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Wednesday 19 April 2017
Florida Return Preparers Indicted for Using Stolen Ids to File Fraudulent Tax ReturnsRead the Press Release
A federal grand jury sitting in Fort Lauderdale, Florida, returned an indictment on Feb. 23, which was unsealed today, charging three Broward County return preparers with conspiracy, wire fraud and aggravated identity theft, announced Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the indictment, Luczor Fertilien, Frantz Petit-Dos and David Joseph owned two tax preparation businesses in Lauderhill, Florida: Imperial Taxation and Multi-Services Corp. and Aleluya Universal Accounting Services Inc. The indictment alleges that from approximately December 2009 through March 2016, Fertilien, Petit-Dos and Joseph sought fraudulent refunds from the Internal Revenue Service (IRS) by filing tax returns in the names of people whose IDs had been stolen, including a number of deceased individuals. The indictment further alleges that the three men filed fraudulent returns for their clients seeking refunds to which the clients were not entitled, both by reporting fictitious business income and by claiming dead individuals as dependents.
Fertilien self-surrendered and Joseph was arrested earlier today. Petit-Dos remains a fugitive and is being sought.
An indictment is not a finding of guilt. It merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Fertilien, Petit-Dos and Joseph face a statutory maximum sentence of five years in prison on the conspiracy count, a maximum sentence of 20 years in prison for each count of wire fraud and a mandatory sentence of two years in prison for each count of aggravated identity theft. In addition, all three defendants face a period of supervised release, restitution and monetary penalties.
Acting U.S. Attorney Greenberg and Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS–Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, who conducted the investigation, and Assistant U.S. Attorney Neil Karadbil and Assistant Chief Greg Tortella of the Tax Division, who are prosecuting the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Floral Park, NY Man Pleads Guilty to Tax FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division announced today that David Menzies, 51, of Floral Park, NY, pleaded guilty to tax fraud before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of three years in prison, and a $250,000 fine.
Assistant U.S. Attorney Marie P. Grisanti and Tax Division Attorney Jason M. Scheff, who are handling the case, stated that between January 2010 through April 2015, Menzies filed fraudulent tax returns for hundreds of clients that claimed fake business income and expenses and false dependents to claim refunds to which his clients were not entitled. Menzies solicited, and sometimes purchased, the personal identifying information of minors from their parents, and claimed them as dependents on other clients’ returns. Menzies charged his clients $250 for the use of the phony dependents and often used the same children’s information in multiple years. He recruited people to assist him in filing these fraudulent returns and directed them to escort his clients to check cashers, in order to cash their refund checks and collect Menzies’ fee, including the money he charged for creating false dependents.
In addition, Menzies concealed his identity as the preparer by soliciting other people to apply to the Internal Revenue Service (IRS) for preparer IDs and filing the fraudulent returns using the preparer identification numbers the IRS assigned to these individuals. Menzies admitted that he caused a tax loss of more than $250,000.
Menzies also acknowledged that he failed timely to file his 2009 through 2015 personal tax returns.
The plea is the result of an investigation by the Internal Revenue Service, Criminal Investigations Division, under the direction of Kathy A. Enstrom, Acting Special Agent-in-Charge, New York Field Office
Sentencing is scheduled for July 26, 2017, at 11:00 a.m. before Judge Vilardo.
Five people indicted for a methamphetamine distribution operationRead the Press Release
ELKINS, WEST VIRGINIA – Five people have been indicted by a federal grand jury sitting in Wheeling on April 4, 2017 on methamphetamine distribution charges, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Indictments were handed down alleging that a group of individuals from West Virginia, Virginia and California conspired with one another to distribute methamphetamine in Grant County, West Virginia from September 2014 to December 2016.
Those named in the 10-count indictment are:
- Cesar Navarro, 38, Los Angeles, California
- June Catherine Blanchek, 37, Petersburg, West Virginia
- John Wayne Crites, 45, Moorefield, West Virginia
- Kevin L. Navarro, 23, Berryville, Virginia
- Gary Smith, 64, Maysville, West Virginia
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The United States Postal Inspection Service and the West Virginia State Police investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Final defendants sentenced to federal prison for roles in California-to-West Virginia drug conspiracyRead the Press Release
CHARLESTON, W.Va. – Three defendants were sentenced today to federal prison for their roles in a California-to-West Virginia methamphetamine conspiracy, announced United States Attorney Carol Casto. The defendants sentenced today previously pleaded guilty to conspiracy to distribute more than 50 grams of methamphetamine. Miguel Alejandro Robles-Ibarra, 31, a Mexican national, was sentenced to 11 years and three months in federal prison. Rafael Garcia Serrato, 43, and Cesar Garcia, 20, a father and son from Los Angeles, were also sentenced. Serrato was sentenced to 11 years and three months in federal prison. Garcia was sentenced to six years in federal prison.
Robles-Ibarra admitted that from February 2016 to March 19, 2016, he was involved in a drug conspiracy with multiple individuals. Robles-Ibarra also admitted that near the end of February 2016, he helped package ten pound of crystal methamphetamine in a spare tire in the trunk of a vehicle for transport to Kentucky. Two females involved in the conspiracy drove the vehicle from California to meet Brian Ashby, a codefendant residing in Charleston who traveled to Kentucky to pick up the drugs. Robles-Ibarra also admitted that he received a share of the money paid by Ashby for the drugs. Robles-Ibarra further admitted that in March 2016, he helped package another delivery to Ashby - 10 pounds of crystal methamphetamine concealed in the spare tire of a vehicle, this time for transport from California to Huntington. Robles-Ibarra never received any money for the March drug shipment because he was arrested in West Virginia where he had traveled to pick up more money from Ashby. Law enforcement found a fingerprint matching Robles-Ibarra on the spare tire in which the crystal methamphetamine was packaged.
Serrato and Garcia admitted that in March 2016, they, along with other codefendants, arranged to transport five pounds of crystal methamphetamine from California to West Virginia. Serrato and Garcia further admitted that they packed a vehicle with the drugs. Serrato and Garcia also admitted that they maintained telephone contact with the vehicle as it traveled to West Virginia to keep apprised of the progress of the drug delivery. Garcia admitted that on March 25, 2016, he flew from Los Angeles to Huntington to collect money for the drugs being delivered to West Virginia. On March 26, 2016, law enforcement stopped the vehicle transporting the crystal methamphetamine in South Charleston and recovered the drugs.
“Although my office remains focused on battling the opiates that are plaguing our communities, we have not lost sight of other equally dangerous drugs,” stated United States Attorney Casto. “These prosecutions should affirm our commitment to fighting drug trafficking organizations regardless of the poison that they peddle.”
This prosecution is the result of a multi-agency investigation that led to an eight-count indictment implicating several defendants and resulting in lengthy prison sentences. For conspiracy to distribute more than 50 grams of methamphetamine, Velarian Sylvester Carter, of Beckley, was sentenced to 20 years, Daniel Ortiz-Rivera, a Mexican national, was sentenced to 12 years and seven months, Miguel Tafolla-Montoya, a Mexican national, was sentenced to 10 years and 11 months, and Brian Ashby, of Kanawha County, was sentenced to four and a half years. Kelly Newcomb, of Nevada, and Danielle Dessaray Estrada, of Los Angeles, were both sentenced to a year and a day for interstate travel in furtherance of a drug crime. Marco Antonio Bojorquez-Rojas, a Mexican national residing in California, was sentenced to a year and a half for interstate travel in furtherance of a drug crime.
The FBI, Homeland Security Investigations, the United States Postal Inspection Service, the Charleston Police Department, and the Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald is in charge of these prosecutions. United States District Judge John T. Copenhaver, Jr., imposed the sentences and presided over these cases.
These cases are being prosecuted 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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Federal Jury Finds a Previously Convicted Black Hat Search Engine Optimizer Guilty of Retaliating Against His Former VictimRead the Press Release
DALLAS — William Laurence Stanley, 53, a self-proclaimed black hat search engine optimizer and reputation manager, was found guilty yesterday following a five-day trial before U.S. District Judge Sidney A. Fitzwater for retaliating against a victim for providing truthful information to law enforcement about Stanley’s prior commission of a federal offense, that being extortion, announced U.S. Attorney John Parker of the Northern District of Texas.
Stanley was convicted of one count of retaliation. He faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Stanley has been in custody on the retaliation charge since his arrest in November 2016. Sentencing is set for August 4, 2017 at 9:00am.
Stanley was previously sentenced in January 2016 to 37 months in federal prison for extorting money from a Dallas-based business (victim Company) and ordered to pay $174,888 in restitution to the numerous victims of his extortive conduct in U.S. v. William Laurence Stanley, 3:14-CR-113-N. In December 2016, Stanley was indicted for retaliating against the principle victim in the 2014 case.
According to evidence presented at trial, Stanley began planning his retaliation while serving his prison sentence on the extortion conviction. From at least September 6 through sometime in October 2016, Stanley, knowingly and with the intent to retaliate against a person for providing law enforcement information about the commission of a federal offense, posted false or derogatory comments or reviews online about the victim Company.
Stanley first extorted the victim Company in 2009 and 2010, and received a final bulk payment of approximately $80,000 from the victim company to stop the harassment and go away. Stanley reappeared in December 2013, and began extorting the company a second time, this time demanding a payment of approximately $30,000. In December 2013 through February 2014, Stanley and his sister, Lynn Faust harassed the victim Company by emails and on the telephone, threatening to ruin the reputation of the victim Company if it did not pay the extortion fee. Stanley threatened to post negative things online about the victim Company that had the potential to cause significant revenue losses. Stanley’s search engine optimization skills threatened to cause any items he posted online to rank high on the various search engines. During the early stages of the extortion in 2014, the victim Company notified the FBI in Dallas, which opened an investigation. Several victim Company officers and employees subsequently provided truthful information to the FBI regarding Stanley’s commission of a federal offense – the offense to which he ultimately pled guilty in July 2015.
In early August 2016, Stanley was transferred by the Bureau of Prisons (BOP) to a halfway house in Houston. In early September 2016, the BOP placed Stanley on home confinement at his daughter’s residence in Angleton, Texas.
Between September 8, 2016 and October 10, 2016 , Stanley posted derogatory online articles/blogs/complaints intended to portray the victim Company in a negative light. Stanley posted the retaliatory data on Facebook.com, Glassdoor.com, ShaggyTexas.com, 800notes.com, callsreceived.com, Yelp.com, Blogspot.com, and Wordpress.com. Several of the articles/blogs/complaints had titles and photographs added to place the victim Company in an even more negative light. Stanley also encouraged others to duplicate the negative content in as many places as possible.
Stanley attempted to claim that the First Amendment protected his postings. The court instructed the jury that “[e]xpression is not protected by the First Amendment if the speaker intends his words to become, and the tendency of his words do become, an integral part of conduct that violates a valid criminal statute.” Evidence during the trial established that the victim Company’s reputation is based on the hard work, integrity, and dedication of more than hundreds of associates nationwide. The victim Company repeatedly earns and receives top honors and awards in its industry, and Stanley’s retaliatory conduct caused extensive harm to its reputation.
The FBI investigated the case. Assistant U.S. Attorneys C.S. Heath and Sid Mody are in charge of the prosecution.
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Federal Jury Convicts Man for Illegal Reentry After Previous Removal from the United StatesRead the Press Release
DALLAS — Ignacio Arellano-Banuelos, 36, of Dallas, Texas was found guilty today following a two-day trial before U.S. District Judge David C. Godbey for illegal reentry after removal from the United States, announced U.S. Attorney John Parker of the Northern District of Texas.
Arellano-Banuelos faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. He has been in custody since his arrest in June 2016. Sentencing is set for July 31, 2017. Arellano-Banuelos will be deported after serving his sentence.
According to evidence presented at trial, on May 8, 2015 Arellano-Banuelos was found in the United States after having been deported and removed on September 10, 2009, without receiving consent from the United States Attorney General or the Secretary of the Department of Homeland Security to reapply for admission since the time of the previous deportation and removal.
Immigration and Customs Enforcement (ICE) investigated the case. Assistant U.S. Attorney Shane Read and Special Assistant U.S. Attorney Lynn Javier are in charge of the prosecution.
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Federal Inmate Sentenced to 15 Additional Years in Prison for Attack on Correctional OfficersRead the Press Release
Ocala, Florida – Senior U.S. District Judge Wm. Terrell Hodges today sentenced Todd Shepard (49, Missouri) to 15 years in federal prison for the forcible assault of a federal officer, inflicting bodily injury, and using a deadly weapon. This new penalty term must be served in addition to his other currently active sentences. Shepard pleaded guilty on January 27, 2017.
According to the facts presented at sentencing, Shepard is imprisoned at FCC-Coleman until 2029 on a federal drug distribution conviction. He also has a separate state sentence of life imprisonment for the 2008 murder of a Missouri law enforcement officer. On the evening of September 18, 2015, Shepard ambushed and stabbed two federal correctional officers with a sharpened piece of metal. Before being subdued, Shepard repeatedly shouted threats to kill the officers. During a subsequent interview with federal agents, Shepard admitted that he had attacked the officers in an attempt to draw attention to a recent loss of prisoner recreation time.
This case was investigated by the Federal Bureau of Investigation and the Federal Bureau of Prisons. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Federal Court Issues Order in Lawsuit Against the Twin Cities of Colorado City, Arizona and Hildale, Utah, Finding Widespread Police Misconduct and Religious DiscriminationRead the Press Release
A federal judge yesterday found that the Town of Colorado City and the City of Hildale engaged in a decades-long pattern or practice of police misconduct and housing discrimination, and ordered expansive relief to remedy the violations and prevent further violations in the future, announced the Department of Justice.
U.S. District Judge H. Russell Holland’s order, issued yesterday, adopts findings made by a jury last year that the Colorado City Marshals Office engaged in a long-standing pattern of abuses that included false arrests, unreasonable seizures of property, discriminatory policing on the basis of religion, and violating the Establishment Clause of the First Amendment. “The constitutional right to free exercise of religion, on the one hand, and the statutory right to housing and constitutional policing, on the other hand, are vitally important to a viable, peaceful community,” U.S. District Judge Holland wrote.
“Religious discrimination threatens the Founders’ vision of a society based firmly on principles of liberty and freedom of conscience,” said Acting Assistant Attorney General Tom Wheeler for the Justice Department’s Civil Rights Division. “No individual in the United States should be treated differently by a town or its police officers because of his or her religion. No religious leaders should be permitted to use the power of sworn law enforcement officers to hide their misdeeds and enforce their decrees.
The adjoining towns of Colorado City and Hildale are located on the border of Arizona and Utah and are populated primarily by members of a faction of the Fundamentalist Church of Jesus Christ of Latter Day Saints (FLDS) that remains loyal to its imprisoned prophet, Warren Jeffs. Jeffs is currently serving a prison term in Texas of life plus 20 years for aggravated sexual assault of a minor.
The advisory verdict made permanent by U.S. District Judge Holland’s order came after a seven-week trial during which the United States presented evidence from over thirty witnesses that the governments of Colorado City and Hildale are controlled the FLDS Church and Warren Jeffs. Among other things, Judge Holland concluded that Marshals “officers turned a blind eye to criminal activity involving FLDS Church leaders or members,” including supporting a fugitive and ignoring underage marriages, unauthorized distribution of prescription drugs, and food-stamp fraud.
In addition to its verdict on the police-misconduct claim, the jury found that the defendants engaged in a pattern or practice of housing discrimination against persons who were not members of Warren Jeffs’ faction of the FLDS. The jury found that the defendants had used their municipal authority to coerce, intimidate, or interfere with individuals seeking housing, discriminated in the provision of municipal services, and denied housing to non-FLDS members. The United States settled the damages portion of the case shortly before the verdict for $1.6 million.
The Court’s findings are accompanied by a comprehensive order designed to remedy the police misconduct and housing discrimination. Under the terms of the order, which lasts for ten years, the defendants must revise the policies of the Marshal’s Office, adopt new internal affairs and hiring practices, hire two new officers, and hire both a police-practices consultant and a mentor for the Chief of Police. The defendants must submit to training and revise numerous municipal policies and procedures, including their water policies and water impact fees. The order also requires the defendants work to subdivide the land in Colorado City, an issue that has long been a point of contention between the defendants and the religiously neutral land trust that took over control of the property in the area from the FLDS Church over a decade ago. Judge Holland will appoint a monitor to track the defendants’ compliance with the order and report to the Justice Department and the court.
The opinion marks the end of five years of Justice Department litigation to address widespread discrimination in Colorado City and Hildale.
The Marshal’s Office currently has seven sworn officers. Arizona’s Police Officer Standards and Training Board (POST) recently voted to revoke the peace officer certifications of six of those officers, including the certification of the current Chief Marshal Jerry Darger. POST officials recently refused to approve the certification of the seventh officer on the grounds that he had been engaged in a pattern of criminal activity, including felony conduct. Since 2003, six other members of the Marshal’s Office have been decertified by Arizona state officials, including three officers who refused to cooperate with state law-enforcement efforts.
This matter was litigated by attorneys from the Housing and Civil Enforcement Section and the Special Litigation Section of the Department of Justice’s Civil Rights Division. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. If you have any information regarding this matter, please contact the Department at 1-800-896-7743 or e-mail the Justice Department at [email protected].
Even Though Tax Day is behind us, a Reminder to be Vigilant about Tax FraudRead the Press Release
ATLANTA – The deadline for individuals to file their tax returns passed yesterday. Most will breathe a sigh of relief that their tax returns were filed on time. However, some may encounter an unexpected impediment – an unscrupulous return preparer who took advantage of them, or their identity was stolen and a tax refund has already been claimed in their name by a thief.
The U.S Attorney’s Office for the Northern District of Georgia, along with IRS-Criminal Investigations and other law enforcement partners, is actively engaged in combating tax preparing cheats and identity thieves. The following cases highlight some of the work done by the U.S. Attorney's Office and its law enforcement partners in recent months relating to tax fraud.
Frazier B. Todd, Jr., Cozzie Walker and Roberta Sheffield
Frazier B. Todd, Jr. was sentenced to eighteen years, six months in prison on March 29, 2017, in connection with his conviction for preparing over $5.5 million in fraudulent tax returns on behalf of clients. Todd was found guilty following a four-day jury trial in December, 2016. Todd owned and operated Diverse Resource Business and Tax Firm in Union City, Georgia, along with Cozzie Walker and Robert Sheffield. Walker and Sheffield were also charged in the case and previously pleaded guilty.
“Mr. Todd represents a small but very harmful segment of the tax return preparation industry that takes advantage of our tax system,” said U.S. Attorney John Horn. “By falsely claiming that his clients were entitled to the American Opportunity Tax Credit and other tax credits, Todd and other fraudulent return preparers like him cause real financial damage to the government’s fiscal health and our economy as a whole. We urge the citizens in our district to be careful about who they entrust with the preparation of their tax returns.”
“IRS Criminal Investigation has a zero-tolerance policy for refund fraud. Return Preparer fraud is a top priority for the agency and our special agents work year round to bring return preparers who lack integrity and engage in illegal activities to justice,” said James Dorsey, Acting Special Agent in Charge, Atlanta Field Office. “The prison time received by Frazier Todd and his co-conspirators should serve as a strong warning that tough punishments await those who embark on a similar criminal path.”
According to U.S. Attorney Horn, the charges and other information presented in court: Todd conspired with Cozzie Walker and Roberta Sheffield to exploit the American Opportunity Tax Credit (“AOTC”), a refundable tax credit for certain college expenses such as tuition and related costs. Marketing the AOTC as a “stimulus” available to almost anyone, Todd and his business partners prepared false tax returns for thousands of clients, many of whom were disabled, elderly, or low-income.
Todd was also convicted for a much broader fraud scheme in which he exploited not only the AOTC but other tax credits as well to maximize his clients' refunds. For example, he filed dozens of corporate tax returns falsely claiming that the businesses purchased tens of thousands of gallons of gasoline for "off-highway business use," and were entitled to the Fuel Tax Credit. He also falsely claimed that clients had installed solar panels on their homes in order to claim the Residential Energy Credit, which is designed for taxpayers who make green energy upgrades to their homes.On December 8, 2016, a jury found Todd guilty of conspiracy to commit mail and wire fraud, obstructing the internal revenue laws, and ten counts of presenting false claims for refund to the IRS. Cozzie Walker pleaded guilty on March 2, 2016, to conspiracy to commit mail and wire fraud. Roberta Sheffield pleaded guilty on March 21, 2016, to conspiracy to commit mail and wire fraud, and 14 counts of presenting false claims for refund to the IRS.
During his sentencing hearing before U.S. District Court Judge Mark H. Cohen, Todd, 58, of Atlanta, Georgia, was ordered to serve eighteen years, six months in prison, followed by three years of supervised release, and pay restitution to the IRS in the amount of $3,631,466. Judge Cohen stated that the conduct of Todd and his co-conspirators was “an abuse of the tax credit system” in this country. The sentencings of Cozzie Walker, 42, of Atlanta, Georgia, and Roberta Sheffield, 43, also of Atlanta, Georgia, are scheduled for May 16, 2017, before Judge Cohen.
Assistant United States Attorneys Lynsey M. Barron and Steven D. Grimberg prosecuted the case.
Tauya Muteke
Frazier Todd, Jr. is not the first return preparer to be sentenced to prison this year. On January 9, 2017, Tauya Muteke, 35, of Douglasville, Georgia, was sentenced to four years, nine months in prison, followed by one year of supervised release, after a jury convicted him on August 19, 2016, on two counts of preparing and filing false income tax returns and one count of failure to appear for trial. Muteke owned and operated Icon Tax Service, a tax preparation business located in Norcross, Georgia. According to U.S. Attorney Horn, the charges and other information presented in court: Muteke prepared and filed tax returns that made up businesses and falsified business expenses to make it appear as if the businesses had lost money, resulting in larger refunds for his clients. Muteke was originally scheduled to go to trial in March 2010, but three weeks before his trial date Muteke fled to Johannesburg, South Africa, and did not return to the United States for five years. He was arrested upon his return on July 13, 2015.
Assistant United States Attorneys Bernita B. Malloy and Christopher C. Bly prosecuted the case.
Kim A. Earlycutt, Shannon King and Marcia Farmer
The United States Attorney’s Office is also actively prosecuting numerous tax fraud cases. For example, on March 1, 2017, Kim A. Earlycutt, 54, of Covington, Georgia, and Shannon King, 37, of Lithonia, Georgia were indicted by a federal grand jury in the Northern District of Georgia and charged with conspiracy and filing false claims with the United States. In a related case, Marcia Farmer, 50, of Snellville, Georgia, pled guilty to a criminal information charging her with conspiracy to file false claims on October 28, 2016. According to U.S. Attorney Horn, the charges and other information presented in court: the three alleged co-conspirators obtained identity documents of foreign nationals, which they then used to manufacture and file false and fraudulent tax claim forms. These fraudulent tax returns were submitted to the IRS, resulting in more than $5 million in fraudulent refunds being paid.
Members of the public are reminded that the indictment against Earlycutt and King only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
Assistant U.S. Attorney Christopher H. Huber is prosecuting these cases.
All of the above cases were investigated by the Internal Revenue Service Criminal Investigation.
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.
District Man Sentenced to Nine Years in Prison for Stalking, Threatening and Posting Sexual Images of VictimRead the Press Release
WASHINGTON - Lamont Delrico Roberts, 46, of Washington, D.C., was sentenced today to approximately nine years in prison for stalking, threatening, and assaulting a woman, and unlawfully disclosing graphic, sexual images of her, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Acting Chief of the Metropolitan Police Department (MPD).
This case marked the first trial involving the new “Criminalization of Non-Consensual Pornography Act of 2014” (22 D.C.C. 3052), which became effective on May 7, 2015. The law codifies the offense of “unlawful disclosure” and prohibits the publication or disclosure of naked photos without the consent of the person depicted in them, even if the photos were taken or given to the defendant consensually by the victim.
A jury found Roberts guilty in November 2016 of five counts of unlawful disclosure, one count of stalking, three counts of making felony threats, and one count of simple assault. The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Juliet McKenna sentenced Roberts this morning to a total of 30 months in prison on the unlawful disclosure charges; 12 months on the stalking charge; 66 months on the threats offenses, and one month on the assault charge. Upon completion of his prison term, Roberts will be placed on three years of supervised release. While on supervised release, Roberts will be required to get counseling for domestic violence issues and must stay away from the victim and her family.
“Lamont Roberts subjected the victim in this case – his ex-girlfriend – to months of threats and harassment. As a result, the victim’s entire life was altered and she felt like she always had to look over her shoulder,” said U.S. Attorney Phillips. “He humiliated the victim by displaying sexually explicit photos of her in public places. This case demonstrates the benefit of a District of Columbia law that expressly prohibits such unlawful disclosures. The law provided our Office with an additional valuable tool to hold Lamont Roberts accountable for his reprehensible acts.”
According to the government’s evidence, Roberts and the victim were romantically involved for about four years. During the course of their relationship, Roberts became controlling, often dictating to the victim what she could wear and with whom she could spend time. The victim finally ended the relationship in May 2015.
However, Roberts refused to accept that the relationship was over. He telephoned and texted the victim hundreds of times a day and showed up unannounced and uninvited at her job and home countless times. At a certain point, Roberts learned that the victim was romantically involved with someone new and consequently, his behavior escalated dramatically. Roberts began leaving threatening voicemails and texts on the victim’s phone in which he threatened to kill or hurt the victim and her family, he tattooed the victim’s face on his back, and he persistently followed the victim, often holding up graphic, sexual images of the victim that the two had taken during their relationship.
When the victim changed her phone numbers so that Roberts could no longer text her, he emailed her, threatening to share the graphic images with her children, mother, and the rest of the world. Roberts followed through on these threats over the course of October 2015, and posted these images, along with the victim’s name, on her car, her front door, and throughout her neighborhood. Roberts also continued to stalk the victim with these photos in hand. The victim managed to photograph Roberts holding up the graphic images in public places, such as at her workplace and on the street. In fact, the victim photographed Roberts in one instance, when he stood in front of her car holding the image up and in another instance, as he drove by her with the graphic photo hanging out the window of his car.
In an unrelated case, Roberts was sentenced in November 2016 to six years in prison on a drug distribution charge. Roberts pled guilty in August 2016 to distribution of cocaine in the U.S. District Court for the District of Columbia. According to the government’s evidence in that case, Roberts repeatedly sold crack cocaine in quantities that suggested it would be re-distributed. His sentence in this federal case will run consecutively to the sentence imposed today.
In announcing the sentence, U.S. Attorney Phillips and Acting Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Patricia A. Riley and Renata Cooper, Special Counsels to the U.S. Attorney; Paralegal Specialists Donhue Troy Griffith, T. J. McPhail, and Angelina Slagle; David Foster, La June Thames, Tracey Hawkins, Tracy Owuso, and Meshall Thomas, all of the Victim/Witness Assistance Unit; Litigation Technology Specialists Ron Royal and Aneela Bhatia, and former Interns Molly Lovell and Wendy Acquazzino. They also commended the efforts of Assistant U.S. Attorney Nihar Mohanty, who prosecuted the narcotics case in the U.S. District Court.
Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Jessica Brooks and Youli Lee, who investigated and prosecuted the case.
Desoto Parish brothers sentenced to 46 months in prison for roles in cocaine distribution conspiracyRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that two DeSoto Parish brothers were each sentenced Tuesday to 46 months in prison for selling crack and powder cocaine.
Tyquario Derell Adams, 26, and Johnny Leroy Adams Jr., 28, of Mansfield, La., were sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of conspiracy to possess with intent to distribute cocaine and one count of distribution of cocaine. They were also sentenced to three years of supervised release. According to the guilty pleas, between April 2015 and November 2015, Tyquario Adams and Johnny Adams conspired with brothers Antonio Tawarn Robertson, 36, Makeith Ladale Robertson, 33, and Terrance D. Woods, 43, as well as Ashton Bernard Shelton, 25; and Amanda Marie Garner, 33, all of Mansfield, La., to sell the drugs. They were recorded making plans to obtain and sell cocaine in the Mansfield area. Approximately 1.5 kilograms of cocaine were involved in the conspiracy.
See the list below for sentencing details:
Defendants Prison term Probation Supervised release Count* Date M. Robertson 30 months — 3 years 1 Nov. 9, 2016 Shelton 46 months — 3 years 1 Nov. 9, 2016 Garner — 1 year — 3 Jan. 30, 2017 Woods 70 months — 3 years 1 March 7, 2017 A. Robertson 36 months — 3 years 1 March 27, 2017*Count 1 is conspiracy to distribute and possess with intent to distribute cocaine and Count 3 is distribution of cocaine.
The FBI Northwest Louisiana Violent Crimes Task Force and the DeSoto Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Allison D. Bushnell is prosecuting the case.
Defendant Who Escaped Pending Sentencing on a Gun Charge is Sentenced on Both ChargesRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announces that Allen J. Butler, III of Theodore, Alabama was sentenced to 9 years in prison by United States District Court Senior Judge Callie V.S. Granade for the charges of Possession of a Firearm by a Prohibited Person (a felon) and Escape.
On November 14, 2016, Allen Butler, III plead guilty to the offense of Possession of a Firearm by a Prohibited Person (a felon) in violation of 18 U.S.C. Section 922(g)(1) before Senior Judge Granade in the Federal District Court for the Southern District of Alabama. Upon completion of his guilty plea to that charge, Butler was ordered to remain in custody of the U.S. Marshal Service until his sentencing hearing that was to be held within 90 days.
On January 6, 2017, Allen Butler was transported by the Mobile County Sheriff’s Office to the University of Southern Alabama hospital in Mobile after complaining of pains from swallowing a piece of metal. While at the hospital, Butler used a partial handcuff key to unlock his handcuffs and he fled the hospital. A large-scale manhunt ensued that included local media networks who covered the search for Butler.The Gulf Coast Regional Fugitive Task Force discovered information that Butler had traveled to New Orleans, Louisiana, upon his escape, and was possibly back in the Mobile area. Law enforcement officers tracked Butler to an apartment in Wilmer, Alabama. When officers arrived, they found Butler hiding inside the residence. Allen Butler was taken back into custody after eluding capture for nearly 5 days.
Butler was subsequently charged with Escape, and ultimately sentenced, along with his original firearm charge, to 109 months in Federal Prison.
Possession of a Firearm by a Prohibited Person (a felon) is a violation of Title 18, United States Code § 922(g) (1) and is punishable by a maximum term of imprisonment of 10 years. Butler’s Escape charge was a violation of Title 18, United States Code § 751(A) and is punishable by a maximum term of imprisonment of 5 years.
Federal Bureau of Investigation, Mobile Field Office, the United States Marshal Service, in conjunction with the Mobile County Sheriff’s Department, referred these cases for prosecution. Officers of the Gulf Coast Regional Fugitive Task Force also participated in this investigation.
These cases were prosecuted in the United States Attorney’s Office by Assistant United States Attorney Christopher Baugh.
Dallas Man Guilty in Connection with Denton County Highway Expansion FraudRead the Press Release
SHERMAN, Texas – A 34-year-old Dallas man has pleaded guilty to fraud in connection with a Denton County highway expansion project in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Wade Wylie Blackburn, 33, pleaded guilty to conspiracy to commit mail fraud today before U.S. Magistrate Judge Christine A. Nowak.
According to information presented in court, from 2008 to 2011, Blackburn conspired with Kevin James Bollman to defraud the Texas Department of Transportation (TXDOT.) Blackburn and Bollman raised investment money and purchased Right-of-Way (ROW) along Interstate Highway 35 East in Denton County with the intent of quickly re-selling the ROW land tracts to TXDOT.
TXDOT acquired ROW through one of three methods: (1) Condemnation (normal acquisition); (2) Early Acquisition (EAQ); and (3) Advanced Acquisition (AAQ) through option contracts. The first two methods required environmental clearances before TXDOT was permitted to acquire the ROW and pay the landowner. The timing on these acquisitions, including the timing of the environmental clearance issued by the federal government, is unpredictable and often takes years to accomplish. The third method – the AAQ method through option contracts – permitted TXDOT to execute an option contract before environmental clearances were obtained, then pay the landowners a significant up-front option fee designed to keep the landowner from transferring or developing the property on the ROW that would later result in TXDOT likely having to pay more for the ROW. The landowner agreed not to develop the property in exchange for the up-front option fee, then closed on the sale and received the remainder of the purchase money after the environmental clearances were obtained.
As part of the scheme, Blackburn and Bollman intentionally caused false material information to be submitted to the TXDOT appraiser regarding, among other things, their development plans for the various properties. Blackburn and Bollman made these representations to the TXDOT appraiser even though they knew they had no intent to develop any of the properties. Blackburn also wrote a letter with material false statements to individuals at TXDOT. It claimed they were being forced to forego imminent development plans for the tracts, had been unable to successfully secure building permits, and were experiencing financial hardships as a result. Blackburn and Bollman also made false material oral misrepresentations to officials of TXDOT when they told them that they were experiencing financial hardships as a result of not being able to proceed with immediate development of the tracts, and that TXDOT should use the AAQ method to immediately purchase the tracts. Blackburn and Bollman made the material misrepresentations to TXDOT so they could ultimately benefit from the up-front option fee rather than wait for TXDOT acquisition by their usual course of condemnation. TXDOT used option contracts to purchase the tracts for higher prices than what Blackburn and Bollman paid for the tracts. Blackburn was indicted by a federal grand jury in April 2016.
“Government programs are designed to benefit the citizens, in this case, to build critical infrastructure to be used by all,” said Acting U.S Attorney Featherston. “Taxpayers must trust that state and federal funds for building roads and highways are being used and expended in a judicious manner, and not lost to greed and manipulation. Blackburn and others used a complex scheme to defraud the taxpayers, and in doing so, corrupted the process designed to build roads for our citizens.”
Under federal statutes, Blackburn faces up to five years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing 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 U.S. Probation Office.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Christopher A. Eason and J. Andrew Williams.
Dalia Valencia Sentenced to Federal PrisonRead the Press Release
In El Paso this morning, 44-year-old Dalia Valencia was sentenced to federal prison announced United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, Drug Enforcement Administration (DEA) Special Agent in Charge Will R. Glaspy, and Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist.
On May 27, 2016, Valencia pleaded guilty to one count of theft of government property and one count of conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute, namely acts of kidnapping, drug trafficking and money laundering.
Today, Senior United States District Judge David Briones imposed a 120-month sentence on the theft of government property charge and a 180-month sentence on the RICO charge. Both sentences are to run concurrent. In addition to the prison terms, Judge Briones ordered that Valencia pay over $80,000 in restitution to the families of her victims and $49,897 to the Social Security Administration; and, a money judgment for $12,480,000, to be paid joint and several with her brothers Emmanuel Velasco Gurrola and Samuel Velasco Gurrola. Judge Briones also ordered that Valencia forfeit to the Government real estate properties she owned in El Paso.
On March 23 and 24, 2017, Emmanuel Velasco Gurrola and Samuel Velasco Gurrola, respectively, were sentenced to life in federal prison for their roles in a murder-for-hire plot.
According to evidence presented during Samuel Velasco’s trial, in 2008, Samuel Velasco was married to Ruth Sagredo Escobedo. At the time, he was under indictment in El Paso County for aggravated sexual assault of a child and indecency with a child. Evidence further revealed that from September 2008 until November 2008, Samuel initiated a plot, with Dalia and Emmanuel’s help, to kill Sagredo while in Mexico in order to prevent her from testifying in the State case.
Testimony revealed that with Emmanuel’s help, Samuel also arranged to have Sagredo’s father and sister killed in an attempt to lure Sagredo to Mexico. On October 3, 2008, Francisco Maria Sagredo Villareal, Samuel’s father-in-law, was murdered in his house in Ciudad Juarez, Chihuahua, Mexico. On November 20, 2008, Francisco’s daughter, Cinthia Sagredo Escobedo, was murdered in Ciudad Juarez. Two days later, while traveling to her sister Cinthia’s funeral, Ruth Sagredo Escobedo and her friend Roberto Martinez were ambushed and murdered.
According to court records, Dalia, Emmanuel, and Samuel were part of a criminal organization that ran a cross-border car theft ring and imported and distributed tons of marijuana. The organization also engaged in an international kidnapping scheme whereby victims were kidnapped and held in Juarez, Mexico, while they and other criminal associates located in El Paso extorted ransom payment from the victims’ families.
Dalia, Emmanuel, and Samuel’s sister, 43-year-old Monica Velasco, remains a fugitive in this case. Monica Velasco is charged with conspiracy to violate the RICO statute, two money laundering counts and conspiracy to possess with intent to distribute and import over 1,000 kilograms of marijuana. If you have information as to Monica Velasco’s whereabouts, contact the United States Marshals Service in El Paso at (915) 534-6779.This investigation was conducted by the Homeland Security Investigations (HSI), Drug Enforcement Administration (DEA), and the Federal Bureau of Investigation with assistance from the United States Marshals Service, the Social Security Administration Office of the Inspector General, and the El Paso Police Department. Assistant United States Attorneys Daphne Newaz and John Gibson are prosecuting this case on behalf of the Government.
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Cruise Line Ordered to Pay $40 Million for Illegal Dumping of Oil Contaminated Waste and Falsifying RecordsRead the Press Release
Princess Cruise Lines Ltd. (Princess) was sentenced to pay a $40 million penalty – the largest-ever for crimes involving deliberate vessel pollution – related to illegal dumping overboard of oil contaminated waste and falsification of official logs in order to conceal the discharges, announced Acting Assistant Attorney General Jeffrey H. Wood for the Department of Justice’s Environment and Natural Resources Division, and Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida in Miami, Florida. The sentence was imposed today by U.S. District Judge Patricia A. Seitz in Miami.
Judge Seitz also ordered that $1 million be awarded to a British engineer, who first reported the illegal discharges to the British Maritime and Coastguard Agency (MCA), which in turn provided the evidence to the U.S. Coast Guard. The newly hired engineer on the Caribbean Princess reported that a so-called “magic pipe” had been used on Aug. 23, 2013, to illegally discharge oily waste off the coast of England without the use of required pollution prevention equipment. The evidence gathered by the whistleblower, including photographs of the magic pipe, led to an inspection of the cruise ship both in England and then when it reached New York on Sept. 14, 2013. During each of the separate inspections certain crew members concealed the illegal activity by lying to the authorities in accordance with orders they had received from Caribbean Princess engineering officers.
The sentence imposed by Judge Seitz also requires that Princess remain on probation for a period of five years during which time all of the related Carnival cruise ship companies trading in the U.S. will be required to implement an environmental compliance plan that includes independent audits by an outside company and oversight by a court appointed monitor. As a result of the government’s investigation, Princess has already taken various corrective actions, including upgrading the oily water separators and oil content monitors on every ship in its fleet and instituting many new policies.
According to papers filed in court, the Caribbean Princess had been making illegal discharges through bypass equipment since 2005, one year after the ship began operations. The August 2013 discharge approximately 23-miles off the coast of England involved approximately 4,227 gallons within the country’s Exclusive Economic Zone. At the same time as the discharge, engineers ran clean seawater through the ship’s monitoring equipment in order to conceal the criminal conduct and create a false digital record for a legitimate discharge.
The case against Princess included illegal practices which were found to have taken place on five Princess ships – Caribbean Princess, Star Princess, Grand Princess, Coral Princess and Golden Princess. One practice was to open a salt water valve when bilge waste was being processed by the oily water separator and oil content monitor. The purpose was to prevent the oil content monitor from going into alarm mode and stopping the overboard discharge. This was done routinely on the Caribbean Princess in 2012 and 2013. The second practice involved discharges of oily bilge water originating from the overflow of graywater tanks into the machinery space bilges. This waste was pumped back into the graywater system rather than being processed as oily bilge waste, and then pumped overboard anytime the ship was more than four nautical miles from land. As a result, discharges within U.S. waters were likely. None of the discharges were recorded in the oil record books that are required to be maintained on board the ships.
“These violations of law were serious, longstanding and designed to conceal illegal discharges,” said Acting Assistant Attorney General Wood. “The sentence in this case should ensure that these crimes do not take place in the future and should also send a strong message to others that illegally polluting U.S. waters will not be tolerated.”
“Today's large criminal penalty makes it clear that businesses that operate in our oceans will be held accountable for violating their obligation to safeguard the marine environment,” stated Acting U.S. Attorney Greenberg. “The U.S. Attorney’s Office for the Southern District of Florida and our maritime partners are committed to ensuring that all vessel operators adhere to recognized standards in order to protect our open seas and coasts. We will continue to use the U.S. courts to pursue those who circumvent the law for their own personal gain.”
“Without the courageous act of a junior crewmember to alert authorities to these criminal behaviors of deliberately dumping oil at sea, the global environmental damage caused by the Princess fleet could have been much worse,” said Rear Admiral Scott Buschman, Commander of the U.S. Coast Guard Seventh District. “The selflessness of this individual exposed five different ships that embraced a culture of shortcuts and I am pleased at this outcome.”
As set forth in papers filed in court, Princess admitted to the following:
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After suspecting that the authorities had been informed, senior ship engineers dismantled the bypass pipe and instructed crew members to lie.
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Following the MCA’s inquiry, the chief engineer held a sham meeting in the engine control room to pretend to look into the allegations while holding up a sign stating: “LA is listening.” The engineers present understood that anything said might be heard by those at the company’s headquarters in Los Angeles, California, because the engine control room contained a recording device intended to monitor conversations in the event of an incident.
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A perceived motive for the crimes was financial – the chief engineer that ordered the dumping off the coast of England told subordinate engineers that it cost too much to properly offload the waste in port and that the shore-side superintendent who he reported to would not want to pay the expense.
-
Graywater tanks overflowed into the bilges on a routine basis and were pumped back into the graywater system and then improperly discharged overboard when they were required to be treated as oil contaminated bilge waste. The overflows took place when internal floats in the graywater collection tanks got stuck due to large amounts of fat, grease and food particles from the galley that drained into the graywater system. Graywater tanks overflowed at least once a month and, at times, as frequently as once per week. Princess had no written procedures or training for how internal gray water spills were supposed to be cleaned up and the problem remained uncorrected for many years.
Ten million of the $40 million criminal penalty imposed by the court is earmarked for community service projects to benefit the maritime environment; $3 million of the community service payments will go to environmental projects in South Florida; $1 million will go for projects to benefit the marine environment in United Kingdom waters. Additionally, $1 million of the criminal penalty will be deposited in the Abandon Seafarer's Fund, a fund established to provide a mechanism for the U.S. Coast Guard to offer humanitarian relief and support of seafarers who are abandoned in the United States and are witnesses to maritime-related crimes.
The investigation was conducted by the U.S. Coast Guard Investigative Service with assistance from the U.S. Coast Guard 7th District Legal Office, U.S. Coast Guard’s Office of Maritime and International Law and U.S. Coast Guard Office of Investigations and Analysis. In announcing the case, Acting Assistant Attorney General Wood and Acting U.S. Attorney Benjamin G. Greenberg expressed their appreciation to the U.S. Coast Guard and to the U.K.’s MCA. The case is being prosecuted by Richard A. Udell, Senior Litigation Counsel with the Environmental Crimes Section of the Department of Justice, Thomas Watts-FitzGerald, Deputy Chief, Economic & Environmental Crimes Section for the Southern District of Florida, and Special Assistant U.S. Attorney Lieutenant Commander Brendan Sullivan, U.S. Coast Guard.
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Cruise Line Ordered to Pay $40 Million for Illegal Dumping of Oil Contaminated Waste and Falsifying RecordsRead the Press Release
Princess Cruise Lines Ltd. (Princess) was sentenced to pay a $40 million penalty – the largest-ever for crimes involving deliberate vessel pollution – related to illegal dumping overboard of oil contaminated waste and falsification of official logs in order to conceal the discharges, announced Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida in Miami, Florida and Acting Assistant Attorney General Jeffrey H. Wood for the Department of Justice’s Environment and Natural Resources Division. The sentence was imposed today by U.S. District Judge Patricia A. Seitz in Miami.
Judge Seitz also ordered that $1 million be awarded to a British engineer, who first reported the illegal discharges to the British Maritime and Coastguard Agency (MCA), which in turn provided the evidence to the U.S. Coast Guard. The newly hired engineer on the Caribbean Princess reported that a so-called “magic pipe” had been used on Aug. 23, 2013, to illegally discharge oily waste off the coast of England without the use of required pollution prevention equipment. The evidence gathered by the whistleblower, including photographs of the magic pipe, led to an inspection of the cruise ship both in England and then when it reached New York on Sept. 14, 2013. During each of the separate inspections certain crew members concealed the illegal activity by lying to the authorities in accordance with orders they had received from Caribbean Princess engineering officers.
The sentence imposed by Judge Seitz also requires that Princess remain on probation for a period of five years during which time all of the related Carnival cruise ship companies trading in the U.S. will be required to implement an environmental compliance plan that includes independent audits by an outside company and oversight by a court appointed monitor. As a result of the government’s investigation, Princess has already taken various corrective actions, including upgrading the oily water separators and oil content monitors on every ship in its fleet and instituting many new policies.
According to papers filed in court, the Caribbean Princess had been making illegal discharges through bypass equipment since 2005, one year after the ship began operations. The August 2013 discharge approximately 23-miles off the coast of England involved approximately 4,227 gallons within the country’s Exclusive Economic Zone. At the same time as the discharge, engineers ran clean seawater through the ship’s monitoring equipment in order to conceal the criminal conduct and create a false digital record for a legitimate discharge.
The case against Princess included illegal practices which were found to have taken place on five Princess ships – Caribbean Princess, Star Princess, Grand Princess, Coral Princess and Golden Princess. One practice was to open a salt water valve when bilge waste was being processed by the oily water separator and oil content monitor. The purpose was to prevent the oil content monitor from going into alarm mode and stopping the overboard discharge. This was done routinely on the Caribbean Princess in 2012 and 2013. The second practice involved discharges of oily bilge water originating from the overflow of graywater tanks into the machinery space bilges. This waste was pumped back into the graywater system rather than being processed as oily bilge waste, and then pumped overboard anytime the ship was more than four nautical miles from land. As a result, discharges within U.S. waters were likely. None of the discharges were recorded in the oil record books that are required to be maintained on board the ships.
“Today’s large criminal penalty makes it clear that businesses that operate in our oceans will be held accountable for violating their obligation to safeguard the marine environment,” stated Acting U.S. Attorney Greenberg. “The U.S. Attorney’s Office for the Southern District of Florida and our maritime partners are committed to ensuring that all vessel operators adhere to recognized standards in order to protect our open seas and coasts. We will continue to use the U.S. courts to pursue those who circumvent the law for their own personal gain.”
“These violations of law were serious, longstanding and designed to conceal illegal discharges,” said Acting Assistant Attorney General Wood. “The sentence in this case should ensure that these crimes do not take place in the future and should also send a strong message to others that illegally polluting U.S. waters will not be tolerated.”
“Without the courageous act of a junior crewmember to alert authorities to these criminal behaviors of deliberately dumping oil at sea, the global environmental damage caused by the Princess fleet could have been much worse,” said Rear Admiral Scott Buschman, Commander of the U.S. Coast Guard Seventh District. “The selflessness of this individual exposed five different ships that embraced a culture of shortcuts and I am pleased at this outcome.”
As set forth in papers filed in court, Princess admitted to the following:
- After suspecting that the authorities had been informed, senior ship engineers dismantled the bypass pipe and instructed crew members to lie.
- Following the MCA’s inquiry, the chief engineer held a sham meeting in the engine control room to pretend to look into the allegations while holding up a sign stating: “LA is listening.” The engineers present understood that anything said might be heard by those at the company’s headquarters in Los Angeles, California, because the engine control room contained a recording device intended to monitor conversations in the event of an incident.
- A perceived motive for the crimes was financial – the chief engineer that ordered the dumping off the coast of England told subordinate engineers that it cost too much to properly offload the waste in port and that the shore-side superintendent who he reported to would not want to pay the expense.
- Graywater tanks overflowed into the bilges on a routine basis and were pumped back into the graywater system and then improperly discharged overboard when they were required to be treated as oil contaminated bilge waste. The overflows took place when internal floats in the graywater collection tanks got stuck due to large amounts of fat, grease and food particles from the galley that drained into the graywater system. Graywater tanks overflowed at least once a month and, at times, as frequently as once per week. Princess had no written procedures or training for how internal gray water spills were supposed to be cleaned up and the problem remained uncorrected for many years.
Ten million of the $40 million criminal penalty imposed by the court is earmarked for community service projects to benefit the maritime environment; $3 million of the community service payments will go to environmental projects in South Florida; $1 million will go for projects to benefit the marine environment in United Kingdom waters. Additionally, $1 million of the criminal penalty will be deposited in the Abandon Seafarer's Fund, a fund established to provide a mechanism for the U.S. Coast Guard to offer humanitarian relief and support of seafarers who are abandoned in the United States and are witnesses to maritime-related crimes.
The investigation was conducted by the U.S. Coast Guard Investigative Service with assistance from the U.S. Coast Guard 7th District Legal Office, U.S. Coast Guard’s Office of Maritime and International Law and U.S. Coast Guard Office of Investigations and Analysis. In announcing the case, Acting U.S. Attorney Benjamin G. Greenberg and Acting Assistant Attorney General Wood expressed their appreciation to the U.S. Coast Guard and to the U.K.’s MCA. The case is being prosecuted by Thomas Watts-FitzGerald, Deputy Chief, Economic & Environmental Crimes Section for the Southern District of Florida, Richard A. Udell, Senior Litigation Counsel with the Environmental Crimes Section of the Department of Justice and Special Assistant U.S. Attorney Lieutenant Commander Brendan Sullivan, U.S. Coast Guard.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Criminal Defense Attorney Sentenced to Prison for Tax EvasionRead the Press Release
WASHINGTON – A Louisiana criminal defense attorney was sentenced to 30 months in prison today for tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, Michael Thiel, 66, a resident of Baton Rouge, Louisiana, operated a criminal defense practice in Hammond, Louisiana. Despite earning substantial income through his law practice, Thiel evaded paying approximately $1 million in income and employment taxes, including interest and penalties. From 2003 through 2013, Thiel did not timely file income or employment tax returns and did not make timely payments of the taxes he owed. Though Thiel had the ability to make payments towards his tax obligations, he concealed his income and assets using trusts and nominees. In 2001, he created the Thiel Family Trust, of which he was the beneficiary, fiduciary and trustee. He created two additional trusts in 2008 in the names of family members.
Thiel used these three trusts to evade the payment of federal income and employment taxes. In January 2007, Thiel used nominees to purchase his primary residence for $435,000 and entered into a phony lease agreement with the nominees to conceal his ownership of the property and shield it from IRS collection efforts. Between January 2007 and January 2014, Thiel deposited $416,283 into the nominee account that was used to secure and pay the mortgage on the property. These funds came from the nominee trusts and other accounts not held in his name.
“As a result of today’s sentence, criminal defense attorney Michael Thiel’s decade-long effort to evade paying his income and employment taxes is over, and he will begin serving time in prison,” said Acting Deputy Assistant Attorney General Goldberg. “Each April, the vast majority of Americans follow the tax law and pay their fair share. They have the right to expect that taxpayers who spurn these obligations will be held fully to account -- no matter their profession, wealth or position in the community.”
“Today’s sentencing of Michael Thiel is a strong reminder that payment of individual and business taxes is an obligation, not a choice,” said Chief Richard Weber of Internal Revenue Service Criminal Investigation (IRS-CI). “When Mr. Thiel made the decision to evade paying taxes for himself and his business, he also made the decision to cheat his employees and other honest taxpayers. Investigation of employment tax fraud is a priority for the special agents of IRS-CI as our system of taxation depends on everybody paying their fair share.”
In addition to the term of prison imposed, Thiel was ordered to serve two years of supervised release and to pay restitution to the IRS in the amount of $998,352. Thiel pleaded guilty in December 2016 to evading the payment of federal income and employment taxes.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS-CI, who conducted the investigation, and Assistant Chief Todd A. Ellinwood and Trial Attorney Michael Hatzimichalis of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Criminal Defense Attorney Sentenced to Prison for Tax EvasionRead the Press Release
A Louisiana criminal defense attorney was sentenced to 30 months in prison today for tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, Michael Thiel, 66, a resident of Baton Rouge, Louisiana, operated a criminal defense practice in Hammond, Louisiana. Despite earning substantial income through his law practice, Thiel evaded paying approximately $1 million in income and employment taxes, including interest and penalties. From 2003 through 2013, Thiel did not timely file income or employment tax returns and did not make timely payments of the taxes he owed. Though Thiel had the ability to make payments towards his tax obligations, he concealed his income and assets using trusts and nominees. In 2001, he created the Thiel Family Trust, of which he was the beneficiary, fiduciary and trustee. He created two additional trusts in 2008 in the names of family members.
Thiel used these three trusts to evade the payment of federal income and employment taxes. In January 2007, Thiel used nominees to purchase his primary residence for $435,000 and entered into a phony lease agreement with the nominees to conceal his ownership of the property and shield it from IRS collection efforts. Between January 2007 and January 2014, Thiel deposited $416,283 into the nominee account that was used to secure and pay the mortgage on the property. These funds came from the nominee trusts and other accounts not held in his name.
“As a result of today’s sentence, criminal defense attorney Michael Thiel’s decade-long effort to evade paying his income and employment taxes is over, and he will begin serving time in prison,” said Acting Deputy Assistant Attorney General Goldberg. “Each April, the vast majority of Americans follow the tax law and pay their fair share. They have the right to expect that taxpayers who spurn these obligations will be held fully to account -- no matter their profession, wealth or position in the community.”
“Today’s sentencing of Michael Thiel is a strong reminder that payment of individual and business taxes is an obligation, not a choice,” said Chief Richard Weber of Internal Revenue Service Criminal Investigation (IRS-CI). “When Mr. Thiel made the decision to evade paying taxes for himself and his business, he also made the decision to cheat his employees and other honest taxpayers. Investigation of employment tax fraud is a priority for the special agents of IRS-CI as our system of taxation depends on everybody paying their fair share.”
In addition to the term of prison imposed, Thiel was ordered to serve two years of supervised release and to pay restitution to the IRS in the amount of $998,352. Thiel pleaded guilty in December 2016 to evading the payment of federal income and employment taxes.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS-CI, who conducted the investigation, and Assistant Chief Todd A. Ellinwood and Trial Attorney Michael Hatzimichalis of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Court Sentences Final of Nine-Defendant Kalamazoo Heroin Investigation to 15 Years' ImprisonmentRead the Press Release
GRAND RAPIDS, MICHIGAN — Today, U.S. District Court Judge Gordon J. Quist sentenced defendant Quintin Howell, of Kalamazoo, Michigan, to 15 years’ imprisonment, concluding a multi-defendant joint investigation conducted by the Drug Enforcement Administration (DEA), Kalamazoo Valley Enforcement Team (KVET), Michigan State Police’s Southwestern Enforcement Team (SWET), Federal Bureau of Investigation (FBI), and Berrien County Sheriff’s Department. Howell conceded that his conduct involved over 100 grams of heroin and the use of a Hi-Point, ACP Model 4595 assault rifle, with an obliterated serial number, in furtherance of his drug trafficking efforts. Additionally, the Court found that Howell was a manager in the heroin trafficking conspiracy, recruiting and directing others to further the distribution of the drug. The conspiracy Howell pleaded guilty to joining took place from 2013 through August of 2015.
Heroin distribution has been a scourge in our country and in Michigan. The Center for Disease Control reports that there were 47,055 drug overdose deaths in the United States in 2014, and that 61% involved the use of opioids, which includes heroin and the prescription narcotics that have caused an explosion of heroin use in recent years. Specifically, in Michigan, the CDC reports that 1,762 people died of drug overdoses in 2014, which is 18 people for every 100,000 of our population, a 13.2% increase over the previous year. In 2015, it rose again to 1,980 drug overdose deaths—one of the highest drug overdose death rates in the nation – 20.4 per 100,000 people See, http://www.cdc.gov/mmwr/preview/mmwrhtml/mm6450a3.htm#tab. In 2014, the Michigan Department of Community Health reported that drug overdose deaths have tripled in Michigan between 1999 and 2012. In 2015, over 33,000 Americans died of opioid overdoses.
Howell’s sentence was the final term handed down by the Court for nine total defendants charged as a result of the Kalamazoo based investigation. The investigation involved two courtordered wiretaps and 11 months of investigation by the law enforcement agencies involved.
In addition to Howell, the federal court sentenced the following individuals to the following terms of imprisonment in three related cases:
Case no. 15-cr-118
Timothy Bloodworth, 151 monthsCase no. 15-cr-119
Dion Branch, 96 months
Tyshaun Robinson, 60 months
Charles Campbell, 46 monthsCase no. 15-cr-120
Quintin Howell, 180 months
Kyle Lewis, 36 months
Maurice Streeter, 24 months
Justin Jenkins, 180 months
Henry Hall, 42 months“The successful outcome to this investigation should be credited to an extraordinary coordinated law enforcement effort to use as many investigative tools at our disposal as possible to dismantle organized drug trafficking in West Michigan,” said Acting U.S. Attorney Andrew Birge. “Heroin remains a plague upon our society. My office will continue to direct investigations that root out and hold accountable those who would profit from spreading this poison in our communities. However, we will not end this epidemic through prosecution alone. My office has been and will continue to meet with education and health care professionals and those who may be able to make a difference to raise awareness of the danger of opioids and to discuss what they can do to save others from the awful consequences of spiraling addiction.
Please contact us if you are interested in learning more.”
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Pictured in the attached photographs are four loaded firearms, and more than 100 grams of heroin seized by law enforcement in the course of the investigation.
Convicted Sex Offender Sent back to Prison After Possessing Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN — Acting U.S. Attorney Andrew Byerly Birge announced today that Benjamin Franklin Miklusicak, 41, of Dorr, Michigan, was sentenced by U.S. District Judge Janet T. Neff to 124 months in prison for possessing child pornography. Miklusicak pled guilty to the charge in December. Because of a 2004 conviction for criminal sexual conduct, second degree (person under thirteen), he faced a ten-year mandatory minimum term of imprisonment.
During the investigation, Miklusicak admitted to a sexual interest in girls who are nine to thirteen years old and to viewing child pornography on a weekly basis. The images found on his laptop included some depicting prepubescent children engaging in sexual acts.
“There is perhaps no better indicator of the impending danger posed by a known pedophile than his decision to seek out images of children being abused,” Acting U.S. Attorney Birge said. “Incapacitation of recidivist sex offenders is critical to the protection of the kids in our community.”
“Miklusicak’s repeat sexual offenses make him an extreme danger to our youth. This sentencing will ensure that he no longer has access to children in any way,” said Steve Francis, Acting Special Agent in Charge of Homeland Security Investigations (“HSI”) Detroit. “The combined efforts of HSI and our partners continue to form a formidable barrier between predators and our children.”
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutors’ offices, the Internet Crimes Against Children task force, and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
HSI developed the investigation, and Assistant U.S. Attorney Justin M. Presant prosecuted the matter.
END
Cedar Hill, Texas, Man Sentenced to 24 Months in Federal Prison for Making a False Statement in a Bankruptcy FilingRead the Press Release
DALLAS — Haywood Bernard Hall, 35, of Cedar Hill, Texas, was sentenced today by U.S. District Judge Barbara M.G. Lynn to serve 24 months in federal prison for making a false statement under penalty of perjury in a filing in a bankruptcy document, announced U.S. Attorney John Parker of the Northern District of Texas. Judge Lynn ordered Hall to surrender to the Bureau of Prisons on June 20, 2017.
On April 22, 2014, Hall was charged with four felony counts all related to the filing of a bankruptcy case in November 2010. The indictment also included allegations that Hall made false statements about his employment and used a false social security number in another bankruptcy case filed in July 2007. In May 2016, Hall pleaded guilty to Count Two of the indictment which charged Hall with making a false statement under penalty of perjury. According to documents filed in the case, Hall filed several bankruptcy related documents in November 2010 with the U.S. Bankruptcy Court in the Northern District of Texas. When Hall filed these bankruptcy papers, he knowingly and fraudulently made a material false statement under the penalty of perjury when Hall caused a “Statement of Social Security,” (Form B21) to be filed that falsely represented that the social security number listed on the Form B21 was Hall’s lawfully assigned social security number. At the conclusion of the evidence at today’s sentencing hearing, Judge Lynn stated that defendant Hall had demonstrated a repeated history of making false statements and that defendant Hall’s explanations for his criminal conduct were not credible.
This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas. This defendant is the 16th defendant convicted since August 2013 as part of that initiative.
Social Security Administration, Office of the Inspector General investigated the case. Assistant U.S. Attorney David Jarvis prosecuted.
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Canadian Man Pleads Guilty in Connection with Trafficking $120,000,000.00 Worth of CocaineRead 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 Harinder Dhaliwal, 47, of Brampton, Ontario, Canada, pleaded guilty to conspiracy to export from the United States five kilograms or more of cocaine before Senior U.S. District Judge William M. Skretny. The charges carry a mandatory minimum sentence of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that between 2006 and May 2011, Dhaliwal conspired with others to smuggle cocaine into Canada from the United States and marijuana and ecstasy into the United States from Canada via several international bridges including those in the Buffalo-Niagara region. As part of his plea agreement, Dhaliwal admitted to being part of an international conspiracy that trafficked more than 3,000 kilograms of cocaine, most of it through the Western District of New York, worth an estimated $120,000,000.00.Through the course of the investigation, United States law enforcement officers recovered a combined 230 kilograms of cocaine. Of that amount, 123 kilograms of cocaine, which represents the largest seizure arising from a single investigation in the District’s history, were obtained through two separate seizures occurring at the Lewiston-Queenston Bridge and in Geneva, NY. The remaining 107 kilograms were seized in California.
Also charged in the conspiracy were Ravinder Arora, Michael Bagri, Parminder Sidhu, Alvin Randhawa, Gursharan Singh, and Huy Hoang Nguyen. All defendants have been convicted.
The defendants utilized tractor-trailers that contained false compartments within the floor of tractor-trailers. Dhaliwal and others purchased steel tubing, kick plates and other supplies to fabricate the false compartments in several tractor-trailers. In addition to cocaine, the tractor-trailers were used to transport ecstasy and hundreds of pounds of marijuana into the United States from Canada. Drug ledgers seized during the investigation detailed approximately a dozen smuggling trips, during late 2009 to September 2010, involving approximately 1,617 kilograms of cocaine being transported from the United States, through the Western District of New York, into Canada.
The plea is the result of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge James C. Spero; Officers from the United States Customs and Border Protection, under the direction of Rose Hilmey, Director of Field Operations; the Peel Regional Police Department, under the direction of Chief Jennifer Evans; the Canada Border Services Agency, under the direction of Rick Comerford, Regional Director General, Southern Ontario Region; and the Toronto Police, under the direction of Chief William Blair.
Sentencing is scheduled for August 16, 2017, at 2:00 p.m. before Judge Skretny.
Burneyville Man Pleads Guilty to Possession of Destructive DeviceRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that JACOB RHETT HOLLAND, age 24, of Burneyville, Oklahoma, pled guilty to POSSESSION OF UNREGISTERED FIREARM (DESTRUCTIVE DEVICE), in violation of Title 26, United States Code, Sections 5861(d), 5841 and 5871, punishable by not more than 120 months imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that on or about December 25, 2016, within the Eastern District of Oklahoma, the defendant, did knowingly possess a destructive device, which is a firearm, as defined in Title 26, United States Code, Section 5845, not registered to him in the National Firearms Registration and Transfer Record.
The charge arose from an investigation by the Love County Sherriff’s Office, the Oklahoma Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Dean Burris represented the United States.
Bureau of Prisons Employee Admits to Providing Marijuana to PrisonerRead the Press Release
CLARKSBURG, WEST VIRGINIA – Cody Tyler Layman of Terra Alta, West Virginia, pled guilty to providing an inmate with marijuana, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Layman, age 32, pled guilty to one count of “Introduction of a Prohibited Object - Marijuana.” Layman admitted to providing an inmate with marijuana at the United States Penitentiary Hazelton on August 27, 2016.
Layman resigned from his position at the USP during the investigation.
Layman faces up to five years and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Andrew R. Cogar is prosecuting the case on behalf of the government. The Department of Justice, Office of Inspector General investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Broken Arrow Man Sentenced to 51 Months for Possession of Materials Involving Sexual Exploitation of MinorsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that CODY LANE PAX, age 20, of Broken Arrow, Oklahoma, was sentenced to 51 months imprisonment, and 10 years of supervised release for POSSESSION OF CERTAIN MATERIAL INVOLVING THE SEXUAL EXPLOITATION OF MINORS, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and 2252(b)(2).
The Indictment alleged that between in or about November 2015 and on or about March 9, 2016, in the Eastern District of Oklahoma, the defendant, did knowingly possess, attempt to possess and access with intent to view matters which contained visual depictions, as that term is defined in Title 18, United States Code, Section 2256(5), the production of said visual depictions involved the use of minors engaging in sexually explicit conduct, as that term is defined in Title 18, United States Code, Sections 2256(2)(A)-(B), and said visual depictions were of such sexually explicit conduct and had been transported in interstate commerce by computer.
The charge arose from an investigation by the Federal Bureau of Investigation.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Edward Snow represented the United States.
Aurora Oregon Man Sentenced to 39 Months in Prison for Mail TheftRead the Press Release
PORTLAND, Ore. – On April 12, 2017, Gregory Allen Rathkey, 38, was sentenced by U.S. District Court Judge Michael W. Mosman to 39 months in federal prison for conspiracy to steal mail, possession of a counterfeit postal service "arrow" key, unauthorized use of a credit card and aggravated identity theft. Upon his release from prison, Rathkey will be on supervised release for three years.
Beginning in November 2015 and continuing until April 1, 2016, Rathkey and others engaged in a conspiracy to steal over 100 pieces of mail, including credit cards, checks and packages delivered to 77 victims in the greater Portland area. Rathkey used counterfeit postal arrow keys and other tools to access locked mailboxes in various neighborhoods. He then activated victims’ credit cards stolen from the mail and used them to purchase goods, gift cards and other preloaded debit cards.
This case was investigated by the United States Postal Inspection Service and was prosecuted Quinn P. Harrington, Assistant United States Attorney for the District of Oregon.
Albuquerque Man Facing Federal Bank Robbery ChargesRead the Press Release
ALBUQUERQUE – A U.S. Magistrate Judge sitting in Albuquerque, N.M., yesterday found probable cause to support a criminal complaint charging Isaac Joseph Dodge, 41, of Albuquerque, with armed bank robbery offenses. During the proceedings, Dodge waived his right to a detention hearing and was ordered to remain in custody pending trial.
Dodge was arrested on April 13, 2017, on a criminal complaint charging him with committing two armed bank robberies in Bernalillo County, N.M. The complaint alleges that Dodge robbed the BBVA Compass Bank located at 1201 San Pedro Drive NE in Albuquerque on March 7, 2017. According to the complaint, Dodge robbed the bank by brandishing a handgun, restraining a bank customer against her will while holding a gun to her head, and demanding money from two bank tellers. The complaint also alleges that Dodge robbed the US Bank branch located at 1418 Carlisle Boulevard NE in Albuquerque on April 4, 2017.
If convicted, Dodge faces a maximum penalty of 25 years in federal prison on each armed bank robbery charge. If the court determines that Dodge is subject to the three strikes enhancement based on his prior felony convictions, he faces a mandatory term of life imprisonment upon conviction. Charges in criminal complaints 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 the FBI and the Albuquerque Police Department. Assistant U.S. Attorney Howard R. Thomas is prosecuting the case under 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 work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Additional Charge Against Maryland Man for Enticing a Minor for SexRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Maryland man previously charged with enticing a minor to engage in illicit sexual activity was indicted by a federal grand jury today.
William Lee Dela Cruz, 22, of Maryland, was charged in a two-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Dela Cruz on April 10, 2017, and includes an additional charge. Dela Cruz remains in federal custody pending a detention hearing.
Today’s indictment charges Dela Cruz with traveling across state lines to engage in illicit sexual conduct with a minor. The indictment also contains the original charge of enticing a minor to engage in illegal sexual activity.
According to an affidavit filed in support of the original criminal complaint, an Amber Alert was issued for the 12-year-old victim, identified in court documents as “Jane Doe,” on Sunday, April 9, 2017. Members of the public contacted law enforcement in response to the Amber Alert and she was recovered in Wentzville, Mo., the same day. Dela Cruz was arrested by Wentzville police officers.
Jane Doe told investigators she had been involved in an online relationship with Dela Cruz since November 2016 (when she was 11 years old). They communicated through telephone, Skype, Facebook Messenger and Discord (an application that provides free voice and text options, especially for communications between individuals involved in the gaming culture). Jane Doe stated she met Dela Cruz online through the computer game Onigiri, a multi-player fantasy online role-playing game.
On Saturday, April 6, 2017, Dela Cruz and his brother (who has not been charged) drove from Maryland to Missouri to pick up Jane Doe with the intent of driving her back to Maryland, according to the affidavit.
During the drive back to Maryland, the affidavit says, an argument between the brothers occurred. As a result, Dela Cruz’s brother dropped them off at a service station and drove away. Dela Cruz and Jane Doe attempted to obtain a room at the Hampton Inn in Wentzville but did not have sufficient funds for a room. Instead, they slept on a couch in the lobby of the hotel.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by the FBI, the Blue Springs, Mo., Police Department and the Wentzville, Mo., Police Department.
Tuesday 18 April 2017
Wilmington Man Sentenced to 12 Years for Heroin and Fentanyl DistributionRead the Press Release
GREENVILLE – The United States Attorney’s Office announced that on April 12, 2017 in Federal court, Senior United States District Judge Malcolm J. Howard sentenced TROY AHKEEM WILSON, 38, of Wilmington to 144 months imprisonment, followed by 5 years of supervised release.
WILSON was named in a two-count Superseding Indictment filed on September 21, 2016, and pled guilty to Possess with the Intent to Distribute a Quantity of Heroin and Possess with the Intent to Distribute 40 Grams of More of Fentanyl on January 12, 2017.
The basis of his charges stemmed from two incidents in February and April of 2016. On February 3, 2016, officers from the Duplin County Sheriff’s Office conducted a traffic stop on a vehicle driven by WILSON. WILSON and a passenger in the vehicle gave consent for the vehicle to be searched. During the search of the vehicle, officers observed an off-white powdery substance on WILSON’s hands and coat and seized an open plastic bag containing .81 gram of heroin on the ground where WILSON had been sitting. WILSON and the passenger were arrested and transported to jail.
Upon being searched at the jail, a small plastic package containing 16.73 grams of heroin was located in the passenger’s bra. She told law enforcement officers that she and WILSON drove to New York where WILSON met a man in order to purchase heroin. On the trip back from New York to Wilmington, WILSON possessed three glove “fingers” of heroin and gave her one. Law enforcement officers later searched the police vehicle used to transport WILSON to jail and located another small plastic package containing 13.18 grams of heroin.
On April 29, 2016, officers from the Brunswick County Sheriff’s Office conducted a traffic stop on a vehicle driven by WILSON. Upon approach, the officer smelled marijuana coming from the vehicle. A search of the vehicle resulted in the seizure of three small bags of marijuana, five bags of heroin banded together, and a large bag containing several individual bags of fentanyl, and other drug paraphernalia. The amount of drugs seized from the vehicle was 95.70 grams of fentanyl and 3.48 grams of a fentanyl and heroin mixture. WILSON was arrested and transported to jail.
Fentanyl is an extremely dangerous drug to law enforcement officers and, if improperly handled, it has deadly consequences. According to the DEA, it is 40 to 50 times stronger than street-level heroin. A very small amount ingested or absorbed through the skin can kill. For more information about this dangerous drug, you can go to this link https://ndews.umd.edu/sites/ndews.umd.edu/files/DEA%20Fentanyl.pdf.
Based on the investigation, WILSON is accountable for approximately 99.18 grams of fentanyl, 30.94 grams of heroin, 14 grams of marijuana, and 0.4 gram of crack cocaine.
This case was investigated by the FBI’s Coastal Carolinas Criminal Enterprise Task Force consisting of the FBI’s Wilmington Resident Agency, the Brunswick County Sheriff’s Office, the New Hanover County Sheriff’s Office, and the North Carolina State Bureau of Investigation. Additional assistance was provided by the Duplin County Sheriff’s Office. Assistant U.S. Attorney Laura Howard prosecuted the case on behalf of the government.
Upshur County Woman Sentenced for Federal ConspiracyRead the Press Release
TYLER, Texas - A 38-year-old Gilmer, Texas woman has been sentenced to federal prison following a lengthy investigation into a synthetic drug operation in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Shanna Peek Tidwell pleaded guilty on Dec. 6, 2016, to conspiracy to commit offenses against the United States and was sentenced to 30 months in federal prison today by U.S. District Judge Ron Clark. Assets to be forfeited by the defendant included U.S. currency and bank accounts totaling over $1.2 million, real property, precious metals, two airplanes, six automobiles, other vehicles, and firearms.
On Dec. 3, 2014, a combined task force of federal, state and local law enforcement executed federal arrest warrants and search warrants in Longview, Texas as a result of an investigation by the Drug Enforcement Administration (DEA) Tyler Task Force. In April 2014, law enforcement agencies, initiated an Organized Crime Drug Enforcement Task Force (OCDETF) investigation into a synthetic drug trafficking organization based in the Gregg County, Texas area. This investigation involved extensive surveillance and controlled purchases of controlled substances, controlled substance analogues, and drug paraphernalia.
The operation resulted in the arrest of Tidwell, her husband, Jeremy Chad Tidwell, 41, of Gilmer, and brother-in-law, Brian Tidwell, 45, of Arlington, Texas. Four retail stores, all located in Longview, were searched as part of the law enforcement operation. Over $1.2 million, including in excess of $450,000 in cash, multiple vehicles, and large quantities of synthetic drugs were seized.
The defendants were indicted in a superseding indictment by a federal grand jury on Feb. 19, 2015. Charges included conspiracy to distribute and possess with intent to distribute Schedule I controlled substances and controlled substance analogues, conspiracy to commit offenses against the United States, conspiracy to sell and offer for sale drug paraphernalia, conspiracy to commit money laundering, and maintaining a place for the distribution of a controlled substance or controlled substance analogue.
This case is the result of an extensive joint investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The DEA Task Force in Tyler includes officers from the Gregg County Sheriff’s Office, Henderson County Sheriff’s Office, Van Zandt County Sheriff's Office, Kilgore Police Department, Smith County Sheriff’s Office, and Upshur County Sheriff’s Office, as well as DEA Special Agents.
Other agencies assisting in the joint investigative effort included the U.S. Attorney’s Office - Eastern District of Texas, DEA Tyler Task Force, Gregg County Sheriff’s Office, Gregg County Organized Drug Enforcement Unit (CODE), Longview Police Department, Upshur County Sheriff’s Office, Kilgore Police Department, Lakeport Police Department, Gladewater Police Department, Arkansas Attorney General’s Office, and the U.S. Marshals Service.
This case was prosecuted by Assistant U.S. Attorneys Mary Ann Cozby.
Upshur County Woman Sentenced for Federal ConspiracyRead the Press Release
TYLER, Texas - A 38-year-old Gilmer, Texas woman has been sentenced to federal prison following a lengthy investigation into a synthetic drug operation in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Jeremy Chad Tidwell pleaded guilty on Dec. 6, 2016, to conspiracy to commit offenses against the United States and was sentenced to 30 months in federal prison today by U.S. District Judge Ron Clark. Assets to be forfeited by the defendant included U.S. currency and bank accounts totaling over $1.2 million, real property, precious metals, two airplanes, six automobiles, other vehicles, and firearms.
On Dec. 3, 2014, a combined task force of federal, state and local law enforcement executed federal arrest warrants and search warrants in Longview, Texas as a result of an investigation by the Drug Enforcement Administration (DEA) Tyler Task Force. In April 2014, law enforcement agencies, initiated an Organized Crime Drug Enforcement Task Force (OCDETF) investigation into a synthetic drug trafficking organization based in the Gregg County, Texas area. This investigation involved extensive surveillance and controlled purchases of controlled substances, controlled substance analogues, and drug paraphernalia.
The operation resulted in the arrest of Tidwell, her husband, Jeremy Chad Tidwell, 41, of Gilmer, and brother-in-law, Brian Tidwell, 45, of Arlington, Texas. Four retail stores, all located in Longview, were searched as part of the law enforcement operation. Over $1.2 million, including in excess of $450,000 in cash, multiple vehicles, and large quantities of synthetic drugs were seized.
The defendants were indicted in a superseding indictment by a federal grand jury on Feb. 19, 2015. Charges included conspiracy to distribute and possess with intent to distribute Schedule I controlled substances and controlled substance analogues, conspiracy to commit offenses against the United States, conspiracy to sell and offer for sale drug paraphernalia, conspiracy to commit money laundering, and maintaining a place for the distribution of a controlled substance or controlled substance analogue.
This case is the result of an extensive joint investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The DEA Task Force in Tyler includes officers from the Gregg County Sheriff’s Office, Henderson County Sheriff’s Office, Van Zandt County Sheriff's Office, Kilgore Police Department, Smith County Sheriff’s Office, and Upshur County Sheriff’s Office, as well as DEA Special Agents.
Other agencies assisting in the joint investigative effort included the U.S. Attorney’s Office - Eastern District of Texas, DEA Tyler Task Force, Gregg County Sheriff’s Office, Gregg County Organized Drug Enforcement Unit (CODE), Longview Police Department, Upshur County Sheriff’s Office, Kilgore Police Department, Lakeport Police Department, Gladewater Police Department, Arkansas Attorney General’s Office, and the U.S. Marshals Service.
This case was prosecuted by Assistant U.S. Attorneys Mary Ann Cozby.
Two Local People Sentenced on Dunbar Armored Truck RobberyRead the Press Release
St. Louis, MO – Charles Johnson and Shayne Kier Jones were both sentenced to 141 months in prison each for their involvement in the April 4th, 2016 armed robbery of a Dunbar Armored truck.
According to court documents, Johnson and Jones robbed Dunbar Armored Company shortly after a money pickup. The money was taken from a Dunbar Armored employee at gun point. Jones was employed by Dunbar, and his duty was to exit the armored truck to do the pickup and delivery of US currency. A second employee (CT) was assigned as the driver. At the end of the day’s route CT was told by Jones that he, Jones, would drive the armored truck back to Dunbar. Jones then decided to stop for gas. After getting the gas, Jones acted as if he was lost and stopped the truck at Antelope and Switzer in the City of St. Louis. He got out of the truck and two individuals with guns rushed him and demanded the money in the truck. Jones threw the money bags out the back door to Johnson and another man (JB). CT said that there was a white Buick vehicle right next to the armored car. CT and Jones then drove the truck from the scene of the armed robbery.
On April 14th, the owner of the white vehicle, JB, which was used in the robbery was interviewed and admitted his involvement in the robbery. He told law enforcement that Johnson contacted him with the concept of the robbery. Johnson told JB that he had a cousin who worked for the armored truck company and would assist in the robbery. JB’s role was to be the driver of the getaway car, the white car. On April 4th, JB and Johnson drove to the site they had picked out for the robbery. Jones drove the armored truck to that location and got out of the truck which allowed JB and Johnson to approach and demand money. Jones was the inside employee. After the robbery, JB and Johnson drove the white car loaded with the stolen money to JB’s residence where the money was transferred to another car. They then drove to JB’s mother’s house and divided the stolen money into three shares. As Jones was still being interviewed by law enforcement, Johnson took two shares of the stolen money for himself and Jones.
Johnson, 36, and Jones, 30, both of St. Louis City, pled in December to one count each of conspiracy to interfere with commerce by threats of violence and use of firearm to commit that offense, and appeared today for sentencing before United States District Judge Catherine D. Perry.
This case was investigated by the St. Louis Metropolitan Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney’s Office.
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Three Indicted in Florida for Using Stolen IDs to File Tax Returns Claiming More Than $6.8 Million in Fraudulent RefundsRead the Press Release
A federal grand jury returned an indictment on Feb. 9, which was unsealed today, charging three men in Florida, with conspiracy, wire fraud and aggravated identity theft, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida.
According to the indictment, from approximately 2008 through January 2015, in Broward and Miami-Dade counties, Florida, Israel Tassy, Evens Julien, and Jean Leroy Destine, used stolen IDs, including the personal identifying information of deceased individuals, to file over 2,000 tax returns with the Internal Revenue Service (IRS) claiming more than $6.8 million in fraudulent refunds. The indictment alleges that Tassy, Julien and Destine recruited and paid others to obtain Electronic Filing Identification Numbers (EFINs) from the IRS, in their names and the names of businesses, and used these EFINs to file the fraudulent returns. The indictment also charges that in approximately February 2011, Julien registered A Tax Financial Services Inc., as a for-profit corporation with the state of Florida, and used it to file fraudulent returns as well.
Julien and Destine were arrested earlier today and Tassy is still being sought.
An indictment is not a finding of guilt. It merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Tassy, Julien and Destine face a statutory maximum sentence of five years in prison on the conspiracy charge, a maximum sentence of 20 years in prison for each count of wire fraud and a mandatory sentence of two years in prison for each count of aggravated identity theft. In addition, all three defendants face a term of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Greenberg thanked special agents of the IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Neil Karadbil and Assistant Chief Greg Tortella of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Texas Man Sentenced for Transportation of Child PornographyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that JAMES PUCKETT, age 46, of Livingston, Texas, was sentenced today for crimes involving the sexual exploitation of children.
U.S. District Judge Jay Zainey sentenced PUCKETT to five years’ incarceration, followed by fifteen years of supervised release. PUCKETT will also be required to register as a sex offender pursuant to the Sex Offender Registration and Notification Act.
According to court documents, PUCKETT, who worked as a crewman on an offshore vessel, transported child pornography from Texas to Louisiana in April 2016. HSI computer forensic examiners located images depicting the sexual victimization of children on the defendant’s Padfone X Mini after he was encountered by federal agents at Port Fourchon. The images transported by PUCKETT contained images depicting the rape, bondage, and sexual exploitation of pre-pubescent children.
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.”
Acting U.S. Attorney Evans praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U. S. Attorney Brian M. Klebba.
Tampa Woman Sentenced to Prison for Stolen Identity Refund FraudRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody, Jr. today sentenced Melissa Hayes (36, Tampa) to 27 months in federal prison for conspiracy to commit theft of government property and identity theft. She pleaded guilty on November 1, 2016.
According to court documents, Hayes conspired with others to commit stolen identity refund fraud by depositing U.S. Treasury checks in the names of others into a business bank account that had been established for her restaurant/food business. She then withdrew the funds the same day or the following day, spent the money on point-of-purchase items, or transferred the money to her personal bank account. The Treasury checks were fraudulently endorsed with the name of the intended recipient (the victim) and the name of Hayes’s business prior to being deposited. Four of the persons named on these Treasury checks were deceased.
Between January and June 2012, Hayes deposited 22 fraudulent government and tax refund checks, totaling over $160,000, into her business bank account. She used these fraudulently obtained funds for personal use and shared them with her co-conspirators.
This case was investigated by the Internal Revenue Service - Criminal Investigation. It was prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Tampa Man Pleads Guilty to Firearms OffensesRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Aaron Clinton Westbrooks (41, Tampa) today pleaded guilty to three counts of being a felon in possession of a firearm and ammunition. He faces a maximum penalty of 10 years in federal prison on each count. A sentencing date has not yet been set.
According to court documents, on three separate occasions, Westbrooks sold pistols and ammunition to an undercover detective. These transactions took place at various locations in Tampa. At the time of the offenses, Westbrooks had several prior felony convictions and therefore is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Taylor G. Stout.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney Muldrow, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Tampa Man Charged with Trafficking in Credit Card Manufacturing EquipmentRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of an
indictment charging Joseph Xavier Murphy (27, Tampa) with trafficking in credit card manufacturing equipment. If convicted, he faces a maximum penalty of 15 years in federal prison. Murphy was arrested by law enforcement this morning. He made his initial appearance in federal court and was temporarily detained. A detention hearing and arraignment are set for 1:30 p.m. on Friday, April 21, 2017.An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Starke Police Department and the U.S. Secret Service - Jacksonville Field Office. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Springfield Man Pleads Guilty to Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man pleaded guilty in federal court today to his role in a conspiracy to distribute large quantities of methamphetamine that was shipped from California.
John R. Waits, 46, of Springfield, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a Dec. 9, 2015, federal indictment.
Co-defendants Michael E. Ford, 37, and Lisa Renae Thompson, 39, both of Springfield, have also pleaded guilty to their roles in the drug-trafficking conspiracy. Thompson was sentenced to 11 years and three months in federal prison without parole. Ford, who also pleaded guilty to possessing a firearm in furtherance of that drug-trafficking conspiracy, awaits sentencing.
By pleading guilty today, Waits admitted that he participated in a conspiracy to distribute methamphetamine from June 1 through Sept. 11, 2015. A co-conspirator shipped methamphetamine from California to Springfield in two- to two-and-a-half-pound increments to Thompson. Thompson picked up the packages at various hotels in the Springfield area then contacted Ford. Ford picked up the methamphetamine from Thompson and distributed it to others.
After a few days, Ford would then meet with Thompson and give her $10,800. Thompson kept $800 and sent $10,000 to the co-conspirator in California.
Thompson admitted that she received approximately 24 pounds of methamphetamine, which she gave to Ford. Thompson also kept some of the methamphetamine and sold it directly to others with the assistance of Waits. Today’s plea agreement cites several instances in which Waits sold methamphetamine to an undercover agent. He participated in the conspiracy for six weeks and is responsible for the distribution of 12 pounds of methamphetamine.
After Thompson was arrested on Sept. 11, 2015, Ford began receiving methamphetamine shipments from the co-conspirator in California. On Sept. 30, 2015, the Springfield Police Department received a phone call from a FedEx employee about a suspicious package. Police officers delivered the 2.2-pound package of methamphetamine to Ford at a Springfield residence, where he was arrested. Ford had a Ruger .22-caliber handgun in his possession.
Under federal statutes, Waits is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants 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 Abram McGull II. It was investigated by the Drug Enforcement Administration and the Springfield, Mo., Police Department.
South Florida Man Sentenced to 60 Months in Prison for Tax Return FraudRead the Press Release
TALLAHASSEE, FLORIDA – Roosevelt Williams Jr., 25, of Miami, Florida, has been sentenced to 60 months in federal prison after pleading guilty in December 2016 for crimes arising from the filing of fraudulent federal income tax returns. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Consecutive sentences were imposed of 36 months in custody on each of 12 counts of fraudulently taking federal funds and 24 months for using the identities of other persons in the scheme. Williams was also ordered to pay $207,882 in restitution.
Evidence presented in court reflected that in October 2011, Williams was caught on FSU’s campus with 14 debit cards in other people’s names. In July 2013, he was caught with 18 additional debit cards issued to people other than himself, as well as a loaded pistol and $14,300 in cash near the Atlanta airport. He was stopped in Atlanta for driving more than 30 mph above the speed limit. Each of the debit cards reflected a fraudulent attempt to obtain a tax refund based upon another person’s identity. A laptop computer and documents seized in Atlanta contained more than 100 stolen identities, as well as numerous visits to tax return filing websites and to websites where details of identity could be verified.
U.S. Attorney Canova applauded the investigative agencies whose joint efforts led to this successful prosecution, including the Internal Revenue Service – Criminal Investigation, the United States Secret Service, the Florida State University Police Department, the Tallahassee Police Department, and the Clayton County Sheriff’s Office (Georgia). Mr. Canova noted that this was a timely reminder of the importance of filing accurate and honest income tax returns, and that efforts to steal federal funds have serious consequences. This case was prosecuted by Assistant U. S. Attorney Michael T. Simpson.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information OfficerSix More Aliens Indicted on Immigration and Fraud ViolationsRead the Press Release
RALEIGH – John Stuart Bruce, United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging RAUNEL BENITEZ-GOROSTIETA, age 42, of Mexico, ENRIQUE ESTRADA-NOYOLA, age 43, of Mexico, JONATAN GONZALEZ-VELASQUEZ, age 24, of Mexico, JORGE HERNANDEZ-BARAHONA, age 41, of Mexico, SILVESTER ROGEL-GANDARIA, age 34, of Mexico, and JOSE ALBERTO TREVINO-CHAVEZ, age 58, of Mexico, with Illegal Reentry of a Deported Alien.
If convicted of Illegal Reentry of a Deported Alien, ESTRADA-NOYOLA, GONZALEZ-VELASQUEZ, HERNANDEZ-BARAHONA, and ROGEL-GANDARIA, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
TREVINO-CHAVEZ is alleged to have been previously deported subsequent to a felony conviction (trafficking in marijuana by possession). Therefore, if convicted, he faces a maximum imprisonment term of 10 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
BENITEZ-GOROSTIETA is alleged to have been previously deported subsequent to an aggravated felony conviction (voluntary manslaughter). Therefore, if convicted, he faces a maximum imprisonment term of twenty years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by the Department of Homeland Security.
Sierra County Man Sentenced for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Ruben David Martinez, III, 29, of Truth or Consequences, N.M., was sentenced yesterday in federal court in Las Cruces, N.M., to 39 months in prison for his conviction on methamphetamine trafficking charges. Martinez will be on supervised release for three years following his prison sentence.
Martinez was arrested in May 2016, and was charged by criminal complaint with possessing methamphetamine and heroin with intent to distribute. According to the criminal complaint, Martinez committed the offenses on May 16, 2016, in Sierra County, N.M., by throwing plastic bags containing more than 40 grams of methamphetamine and 9.22 grams of heroin from his vehicle while fleeing from law enforcement officers who were attempting to execute a traffic stop on his vehicle. After the officers arrested Martinez, they executed a search warrant on his vehicle and residence and seized an additional 69.8 grams of methamphetamine, pills, multiple cellular phones, cash and drug paraphernalia.
On Aug. 30, 2016, Martinez pled guilty to a felony information charging him with possessing methamphetamine with intent to distribute. In entering the guilty plea, Martinez admitted that on May 16, 2016, he possessed approximately 49 grams of methamphetamine when Sierra County Sheriff’s Office deputies initiated a traffic stop on his vehicle. Martinez also acknowledged that he intended to distribute the methamphetamine to other people.
This case was investigated by the Las Cruces office of Homeland Security Investigations, the New Mexico State Police and the Sierra County Sheriff’s Office. Assistant U.S. Attorney Matthew Beck of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Seymour Man Sentenced to Federal Prison on Child Pornography ChargeRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on April 17, 2017, Travis M. Kamps (age: 25) of Seymour, Wisconsin, was sentenced by Chief District Judge William C. Griesbach to 5 years in federal prison for receipt of child pornography in violation of Title 18 United States Code Section 2252A(a)(2). Upon his release the defendant will be on federal supervised release for 5 years and will have to register as a sex offender in the jurisdiction in which he resides.
Kamps used his cellular telephone and social media platforms to exchange texts, instant messages, and sexually explicit images with several underage girls throughout the United States. Ultimately, he pled guilty and was convicted of requesting and receiving five sexually explicit videos from a 16-year-old victim located in Illinois.
In pronouncing sentence, Chief Judge Griesbach expressed skepticism that Kamps, and others who have committed similar crimes, would have ever have engaged in such highly sexualized conversations or requested sexually explicit photos and videos face-to-face with their victims, but rather relied on the anonymity that the internet and social media provide. He further pointed to the need to send a strong message of deterrence to Kamps and others, to discourage similar behavior in the future.
The case was investigated by the Seymour Police Department, the Wisconsin Internet Crimes Against Children (ICAC) Task Force, and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Daniel R. Humble.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the 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.
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SCM True Air Technologies, of Ohio and Kentucky, and Its Former Company President - Guilty of Delivering Misbranded Medical Devices from Unregistered Facilities to A Georgia V.A. Medical Center and Obstructing an FDA Investigation into Their ConductRead the Press Release
Defective and unusable bariatric beds were produced in unregistered facilities by the company
Company agrees to pay full restitution and a fine of $500,000
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr. today announced the guilty pleas to a criminal information made on April 17, 2017 by SCM True Air Technologies, Inc. and the former company president John N. Keesaer, in United States District Court before Magistrate Judge Dave Whalin. SCM True Air pled guilty to one count of operating an establishment that manufactured medical devices without having properly registered that establishment as required by law. Keesaer pled guilty to one count of obstruction of an FDA investigation and one count of introducing misbranded medical devices into commerce.
“This company and its former president sold defective and unusable beds to the VA,” stated U.S. Attorney John Kuhn. “Our veterans deserve far better consideration and treatment. These defendants will be held accountable for breaking the law then attempting to cover that up.”
"Defrauding VA by providing unregistered and substandard bariatric beds for use by our nation's veterans is inexcusable," said Kim Lampkins, Special Agent in Charge, U.S. Department of Veterans Affairs, Office of Inspector General, Mid-Atlantic Field Office. “This investigation demonstrates that the VA OIG, working with our colleagues in law enforcement, will aggressively pursue those who place our nation’s veterans at risk for their own private gain.”
“FDA’s ability to protect the public health relies on regulated industries fulfilling their responsibilities to comply with FDA requirements,” said Mark S. McCormack, Special Agent in Charge, U.S. FDA Office of Criminal Investigations’ Metro Washington Office. “Those who attempt to circumvent FDA’s regulatory process put consumers’ health at risk and this will not be tolerated.”
According to separate plea agreements, beginning at least as early as 2010 and continuing until September 2012, John N. Keesaer, acting as president of SCM True Air, delivered bariatric hospital beds, which are Class II medical devices, that were misbranded due to the fact that they were manufactured in an establishment that was not registered with the FDA as required by law. Further, on January 29, 2014, Keesaer corruptly obstructed an FDA compliance inspection regarding SCM True Air’s production methods including facilities that produced bariatric beds.
Specifically, while Keesaer was President of SCM True Air, the company’s manufacturing process for bariatric hospital beds involved establishments in both Roseville, Ohio, and Louisville, Kentucky, that the company had not properly registered with the FDA to produce Class II medical devices, despite the fact that Keesaer and the company had been previously advised on repeated occasions that such registration was required by law.
Starting in at least 2010, SCM True Air produced medical devices such as bariatric beds at its Louisville and Roseville establishments without properly registering the establishments with the FDA for over two and a half years. As a result of the fact that the bariatric beds were manufactured at establishments that were not duly registered with the FDA, those beds were misbranded in violation of federal law.
At Keesaer’s direction and under his supervision, SCM True Air then sold and delivered misbranded bariatric beds from its Louisville and Roseville establishments to purchasers throughout the
States. Keesaer personally participated in the delivery of misbranded bariatric beds from SCM True Air to various facilities.
In 2012, SCM True Air entered into a contract with the Department of Veterans Affairs to deliver 48 bariatric beds, mattresses and accessories to the Trinka Davis Veterans Village in Carrollton, Georgia, a unit of the Atlanta V.A. Medical Center. SCM True Air was paid $211,691.62 for the beds despite the fact that, unknown at the time to the Department of Veterans Affairs, those beds were produced by SCM True Air both using parts from the Louisville establishment and further manufactured in the Roseville establishment.
During the process of manufacturing the 48 bariatric beds for the contract with the Department of Veterans Affairs, Keesaer stated to others that the SCM True Air establishments were registered with the FDA when, as he then in fact knew, they were not. Further, upon delivery to the V.A. medical center in September 2012, the bariatric beds were substantially defective, as many of the beds had caulking and welding issues, rusting parts and dirt affixed to them. As a result of these defects, the beds were entirely unusable by the patients at the Veterans Village.
The FDA subsequently initiated a formal compliance investigation regarding SCM True Air’s alleged adulteration and misbranding of bariatric beds. During that investigation, Keesaer, acting as President of the company, intentionally obstructed the compliance investigation by making a materially false written statement in the course of that investigation.
If convicted at trial, Keesaer would face a combined maximum term of six years in prison, a maximum fine of the greater of $350,000 or twice the gross gain to the defendant or loss to victims resulting from his offense, and a four-year term of supervised release. If the company were convicted at trial it would face a maximum fine of the greater of $500,000 or twice the gross gain to the company or loss to victims resulting from its offense. Also, if convicted at trial, both Keesaer and the company would be obligated to pay restitution to any victims of their offenses.
According to the terms of its plea agreement, SCM True Air has agreed to pay restitution in the amount of $211,691.62 and a fine of $500,000. According to the terms of his plea agreement, Keesaer is jointly liable for the same amount of restitution, and the United States has agreed to recommend a sentence of probation and a fine at the time of his sentencing hearing.
Sentencing is scheduled before Senior District Judge Thomas B. Russell on July 17, 2017, in Louisville.
Assistant United States Attorneys Stephanie M. Zimdahl and H. Joseph Pinto III are prosecuting this case. The United States Food and Drug Administration Office of Criminal Investigations and Department of Veterans Affairs, Office of Inspector General, Mid-Atlantic Field Office, are investigating.
Runnells Couple Sentenced for Bankruptcy OffenseRead the Press Release
DES MOINES, IA – On April 18, 2017, Elizabeth Ann Thayer, age 61, of Runnells, Iowa, was sentenced by United States District Judge Stephanie M. Rose for concealing assets belonging to her bankruptcy estate, announced United States Attorney Kevin E. VanderSchel. She was sentenced to 32 months of probation, ordered to complete community service, and to pay $100 to the Crime Victims’ Fund.
On December 14, 2016, Judge Rose sentenced Elizabeth’s husband, George Bradley Thayer, age 66, for the same offense. He was ordered to serve 36 months of probation, to include one year in home confinement, and to pay $100 to the Crime Victims’ Fund.
On January 27, 2011, George and Elizabeth Thayer filed a joint individual Chapter 7 bankruptcy with the United States Bankruptcy Court for the Southern District of Iowa. On December 10, 2010, the Thayers conveyed 20 acres of farm property to a relative. In their bankruptcy filings, they knowingly failed to disclose their continuing interest in the land and knowingly failed to disclose the transfer of the property to a relative, despite their obligations to make both disclosures in the filings. On March 21, 2011, each falsely asserted to the bankruptcy trustee under oath that there had been no transfers of property to a relative within the last two years.
This case was investigated by the Office of the United States Trustee. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Prolific Possessor and Distribtor of Child Pornography SentencedRead 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 Alexander Burton Blake, 26, of Cheektowaga, NY, who was convicted of distribution and possession of child pornography, was sentenced to 40 months imprisonment with 10 years of supervised release. He was also ordered to pay restitution to his victims in the amount of $48,000 by Chief United States District Judge Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that the defendant was utilizing a peer-to-peer network to distribute child pornography. Several items of computer equipment seized from the defendant’s residence revealed that the equipment contained approximately 70,000 images of child pornography and 650 videos of child pornography.
The sentencing is the result of an investigation by Special Agents of the Federal Bureau of Investigation under the direction of Adam Cohen, Special Agent-in-Charge, along with the City of Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Cheektowaga Police Department, under the direction of Chief David Zack.
Pittsburgh Doctor and His Employee Charged with Illegal Rx Drug Distribution, Health Care FraudRead the Press Release
PITTSBUGH - Two Pittsburgh residents have been indicted by a federal grand jury on charges of distribution of Oxycodone, a Schedule II controlled substance, and Amphetamine, a Schedule II controlled substance, outside the usual course of professional practice, and health care fraud, Acting United States Attorney Soo C. Song announced today.
The 15-count indictment named Brent E. Clark, 55, a family care physician who practices in Pittsburgh, and Carl T. Wilson, age 49, an office employee of Clark, as the defendants.
According to the indictment, from February 26, 2015 through March 27, 2017, Clark distributed Oxycodone, a Schedule II controlled substance, on 13 occasions, and Amphetamine, a Schedule II controlled substance, on three occasions, outside the usual course of professional practice. The indictment also alleges that on March 27, 2017, Wilson knowingly, intentionally, and unlawfully possessed with intent to distribute and distributed oxycodone, a Schedule II controlled substance. The indictment further alleges that from February 2015 to February 2017, Clark knowingly and willfully executed, and attempted to execute, the above-described scheme to defraud and to obtain, by means of materially false and fraudulent pretenses, representations, and promises, money and property owned by and under the custody and control of United Health Care and Medicare, health care benefit programs, in connection with the payment for health care benefits, items and services.
For Brent E. Clark, the law provides for a maximum total sentence on all counts of incarceration of up to 270 months, a fine of $13,250,000, or both. For Carl T. Wilson, the law provides for a maximum total sentence of 20 years, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Cindy K. Chung is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Department of Health and Human Services, Office of Inspector General, and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Brent E. Clark and Carl T. Wilson.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Parker CPA Pleads Guilty to Wire Fraud and Aiding and Assisting in the Preparation of False Tax ReturnsRead the Press Release
DENVER – Don R. Iley of Parker, Colorado, pled guilty today before U.S. District Court Judge Christine M. Arguello to wire fraud and aiding and assisting in the preparation of false tax returns, the United States Attorney’s Office and IRS-Criminal Investigation announced. Iley was indicted by a federal grand jury in Denver on August 24, 2016, and is scheduled to be sentenced by Judge Arguello on July 13, 2017 at 3:00 p.m.
According to the indictment and plea agreement, from January 2009 through December 2015, Iley was the owner and operator of Iley and Associates (I&A), an accounting and tax preparation firm which provided services to more than 140 businesses in Colorado. For some of I&A clients, payroll accounting and payroll tax services were provided. The payroll tax services included the preparation of Forms 941, Employer’s Quarterly Federal Tax Returns, and then withdrawing and paying the required payroll taxes to the IRS on behalf of the clients.
Iley caused his staff to collect the necessary information from payroll clients to prepare Quarterly Federal Tax Returns. Iley also caused his staff to prepare an “ACH Deduction Report”, which identified the payroll client’s “Total Federal Payroll Tax liability” for each pay period. The ACH Deduction report also identified other amounts to be withdrawn from each payroll client’s bank account, such as the federal and state unemployment tax. The funds withdrawn from the client’s bank accounts were transferred to a bank account controlled solely by Iley.
Iley would then cause his employees to send the clients a cover letter falsely representing the Form 941 included in the letter was filed with the IRS and that Iley had paid or would pay the taxes. Instead, Iley retained the payroll tax monies from his payroll clients for whom he was responsible for paying such taxes. To facilitate his scheme, Iley prepared and signed on behalf of Iley & Associates false Form 941 tax returns claiming the payroll tax client had no payroll taxes due and owing. Iley then mailed the false tax returns to the IRS.
Iley kept the money he received that was intended for payroll taxes and used it for his own purposes. Iley used some of the money to, among other things, make $900,000 in accelerated principal payments for Iley’s home, pay for the design, construction, landscaping and furnishing of Iley’s residence, and make investments in businesses and retirement accounts. By Iley’s own estimate, he stole at least $11 million dollars during this time frame.
Wire fraud carries a penalty of not more than 20 years in federal prison, and a fine of up to $250,000 or twice the amount of gain or loss, whichever is greater. Aiding and assisting in the preparation of false tax returns carries a penalty of not more than 3 years in federal prison, and a fine of up to $250,000 or twice the amount of the gain or loss, whichever is greater.
This case is being investigated by the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant United States Attorney J. Chris Larson.
Oregon Woman Sentenced in East Texas Child Exploitation ConspiracyRead the Press Release
TYLER, Texas — A 35-year-old Medford, Oregon woman has been sentenced to federal prison for child exploitation violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Crystal Beam pleaded guilty on Nov. 14, 2016, to conspiracy to sexually exploit children and was sentenced to 216 months in federal prison today by U.S. District Judge Ron Clark. Beam will be required to register as a sex offender upon her release from federal prison.
According to information presented in court, between November 2014 and January 2015, Beam conspired and agreed with Brian Casper, 27, of Tyler, Texas to use minor children to engage in sexually explicit conduct for the purpose of producing visual depictions and transmitting live visual depictions of such conduct.
Casper also conspired and agreed with Taylor Keeth, 22, of Indianola, Iowa, and Lacy Brooks, 31, of Searcy, Arkansas, to use minor children to engage in sexually explicit conduct for the purpose of producing visual depictions and transmitting live visual depictions of such conduct.
Casper pleaded guilty on Nov. 16, 2016, to conspiracy to sexually exploit children. Keeth pleaded guilty on Dec. 7, 2016, to conspiracy to sexually exploit children. Brooks pleaded guilty on Jan. 10, 2017 in the Eastern District of Arkansas, to production of child pornography and distribution of child pornography.
“He who harms the child, shall have a millstone tied upon his neck and he shall be cast into the deepest part of the sea,” said Acting U.S. Attorney Brit Featherston. “Although we cannot cast anyone into the sea, it is, and shall remain the highest priority that those who harm a child shall be swiftly brought to justice and punishment shall be sought.”
On Apr. 10, 2017, Casper and Keeth were sentenced by Judge Clark. Casper was sentenced to 336 months in federal prison, and Keeth was sentenced to 282 months in federal prison. Brooks is awaiting sentencing.
This case was prosecuted 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 (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.
“These cases are heart wrenching for all involved, the child advocates, the families, the investigators, the prosecutors and the courts,” said Acting U.S. Attorney Featherston. “I applaud their resilience and fortitude in bringing these predators to justice.”
This case was investigated by the Federal Bureau of Investigation, Tyler Police Department, Port of Galveston Police Department, White County (Arkansas) Sheriff's Office, Indianola (Iowa) Police Department, and the Medford (Oregon) Police Department. This case is being prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld, in cooperation with Assistant U.S. Attorneys Erin O'Leary and Kristin Bryant of the Eastern District of Arkansas.
Orange County, Texas Man Sentenced for Drug TraffickingRead the Press Release
BEAUMONT, Texas – A 37-year-old Orange, Texas man has been sentenced to prison for federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Kenneth Martin, Jr., was found guilty by a jury on July 13, 2016 of conspiracy to possess with intent to distribute methamphetamine and was sentenced to 115 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, from September 2015 to February 2016, Martin conspired with others to distribute methamphetamine in and around the Orange County, Texas area. Evidence presented at trial indicated that Kenneth Martin, Jr., who was traveling with his cousin and co-defendant, Brandon Martin, were stopped by Orange County Sheriff's deputies for traffic violations. Brandon Martin, who was the driver of the vehicle, gave officers verbal consent to search the vehicle and officers located a magnetic key box under the left front wheel well. This is the same location from where officers observed Brandon Martin a few days earlier, retrieve suspected methamphetamine. Kenneth Martin, Jr. was searched and found to have a small amount of methamphetamine in his pocket and both Brandon and Kenneth Martin were arrested and taken to the Orange County Jail. Once at the jail, Kenneth Martin repeatedly advised officers that the substance found in the magnetic box was all his and Brandon had nothing to do with it.
This case is the result of an extensive joint investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This case was investigated by the Drug Enforcement Administration, the Orange County Sheriff’s Office and the Orange Police Department and prosecuted by Assistant U.S. Attorney Michelle S. Englade.
Ohio Man Sentenced to 10 Years in Federal Prison for Travel with Intent to Engage in Illegal Sexual ConductRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Michael L. Fischer, age 42, of Toledo, Ohio, today to 10 years in federal prison, followed by 20 years of supervised release, for travel with intent to engage in illicit sexual conduct. Fisher traveled from Ohio to Maryland to engage in sexual activity with a fifteen-year-old girl.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation - Baltimore; Special Agent in Charge Stephen D. Anthony of the Federal Bureau of Investigation – Cleveland, Ohio; Commissioner Kevin Davis of the Baltimore Police Department; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, in the summer of 2014, Fischer and the victim met online and communicated using chat rooms, social media, and telephone during the summer and fall of 2014. The victim told Fischer that she was 15 years old from their earliest communications, and prior to Fischer meeting the victim in person. In August and early September 2014, Fischer travelled from Ohio to Maryland and engaged in sexual activity with the girl. On September 19, 2014, Fisher and his wife travelled from Ohio to Maryland and picked the girl up near her home in the early morning of September 20, 2014. Fischer and his wife then transported the girl to Fischer’s home in Toledo. At the time, Fisher’s wife was not aware that Fisher had been engaging in sexual conduct with the victim. Between September 20 and 26, 2014, Fischer engaged in sexual conduct with the victim in Ohio.
On September 23, 2014, the Fischers were contacted by law enforcement regarding the victim’s whereabouts. According to his plea agreement, prior to meeting with law enforcement, the Fischers dropped the victim off at a store in Toledo. Fischer lied to law enforcement officers that he did not know where the victim was and suggested to law enforcement that he believed she may be in Florida. After the meeting, Fischer transported the victim from Ohio to Brighton, Michigan, and left the victim with one of his relatives. She was recovered by law enforcement officers two days later.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the “resources” tab on the left of the page.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children.
United States Attorney Rod J. Rosenstein commended the FBI Baltimore, Cleveland, Ohio and Detroit, Michigan Field Offices, the Baltimore Police Department, Maryland State Police, and the Toledo Child Exploitation Task Force for their work in the investigation, and thanked the Brighton, Michigan Police Department, the Livonia, Michigan Police Department and the Michigan State Police for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Ayn B. Ducao, who prosecuted the case.