the indictment and admitted that on June 16, 2016, APD officers found a handgun with 11 rounds of ammunition in Lucero’s vehicle during a traffic stop. Lucero further admitted purchasing the handgun by using a fake New Mexico driver’s license, and while knowing that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon. Lucero remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the APD. Assistant U.S. Attorney Jennifer M. Rozzoni is prosecuting the case.
Phoenix Man Sentenced to Life for Robbery Spree That Culminated in the Killing of a Retired Police OfficerRead the Press Release
PHOENIX – On May 1, 2017, John Albert Campos, Sr., 49, of Phoenix, Ariz., was sentenced by U.S. District Judge Susan R. Bolton to six consecutive natural life sentences with no possibility of parole. Campos had previously pleaded guilty to carjacking resulting in death, use of firearm during a crime of violence resulting in death, and various other counts of carjacking, use of a firearm during a crime of violence, and Hobbs Act robbery.
“The defendant was appropriately sentenced to life in prison for his senseless crimes, which resulted in the death of an innocent victim who had the terrible misfortune to be in the wrong place at the wrong time,” stated Acting U.S. Attorney Elizabeth A. Strange.
"Campos’ actions have had a devastating, life-long impact on the victim’s family. The FBI will continue to work with our partner agencies to pursue justice for all victims. This sentence was the result of outstanding efforts by the U.S. Attorney’s Office, the FBI, the Phoenix Police Department, the Tempe Police Department, the U.S. Marshal’s Service, and the Gila River Police Department." said FBI Special Agent in Charge Michael Deleon.
On Dec. 24, 2015, Campos carjacked three victims in the parking lot of the Wild Horse Pass Casino on the Gila River Indian Community. Campos shot and killed one of the victims, a retired California police officer. When a fourth man arrived at the scene and attempted to assist the other victims, Campos proceeded to carjack him while brandishing a firearm. The investigation revealed that Campos also committed six armed robberies of convenience stores, grocery stores, and restaurants in Phoenix and Tempe in the two days before the carjackings.
The investigation in this case was conducted by the Federal Bureau of Investigation, the Gila River Police Department, the Phoenix Police Department, and the Tempe Police Department. The prosecution was handled by Dimitra H. Sampson and Keith E. Vercauteren, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-16-00011-PHX-SRB
RELEASE NUMBER: 2017-039_Campos
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Ohio woman found guilty of wire and mail fraudRead the Press Release
CLARKSBURG, WEST VIRGINIA – A federal jury convicted Debra Skipper, 60, of Euclid, Ohio, of mail and wire fraud, Acting United States Attorney Betsy Steinfeld Jividen announced.
Evidence presented at trial indicated that Skipper conspired with her son, Tyree Skipper, to file false tax returns in multiple states using collected names, birth dates and social security numbers of numerous individuals, including federal inmates. The crimes occurred in Gilmer County and elsewhere between December 2012 and May 2013. Tyree Skipper previously pled guilty to two counts of “Wire Fraud” in February 2017.
Following a two-day trial, a jury found Debra Skipper guilty of one count of “Conspiracy to Commit Mail and Wire Fraud” and two counts of “Wire Fraud.” She faces up to 20 years in prison and a fine of up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The case was investigated by Internal Revenue Service.
U.S. District Judge Irene M. Keeley presided.
Nixa Man Pleads Guilty to Illegal Bitcoin ExchangeRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Nixa, Mo., man pleaded guilty in federal court today to conducting an illegal money transmitting business by exchanging bitcoin for cash without a license.
Jason R. Klein, 37, of Nixa, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with conducting an unlicensed and unregistered money transmitting business.
Klein was the founder of two technology-based companies: Logic Forte and Datality Networks. Logic Forte purportedly provided consulting and computer programming assistance for the restaurant industry. Datality Networks purportedly provided Internet housing and network consulting.
Klein is the president of the Association of Information Technology Professionals (“AITP”) – Southwest Missouri. AITP is a professional association focused on technology education for business professionals. AITP’s southwest Missouri chapter has approximately 230 members and is the largest chapter in the United States.
By pleading guilty today, Klein admitted that he represented himself on the Internet to be a bitcoin exchanger. However, Klein was not a licensed money transmitter with the state of Missouri or with the Financial Crimes Enforcement Network, as required by federal and state law.
An undercover federal agent responded to an online advertisement posted by Klein. Klein told the undercover agent that his rate included a 10 percent commission “for an in-person $1,000 cash exchange.”
Between Feb. 6, 2015, and July 27, 2016, Klein, acting with another, met with two undercover federal agents on numerous occasions to exchange bitcoin for cash. Today’s plea agreement cites five separate transactions in which money (ranging from $1,000 to $15,000) was exchanged in person for an electronic transfer of bitcoin. Each of the transactions included a fee that Klein or another person charged the undercover agents, for a total of $2,122 in fees.
Under federal statutes, Klein is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Bitcoin Background
Bitcoin are not illegal in and of themselves and have legitimate uses. Bitcoin are a decentralized form of electronic currency, existing entirely on the Internet and not in any physical form. The currency is not issued by any government, bank, or company, but rather is generated and controlled automatically through computer software operating on a “peer-to-peer” network. Bitcoin transactions are processed collectively by the software-enabled computers composing the network.
To acquire bitcoin in the first instance, a user typically must purchase them from a bitcoin “exchanger.” In return for a commission, bitcoin exchangers accept payments of currency in some conventional form, including cash, and exchange the money for a corresponding number of bitcoin, based on a fluctuating exchange rate. Exchangers also accept payments of bitcoin and exchange the bitcoin back for conventional currency, again, charging a commission for the service.
Once a user acquires bitcoin from an exchanger, the bitcoin are kept in a “wallet” associated with a bitcoin “address,” designated by a complex string of letters and numbers. The “address” is analogous to the account number for a bank account, while the “wallet” is analogous to a bank safe where the money in the account is physically stored. Once a bitcoin user funds his wallet, the user can then use bitcoin in the wallet to conduct financial transactions over the Internet by transferring bitcoin from his bitcoin address to the bitcoin address of another user.
This case is being prosecuted by Assistant U.S. Attorney Casey Clark. It was investigated by IRS-Criminal Investigation.
Newark Man Sentenced to 79 Months in Prison for Posing as Law Enforcement Officer During Home Invasion of Paterson, New Jersey, ResidenceRead the Press Release
NEWARK, N.J. – A Newark, New Jersey, man was sentenced today to 79 months in prison for trying to rob a Paterson, New Jersey, residence while dressed in a Passaic County Sheriff’s uniform, Acting U.S. Attorney William E. Fitzpatrick announced.
Clemente R. Carlos, 30, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of conspiracy to commit Hobbs Act robbery. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Carlos admitted that on Aug. 12, 2015, he conspired with Jason Thompson, 34, of Paterson, to rob a Paterson home because they believed the resident kept cash proceeds from his distribution business at that location. At around 7:00 a.m. that day, Carlos and Thompson, both dressed in Passaic County Sherriff’s uniforms, accosted a female victim and her infant as the victim was leaving her residence in Paterson. The two men, posing as law enforcement officers, led the victim back into her apartment inside the residence.
Once inside, Thompson removed a firearm from a sidearm holster and pointed it at the victim’s brother, who had been sleeping inside the apartment. Thompson then used a zip-tie to restrain the man’s hands behind his back and instructed him to kneel on the floor. After searching the apartment and failing to find the money they were looking for, Thompson and Carlos left the residence.
In addition to the prison term, Judge Cecchi sentenced Carlos to three years of supervised release.
Thompson was indicted March 22, 2017, on one count of conspiracy to commit Hobbs Act robbery, one count of attempted Hobbs Act robbery, one count of brandishing a firearm during a crime of violence, and one count of possession of a firearm by a convicted felon. The allegations against him are merely accusations, and he is innocent unless and until proven guilty.
U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and members of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation leading to today’s guilty plea. He also thanked the Passaic County Sheriff’s Office and the Paterson Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Jamari Buxton of the U.S. Attorney’s Organized Crime/Gangs Unit in Newark.
Defense counsel: Gary Cutler Esq., Newark
New Jersey Women Facing Federal Drug Trafficking Charges Arising from DEA Seizure of Fourteen Pounds of HeroinRead the Press Release
ALBUQUERQUE – This morning a U.S. Magistrate Judge sitting in Albuquerque, N.M., found probable cause to support a criminal complaint charging Ashely Yarell Cruz-Castro, 21, and Stephanie Esther Caminero, 21, both of Patterson, N.J., with heroin trafficking offenses. Cruz-Castro and Caminero were released pending trial under pretrial supervision and other conditions of release.
DEA Special Agents arrested Cruz-Castro and Caminero on April 29, 2017, after they allegedly seized a total of 6.6 kilograms (14.52 pounds) of heroin from the two women during an interdiction investigation at the Greyhound Bus Station in Albuquerque. According to the criminal complaint in which the two women are charged, Cruz-Castro and Caminero each allegedly possessed approximately 3.3 kilograms of heroin in their respective duffle bags.
If convicted, Cruz-Castro and Caminero each face a statutory mandatory minimum of ten years and a maximum of life in prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The case against Cruz-Castro and Caminero was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorney George Kraehe as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
New Jersey Business Owner Sentenced to 50 Months in Prison for Operating Corporate Ponzi SchemeRead the Press Release
NEWARK, N.J. – The owner of a group of freight payment, logistics, and shipping businesses headquartered in Branchburg, New Jersey, was sentenced today to 50 months in prison for wire fraud and money laundering, Acting U.S. Attorney William E. Fitzpatrick announced.
Shirley Sooy, 66, of Fort Smith, Arkansas, previously pleaded before U.S. District Judge William Walls to an information charging her with one count of wire fraud and one count of transacting in criminal proceeds. Judge Walls imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
From 2010 through April 2013, Sooy, through a collection of businesses operating under the umbrella of the “TransVantage Group,” entered contracts with corporate clients – referred to in a criminal complaint as the “victim companies.” TransVantage audited freight bills generated by common carriers and freight forwarders hired by the victim companies. TransVantage was obligated to pay the audited and approved freight bills to the carriers from funds provided by those companies, and the funds were supposed to be held in trust by TransVantage until paid over to the carriers. The victim companies also paid TransVantage for its purported auditing services, payments separate and apart from the carrier payment funds.
Sooy operated TransVantage as a Ponzi scheme, which resulted in substantial losses to the victim companies. Sooy and others comingled the funds from the victim companies – funds that were to have been paid to carriers – and then misused those funds in various ways. They paid unauthorized operating expenses and personal expenses.
In addition to the prison term, Judge Walls sentenced Sooy to two years of supervised release and ordered her to pay restitution of $1,185,404.
Acting U.S. Attorney Fitzpatrick credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge James V. Buthorn; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, for the investigation leading to today’s guilty sentencing.
The government is represented by Senior Litigation Counsel Andrew Leven of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Michael J. Rogers Esq., Somerville, New Jersey
New Haven Man Sentenced for Enticing a Minor for SexRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a New Haven, Mo., man was sentenced in federal court today for attempting to entice or coerce a 14-year-old victim (actually an undercover law enforcement officer) to engage in illicit sex.
Jason M. Strubberg, 27, of New Haven, was sentenced by U.S. District Judge Brian C. Wimes to 10 years in federal prison without parole.
Strubberg was convicted at trial on Sept. 21, 2016, of one count of attempting to entice or coerce a minor to engage in illicit sexual activity.
A detective with the Boone County, Mo., Sheriff’s Department posted an undercover online advertisement on Jan. 6, 2016, as part of an investigation to seek out potential sexual predators. Strubberg responded with several e-mails the same day. The decoy provided Strubberg with a phone number and told him she was looking for someone to help with her 14-year-old daughter’s respect issues.
Strubberg told the decoy he was a dominant person and agreed to help the decoy with her 14-year-old daughter as long as the decoy would sign a contract giving him permission to do so. Strubberg was sent two images of the decoy’s daughter, who he believed to be 14 years of age. Over the course of the next two days, Strubberg described his plans for sexual conduct, including deviate sexual intercourse with the decoy’s daughter.
Strubberg sent a contract to the decoy by text message and asked her to print and sign the contract granting him permission to engage in sexual conduct with the decoy’s daughter.
After further e-mail correspondence, Strubberg asked the decoy and her daughter to meet in person so that he could spend the day with them engaging in sexual conduct. On Jan. 8, 2016, Strubberg arrived at the meeting place and was arrested.
This case was prosecuted by Assistant U.S. Attorney Lawrence Miller. It was investigated by the Boone County, Mo., Sheriff’s Department and its cyber crimes task force, the FBI and the University of Missouri Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Naples Man Sentenced in Connection with “PIP” Scheme to Defraud Automobile Insurance CompaniesRead the Press Release
Fort Myers, FL – U.S. District Judge Sheri Polster Chappell has sentenced Wisler Cyrius (36, Naples) to three years in federal prison for conspiracy to commit mail fraud and money laundering. The Court also ordered him to pay $270,329.92 in restitution to the victim automobile insurance companies, and to forfeit property in the amount of the proceeds traceable to the offense. Cyrius pleaded guilty on May 18, 2016.
According to the plea agreement, Cyrius conspired with others to operate unlicensed chiropractic clinics and to bill automobile insurance companies for Personal Injury Protection (PIP) benefits. The conspirators also paid patients to induce them to seek treatment at particular chiropractic clinics so they could bill automobile insurance companies for their PIP benefits. In addition, members of the conspiracy participated in staged motor vehicle accidents and submitted claims to automobile insurance companies for PIP benefits based on those fake accidents.
Four others previously pleaded guilty and have been sentenced for their roles in this conspiracy. Garry Joseph (37, Naples) pleaded guilty to conspiracy to commit mail fraud and was sentenced to 3 years and 1 month in federal prison. Anouce Toussaint (33, Naples) was sentenced to 18 months’ imprisonment for conspiracy to commit mail fraud and conspiracy to launder money. Maria Victoria Lopez (44, Moore Haven) pleaded guilty to conspiracy to commit mail fraud and was sentenced to 3 years’ probation. David Adamson (47, Bonita Springs), a licensed chiropractor, pleaded guilty to mail fraud and received 5 years’ probation with 180 days of home detention.
A fifth individual, Nesly Loute, was convicted of conspiracy to commit mail fraud following a six-day jury trial. On February 27, 2017, he was sentenced to 14 years in federal prison.
This case was investigated by the Federal Bureau of Investigation; the State of Florida’s Department of Financial Services Division of Insurance Fraud; the Internal Revenue Service - Criminal Investigation; and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Assistance was also provided by the National Insurance Crime Bureau; the Florida Highway Patrol; the Florida Department of Health; Florida’s Agency for Health Care Administration; the State Attorney’s Offices for the 13th and 19th Judicial Circuits. The following insurance companies also assisted with the case: Travelers, Nationwide, Bristol West, Esurance, Windhaven, Farmers, Direct General, Allstate, State Farm, Progressive, Geico, Infinity, and Foremost. The cases were prosecuted by Assistant United States Attorneys Charles D. Schmitz and David G. Lazarus.
Multiple defendants plead guilty to federal methamphetamine crimesRead the Press Release
CHARLESTON, W.Va. – A man and a woman from Paramount, California, and a woman from South Charleston pleaded guilty today to federal drug crimes for their roles in a large-scale drug trafficking organization, announced United States Attorney Carol Casto. Gregory Crum, 42, and Diana Salazar Gamboa, 43, both entered guilty pleas conspiracy to distribute methamphetamine. Beth Hammonds, 52, entered her guilty plea to using the mail to facilitate a drug crime.
As part of a comprehensive investigation, agents from the United States Postal Inspection Service, the Metropolitan Drug Enforcement Network Team, and Homeland Security Investigations intercepted several packages that contained crystal methamphetamine, commonly referred to as “ice.” Since January 2014, several pounds of crystal methamphetamine were transported from California and Nevada into the Southern District of West Virginia via the United States mail or through individuals driving packages of drugs into the area. Crum and Gamboa admitted that they arranged for methamphetamine to be sent into the Southern District and accepted payment for the drugs. Hammonds admitted that she received methamphetamine and further distributed it to individuals around South Charleston. Hammonds also admitted that she mailed proceeds from the drug distributions to Joseph Cooper, another individual involved in the conspiracy.
Crum faces a minimum of 10 years and up to life in federal prison. Gamboa faces at least five and up to 40 years in federal prison. Hammonds faces up to five years in federal prison for her role in the conspiracy. All three are scheduled to be sentenced on August 3, 2017.
As a result of this comprehensive drug investigation, several defendants have been sentenced to federal prison. Cooper was sentenced to 14 years in federal prison for possession with intent to distribute methamphetamine. Benjamin Childers, another individual involved with the transport of methamphetamine in this drug trafficking organization, was sentenced to 10 years and a month in prison for conspiracy to distribute methamphetamine. Mark Cobb was sentenced to seven years in prison for conspiracy to distribute methamphetamine. Shayne Shamblen was also sentenced to seven years in prison for conspiracy to distribute methamphetamine. Mark Bays was sentenced to five years in prison for maintaining a residence for the purpose of distributing methamphetamine.
Several other individuals involved in the drug trafficking organization have entered guilty pleas and are awaiting sentencing. Morgan Light and Harold Lee Parsons previously pleaded guilty to conspiracy to distribute methamphetamine and each faces up to 20 years in federal prison. Light is scheduled to be sentenced on June 8, 2017, and Parsons is scheduled to be sentenced on June 7, 2017. David Huffman pleaded guilty to conspiracy to distribute methamphetamine and faces at least five and up to 40 years in prison when he is sentenced on June 21, 2017. Jon Bowman previously pleaded guilty to using the mail to facilitate a drug crime and faces up to five years in prison when he is sentenced on June 1, 2017.
Assistant United States Attorney Haley Bunn is responsible for these prosecutions. United States District Judge John T. Copenhaver, Jr., is presiding over these cases.
These prosecutions are part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Mississippi sheriff’s office employee sentenced for using stolen identities to file fraudulent tax returnsRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Mississippi woman was sentenced Monday to 94 months in prison for being part of a scheme to file fraudulent income tax returns using stolen identities and causing the refunds to be mailed to post office boxes in Louisiana.
Shannon A. Brumfield, 50, of Byram, Miss., was sentenced to more than 7.5 years in prison by U.S. District Judge S. Maurice Hicks Jr. on two counts of mail fraud and two counts of aggravated identity theft. She was also sentenced to three years of supervised release and ordered to pay $386,141 restitution. According to the January 11, 2017 guilty plea, Brumfield used her position as a lieutenant at Hinds County Detention Center to access the Hinds County Jail Management System and steal names and Social Security numbers of inmates and other individuals. Brumfield and other members of the conspiracy not named in the indictment used the stolen identities to file fictitious IRS tax returns from May 2011 until December 2012. Based on the fraudulent returns, the IRS issued tax refunds and mailed them to U.S. Post Office boxes in Tallulah, La.
“Ms. Brumfield shamelessly abused her position as a law enforcement officer by stealing the identities of individuals listed in a sheriff’s office computer system,” Van Hook stated. “Despite her vow to serve and protect, she used her position to line her own pockets. The 94-month sentence imposed and the recovery of the ill-gotten gains should send a strong message that this sort of crime does not pay.”
“This sentencing is a stern reminder that participation in refund fraud schemes does not pay and those who do so will be held accountable,” Special Agent in Charge of Internal Revenue Service Criminal Investigation, Jerome R. McDuffie stated. “Ms. Brumfield participated in a scheme in which stolen identities were used to file over 300 false tax returns. Refunds totaling over $1 million were requested by the scheme participants for personal gain. Identity theft is an ongoing problem and IRS-CI will continue to vigorously investigate and prosecute those engaged in these illegal activities. Our agency will continue to work with the United States Attorney’s Office and other federal agencies to aggressively protect innocent taxpayers and preserve the integrity of our tax system. ”
The IRS – Criminal Investigation Division conducted the investigation. Supervisory Assistant U.S. Attorney Cytheria D. Jernigan prosecuted the case.
Michigan man indicted on heroin and cocaine trafficking chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Detroit, Michigan man was indicted by a grand jury today on drug trafficking charges, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Wali “Black” Murphy, age 24, was indicted on four counts of “Distribution of Heroin,” one count of “Possession with the Intent to Distribute Cocaine Base,” and one count of “Possession with Intent to Distribute Heroin.”
The crimes are alleged to have occurred between September and December 2016 in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Mon Metro Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Mexican Subject to Deportation Following Conviction of Illegal Reentry After RemovalRead the Press Release
PITTSBURGH A citizen of Mexico who was found by the U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) pled guilty and has been sentenced in federal court to time served subject to deportation on his conviction of Illegal Reentry After Deportation, Acting United States Attorney Soo C. Song announced today.
United States District Judge Cathy Bissoon imposed the sentence on Jose Antonio Medina Melendez, 29, a citizen of Mexico.
According to information presented to the court, Melendez, an alien, who was removed from the United States by ERO on May 20, 2014, was taken into custody on March 12, 2017, by ERO.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
Acting United States Attorney Song commended ERO for the investigation leading to the successful prosecution of Melendez.
Mexican Man Sentenced to Three Years in Prison for Identity TheftRead the Press Release
A man from Mexico illegally residing in the United States who stole the identity of a United States citizen was sentenced May 1, 2017, to three years in federal prison.
Francisco Hernandez-Espinoza, age 24, residing in Hampton, Iowa, received the prison term after a December 29, 2016, guilty plea to one count of misuse of a social security number and one count of aggravated identity theft.
During the plea hearing, Hernandez-Espinoza admitted that, on June 4, 2012, he illegally used the name and Social Security account number of a United States citizen to obtain employment in Clarion, Iowa. On November 3, 2016, Hernandez-Espinoza was arrested by immigration agents in Hampton, Iowa. At that time, Hernandez-Espinoza turned over to agents identification documents, including a birth certificate, all in the name of the U.S. citizen whose identity he knowingly used. During the sentencing hearing, Hernandez-Espinoza admitted that, between 2011 and 2015, he was convicted eight times in Iowa and Minnesota of using the name of the U.S. citizen, including after being arrested for criminal sexual conduct and domestic abuse assault.
Hernandez-Espinoza was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Hernandez-Espinoza was sentenced to 36 months’ imprisonment and fined $5,000. A special assessment of $200 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Hernandez-Espinoza 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 Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 16-CR-2044-LRR.
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Mass. Women Pleads Guilty to Trafficking Heroin to RIRead the Press Release
PROVIDENCE – Olga Lidia Sandoval, 39, of Attleboro, MA., pleaded guilty in federal court in Providence on Monday to conspiracy to possess with the intent to distribute one kilogram or more of heroin and possession with the intent to distribute one kilogram or more of heroin, announced Acting United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England.
According to information presented to the court, in May 2016, Sandoval arranged for the transportation of nearly 6 ½ kilograms of heroin to be brought from Guatemala through Mexico to Rhode Island. Rhode Island State Police seized the heroin as the result of a traffic stop. The heroin was discovered hidden in the front differential and axle of a truck allegedly being towed by Ivan K. Alvarado, 38, of Spring Valley, NY.
According to information presented to the court, in November 2015, Rhode Island State Police and the High Intensity Drug Trafficking Area Task Force began investigating the drug trafficking activities of a co-conspirator in this matter, Jose Luis Amparo Nova, 33, of North Providence, RI. In January 2016, HSI began investigating Olga Sandoval’s drug trafficking activities, which included arranging the importation and distribution of heroin in Rhode Island and Massachusetts. The investigations, independent of one another, included electronic surveillance which captured conversations between Sandoval and Nova. Frequent conversations captured by HSI between Sandoval and others included discussion of efforts to send substantial sums of narcotics-derived proceeds to her Guatemalan sources of supply.
Beginning on May 13, 2016, law enforcement monitored discussions of a shipment of narcotics coming from Mexico to Rhode Island and Massachusetts. Conversations over the next several days included identifying a location to deliver the drugs that would avoid law enforcement detection, as well as payment for the drugs. On May 19, law enforcement monitored conversations that indicated that the truck transporting the drugs to New England had been damaged in a rollover accident.
On May 22, 2016, Rhode Island State Police stopped the driver of a U-Haul truck towing a truck that had suffered significant body damage. The trooper affected a traffic stop after witnessing the vehicle weaving in and out of marked lanes. The vehicles were towed to Rhode Island State Police headquarters where a court authorized search of the vehicles result in the discovery of 6.487 kilograms of heroin stashed in the truck being towed. As the traffic stop was occurring, law enforcement intercepted a call placed by Olga Sandoval indicating that she received a call informing her that Alvarado had been stopped by law enforcement.
Ivan Alvarado was arrested on May 22, 2016, and Olga Sandoval and Jose Nova were arrested on May 24, 2016, on federal criminal complaints charging them with conspiracy to possess with the intent to distribute one kilogram or more of heroin. U.S. District Court Magistrate Judge Patricia A. Sullivan ordered the defendants detained in federal custody.
Sandoval and Nova were indicted by a federal grand jury on June 16, 2016, on charges of conspiracy to possess with the intent to distribute one kilogram or more of heroin and possession with the intent to distribute one kilogram or more of heroin. Both pleaded guilty as charged in the indictment. Nova pleaded guilty on January 26, 2017, before U.S. District Court Chief Judge William E. Smith. He is scheduled to be sentenced on July 14, 2017. A sentencing date for Sandoval has not yet been scheduled by the court.
The cases are being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
Acting United States Attorney Stephen G. Dambruch acknowledges and thanks the Rhode Island Department of the Attorney General and the DEA for their assistance in this matter.
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Jim Martin (401) 709-5357
email: [email protected]
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Maryland Man Charged with Impersonating FBI AgentRead the Press Release
WILMINGTON, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware, announced today that a federal grand jury in Wilmington charged Eric Kappesser, age 27, of Stevensville, Maryland, with two counts of impersonating a federal agent and one count of the unauthorized possession of a badge or insignia of a federal agency. The defendant faces up to 3 years in prison on each of the impersonation charges and up to 6 months in prison on the unauthorized possession charge.
The Indictment alleges that, between April and October 2016, the defendant represented himself to others as an agent with the Federal Bureau of Investigation. In addition, defendant Kappesser specifically requested and obtained a law enforcement discount when purchasing certain firearms accessories in September 2016. In or around October 2016, defendant also wore a replica of an FBI badge around his neck.
Acting U.S. Attorney Weiss noted, “Individuals who impersonate law enforcement officers violate the public trust and pose a risk to public safety. Such conduct disrespects the law enforcement officers who place themselves at risk every day to keep our communities safe. ”
This case is the result of an investigation conducted by the Federal Bureau of Investigation and Bureau of Alcohol Tobacco and Firearms. The prosecution is being handled by Assistant United States Attorney Lesley Wolf.
The charges in the Indictment are only allegations. The defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Marion Pair Pleads Guilty to Methamphetamine ChargesRead the Press Release
Roanoke, VIRGINIA – A pair of Marion residents pled guilty this week in the United States District Court for the Western District of Virginia in Roanoke to federal conspiracy charges, Acting United States Attorney Rick A. Mountcastle announced.
Charles J. Wojciechowicz, 33, of Marion, pled guilty yesterday to one count of conspiracy to distribute a measurable quantity of a mixture containing methamphetamine. In a separate hearing today in U.S. District Court in Roanoke, Danny Douglas Meadows, 41, of Marion, also pled guilty to one count of conspiracy to distribute a measurable quantity of a mixture of methamphetamine. At sentencing, the defendants face up to 20 years in federal prison.
The investigation of the case was conducted by the Drug Enforcement Administration, the Virginia State Police, the Smyth County Sheriff’s Office and the Claytor Lake Drug Task Force. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Man Charged with Passport FraudRead the Press Release
Defendant Leuk Kwan Chau, 21, of East Hampton, NY, was charged yesterday by Indictment with mail fraud, passport fraud, and aiding and abetting announced Acting United States Attorney Louis D. Lappen.
According to the Indictment, beginning in or about November 2016, the defendant engaged in a scheme to defraud the Educational Testing Service (ETS) by having an imposter take a standardized entrance exam, the Test of English as a Foreign Language (TOEFL), on his behalf. As part of the scheme, a counterfeit Chinese passport made and sent to the United States was intended to be used by the imposter to defraud ETS administrators into believing that the defendant had actually taken the standardized test. The defendant then received the benefit of the imposter’s test score for use at American colleges and universities.
If convicted, the defendant faces a maximum possible sentence of 30 years’ imprisonment, three years’ supervised release, a $500,000 fine, and a $200 special assessment.
The case was investigated by the U.S. Department of State, and the Department of Homeland Security, Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Terri A. Marinari. ETS cooperated fully in the investigation.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Limestone Couple Sentenced for Federal Tax EvasionRead the Press Release
GREENEVILLE, Tenn. –On May 1, 2017, David Lee Byrd, 58, and his wife, Paula Ruth Hall Byrd, 58, both of Limestone, Tennessee, were sentenced by the Honorable J. Ronnie Greer, U.S. District Judge. David Byrd was ordered to serve 10 months in federal prison followed by three years of supervised release. Paula Byrd was ordered to serve four years on probation. Both were ordered to pay restitution of $134,359 to the Internal Revenue Service (IRS), fines of $5,000 each, and $100 special assessments.
Both David and Paula Byrd pleaded guilty in December 2016 to an information charging them with income tax evasion for the year 2008. Information on file with the U.S. District Court shows that David and Paula Byrd were self-employed computer software consultants who worked in the airline industry, creating and updating computer programs. During 2006 through 2008, they lived in Frankfurt, Germany, and contracted with Practical Business Services LTD, a British entity, to provide services to Lufthansa Airlines. Paula Byrd directed Practical Business Services to send her compensation, totaling $428,185, to bank accounts in Switzerland titled in the name of David Byrd. David Byrd directed Practical Business Services to send his compensation, totaling $508,313, to an American bank account titled in the name of David Byrd. They completely omitted Paula Byrd’s income and failed to disclose David Byrd’s ownership of foreign bank accounts on their 2006, 2007, and 2008 federal income tax returns. The Byrds’ evasion was revealed as a result of treaties negotiated by the United States with Switzerland, which had previously declined to provide information to American law enforcement authorities.
U.S. Attorney Nancy Stallard Harr and IRS Special Agent in Charge Tracey D. Montano noted the importance of the treaties with Switzerland and other countries regarding the use of foreign bank accounts to thwart federal income tax collection and pledged to use all lawful means to identify and prosecute those who evade taxes by concealing income in offshore bank accounts.
This investigation was conducted by IRS – Criminal Investigation. Assistant U.S. Attorney Helen Smith represented the United States.
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Lee's Summit Woman Sentenced for $1.5 Million Embezzlement Schemes, Identity TheftRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Lee’s Summit, Mo., woman was sentenced in federal court today for a series of embezzlement schemes totaling more than $1.5 million.
Patricia Webb, 44, of Lee’s Summit, was sentenced by U.S. District Judge Roseann Ketchmark to eight years in federal prison without parole. The court also ordered Webb to pay $1,564,745 in restitution to her victims.
On Nov. 22, 2016, Webb pleaded guilty to three counts of wire fraud and one count of aggravated identity theft. Webb has been in federal custody since her bond was revoked by the court for unrelated fraudulent conduct. While on pretrial release in this case, the government received information that Webb had submitted fraudulent documents to potential employers. She informed an employment agency that she was not the person in the news related to this case, and that someone had stolen her identity. Webb also submitted an altered version of the criminal complaint filed in this case to the employment agency. Based upon this information, the court revoked her bond and she was remanded to custody.
Webb admitted that she embezzled at least $1,526,594 in total from Garmin International, Black and Veatch and TriStar Benefit Administrators over the course of four years, 2012 through 2016. Webb registered a business in the name of “Beauty Within Me” and opened a bank account in the name of the business. She then utilized this bank account to divert money stolen from her victims.
Garmin Embezzlement Scheme
Webb admitted that she embezzled $1,255,175 million from Garmin while employed as a senior payroll specialist.
Webb caused Garmin to send 16 unauthorized Automated Clearing House payments (fund transfers, such as direct deposits and business-to-business payments) to her Beauty Within Me bank account from Feb. 24, 2012, to May 30, 2014. The payments were sent on behalf of then-current employees who were utilizing Garmin’s relocation program. Webb caused Garmin funds to be recorded to the in-transit employee’s W-2, under the code “P,” which was inflated to mask Webb’s embezzlement. After the clearing of the ACH payments, Webb would alter Garmin’s general ledger to reflect the fraudulent payments as “Relocation Expenses.”
Black and Veatch Embezzlement Scheme
Webb admitted that she embezzled $302,183 from Black and Veatch while employed as a global payroll manager. Webb was employed by Black and Veatch from January 2015 until March 4, 2016 and earned $90,000 per year. Webb facilitated unauthorized wire transfers and ACH transactions from the company’s payroll account to her Beauty Within Me business bank account.
An analysis of Webb’s bank account shows a large amount of spending at casinos and cash withdrawals at casinos.
TriStar Embezzlement Scheme
Webb admitted that she stole the identity of another employee while she was working at Garmin in order to embezzle $7,385 from TriStar Benefit Administrators, the company which managed Garmin’s healthcare savings accounts.
Webb used the personal identifiable information of another Garmin employee to create a flexible spending account without his knowledge or consent. Webb submitted a request for reimbursement to TriStar in the name of this employee on July 18, 2011. The request was for hospital treatment in the amount of $7,385 and the payment from TriStar was sent to Webb’s bank account.
This case was prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI.
Laredoans Get Massive Sentences for Conspiracy to Kidnap Illegal AliensRead the Press Release
LAREDO, Texas – Three men have been ordered to prison following their convictions of conspiracy to kidnap illegal aliens, announced Acting U.S. Attorney Abe Martinez. Angel Alexis Diaz, 20, Jose Israel Diaz, 42, and Julio Osorio, 42, all of Laredo, pleaded guilty Sept. 8, 2016.
Today, U.S. District Judge Marina Garcia Marmolejo ordered Jose Diaz to serve a total of 360 months in federal prison, while Alexis Diaz and Osorio received respective sentences of 262 months and 292 months. The sentences will be immediately followed by five years of supervised release.
Eight Mexican Nationals had arranged to be smuggled into the U.S. They claimed that after entering the country, they were transported to a residence in Laredo where they stayed for approximately two weeks. They were then transported to a second location where the three defendants then held them against their will, assaulted and extorted them for additional smuggling fees. They were also forced to undress and were beaten, held hostage and forced to contact family members to pay a ransom.
All three defendants have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation along with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Christopher dos Santos is prosecuting the case.
Kincheloe Man Sentenced for Second Habitual Domestic Violence OffenseRead the Press Release
MARQUETTE, MICHIGAN — Nicholas James Sayles, 34, of Kincheloe, Michigan was sentenced to 30 months in federal prison for domestic violence by an habitual offender, Acting U.S. Attorney Andrew Birge announced today. In addition to the prison term, U.S. District Judge Paul L. Maloney ordered Sayles to serve two years of supervised release following his prison term, and to pay a $100 special assessment.
On November 30, 2016, Sayles pleaded guilty to a federal indictment charging him with domestic violence by an habitual offender. Sayles lived with the victim at a residence located on Sault Ste. Marie Tribal land. On March 7, 2016, Sayles assaulted the victim, striking her face with his head, breaking one of her teeth. Sayles was previously convicted of domestic violence by an habitual offender in federal court in 2011, and has two prior state convictions for domestic violence offenses.
The Sault Ste. Marie Tribal Police, Kinross Police, and the Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Paul D. Lochner prosecuted the case.
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KC Man Indicted for Meth, Firearm Following Collisions with Three VehiclesRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was indicted by a federal grand jury today for illegally possessing a firearm and methamphetamine, which were found after he caused a series of collisions with other vehicles.
Michael Allrutz, 40, of Kansas City, was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a criminal complaint that was filed against Allrutz on April 13, 2017, and includes an additional charge.
The federal indictment charges Allrutz with one count of possessing methamphetamine with the intent to distribute, one count of possessing a firearm in furtherance of a drug-trafficking crime and one count of being a felon in possession of a firearm.
According to an affidavit filed in support of the original criminal complaint, Allrutz was involved in a series of traffic accidents on April 12, 2017. Allrutz, the driver and sole occupant of a black Jaguar, was northbound on Benton Boulevard when he crossed into the on-coming lane of traffic and struck the back driver’s side of a white 2016 Ford pick-up truck. Allrutz continued northbound on Benton Boulevard, according to witnesses, and became involved in a second vehicular accident with a white 2015 Ford Transit van at the entrance to I-70 westbound. Allrutz allegedly left the scene of the second vehicular accident as well and turned westbound on the on-ramp to I-70 westbound. Allrutz left the road, crossed over all three westbound lanes of traffic on I-70, and became involved in a third vehicular accident with a white 2015 Dodge Ram pick-up. After coming to a stop, witnesses told police officers, Allrutz climbed from the Jaguar carrying a gallon-sized plastic bag in his hand but was unable to leave the scene due to his injuries.
Allrutz was transported to an area hospital for treatment. The vehicle sustained heavy front-end damage.
The plastic bag Allrutz had been carrying contained approximately 709 grams of methamphetamine, according to the affidavit. Police officers also found a loaded Beretta 9mm semi-automatic pistol beneath the gas pedal of the vehicle. Officers found $4,739 in a black sweatshirt on the passenger side floorboard.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Allrutz has a prior felony conviction for possession of a controlled substance.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorney Justin G. Davids. It was investigated by the Kansas City, Mo., Police Department.
Jasper County Man Sentenced for Drug Trafficking ViolationsRead the Press Release
BEAUMONT, Texas - A 34-year-old Kirbyville, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Stefone Dwayne Palomo pleaded guilty on Oct. 17, 2016, to conspiracy to distribute and possess methamphetamine and was sentenced to 180 months in federal prison today by U.S. District Judge Marcia A. Crone. The leader of the conspiracy, McGee Lamar Falcon, previously pleaded guilty and was sentenced to 204 months in federal prison by Judge Crone on March 31, 2017. Palomo is the last remaining defendant in the case to be sentenced.
According to information presented in court, beginning in 2009, Falcon and his co-conspirators operated a drug trafficking organization which acquired large multi-kilogram quantities of methamphetamine and crack cocaine from suppliers in Mexico for distribution to customers in the United States, including the Eastern District of Texas and Western District of Louisiana. Palomo and nine others were indicted by a federal grand jury on Sep. 2, 2015.
Law enforcement agencies became aware of the organization’s activities in September 2013. From that time forward, the investigation led to controlled purchases from members of the organization and the seizure of money, drugs, and firearms. Falcon and his distributors typically arranged customer meetings in rural locations around Kirbyville and Bon Weir, Texas.
This case is the result of an extensive joint investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This case was investigated by the Drug Enforcement Administration, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms, and Explosives, U.S. Marshals Service, Beaumont Police Department, Jefferson County Sheriff’s Office, Jasper County Sheriff’s Office, Jasper Police Department, and Newton County Sheriff’s Office and prosecuted by Assistant U.S. Attorneys John B. Ross, Michelle Englade and John Craft.
Independence Man Pleads Guilty to Conspiracy to Lure Robbery Victims with Online Ads for EscortsRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man pleaded guilty in federal court today for his role in a conspiracy to use online escort ads to lure robbery victims.
Sage E. Harrison, 35, of Independence, pleaded guilty before U.S. Chief District Judge Greg Kays to the robbery conspiracy and to two counts of aiding and abetting robbery.
By pleading guilty today, Harrison admitted that he participated in the conspiracy to commit robbery from April 1, 2015, to June 7, 2016. Conspirators used several websites (including craigslist.org, backpage.com and skout.com) to make connections with their victims and arrange meetings at local hotels, residences and apartments. When customers arrived for the meetings, conspirators would be lying in wait, armed with firearms and weapons that appeared to be firearms, and rob the customers.
Harrison also admitted that he aided and abetted in the commission of two specific robberies in Independence, Mo., on Oct. 24, 2015.
Conspirators contacted a victim through an ad on craigslist and arranged to meet at a location in Independence. Harrison and another co-conspirator were waiting and, when the victim arrived, pointed what appeared to be firearms and robbed him of his wallet and cell phone. Harrison forced the victim to his vehicle and searched it for further items and stole cash.
Conspirators contacted a second victim through another craigslist ad and arranged to meet at an apartment in Independence the same day. Harrison and another co-conspirator were waiting and robbed the victim when he arrived, taking his wallet and cash.
Harrison, who had an outstanding warrant, was arrested by Independence police officers the next day and found to be in possession of the second victim’s wallet and cell phone. Agents recovered a laptop computer from the location of the robbery and discovered that Harrison’s Facebook account had been accessed from the laptop, along with the craigslist website, on the date of the robberies. Investigators found a photo of Harrison posing with what appears to be a firearm, wearing a black ball cap described by one of the robbery victims.
Records obtained from Facebook revealed multiple communications between conspirators about the robberies, including conversations about the two robberies to which Harrison pleaded guilty. An example message from Harrison’s account stated, “remember I told you about my escort friend and dropping they pockets.” The term “dropping pockets” was used by several conspirators and is known to be a reference to conducting a robbery.
On Oct. 25, 2015, just prior to his arrest, another co-conspirator messaged Harrison and said, “Hey where u at”. Harrison replied, “At my safe spot.”
Records obtained from Google revealed dozens of e-mail confirmation notices from Kansas City area hotels, along with numerous e-mail notifications from craigslist.org and backpage.com of men responding to ads.
Records obtained from Backpage, related to phone numbers and e-mail addresses used in the robberies, revealed eight related accounts. Each account was associated with a specific e-mail address that served as the account username. According to Backpage.com records, posts were placed in the sections “Body Rubs,” “Escorts,” and “Domination & Fetish” sections, using several different names. The records identified 31 different phone numbers which were posted in the associated ads, and that 126 separate posts were made.
Records obtained from Craigslist related to phone numbers and email addresses used in the robberies revealed 11 related accounts. Those 11 accounts had been used to post 89 ads between Sept. 28, 2015 and Jan. 7, 2016. According to Craigslist records, posts were predominantly placed in the “Casual Encounters” section using approximately 27 different names.
Under federal statutes, Harrison is subject to a sentence of up to 20 years in federal prison without parole on each count. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Matthew P. Wolesky. It was investigated by the FBI, and the Independence, Mo., Police Department, with assistance from the Kansas City, Mo., Police Department, the North Kansas City, Mo., Police Department and the Blue Springs, Mo., Police Department.
Illinois Woman Sentenced to Prison for Filing Tax Returns Using Stolen IDsRead the Press Release
A former resident of Poplar Grove, Illinois was sentenced today to 87 months in prison for filing tax returns using stolen identities, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, from 2012 through 2014, Shameka Carr, 30, used stolen IDs to file tax returns seeking fraudulent tax refunds with the Internal Revenue Service (IRS). Carr directed the IRS to send the refunds in the form of prepaid debit cards and refund checks mailed to addresses that she controlled in Rockford, Illinios and its surrounding areas. Carr admitted to an intended tax loss of $1,026,284.
In addition to the term of prison imposed, Carr was also ordered to serve three years of supervised release and to pay $365,764 in restitution to the IRS. Carr pleaded guilty on January 24 to mail fraud and aggravated identity theft.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS–Criminal Investigation and the U.S. Postal Inspection Service, and the Boone County Sheriff’s Department, who conducted the investigation, and Trial Attorneys Michael C. Boteler and John T. Mulcahy of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Hickory Pathology Lab Agrees to Pay the United States $601,000 to Settle False Claims Act AllegationRead the Press Release
CHARLOTTE, N.C. - U.S. Attorney Jill Westmoreland Rose announced today that Piedmont Pathology in Hickory, N.C., has agreed to pay the United States $601,000 to settle allegations that it violated the False Claims Act by submitting false claims to Medicare and Medicaid for medically unnecessary procedures.
U.S. Attorney Rose is joined in making today’s announcement by Derrick L. Jackson, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General for the region including North Carolina.
“Government healthcare programs serve a vital role in providing necessary services to the citizens of our district,” said U.S. Attorney Rose. “This office is dedicated to ensuring that money is spent wisely on medically necessary services that benefit healthcare consumers as opposed to profiting the bottom line of healthcare providers.”
“Patients should be able to trust that their health care providers only provide medically necessary services,” said Special Agent in Charge Jackson. “Working in close coordination with the U.S. Attorney’s Office, we will continue to pursue health care companies that threaten the integrity of federal health care programs.”
The allegations arose from a lawsuit filed by a whistleblower, Dr. Kim Geisinger (the Relator), under the qui tam provisions of the False Claims Act. Relator Dr. Geisinger is a pathologist who formerly worked for Piedmont Pathology. Under the False Claims Act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The case is investigated by the United States, which can choose to take over the case or allow the Relator to pursue the case. Relator Dr. Geisinger will receive approximately $120,200 from the recovery announced today.
According to court documents, pathology practices apply stains to specimens to allow pathologists to identify abnormalities in the tissue. These stains include a routine hemotoxylin and eosin (H&E) stain and other special stains for various purposes. Among other things, the complaint alleges that a pathologist should review the specimen with the routine H&E stain before any special stain is used on the specimen. Special stains are billed separately to government healthcare programs. The government considers the use of special stains before the analysis of the routine H&E stained specimen to be medically unnecessary. In November 2016, the United States intervened in the case, pursuing claims that Piedmont Pathology lacked medical necessity for the special stains conducted on certain gastric biopsies before a pathologist reviewed the routine H&E stained specimen.
In making today’s announcement U.S. Attorney Rose thanked HHS-OIG for their coordination with the U.S. Attorney’s Office in investigating this case. The settlement was negotiated by Assistant U.S. Attorney Jonathan Ferry, of the U.S. Attorney’s Office in Charlotte.
The case is captioned United States of America ex rel. Geisinger v. Piedmont Pathology Associates, Inc. and Piedmont Pathology, Professional Corporation, Case No. 5:14-CV-121. The claims settled by the lawsuit are allegations only and there has been no determination of liability.
Harvey Man Sentenced for Conspiracy to Commit Financial Aid FraudRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that BOBBY R. LOWE, age 66, of Harvey, was sentenced today after previously pleading guilty to one count of conspiracy to commit mail fraud.
U.S. District Judge Jay C. Zainey sentenced LOWE to one-year probation and a $100 special assessment.
According to court documents, LOWE owned and operated a printing company in Harvey. In early 2013, LOWE conspired with student applicants to produce fraudulent high school transcripts and diplomas, as well as fraudulent GED certificates and transcripts, which were sent to the Office of Admissions at Delgado Community College in New Orleans. LOWE also provided his co-conspirators with envelopes with return addresses for the Department of Education and the Louisiana Community & Technical College System in Baton Rouge. LOWE instructed his co-conspirators to mail the documents from Baton Rouge, so the documents would look more legitimate. The purpose of the scheme was to obtain federal financial aid from the United States Department of Education and Delgado Community College.
Acting U.S. Attorney Evans praised the work of the United States Department of Education-Office of Inspector General and the United States Secret Service in investigating this matter. Assistant U.S. Attorney Julia K. Evans was in charge of the prosecution.
Hartford Crack Dealer Sentenced to 21 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that CHRISTOPHER ROSA, 33, of Hartford, was sentenced yesterday by U.S. District Judge Victor A. Bolden in Bridgeport to 21 months of imprisonment, followed by one year of supervised release, for using a telephone to facilitate the distribution of crack cocaine.
According to court documents and statements made in court, in September 2014, the FBI’s Northern Connecticut Violent Crimes Task Force and Hartford Police Department initiated an investigation into narcotics distribution, firearms trafficking and acts of violence carried out by members and associates Los Solidos in Hartford’s South End. The investigation, which included the use of court-authorized wiretaps and controlled purchases of heroin, crack cocaine and firearms, resulted in federal charges against approximately 30 individuals.
During the investigation, ROSA contacted his crack cocaine supplier, Eduardo Zayas, more than 100 times to obtain crack for subsequent redistribution.
On May 15, 2015, Hartford Police arrested Zayas after he traveled to a parking lot to meet his own drug supplier who was in possession of approximately 320 grams of crack. A subsequent search of an apartment on New Britain Avenue in Hartford that was connected to Zayas revealed a .25 caliber handgun, a magazine with four live .25 caliber rounds, approximately 52 grams of crack, items used to process and package narcotics, and $4,120 in cash.
On February 3, 2016, ROSA pleaded guilty to one count of use of a telephone in the commission of a drug trafficking felony.
ROSA’s criminal history includes multiple felony drug convictions and a firearms conviction.
Zayas pleaded guilty and, on January 27, 2017, was sentenced to 65 months of imprisonment.
The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division, Major Crimes Unit, Shooting Task Force and South Conditions Unit have provided valuable assistance to the investigation, and the U.S. Marshals Service and Capitol Region Emergency Response Team (CREST) assisted with the arrests.
This case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution stems from Project Longevity, a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence. A critical component of the Project Longevity strategy is the “call-in,” a face-to-face meeting where Project Longevity partners engage group members and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
Members of Los Solidos attended call-ins that were held in April 2014 and August 2014.
Harrison County man indicted on firearm chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Clarksburg, West Virginia, man was indicted by a grand jury today on charge of unlawful possession of a firearm, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Matthew E. Boone, age 32, was indicted on one count of “Unlawful Possession of a Firearm.”
Boone, having previously been convicted of heroin distribution in United States District Court, and five felonies in Harrison County Circuit Court, is accused of having a 9mm pistol in his possession. The crime is alleged to have occurred in January 2017 in Harrison County.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clarksburg Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Grant County Man indicted on meth trafficking and firearm chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Petersburg, West Virginia, man was indicted by a grand jury today on charges of methamphetamine distribution and illegal possession of a firearm, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Joseph Nathaniel Hartman, age 33, was indicted on one count of “Distribution of Methamphetamine,” one count of “Distribution of Methamphetamine in Proximity of a Protected Location,” and two counts of “Unlawful Possession of a Firearm.”
The crimes are alleged to have occurred in August and September of 2015 and June of 2016 in Grant County.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, The West Virginia State Police Bureau of Criminal Investigation, and the Grant County Sheriff’s Office investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Godfrey Man Sentenced to Federal Prison for Child Pornography OffenseRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that Jeremy Foster, 32, of Godfrey, Illinois, was sentenced today by United States District Court Judge Staci M. Yandle to 60 months imprisonment for one count of receipt of child pornography. Judge Yandle also sentenced Foster to five years of supervised release to follow the imprisonment, a fine of $3,000 and a $100 special assessment.
According to court documents, on October 9, 2014, the Federal Police of Switzerland seized a server in Zurich, Switzerland that was running a child pornography website. Swiss authorities identified over 800 Internet Protocol (IP) addresses in the United States that had downloaded child pornography from this server. One of these IP addresses was registered to Foster’s Godfrey address. Agents from the St. Louis division of Homeland Security conducted the local investigation. Foster’s laptop was seized and a forensic search revealed that on October 4, 2015, Foster downloaded multiple videos containing child pornography. These videos constituted child pornography as defined at 18 U.S.C. § 2256(8). Homeland Security Investigations agents interviewed Foster and he confessed to downloading and viewing videos containing child pornography.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit
www.usdoj.gov/psc and click on the tab "resources."
The case was investigated by the Homeland Security Investigations St. Louis division and prosecuted by Assistant United States Attorney Christopher Hoell.
Gila River Tribal Member Sentenced for Near-Fatal Assault of A WomanRead the Press Release
MARQUETTE, MICHIGAN — David Kel Baldwin, Jr., 45, of Watersmeet, Michigan was sentenced to 41 months in federal prison for assault resulting in serious bodily injury, Acting U.S. Attorney Andrew Birge announced today. In addition to the prison term, U.S. District Judge Paul L. Maloney ordered Baldwin to serve three years of supervised release following his prison term, to pay a $2,000 fine, and to pay a $100 special assessment. Baldwin pleaded guilty to the charge on February 2, 2017.
On August 12, 2016, Baldwin, an enrolled member of the Gila River Indian Community, assaulted an enrolled member of the Lac Vieux Desert Tribe at a residence located on Lac Vieux Desert reservation lands, beating the female victim with his hands. The victim suffered serious bodily injury as a result, and, if not treated promptly by medical personnel, would likely have died as a result of her injuries.
The Lac Vieux Desert Tribal Police and the Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Paul D. Lochner prosecuted the case.
END
Georgia Man Pleads Guilty to Stealing Deceased Father’s Social Security BenefitsRead the Press Release
ATLANTA - Timothy S. Lenon has pleaded guilty to one count of theft of government funds for stealing over $300,000 in Social Security benefits. Lenon received and subsequently spent his deceased father’s Social Security benefits for over 20 years after his death, and did the same with his father’s New York City pension.
“Lenon pocketed his deceased father’s Social Security payments for over 20 years, using the money to pay his own personal expenses,” said U. S. Attorney John Horn. “His theft ultimately diverted these scarce resources from those citizens who truly needed them to live.”
“The Social Security Office of the Inspector General has no higher priority than the investigation and prosecution of those who violate the public’s trust by failing to report Social Security beneficiary deaths and continuing to receive the deceased’s benefits. I’m grateful that the U.S. Attorney’s Office shares our determination to protect the integrity of the SSA’s programs for those who rely on them now and into the future,” stated Special Agent-in-Charge Margaret Moore-Jackson.
According to U.S. Attorney Horn, the charges and other information presented in court: The defendant's father died on January 16, 1994. At the time of his death, he received Social Security retirement benefits and New York City pension benefits that were deposited directly into his bank account. The defendant never notified Social Security that his father died and never closed his father's bank account.
Two years after his father's death, Lenon contacted Social Security and changed the address on his father's account in order to maintain the appearance that his father was still alive. As a result, his father's benefits continued to be deposited into his bank account until April 2014. Bank records showed that Lenon used the money in his father's account to live beyond his means. Social Security money paid for multiple credit cards in both his and his partner’s names, dozens of monthly Amazon purchases, utility bills for himself and his family, and phone bills. In total, the defendant stole over $309,000 from Social Security.
When law enforcement questioned the defendant, he claimed that he thought the bank account was closed after his father's death. Later, he told law enforcement that he never touched the money in the account. Eventually, he admitted that he spent some funds from the account, but continued to minimize the magnitude of his theft by claiming that he only spent money out of the account for a two-year period. The evidence, however, directly contradicted his version of events and showed that he spent all the money in the account.
Additionally, the defendant did not notify the New York City pension system of his father's death, and therefore, his father's pension benefits continued to be direct deposited into his father's account from 1994 until 2008. In total, the New York City pension system deposited over $157,000 into his father's account. Lenon also spent all of this money.
Sentencing for Timothy S. Lenon, 57, of Philadelphia, Pennsylvania, is scheduled for July 19, 2017 at 11:00 a.m., before U.S. District Judge Charles A. Pannell Jr.
This case is being investigated by the Social Security Administration - Office of the Inspector General.
Special Assistant U.S. Attorney Diane C. Schulman is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Gang Members Plead Guilty to Racketeering ChargesRead the Press Release
Two members, including the top leader, of the Detroit branch of the Rollin 60s Crips street gang pleaded guilty yesterday to various racketeering and firearms offenses based on their roles in gang-related murders, shootings, and drug distribution. The guilty pleas are the result of the collaborative efforts of law enforcement and the community to reduce homicide and other violent crime under the Detroit One program, announced Acting U.S. Attorney Daniel L. Lemisch.
Joining in the announcement was S. Robin Shoemaker, Special Agent in Charge of the Detroit Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Chief James Craig of the Detroit Police Department.
According to the indictment, the Rollin’ 60s Crips is a national street gang founded in Los Angeles, California, in the mid-1970s. In 2008, Jerome Hamilton, who pleaded guilty yesterday, started a Detroit line of the Rollin 60s, which now boasts approximately 150 members and who operated primarily on the west side of Detroit in the vicinity of Seven Mile and Tracey. The Rollin 60s Detroit chapter is a violent organization responsible for numerous assaults, robberies, carjackings and the unlawful possession and trafficking of firearms and narcotics in and around the Detroit metropolitan area over the last nine years. The gang uses violence as a means of retribution for acts done by rival gang members, to intimidate witnesses, and as a means for individuals to maintain or advance their position within the gang.
The leader, Jerome Hamilton, 24, of Southfield, pleaded guilty to racketeering conspiracy and use of a firearm during and in relation to a crime of violence causing death. As part of the underlying racketeering activity, Hamilton took responsibility for the August 8, 2011 homicide of Kionte Atkins during a drive-by shooting and being involved in the distribution of marijuana as part of his membership with the Rollin 60s Crips. plea agreement calls for a sentence of 30 to 35 years in prison.
Another gang member, Roderek Perry, 22, of Detroit, also pleaded guilty to racketeering conspiracy, assault with a dangerous weapon in aid of racketeering, and use and carry of a firearm during and in relation to a crime of violence. According to his plea documents, Perry was a member of the Rollin 60s Crips from 2011 to 2016. Perry admitted to participating in the drive-by shooting of Kionte Atkins on August 8, 2011, as well as a June 20, 2012 attempted robbery that left Perry’s fellow gang member dead after Perry inadvertently killed him during the robbery. In addition, Perry sold narcotics to fund activities of the gang. Perry’s plea agreement calls for a sentence of 30 to 35 years in prison.
"Violence in our communities will not be tolerated and this investigation should serve as a warning to others threatening the safety of our citizens," said ATF Special Agent in Charge Robin Shoemaker. "ATF will continue to partner with our law enforcement partners to protect our neighborhoods from violent organized street gangs."
"Violent Gangs should have no place or acceptance in our communities. It should be clear from today's outcome that gang members cannot avoid responsibility for their crimes and law enforcement will not stop going after them,” said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI.
Hamilton and Perry are the tenth and eleventh members of the Rollin 60s Crips to plead guilty in this investigation. Other Rollin 60s Crips members have pleaded guilty to racketeering conspiracy for acts involving carjackings, armed robberies, firebombing, unarmed robberies, and distributing narcotics on behalf of the gang. Those members are:
- Darriyon Mills, 25, of Detroit, pleaded guilty to RICO conspiracy and using a firearm during and in relation to a crime of violence;
- Jonathan Barber, 25, of Detroit, pleaded guilty to RICO conspiracy;
- Deaires Foster, 23, of Irondale, Alabama, pleaded guilty to RICO conspiracy;
- Timothy Price, 27, of Detroit, pleaded guilty to RICO conspiracy;
- Sadeisha Johns, 32, of West Bloomfield, pleaded guilty to RICO conspiracy;
- Soumo Kennedy, 23, of Detroit, pleaded guilty to RICO conspiracy;
- Brandon Kennedy, 23, of Detroit, pleaded guilty to RICO conspiracy;
- Charles Anthony Smith, 32, of Windsor, Ontario, Canada, pleaded guilty to RICO conspiracy; and
- Tre Tigner, 23, of Detroit, pleaded guilty to RICO conspiracy.
Three other alleged members of the gang are scheduled to begin trial on July 11, 2017, before Chief Judge Denise Page Hood.
The case is being investigated by the ATF’s Comprehensive Violence Reduction Program, which includes representatives of the Detroit Police, Michigan State Police, and Michigan Department of Corrections, in coordination with the FBI Violent Crime Task Force, and Detroit Police Department. The case is being prosecuted by Assistant U.S. Attorneys Eaton Brown and Shane Cralle.
Fountain Valley Man Arrested for Attempted Smuggling of Nearly 100 Asian Songbirds from Vietnam – Most of which Died in TransitRead the Press Release
LOS ANGELES – Federal agents this morning arrested a Fountain Valley man on federal animal smuggling charges that allege he illegally brought to the United States 93 Asian songbirds on a flight from Vietnam – most of which died in transit or soon after arriving at Los Angeles International Airport.
Kurtis Law, 49, who also maintains a residence in Vietnam, was arrested pursuant to a federal criminal complaint filed yesterday afternoon.
The complaint alleges that Law attempted to smuggle 93 Asian songbirds into the United States on March 24.
According to the affidavit in support of the complaint, investigators found several species of protected songbirds in Law’s luggage, including Bali Mynas birds (Leucopsar rothschildi), Chinese Hwamei birds (Garrulax canorus), Silver-eared Mesia birds (Leiothrix argentauris), and Red-billed Leiothrix birds (Leiothrix lutea). These species are protected under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).
The complaint alleges that the birds were placed in Law’s suitcases in a way “that allowed each bird little or no movement,” and all but eight of the 93 birds ultimately died as a result of the smuggling.
Law is expected to make his initial appearance this afternoon in federal court in downtown Los Angeles.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
Law is specifically charged with smuggling goods into the United States, a felony offense that carries a statutory maximum penalty of 20 years in federal prison.
The investigation in this case is being conducted by the United States Fish and Wildlife Service, U.S. Customs and Border Protection, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
The prosecution is being handled by Assistant United States Attorneys Dennis Mitchell and Erik M. Silber of the Environmental and Community Safety Crimes Section.
Former Pittsburgh physician convicted of 180 counts, including conspiracy to distribute steroids, human growth hormone, oxycodone and OxyContinRead the Press Release
A jury convicted former physician Richard Rydze on all 180 charged counts, including conspiracy to distribute anabolic steroids, human growth hormone, oxycodone and OxyContin, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
A sentencing date was not immediately set for Rydze, 67, of Pittsburgh.
“While a physician, Rydze used his prescribing pad in place of his ATM card, doling out steroids to enrich himself and flooding the community with dangerous painkillers,” Sierleja said. “He violated the law, his professional oath, and the trust of his patients.”
“Greed and power often drives criminal activity as evidenced by this indictment, where a physician decided to abuse his medical privileges in order to line his pockets,” Anthony said. “The FBI will continue to aggressively pursue doctors who illegally divert prescription medications.”
Various conduct detailed in the months-long trial spanned from 2005 through 2012.
Rydze was the sole owner of Optimal Health Center LLC (OHC), located at 425 First Avenue, Pittsburgh, which opened in 2007. Prior to OHC, Rydze was involved with other physicians in a joint medical practice known as Diagnostic Medical Associates, according to the indictment.
James Hatzimbes and William Sadowksi previously pleaded guilty to their roles in the case. Hatzimbes owned and operated HSE Salon and Wellness Center, aka HSE Anti-Aging & Wellness Center (HSE), formerly located in a strip mall at 2851 Saw Mill Run, Pittsburgh. It was located in the same strip mall where Hatzimbes owned and operated Hatz’s Solar Eclipse Tanning. Sadowski operated a Pittsburgh pharamacy called ANEWrx, according to court documents.
Together, they facilitated the conspiracy to illegally distribute controlled substances and, in the case of Sadowski, knowingly facilitated a kickback scheme from which Rydze directly benefitted.
Rydze conspired with others to distribute anabolic steroids, including Stanozolol, Nandrolone Decanoate, Testosterone Enanthate, Testosterone Cypionate, Oxandrolone and testosterone. He unjustly enriched himself by causing the distribution of the steroids for unauthorized uses such as bodybuilding and athletic performance enhancement, according to trial testimony and court documents.
Rydze and Hatzimbes scheduled “steroid clinics” at HSE nearly every other Saturday. Frequently, Rydze would falsely diagnose clients as having hormone imbalance or other conditions, and then knowingly prescribe steroids and human growth hormone, according to court documents.
Rydze and Hatzimbes had a financial relationship in which Rydze charged clients $75 for each visit at HSE, which Rydze and Hatzimbes split equally. Additionally, Hatzimbes received prescriptions for anabolic steroids and human growth hormone from Rydze on numerous occasions, which were filled at ANEWrx, despite no corresponding office appointments, notations or diagnosis to justify the prescriptions, according to court documents and trial testimony.
In early 2007, Rydze met with Sadowski, the co-owner of ANEWrx, and they agreed Rydze would be paid a commission on every prescription for human growth hormone, anabolic steroids and other specific medications filled at ANEWrx. Sadowski then provided Rydze with a list of ANEWrx’s price for each prescription. They agreed to mark up the price for Rydze’s patients, with Sadowski then kicking back additional money to Rydze, according to court documents and trial testimony.
Commission reports prepared by ANEWrx show that between August 2007 and January 2011, Rydze received $301,407 in commission payments. For commissions paid on mark-ups for Rydze’s patients, ANEWrx wrote one check to Rydze for $6,845 and three to OHC for $25,395. Additionally, ANEWrx made 14 deposits into OHC’s account totaling $146,465, according to court documents and trial testimony.
Rydze was also convicted of multiple counts of distribution of anabolic steroids, conspiracy to distribute human growth hormone, distribution of human growth hormone, distribution of controlled substances, obstruction of justice.
Rydze conspired with others to distribute controlled substances, including Oxycodone, Oxymorphone, Oxycontin and Opana, according to court documents.
Beginning in 2007, Rydze prescribed the painkillers to Williams Zipf. Later that year, Zipf requested Rydze put the prescriptions in the names of other people, including Zipf’s relatives. At times, Zipf requested Rydze write two prescriptions for him at the same time and leave the date blank on one so Zipf could fill it in later. Zipf took the prescriptions to numerous different pharmacies in order to avoid detection, according to court documents and trial testimony.
Zipf has pleaded guilty to crimes for his role in the case.
From 2005 through 2011, Rydze obtained more than 21,000 pills of Hydrocodone-Acetaminophen, commonly referred to as “Vicodin ES,” by calling in more than 200 prescriptions to Pittsburgh-area pharmacies. He did so by fraudulently and without lawful authority using a DEA registration number that was issued to another physician, and did so without the consent or knowledge of that physician, according to court documents and trial testimony.
The jury also found Rydze corruptly attempted to obstruct justice by calling his brother and asking his brother to lie to federal law enforcement by declaring that some of the diverted opioid prescriptions found in Rydze’s control during the execution of a search warrant were written to the brother. In fact, according to trial testimony and other evidence, the prescription was illegally written to Rydze’s deceased father. His brother refused and testified during the trial of this matter.
A related case accusing Rydze of engaging in widespread health care fraud remains pending.
This case was prosecuted by Assistant U.S. Attorney Carol M. Skutnik and Brian McDonough following an investigation by the FBI.
Former Pastor of St. Mary’s County Church Pleads Guilty to Federal Bank Fraud ChargesRead the Press Release
Greenbelt, Maryland – On May 1, 2017, John S. Mattingly, age 71, of Charlotte Hall, Maryland, pleaded guilty to bank fraud in connection with a scheme to steal funds from St. Francis Xavier Catholic Church, while he was the pastor.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, St. Mary’s County Sheriff Tim Cameron, and St. Mary’s County State’s Attorney Richard Fritz.
According to his plea agreement, Mattingly was ordained as a Roman Catholic priest in 1972 and was the pastor of St. Francis Xavier Catholic Church (St. Francis), in Leonardtown, Maryland, from 1994 until September 1, 2010, when he resigned. While serving as a parish priest, Mattingly was paid a salary and stipend by St. Francis.
From September 2006 through September 2010, Mattingly fraudulently deposited checks from parishioners made payable to St. Francis and to the St. Vincent de Paul Society, which were intended by the St. Francis parishioners to be charitable donations, into a bank account he controlled. In order to conceal the scheme, Mattingly falsely represented that that the checks he deposited into his bank account would be used for charitable purposes and/or church maintenance and renovations. Mattingly did not use the charitable contributions from the St. Francis parishioners for their intended purposes, but instead transferred the fraudulently obtained funds from his bank account to his personal individual retirement account. He also wrote unauthorized checks from the St. Francis bank account payable to himself and deposited those checks into his personal individual retirement account.
Mattingly fraudulently deposited more than 500 checks, totaling at least $76,000, written by more than 135 parishioners and made payable to St. Francis or the St. Vincent de Paul Society, and not to Mattingly.
Mattingly and the government have agreed that if the Court accepts the plea agreement he will be sentenced to home detention from six to 18 months. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for July 31, 2017 at 10:00 a.m.
Acting United States Attorney Stephen M. Schenning commended the FBI, St. Mary’s County Sheriff’s Office, and St. Mary’s County State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Bryan E. Foreman, who is prosecuting the case.
Former North Charleston, South Carolina, Police Officer Michael Slager Pleads Guilty to Federal Civil Rights OffenseRead the Press Release
Former North Charleston, South Carolina, Police Department (NCPD) Officer Michael Slager, 35, pleaded guilty to a federal civil rights offense for his fatal shooting of Walter Scott, Jr. on April 4, 2015.
Attorney General Jeff Sessions, Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division, U.S. Attorney Beth Drake of the District of South Carolina, Special Agent in Charge Alphonse “Jody” Norris of the FBI’s Columbia Division, Solicitor Scarlett A. Wilson of the Ninth Judicial Circuit and Chief Mark Keel of the South Carolina Law Enforcement Division (SLED) announced today’s guilty plea, which took place in the U.S. District Court for the District of South Carolina. The plea will resolve both the federal and the state cases pending against Michael Slager. Prior to entry of the guilty plea, jury selection in the federal trial had been scheduled to begin on May 9, and a state trial had been set for August.
According to documents filed in connection with the guilty plea, Michael Slager, while acting as an NCPD Officer, willfully used deadly force on Walter Scott even though it was objectively unreasonable under the circumstances. Slager had stopped Scott’s vehicle after observing that a brake light was not working. During the stop, Scott fled on foot and Slager pursued him. During the foot chase, Slager deployed his Taser and Scott fell to the ground. Scott managed to get off of the ground and again run away. Scott was unarmed and running away when Scott fired eight shots at him from his department-issued firearm. Five shots hit Scott, with all of the bullets entering from behind. Scott died as a result of the injuries from Slager’s gunshots.
“The Department of Justice will hold accountable any law enforcement officer who violates the civil rights of our citizens by using excessive force,” said Attorney General Sessions. “Such failures of duty not only harm the individual victims of these crimes; they harm our country, by eroding trust in law enforcement and undermining the good work of the vast majority of honorable and honest police officers. As our Department works to support the courageous and professional law enforcement personnel who risk their lives every day to protect us, we will also ensure that police officers who abuse their sacred trust are made to answer for their misconduct.”
“Our hearts are with the Scott family today. They have persevered in their quest for justice for their loved one, and I hope that today brings them a measure of closure,” said U.S. Attorney Drake. “I also want to thank both Solicitor Wilson of the Ninth Judicial Circuit and South Carolina Law Enforcement Division Chief Mark Keel for their efforts to secure justice in this matter.”
“The resolution of this investigation protects the integrity of law enforcement, maintains the confidence of the community, and ensures justice is served in a fair and impartial manner,” said Special Agent in Charge Norris. “The cooperation between the South Carolina Law Enforcement Division, the U.S. Attorney's Office, the Charleston County Solicitor's Office, the Civil Rights Division, and the FBI Columbia Division was paramount in bringing this case to a successful conclusion.”
“This conviction is prime example of the strong results we can get when federal and state authorities work together,” said Solicitor Wilson. “We are grateful for the Department of Justice for their role in obtaining justice for the Scotts with this conviction and in moving our community forward through their hard work.”
“SLED’s role in any criminal investigation is to discover the facts of the case and report them,” said Chief Keel. “For the men and women of SLED, working closely with our partners in the Ninth Circuit Solicitor’s Office, the U.S. Department of Justice, the FBI and the U.S. Attorney’s Office, today’s plea is the culmination of our collaboration.”
“This disposition is the product of the excellent work of state and local law enforcement. I am proud of the leadership of U.S. Attorney Beth Drake and the critical work of the FBI. The teamwork in this case represents the best in law enforcement,” added Attorney General Sessions.
Slager faces a maximum sentence of life in prison for the federal civil rights violation, as well as a potential $250,000 fine. Both federal prosecutors and Solicitor Wilson will have the opportunity to address the Court at sentencing.
The case was investigated by the FBI’s Columbia Division and the South Carolina Law Enforcement Division. The federal case is being prosecuted by Assistant U.S. Attorneys Eric Klumb and Alyssa Richardson of the District of South Carolina and Special Litigation Counsel Jared Fishman and Trial Attorney Rose Gibson of the Civil Rights Division of the Department of Justice. The state case is being prosecuted by Scarlett A. Wilson and the Office of the Solicitor of the Ninth Judicial Circuit.
Former Federal Corrections Officer Pleads Guilty to BriberyRead the Press Release
Jackson, Miss - Former federal corrections officer Julius Pearson, 26, from Madison County, Mississippi, pleaded guilty today before Senior U.S. District Judge William H. Barbour, to bribery, announced Acting U.S. Attorney Harold Brittain.
The investigation revealed that, beginning in approximately August, 2016, Julius Pearson began smuggling tobacco into the Federal Prison in Yazoo County where he was employed as a corrections officer. Pearson was paid approximately ten thousand dollars by inmates and others for delivering the tobacco to inmates inside the facility.
Pearson will be sentenced on August 15, 2017, and faces a maximum penalty of 15 years in prison and a $250,000 fine. The case is being prosecuted by Deputy Criminal Chief Patrick Lemon and was investigated by the Federal Bureau of Investigation and the U.S. Department of Justice, Office of Inspector General.
Florida Man Indicted for Scheme Seeking $5.6 Million in Tax RefundsRead the Press Release
A federal grand jury sitting in West Palm Beach, Florida returned an indictment on April 25, which was unsealed today, charging a Florida resident with corruptly endeavoring to obstruct and impede the due administration of the internal revenue laws, filing false tax returns, theft of government property and money laundering, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the indictment, David R. Andre of Boynton Beach, Florida, filed false income tax returns with the Internal Revenue Service (IRS) from 2010 to 2015 that sought more than $5.6 million in fraudulent tax refunds. The indictment further alleges that the IRS paid out approximately $463,920, which was deposited into Andre’s personal bank account. Andre also allegedly attempted to impede the due administration of the internal revenue laws by making false statements to IRS agents during interviews in 2015. According to the indictment, Andre falsely stated to IRS agents that he purchased his residence with inheritance proceeds, when in fact he purchased it with illegal proceeds from the tax refund fraud.
An indictment merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Andre faces a statutory maximum sentence of three years in prison for corruptly endeavoring to impede the due administration of the internal revenue laws, three years in prison for each count of filing a false tax return, 10 years in prison for each count of theft of government property, and 10 years in prison for each money laundering count. Andre also faces a period of supervised release, restitution, forfeiture and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys Daniel McGraw and Charles Edgar Jr. of the Tax Division, who are prosecuting the case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office for the Southern District of Florida for its substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Five-Time Felon Sentenced to 20 Years for Possession of A Firearm and AmmunitionRead the Press Release
LAS VEGAS, Nev. – A five-time felon was sentenced today by United States District Judge Kent J. Dawson to 235 months in prison for possession of a firearm and possession of ammunition, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Following a jury trial in October 2016, Mario Jacob Sapp, 40, of Las Vegas, was found guilty of one count each of felon in possession of a firearm and felon in possession of ammunition. At the time of trial, Sapp had five prior felony convictions, including two prior convictions for being a felon in possession of a firearm, a conviction for battery with a deadly weapon resulting in substantial bodily harm, and a conviction for conspiring to manufacture methamphetamine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Las Vegas Metropolitan Police Department. The case was prosecuted by Assistant U.S. Attorneys Phillip N. Smith, Jr. and Patrick Burns.
This case was brought as part of Project Safe Neighborhoods, a nationwide commitment by the Department of Justice to reduce gun and gang crime in America by networking local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. For more information about Project Safe Neighborhoods, visit www.justice.gov/usao-nv.
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Five Additional Defendants Charged in Securities Fraud ConspiracyRead the Press Release
HOUSTON – Five additional individuals have been charged for their role in a $6.8 million securities fraud “pump-and-dump” conspiracy, announced Acting U.S. Attorney Abe Martinez.
A federal grand jury returned the original indictment Sept. 15, 2016, charging Andrew Ian Farmer, 38, and Thomas Galen Massey, 46, for their roles in a securities fraud scheme involving the stock of Chimera Energy Corp.
A superseding indictment was returned by the grand jury on April 26, 2017, and charges five new individuals for their roles in the Chimera fraud - Eddie Douglas Austin Jr., 66, Carolyn Price Austin, 62, and Charles Earl Grob Jr., 37, all of Houston; John David Brotherton, 57, of League City; and Scott Russell Sieck, 58, of Winter Park, Florida. All five new defendants are charged with one count of conspiracy to commit wire fraud and nine counts of wire fraud.
Brotherton and Grob made their initial appearances this afternoon, at which time the indictment was unsealed. Carolyn Austin and Eddie Austin are expected to make their appearances in federal court before U.S. Magistrate Judge Frances Stacy at 2:00 p.m. Thursday, May 4, while Sieck is expected to appear in Houston sometime next week.
In a typical “pump-and-dump” fraud scheme, the perpetrators publish false and misleading information about a company in order to fraudulently inflate the price of the stock. The perpetrators then sell the stock to unwitting investors at the inflated prices.
According to the charges in this case, the conspiracy involved a scheme to defraud investors in Chimera Energy Corp. by publishing false and misleading information about the company. In the conspiracy, the defendants allegedly published press releases, public filings and public advertisements that falsely claimed Chimera had licensed a new technology called “Non-Hydraulic Extraction,” which purported to be a new method of extracting oil by fracturing without using water. The defendants also published false press releases claiming that they had a business relationship with Petroleos Mexicanos, aka PEMEX, the government-owned oil producing company of Mexico, according to the charges. As a result of the false claims, the defendants allegedly defrauded investors that purchased shares of Chimera Energy Corp. out of a total of approximately $6.8 million.
Conspiracy to commit wire fraud and wire fraud each carry a possible term of imprisonment of up to 20 years in federal prison and a possible 250,000 fine.
Massey pleaded guilty to his role on April 18, 2017, and is set for sentencing June 26, 2017. The remaining defendants are presumed innocent unless convicted through due process of law.
The FBI conducted the investigation with the assistance of the Securities and Exchange Commission and Financial Industry Regulatory Authority. Assistant U.S. Attorney Justin R. Martin is prosecuting the case.
Felon from Carlsbad Sentenced to Prison for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Miguel Molina, 36, of Carlsbad, N.M., was sentenced today in federal court in Las Cruces, N.M., to 37 months in prison for unlawfully possessing a firearm and ammunition. Molina will be on supervised release for three years after completing his prison sentence.
Molina was arrested in July 2016, on an indictment charging him with being a felon in possession of a firearm and ammunition on May 6, 2015, in Eddy County, N.M. According to the indictment, Molina was prohibited from possessing firearms or ammunition because of his prior conviction for distributing marijuana.
On Nov. 17, 2016, Molina entered a guilty plea to the indictment without the benefit of a plea agreement.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pecos Valley Drug Task Force. Assistant U.S. Attorney Dustin C. Segovia of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.