Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
14 June 2017
Maverick County Man Sentenced for Federal Violations in East TexasRead the Press Release
BEAUMONT, Texas - A 23-year-old Eagle Pass, Texas man has been sentenced to federal prison for violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Raul Alfonso Moreno-Bres pleaded guilty on Jan. 25, 2017, to interstate travel in aid of racketeering enterprise and was sentenced to 18 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, on Oct. 12, 2016, law enforcement officers conducted a traffic stop on a vehicle traveling westbound on Interstate-10 in Orange County near mile marker 873. During the traffic stop, deputies learned the vehicle was owned by a passenger, Moreno Bres. Moreno Bres said he was a college student and that he had been in Atlanta on vacation. Moreno Bres gave consent to search the vehicle, during which deputies located $121,903 in currency. Afterwards, Moreno Bres said he had gone to Atlanta on orders from an unspecified Mexican drug cartel to pick up the money and deliver it to Mexico and that he knew the money was proceeds of unlawful activity.
This case was investigated by the DHS/HSI/ICE and Orange County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Christopher T. Rapp.
Massachusetts Man Sentenced to 78 Months in Prison for Firearms SchemeRead the Press Release
Concord, N.H.— Acting United States Attorney John J. Farley announced that Matthew Bergeron, formerly of Fitchburg, Massachusetts was sentenced to 78 months in prison for his role in the straw purchase of three firearms in New Hampshire.
According to court records and statements in court, Bergeron arranged to have two co-conspirators purchase firearms on his behalf in June and July 2016 from a federally licensed firearms dealer in Hooksett, New Hampshire. In connection with each firearm purchase, the co-conspirators were required to complete an ATF Form 4473 where they falsely stated that they were purchasing the firearms for themselves when they were actually purchasing the weapons for Bergeron. Bergeron also had each co-defendant purchase ammunition and extended clip magazines on his behalf. Shortly after the purchases, Bergeron took possession of the firearms, magazines and ammunition. Bergeron was a previously convicted felon and a resident of Massachusetts, and could not legally purchase the firearms for himself in New Hampshire.
Bergeron, who pleaded guilty to two conspiracy charges on March 2, 2017, will be placed on supervised release for three years after he completes his prison sentence.
Bergeron’s co-conspirators, Rashawn Dunn, 30, and Jessica Fithian, 33, both of Manchester, also have pleaded guilty and are awaiting sentencing.
“The United States Attorney’s Office is committed to working with our law enforcement partners in order to prevent violence and to keep firearms out of the hands of criminals.” Acting U.S. Attorney Farley said. “I commend the work of the law enforcement agencies in this case. Their hard work helps to keep our community safe.”
This matter was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Manchester Police Department. The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes. The case is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
###
Man Sentenced to 60 Months in Prison for Conspiracy to Possess with Intent to Distribute CocaineRead the Press Release
St. Thomas, USVI- Reinaldo Morone, 44, of St. Thomas, was sentenced today to 60 months in prison for conspiracy to possess with the intent to distribute cocaine, Acting United States Attorney, Joycelyn Hewlett announced. District Court Judge Curtis V. Gomez also sentenced Morone to serve five years of supervised release, pay a $100 special assessment, and perform 400 hours of community service.
On December 12, 2016, Morone pleaded guilty to conspiracy to possess with the intent to distribute cocaine. According to the plea agreement, on October 20, 2016, Morone attempted to sell to an individual approximately four kilograms of a white powdery substance that tested positive for cocaine
The case was investigated by the U.S. Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Man Sentenced to 10 Months in Prison for Possession of a Firearm by a Person Convicted of a Crime of Domestic ViolenceRead the Press Release
St. Thomas, USVI- Walid John, 37, of St. Thomas, was sentenced today to 10 months in prison for possession of a firearm by a person convicted of a crime of domestic violence, Acting United States Attorney, Joycelyn Hewlett announced. District Court Judge Curtis V. Gomez also sentenced John to serve three years of supervised release, pay a $100 special assessment, and perform 400 hours of community service.
On December 12, 2016, John pleaded guilty to possession of a firearm by a person convicted of a crime of domestic violence. According to the plea agreement, on October 20, 2016, John admitted to being in possession of a firearm and that he had been previously convicted of a domestic violence offense in 2012.
The case was investigated by the U.S. Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Maine Man Pleads Guilty to Making False Statements During Purchase of a FirearmRead the Press Release
BOSTON - A Maine man pleaded guilty yesterday in federal court in Boston to conspiracy to make false statements during the purchase of a firearm.
Peter Aloisio, 61, of Dexter, Maine, pleaded guilty before U.S. District Court Senior Judge Mark L. Wolf who scheduled sentencing for Sept. 7, 2017.
In December 2015, Aloisio conspired with a convicted felon living in Haverhill, Mass., to purchase a Taurus .45 caliber handgun and a box of .45 caliber ammunition from a firearms store in Plaistow, N.H. Aloisio falsely stated that he was the “actual” buyer of the firearm and was not purchasing it on behalf of another person. He subsequently gave the handgun and ammunition to the felon in exchange for $300 worth of crack cocaine.
The charge provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Office, made the announcement today. Assistant U.S. Attorneys John T. McNeil and Nicholas Soivilien of Weinreb’s Criminal Division are prosecuting the case.
Lubbock Man Involved in Fentanyl Distribution Conspiracy Pleads Guilty to Federal Drug ChargesRead the Press Release
LUBBOCK, Texas — A Lubbock, Texas, man, Brian Landon Brown, 32, appeared today before U.S. Magistrate Judge D. Gordon Bryant Jr. and pleaded guilty to a federal offense stemming from his role in a fentanyl distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Brown pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute furanyl fentanyl. He faces a statutory penalty of not more than twenty years in federal prison and a $1 million fine. Judge Bryant recommended that the district court accept Brown’s guilty plea.
According to plea documents filed in the case, on October 17, 2016, Brown was arrested in Lubbock, Texas, on an unrelated arrest warrant. At the time of his arrest, Brown possessed a vial of .291 net grams of Furanyl Fentanyl. Brown admitted that he typically sold several grams of Furanyl Fentanyl per day and that, several months before his arrest, he started selling at least 10 grams of Furanyl Fentanyl per day.
On October 6, 2016, at 2:30 p.m. Brown met a 26-year-old male and sold Furanyl Fentanyl to that individual. Around 4:15 - 4:30 a.m. on October 7, 2016, that same individual was discovered unconscious in a bathroom. At approximately 5:05 a.m. that same day, the individual was pronounced dead. The Lubbock County Medical Examiner (LCME) did an autopsy and determined that the cause of death was drug toxicity from Furanyl Fentanyl. A postmortem forensic toxicology analysis revealed 1.9 ng/mL of Furanyl Fentanyl in the individual’s blood.
Fentanyl is a potent synthetic opioid analgesic that is about 30 to 40 times stronger than heroin and up to 100 times more powerful than morphine. Besides analgesia, Fentanyl produces a variety of pharmacological effects, including alteration in mood, euphoria, drowsiness, respiratory depression, suppression of cough reflex, constriction of pupils, and impaired gastrointestinal mobility. Fentanyl is a Schedule II controlled substance.
Furanyl Fentanyl is a controlled substance analogue that has a chemical structure substantially similar to Fentanyl, a Schedule II controlled substance under the Controlled Substances Act, and has a stimulant, depressant, or hallucinogenic effect on the central nervous system that is substantially similar to or greater than the stimulant, depressant, or hallucinogenic effect on the central nervous system of Fentanyl, a Schedule II controlled substance.
The case is being investigated by the Drug Enforcement Administration and the Lubbock Police Department. Assistant U.S. Attorneys Jeffrey Haag and Russell Lorfing are in charge of the prosecution.
# # #
Local Man Hammered with 600-Month Prison Sentence for Sexual Exploitation of Children and Tax FraudRead the Press Release
GALVESTON, Texas – A local man has been ordered to federal prison for 50 years following his conviction of sexual exploitation of children and for knowingly making a false claim in the nature of preparing and filing a false tax return, announced Acting U.S. Attorney Abe Martinez along with Special Agent in Charge D. Richard Goss of IRS-Criminal Investigation (CI) and Special Agent in Charge Perrye K. Turner of the FBI. Benjamin Douglas Guidry pleaded guilty Sept. 29, 2016.
Today, U.S. District Judge George C. Hanks Jr. handed Guidry 270 months for each count of production of child pornography in addition to another 60-months for the tax fraud. The sentences were all ordered to run consecutively for a total 600-month-term of federal imprisonment.
In handing down the sentence, Judge Hanks called Guidry the worst kind of predator and said what he did was absolutely horrific. “You solicited the trust, admiration and respect of victims and turned around and used that for your own gratification.” He also noted that if Guidry was willing to do this to children he knew and supposedly loved, he didn’t want to think about what Guidry would be willing to do those he didn’t know.
Guidry was further ordered to pay $201,454 in restitution to the IRS. He will be on supervised release for the rest of life following completion of the prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
According to the plea agreement filed in the record of the case and to statements made in court, the IRS had been investigating Guidry for possible tax offenses. In May 2015, authorities executed a search warrant at Guidry’s place of business, Financial Precision Group, at which time they seized several computers and boxes of documents. Agents noticed, among other things, that several files on Guidry’s external hard drive had titles that led the IRS to believe they may contain child pornography. Authorities also noticed text messages on his cell phone that appeared to be inappropriate communications with a minor and a video of a minor.
The FBI joined the investigation and later executed a search warrant at Guidry’s residence. During that search, authorities found items present in the video on Guidry’s cell phone, including clothes worn by one of identified minor victims in the video. They also seized a cell phone and multiple computers.
Guidry was arrested at that time.
On two of Guidry’s external hard drives, authorities ultimately discovered a total of at least 164 images and 28 videos of child pornography. Additionally, a cell phone contained at least three videos of child pornography. One of the videos shows one of the minor victims being penetrated by an adult male. That video contains sounds from the victim demonstrating that the minor, who was protesting what was being done to her, was under the influence of a drug or was deeply sleeping. Another victim discovered she had been recorded on two separate occasions, once via a cell phone propped on the back of a toilet and again by an iPad propped up in the same location.
As to the tax offense, Guidry also agreed the intended income tax loss was between $250,000 and $550,000.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Sherri L. Zack and Charles J. Escher are prosecuting the case.
Jury convicts Toledo man of firearms crimeRead the Press Release
A Toledo man with a long criminal history was convicted by a jury of illegally having a firearm, law enforcement officials said.
Lawrence Lee Walls, 46, was convicted in federal court of one count of being a felon in possession of a firearm.
Walls is expected to be sentenced later this year. Walls qualifies for sentencing enhancements under the Armed Career Criminal Act due to his prior convictions.
Walls possessed a Hi-Point 9 mm Luger semi-automatic pistol in the 700 block of Tecumseh Street in Toledo on Oct. 16, 2015, according to evidence presented at trial.
Walls brandished the gun at others as police pulled up. He then fled and tossed the gun in some brush, where police later found it fully loaded, according to evidence presented at trial.
He was previously convicted of aggravated assault (1993); aggravated assault (1998); and aggravated robbery with a firearm specification, aggravated burglary with a firearm specification and robbery (2001), according to court documents.
The investigating agencies in this case were the Toledo Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant U.S. Attorneys Noah P. Hood and Tracey Ballard Tangeman.
This case is being prosecuted as part of "Project Safe Neighborhoods," a gun violence reduction program administered by the Department of Justice, U.S. Attorney's Office for the Northern District of Ohio. The program targets armed criminals for federal prosecution.
Jury Convicts Milton Man of Online Child Exploitation OffensesRead the Press Release
PENSACOLA, FLORIDA – Danny Ray Murphy, 37, of Milton, was convicted today in the U.S. District Court in Pensacola of all counts, which charged conspiracy, receipt of child pornography, and possession of child pornography involving a minor under age 12. The verdict was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
During the three-day trial, the jury reviewed three months of online communications between Murphy and a conspirator, including images and a video of sex acts involving a three-year-old, evidence linking the online activity to Murphy, and forensic evidence from his cellular telephone regarding sexually assaulting the three-year-old.
For the conspiracy and receipt charges, Murphy faces a minimum of 5 years and a maximum of 20 years in prison. For the possession charge, Murphy faces a maximum of 20 years in prison. The sentencing hearing is scheduled for August 31, 2017, at 1:00 p.m. at the United States Courthouse in Pensacola
The case is being investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations, the Escambia County Sheriff’s Office, the Pensacola Police Department, the State Attorney’s Office for the 1st Judicial Circuit, and the North Florida Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant United States Attorney David L. Goldberg.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Jury Convicts Local Resident for Importing MethRead the Press Release
BROWNSVILLE, Texas – A federal jury has returned guilty verdicts against a 55-year-old legal permanent resident alien who resided in Matamoros for methamphetamine trafficking, announced Acting U.S. Attorney Abe Martinez. Martin Araiza-Jacobo was convicted of conspiracy to possess and possession of methamphetamine with intent to deliver as well as conspiracy to import and importation of methamphetamine following a two-day trial and approximately two hours of deliberation.
On Jan. 19, 2017, Araiza-Jacobo attempted to enter the United States through a pedestrian lane at the Gateway International Bridge, at which time he declared that he was bringing in sandwiches and two bags of candies from Mexico.
A Customs and Border Protection (CBP) officer inspected the bags and immediately noticed the candies inside the bag did not match with the candy images displayed on the bag. The contents also felt harder than expected. Authorities conducted an X-ray examination which revealed anomalies in both bags. Officers then opened the bags and discovered 83 packages containing 5.19 kilograms of methamphetamine.
Araiza-Jacobo stated he worked as a “cruzador” or a person who helps people cross groceries from the United States to Mexico. He claimed he had crossed into Mexico earlier that day to buy a sandwich for a lady and met an unknown man there who asked him to cross the bags of candy. The man was supposed to call Araiza-Jacobo once back in the U.S. and would give him the name and description of the person to whom he would deliver the candy. Araiza-Jacobo denied ever seeing or talking to the unknown man before.
However, the jury heard evidence that Araiza-Jacobo had been in contact with this man since Jan. 16, 2017. Further, Araiza-Jacobo had actually initiated the contact. Testimony revealed that Araiza-Jacobo had overheard part of a conversation in which a man was looking for someone willing to cross a piñata and a box of candy into the U.S. and ship it to Atlanta, Georgia. Araiza-Jacobo got the man’s number and called him. Less than an hour later, Araiza-Jacobo commented that the trip was set.
He has been and will remain in custody pending sentencing, set for Sept. 13, 2017. At that time, he faces up to life in federal prison and a possible $10 million fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Israel Cano III and Jason Corley are prosecuting the case.
Joseph W.M. Develles Sentenced for Unlawful Possession of Firearms and Possession of Marijuana with Intent to DistributeRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant JOSEPH WENDELL MONTON DEVELLES, age 24, was sentenced in District Court on June 13, 2017, to a 21-month term of imprisonment for Possession of Firearms by a Prohibited Person and Possession with Intent to Distribute Less than 50 Kilograms of Marijuana. The Court also ordered two years of supervised release and a mandatory $200 assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On October 31, 2016, DEVELLES pled guilty to an Information that charged Possession of Firearms by a Prohibited Person, in violation of 18 U.S.C. § 922(g)(3), and Possession with Intent to Distribute Less than 50 Kilograms of Marijuana, in violation of 21 U.S.C. § 841(a)(1). The firearms offense was based on DEVELLES being an unlawful drug user at the time he possessed the weapons. During February 2016, officers from the Guam Police Department (GPD) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) executed a search warrant at the defendant’s residence in Astumbo, Dededo. Inside a bedroom, law enforcement found two five-gallon buckets that contained 2.4 pounds of marijuana. They also discovered a Glock .380 caliber pistol, a Marlin 270 Win. rifle, ammunition, and approximately $26,300 in U.S. currency. The money was proceeds from the sale of marijuana. DEVELLES had previously been convicted in the Superior Court of Guam for driving while intoxicated. Chief District Judge Tydingco-Gatewood noted that DEVELLES committed federal offenses while still on probation.
The investigation was conducted by ATF and the GPD-Special Investigation Section. The case was prosecuted by Belinda Alcantara, Assistant United States Attorney for the District of Guam.
Jacksonville Man Sentenced for Perpetrating Fraud Schemes While Illegally Collecting Disability and Medicaid BenefitsRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced Douglas Thompson (52, Jacksonville) to 27 months in federal prison for wire fraud and theft of government property. The Court also ordered him to pay $149,218.26 in restitution to the victims of his crimes.
Thompson pleaded guilty on February 24, 2017.
According to court documents, Thompson was a heavy equipment broker who operated his one-man business under the name Douglas Thompson Industries (DTI). In order to increase business, Thompson created multiple DTI websites that falsely claimed the company had been in existence for 30 years, had multiple divisions, and had satisfied over 6,000 customers worldwide. The sites also falsely claimed that Thompson, a high school dropout, was a graduate of the Massachusetts Institute of Technology. Thompson defrauded three DTI customers by purporting to broker the sale of truck chassis, accepting payment, and then failing to deliver as agreed.
While operating his business and defrauding customers, Thompson also fraudulently collected Supplemental Security Income (SSI) and Medicaid healthcare benefits. SSI is a program designed to provide support for low-income individuals, generally who are unable to work due to a disability.
This case was investigated by the Social Security Administration - Office of the Inspector General and the Department of Health and Human Services - Office of Inspector General. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
Island Man Heads to Prison on Child Pornography ChargeRead the Press Release
BROWNSVILLE, Texas – A 70-year-old resident of South Padre Island has been sentenced to federal prison for possession of child pornography, announced Acting U.S. Attorney Abe Martinez. Howard William Halverson pleaded guilty Nov. 29, 2016.
Today, U.S. District Judge Rolando Olvera considered Halverson’s age and handed him a sentence of 60 months in federal prison. The court further ordered Halverson to pay $50,317.00 in restitution to the known victims discovered in his child pornography collection. Halverson will spend the rest of his life on supervised release after serving his sentence, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
The investigation into Halverson began as authorities were looking into persons utilizing peer-to-peer software to exchange and view child pornography. Federal agents executed a search warrant at Halverson’s condominium on July 6, 2016, which led to the discovery of 1488 images and five videos containing child pornography, 545 of which were of known victims.
Halverson has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and the Rio Grande Valley Child Exploitation Task Force conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Jason Corley, 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."
Indictment Returned for Fraud in Connection with Technology Sale to the Bibb County School DistrictRead the Press Release
United States Attorney for the Middle District of Georgia, G. F. Peterman, III, announced that an indictment charging Isaac J. Culver, III, age 47, Lizella, Georgia, Dave Carty, age 48, Macon, Georgia, and their business, Progressive Consulting Technologies, Inc., with conspiracy to commit wire and mail fraud, ten (10) counts of wire fraud, one (1) count of mail fraud, and conspiracy to launder the proceeds of unlawful activity was unsealed today.
The charges against Mr. Culver, Mr. Carty, and Progressive Consulting Technologies, Inc. stem from the sale of 15,000 Ncomputing devices to the Bibb County School District in 2012. Mr. Culver and Mr. Carty were arrested this morning and are scheduled to make their initial appearances in the United States District Court this afternoon.
Each of the charges against Mr. Culver, Mr. Carty, and Progressive Consulting Technologies, Inc. carry a maximum possible sentence of 20 years imprisonment. The fine on the conspiracy to launder the proceeds of unlawful activity carries a maximum fine of $500,000.00 or twice the value of the property involved in the transaction, whichever is greater. The other charges carry a maximum possible fine of $250,000.00 each.
A copy of the indictment is attached. The indictment is only an allegation of criminal conduct. Each person is presumed innocent until and unless proven guilty in a court of law.
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service. Assistant U.S. Attorneys Beth Howard and Danial Bennett are prosecuting the case for the Government with participation and cooperation of Special Assistant U.S. Attorney David McLaughlin from the Georgia Office of the Attorney General.
Illinois Man Sentenced on Counterfeit Securities Fraud ChargesRead the Press Release
St. Louis, MO – Scott Meherg, 36, Chicago, IL, was sentenced to 24 months in prison and ordered to pay restitution in the amount of $3,161.00 on charges involving his possession and use of counterfeit checks.
According to court documents, on four occasions in March 2015, Meherg used counterfeit checks to purchase merchandise at several antique malls located in Creve Coeur, Warson Woods, St. Peters, and South St. Louis County, Missouri. At the time of his arrest, the defendant had numerous active warrants for similar conduct in Illinois, Michigan, Iowa, Kentucky, and Wisconsin.
Meherg pled guilty in February to one count of counterfeit securities fraud and appeared today for sentencing before United States District Judge E. Richard Webber.
This case was investigated by the St. Louis County Police Department. Assistant United States Attorney Jennifer Roy handled the case for the U.S. Attorney’s Office.
###
I.T. system administrator sentenced for theft of proprietary information and illegal wiretappingRead the Press Release
Stole custom design products when he resigned and took information
to new job with a competitor
PRESS RELEASE
INDIANAPOLIS – The former information technology (IT) system administrator for an Indiana stainless steel fabrication company pleaded guilty and was sentenced today to serve eight months in prison for the theft of his former employer’s proprietary information and wiretapping its email communications.
U.S. Attorney Josh J. Minkler of the Southern District of Indiana, Special Agent in Charge Paul Dvorak of the U.S. Secret Service, Indianapolis Field Office, and Superintendent Douglas G. Carter of the Indiana State Police made the announcement.
“Companies have the right to keep their proprietary interests out of the hands of competitors,” said Minkler. “Those who choose to steal from their employer and then attempt to obstruct a criminal investigation will be held accountable.”
Benjamin Levi Cox, 34, of Nineveh, Indiana, pleaded guilty to one count of wire fraud and one count of interception of electronic communications and was sentenced by U.S. District Judge Sarah Evans Barker. In addition to his prison term, Cox was ordered to serve seven months of home confinement, two years of supervised release and ordered to pay $27,490 in restitution. He was also ordered to perform a further six months of unpaid community service.
According to admissions made in connection with his plea, Cox was formerly employed by Electric Metal Fab, Inc. (“EMF”), a stainless steel fabrication company in Nashville, Indiana. Cox worked as EMF’s IT system administrator and a designer for its computer-aided drafting (“CAD”) system, which EMF used to custom design each product. In or about March 2013, taking advantage of his system administrator privileges, Cox began covertly copying EMF’s entire computer system to an external hard drive. Over a period of three months, Cox repeatedly loaded all of EMF’s proprietary digital information – including thousands of files containing its CAD designs, financial data, sensitive personnel records, and operational and technical documents onto this external device.
As part of his plea, Cox admitted that when he resigned from EMF in June 2013, he took the hard drive containing the stolen EMF data and brought it with him to his new employer, a direct competitor of EMF. Cox then copied multiple files to the new employer’s computer and, among other things, altered the CAD designs to appear as if they had been created by the competitor. The doctored CAD designs were subsequently used by the competitor in obtaining over $45,000 in new contracts with customers that had previously been EMF clients.
Cox further admitted that before quitting EMF, he used his system administrator privileges to secretly configure EMF’s email account settings to auto-forward all of its email communications to two external email accounts he had registered. The intercepted emails included personal correspondence, private financial and legal information, and business dealings between EMF and its clients. After being questioned by investigators, Cox secretly deleted the contents of those email accounts to obstruct the investigation. These efforts were ultimately unsuccessful.
The Cybercrime and High Technology Section of the Indiana State Police and U.S. Secret Service investigated the case. Senior Counsel Aaron R. Cooper of the U.S. Department of Justice’s Criminal Division, Computer Crime and Intellectual Property Section (CCIPS), and Senior Litigation Counsel Steven D. DeBrota of the Southern District of Indiana prosecuted the case. The CCIPS Cybercrime Lab also provided assistance.
###
Hartford Man Sentenced to 34 Months in Federal Prison for Distributing CrackRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANDRE CARTAGENA, 29, of Hartford, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 34 months of imprisonment, followed by one year of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, this matter stems from joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department that targeted a drug trafficking organization operating in Hartford’s North End that was distributing crack and powder cocaine. The investigation revealed that David Gil-Grande, of Manchester, received shipments of cocaine, secreted in sealed coffee cans, from Puerto Rico. He then supplied the cocaine to Anthony Shelton, also known as “Pretty,” Gerard Brown, also known as “Goldie,” and others, who converted much of the cocaine into crack and distributed both forms of the drug in the area of Barbour Street in Hartford.
The investigation, which included court-authorized wiretaps, revealed that Brown supplied crack cocaine to CARTAGENA who then sold the drug to his own customers.
Twenty individuals were charged as a result of the investigation.
CARTAGENA has been detained since his arrest on February 2, 2016. On March 9, 2017, he pleaded guilty to one count of using a telephone to facilitate a drug trafficking felony.
CARTAGENA’s criminal history includes six narcotics-related convictions and convictions for assault and criminal mischief. He was on state probation while he engaged in the criminal conduct that resulted in this federal prosecution.
Gil-Grande, Shelton and Brown have pleaded guilty to related charges. On January 31, 2017, Gil-Grande was sentenced to 70 months of imprisonment. Shelton and Brown await sentencing.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which 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 and the Drug Enforcement Administration have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Gun Charges Added to Oxycodone CasesRead the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin announced that on May 23, 2017, a federal grand jury returned a five-count Superseding Indictment against Lee Hueckstaedt (age: 31) of Rhinelander containing charges related to distributing Oxycodone. On June 6, 2017, a federal grand jury returned a nine-count, Second Superseding Indictment that contained Oxycodone-related charges against seven individuals including Lance Bruette (age: 34) of Minocqua, Orvin Kay (age: 57) of Milwaukee, Frank Lawrence (age: 38) of Saint Germain, Mitchell Plantikow (age: 29) of Woodruff, Troy Plantikow (age: 52) of Woodruff and Lacey Stanick (age: 31) of Woodruff, and Serena Johnson (age: 34) of Lac Du Flambeau.
The Superseding Indictment against Lee Hueckstaedt added a charge of Conspiracy to Distribute Oxycodone in violation of 21 United States Code Section 846. It also added a charge of Possession of a Firearm in Furtherance of a Drug Trafficking Crime in violation of 18 United States Code 924(c). The nine-count, Second Superseding Indictment against the seven individuals only added one new charge against Lance Bruette for Possession of a Firearm in Furtherance of a Drug Trafficking Crime in violation of 18 United States Code 924(c). A conviction of 18 United States Code 924(c) carries a five-year mandatory minimum sentence.
According to the Criminal Complaint filed against Orvin Kay, certain members of the conspiracy who resided in Northern Wisconsin would drive to Milwaukee and pick up hundreds of Oxycodone 30 mg pills per week from Orvin Kay. They would then distribute those Oxycodone pills to individual users, as well as co-conspirators who would sell the pills to other individuals. The maximum penalty for all of the charges except for the violation of 18 United States Code 924(c) is 20 years in prison and a $1,000,000 fine. The maximum penalty for a violation of 18 United States Code 924(c) is life in prison and a $250,000 fine.
The following agencies are participating in the investigation: the Oneida County Sheriff’s Office; the Vilas County Sheriff’s Office; the Wisconsin Department of Justice - Division of Criminal Investigation; the Drug Enforcement Administration – Milwaukee (Tactical Diversion Squad); the Minocqua Police Department and the Rhinelander Police Department; and the Northcentral Drug Enforcement Group (“NORDEG”). The case is being prosecuted by Assistant United States Attorney Zachary J. Corey.
An indictment and a criminal complaint is only a charge and not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
# # # # #
For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Four Dominican Nationals Involved in Recent Drug Sweep Face Additional ChargesRead the Press Release
BOSTON – Four Dominican nationals, formerly residing in Lawrence, were charged today in a superseding indictment for their roles in a fentanyl, heroin and cocaine distribution ring disrupted by a federal drug sweep in Lawrence last month.
Ramon Gonzalez Nival, a/k/a Caballito, 40, and Robert Frett Sierra, a/k/a Chiquito, 46, were charged with illegal re-entry after deportation.
Julio Baez Gonzalez, a/k/a Manolo, 34, was charged with being an unlawful alien in possession of a firearm.
Santos Ruiz Nivar, a/k/a Tio, was charged with conspiracy to traffic heroin, cocaine and fentanyl.
On May 30, 2017, 30 individuals were arrested and charged on federal drug, gun and immigration offenses. Today’s superseding indictment brings the total number of individuals indicted to 31. The arrests were the culmination of a yearlong investigation, dubbed “Operation Bad Company,” aimed at attacking the distribution of fentanyl and heroin in the Lawrence area. The defendants are alleged to have controlled and managed a lucrative and sophisticated drug trafficking and distribution ring in the region.
The drug statute provides for a sentence no greater than 20 years in prison; the firearm statute provides for no greater than 10 years in prison; and the unlawful re-entry after deportation statute provides for no greater than 10 years in prison. The defendants are subject to deportation upon completion of their sentences. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement today. The DEA Cross Border Initiative (comprised of the DEA and the Andover, Haverhill, Lawrence, Lowell, and Wilmington Police Departments) and the Massachusetts State Police investigated the case. Assistant U.S. Attorney Susan Winkler of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Four Defendants Plead Guilty to Operating Marijuana Trafficking RingRead the Press Release
COLUMBUS, Ohio – Adrian A. Douglas, 48, of Columbus, pleaded guilty today in U.S. District Court to conspiracy to distribute more than 1,000 kilograms of marijuana and conspiracy to commit money laundering. Douglas led a Central Ohio marijuana trafficking ring that involved receiving UPS shipments of the drug from Las Vegas and mailing cash back to the supplier.
Douglas’s son, Justin A. Douglas, 28, as well as Joshua N. Barron, 28, previously pleaded guilty to the same two charges. Raymond Tillman, 42, previously pleaded guilty to conspiracy to distribute more than 1,000 kilograms of marijuana. All three men are also Columbus residents.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Columbus Police Chief Kim Jacobs and other members of the Ohio Organized Crime Commission’s Central Ohio Drug Enforcement task force announced the pleas entered into before U.S. District Judge Michael H Watson.
The Statement of Facts in this case details that between November 2015 and December 2016, investigators documented 264 packages sent via UPS from Las Vegas to Columbus. Those packages contained a total of more than 3,000 kilograms of marijuana.
Once co-conspirators distributed the marijuana in Central Ohio, they mailed cash back to the source of supply in Las Vegas. Investigators documented 41 packages shipped from Columbus to Las Vegas during the same timeframe.
For example, on December 7, 2016, an 18-pound package was shipped via UPS from Columbus to Las Vegas but was interdicted in Kentucky by law enforcement. The package contained more than $199,000 in cash.
On December 21, 2016, a series of search warrants were conducted at locations associated with the drug ring and turned up more than $331,000 in cash at Justin Douglas’s residence on Scioto Chase Blvd. An Additional $27,000 in cash was found at the residence of Adrian Douglas and more than $58,000 was seized from Raymond Tillman during a traffic stop.
Conspiracy to distribute more than 1,000 kilograms of marijuana is a crime punishable by a range of 10 years to life in prison and a potential maximum fine of $10 million. Conspiracy to commit money laundering carries a potential maximum of sentence of 20 years in prison and a possible fine of up to $500,000.
All four defendants were indicted in February.
U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation, DEA and Columbus Police, as well as Assistant United States Attorney Kevin Kelley, who is representing the United States in this case.
# # #
Fort Wayne Woman ChargedRead the Press Release
FORT WAYNE – The Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announced that Erin Clowser, age 34, of Fort Wayne, Indiana was charged via a federal criminal complaint with theft of US Mail, access device fraud and aggravate identity theft.
The criminal complaint alleges that on or about November 2016, the United States Postal Inspection Service began receiving complaints of mail theft from the 46845 zip code area. Clowser allegedly, took both mail that was delivered before it could be picked up by the respective owners and mail that was outgoing in boxes with the flags up before it could be picked up by postal carriers. Once the mail was taken, Clowser allegedly converted stolen checks for her own personal use. Clowser allegedly obtained a debit card belonging to another individual, and from March 2017 through April 2017, used that debit card to make unauthorized purchases and ATM withdrawals totaling over $50,000.
Clowser is scheduled for an initial appearance on these charges today before a United States District Court Magistrate Judge. .
The United States Attorney’s office emphasizes that a Complaint is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
These charges result from a joint investigation conducted by the United States Postal Inspection Service, the Federal Bureau of Investigation’s Fort Wayne Safe Streets Task Force, the Allen County Sheriff’s Department and the Indiana State Police. This case is being handled by Assistant United States Attorney Stacey R. Speith.
Any individuals or businesses located within the 46845 zip code that suspect that their mail may have stolen between November 2016 and April 2017 are urged to report such information to the Postal Inspection Service at 877-876-2455 or the FBI at 317-595-4000.
# # #
Fort Hall Man Sentenced to 30 Years in Prison for Second Degree MurderRead the Press Release
POCATELLO – Demetrius Anthony Gomez, 30, of Fort Hall, Idaho, was sentenced yesterday to 30 years in prison to be followed by five years of supervised released for second degree murder, Acting U.S. Attorney Rafael Gonzalez announced. Chief U.S. District Judge B. Lynn Winmill also ordered Gomez to pay a $5,000 fine.
On January 5, 2017, a jury found Gomez guilty of one count of second degree murder. Evidence at trial showed that on May 9, 2016, Gomez was at a residence along with some friends and family. At the residence, he shot and killed his cousin at close range with a sawed off shotgun. He did so deliberately, intentionally, and unprovoked. He then took steps to hide the body and conceal the murder from law enforcement.
According to Acting U.S. Attorney Rafael Gonzalez, “this case was a senseless and cowardly attack during a party. Our thoughts remain with the victim and his family. We hope that the severe sentence in this case serves as a deterrent to others and prevent more senseless violence in our community.” I commend the dedication and professionalism of the officers and detectives of the Fort Hall Police Department and agents of the Federal Bureau of Investigation, who investigated the case.” Gonzalez added, “this sentence should serve as an indication that the Fort Hall Police Department and the Federal Bureau of Investigation will do everything possible to keep the Fort Hall community a safe and peaceful place to live.”
The case was investigated by the Fort Hall Police Department and the Federal Bureau of Investigation.
Former Volunteer Firefighter Pleads Guilty to Concealing Cause of Grass FiresRead the Press Release
TOPEKA, KAN. - A former firefighter with the Kickapoo Volunteer Fire Department pleaded guilty Tuesday to concealing the fact that grass fires on the reservation were deliberately set, U.S. Attorney Tom Beall said today.
Arlene M. Negonsott, 35, Horton, Kan., pleaded guilty to one count of concealing a felony. In her plea, she admitted that she did not tell investigators what she knew when they interviewed her about a series of fires on the Kickapoo Reservation in Brown County. She knew that fire chief and co-defendant Stephen D. Ramirez, Jr., arranged for the fires to be set and billed the Bureau of Indian Affairs for the Kickapoo Fire Department’s work putting out the fires.
Sentencing will be set for a later date. She faces up to three years in federal prison and a fine up to $250,000.
Co-defendant Ramirez is awaiting trial. The U.S. Department of Interior – Office of Inspector General, the Kickapoo Tribal Police and the FBI investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Former Visium Portfolio Manager Stefan Lumiere Sentenced to 18 Months in Prison Following Conviction at Trial for Securities Mismarking SchemeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that STEFAN LUMIERE, a former portfolio manager at Visium Asset Management, L.P. (“Visium”), was sentenced to 18 months in prison in connection with his conviction following a jury trial for engaging in a securities mismarking scheme from 2011 to 2013. The jury convicted LUMIERE on securities and wire fraud charges relating to his mismarking of securities in a fixed-income hedge fund, which inflated the net asset value (“NAV”) of the fund and overstated the fund’s liquidity. LUMIERE was sentenced today by U.S. District Judge Jed S. Rakoff, who presided over the six-day jury trial.
Acting U.S. Attorney Joon H. Kim said: “As the evidence at trial established and as a jury unanimously found, Stefan Lumiere engaged in securities and wire fraud, routinely mismarking by millions of dollars the value of his book at Visium. For his greed-driven lies, Lumiere stands a convicted securities fraudster and has been sentenced to time in a federal prison.”
According to the allegations in the charging documents, evidence admitted at trial, court filings, and statements made in open court:
Visium managed hedge funds specializing in healthcare-related investments. One such fund operated from 2009 until September 2013 and invested primarily in debt instruments issued by healthcare companies (the “Credit Fund”).
From June 2011 through September 2013, LUMIERE and others participated in a scheme to defraud the Credit Fund’s investors and potential investors by deceptively mismarking each month the value of certain securities held by the Credit Fund. The objective of the scheme was two-fold: (1) to inflate the Credit Fund’s NAV; and (2) to mislead investors about the liquidity of the Credit Fund’s holdings (i.e., how actively traded the securities were). Visium assessed performance fees to be paid by investors each year based on the Credit Fund’s profits and losses. LUMIERE’s mismarking was in violation of Visium’s internal valuation procedures and contrary to Visium’s representations to investors. The effect of the scheme was to overstate the Credit Fund’s NAV, often by tens of millions of dollars as calculated at the end of each month, which resulted in higher payments to Visium, among other benefits. The effect of the scheme was also to deceive investors into believing that certain securities were properly categorized as Level II securities, that is, securities that fell within an intermediate level in terms of their liquidity, when, in fact, these securities were highly illiquid Level III investments.
LUMIERE and others accomplished these goals through two principal methods. First, LUMIERE and others solicited, obtained, and relied on false and fraudulent price quotes from employees of broker-dealers in order to improperly override prices calculated by the Credit Fund’s administrator and artificially inflate the Credit Fund’s NAV each month. For each month-end valuation, LUMIERE and others would begin by reviewing an inventory of the Credit Fund’s investments and proposed valuations prepared by the Credit Fund’s administrator and Visium’s back office. LUMIERE and others would then identify relatively illiquid securities and create a list reflecting the prices at which they wanted each security to be marked for month-end valuation purposes. That price was often significantly higher or lower than the price available from public price data. LUMIERE and others would then contact one or two “friendly” brokers and dictate price quotes that they needed. The brokers would then parrot back the price quotes, giving the price quotes the appearance that they had come from an independent broker, and thus were in compliance with the Credit Fund’s pricing methodology. The friendly brokers’ sham quotes were then submitted to Visium’s accounting department as purportedly independent bases for a security’s valuation, for the eventual submission to the Credit Fund’s administrator.
By obtaining these sham quotes, LUMIERE and others caused a number of the Credit Fund’s securities to be misclassified in order to mislead investors about the liquidity of the securities. Specifically, for a number of illiquid bonds, LUMIERE and others fraudulently caused Visium to assign a classification that led investors to believe that the bonds were relatively liquid, when in fact they were entirely illiquid. This was done contrary to disclosures to investors about the Credit Fund’s percentage of illiquid investments, in order to induce investors to invest in or keep their money in the Credit Fund.
Second, LUMIERE purchased additional quantities of certain securities – in which the Credit Fund had an established position – at a deceptively inflated price, markedly higher than the prevailing market was offering that security, in a practice known as “painting the tape.” The inflated price was then reported to Visium’s accounting department for NAV purposes. In both cases – the sham broker quotes and the inflated purchase prices – it was LUMIERE’s intent to increase the price of certain securities in order to inflate the Credit Fund’s month-end valuation.
* * *
As part of the sentence imposed today by Judge Rakoff, LUMIERE, 46, of New York, New York, was further sentenced to three years of supervised release and ordered to pay a fine of $1,000,000.
Mr. Kim praised the work of the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Ian McGinley, Damian Williams, and Joshua A. Naftalis are in charge of the prosecution.
Former Deere Employee Sentenced to More than Two Years in Prison for Wire Fraud, Money Laundering CrimesRead the Press Release
ROCK ISLAND, Ill. – Harvey Ulfers, 64, of Cedar Falls, Iowa, has been ordered to serve 33 months (2 years, 9 months) in federal prison for wire fraud and money laundering. U.S. District Judge Sara Darrow sentenced Ulfers late yesterday. In addition, Judge Darrow ordered Ulfers to pay a fine of $111,602 plus pay restitution in the amount of $259,132 to his former employer, the victim of his offenses. Ulfers was ordered to report to the federal Bureau of Prisons on July 17, 2017, to begin serving his sentence.
On Nov. 17, 2016, Ulfers pled guilty to the eight counts of the indictment which charged him with wire fraud, money laundering, and money laundering conspiracy. From about 2004 to January 2013, Ulfers defrauded his former employer, Deere & Company, headquartered in Moline, of at least $250,000. Using his position at Deere’s foundry facility in Waterloo, Iowa, Ulfers caused the creation and approval of fraudulent internal documents that allowed significantly undervalued scrap metal to leave the facility. Ulfers conspired with others to obtain the excess value of the scrap after it was sold at scrap yards like Alter Metal Recycling, using a third entity to launder the fraudulent proceeds and provide cash payments to Ulfers.
Ulfers’s co-conspirator, Patrick Williams, 47, of Cedar Falls, Iowa, a former employee of Alter Metal Recycling, pleaded guilty to money laundering conspiracy on April 14, 2016. Judge Darrow sentenced Williams on April 13, 2017, to 27 months in federal prison. Williams was also ordered to pay restitution in the amount of $259,132.97 to Deere & Company, jointly and severally with Ulfers.
The case was prosecuted by Assistant U.S. Attorneys Meredith DeCarlo and Donald Allegro, with Assistant U.S. Attorney Gail Noll assisting with recovery of restitution. The charges were investigated by the Internal Revenue Service Criminal Investigation Division and the Federal Bureau of Investigation. The matter initially came to light following internal investigations by Deere & Company and Alter Metal Recycling.
Former Chief Financial Officer of Arthrocare Corp. Pleads Guilty to Multimillion Dollar Securities Fraud SchemeRead the Press Release
A Texas man and former chief financial officer (CFO), pleaded guilty today to a multimillion dollar securitries fraud scheme.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Richard L. Durbin, Jr. of the Western District of Texas, and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division made the announcement.
Michael Gluk, 59, of Austin, Texas, pleaded guilty to one count of conspiracy to commit securities and wire fraud before U.S. Magistrate Judge Mark Lane of the Western District of Texas. A sentencing date has yet to be scheduled.
As part of his guilty plea, Gluk admitted that he conspired with others to falsely inflate ArthroCare’s sales and revenue through a series of end-of-quarter transactions involving ArthroCare’s distributors. He further admitted that he and other co-conspirators caused ArthroCare to file a Form 10-K for 2007 and Form 10-Q for the first quarter of 2008 with the U.S. Securities and Exchange Commission (SEC) that materially misrepresented ArthroCare’s quarterly and annual sales, revenues, expenses and earnings. As part of the plea, Gluk further admitted that he provided false testimony in proceedings before the SEC and in federal district court.
Gluk further admitted that he and others determined the type and amount of product to be shipped to distributors – notably ArthroCare’s largest distributor, DiscoCare Inc. – based on ArthroCare’s need to meet sales forecasts, rather than the distributors’ actual orders. Gluk and others then caused ArthroCare to “park” tens of millions of dollars worth of ArthroCare’s medical devices at its distributors at the end of each relevant quarter, he admitted. ArthroCare would then report these shipments as sales in its quarterly and annual filings at the time of the shipment, enabling the company to meet or exceed internal and external earnings forecasts, Gluk admitted.
In addition, Gluk admitted that DiscoCare agreed to accept shipment of approximately $37 million of product in exchange for substantial, upfront cash commissions, extended payment terms and the ability to return product, as well as other special conditions, allowing ArthroCare to falsely inflate its revenue by tens of millions of dollars. To conceal the fact that DiscoCare owed ArthroCare a substantial amount of money on the unused inventory, Gluk and others caused ArthroCare to acquire DiscoCare on Dec. 31, 2007, Gluk admitted.
In connection with the plea, Gluk acknowleged that between December 2005 and December 2008, ArthroCare’s shareholders held more than 25 million shares of ArthroCare stock. On July 21, 2008, after ArthroCare announced publicly that it would be restating its previously reported financial results from the third quarter of 2006 through the first quarter of 2008 to reflect the results of an internal investigation, the price of ArthroCare shares dropped from $40.03 to $23.21 per share. On Dec. 19, 2008, after ArthroCare announced publicly that it had identified accounting errors and possible irregularities in its revenue recognition practices going back to 2005, the price of ArthroCare shares dropped further, from $16.23 to $5.92 per share.
Gluk was charged along with co-defendant Michael Baker, ArthroCare’s former CEO, in an indictment unsealed on July 17, 2013. Baker is scheduled for trial on August 7, before U.S. District Judge Sam Sparks in the Western District of Texas.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI’s San Antonio Field Office. The case is being prosecuted by Securities and Financial Fraud Unit Chief Benjamin D. Singer, Assistant Chief Henry P. Van Dyck, and Trial Attorney Caitlin Cottingham of the Criminal Division’s Fraud Section. The Department recognizes the substantial assistance of the SEC.
Former Boise Man Pleads Guilty to Possession of Child PornographyRead the Press Release
BOISE – Nickolas James Parnell, 27, formerly of Boise, and currently residing in Medford, Oregon, pleaded guilty yesterday in United States District Court to possession of child pornography, Acting U.S. Attorney Rafael Gonzalez announced.
According to the plea agreement, in May of 2016, agents with the Federal Bureau of Investigation and the Idaho Internet Crimes Against Children Task Force served a search warrant on Parnell’s residence in Boise, Idaho, based upon evidence that Parnell had used a computer to access child pornography. Two laptop computers and two DVDs belonging to Parnell were seized. When agents examined the laptops and DVDs, they discovered 2,190 still images and three videos containing child pornography. In February of 2017, agents served another search warrant on Parnell’s residence in Boise, Idaho, based upon evidence that he was in possession of additional videos containing child pornography. Agents seized a laptop computer, and a forensic search of the computer revealed 3,393 saved images of child pornography, 13 videos containing child pornography, and 3,077 deleted images containing child pornography. In all, the National Center for Missing and Exploited Children identified 290 still images and one video contained known child pornography victims from identified series of child pornography.
Sentencing is set for September 1, 2017, before Chief U.S. District Judge B. Lynn Winmill. Possession of child pornography is punishable by up to 20 years imprisonment, a $250,000 fine, a term of supervised release of not less than five years and up to life, and a $5,000 special assessment. As part of his plea, Parnell also agreed to forfeit the computers and electronic storage devices used in the commission of the charged offense.
The case was investigated by the FBI and the Idaho Internet Crimes Against Children Task Force, and 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.”
Five Western Pennsylvania Residents Charged with Passing Counterfeit CashRead the Press Release
PITTSBURGH – Five residents of the Western District of Pennsylvania have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy and passing and uttering counterfeit money, Acting United States Attorney Soo C. Song announced today.
The four-count indictment named Bruce M. Charles, Jr. 22, of E. Pittsburgh, PA; Edward J. Botti, 32, of Turtle Creek, PA; Seleste M. Foster, 24, of Braddock, PA; Destiny S. Dayton, 21, of Duquesne, PA; and Shad McClelland, 31, of McKeesport, PA.
According to the indictment, between May 16, 2015 to June 12, 2015, Charles, Botti, Foster, Dayton, and McClelland conspired and passed counterfeit $100, $50, and $20 Federal Reserve Notes throughout the Western District of Pennsylvania.
With respect to Charles and Botti, the law provides for a maximum total sentence of 65 years in prison, a fine of $1,000,000 or both. With respect to Foster and Dayton, the law provides for a maximum total sentence of 45 years in prison, a fine of $750,000 or both. Finally, with respect to McClelland, the law provides for a maximum total sentence of 25 years in prison, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Five Excelsior Springs Men Plead Guilty to $4.3 Million Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that five Excelsior Springs, Mo., men pleaded guilty in federal court this week to their roles in a $4.3 million conspiracy to distribute large quantities of methamphetamine throughout Jackson, Clay, Ray, Clinton and Buchanan counties.
Marion Eugene Brammer, 53, and Jason Lee Kirtley,44, both of Excelsior Springs, pleaded guilty today in separate appearances before U.S. Magistrate Judge Robert E. Larsen. Co-defendants Jackie R. Love, 60, and William Dean Campbell, 36, both of Excelsior Springs, pleaded guilty on Tuesday, June 13, 2017. Co-defendant Steven Lee Schreier, Jr., 32, of Excelsior Springs, pleaded guilty on Monday, June 12, 2017.
By pleading guilty, Brammer, Kirtley, Love, Campbell and Schreier each admitted that he participated in conspiracy to distribute methamphetamine. They are the last of 26 defendants indicted in this case who have pleaded guilty; four of those convicted defendants have been sentenced.
In 2010, the Buchanan County Drug Strike Force and the DEA initiated an investigation into a drug-trafficking organization distributing methamphetamine in northwest Missouri and northeast Kansas. Jose Luis Ruiz-Salazar, 38, his brother, Gabriel Ruiz-Salazar, 34, and Gregory Bullock, 48, all of Kansas City, Mo., and Joshua K. Bowers, 33, of Polo, Mo., admitted that they were the primary sources that supplied co-conspirators with large amounts of methamphetamine during the conspiracy. Co-conspirators then distributed the methamphetamine throughout Jackson, Clay, Ray, Clinton and Buchanan counties in Missouri.
According to court documents, conspirators sold $4,359,600 worth of methamphetamine and heroin from 2010 to 2015. That estimate is based on a conservative street price of $1,200 for an ounce of 50 percent pure methamphetamine and the total conspiracy distribution of at least 100 kilograms of methamphetamine, and a conservative street price of $2,500 per ounce of heroin and an overall conspiracy distribution of approximately three pounds.
Brammer and Schreier each admitted that his involvement in the conspiracy was responsible for the distribution of more than 1500 grams of methamphetamine.
Kirtley, Love and Campbell each admitted that his involvement in the conspiracy was responsible for the distribution of more than 500 grams of methamphetamine.
In addition to Jose Ruiz-Salazar, Gabriel Ruiz-Salazar, Bullock and Bowers, co-defendants who have pleaded guilty include Bryan D. Carroll, 28, and Caleb Dean Hayes, 36, both of Kansas City, Mo.; Sabrena Lynn Morgan, 40, Ryan A. Battagler, 38, and Elgin Eugene Dothage, 41, all of Kearney, Mo.; Paula Rae Scott, 48, Anthony Ray Stevenson, 45, and Rodney Earl King, 51, all of Excelsior Springs, Mo., Jason Daniel Davis, 43, of Liberty, Mo.; Taylor Lee Syas, 25, of Polo, Mo.; Brian Michael Bowers, 34, of Richmond, Mo.; Franklin Charles Carter, 28, of Grandview, Mo., and Jay Harrison Lee Carder, 31, of Cowgill, Mo.
Four defendants have been sentenced after pleading guilty to their roles in the conspiracy to distribute methamphetamine. Gary Dewayne Brown, 37, of Cowgill, was sentenced to 12 years and seven months in federal prison without parole. Ronald Louis Roberts, 54, of Lathrop, Mo., was sentenced to 10 years and six months in federal prison without parole. Brittney James Brehm, 38, of Bland, Mo., was sentenced to six years and 11 months in federal prison without parole. Darin Gene Berry, 51, of Excelsior Springs, was sentenced to four years and five months in federal prison without parole.
Under federal statutes, Brammer, Kirtley, Love, Campbell and Schreier are each subject to a sentence of up to 20 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.
This case is being prosecuted by Assistant U.S. Attorneys Bruce Rhoades, Bradley K. Kavanaugh and Matt Moeder. It was investigated by the Clay County Drug Task Force, the Missouri State Highway Patrol, the Caldwell County, Mo., Sheriff’s Department, the Buchanan County Drug Strike Force and the DEA.
Federal Jury Convicts San Antonio Man for Scheme to Defraud the Veterans Affairs Disability Compensation ProgramRead the Press Release
Mack Cole, Jr., age 54, of San Antonio, faces federal prison time after a jury this afternoon found him guilty of scheming to defraud the Department of Veterans Affairs Disability Compensation Program announced United States Attorney Richard L. Durbin, Jr.
In San Antonio this afternoon, a federal jury convicted Cole on four counts of health care fraud and two counts of making false statements in a matter involving a health care benefit program.
Evidence presented during trial revealed that Cole, who was deployed with the Kansas Army National Guard to Kosovo in 2004, injured his lower back in a state-side training accident prior to the deployment.
In 2006, Cole was granted military retirement and was later deemed eligible for monthly benefits as a retired disabled veteran. The jury found that Cole misrepresented the severity of his service-connected injuries in order to collect a higher level of benefits, adaptations to his residence, and extensive durable medical equipment. Special Agents of the Department of Veterans Affairs Office of Inspector General (VA OIG) conducted video surveillance of Cole, who represented to his VA physicians that he was not able to walk. Over the course of several months, Special Agents of the VA OIG recorded video of Cole mowing his front lawn, walking around his driveway and lawn without assistance, and otherwise demonstrating that he had the ability to walk.
Cole remains on bond pending sentencing scheduled for September 21, 2017, before Chief United States District Judge Orlando L. Garcia. Cole faces up to ten years imprisonment on each of the health care fraud convictions, and up to five years on each of the false statement convictions.
Special Agents with the VA OIG investigated this case. Assistant United States Attorney Bud Paulissen is prosecuting this case on behalf of the Government.
Erie Man Charged with Violating Federal Laws Relating to the Sexual Exploitation of ChildrenRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Soo C. Song announced today.
The three-count indictment named Nathan Richard Kosmatine, 30, as the sole defendant.
According to the indictment presented to the court, Kosmatine distributed, received and possessed computer images and movies depicting minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The law provides for a maximum total sentence of 60 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Erie Man Charged with Producing, Possessing Child PornographyRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Soo C. Song announced today.
The nine-count indictment named Michael Robert Heinrich, 66, as the sole defendant.
According to the indictment presented to the court, Heinrich took sexually explicit photos of two minor victims who were under the age of five. Heinrich also possessed computer images depicting other minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The law provides for a maximum total sentence of 260 years in prison, a fine of $2,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Epsom Man Sentenced to 70 Month on Federal Firearms ChargeRead the Press Release
CONCORD, N.H. - Acting United States Attorney John J. Farley announced that Christopher Barker, 24, of Epsom, New Hampshire, was sentenced on Tuesday to serve 70 months in federal prison for being a previously convicted felon in possession of a firearm.
According to pleadings filed with the court and statements made at the sentencing hearing, Concord Police conducting an undercover operation arranged to purchase a firearm from Barker in March 2016. When Barker arrived at the deal, Concord Police arrested him, seizing two firearms from his vehicle. At the time, Barker was prohibited from possessing any firearms as a result of a previous felony conviction.
Barker pleaded guilty to the charges on February 28, 2017. After being released from prison, he will be on supervised release for three years.
“The United States Attorney’s Office is committed to working with our law enforcement partners in order to prevent violence and to keep firearms out of the hands of criminals.” Acting U.S. Attorney Farley said. “I commend the work of the Concord Police and the other law enforcement agencies in this case. Their hard work helps to keep our community safe.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, and by the Police Departments of Concord and Lebanon, New Hampshire, and Hartford, Vermont, as well as by the Merrimack County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorneys Georgiana Konesky and Shane Kelbley.
###
Dominican Republic Man Pleads Guilty to Possession of a Firearm by an Illegal AlienRead the Press Release
St. Thomas, USVI – Cristian Lopez-Moncion, 35, of the Dominican Republic, pleaded guilty today in federal court on St. Thomas to possession of a firearm by an illegal alien, Acting United States Attorney Joycelyn Hewlett announced.
According to the plea agreement filed with the court, on August 6, 2016, the Virgin Islands Police Department (VIPD) responded to Main Street, after a report of shots fired. Lopez-Moncion admitted that he was in possession of a Glock 9mm firearm. The Glock was examined and determined that it had been modified to operate as a fully automatic firearm. It was determined that Lopez-Moncion is not a legal resident of the United States and is not licensed to possess a firearm in the Virgin Islands.
Lopez-Moncion faces a maximum sentence of 10 years in prison and a $250,000 fine. A sentencing date has been set for October 13, 2017.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the VIPD. The case was prosecuted by Assistant U.S. Attorney Sigrid M. Tejo-Sprotte.
Dayton Men Sentenced for Dealing Heroin, Fentanyl that Resulted in User DeathsRead the Press Release
DAYTON – Antonio J. Spiva, 25, and Charles M. McBeath, 33, both of Dayton, were sentenced in U.S. District Court this week for conspiracy to possess with intent to distribute heroin and fentanyl that resulted in the death of at least two individuals. Each defendant pleaded guilty in January.
Spiva was sentenced yesterday to 180 months in prison and McBeath was sentenced this afternoon to 198 months in prison.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Montgomery County Sheriff Phil Plummer, Dayton Police Chief Richard Biehl and other members of the Heroin Eradication Apprehension Team (HEAT) announced the sentences handed down by U.S. District Judge Thomas M. Rose.
Both men were originally indicted by a federal grand jury in December 2015 and have remained in custody since. According to court documents, through late May 2015, McBeath and Spiva distributed heroin, fentanyl and crack cocaine while maintaining operations at residences located on E. Fifth Street, S. Torrence Street and S. Horton Street, all in Dayton. Their distribution of fentanyl resulted in the overdose death of two individuals and the non-fatal overdose of at least three others.
“The sentences handed down in this case should send a clear message about how seriously we are pursuing, and will continue to pursue, the dealers plaguing our communities with opiates,” U.S. Attorney Glassman said.
“Trafficking in opiates is selling death to those that are vulnerable,” Dayton Police Chief Richard Biehl said. “Justice demands accountability for the harm and death that results from these actions.”
“Federal prosecutions that target individuals who distribute heroin and/or synthetic opioids which result in overdose deaths are a top priority of the Drug Enforcement Administration,” Assistant Special Agent in Charge Michael K. Bulgrin said. “This investigation is a great example of how strong partnerships and cooperative efforts among federal, state, and local law enforcement agencies are holding such individuals responsible for the harm they bring to the community.”
The HEAT initiative was announced in May 2015 and includes the U.S. Attorney’s Office, DEA, Dayton Police Department, Montgomery County Sheriff’s Office, Montgomery County Coroner’s Office, and the Miami Valley Regional Crime Laboratory. The intent of the task force is to prosecute heroin and fentanyl suppliers who contribute to both fatal and non-fatal overdoses in Montgomery County.
U.S. Attorney Glassman commended the investigation of this case by HEAT, and Assistant U.S. Attorneys Sheila G. Lafferty and Dominick S. Gerace, who are prosecuting the case.
# # #
Convicted Felon Sentenced to Federal Prison for 3rd Firearm OffenseRead the Press Release
PROVIDENCE, R.I. – Christopher Rene, 26, of Providence, was sentenced on Tuesday to 72 months in federal prison and 3 years supervised release for being a felon in possession of a firearm and for violating the terms of his supervised release on a previous conviction in federal court for being a felon in possession of a firearm.
Rene pleaded guilty on November 22, 2016 to being a felon in possession of a firearm and to violating the terms of supervised release. He was arrested by Providence Police on February 4, 2016. It was the third arrest of Rene on firearm charges.
Rene’s sentence, imposed by U.S. District Court Judge John J. McConnell, Jr., is announced by Acting United States Attorney Stephen G. Dambruch, Providence Police Chief Colonel Hugh T. Clements, Jr., and Harold H. Shaw, Special Agent in Charge of the Boston Division of the FBI.
According to court records, in August 2009, Rene was convicted in Rhode Island state court on drug trafficking and firearm charges and sentenced to 7 years in prison, 6 months to serve and 78 months of probation. In a separate matter, in March 2011, Rene was convicted in federal court of being a felon in possession of a firearm. He was sentenced to 46 months in prison and 3 years of supervised release.
On February 10, 2015, while on federal supervised release and state probation, Rene was among 35 individuals arrested during a series of investigations into violent crimes in Providence as part of the Rhode Island Violent Crime Initiative. Based on information gathered by law enforcement, Rene was arrested for violating the terms of his federal supervised release. He was sentenced to six months in federal prison and an additional 30 months of federal supervised release.
According to state court documents, in February 2016, during an investigation into drug trafficking in Providence, Providence Police seized 41 bags of crack cocaine and .40 caliber handgun from vehicles accessed by Rene. Rene was detained shortly after he exited one vehicle and placed the handgun in the second vehicle.
The most recent case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
The matter was investigated by the Providence Police Department with the assistance of the FBI’s Safe Streets Task Force.
###
Convicted Felon Sentenced to 8 Years in Federal Prison for Illegally Possessing Handgun and Using It to Intimidate Ex-GirlfriendRead the Press Release
CHICAGO — A federal judge has sentenced a convicted felon to eight years in prison for illegally possessing a handgun, which he used to intimidate his ex-girlfriend.
JOSEPH RILEY, 44, of Chicago, possessed the Sig Sauer P229 .40-caliber pistol on at least four occasions in 2015, according to his written plea agreement. During one of those occasions, Riley brandished the gun and used it to intimidate his ex-girlfriend, according to the plea agreement.
Riley was not lawfully allowed to possess the gun because he had prior felony convictions, including two felonies for illegally possessing firearms.
Riley pleaded guilty earlier this year to one count of illegal possession of a firearm by a felon. U.S. District Judge John J. Tharp Jr. on Tuesday imposed the 96-month sentence in federal court in Chicago.
The sentence was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and Celinez Nunez, Special Agent in Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The Chicago Police Department provided valuable assistance.
“Each instance in which defendant possessed the gun was dangerous and threatening,” Assistant U.S. Attorney Matthew L. Kutcher argued in the government’s sentencing memorandum. The government’s memorandum noted Riley’s prior firearm convictions and the seriousness of the current offense, and it requested that the Court impose the 96-month sentence, which was significantly above the advisory guideline range.
Connecticut U.S. Attorney's Office Celebrates Annual U.S. Attorney's AwardsRead the Press Release
The United States Attorney’s Office for the District of Connecticut hosted its annual United States Attorney’s Office Law Enforcement Awards Ceremony this morning in New Haven. The ceremony at the City of New Haven’s aldermanic chambers recognized more than 160 federal agents, police officers and community members for their investigative efforts and other contributions to approximately 30 significant federal criminal prosecutions and civil cases in Connecticut.
The highlighted cases demonstrate the broad variety of work performed by local, state and federal law enforcement agencies in Connecticut. Approximately 60 of the award recipients are members of local police departments from across Connecticut.
“Today, we proudly recognize our law enforcement partners and community members for their exceptional achievements this past year and their courageous dedication to ensuring the safety and security of our communities,” said U.S. Attorney Deirdre M. Daly. “These award recipients have served the people of Connecticut and our nation with distinction and integrity, and it has been my sincere honor to work with them in the cause of justice.”
Several special awards were presented to law enforcement officers, state employees and community members during the ceremony.
The U.S. Attorney’s Award for Outstanding Investigator was presented to Sergeant Karl Jacobson of the New Haven Police Department for his many years as an exceptional law enforcement officer, his work on behalf of Project Longevity and his command of the NHPD’s Intelligence Unit.
The U.S. Attorney’s Award for Outstanding Partnership was presented to the Connecticut Forensic Science Laboratory, under the leadership of Dr. Guy Vallaro, for its critical assistance in numerous firearm, drug and violent crime investigations.
The U.S. Attorney’s Outstanding Community Award was presented to Amarjit Singh, Swaranjit Singh Khalsa and Maninder Arora, members of the Sikh community who have volunteered hundreds of hours to Department of Justice cultural awareness trainings for police officers across the state.
U.S. Attorney’s Outstanding Task Force Officer Awards were presented to Detective Matthew Greenstein of the Connecticut State Police, Detectives Josh Lewis and Abhilash Pillai of the Hartford Police Department, Officer Brian McPadden of the Shelton Police Department, Detective Michael Chaves of the Monroe Police Department, and Officer Jeffrey Poulin of the Wethersfield Police Department.
The Civil Division Unit Award was presented to the attorneys and staff of the State of Connecticut’s Office of Protection and Advocacy for their work to ensure that people with disabilities have equal access to public facilities and programs, educational opportunities, hospitals, employment, voting, recreational activities, housing and financial institutions.
The National Security and Major Crimes Unit Award was presented to Special Agent Wendy Bowersox of the FBI’s Violent Crimes Against Children Squad for her dedicated investigative work in child exploitation and sex trafficking cases.
The Financial Fraud and Public Corruption Unit Award was presented to FBI Special Agent Jeff Waterman for his exceptional work on significant public corruption investigations since 2009.
The Violent Crimes and Narcotics Unit Award was presented to the U.S. Attorney’s Office Heroin Education Action Team (HEAT), notably 12 HEAT participants who have had a child or other family member die from an opioid overdose. During the 2016-2017 school year, HEAT delivered opioid awareness presentations that reached more than 20,000 high school and middle school students across Connecticut. They also traveled to cities and towns throughout the State for evening presentations to parents and other community members concerned about the opioid epidemic and the dangers of prescription pill abuse.
The U.S. Attorney’s Office is charged with enforcing federal criminal laws in Connecticut and representing the federal government in civil litigation. The Office is composed of approximately 63 Assistant U.S. Attorneys and approximately 52 staff members at offices in New Haven, Hartford and Bridgeport.
Columbia County Man Indicted for Forced Labor and Theft of Social Security BenefitsRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of a superseding indictment charging Guarino Edwards Broccoli, a/k/a Gary Broccoli, a/k/a Gary Edwards (53, Fort White), with three counts of theft of Social Security benefits and one count of forced labor with aggravated sexual abuse. If convicted, he faces a maximum penalty of 10 years’ imprisonment per count for the benefit theft offenses, and up to life in prison for the forced labor charge. The indictment also notifies Broccoli that the United States intends to forfeit his residence and $284,278, representing the proceeds received from the theft of Social Security benefits.
According to the
superseding indictment , Broccoli is charged with theft of child auxiliary benefits for two minor children and theft of disability benefits. He is also charged with knowingly providing and obtaining the services of a female victim by means of force and threats of force, causing her to believe that if she did not perform such labor and services she would suffer serious harm. It is also alleged that this offense included aggravated sexual abuse.An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Social Security Administration Office of the Inspector General, the Department of the Treasury Office of Inspector General, the Florida Department of Law Enforcement, the Department of Health and Human Services Office of Inspector General, the U.S. Secret Service, the Columbia County Sheriff’s Office, and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Ashley Washington.
This investigation is ongoing. The U.S. Attorney’s Office is seeking other potential victims related to this individual and/or the location listed in this indictment. Anyone with additional information is encouraged to contact the FBI -Jacksonville Field Office at 904-248-7000.
Clifton Park Woman Indicted for Social Security Number Fraud SchemeRead the Press Release
ALBANY, NEW YORK – Kristin M. Vargas, age 33, of Clifton Park, New York, was arraigned today on a 9-count indictment charging her with using and selling stolen social security numbers.
The announcement was made by United States Attorney Richard S. Hartunian; Patricia Tarasca, Special Agent in Charge of the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General, New York Region; and John F. Grasso, Special Agent in Charge of the Social Security Administration (SSA) Office of the Inspector General, New York Field Office.
The indictment charges Vargas with conspiracy to commit wire fraud, making false statements in loan and credit applications, and misusing social security numbers. The indictment alleges that in 2013 and 2014, Vargas obtained and sold stolen social security numbers (SSNs) over the internet. Vargas advertised these stolen SSNs as “credit profile numbers” and encouraged her customers to use these SSNs in place of their own on credit and loan applications as a means to escape negative credit histories. The indictment further alleges that Vargas used stolen SSNs herself on applications for credit.
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
Vargas faces up to 20 years in prison, up to 3 years of post-imprisonment supervised release and a maximum $250,000 fine if convicted on all counts of the indictment. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
Vargas was arraigned today before United States Magistrate Judge Christian F. Hummel. She was released with conditions pending a trial before Senior United States District Judge Thomas J. McAvoy.
This case is being investigated by the Offices of Inspector General of the FDIC and SSA, and is being prosecuted by Special Assistant U.S. Attorney Jason W. White.
Chyanna Marie Camacho Sentenced to Prison in Ice Trafficking CaseRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant CHYANNA MARIE CAMACHO, age 40 from Dededo, was sentenced today in District Court to a 70-month term of imprisonment for Attempted Possession of Methamphetamine with Intent to Distribute. The Court also ordered three years of supervised release following imprisonment, 75 hours of community service, and a mandatory $100 assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On August 11, 2016, CAMACHO pled guilty to an Indictment charging her with Attempted Possession of Methamphetamine with Intent to Distribute, in violation of 21 U.S.C. §§ 846 and 841(a)(1). The investigation revealed that CAMACHO and other individuals agreed to use the mail system to distribute large quantities of methamphetamine on Guam. On June 28, 2016, federal agents seized a U.S. Postal Service package that concealed over 78.7 grams of methamphetamine. Laboratory tests later determined that the drugs were 98% pure. The investigation further revealed that CAMACHO arranged to have the drugs sent to her in Guam from Bremerton, Washington.
The U.S. Postal Inspection Service, the Drug Enforcement Administration, and the Department of Homeland Security, Homeland Security Investigations conducted the investigation. The case was prosecuted by Rosetta San Nicolas, Assistant United States Attorney for the District of Guam.
Cheyenne County Man Pleads Guilty to Producing Child PornographyRead the Press Release
WICHITA, KAN. – A Cheyenne County man pleaded guilty Wednesday to producing child pornography, U.S. Attorney Tom Beall said.
Brett Nolan Cico, 31, St. Francis, Kan., pleaded guilty as charged to three counts of producing child pornography and three counts of sexual exploitation of a minor while registered as a sex offender. Two of the victims were 14 years old and the other victim was 15 years old.
Sentencing is set for Sept. 11. He faces a penalty of not less than 15 years and not more than 30 years on each production count and 10 years (consecutive) on the other counts. Beall commended the Kansas Bureau of Investigation, Homeland Security Investigations and Assistant U.S. Attorney Jason Hart for their work on the case.
Cherokee County Man Sentenced to 15 Years for Drug Trafficking ViolationsRead the Press Release
TYLER, Texas - A 41-year-old Jacksonville, 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.
Abdul Kariem Lugman pleaded guilty on Jan. 12, 2017, to possession with intent to distribute approximately 24 grams of cocaine and was sentenced to 180 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, on Dec. 21, 2015, law enforcement officers responded to a complaint of suspected drug dealing at the Home Place Inn in Jacksonville. As deputies approached the reported room, they observed the door was open and Lugman could be seen sitting in a chair with a small white rock-like substance in his hand near a digital scale. Lugman rushed towards the open door and was taken into custody. A search warrant was executed at the hotel room and officers discovered crack cocaine, cash, digital scales, a police scanner, firearms and other drugs and drug paraphernalia.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Cherokee County Sheriff’s Office, Jacksonville Police Department, and Texas Department of Public Safety – Law Enforcement Division. This case was prosecuted by Assistant U.S. Attorney Jim Noble.
Canadian Man Pleads Guilty to Conspiring to Defraud the United States and Steal Government FundsRead the Press Release
A Canadian man pleaded guilty today in Rochester, New York to conspiring to defraud the United States and commit theft of government funds, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney James P. Kennedy Jr. for the Western District of New York.
According to documents filed with the court, Timothy Johnston, 36, of Calgary, Alberta, Canada, along with other Canadian citizens, participated in a scheme to file fraudulent claims for refund with the Internal Revenue Service (IRS). In March 2009, Johnston filed a fraudulent nonresident alien income tax return seeking a refund of $642,947.26. On this return, Johnston falsely claimed that the requested refund represented the amount of income taxes that had been withheld and paid to the IRS on his behalf. After the IRS issued the refund to Johnston, he entered the United States and opened a bank account in Rochester, New York to deposit the fraudulently obtained check. Between August 2009 and December 2011, Johnston caused funds to be transferred from this account to a bank account in Canada and accounts in the United States in the names of his co-conspirators.
U.S. District Judge Frank P. Geraci Jr. of the Western District of New York scheduled sentencing for Sept. 12. Johnston faces a statutory maximum sentence of five years in prison, a period of supervised release and monetary penalties. As part of his plea agreement, Johnston agreed to pay restitution to the IRS in the amount of $642,947.26.
Johnston is the third Canadian citizen to be convicted for his role in this scheme. In January 2016, Kevin Cyster of Burlington, Ontario, was sentenced to 135 months in prison after a jury convicted him of conspiring to defraud the United States and commit theft of government funds, making a false claim against the United States and transferring stolen money in foreign commerce. In June 2014, Renee Jarvis, also of Ontario, pleaded guilty to conspiring to defraud the United States and commit theft of government funds. She is awaiting sentencing.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Kennedy thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Melissa S. Siskind and Thomas F. Koelbl of the Tax Division, and Assistant U.S. Attorney John Field of the Western District of New York, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Canadian Man Pleads Guilty to Conspiring to Defraud the United States and Steal Government FundsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, NY, – Acting U.S. Attorney James P. Kennedy, Jr. and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division announced today that Timothy Johnston, 36, of Calgary, Alberta, Canada, pleaded guilty to conspiring to defraud the United States and commit theft of government funds before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of five years in prison. As part of his plea agreement, Johnston agreed to pay restitution to the IRS in the amount of $642,947.26.
According to Assistant U.S. Attorney John J. Field and Trial Attorneys Melissa S. Siskind and Thomas F. Koelbl of the Tax Division, who are handling the case, the defendant, along with other Canadian citizens, participated in a scheme to file fraudulent claims for refund with the Internal Revenue Service (IRS). In March 2009, Johnston filed a fraudulent nonresident alien income tax return seeking a refund of $642,947.26. On this return, Johnston falsely claimed that the requested refund represented the amount of income taxes that had been withheld and paid to the IRS on his behalf. After the IRS issued the refund to Johnston, he entered the United States and opened a bank account in Rochester, NY to deposit the fraudulently obtained check. Between August 2009 and December 2011, Johnston caused funds to be transferred from this account to a bank account in Canada and accounts in the United States in the names of his co-conspirators.
Johnston is the third Canadian citizen to be convicted for his role in this scheme. In January 2016, Kevin Cyster of Burlington, Ontario, was sentenced to 135 months in prison after a jury convicted him of conspiring to defraud the United States and commit theft of government funds, making a false claim against the United States and transferring stolen money in foreign commerce. In June 2014, Renee Jarvis, also of Ontario, pleaded guilty to conspiring to defraud the United States and commit theft of government funds and is awaiting sentencing.
The plea is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge James D. Robnett, New York Field Office.
Sentencing is scheduled for September 12, 2017, at 3:00 p.m. before Judge Geraci.
Camden Man Sentenced to 210 Months in Federal Prison for Drug TraffickingRead the Press Release
El Dorado, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Christopher J. Turner, aka Tank, age 41, of Camden, was sentenced yesterday to 210 months in federal prison followed by three years of supervised release on two counts of Distribution of Crack Cocaine. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in El Dorado.
According to court records, in 2014 the Camden Police Department, the 14th Judicial Drug Task Force, and the FBI were investigating drug trafficking in the Camden area. With the help of confidential informants, investigators were able to conduct two controlled purchases from Turner in the Spring of 2014. Turner was named in a four-count federal indictment in July of 2015 and pled guilty to two charges of Distribution of Cocaine Base in April of 2016.
At sentencing, the District Court found that Turner conspired with others who obtained crack cocaine from Little Rock for distribution in the Camden area. The Court determined that under the Sentencing Guidelines, Turner was responsible for the distribution of over 20 kilograms or 44 pounds of crack cocaine over a three-year period from 2012 through 2015. In arriving at a sentence, the Court also took into account Turner’s prior felony convictions for Conspiracy to Distribute Controlled Substances, Forgery, and Sexual Abuse in the First Degree.
The Federal Bureau of Investigation, the Camden Police Department, and the 13th Judicial Drug Task Force investigated the case. Assistant United States Attorneys Ben Wulff and Graham Jones prosecuted the case for the United States.
* * * E N D * * *
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Buxton Man Sentenced to 20 Years on Drug and Firearms Trafficking ChargesRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Dale Pinkham, 57, of Buxton, Maine, was sentenced yesterday in U.S. District Court in Portland to 20 years in prison following convictions for Conspiracy to Distribute Heroin, Conspiracy to Possess Stolen Firearms and Attempted Witness Tampering.
co-conspirators, Dale M. Pinkham Jr., 26, Raymond T. Pinkham, 23, and Robert C. Bean-Pinkham, 21, also of Buxton, Maine, pled guilty and were sentenced by the Court last year. In April 2016, Robert Bean-Pinkham was sentenced to 40 months in prison for conspiring to possess and possessing stolen firearms. That same month Dale Pinkham Jr. was sentenced to 64 months in prison for conspiring to distribute heroin, conspiring to possess stolen firearms and possessing firearms as a prohibited person. In May 2016, Raymond Pinkham was sentenced to 52 months in prison for conspiring to possess and possessing stolen firearms.
According to court records, from around November 2012 until November 2014, Pinkham conspired with members of his family and others to distribute heroin. Pinkham traveled with Dale Pinkham Jr. to obtain heroin from a source in the Lawrence, Massachusetts area. On December 6, 2013, a search warrant executed at the Pinkhams’ residence in Buxton resulted in the seizure of about 20 grams of heroin and numerous firearms. Agents also recovered a stolen firearm from a vehicle operated by Raymond Pinkham. On October 11, 2014, a search warrant executed at the Pinkhams’ Buxton residence resulted in the seizure of seven stolen firearms. In November 2014, law enforcement agents recovered 11 additional stolen firearms possessed by the co-conspirators. The Court found that between May 2013 and September 2014, Pinkham was distributing no less than 200 grams of heroin per month. The Court also found that Pinkham encouraged his heroin customers to commit thefts and burglaries in order to obtain valuable items to trade for heroin, including firearms, electronics and building materials. Pinkham also traded firearms to his Massachusetts supplier in exchange for heroin.
Pinkham was arrested on October 11, 2014, and has remained in state or federal custody since that date. While incarcerated, the Court found, Pinkham directed family members and co-conspirators to relocate stolen firearms from the Buxton residence to avoid their recovery by law enforcement. Writing from jail, Pinkham directed family members to locate and threaten suspected government witnesses, provide false information to law enforcement, and contact his heroin source in Massachusetts in an effort to perpetuate the drug trafficking conspiracy.
The case was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the Maine State Police, with assistance from the Maine Drug Enforcement Agency, the York and Cumberland County Sheriff’s Offices, the Buxton Police Department, and the Office of the Maine Attorney General. This case was investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Apopka Resident Sentenced to More Than 15 Years for Multiple Gun and Drug ChargesRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron today sentenced Jesse B. Ingram, Jr. (35, Apopka) to 15 years and 5 months in federal prison for being a felon in possession of a firearm, attempting to possess with the intent to distribute a controlled substance, and possessing a firearm in furtherance of a drug trafficking crime. He pleaded guilty on March 29, 2017.
According to court documents, Ingram possessed a firearm while attempting to distribute a substance that he believed was heroin. As a previously convicted felon, he is prohibited from carrying a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Orange County Sheriff’s Office, and the Apopka Police Department. It was prosecuted by Assistant United States Attorney Sean P. Shecter.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Albuquerque Woman Sentenced for Harboring Escaped FelonRead the Press Release
ALBUQUERQUE – Colleen Calamia, 38, of Albuquerque, N.M., was sentenced today in federal court to 12 months and 21 days in prison, which she has already served, followed by three years of supervised release for harboring and concealing a federal fugitive. The sentence was announced by Acting U.S. Attorney James D. Tierney and U.S. Marshal Conrad E. Candelaria.
Calamia was arrested in May 2016, on a criminal complaint charging her with harboring her husband, Mario Montoya, 31, after he absconded from a halfway house in Albuquerque on May 20, 2016. Court records reflect that Montoya, who was under indictment for being a felon in possession of a firearm and theft of mail, was released from federal custody on an order requiring him to reside in an Albuquerque-area halfway house and to comply with other conditions. According to the complaint, Montoya violated the conditions of his release on May 20, 2016, by absconding from the halfway house and violating other release conditions. Montoya fled from the halfway house in a black sport utility vehicle.
On May 20, 2016, the court issued an emergency warrant authorizing Montoya’s arrest for violating his release conditions. According to the criminal complaint, on May 24, 2016, the U.S. Marshals Service (USMS) learned that Montoya was frequenting a residence located at 312 Western Skies (the residence) in Albuquerque. While conducting surveillance near the residence, USMS Deputies and Task Force officers allegedly observed Calamia driving a black Escalade that parked in front of the residence. They then observed Calamia and Montoya exit the vehicle and move objects from the vehicle and into the residence.
According to the complaint, Calamia then left the residence in the black Escalade and USMS Deputies executed a traffic stop on her vehicle. When the Deputies questioned Calamia about Montoya’s whereabouts, she told them that Montoya was alone in the residence. When a USMS arrest team attempted to serve the arrest warrant on Montoya, he fired upon the deputies, initiating an exchange of gunfire. After the arrest team was able to retreat to a safe location, a second team later entered the residence. The second team found Montoya in a closet; he had been struck in the exchange of gunfire and was dead.
Calamia was subsequently indicted on June 14, 2016, and charged with aiding and abetting an escape of a convicted felon on May 20, 2016, and concealing a person from arrest on May 24, 2016. On Nov. 7, 2016, Calamia pled guilty to aiding and abetting an escape and admitted that on May 20, 2016, she aided and abetted the escape of Montoya from an Albuquerque-area halfway house.
The USMS investigated this case, which was prosecuted by Assistant U.S. Attorney Jacob A. Wishard. Mr. Wishard was also prosecuting the case against Montoya, which was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Postal Inspection Service.
Albany Man Sentenced to 54 Months in Connection with Heroin Overdose DeathRead the Press Release
ALBANY, NEW YORK – Ronald T. Showers, age 42, of Albany, was sentenced today to 54 months in prison, to be followed by 3 years of supervised release, for possessing and intending to distribute heroin that caused the death of a 19-year-old woman.
The announcement was made by United States Attorney Richard S. Hartunian and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Showers pled guilty in January 2017 to possessing while intending to distribute heroin. Showers admitted that on September 13, 2014, he hid the heroin in a car belonging to a 19-year-old woman residing in Schenectady, who died from a heroin overdose the following day.
In sentencing Showers, United States District Judge Mae A. D’Agostino found that the heroin that killed the 19-year-old woman was the heroin that Showers had placed in the woman’s car. Judge D’Agostino told Showers, “You gave the victim access to the drugs that extinguished her life.” She added, “When you leave heroin in a 19-year-old’s car, bad things happen. And a tragedy happened here.”
This case was investigated by the FBI, Schenectady Police Department, and the New York State Police, and was prosecuted by Assistant U.S. Attorney Michael Barnett.