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13 June 2017
Four Men Indicted on Hobbs Act Robbery and Related Gun ChargesRead the Press Release
St. Thomas, USVI – Shaquielle Correa, 21, of St. Croix, made his initial appearance today before U.S. Magistrate Judge Ruth Miller after being charged by indictment with Hobbs Act robbery, conspiracy to commit Hobbs Act robbery, and brandishing a firearm during a federal crime of violence, Acting United States Attorney Joycelyn Hewlett announced. Correa, along with Jarmaine Ayala, 36, Wahilli James, 21, both of St. Croix, and Ron Delano Kuntz, 42, of St. Thomas, are charged in a conspiracy to rob Gems and Gold Corner Jewelry Store on St. Thomas. All four men are scheduled to be arraigned on June 26, 2017.
According to the indictment, on September 16, 2013, the four men conspired with each other and other unidentified co-conspirators to rob the store, brandished weapons to threaten and intimidate store employees, and then fled the store with merchandise.
If convicted, each of the four men face up to 20 years in prison on the Hobbs Act robbery charge, plus a mandatory seven-year consecutive sentence for the brandishing a firearm charge.
This case is being investigated by the Virgin Islands Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Anna A. Vlasova and Kim L. Chisholm.
Acting United States Attorney Hewlett reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Former Teacher's Assistant Pleads Guilty to Child PornographyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a former teacher’s assistant at a Buffalo, Mo., elementary school pleaded guilty in federal court today to receiving child pornography.
Dalton Cole Sherman, 20, of Buffalo, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a Dec. 8, 2015, federal indictment.
Sherman was a teacher’s assistant at the DA Mallory Elementary School in Buffalo at the time of the offense. School officials contacted law enforcement officials on June 11, 2015, and reported that a pen camera had been located in a bathroom used by teachers and children. The pen camera was behind a standup mirror in the bathroom and had a light on the camera. Sherman, who had been going in and out of the bathroom for unknown reasons, was detained and transported to the Dallas County Sheriff’s Department for questioning.
Sherman admitted he placed the pen camera in the bathroom on top of some plastic totes and behind the mirror that morning. Sherman checked the camera two times, turning it off and on. Sherman stated he transferred the videos to his Nook tablet to watch them at home.
Law enforcement officers executed a search warrant at Sherman’s residence on June 18, 2015. Investigators found several videos on the pen camera that depict 5-to-6-year-old children using the toilet. Investigators also found 90 images of child pornography, which had been downloaded from the Internet, on Sherman’s Nook tablet.
Under the terms of today’s plea agreement, if accepted by the U.S. District Court Judge, Sherman will be sentenced to 12 years in federal prison without parole and a lifetime term of supervised release following incarceration.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Dallas County, Mo., Sheriff’s Department, the Missouri State Technical Assistant Team, and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former State Department Employee Pleads Guilty to Theft of FundsRead the Press Release
ALEXANDRIA, Va. – A former employee of the U.S. Department of State’s Bureau of Diplomatic Security pleaded guilty today to defrauding the government of approximately $198,000 in funds paid under the Federal Employee’s Compensation Act (FECA), commonly referred to as workers’ compensation.
According to the statement of facts filed with the plea agreement, James Cason Overton, 38, of Newport News, was injured in work-related training in August 2011, just months after the U.S. Department of State hired him. The U.S. Department of Labor, the administrator of FECA benefits, determined Overton was entitled to a monthly benefit equal to 75% of his salary, resulting in monthly payments between September 2011 and March 2016 totaling $198,633.67. During that timeframe, Overton answered questions about his earnings and employment on four different U.S. Department of Labor questionnaires, reporting a total of only $2,330 in earnings. According to the statement of facts, Overton knew that he made false statements about his earnings and employment on each questionnaire because he omitted from the questionnaires that he was the president and majority owner of a company identified in court documents as COMPANY A. During the time Overton was paid FECA benefits, COMPANY A received approximately $260,000 in government contracts, including contracts from the U.S. Department of State, exceeded $2,078,219 in gross profits, and Overton was personally paid approximately $370,000 in salary or other earnings.
According to the plea agreement, Overton agreed to restitution and forfeiture for the entire amount of the FECA benefits he fraudulently received. He also agreed to pay $3,650 in restitution to the U.S. Department of Education because, according to the statement of facts, he made false statements about his income that led to his receipt of Federal Pell Grants at a university he attended.
Overton pleaded guilty to theft of government funds, and faces a maximum penalty of 10 years in prison when sentenced on September 22. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Steve A. Linick, Inspector General for the Department of State; Aaron R. Jordan, Assistant Inspector General for Investigations with the U.S. Department of Education Office of Inspector General; and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea. Special Assistant U.S. Attorney Brian D. Harrison is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-107.
Former State Department Employee Pleads Guilty to Theft of FundsRead the Press Release
ALEXANDRIA, Va. – A former employee of the U.S. Department of State’s Bureau of Diplomatic Security pleaded guilty today to defrauding the government of approximately $198,000 in funds paid under the Federal Employee’s Compensation Act (FECA), commonly referred to as workers’ compensation.
According to the statement of facts filed with the plea agreement, James Cason Overton, 38, of Newport News, was injured in work-related training in August 2011, just months after the U.S. Department of State hired him. The U.S. Department of Labor, the administrator of FECA benefits, determined Overton was entitled to a monthly benefit equal to 75% of his salary, resulting in monthly payments between September 2011 and March 2016 totaling $198,633.67. During that timeframe, Overton answered questions about his earnings and employment on four different U.S. Department of Labor questionnaires, reporting a total of only $2,330 in earnings. According to the statement of facts, Overton knew that he made false statements about his earnings and employment on each questionnaire because he omitted from the questionnaires that he was the president and majority owner of a company identified in court documents as COMPANY A. During the time Overton was paid FECA benefits, COMPANY A received approximately $260,000 in government contracts, including contracts from the U.S. Department of State, exceeded $2,078,219 in gross profits, and Overton was personally paid approximately $370,000 in salary or other earnings.
According to the plea agreement, Overton agreed to restitution and forfeiture for the entire amount of the FECA benefits he fraudulently received. He also agreed to pay $3,650 in restitution to the U.S. Department of Education because, according to the statement of facts, he made false statements about his income that led to his receipt of Federal Pell Grants at a university he attended.
Overton pleaded guilty to theft of government funds, and faces a maximum penalty of 10 years in prison when sentenced on September 22. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Steve A. Linick, Inspector General for the Department of State; Aaron R. Jordan, Assistant Inspector General for Investigations with the U.S. Department of Education Office of Inspector General; and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea. Special Assistant U.S. Attorney Brian D. Harrison is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-107.
Former Las Cruces Elementary School Janitor Sentenced to Eight Years for Federal Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – David Anaya Garcia, 33, of Las Cruces, N.M., was sentenced today in federal court to 96 months in prison followed by five years of supervised release for his conviction on a federal child pornography charge. Garcia will be required to register as a sex offender when he completes his prison sentence. At the time he committed the crime, Garcia was employed as a janitor in a Las Cruces elementary school.
Garcia was arrested in July 2015, on a criminal complaint charging him with distribution of child pornography and possession of child pornography. According to the complaint, Homeland Security Investigations (HSI) initiated the federal investigation leading to Garcia’s arrest in June 2015, after the New Mexico Office of the Attorney General reported that an investigation by the New Mexico Internet Crimes Against Children (ICAC) Task Force revealed that an IP Address subscribed to Garcia’s residential address was being used to download child pornography. The Las Cruces Police Department and HSI arrested Garcia and executed a federal search warrant at his residence on July 1, 2015.
Garcia was subsequently indicted on Sept. 16, 2015, and charged with distributing child pornography on March 26, 2015, receiving child pornography from March 2015 through April 2015, and possessing child pornography on July 1, 2015. The indictment alleged that Garcia committed the crimes in Doña Ana County, N.M.
On Feb. 8, 2016, Garcia pled guilty to receipt and distribution of child pornography and admitted that between March 12, 2015 and April 30, 2015, he distributed child pornography through file-sharing software that allowed others to download the images and videos he saved to a shared folder. Garcia further admitted that on July 2, 2015, agents from HSI executed a search warrant on his home where they seized an HP Pavilion laptop containing five images and 88 videos depicting child pornography and a thumb-drive containing 56 images and 55 videos depicting child pornography.
This case was investigated by the Las Cruces office of HSI, the Las Cruces Police Department, the New Mexico Office of the Attorney General, the New Mexico ICAC Task Force and the New Mexico Regional Computer Forensic Laboratory. The case was prosecuted by Assistant U.S. Attorney Alexander Shapiro of the U.S. Attorney’s Las Cruces Branch Office as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Former Central Texas Dentention Facility - GEO Prison Guard Sentenced to Prison for Sexual Abuse of a WardRead the Press Release
In San Antonio, 35-year-old former Central Texas Detention Facility—G.E.O. prison guard Barbara Jean Goodwin was sentenced to federal prison after admitting to having sexual relations with an inmate, announced United States Attorney Richard L. Durbin, Jr.; United States Marshal David Sligh; and, Christopher Combs, FBI Special Agent in Charge, San Antonio Division.
Appearing before Senior United States District Judge David A. Ezra this morning, Goodwin was sentenced to 5 months imprisonment to be followed by 5 months home confinement. Goodwin also was ordered to serve a 2 year supervised release term and register as a sex offender.
On March 14, 2017, Goodwin pleaded guilty to one count of sexual abuse of a ward. By pleading guilty, Goodwin admitted that from February 2016 to August 2016, she engaged in sexual acts with a federal prisoner who at the time was under her custodial, supervisory or disciplinary authority.
Goodwin was ordered to self-surrender in July to start her prison term.
This investigation was conducted by the U.S. Marshals Service together with the Federal Bureau of Investigation. Assistant United States Attorneys Sarah Wannarka and Christina Playton are prosecuting this case on behalf of the Government.
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Florida Corporation Pleads Guilty to Wire Fraud Related to Falsified Water TestingRead the Press Release
Dothan, Ala. – Last Thursday, June 8, 2017, Roberson Excavation, Inc. (Roberson Excavation), a company headquartered in Milton, Florida, pled guilty to committing wire fraud, announced Acting United States Attorney A. Clark Morris. The conviction stemmed from a company employee falsifying water samples during the installation of new water lines in Dale County, Alabama. That employee, Darin Lewis, 46, of Crestview, Florida, previously pled guilty to conspiring to commit wire fraud.
The company initially proceeded to trial but changed its plea before it concluded. According to the trial evidence, in 2014, the Dale County Water Authority hired Roberson Excavation to install new water lines in the Marley Mill area of Dale County. Roberson Excavation was supposed to complete the project by November of 2014, however it failed to do so. As a result, the company began paying penalties of $500 for each day the project went incomplete. In January of 2015, Roberson Excavation hired Lewis to serve as the project’s foreman. In an effort to speed along the completion of the project, Lewis devised a scheme to falsify the bacteriological testing required to place the new water lines into service.
Specifically, on February 17, 2015, Lewis, acting on behalf of Roberson Excavation, submitted to a laboratory water from a portion of the new lines that had already been tested and shown to be clear of bacteria. When he did so, Lewis falsely claimed that he had drawn the water from an untested portion of the line. As a result of Lewis’s actions, Roberson Excavation was able to place into service water lines that had never been properly tested for harmful bacteria.
“Roberson Excavation clearly placed profit over the well-being of an entire community,” stated Acting United States Attorney Morris. “We are thankful that no one became sick as a result of this unlawful corner-cutting and the responsible parties deserve to be held accountable for their potentially dangerous actions. Access to clean drinking water is essential for our daily living—my office, in partnership with the Environmental Protection Agency— will work diligently to ensure that the residents of our district are not deprived of such a basic necessity.”
"The falsification of laboratory data, which was funded by U.S. Environmental Protection Agency (EPA) state revolving funds, is completely unacceptable," said Sean Earle, Acting Special Agent in Charge of the Atlanta Field Office, EPA, Office of Inspector General. "This guilty plea by Roberson Excavation, Inc. demonstrates the OIG's commitment to work successfully with our law enforcement partners."
On September 11, 2017, United States District Judge Carlos E. Mendoza will sentence Roberson Excavation and Lewis. Roberson Excavation faces a maximum fine of $250,000.00. Lewis faces a sentence of up to five years in prison. Additionally, as restitution, Roberson Excavation has agreed to release to the Dale County Water Authority up to $154,000 in money that Roberson Excavation had previously claimed.
This case was investigated by the Environmental Protection Agency’s Criminal Investigations Division and Office of Inspector General. Assistant United States Attorneys Jonathan S. Ross and R. Rand Neeley are prosecuting the case.
Federal Prosecutions in North Dakota Explode with Opiate CrisisRead the Press Release
FARGO - US Attorney Christopher C. Myers announced today that over the last 24 months, thirty-seven (37) individuals have been charged or sentenced with heroin and/or fentanyl related crimes in federal court within the District of North Dakota.
US Attorney Myers stated, “We have prosecuted more fentanyl-related cases in federal court in North Dakota in the past two years than in the previous 10 years combined. There are a number of reasons why. First, we are aggressively targeting opiate traffickers whose product causes serious bodily harm or death. Second, with the introduction of substances like fentanyl, carfentanil, and their analogues into the local drug market, the level of risk to users, or even those people inadvertently exposed, has increased dramatically. Finally, the opiate epidemic is a healthcare crisis in North Dakota, as well as across the United States. With so many people addicted to these substances, the demand created makes it a lucrative endeavor for drug trafficking organizations.”
The following individuals have been sentenced for their roles in the trafficking of heroin, fentanyl, and/or analogues:
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Jameson Robert Sele - Pled guilty to Conspiracy to Distribute Controlled Substances, and was sentenced on July 27, 2015, to 3 years incarceration.
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Ryan Jon Jensen - Pled guilty to Conspiracy to Distribute Controlled Substances Resulting in Serious Bodily Injury and Death; two Counts of Distribution of a Controlled Substance Resulting in Death; Distribution of a Controlled Substance Resulting in Serious Bodily Injury; and Money Laundering Conspiracy. Jensen was sentenced on February 2, 2016, to 20 years incarceration.
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David Todd Noye Jr. - Pled guilty to Conspiracy to Distribute Controlled Substances, and was sentenced on January 25, 2016, to 3 years and 3 months incarceration.
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Joshua Tyler Fulp - Pled guilty to Conspiracy to Distribute Controlled Substances Resulting in Serious Bodily Injury and Death, and was sentenced on January 27, 2016, to 12 years incarceration.
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Kain Daniel Schwandt - Pled guilty to Conspiracy to Distribute Controlled Substances, and was sentenced on January 25, 2016, to 3 ½ years incarceration.
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Brandon Corde Hubbard - Pled guilty to Conspiracy to Distribute Controlled Substances Resulting in Serious Bodily Injury and Death; Distribution of a Controlled Substance Resulting in Death; and Money Laundering Conspiracy. Hubbard was sentenced on July 13, 2016, to incarceration for the remainder of his natural life.
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Braden James Foley - Pled guilty to Conspiracy to Possess with Intent to Distribute and Distribution of a Controlled Substance, and was sentenced on November 21, 2016, to 2 ½ years incarceration.
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Gregory Alan Krutsinger – Pled guilty to Conspiracy to Possess with Intent to Distribute a Controlled Substance Resulting in Serious Bodily Injury, and was sentenced on October 4, 2016, to 18 years incarceration.
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Tyrone Wilburn – Pled guilty to Conspiracy to Possess with Intent to Distribute a Controlled Substance Resulting in Serious Bodily Injury, and was sentenced on January 23, 2017, to 12 ½ years incarceration.
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John Michael Iten – Pled guilty to Conspiracy to Possess with Intent to Distribute a Controlled Substance, and was sentenced on May 15, 2017, to 5 years incarceration.
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Dalton Lavelle White – Pled guilty to Conspiracy to Possess with Intent to Distribute a Controlled Substance Resulting in Serious Bodily Injury, and was sentenced on May 15, 2017, to 18 ½ years incarceration.
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Brandon Beyer – Pled guilty to Conspiracy to Possess with Intent to Distribute a Controlled Substance, and was sentenced on October 19, 2016, to 4 years incarceration.
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Steven Jay Maynard Hoffman – Pled guilty to Possession with Intent to Distribute a Controlled Substance, and was sentenced on January 25, 2017, to 4 ½ years incarceration.
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Naomi Marie Danielson – Pled guilty to Possession with Intent to Distribute a Controlled Substance, and was sentenced on November 30, 2016, to 2 years incarceration.
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Matthew Gerald Davis – Pled guilty to Distribution of a Controlled Substance, and was sentenced on February 6, 2017, to 5 years incarceration.
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Laquan Andre Thomas -Pled guilty to Possession with Intent to Distribute a Controlled Substance and Controlled Substance Analogues, and was sentenced on May 8, 2017, to 5 years incarceration.
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Rocky Laurence Fowler - Pled guilty to Conspiracy to Possess with Intent to Distribute a Controlled Substance, and was sentenced on February 21, 2017, to 3 months’ incarceration followed by 3 years supervised release.
Myers added: “The average sentence for the above cases is roughly 9 ½ years in federal prison. It is no secret that the penalties in federal court for drug trafficking are much more severe than state court. We want drug traffickers to understand that if you traffic in fentanyl or similar substances in North Dakota, no matter what the amount, you will likely find yourself in federal court.”
The following individuals have pled guilty for their role in distributing heroin, fentanyl, or various analogues:
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Ronnie Lee Helms - Pled guilty on March 1, 2017, to Conspiracy to Possess with Intent to Distribute a Controlled Substance and Controlled Substance Analogue Resulting in Serious Bodily Injury and Death; sentencing set for July 31, 2017.
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Brandon Joseph Jacobs – Pled guilty on January 25, 2017, to Distribution of a Controlled Substance; sentencing set for June 12, 2017.
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Caleb Austin Ross - Pled guilty on April 24, 2017, to Possession with Intent to Distribute a Controlled Substance Analogue Within 1000 Feet of a School; sentencing set for August 17, 2017.
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Zachary David Chyle – Pled guilty on March 27, 2017, to Conspiracy to Possess with Intent to Distribute Resulting in Death and Distribution of a Controlled Substance Resulting in Death; sentencing set for July 31, 2017.
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Christian Harris – Pled guilty on February 22, 2017, to Conspiracy to Possess with Intent to Distribute a Controlled Substance; sentencing set for June 15, 2017.
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Joshua Robert Duran - Pled guilty on May 8, 2017, to Possession of a Firearm or Ammunition by a Prohibited Person; sentencing set for September 11, 2017.
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Nathan Alan Goldsack - Pled guilty on September 14, 2016, to Conspiracy to Possess with Intent to Distribute a Controlled Substance; two Counts of Possession with Intent to Distribute Heroin; two Counts of Possession with Intent to Distribute Methamphetamine; awaiting a sentencing date
Drug Enforcement Administration Assistant Special Agent in Charge Kenneth J. Solek said, “As the lead federal agency responsible for the enforcement of our Nation’s drug laws, the DEA will continue to be an active law enforcement partner with all federal, state, and local law enforcement entities that are combating the scourge of opioid abuse and the harm which results. This issue is both a North Dakota and National public safety concern since a minute amount can and often results in death. DEA will continue its partnership with both the United States Attorney’s Office and local state prosecutors to ensure that those who are responsible for the tremendous pain being levied on our communities are held fully accountable. DEA fully supports demand reduction efforts and will continue to engage the public in open forums, safety bulletins and media outreach, in an attempt to better inform the public as to the dangers associated with heroin, fentanyl, and all dangerous drugs.”
“These are dangerous substances that destroy everything they touch, tear apart lives, and ruin communities,” said Special Agent in Charge Alex Khu of Homeland Security Investigation - St. Paul. “Fentanyl and carfentanil alone are exponentially more dangerous than heroin, and are so hazardous that even law enforcement must take special precautions during arrests. The significant increase in arrests and aggressive prosecutions against the people pushing these drugs demonstrates the intensity and tenacity with which law enforcement is attacking this issue and highlights what successful partnerships can accomplish.”
An additional thirteen (13) defendants have been indicted on opiate-related charges and are awaiting trial this summer and fall.
Myers concluded, “Law enforcement cannot arrest our way out of this crisis; however, targeting the traffickers of these substances is an important part of the strategy. Only with community commitment to a multi-faceted approach and participation by leaders in treatment, healthcare, education, law enforcement, faith organizations, businesses, as well as all sectors of our communities, will we find some measure of success. There is hope if we continue to work together.”
An Indictment is merely an accusation, a method by which a person is charged with criminal activity; individuals charged are presumed innocent until, and unless, proven guilty.
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Federal Prison Chaplain Sentenced for BriberyRead the Press Release
BEAUMONT, Texas – A 43-year-old federal prison chaplain has been sentenced for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Eric S. Patrick, of Nederland, Texas, pleaded guilty on Jan. 19, 2017, to bribery of a public official and was sentenced to one year and one day in federal prison today by U.S. District Judge Thad Heartfield.
According to information presented in court, in July 2015, investigators at the U.S. Penitentiary in Beaumont, Texas seized two gallon bags of tobacco and rolling papers from inmates at the prison. An investigation revealed that Patrick, while employed by the U.S. Bureau of Prisons as a chaplain at the prison, was smuggling tobacco and cigarettes into the prison for inmates. To facilitate the scheme, Patrick set up several scam post office boxes and charged inmates $1,500 in each instance.
This case was investigated by the Department of Justice – Office of the Inspector General, the U.S. Postal Inspection Service, and the Drug Enforcement Administration. This case was prosecuted by Assistant U.S. Attorney John Craft.
Federal Jury Convicts Husband, Wife and Son of Conspiracy to Defraud Nicholasville BusinessRead the Press Release
LEXINGTON, Ky. – Following an eight-day trial, a federal jury sitting in Lexington has convicted
James Minton, 70, Joyce Minton, 65, and Aaron Brooke Warren, 43, all of Nicholasville, Ky., of numerous counts of conspiracy, mail fraud, bank fraud, and money laundering.According to the evidence presented, James Minton, Joyce Minton, and Aaron Brooke Warren conspired to defraud their employer, Clark Machine Tool and Die, of Nicholasville. The criminal conspiracy took place from February 2000 through May 2016 and resulted in a loss in excess of $1,500,000. The conspirators defrauded the business by using company checks and credit cards to purchase personal items, by cashing and keeping company petty cash checks, by issuing themselves extra paychecks, and by inflating their paychecks. They also kept money that customers had paid the company for work, converting those funds to their personal use. Joyce Minton was the office manager and bookkeeper for the company; Aaron Brooke Warren was the company’s shop supervisor; and James Minton was a contractor.
On Monday, the jury convicted Joyce Minton of 46 counts of conspiracy, mail fraud, bank fraud, and money laundering; Aaron Brooke Warren was convicted of 34 counts of conspiracy, mail fraud, and money laundering; and James Minton was convicted of 7 counts of conspiracy and mail fraud.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Amy Hess, Special Agent in Charge, Federal Bureau of Investigation; and Richard W. Sanders, Commissioner of the Kentucky State Police, jointly announced the verdict.
The case was investigated by the FBI and the Kentucky State Police. Assistant U.S. Attorneys Neeraj
Gupta and Ken Taylor prosecuted the case on behalf of the federal government.The Defendants are currently scheduled to be sentenced on September 25, 2017, in Lexington. They face a maximum sentence of 30 years for the convictions, as well as potential restitution and forfeiture. Any sentence, however, will be imposed by the Court, after it has considered the U.S.
Sentencing Guidelines and the federal statutes governing the imposition of sentences.
Eighth Loiza Boys Gang Associate Sentenced to 17 and ½ Years in Prison on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Oneil Quinones, 32, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, heroin and cocaine, was sentenced to 210 months in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Wei Xiang, who handled the sentencing, stated that the defendant was an associate of a gang known as the Loiza Boys, which has been distributing heroin and cocaine on Buffalo’s West Side since at least 2006.
The defendant was charged in 2013 along with nine co-conspirators following a long-term investigation that involved the interception of telephone calls of various defendants and the use of undercover drug purchases from some of those charged. During the investigation, law enforcement officers seized over 450 grams of heroin, three firearms, and over $70,000 in U.S. currency.
Nine of the 10 defendants have been convicted. The remaining defendant, Josbel Garcia, is scheduled to go to trial on November 14, 2017. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Today’s sentencing is the culmination of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen.
East Helena Woman Sentenced to Five Years in Prison for Health Care Fraud and Tax EvasionRead the Press Release
HELENA – Elizabeth Jones Powell, 52, of East Helena, Montana, was sentenced today to five years imprisonment and three years supervised release for health care fraud and tax evasion. She was also ordered to pay $420,891.08 to four insurers and $43,514 to the Internal Revenue Service. U.S. District Court Judge Sam E. Haddon presided over the sentencing.
In court documents, federal prosecutor Chad Spraker wrote that in 2012, the Montana Surveillance and Utilization Review Section (SURS) noticed irregularities in physical therapist Gordon Jones practice’s billing to Medicaid. In particular, from June 2009 to July 2012, Medicaid received claims for only five Medicaid beneficiaries: Powell, her husband, and their three children. The practice was also billing for services nearly seven days a week.
After observing the irregularities, SURS requested documents from the practice in April 2012 to support its claims. SURS did not receive a response, so it made another request for documentation in June 2012. SURS received documents in response to the second request, though not an adequate one. In particular, SURS noted the records contained duplicate wording and consistent misspellings across patient files; the records failed to include dates of service one would expect in the records; the records appeared to be signed by someone other than Jones; and the records contained no written referrals for physical therapy.
A DCI Agent conducted surveillance on Jones’s business and residence for several days in August 2012 to determine whether any beneficiaries were visiting the practice. Medicaid later received claims on those dates for one of Powell’s children who was at work at the time. State authorities executed a search warrant on Jones’ business and residence in April 2013. During the search, officers seized a computer showing that Medicaid patient files for the Powell family were created shortly after the SURS request.
The agent interviewed the family members for which the practice billed Medicaid. Claims for one of Powell’s children were billed for 233 days in 2009 and 2010 when in reality she had been to physical therapy approximately five times in her entire life. Prior to and interview with Powell’s child, Powell called and attempted to persuade her that she received multiple physical therapy treatments from Gordon because she had hurt her neck after falling off a riding lawn mower.
The Powell family was categorically ineligible to receive Medicaid from October 2009 to May 2013, due to the misrepresentations and omissions Powell made on their eligibility paperwork. In addition to $290,476 in fraudulent Medicaid claims made through Gordon’s practice, the family received treatment from 63 other medical providers resulting in a $25,664 loss to Medicaid. The Powell family also received 63 different medications resulting in an $18,343 loss to Medicaid.
Powell also filed several false tax returns during her health care fraud scheme. From 2010 through 2012, Powell filed IRS Forms 1099 that substantially understated her income. According to Powell’s accountant, each year Powell provided him with figures stating the amount of income Powell received from the physical therapy practice, which the accountant then listed on Powell’s return to the IRS. After Powell’s fraud came to light, Gordon and his son provided the accountant with a spreadsheet detailing the additional funds Powell took from the practice. The accountant then issued Powell amended Forms 1099 listing the additional income. Powell did not file an amended return reflecting that income.
The U.S. Attorney’s Office conducted a separate review of Gordon’s bank account and computed the monies Powell diverted from the bank account for her own benefit. The analysis also revealed insurance checks Powell diverted from the practice and deposited into bank accounts Gordon had no control over. Further, Powell transferred funds from Gordon’s account to bank accounts held in the names of her children before spending the money.
This case was prosecuted by Assistant U.S. Attorney Chad C. Spraker and investigated by the Montana Division of Criminal Investigation and the Internal Revenue Service Criminal Investigation Division.
Eagle Butte Man Charged with PerjuryRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Perjury and False Declaration Before a Court.
Charlie Warren Marshall, age 26, was indicted on May 16, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 8, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about the 13th day of March, 2017, Marshall, after having taken an oath before a U.S. District Judge for the District of South Dakota that he would testify, declare, depose and certify truthfully, knowingly and willfully stated that he was not under the influence of alcohol at his change of plea hearing, when he knew that statement to be false.
The charges are merely accusations and Marshall is presumed innocent until and unless proven guilty.
This case is being investigated by the Federal Bureau of Investigation and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Marshall was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Dubuque Man Sentenced to 99 Months in Federal Prison for Possessing Methamphetamine and Guns at a Home Where Children Were PresentRead the Press Release
A man who possessed methamphetamine with intent to distribute it in a home where children were present and lived and who also illegally possessed guns was sentenced June 12, 2017, to more than eight years in federal prison.
Brian Paul Kamm, age 34, from Dubuque, Iowa, received the prison term after a March 9, 2017, guilty plea to one count of possession with intent to distribute a controlled substance on a premises in which individuals under the age of 18 were present and resided and one count of possession of firearms and ammunition by a drug user.
At the guilty plea, Kamm admitted that on August 4, 2016, he was in possession of at least 35 grams of pure methamphetamine in his house, which he intended to distribute to another person. Kamm also admitted that there were two minors present and that they resided at the house at the same time he possessed the methamphetamine there. Kamm further admitted possessing three handguns and ammunition, while he was an unlawful user of marijuana and methamphetamine.
Kamm was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Kamm was sentenced to a total of 99 months’ imprisonment on the drug charge with 17 months of the sentence specifically assessed due to the minors being present and residing at the residence. A special assessment of $200 was imposed. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Kamm is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by the Dubuque Police Department, the Dubuque Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-01002-001.
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Dual Citizen Sentenced to 21 Months in Prison for Kidnapping His Child and Taking Her to TurkeyRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard today sentenced Salih Zeki Uces (39) to 21 months in federal prison for international parental kidnapping. A federal jury found him guilty on March 2, 2017.
According to testimony and evidence presented at trial, on September 16, 2016, Uces asked his estranged wife for an overnight visit with their two-year old child at a Jacksonville hotel and promised to return her on the following day or the day after. Instead, he took the toddler to the Jacksonville International Airport and boarded a series of three flights bound for Adana, Turkey.
Two days before taking the child, Uces went to his estranged wife’s apartment, rifled through her personal items, and stole the child’s passport. While in her apartment, he also viewed a draft divorce petition in his wife’s email.
Three days before leaving, Uces signed a power of attorney over to his brother, allowing his brother to sell Uces’s car while he was in Turkey. On the day of the kidnapping, Uces closed out his safety deposit box at a local bank branch.
Uces refused his estranged wife’s requests to return the child until after he learned that a state court had issued an authorization for his arrest. Ultimately, on November 10, 2016, he returned to the United States with the child and was arrested by FBI agents. The child was immediately returned to her mother.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Laura Cofer Taylor and Kelly Karase.
Dresden Man Pleads Guilty to Drug Conspiracy ChargeRead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Daniel Pallis, 29, of Dresden, Maine, pled guilty today in U.S. District Court to conspiring to distribute heroin and cocaine base, commonly known as “crack.”
According to court records, between January 2015 and October 2016, Pallis conspired with others to distribute heroin and crack throughout communities in Central Maine. He distributed drugs that he had obtained from other co-conspirators. Investigators used a confidential informant to order drugs from one co-conspirator, who directed the informant to Pallis, who then completed the transaction.
The charge carries a sentence of up to 20 years in prison, a $1,000,000 fine, and at least three years of supervised release. Pallis will be sentenced after the completion of a presentence investigation report by the U.S. Probation office.
The case was investigated by the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency, and the Kennebec County Sheriff’s Department, with assistance provided by the Augusta, Maine Police Department. This case was investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Dodge County Pharmacy and Pharmacist Agree to Pay over $2 Million to Resolve False Claims Act and Controlled Substances Act AllegationsRead the Press Release
SAVANNAH, GA: Rhine Drug Company and Andrew “Carter” Clements, Jr. agreed to pay a total of $2.175 million to resolve allegations that they violated the False Claims Act and the Controlled Substances Act. This settlement is the largest False Claims Act recovery with a pharmacy or pharmacist and largest recovery of civil penalties under the Controlled Substances Act in the history of the Southern District of Georgia.
The settlement resulted from a joint investigation by the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), the Drug Enforcement Administration (“DEA”), and the United States Attorney’s Office for the Southern District of Georgia. Based on its investigation, the United States contended that Rhine Drug Company and Clements violated the False Claims Act by submitting claims to Medicare for drugs that Rhine Drug Company did not dispense to patients. The United States further contended that Rhine Drug Company and Clements violated the Controlled Substances Act by negligently failing to make, keep, or furnish certain records as required by federal law.
Acting United States Attorney James Durham said, “Pharmacists are supposed to bill only for what they dispense and they’re to keep accurate records of the prescription drugs they let walk out of their pharmacies. This U. S. Attorney’s Office will hold accountable those pharmacists and pharmacies that seek financial gain at the expense of the public by cutting corners.”
“Billing Medicare for prescription drugs that were never dispensed to patients is a serious allegation,” said Derrick L Jackson, Special Agent in Charge of the HHS-OIG Office in Atlanta. “Our agency, in concert with our law enforcement partners, is dedicated to safeguarding the integrity of all federally funded health care programs.”
“Americans rely on medical professionals, to include pharmacists and pharmacy owners, to keep accurate records of controlled substances, and the DEA is committed to stopping individuals from engaging in such unlawful acts,” said Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division. “We are satisfied that Rhine Drug Company and Clements are being held accountable for their alleged violations of the law.”
Rhine Drug Company and Clements fully cooperated with the investigation and promptly approached the United States to reach a resolution. The claims resolved by this settlement are allegations only; there has been no determination of liability. While this settlement fully resolves the allegations against Clements and Rhine Drug Company, investigations remain ongoing as to others.
The case was investigated by HHS-OIG Special Agent Martin Rowe; DEA Diversion Investigators Josh Barnes and Saul Melendez; Investigator Kimberly Reinken-Creamer of the United States Attorney’s Office, Southern District of Georgia; and Law Clerk Alison Slagowitz of the United States Attorney’s Office, Southern District of Georgia. The United States was represented by Assistant United States Attorney J. Thomas Clarkson. For additional information, please contact the United States Attorney’s Office at (912) 201-2522.
Disbarred Winter Park Attorney Sentenced to 10 Years for Defrauding Clients and Banks of $2.7 MillionRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Julie W. Kronhaus (52, Winter Park) to 10 years in federal prison for wire and bank fraud. In addition, she was ordered to pay over $2.7 million in restitution.
Kronhaus pleaded guilty on January 24, 2017.
According to court documents, from June 2009 to February 17, 2015, Kronhaus, who was a licensed attorney and Certified Public Accountant in Florida, defrauded her clients and banks of approximately $2.7 million. As part of her practice, Kronhaus acted as a trustee for her clients and also held their money in various bank accounts. Rather than using the funds for the purpose intended by her clients, Kronhaus diverted the money into her law firm’s bank accounts and paid for her personal expenses.
In addition, Kronhaus engaged in a check kiting scheme where she wrote checks from accounts that had insufficient funds. She deposited the worthless checks into her trust account at another bank to give the appearance that there were sufficient funds in the account. She then issued checks from her trust account to her clients, taking advantage of the bank’s float time.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney James D. Mandolfo.
Chief Financial Officer of Educational Services Company Sentenced to 19 Months in Prison for Tax Crimes Resulting in $1.4 Million LossRead the Press Release
TRENTON, N.J. – A Pottersville, New Jersey, man was sentenced today to 19 months in prison for filing a false tax return and evading corporate taxes of American Tutor Inc., a company that offered supplemental educational services to New Jersey school districts, Acting U.S. Attorney William E. Fitzpatrick announced.
James Wegeler, 74, previously pleaded guilty before U.S. District Judge Anne E. Thompson to one count of corporate tax evasion and one count of aiding and assisting in the filing of a false tax return. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Wegeler was a certified public accountant who served as the vice president and chief financial officer of American Tutor. In 2013, Wegeler filed a return on behalf of American Tutor that contained materially false information in order to reduce American Tutor’s tax liability. Wegeler intentionally inflated American Tutor’s business expenses by claiming that it paid wages, tips and other compensation to its employees above and beyond what it had actually paid during the tax year 2012.
In addition, in 2011, Wegeler intentionally prepared a fraudulent tax return for an individual taxpayer that did not include substantial income the taxpayer had earned in tax year 2010. Wegeler admitted that his actions resulted in a total tax loss of $1,494,521 to the IRS.
In addition to the prison term, Judge Thompson sentenced Wegeler to three years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the IRS, under the direction of Special Agent in Charge Jonathan D. Larsen, and special agents with the U.S. Department of Education Office of Inspector General, under the direction of Assistant Special Agent in Charge Debbi Mayer, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Office Special Prosecutions Division.
Cherry Hill Doctor and Son Admit Defrauding Medicare, Agree to $1.78 Million SettlementRead the Press Release
CAMDEN, N.J. – A doctor and his chiropractor son today admitted conspiring to defraud Medicare by using unqualified people to give physical therapy to Medicare recipients, Acting U.S. Attorney William E. Fitzpatrick announced.
Robert Claude McGrath D.O., 65, and his son Robert Christopher McGrath, 47, both of Cherry Hill, New Jersey, each pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to separate informations charging them each with conspiracy to commit health care fraud.
The McGraths, together with their practice, the Atlantic Spine & Joint Institute, have also agreed to pay $1.78 million as part of a civil settlement to resolve allegations that they illegally billed Medicare for those treatments.
“Elderly patients who need physical therapy deserve properly licensed and supervised caregivers,” Acting U.S. Attorney Fitzpatrick said. “Instead, the McGraths for years used unqualified and unsupervised employees to treat their patients, all while fraudulently billing Medicare for the phony services.”
“Patients undergoing physical therapy at the McGraths’ practice sought simply to feel and move better,” said Michael Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “It seems all the defendants sought was to enrich themselves at those patients’ – and U.S. taxpayers’ – expense. Medicare fraud deals a big blow to a critical piece of our health care system. Every dollar lost to bogus billing is a dollar less to use for legitimate treatments and services.”
According to documents filed in this case and statements made in court:
The McGraths owned and operated Atlantic Spine & Joint Institute, a medical practice with offices in Westmont, New Jersey, and Wayne, Pennsylvania. Under Medicare rules, physical therapy had to be provided by Robert Claude McGrath or by a trained physical therapist under his supervision. However, from January 2011 through April 2016, the McGraths sought to defraud Medicare by employing unlicensed, untrained persons to give physical therapy to Medicare patients, at times when Robert Claude McGrath was not even in the office to supervise. They then submitted bills to Medicare fraudulently identifying Robert Claude McGrath as the provider of physical therapy.
The defendants each face a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing for both defendants is scheduled for Sept. 19, 2017.
“These criminals face serving time in prison as well as paying out a $1.78 million settlement,” said Scott J. Lampert, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Additionally, my agency reserves the right to exclude both father and son from Medicare, Medicaid, and other federal health programs.”
“People trust medical professionals to treat them and not cheat them,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations’ Metro Washington Field Office. “Our office will continue to work with our federal law enforcement partners to pursue and bring to justice those who would exploit this vulnerable population.”
In the related civil settlement, also announced today, the McGraths and Atlantic Spine agreed to pay $1.78 million plus interest to the federal government to resolve allegations that the fraudulent bills submitted under the McGraths’ scheme caused false claims to be submitted to Medicare in violation of the False Claims Act.
The civil settlement resolves certain claims filed by Linda Stevens, a former billing manager at Atlantic Spine, in the District of New Jersey, under the federal False Claims Act. The federal False Claims Act contains a qui tam, or whistleblower, provision that permits whistleblowers to file suit on behalf of the United States for false claims against the government, and to share in any recovery. Ms. Stevens will receive approximately $338,200 from the settlement proceeds, along with her attorney’s fees.
Acting U.S. Attorney Fitzpatrick credited agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Harpster in Philadelphia, special agents from the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Lampert, and special agents from the Food and Drug Administration, Office of Criminal Investigations, under the direction of Special Agent in Charge McCormack, with the investigation.
Assistant U.S. Attorneys R. David Walk Jr. and Andrew A. Caffrey III of the U.S. Attorney’s Office Health Care and Government Fraud Unit represented the government in the criminal case and the civil case, respectively.
The New Jersey U.S. Attorney’s Office reorganized its health care practice in 2010 and created a stand-along Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.33 billion in health care and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act, and other statutes.
Defense counsel:
Robert Christopher McGrath and Atlantic Spine & Joint Institute: Riza I. Dagli Esq., Roseland, New Jersey.
Robert Claude McGrath: Perry Primavera Esq., Hackensack, New Jersey
Counsel for Relator Linda Stevens: Brian J. McCormick Jr., Philadelphia
Charleston man pleads guilty to federal heroin crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty today to a federal drug charge, announced United States Attorney Carol Casto. Larry Gaynor, 24, entered his guilty plea to possession with intent to distribute heroin.
On October 26, 2016, Gaynor and another individual were pulled over in South Charleston. During the traffic stop, officers discovered approximately 100 grams of heroin, digital scales, baggies, and over $1,000 cash. Officers also discovered a 9mm handgun in Gaynor’s possession. Gaynor admitted that he intended to distribute the heroin.
Gaynor faces up to 20 years in federal prison when he is sentenced on September 6, 2017.
The South Charleston Police Department conducted the investigation. Assistant United States Attorney Haley Bunn is handling the prosecution. United States District Judge John T. Copenhaver, Jr., is presiding over the case.
This prosecution was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District. This case was also brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Charleston felon pleads guilty to federal gun crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty today to a federal gun charge, announced United States Attorney Carol Casto. Jermain Santell Hill, 38, entered his guilty plea to being a felon in possession of a firearm.
In the early morning hours of October 15, 2016, in Charleston, officers with the Charleston Police Department were conducting a traffic stop when they heard a nearby gunshot. As officers ran towards the sound of the gunshot, one of the officers observed Hill leaving the area. The officer pursued Hill to a location behind a residence on Main Street and saw Hill drop an object. After Hill was detained, officers checked that location and recovered a loaded Kel-Tec .380 caliber pistol. Hill was prohibited from possessing any firearm under federal law because of a 2015 conviction in the United States District Court for the Southern District of West Virginia for possession with intent to distribute crack.
Hill faces up to 10 years in federal prison on the gun charge when he is sentenced on September 7, 2017.
The Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald is responsible for the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
This case was prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime.
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Canadian Man Sentenced to 97 months in Federal Prison for Investment SchemeRead the Press Release
FORT WORTH — Ryan Steve Magee, a citizen of Canada, was sentenced this morning by Senior U.S. District Judge Terry R. Means to 97 months in federal prison and ordered to pay $2,372,573 in restitution, following his guilty plea in February 2017 to one count of wire fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
Magee, 34, was indicted in July 2016 on five counts of wire fraud. Magee was arrested in December 2016, and has remained in custody since his arrest.
According to plea documents filed in his case, Magee was a business man and an active day trader in the U.S. stock market. Beginning in 2011, and continuing until the end of 2013, Magee devised and operated a scheme to obtain money by means of false and fraudulent material pretense and representations. Magee solicited and obtained money from victim investors by making false representations about how their money would be invested, how much of their money would be invested, how much their investment was earning, how much money they had in their account, and by making other false statements.
Specifically, J.C. and D.C. decided to invest some of their savings with him. At Magee’s direction, D.C. wired $35,000 to Magee’s account on August 12, 2011. After Magee received the money from D.C., he immediately diverted $25,000 for his own personal expenditures. Magee then deposited the remaining $10,000 into his day-trading account located at Interactive Brokers (IB). Magee sent weekly emails to J.C. and D.C. entitled “Trading Update,” which falsely showed the beginning account principal of $35,000 and the daily gains, even though Magee had diverted $25,000 of the investors’ money to his own personal use.
In November 2011, J.C. and D.C. cashed in J.C.’s 401(k) and wired $240,000 to Magee’s account. After Magee received the $240,000, he immediately diverted approximately $160,000 to his personal accounts, transferring only $80,000 into his IB trading account. Magee again sent weekly “Trading Update” emails claiming to have deposited the entire $240,000 in the IB account. Though he lost approximately $75,000 by the end of the month and his trades for November 2011, were a negative 70 percent, Magee listed 200 percent gains in the weekly “Trading Update” emails he sent to J.C. and D.C, between November 16 2011, and November 30, 2011.
On April 10, 2013, in the final “Trading Updates” email Magee sent to J.C. and D.C., Magee claimed their account balance was over $1.3 million. However, Magee’s IB account statement for the time period ending March 31, 2013, showed that Magee’s IB account had a negative cash balance of $9,578. J.C. and D.C. suffered a total loss of approximately $275,000. Between May 2010 and September 2013, other victims of the fraudulent scheme in the United States and Canada suffered a total loss of approximately $2,097,573.
The Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Nancy Larson prosecuted.
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Bureau of Prisons Employees Indicted by Federal Grand JuryRead the Press Release
Abingdon, VIRGINIA – A federal grand jury sitting in the United States District Court for the Western District of Virginia in Abingdon returned two indictments yesterday against two United States Bureau of Prisons correctional officers who were employed at United States Penitentiary Lee County (USP-Lee), Acting United States Attorney Rick A. Mountcastle announced.
The grand jury has charged Joseph Collins, 43, of Pennington Gap, Va., with one count of making a false statement and using a false writing in a matter within the executive branch of the United States government. In addition, the grand jury has charged Michael Barnette, 34, of Dryden, Va., with ten counts of making a false statement and using a false writing in a matter within the executive branch of the United States government.
The indictment alleges that both Collins and Barnette falsified inmate urine drug screen forms and forged inmate signatures while employed at USP-Lee. The indictment further alleges that some of the forms stated that urine drug screens had been completed on inmates that were no longer incarcerated at USP-Lee.
The investigation of the case was conducted by the Department of Justice Office of the Inspector General and the United States Bureau of Prisons. Assistant United States Attorney Zachary T. Lee will prosecute the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Burbank Man Sentenced to 15 Years in Federal Prison for Production of Child PornographyRead the Press Release
Spokane– Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Jesse Allen Shandy, of Burbank, Washington, was sentenced today after having previously pled guilty on February 28, 2017 to production of child pornography. Senior United States District Judge Edward F. Shea sentenced Shandy to a 15-year term of imprisonment, to be followed by a 22-year term of court supervision after he is released from federal prison. Shandy will also be required to register as a sex offender.
According to information disclosed during court proceedings, an investigation began in September of 2015 when a concerned mother contacted local law enforcement officials in Michigan after finding explicit images of her eight-year-old child on a social networking application on the child’s phone. Further investigation revealed that the child had provided the images on the social networking application after being instructed to do so by another user on the application. The user represented himself to be a minor in the conversations with the eight-year-old child; however, a detective in Michigan subsequently identified the user to be 24-year-old Jesse Allen Shandy, of Burbank, Washington.
Officers with Homeland Security Investigations and the Southeast Regional Internet Crimes Against Children Task Force located and contacted Shandy in Burbank, Washington. During the course of an interview with law enforcement officers, Shandy admitted that he had been communicating with multiple minor girls utilizing the social networking application Kik, and had represented himself to be a similarly aged boy in said communications. Shandy further advised that he obtained explicit images from the minor girls during the course of his communications.
Joseph H. Harrington said, “This case is a fine example of the great work that can be accomplished when state and federal law enforcement officers work together. Today’s sentence should serve as a warning to those who use social networking to send, receive, or produce child pornography – such crimes will be actively pursued by federal and state law enforcement officers. The United States Attorney’s Office will, in turn, aggressively prosecute child pornography crimes that occur in the Eastern District of Washington.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
• Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
• Participation of PSC partners in coordinated national initiatives;
• Increased federal enforcement in child pornography and enticement cases;
• Training of federal, state, and local law enforcement agents; and
• Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Homeland Security Investigations, the Grand Rapids Police Department, and the Southeast Regional Internet Crimes Against Children Task Force conducted the investigation of this matter. The case was prosecuted by Laurel J. Holland, an Assistant United States Attorney for the Eastern District of Washington.
Buffalo Business Owner Sentenced on Tax ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Igor Finkelshtein, 45, of Getzville, NY, who was convicted of making and subscribing a false tax return, was sentenced to two years’ probation and fined $20,000 by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Frank H. Sherman, who handled the sentencing, stated that the defendant operated Buffalo Transportation, Inc. (BTI) as both a medical transportation company and a taxi service. Income derived from providing medical transportation services, which was generally received in the form of checks, was deposited to the BTI corporate bank account. However, cash income derived from the taxi service was not deposited into the same account. A substantial amount of cash was instead diverted to personal bank accounts held by Finkelshtein various family members and associates.
The defendant provided his tax preparer with BTI’s corporate bank records but did not provide records for the cash deposits made to various personal bank accounts. This resulted in inaccurate gross receipts being reported on the corporate income tax returns for fiscal years ending October 31, 2007, through October 31, 2010.
The sentencing 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.
Bronx Man Who Supplied Eastern Connecticut Drug Ring Sentenced to More Than 6 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOSE MIRANDA, also known as “Omar,” 52, of the Bronx, N.Y., was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 74 months of imprisonment, followed by three years of supervised release, for trafficking heroin and cocaine. Judge Bolden also ordered MIRANDA to pay a $5,000 fine.
According to court documents and statements made in court, in October 2015, the DEA, Willimantic Police Department and Connecticut State Police initiated an investigation into a Willimantic-based narcotics trafficking ring after several overdoses in the region. The investigation, which included the use of confidential informants, physical surveillance, controlled purchases of drugs and court authorized wiretaps on five cellular telephones utilized by the co-conspirators, revealed that MIRANDA was supplying large quantities of heroin and cocaine to individuals in eastern Connecticut and Rhode Island, including Carlos Alberto Lopez-Zelada, of Willimantic, and Persio Hernandez, of North Windham. In Connecticut, Lopez-Zelada converted a portion of the cocaine he received into crack cocaine. Lopez-Zelada, Hernandez and other co-conspirators then distributed heroin, cocaine and crack cocaine in the Willimantic area.
MIRANDA was arrested on June 23, 2016, after he was intercepted threatening to shoot a co-conspirator who refused to pay him for a quantity of heroin that Miranda had provided to the individual on consignment.
MIRANDA also disclosed on a wiretap intercept that he had been involved in drug trafficking for “25 years.”
MIRANDA has been detained since his arrest. On December 9, 2016, he pleaded guilty to one count of conspiracy to distribute heroin and cocaine.
Lopez-Zelada and Hernandez were arrested on July 6, 2016, and subsequently pleaded guilty to related charges. They are detained while awaiting sentencing.
This matter is being prosecuted by Assistant U.S. Attorneys Patrick Caruso, David Nelson and Amy Brown.
Bronx Man Convicted After Trial of Murder in Front of Bronx Daycare CenterRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that a federal jury today found RUBEN PIZZARO guilty of murder, participating in a narcotics conspiracy, and firearms charges.
Acting U.S. Attorney Joon H. Kim said: “As a unanimous jury found, Ruben Pizzaro shot and killed David Rivera in broad daylight in front of a daycare center in the Bronx. The prosecution of this type of gang and drug violence helps make our communities safer, and we are committed to that. I commend the FBI and the NYPD for their dogged work in this case and in all their work in keeping New York City safe.”
According to the allegations contained in the Complaint and the Indictment and the evidence presented in court during the trial:
Between August 2015 and January 2016, PIZZARO was a member of a street gang that sold cocaine and crack cocaine in the vicinity of 180th Street and Arthur Avenue in the Bronx, New York. PIZZARO and his crew of drug dealers were in competition with a neighboring drug crew on Hughes Avenue in the Bronx. That competition played out in several violent shootings in late 2015. For example, on at least three occasions in October and November 2015, PIZZARO and his drug crew committed at least three shootings at members of the Hughes Avenue drug crew. Individuals were shot during two of those three incidents, and the third occurred in the immediate vicinity of a Bronx middle school.
On November 24, 2015, in broad daylight at 9:15 in the morning, PIZZARO shot and killed rival drug dealer David Rivera in front of a daycare center in the vicinity of 175th Street and Crotona Avenue in the Bronx.
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PIZZARO, 25, of the Bronx, New York, was found guilty of one count of conspiring to distribute cocaine and crack cocaine, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 40 years in prison; one count of causing the death of another person through use of a firearm, which carries a mandatory minimum sentence of 25 years in prison and a maximum sentence of life in prison; and one count of using firearms, which were brandished and discharged, in furtherance of a narcotics conspiracy, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim thanked the Federal Bureau of Investigation and the New York City Police Department for their work on the investigation.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Shawn Crowley, Max Nicholas, and Robert Allen are in charge of the prosecution.
Bible School Teacher Indicted for Child PornographyRead the Press Release
NORFOLK, Va. – A federal grand jury returned an indictment today charging a Chesapeake man with receipt and possession of child pornography.
According to court records, Gerald Porter, 70, of Chesapeake, was identified by two different law enforcement agencies during undercover investigations into peer-to-peer file-sharing network users sharing child pornography. Both agencies downloaded numerous files of child pornography from Porter’s computer. Porter was also a bible-school teacher for a local church.
Porter has been charged with receipt and possession of child pornography, and faces a mandatory minimum of 5 years and a maximum of 20 years in prison if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Col. K.L. Wright, Chief of Chesapeake Police; and Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, made the announcement. Assistant U.S. Attorney Elizabeth M. Yusi is prosecuting the case.
This case is 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 and click on the tab “resources” for more information about Internet safety education.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-93.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Bank Teller Convicted of EmbezzlementRead the Press Release
BOSTON – A Dorchester woman pleaded guilty yesterday in federal court in Boston to embezzling $172,551 from a customer of the Mattapan bank at which she was a teller.
J’Cynda Sales, 22, pleaded guilty to embezzlement by a bank employee. Between November 2015 and May 2016, Sales made 48 unauthorized withdrawals from the account of a bank customer totaling $172,551. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for Sept. 20, 2017.
The charge of embezzlement by a bank employee provides for a sentence of no greater than 30 years in prison, five years of supervised release, a fine of $1 million and restitution. 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 Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Stephen P. Heymann of Weinreb’s Economic Crimes Unit is prosecuting the case.
Armed Career Criminal Sentenced to 15 Years in Prison for Possessing A FirearmRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Ronald Stephenson (44, Palmetto) to 15 years in federal prison for possessing a firearm and ammunition as a convicted felon. Due to his multiple prior convictions for violent felony or serious drug offenses, he qualified for an increased penalty as an Armed Career Criminal. The Court also ordered him to forfeit a firearm traceable to the offense.
Stephenson pleaded guilty on February 10, 2017.
According to court documents, in May 2016, law enforcement officers in Palmetto arrested Stephenson after he assaulted his live-in girlfriend and threatened to kill her. The officers located and seized a loaded .22 caliber revolver inside Stephenson’s residence; he later admitted that he possessed the firearm and had hidden it under a bedroom mattress.
At the time of the offense, Stephenson was a convicted felon on state probation for attempted first-degree murder. As a result, he was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Manatee County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorney Lisa M. Thelwell.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program – a nationwide, gun-violence reduction strategy. Acting United States Attorney Muldrow, along with Daryl R. McCray, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law-enforcement officials. It is also a part of ATF’s Frontline Strategy on reducing violent crime in communities.
Albuquerque Man Sentenced to Prison for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Michael Borrego, 25, of Albuquerque, N.M., was sentenced today in federal court to a year and a day in prison for violating the federal firearms laws by possessing an unregistered firearm. Borrego will be on supervised release for two years after completing his prison sentence.
Borrego and co-defendants Marcus Sowell, 19, Damon Giles, 23, Adrian Banks, 28, and Marcus Lewis, 27, were charged as the result of an ATF-led investigation that resulted in the filing of 59 federal indictments and a federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. The investigation began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Borrego and his co-defendants were charged in a 12-count indictment filed on June 30, 2016. The indictment charged the five defendants with committing the following crimes in Bernalillo County, N.M.:
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Sowell, with possession of a firearm not registered to him in the National Firearms Registration and Transfer Record (NFRTR) and engaging in the business of dealing firearms without a license on May 19, 2016;
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Giles, with being a felon in possession of a firearm on May 19, 2016;
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Giles and Borrego, with engaging in the business of dealing firearms without a license on May 31, 2016;
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Giles and Banks, with engaging in the business of dealing firearms without a license on June 7, 2016;
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Banks, with being a felon in possession of firearms on June 7, 2016;
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Borrego, with engaging in the business of dealing firearms without a license on June 7, 2016 and June 10, 2016;
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Giles and Lewis, with distribution of cocaine on June 9, 2016;
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Borrego, with possession of a firearm not registered to him in the NFRTR on June 10, 2016; and
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Giles, with engaging in the business of dealing firearms without a license and being a felon in possession of firearms on June 13, 2016.
All five defendants have entered guilty pleas to charges in the indictment, including Borrego who pleaded guilty to Count 10 of the indictment, which charged him with possession of an unregistered firearm. Borrego is the last of the five defendants to be sentenced.
To date, 54 of the 104 defendants have entered guilty pleas and 19 have been sentenced. The remaining defendants have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of ATF. This case was prosecuted by Acting U.S. Attorney James D. Tierney.
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Albuquerque Man Sentenced to Prison for Robbing Pharmacy to Obtain Prescription DrugsRead the Press Release
ALBUQUERQUE – Matthew Romero, 41, of Albuquerque, N.M., was sentenced today in federal court to 37 months in prison for robbing a retail pharmacy to obtain prescription controlled substances. Romero will be on supervised release for three years following his prison sentence. The sentence was announced by Acting U.S. Attorney James D. Tierney, Will R. Glaspy, Special Agent in Charge of DEA’s El Paso Division, and Chief Gorden E. Eden of the Albuquerque Police Department.
Romero was arrested on Dec. 30, 2015, on a criminal complaint charging him with violating the Hobbs Act by robbing a business engaged in interstate commerce and robbery involving controlled substances. The charges against Romero arose out of the armed robberies of the Walgreens Pharmacy located at 3501 Lomas Blvd. and the Walgreens Pharmacy located at 5201 Central Ave. in Albuquerque.
Romero was subsequently charged in a four-count indictment on Jan. 14, 2016, with two counts of violating the Hobbs Act and two counts of theft of medical products. The indictment alleges that Romero committed the crimes on Dec. 6, 2015 and Dec. 7, 2015, in Bernalillo County, N.M.
On Oct. 11, 2016, Romero pled guilty to the indictment. In his plea agreement, Romero admitted entering the Walgreens Pharmacy located at 3501 Lomas Blvd. NE, on Dec. 6, 2015, where gave a pharmacy employee a note demanding Xanax and Diazepam, and let the employee know that he was armed. Romero also admitted that on Dec. 7, 2015, he entered the Walgreens Pharmacy located at 5201 Central Ave., where he gave a pharmacy employee a note demanding Xanax, Diazepam, and Oxycodone, and let the employee know that he was armed. The plea agreement states that on Dec. 8, 2015, Romero again entered the Walgreens Pharmacy located at 3501 Lomas Blvd. NE, with a note demanding Xanax and Valium, and stating that Romero was armed, but Romero was arrested while he was waiting for the pharmacy to open.
According to the plea agreement, on Dec. 6, 2015, Romero stole 107 doses of 2 milligram Alprazolam and 346 doses of 10 milligram Diazepam, and on Dec. 7, 2015, Romero stole 873 doses of 2 milligram Alprazolam, 471 doses of 10 milligram Diazepam and nine doses of 5 milligram Oxycodone. At the time of his arrest on Dec. 8, 2015, officers recovered several bottles of Alprazolam from his backpack, and did not locate any firearms, ammunition or other weapons.
This case was investigated by the Tactical Diversion Squad of the DEA in Albuquerque and the Albuquerque Police Department. DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
The Controlled Substance Registrant Protection Act was enacted in 1984, to combat the theft of prescription drugs from individuals and businesses registered with the DEA. It created penalties for entering a pharmacy’s premises for the purpose of stealing controlled substances, and includes enhanced punishment for using a dangerous weapon. The Safe Doses Act was enacted in Oct. 2012, to fight medical theft and protect patients from unknowingly using stolen and mishandled drugs. It provides for enhanced sentences for those who rob pharmacies of controlled substances; individuals who steal medical products; and “fences” who knowingly obtain stolen medical products for resale in the supply chain.
Assistant U.S. Attorneys Joel R. Meyers and Shaheen P. Torgoley prosecuted the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Albuquerque Man Pleads Guilty to Federal Bank Robbery ChargeRead the Press Release
ALBUQUERQUE – Richard J. Hall, 31, of Albuquerque, N.M., pled guilty today in federal court to a bank robbery charge.
Hall was arrested on April 6, 2017, on a criminal complaint charging him with robbing the Wells Fargo Bank located at 1800 Eubank Blvd. NE, in Albuquerque, on March 30, 2017. According to the complaint, Hall robbed the Wells Fargo Bank by handing a bank teller a note in which he threatened to hurt someone if the bank teller did not give Hall money. Hall subsequently was indicted on April 26, 2017, on a bank robbery charge.
During today’s proceedings, Hall pled guilty to the indictment without the benefit of a plea agreement. At sentencing, Hall faces a maximum penalty of 20 years in federal prison. Hall remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI. Assistant U.S. Attorney George C. Kraehe is prosecuting the case.
12 June 2017
Yemeni Man Charged with ExtortionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a one-count indictment charging Yousef Goba, 43, of Yemen, with making extortionate threats to harm and kidnap a minor. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorneys Timothy C. Lynch and Wei Xiang, who are handling the case, stated that according to the indictment and a previously filed complaint, between February 2015 and April 2015, Goba contacted the victim through telephone and text messages and threatened to kidnap the victim’s minor child.
The minor child went to Yemen with her mother in September 2013. While in Yemen, the minor child, her mother, and siblings lived with Goba for a period of time. When the mother wanted to move from Goba’s residence, the defendant refused to let the minor child leave and threatened that he would have the minor child marry a Yemeni man, if money was not paid to him. On April 8, 2015, during a call recorded by the FBI, Goba demanded that the victim pay him $11,000 as well as money for other expenses for the release of the minor child.
The defendant was arrested, pursuant to an arrest warrant, on Friday, June 2, 2017, at JFK Airport, when he entered the United States on a commercial flight.
Goba will be arraigned this afternoon at 2:00 p.m. before U.S. Magistrate Judge Michael J. Roemer.
The indictment is the result of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam Cohen.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Williamsville Man Sentenced for Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Troy Malecki, 49, of Williamsville, N.Y., who was convicted of possession of child pornography depicting minors less than 12 years of age, was sentenced to five years in prison by U.S. Senior District Judge William M. Skretny.
Assistant U.S. Attorney Scott S. Allen, Jr., who handed the case, stated that Malecki was part of an online community dedicated to the exchange and discussion of child pornography. On September 18, 2015, special agents from the Federal Bureau of Investigation, Violent Crimes Against Children Task Force, executed a search warrant at the defendant’s residence and seized his cellular telephone. Forensic examination of Malecki’s phone revealed that he was in possession of more than 850 images of child pornography, some of which depicted prepubescent children less than 12 years of age, and some of which depicted violence.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Upstate Man Pleads Guilty to Trafficking in Counterfeit GoodsRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Joshua D. Korb., age 38, of Greenville, pled guilty in federal court in Greenville, to trafficking in counterfeit goods, a violation of Title 18, United States Code, Section 2320. Senior United States District Judge Henry M. Herlong, Jr., of Greenville, accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Korb ran an online EBay store called Steel-Town Memorabilia. The investigation was initiated from a request by the National Football League (NFL) because of numerous complaints received by EBay and PayPal that Korb sold counterfeit NFL merchandise and sports memorabilia.
Agents from the United States Postal Inspection Service made six undercover purchases from Steel-Town Memorabilia of NFL merchandise advertised as authentic. Experts examined all the merchandise and determined all of the items were counterfeit because they were not manufactured by the trademark holder, not licensed or authorized by the NFL, contained a fake certificate of authenticity, or contained a forged signature.
Based on the results from the undercover buys, federal agents obtained and executed a search warrant on Korb’s Greenville residence. Agents seized 2,911 pieces of NFL memorabilia. These items included counterfeit jerseys, forged signatures of current and former NFL players on NFL replica footballs and jerseys, and forged signatures of current and former NFL players on photos and posters. Agents also seized counterfeit certificate of authenticity seals.
In an interview with agents, Korb admitted that he purchased and sold counterfeit merchandise through his Steel-Town Memorabilia store. He told agents he signed the names of current and former NFL players to sports memorabilia and that he listed and sold some of the items as authentic NFL merchandise through Steel-Town Memorabilia. Korb started Steel-Town Memorabilia as a part-time business in 2006 after the Pittsburgh Steelers won Super Bowl XL but it expanded into a full-time business after the Steelers won Super Bowl XLIII in 2009.
Law enforcement estimates that Korb trafficked in more than $4 million worth of counterfeit goods before the search warrant shut down his business.
Ms. Drake stated the maximum penalty a defendant can receive is a fine of $2,000,000 and/or imprisonment for 10 years, three years of supervised release, and a special assessment of $100.
The case was investigated by agents of the United States Postal Inspection Service, Federal Bureau of Investigation, Greenville County Sheriff’s Office, Spartanburg County Sheriff’s Office, and the Department of Homeland Security. In addition, representatives of the NFL, National Basketball Association, and Major League Baseball also assisted in the investigation. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Two Salina Men Sentenced on Federal Drug, Gun ChargesRead the Press Release
TOPEKA, KAN. - Two Salina men were sentenced Monday on federal drug and gun charges, U.S. Attorney Tom Beall said.
Seth Allen George, 26, Salina, Kan., was sentenced to 18 years in federal prison. He pleaded guilty to one count of conspiracy to distribute methamphetamine and one count of brandishing firearms in furtherance of drug trafficking.
Tyler Lee Shea, 21, Salina, Kan., was sentenced to 15 years in federal prison. He pleaded guilty to one count of conspiracy to distribute methamphetamine and one count of possessing firearms in furtherance of drug trafficking.
In their pleas, both men admitted they were members of a drug trafficking organization operating in the Salina area in 2016.
Co-defendants include Kyle Allen Palmer, who was sentenced to 180 months, and Jason Lars Sheets, who is set for sentencing July 10.
Beall commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Greg Hough for their work on the case.
Two Chester Men Plead to Federal Drug ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake announced that Jacques Andre Jackson and Willie Joseph Roberts, of Chester, South Carolina, pled guilty in federal court to federal drug charges associated with their participation in a conspiracy to distribute crack cocaine. United States District Judge Mary Geiger Lewis, of Columbia, accepted the guilty pleas and will impose sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented in court during the guilty plea hearing established that, between April 2015 and March 2016, law enforcement utilized confidential sources to purchase quantities of crack cocaine from both Jackson and Roberts. There convictions were the product of a joint investigation conducted by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Chester County Sheriff’s Office, and the Chester Police Department. The investigation focused on significant drug dealers and violent gang members in and around Chester County and resulted in federal charges against eight defendants.
Jackson and Roberts each face a maximum of twenty years imprisonment, a fine of $1,000,000, and at least three years of supervised release on the drug charges.
Assistant United States Attorney Ben Garner of the Columbia office handled the case.
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Topeka Man Pleads Guilty to Two Armed RobberiesRead the Press Release
TOPEKA, KAN. - A Topeka man pleaded guilty in federal court Monday to two armed robberies, including one in which he fired a shot into the ceiling, U.S. Attorney Tom Beall said.
Gary L. Gillom, 30, Topeka, Kan., pleaded guilty two counts of armed robbery. In his plea, he admitted that on June 26, 2016, he brandished a firearm while robbing the Arby’s restaurant at 1187 Southwest Gage in Topeka. He ordered restaurant employees to hurry with the cash and fired a round into the ceiling of the restaurant.
Gillom also admitted that on June 27, 2016, he brandished a firearm when he robbed the Long John Silver’s restaurant at 2746 Southwest Fairlawn in Topeka.
Gillom was arrested on June 29, 2016, after investigators identified a car used in the robberies.
Co-defendant Darien E. Fulton, 25, Topeka, Kan., was sentenced to six years in federal prison.
Gillom is set for sentencing Sept. 11. He faces a maximum penalty of up to 20 years and a fine up to $250,000 on each count.
Beall commended the Topeka Police Department, the Kansas Highway Patrol, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
Statement by Attorney General Jeff Sessions on the Ninth Circuit DecisionRead the Press Release
Attorney General Jeff Sessions today released the following statement on the Ninth Circuit’s decision on President Trump’s Executive Order:
“President Trump’s Executive Order is well within his lawful authority to keep the Nation safe. We disagree with the Ninth Circuit’s decision to block that authority.”
“Recent attacks confirm that the threat to our nation is immediate and real. Certain countries shelter or sponsor terrorist groups like ISIS and al Qaeda, and we may be unable to obtain any reliable background information on individuals from these war-torn, failed states. We must not place our nation at risk until we have the ability accurately and responsibly to vet those seeking entry here. The President was clear in his landmark speech in Saudi Arabia: this is not about religion; it is about national security. In fact, the President called upon leaders in the Muslim world to join the United States in protecting religious freedom for all, including the freedom to be free from violence and terror. “
“The Executive Branch is entrusted with the responsibility to keep the country safe under Article II of the Constitution. Unfortunately, this injunction prevents the President from fully carrying out his Article II duties and has a chilling effect on security operations overall.”
“President Trump knows that the country he has been elected to lead is threatened daily by terrorists who believe in a radical ideology, and that there are active plots to infiltrate the U.S. immigration system -- just as occurred prior to 9/11. The President is committed to protecting the American people and our national security, and we are proud to support his mission to put America first by defending his right to keep us safe. That is why the Department of Justice will continue to seek further review by the Supreme Court.”
Springfield Accountant Pleads Guilty to $3 Million Fraud SchemesRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield accountant and former CPA pleaded guilty in federal court today to two embezzlement schemes totaling more than $3 million and to failing to pay more than $2 million in taxes over the past six years.
David Carl Hayes, 59, of Springfield, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with theft from an organization receiving federal funds, wire fraud and making a false federal tax return.
By pleading guilty today, Hayes admitted that he embezzled $1,965,476 from Alternative Opportunities, a Springfield not-for-profit company that provides mental and behavioral health treatment and counseling, substance abuse treatment and counseling, employment assistance, aid to individuals with developmental disabilities, and medical services. Hayes also admitted that he embezzled $1,029,000 from Carnahan-White Fence and Iron, Inc., a Springfield company, in a wire fraud scheme. And Hayes admitted that he did not report income from Alternative Opportunities on his 2014 federal income tax return, and failed to file tax returns for several years, resulting in a total state and federal tax harm of $2,057,950.
Alternative Opportunities Fraud Scheme: $1,965,476
Hayes served on the board of directors of Alternative Opportunities from 2006 to 2011. He was the coordinator of merger and acquisition activity from 2006 to 2013, and the internal auditor from 2011 to 2013.
Doing business as Dayspring Behavioral Health Services, Alternative Opportunities operated dozens of clinics throughout the state of Arkansas. Hayes embezzled from Dayspring from Jan. 3, 2011, to March 31, 2014, by causing Dayspring to issue checks payable to himself or a person not identified in court documents, which Hayes deposited into his personal checking account.
In May 2015, Alternative Opportunities merged with Preferred Family Healthcare, Inc.
Carnahan-White Fraud Scheme: $1,029,000
Hayes began working as a consultant for Miami Nation Enterprises, an economic development corporation of the Miami Tribe of Oklahoma, in 2012, was hired as chief financial analyst in 2013 and became the chief financial officer in 2015.
In February 2014, Miami Nation Enterprises acquired majority ownership of Carnahan-White Fence and Iron, a multi-generation family-owned fencing business based in Springfield. The prior owners retained a minority share of Carnahan-White and continued to handle the day-to-day management of the company.
Hayes admitted that he defrauded Carnahan-White in a scheme that lasted from June 9, 2014, to June 26, 2016. Hayes obtained business checks from Carnahan-White, without the knowledge or authorization of Miami Nation Enterprises, which he described as “loans” or “advances.” Hayes then reimbursed Carnahan-White by causing funds to be transferred from Miami Nation Enterprises’s bank accounts into Carnahan-White’s bank account. Hayes directed Carnahan-White to alter the company’s financial records to conceal his embezzlement by re-characterizing the expenditures as “Inventory – Wood.”
Income Tax Returns: $2,057,950
Hayes admitted that he failed to disclose $776,340 of income (from Alternative Opportunities) when he filed his federal income tax return for 2013. Hayes also admitted, as relevant conduct, that he did not file tax returns for the years 2011, 2012, 2014 and 2015. (For 2016, Hayes filed for an automatic extension, so he has failed to pay taxes due and owing, but not yet to file a return when required.)
As a result, the total tax harm Hayes caused for years 2011 through 2016 was $1,741,788 in federal taxes due and owing, and $316,162 in state taxes due and owing.
Under federal statutes, Hayes is subject to a sentence of up to 33 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. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation, the FBI and FDIC-Office of Inspector General.
Sierra Vista Resident Sentenced to 25 Years in Prison for Child CrimesRead the Press Release
TUCSON, Ariz. – On June 12, 2017, Ian Joseph Ritzer, 34, of Sierra Vista, Ariz., was sentenced by U.S. District Judge Rosemary Marquez to 25 years in prison to be followed by lifetime supervised release. Ritzer had previously pleaded guilty to two counts of production of child pornography, one count of extortion, and one count of attempted enticement of a minor. Ritzer’s term of lifetime supervised release will include stringent sex offender conditions and he will be required to register as a sex offender.
While at work as a civilian employee of the U.S. Army, Ritzer used the internet to meet young girls on social media and other chat room websites. Ritzer then communicated with numerous girls through email and text messages. Specifically, Ritzer communicated with a thirteen-year-old girl in Illinois and a fourteen-year-old girl in Michigan. During their communications, Ritzer manipulated the girls by pretending to be a minor child, by engaging in a relationship with them, and then demanding that they send him sexually explicit photos. If the girls did not comply with his requests, Ritzer threatened to post their images, commit suicide, or other forms of retribution. It is suspected that Ritzer had over 100 victims. Further, Ritzer travelled to Michigan to meet the minor child with whom he was communicating.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The investigation in this case was conducted by the U.S. Army Criminal Investigation Division and the Federal Bureau of Investigation. The prosecution was handled by Erica L. Seger, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-14-01918-TUC
RELEASE NUMBER: 2017-053_Ritzer
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
San Juan Capistrano Woman Pleads Guilty to Stealing over $1.5 Million from Clients of Her Orange County Accounting BusinessRead the Press Release
SANTA ANA, California – The owner and operator of Mulder Financial Consulting – a financial services company that provided accounting, tax and bookkeeping services – pleaded guilty this afternoon to federal charges for embezzling more than $1.5 million from her clients.
Elizabeth Jane Mulder, who also goes by “Lizzie,” a 34-year-old resident of San Juan Capistrano, pleaded guilty to wire fraud and subscribing to a false income tax return for failing to disclose the misappropriated funds to the Internal Revenue Service.
According to documents filed in United States District Court, from July 2009 until last month, Mulder obtained money from small business clients by gaining the trust of their owners, some of whom allowed her to gain control over their financial accounts.
In relation to nearly all of her victims, Mulder convinced clients to make checks payable to “Income Tax Payments” with promises that those payments would satisfy the clients’ outstanding IRS tax obligations and would be forwarded to the appropriate federal, state or local tax authority. Mulder then deposited these checks into a bank account she created under the name “Income Tax Payments” and converted the funds for her own personal use.
Mulder took money from victims after creating false personas that appeared to be investors and/or representatives of other companies, which led her clients to believe various expenses were being paid for the benefit of their respective businesses. In fact, Mulder simply was depositing clients’ money into her own bank account.
In total, Mulder’s fraudulent scheme resulted in the theft of approximately $1,538,771 from several Orange County-based businesses, including JAC Wines in San Clemente, Kurtz-Ahlers & Associates in San Juan Capistrano and Andra Builders, Inc. in Costa Mesa.
Mulder used the money obtained from her fraudulent scheme for a variety of personal expenses, including a rental home in Laguna Beach, cosmetic surgery, vacations and horse rentals.
Mulder is scheduled to be sentenced by United States District Judge David O. Carter on October 16, at which time she will face a statutory maximum penalty of 23 years in prison and a fine of $350,000.
This case was investigated by the Federal Bureau of Investigation; IRS Criminal Investigation; and the Laguna Beach Police Department, Investigations Division.
The case is being prosecuted by Assistant United States Attorney Scott D. Tenley of the Santa Ana Branch Office.
Roane County man sentenced to federal prison for methamphetamine crimeRead the Press Release
CHARLESTON, W.Va. – A Roane County man who violated his federal supervised release by committing a drug crime was sentenced to prison today, announced United States Attorney Carol Casto. Chadrick Rogers, 40, of Newton, previously pleaded guilty to possession with intent to distribute methamphetamine. In today’s hearing, he was sentenced to three years and 10 months in federal prison for that offense. He was also sentenced to an additional two and a half years in prison for violating his federal supervised release. The sentences will be served consecutively.
On October 2, 2016, Rogers was arrested by members of the United States Marshals Service and the Kanawha County Sheriff’s Department on a warrant for violation of his federal supervised release. Law enforcement apprehended Rogers after he fled and hit a Deputy Marshal with his motorcycle during the pursuit. At today’s hearing, the Court increased the sentence by finding that the reckless flight created a substantial risk of death or serious injury. In a search incident to his arrest, Rogers was found in possession of approximately 33 grams of methamphetamine and over $3,800 in cash. Rogers admitted that it was his intent to distribute the methamphetamine in and around Kanawha County.
The case against Rogers was investigated by the United States Marshal Service and the Kanawha County Sheriff’s Department. Assistant United States Attorney Timothy D. Boggess is responsible for the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Richard Monroe Arrested in Connection with the Death of Kevin DeOliveiraRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on June 12, 2017, agents with the Bureau of Alcohol, Tobacco, and Firearms arrested Richard Monroe, age 24, in the Western District of Texas. Monroe is charged in a multi-count Superseding Indictment with crimes relating to cocaine trafficking, robbery, and the murder of Kevin DeOliveira on January 2, 2015 at 58 Green Street, Burlington. At the time of his death, DeOliveira was 23 years old and enrolled at the University of Vermont. Monroe will have his initial appearance today at a federal court in El Paso, Texas. During that hearing, a United States Magistrate Judge is expected to decide whether Monroe will be released on conditions or detained pending trial. The Texas Judge may also decide to let Monroe have his detention hearing in the District of Vermont, in which case he would be transported here in the custody of the United States Marshals Service.
The Superseding Indictment charges Monroe with the following offenses: 1) conspiring with Zachary Hust and others to distribute at least 500 grams of cocaine in Vermont from mid-2014 through January 2, 2015; 2) carrying firearms during, and in furtherance of, the cocaine conspiracy, and, in particular, discharging a handgun on January 2, 2015, resulting in the death of Kevin DeOliveira; 3) robbing two individuals at gunpoint for small amounts of marijuana and cash; and 4) carrying a firearm in connection with the marijuana robbery.
Hust, Monroe’s codefendant, is charged only with the cocaine conspiracy.
As reflected in the motion for Monroe’s pretrial detention filed in the Western District of Texas, the government’s evidence shows that, on January 2, 2015, Monroe shot and killed Kevin DeOliveira. Monroe shot DeOliveira with a .22 caliber handgun, at close range, in an execution-style killing. Numerous witnesses report that Monroe was trafficking in cocaine in and around the time of the shooting, and there is evidence that the motive for the shooting related to a cocaine debt. Additionally, Monroe confessed to murdering DeOliveira to a third-party witness. Investigators, moreover, have recovered the firearm used to commit the murder of DeOliveira. That firearm belonged to Monroe. Separate from the cocaine conspiracy, in November 2014, Monroe robbed two individuals at an apartment in Burlington at gunpoint. During the robbery, Monroe and an associate stole marijuana and cash. At the time of the offenses, Monroe was enrolled at Champlain College in Burlington.
If convicted of all charges, Monroe faces a mandatory minimum of 35 years, with a maximum sentence of life.
The arrest of Monroe was the culmination of a multi-agency investigation that began in early 2015. The collaborative effort was led by the Burlington Police Department and the Bureau of Alcohol, Tobacco, and Firearms. Assistant United States Attorneys Christina E. Nolan and Paul J. Van de Graaf are prosecuting the case.
Rapper “Trill Castro” and a Fairburn Man Sentenced for Lying to Firearms Dealers to Purchase Multiple FirearmsRead the Press Release
ATLANTA – Jaleel Akeem Wulu, also known as “Trill Castro,” and Javaree Malique Williams have been sentenced for lying to a federal firearms licensee during the purchase of a firearm, and conspiracy to commit that offense. The conspiracy involved multiple illegal firearms purchases from several firearms dealers.
“Firearms trafficking continues to pose an ever-increasing risk to the safety and security of our communities,” said U.S. Attorney John A. Horn. “These two defendants made it possible for multiple firearms to be transferred out of Georgia into other states and ultimately into the hands of criminals, jeopardizing the safety of any number of citizens.”
“One of ATF’s top priorities is to deny criminals access to firearms and protect the rights of law abiding citizens. These two offenders illegally trafficked firearms that subsequently could have been used against our citizens and our communities; ATF takes this very seriously,” said ATF Special Agent in Charge Wayne Dixie.
According to U.S. Attorney Horn, the charges, and other information presented in court: On March 22, 2017, Wulu and Williams pleaded guilty to the offense of conspiring to make false statements to purchase multiple firearms from several federally licensed firearms dealers, and a second charge of lying to a federally licensed firearms dealer to purchase a firearm. Specifically, Williams admitted to ATF agents that beginning in or about December 2014, through November 28, 2015, he purchased 26 firearms, all but one of which he sold to Wulu. Wulu gave Williams the money for his firearms purchases, and he sometimes traveled to Atlanta to accompany Williams to the firearms dealer locations to choose the guns. Wulu was then an aspiring rapper known as “Trill Castro,” who made music video recordings in the Atlanta, Georgia, area.
During the investigation, law enforcement officers recovered multiple firearms in Maryland and Ohio, which were purchased by Williams for Wulu. Wulu had lived in both these states during the conspiracy. Several of the guns were also recovered at crime scenes fairly close to the date that Williams and Wulu purchased them, including the following recoveries:
- On November 15, 2015, Maryland State Patrol (MSP) officers recovered a Glock, .40 caliber pistol in Millersville, Maryland, that Williams purchased in Georgia from Adventure Outdoors on August 12, 2015. MSP officers stopped a driver for speeding and arrested him after discovery of the firearm and illegal drugs in the vehicle;
- On January 27, 2016, the Prince George’s, Maryland, County Police Department (MCPD) recovered a Taurus, .40 caliber pistol in Forestville, Maryland, that Williams purchased in Georgia from Team 88 Enterprises 86 days earlier on November 2, 2015. The MCPD had stopped a vehicle and illegal drugs were recovered during a search of the car. A firearm was found hidden in the passenger’s sweatshirt and both of the occupants of the car were arrested;
- On February 5, 2016, the Prince George’s Community College Campus Police recovered a Taurus, 9mm caliber pistol in Largo, Maryland, that Williams purchased from Team 88 Enterprises in Georgia on November 2, 2015. College campus police had responded to a fight in the school campus parking lot and arrested the subject who possessed the firearm purchased by Williams;
- Also on February 5, 2016, the Cleveland, Ohio, Police Department recovered an Extar, .223 caliber pistol from Wulu in Warrensville, Ohio, that Williams purchased from Team 88 Enterprises in Georgia on November 28, 2015. Local police had responded to Wulu’s residence after family members reported that he was a danger to himself. Wulu was in possession of the firearm and his family requested that police take custody of it;
- On July 11, 2016, the MCPD recovered a Taurus, 9mm pistol that Williams purchased from Adventure Outdoors on August 12, 2015. The firearm was recovered from a suspect arrested during the MCPD’s investigation of a burglary of an apartment; and
- On July 13, 2016, MCPD recovered another Taurus, 9mm pistol that Williams purchased from Arrowhead Pawn on July 31, 2015, in Jonesboro, Georgia. The MCPD were conducting a burglary interdiction operation when they encountered a 17-year-old suspect gambling in public and in possession of the concealed firearm and arrested him.
Jaleel Akeem Wulu, also known as “Trill Castro,” age 23, of Bowie, Maryland, and Javaree Malique Williams, age 24, of Fairburn, Georgia, each received sentences of two years in prison, to be followed by three years of supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Richard S. Moultrie, Jr., prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Quincy Police Lieutenant Convicted of “Double Dipping”Read the Press Release
BOSTON – A Lieutenant with the Quincy Police Department (QPD) was convicted today by a federal jury in Boston of collecting double pay in 2015.
Thomas Corliss, 52, was convicted following an eight-day jury trial of 10 counts of mail fraud and one count of fraud involving federal funds. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Sept. 7, 2017.
An internal investigation by the QPD revealed that Corliss had “double dipped,” or collected double pay for working multiple details and/or police shifts that overlapped on multiple occasions in 2015. While on vacation in the Bahamas and on Martha’s Vineyard in 2015, Corliss left himself on the daily roster rather than using vacation time. In total, Corliss defrauded the QPD of more than $8,000.
The charge of mail fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. The charge of fraud involving federal funds provides for a sentence of no greater than 10 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; Ronald G. Gardella, Special Agent in Charge of the Department of Justice, Office of the Inspector General, New York Field Office; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorneys Dustin Chao and Ryan M. DiSantis of Weinreb’s Public Corruption Unit are prosecuting the case.
Peoria Man Pleads Guilty to Receiving Child PornographyRead the Press Release
PEORIA, Ill. – On June 7, 2017, Timothy E. King, 30, of Peoria, Ill., pleaded guilty to one count of receipt and attempted receipt of child pornography. King waived indictment and entered his plea before U.S. Magistrate Judge Jonathan E. Hawley, pursuant to a plea agreement. Sentencing has been scheduled for Aug. 31, 2017, before U.S. District Judge Michael M. Mihm. The offense carries a minimum sentence of five years to 20 years in prison, followed by a term of supervised release.
Assistant U.S. Attorney Ronald L. Hanna is prosecuting the case. The U.S. Secret Service, Springfield Electronic Crimes Unit, which includes the Peoria County Sheriff’s Office, conducted the investigation.
According to court documents, King was identified after law enforcement learned that a computer at his residence was using a peer-to-peer file sharing program to download and share files containing child pornography. Based on this information, law enforcement agents with Secret Service obtained and executed a search warrant for King’s residence on Mar. 22, 2016. During the search, King agreed to be interviewed and admitted that he accessed child pornography with the computer in his home and was aware that the files he was receiving were being distributed from his computer to other locations.
At the June 7 hearing, King was taken into custody and ordered to remain detained in the custody of the U.S. Marshals Service.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Northwest Arkansas Man Sentenced to over Fifteen Years in Prison for Firearms ViolationRead the Press Release
Fayetteville, Arkansas – Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that James Myers, age 38 of Fayetteville, Arkansas, was sentenced today to 188 months in federal prison and five years of supervised release on one count of Felon in Possession of a Firearm. The Honorable Robert T. Dawson presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, officers with the 4th Judicial Drug Task Force obtained and executed a search warrant at a residence Springdale, Arkansas. Inside, officers found Methamphetamine, drug paraphernalia, and several firearms. Myers later admitted that he was in possession of a Remington 12 Gauge Shotgun at the time officers executed the warrant. At the time, Myers had at least one prior felony conviction and was prohibited from possessing firearms. Myers was indicted by a federal grand jury in November, 2016 and pleaded guilty in February, 2017.
This is another case prosecuted as a part of the Department of Justice’s Project Safe Neighborhoods Initiative, which is aimed at reducing gun and gang violence, deterring illegal possession of firearms and improving the safety of residents in the Western District of Arkansas. Participants in the initiative include federal, state and local law enforcement agencies.
This case was investigated by the 4th Judicial Drug Task Force. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov