Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Friday 14 April 2017
Tennessee Man Pleads Guilty to Unauthorized Access of Former Employer’s NetworksRead the Press Release
An Arlington, Tennessee man pleaded guilty today to intentionally accessing a competing engineering firm’s computer network without proper authorization in order to obtain proprietary information, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Lawrence J. Laurenzi of the Western District of Tennessee.
Jason Needham, 45, co-owner of HNA Engineering, pleaded guilty today before U.S. District Judge John T. Fowlkes Jr. of the Western District of Tennessee. Sentencing is set for July 14, 2017.
As part of his guilty plea, Needham admitted that, over a nearly two-year period, he repeatedly accessed the servers of Allen & Hoshall, his former employer, to download digitally rendered engineering schematics and more than 100 PDF documents containing project proposals and budgetary documents. Needham also admitted to accessing, on hundreds of occasions, the email account of a former colleague at Allen & Hoshall, which provided Needham access to the firm’s marketing plans, project proposals, company fee structures and the rotating account credentials for the company’s internal document-sharing system. According to the plea, Needham used his unauthorized access to view, download and copy proprietary business information worth approximately $425,000.
The FBI investigated the case. Assistant U.S. Attorney Debra L. Ireland of the Western District of Tennessee and Trial Attorney Timothy C. Flowers of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case.
Needham InformationTaunton Man Pleads Guilty to Multiple Child Enticement and Child Pornography ChargesRead the Press Release
BOSTON - A Taunton man pleaded guilty today in federal court in Boston to child exploitation and related offenses in connection with coercing seven minors to send sexually explicit images.
Joseph Debrum, 40, pleaded guilty to seven counts of coercion and enticement of a minor, six counts of sexual exploitation of children and two counts of distribution of child pornography. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for July 18, 2017.
Between May 2014 and March 2015, Debrum assumed fictitious online identities of either a 21-year-old woman or a 16-year-old woman to coerce and entice seven minor victims living in six states to engage in sexually explicit conduct. Debrum enticed the victims to send him pictures of the conduct over the internet, or he viewed the acts live online while taking photos on his cell phone. Debrum coerced the victims, whose ages ranged from 14 to 16-years-old, including threatening to expose the photos. Debrum also disseminated some of the photos, which constitutes distribution of child pornography. He sent photos of one victim to that victim’s parent, as well as photos of a second victim to a third victim. On April 2, 2015, Debrum was interviewed by law enforcement and admitted to assuming fictitious female identities while communicating online with the victims. He also admitted to asking them to take nude pictures and, in some cases, to do specific sexual acts.
Each charge of sexual exploitation provides for a mandatory minimum sentence of 15 years and no greater than 30 years in prison, a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. The charges of coercion and enticement of a minor provides for a mandatory minimum sentence of 10 years and no greater than a lifetime in prison, a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. The charges of distribution of child pornography provides for a mandatory minimum sentence of five years and no greater than 20 years in prison, a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistance was provided by the Taunton Police Department and Loudon County, Va., Sheriff’s Office. Assistant U.S. Attorneys Suzanne Sullivan Jacobus and Anne Paruti of Weinreb’s Major Crimes Unit are prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Tallahassee Man Sentenced to 60 Months in Prison for Receipt of Child PornographyRead the Press Release
TALLAHASSEE, FLORIDA – Antonio Fuguet, 36, of Tallahassee, was sentenced today to 60 months in prison for receipt of child pornography, after pleading guilty on January 5. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In October 2015, law enforcement officers discovered child pornography files online through a peer-to-peer network that were traced to Fuguet’s residence. A forensic examination of Fuguet’s laptop computers revealed child pornography videos and more than 230 images, many of which involved children under the age of 12.
U.S. Attorney Canova said: “Protecting our children from exploitation is a top priority of my office and the Department of Justice. I commend the hard work of our prosecutors and law enforcement professionals who protect our communities and bring child predators to justice.”
“These children are re-victimized every time one of these horrendous images is shared over the Internet, and now this criminal will be held accountable,” said Susan L. McCormick, Special Agent in Charge of HSI Tampa. “This sentencing, and the hard work of our HSI special agents with our Leon County Sheriff’s Office partners, has made our communities safer today.”
The case was investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations, the Leon County Sheriff’s Office, the Florida Department of Law Enforcement, and the North Florida Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney Gary Milligan.
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 Officer
South Carolina Man Charged with Interstate Stalking and Aggravated ID Theft Targeting Pennsylvania ResidentRead the Press Release
PITTSBURGH - A South Carolina resident has been indicted by a federal grand jury in Pittsburgh on charges of interstate stalking and aggravated identity theft, Acting United States Attorney Soo C. Song announced today.
The four-count indictment, returned on April 11 and unsealed today, named Nathaniel Earl Dunlap, 28, formerly of Shaler Township and now of Clover, South Carolina as the sole defendant.
According to the indictment, Dunlap placed false and fraudulent food delivery orders online, using the identity of another individual, which placed the victim L.W. under substantial emotional distress.
Dunlap will make his initial appearance in Federal Court today at 12:15 p.m.
The law provides for a maximum total sentence of 17 years in prison, 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 offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The United States Secret Service, the United States Postal Inspection Service and the Shaler Township Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Shreveport woman sentenced to 60 months in prison for methamphetamine distributionRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Shreveport woman was sentenced Wednesday to 60 months in prison for her role in a methamphetamine distribution conspiracy.
United States District Judge S. Maurice Hicks Jr. sentenced Haylee N. Haigler, 36, of Shreveport, on one count of conspiracy to possess with intent to distribute methamphetamine. She was also sentenced to four years of supervised release. According to the January 11, 2017 guilty plea, law enforcement agents arrested Haigler’s boyfriend, Lee Edward Watkins, 36, of Shreveport, on July 20, 2016 after observing him selling methamphetamine in the parking lot of Haigler’s apartment complex. Upon his arrest, Watkins admitted to selling the drugs and said there were more drugs and firearms in Haigler’s apartment. Agents found additional methamphetamine and three pistols there. Haigler later admitted that she assisted in the drug dealing and sometimes traveled with Watkins to Texas to obtain more drugs.
Judge Hicks sentenced Watkins on January 30, 2017 to 120 months in prison and five years of supervised release for the conspiracy count and for one count of possession of a firearm in furtherance of a drug trafficking crime.
The DEA conducted the investigation. Assistant U.S. Attorney James G. Cowles Jr. prosecuted the case.
Second Defendant Pleads Guilty to Distributing Heroin and Cocaine on Dark Web Marketplace AlphabayRead the Press Release
FRESNO, Calif. — Abudullah Almashwali, 31, a Yemeni national formerly residing in Brooklyn, New York, pleaded guilty today to distribution of heroin and cocaine, and conspiracy, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Almashwali and co-defendant Chaudhry Ahmad Farooq, 24, a Pakistani national residing in Brooklyn, New York, using the vendor names “Area51” and “DarkApollo,” were large-scale heroin and cocaine distributors on the dark web marketplace AlphaBay. Dark web marketplaces are operated on computer networks designed to conceal the true Internet Protocol (IP) address of the computers accessing the network. Dark web marketplaces allow for payments to be made only in the form of digital currency, most commonly Bitcoin. While not inherently illegal, digital currency is used by dark web marketplaces because online transactions in digital currency can be completed without a third-party payment processor and are therefore perceived to be more anonymous and less vulnerable to law enforcement scrutiny.
According to the criminal complaint, Almashwali and Farooq accepted orders for heroin and cocaine on AlphaBay, and then mailed the narcotics from post offices in New York to customers throughout the United States. They received payment in Bitcoin. In May 2016, law enforcement made two undercover purchases of heroin from “Area51,” which were delivered to a post office box in the Eastern District of California. Postal records revealed that Almashwali purchased the postage for the two heroin parcels mailed to law enforcement, and that Farooq was involved in other mailings. Law enforcement agents were also able to determine that the encrypted email address used by “Area51” and “DarkApollo” was associated with actual Twitter, Instagram, and Facebook accounts used by Farooq.
On January 17, 2017, Farooq pleaded guilty to conspiring to traffic heroin. According to the plea agreement, Farooq admitted to selling 636.5 grams of heroin on the dark web marketplace Alpha Bay in exchange for $145,807 in Bitcoin.
This case is a product of an investigation by the Drug Enforcement Administration, with assistance provided by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the IRS Criminal Investigation, and the U.S. Postal Inspection Service. Assistant U.S. Attorneys Grant B. Rabenn and Ross Pearson are prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
U.S. District Judge Dale A. Drozd is scheduled to sentence Almashwali on July 24, 2017, at 1:30 p.m. and Farooq on May 15, 2017. Almashwali and Farooq face a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Schuylkill County Man Guilty of Methamphetamine TraffickingRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Ernest Schaeffer, age 41, of Schuylkill Haven, Pennsylvania, pleaded guilty yesterday before U.S. District Court Judge Malachy E. Mannion to conspiring with others to distribute more than 500 grams of methamphetamine.
According to United States Attorney Bruce D. Brandler, Schaeffer admitted to committing the offense between June and October 2016. Schaeffer was indicted by a federal grand jury in January 2017.
Judge Mannion ordered a pre-sentence investigation to be completed. Sentencing will be scheduled at a later date.
Under the terms of the plea agreement, Schaeffer agreed to forfeit to the government a residence and property in Schuylkill Haven that was connected to the drug trafficking operation, and four firearms.
The investigation was conducted by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police in Schuylkill County. Assistant United States Attorney Francis P. Sempa is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. There is also a mandatory minimum sentence of 10 years in prison. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Rosebud Man Sentenced for Sexual Abuse of a MinorRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man convicted of Sexual Abuse of a Minor was sentenced on April 10, 2017, by U.S. District Judge Roberto A. Lange.
Lavern David Luxon, Jr., age 25, was sentenced to 96 months in prison, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Luxon was indicted by a federal grand jury on April 13, 2016. He pled guilty on January 24, 2017.
The conviction stems from an incident that occurred on September 4, 2015, wherein Luxon assaulted a 15-year-old girl at her home in Parmelee, South Dakota. Luxon had been working at the house that day and was permitted by the girl’s parents to spend the night. He then sexually assaulted the girl in the middle of the night while everyone else in the house was asleep. The girl reported the assault the next day.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Luxon was immediately turned over to the custody of the U.S. Marshals Service.
Rosebud Man Indicted for Assault and Child Abuse ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Assault With a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, and Child Abuse.
Dustin Witt, age 25, was indicted on March 15, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 10, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 6, 2016, Witt assaulted an individual with shod feet with intent to do bodily harm and that the assault resulted in serious bodily injury. The Indictment further alleges that Witt abused, exposed, tortured, tormented, and cruelly punished a child who had not attained the age of eighteen.
The charges are merely an accusation and Witt is presumed innocent until and unless proven guilty.
The nvestigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Witt was released on bond pending trial. A trial date has not been set.
Rapid City Man Charged with Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Possession with Intent to Distribute a Controlled Substance.
A criminal complaint was filed against Thomas Gary Thompson, age 27, on March 30, 2017. Thompson was indicted on April 4, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 7, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on March 22, 2017, Thompson knowingly and intentionally possessed methamphetamine with the intent to distribute it.
The charge is merely an accusation and Thompson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Mellette County Sheriff’s Office, South Dakota Department of Criminal Investigation, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Thompson was remanded to the custody of the U.S. Marshals Service pending trial. A sentencing date has been set for June 6, 2017.
Property of Deceased KC Business Owner Seized as Proceeds of $10 Million Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a civil forfeiture complaint has been filed in federal court for property acquired and maintained by Mark Sellers, a Kansas City, Mo., business owner who was under investigation by the FBI for a $10 million investment fraud scheme before he shot and killed himself on Aug. 2, 2016.
The forfeiture complaint alleges that the property is subject to federal forfeiture because it was derived from the proceeds of an investment fraud scheme in which Sellers stole approximately $10 million from approximately 100 investors through his firm, Selden Companies, LLC, from December 2007 through at least 2015. The complaint, filed under seal on Thursday, April 13, 2017, and unsealed today, alleges that Sellers committed mail fraud, wire fraud and bank fraud. The Department of Justice provides a process by which victims who suffer losses from a fraud scheme may seek relief once any assets have been forfeited.
The government is seeking forfeiture of Sellers’ former residence at 6009 N. Cosby Court in Kansas City, Mo. Also included in the complaint is a 2014 Porsche 911 and 77 pieces of jewelry that were seized by law enforcement officers, as well as the proceeds of five life insurance policies that have been cashed with death benefits totaling $6 million.
Investment Fraud Scheme
According to the complaint, the FBI began investigating Sellers on June 6, 2016, after receiving a complaint from an investor. Sellers fraudulently misrepresented to investors in the Kansas City area as well as Georgia, Alabama and elsewhere that he would use the funds to purchase companies and turn them around to sell at a profit. Sellers hid from investors, the complaint says, the fact that he and his wife spent almost all of the invested funds to maintain their own lavish lifestyle.
Sellers’ primary source of income from 2008 through 2016 was investor funds he used for his own personal benefit. Sellers’ bank records show approximately $9.9 million of investor funds were utilized for his own personal use and benefit to fund his lifestyle, vehicles, life insurance policies, homes, jewelry and credit card purchases. Sellers allegedly laundered the invested funds through multiple bank accounts.
Financial records indicate Sellers expended approximately $9.9 million of investor funds in the following ways:
Approximately $343,343 in mortgage payments for his personal residence;
Approximately $931,384 on remodeling, upgrading, and maintaining his personal residence (included kitchen remodeling and installing landscaping, tile and granite, new cabinets and windows, and fencing, as well as installing and maintaining an in-ground swimming pool);
Approximately $701,102 at Tivol jewelry store;
Approximately $253,641 at Aristocrat Motors and Thoroughbred Ford to purchase luxury vehicles for him and his wife;
Approximately $260,131 at Midwest Trust Company;
Approximately $7,461,116 to credit card companies.
Credit Card Bust Out Scheme
In addition, the complaint says, when Sellers had depleted the investors’ funds, he defrauded several financial institutions by running a large credit card “bust out” scheme in a final effort to maintain his and his wife’s lifestyle. A bust out scheme is a type of credit card fraud in which an individual establishes a normal usage pattern and solid repayment history, then racks up numerous charges and maxes out the card with no intention of paying the bill. The consumer establishes the card issuer’s trust and a strong credit profile with the goal of opening numerous accounts and receiving credit line increases so that more funds are available.
Sellers opened approximately eight credit cards with JP Morgan Chase over several years, ran up large credit card balances, increased the credit limit available on the credit cards, and then paid the bill with ACH transfers backed by insufficient funds. This type of activity occurred on one credit card 92 times in a five-month span.
J.P. Morgan Chase Bank was left with an outstanding balance on Sellers’ credit cards of approximately $557,000. Commerce Bank sustained a loss of approximately $33,000 caused by Sellers depositing several insufficient funds checks into his bank accounts.
Events During the Investigation
On July 18, 2016, Kansas City police officers were called to the Sellers’ residence for a possible homicide/suicide. Upon arrival, officers found Sellers incoherent in his bedroom lying next to his wife, Sandra Sellers, who was deceased. Sandra Sellers had been shot in the head, and Sellers had attempted to overdose on medication. Sellers was taken to an area hospital for medical attention and evaluation.
On Aug. 2, 2016, law enforcement officers executed a search warrant at Sellers’ residence. Sellers was not home at the time the warrant was executed. At approximately 8:33a.m., Sellers arrived in his Ford Explorer. When Sellers realized he was not able to turn onto N. Cosby Court because law enforcement had blocked the intersection (to prevent Sellers from approaching the residence), he accelerated past the intersection. At that time, law enforcement officers stopped the vehicle, which was occupied solely by Sellers. Sellers stopped his vehicle and shot himself in the head with a .22-caliber revolver. Sellers was transported to an area hospital where he later succumbed to his self-inflicted gunshot wounds.
This case is being prosecuted by Assistant U.S. Attorney Curt Bohling. It was investigated by the FBI.
Philadelphia Woman Charged with Preparation of False Income Tax ReturnsRead the Press Release
Rhonda Coleman, 56, of Philadelphia, PA, was charged by Indictment unsealed today with nineteen counts of aiding and assisting in the preparation of materially false income tax returns, announced Acting United States Attorney Louis D. Lappen. According to the Indictment, Coleman is the co-owner of P.C. Tax Services, a business located in Philadelphia. She used her position as a tax preparer at the business to falsely overstate and include income, deductions and credits on her clients’ returns without the authorization of those clients between 2011 and 2012.
If convicted the defendant faces a maximum possible sentence of 48 years’ imprisonment, three years’ supervised release, a $1,900,000 fine, and a $1,900 special assessment.
The case was investigated by Internal Revenue Service, Criminal Investigation Division and is being prosecuted by Assistant United States Attorney Tomika N.S. Patterson.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty
Pensacola Man Sentenced to More Than Seven Years in Prison for Federal Firearms ChargesRead the Press Release
PENSACOLA, FLORIDA – Awald Edward Pokrant Jr., 50, of Pensacola, has been sentenced to 86 months in prison after pleading guilty on January 24, 2017, to unlawfully possessing a firearm as a convicted felon and possessing an unregistered firearm. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In October 2016, law enforcement officers who responded to an armed disturbance observed Pokrant fleeing the scene. After a high-speed chase, the officers pulled Pokrant over and transported him back to the location of the incident. At the scene, an injured and bleeding victim told officers that Pokrant had struck her with a hammer. Law enforcement officers observed blood splatter in several locations in the house and recovered a hammer. A search of the house revealed firearms and ammunition. The victim later told officers that Pokrant might have moved additional firearms to a friend’s house. Law enforcement officers recovered eight firearms and more than 1,000 rounds of ammunition from this other location.
This case resulted from investigations by the ATF Gun Crime Response Team, which includes the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Federal Bureau of Investigation, the Escambia County Sheriff’s Office, the Santa Rosa County Sheriff’s Office, the Florida Department of Law Enforcement, and the Pensacola Police Department. It was prosecuted by Assistant U.S. Attorney James M. Ustynoski.
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 Officer
Pennsylvania Man Pleads Guilty to Operating Bi-Coastal Marijuana Distribution RingRead the Press Release
BOSTON – A Pennsylvania man pleaded guilty today in federal court in Boston in connection with a large-scale marijuana distribution and money laundering ring operating between California and the East Coast.
Ratanack Oung, a/k/a Yoshi, 32, of Allentown, Pa., pleaded guilty to one count of conspiracy to distribute marijuana and one count of conspiracy to launder monetary instruments. In September 2016, Oung was indicted on these charges and arrested with co-conspirator Virayuth Chau, 40, of Temecula, Calif., who pleaded guilty in March 2013. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for July 13, 2017.
Beginning around January 2014, Chau and Oung shipped large quantities of marijuana from California to the East Coast of the United States. When payment for the marijuana was due, Oung collected drug proceeds from co-conspirators and deposited the cash (typically in an amount under $10,000) into one of many “feeder” accounts in banks on the East Coast, including in Massachusetts. The “feeder” accounts were maintained in the names of businesses or persons associated with Chau in order to disguise the nature and ownership of the drug proceeds flowing into the accounts. Once the money was deposited, it was either withdrawn in cash in California or transferred into a “target” account, which was an account controlled by Chau and then withdrawn. In total, the operation distributed between 1,000 to 3,000 kilograms of marijuana and laundered approximately $6,135,035 in drug proceeds.
The charge of conspiracy to distribute marijuana provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of $1 million. The charge of money laundering provides a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The DEA, Los Angeles Division, Riverside County (California) Sheriff’s Department and Murrieta (California) Police Department also assisted with the investigation. Assistant U.S. Attorney Eric Rosen of Weinreb’s Narcotics & Money Laundering Unit is prosecuting the case.
Orlando Man Sentenced for Theft of Government Money and Aggravated Identity TheftRead the Press Release
Orlando, Florida - U.S. District Judge Paul G. Bryon has sentenced Manuel Enrique Santana (36, Orlando) to four years in federal prison for theft of government funds and aggravated identity theft. As part of his sentence, the Court also entered a money judgment in the amount of $64,889.15, the proceeds of the charged criminal conduct. Santana was found guilty by a jury on January 10, 2017.
According to the evidence presented at trial, Santana deposited 47 stolen federal tax refund checks into three of his own bank accounts over a 10-day period in early 2014. The vast majority of checks were endorsed with forged signatures of the intended payees, all of whom had filed returns for the 2013 tax year and were expecting to receive their refund checks by mail. The combined value of the stolen checks was more than $64,000.
This case was investigated by the United States Postal Inspection Service, the Internal Revenue Service - Criminal Investigation, and the Seminole County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Emily C. L. Chang.
Oregon Law Enforcement Partners Encourage Reporting of All Perceived Hate CrimesRead the Press Release
PORTLAND, Ore. – In response to an increase in perceived hate-related activity across the Portland Metro Area, the United States Attorney’s Office, along with law enforcement partners from across the state, encourage anyone with information about hate-related activity to contact their local law enforcement agency and the FBI.
If you are concerned about your safety, please call 9-1-1 immediately.
Recent reports of hate-related activity in our state are deeply concerning to members of our law enforcement community. Beyond local reports, Oregonians have likely seen an increase in news reports and social media posts about alleged hate crimes and harassment across the country. These reports have caused many in our community to fear for their own or their loved ones’ safety.
“The United States Attorney’s Office, with our local, state, and federal law enforcement partners, wants to reassure community members that we are united in our efforts to combat hate crimes in any form and to repudiate the targeting of individuals because of their actual or perceived race, color, religion, national origin, disability, sexual orientation, gender or gender identity” said Billy J. Williams, United States Attorney for the District of Oregon. “We remain committed to vigorously investigating and prosecuting all hate crimes.”
“We must stand together against hate because all Oregonians deserve to feel safe in our communities," said Oregon Attorney General Ellen Rosenblum. "A hate crime occurs when somebody intentionally subjects another to offensive physical contact, physical injury, or damage to another person’s property based on their race, color, religion, sexual orientation, gender identity or national origin. Fortunately, in Oregon we have laws that protect us from these hateful acts.”
“Everyone has a right to live, work and worship freely and without fear,” said Loren Cannon, Special Agent in Charge of the FBI in Oregon. “When someone commits a crime of violence against you because of your race, religion, national origin, sexual orientation, disability, gender or gender identity, the FBI will stand with you to make sure our shared community is both safe and just.”
Victims and witnesses of crime are not responsible for determining whether an action rises to the level of a hate crime. Law enforcement personnel in Oregon encourage over-reporting. Links to Oregon police departments and county sheriffs’ offices are listed below:
-
List of Oregon Police Departments
-
List of Oregon County Sheriffs’ Offices
For crimes committed in Oregon, the FBI Portland Division can be reached at (503) 224-4181. A list of all local FBI offices is available at: https://www.fbi.gov/contact-us/field-offices. Reports to the FBI can also be submitted online from any state via: https://tips.fbi.gov.
Additionally, the Oregon Department of Justice collects reports of hate crimes to ensure these are passed on to the appropriate authority for investigation via the following web form: https://justice.oregon.gov/crimereporting/hatecrime.
If you have questions about your rights or the hate crime reporting process, please contact any of the following law enforcement agencies:
- United States Attorney’s Office – District of Oregon: (503) 727-1000
- Oregon Department of Justice: (503) 378-4400
- FBI - Portland Division: (503) 224-4181
-
Mission Man Sentenced for Assaulting a Federal Officer and Simple AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer and Simple Assault was sentenced on April 10, 2017, by U.S. District Judge Roberto A. Lange.
Patrick Medearis, age 33, was sentenced to 22 months in prison, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Medearis was indicted by a federal grand jury on January 21, 2016. He pled guilty on January 24, 2017.
convictions stem from two separate incidents. On October 31, 2015, Medearis and his girlfriend got into an altercation while driving to Mission. y stopped at the Gus Stop convenience store, at which point Medearis’ girlfriend got out of the vehicle. Medearis grabbed her shirt as she tried to get away and ripped her top off. He then chased after her and grabbed the shirt she was covering herself with before departing the area. Rosebud Sioux Tribe Law Enforcement Services (RSTLES) responded and a warrant was subsequently issued for Medearis’ arrest.
On November 28, 2015, a RSTLES officer responded to a report that Medearis, possibly intoxicated, was outside a home in White Horse, revving his engine. The officer subsequently made contact with Medearis during a vehicle stop. During the vehicle stop, Medearis got out of the vehicle and approached the officer brandishing a knife. He refused commands to drop the knife until another RSTLES officer arrived to assist, at which point Medearis was forcibly subdued and arrested.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Medearis was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Charged with Criminal ContemptRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Criminal Contempt.
Clint Roubideaux, age 32, was indicted on February 14, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 10, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 6 months in custody and/or a $1,000 fine, and $10 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on February 14, 2017, Roubideaux, willfully and unlawfully disobeyed and resisted a United States District Court process, order, and command to appear in Court.
The charge is merely an accusation and Roubideaux is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Roubideaux was released on bond pending trial. A trial date has not been set.
Members of International Child Exploitation Conspiracy Plead GuiltyRead the Press Release
A Wichita, Kansas man and a Chicopee, Massachusetts man pleaded guilty today to production of child pornography for their participation in a group of individuals who operated two websites for the purpose of coercing and enticing minors as young as eight years old to engage in sexually explicit conduct on web camera.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director Stephen E. Richardson of the FBI’s Criminal Investigative Division made the announcement.
“Believing they were cloaked in the anonymity of the Internet, the members of the group sexually exploited hundreds of children around the nation and globe through deceit and trickery,” said Acting Assistant Attorney General Blanco. “This case exemplifies the threat of online predators to the world’s most unsuspecting and vulnerable victims. Our prosecutors and law enforcement partners are committed to overcoming the challenges posed by these complex investigations, identifying and notifying victims and their families and rooting out these offenders who lurk and hunt in the shadows of the web.”
“Despite the increasingly common use of technology to hide their conduct, those who seek to take advantage of children online will be found and prosecuted to the full extent of the law,” said U.S. Attorney Boente. “We hope that Operation Subterfuge can serve to show that vulnerable victims will get justice.”
“Crimes against children are among the most heinous crimes that the FBI investigates,” said Assistant Director Richardson. “This case is a prime reminder of the FBI’s unwavering commitment to delivering justice to those who victimize the most vulnerable members of our society. It also serves as a warning that we will stop at nothing to find those who commit these despicable acts. I am incredibly proud of the immense amount of time and effort that men and women throughout the FBI devoted to this investigation. I am also grateful to all of our partners whose collaboration was vital to making this a successful case.”
Allan Cortez, 34, and Edward Parson, 46, were charged on April 4, 2016, and pleaded guilty before U.S. District Judge T.S. Ellis III of the Eastern District of Virginia. Sentencing for Cortez is set for July 21, 2017, and sentencing for Parson is set for July 14, 2017.
According to admissions made in connection with the plea agreements, members of the group created false profiles on social networking and video sites popular with children posing as young teenagers to lure children to two websites they controlled. Parson and Cortez admitted that they showed the children who came to the website pre-recorded videos of prior minor victims, often engaging in sexually explicit conduct, to convince those children that they were chatting live with another minor. Parson and Cortez further admitted that they used these videos to coerce and entice the children to engage in sexually explicit activity on their own web cameras, which could be viewed live by multiple adult members without the victim’s knowledge. Further, Parson and Cortez admitted that these videos were automatically recorded and made available for later download. Parsons and Cortez also admitted that the websites ranked the efforts of members to successfully lure children to the website and to coerce and entice them to engage in sexually explicit conduct on live web camera. Law enforcement agencies have disabled both websites.
In addition to Parson and Cortez, 10 other group members have been convicted and sentenced as follows:
Name, Age, Hometown
Status
Anthony Evans, 54, of Grahamstown, South Africa
Pleaded guilty in South Africa and was sentenced to 10 years in prison on May 29, 2015. An extradition request remains pending.
William J. Morgan, 36, of Essex, New York
Pleaded guilty June 26, 2015. Sentenced to 21 years in prison on Sept. 18, 2015.
Carl Zwengel, 51, of Princeton, Illinois
Pleaded guilty July 10, 2015. Sentenced to 18 years in prison on Oct. 2, 2015.
Milton Smith, Jr., 34, of Lorton, Virginia
Pleaded guilty Aug. 14, 2015. Sentenced to 30 months in prison on Feb. 3, 2017, after testifying at the trial of a co-conspirator.
Christopher McNevin, 37, of Carlisle, Ohio
Pleaded guilty Aug. 21, 2015. Sentenced to 19 years in prison on Dec. 4, 2015.
Karlo Hitosis, 32, of Bronx, New York
Pleaded guilty Oct. 30, 2015. Sentenced to 18 years in prison on Feb. 5, 2016.
Stephen Funk, 35, of Milwaukee, Wisconsin
Pleaded guilty Dec. 18, 2015. Sentenced to 21 years in prison on April 1, 2016.
James E. Hancock, 45, of Thomasville, Georgia
Pleaded guilty Dec. 29, 2015. Sentenced to 90 months in prison on April 1, 2016.
Brian K. Hendrix, 42, of Mt. Juliet, Tennessee
Convicted by jury on Jan. 8, 2016. Sentenced to 21 years in prison on April 8, 2016.
Jeffery Van Dyke, 46, of Weed, California
Pleaded guilty March 10, 2017. Sentencing scheduled for June 9, 2017.
An estimated 1,500 minors were lured to the websites. During the investigation, known as Operation Subterfuge, the FBI identified 357 minor victims in the United States, and Canada’s Royal Canadian Mounted Police’s (RCMP) National Child Exploitation Coordination Centre identified 43 minor victims in Canada. The FBI’s efforts to identify victims are ongoing.
Trial Attorney Lauren Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Whitney Russell of the Eastern District of Virginia prosecuted the case. Special Agents with the FBI’s Violence Against Children program led the investigation with the assistance of the FBI’s Operation Rescue Me, the Digital Analysis and Research Center and the Office of Victim Assistance. The South Africa Police Service, Family Violence, Child Protection and Sexual Offenses, Gauteng; Royal Canadian Mounted Police, National Child Exploitation Coordination Centre; the Dutch Police Services Agency, KLPD; and the Australian Federal Police, Child Protection Operations, Sydney were active partners in Operation Subterfuge, a multinational investigation coordinated by members of the FBI’s Violent Crimes Against Children International Task Force.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.justice.gov/psc.
McLaughlin Man Charged with Aggravated Sexual Abuse and AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse, Assault with a Dangerous Weapon, and Assault Resulting in Serious Bodily Injury.
Jeremy Agard, age 35, was indicted on March 15, 2017. He appeared before U.S. Magistrate Judge William D. Gerdes on April 4, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, life of supervised release, and up to $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on October 14, 2016, Agard knowingly caused and attempted to cause the victim to engage in a sexual act. The Indictment also alleges that on that same date, Agard unlawfully assaulted the same victim with shod feet, causing serious bodily injury to her.
The charges are merely accusations and Agard is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Agard was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Massachusetts Man Sentenced to 18 Months After Failing to Register as A Sex OffenderRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that Beau Shields, 30, of South Barre, Massachusetts, was sentenced to 18 months in federal prison for failing to register as a sex offender as required by the federal Sexual Offender Registration and Notification Act (SORNA). Shields moved from New Hampshire to Massachusetts some time before April 2016 and did not register in Massachusetts and did not advise New Hampshire authorities that he was living in Massachusetts.
SORNA mandates that a person who is required to register must register in each jurisdiction where he resides, is employed or is going to school. gives an individual three days in which to register.
Shields was also sentenced to five years of supervised release, which will begin after he is released from prison.
The case was investigated by the United States Marshals Service with the assistance of the New Hampshire State Police and the Barre, Massachusetts, Police Department. The case was prosecuted by Assistant U.S. Attorney Don Feith.
###
Mason City Dental Office Manager Sentenced to 41 Months in Federal Prison After Stealing Nearly $500,000 from Her EmployerRead the Press Release
A former office manager of a small dental practice in Mason City, Iowa, who stole nearly $500,000 from her employer over the course of almost a decade, was sentenced yesterday in federal court in Cedar Rapids.
Pamela Harris, age 58, from Mason City, Iowa, was convicted of Wire Fraud. In a plea agreement, Harris admitted she was a trusted employee of the dental practice for approximately 21 years, from about 1993 until 2014. During this time, she had sole responsibility for the practice’s day-to-day finances. She was fired in 2014 after her fraud was discovered.
The two dentists that formed the practice authorized the creation of rubber stamps bearing their signatures to pay for legitimate expenses. However, the dentists always required Harris to obtain authorization before using the rubber stamps on a check to pay a bill. At no time did the dentists authorize Harris to create checks and use their rubber signature stamps to pay for her personal expenses without their knowledge.
From at least July 2005, and continuing through about May 2014, Harris defrauded the dentists and their practice. Harris used the rubber signature stamps of the dentists without their authorization to create forged checks drawn on the practice’s bank account. Harris forged checks made payable either to herself or to others, including credit card companies to pay for Harris’ personal expenses. Harris also maintained and used various credit card accounts she had opened in the name of the dental practice to pay for personal expenses without the authorization of the dentists.
For example, Harris admitted that, in May 2012, she forged a check bearing the signatures of the dentists to pay for a $4,000 white plastic fence at her home. In total, Harris admitted to stealing at least $491,254.86 from the dentists and their practice.
Harris was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. At the sentencing hearing, Judge Reade found Harris’s crime was “a very serious offense” and stressed a number of aggravating factors, including that Harris’s scheme was sophisticated and caused the dentists such a substantial financial hardship that they needed to take out lines of credit. Judge Reade found defendant had “spit in the eye” of her employers. During the hearing, Judge Reade also noted that Harris, through a civil attorney, had offered to repay approximately $100,000 of the stolen money, but only if the dentists would give Harris a good letter of recommendation for another job. The evidence at the hearing showed that the civil attorney wrote a letter stating, “this probably sounds outrageous to ask for a letter but if your client’s [sic] want more money, I think this is the only way.” The dentists declined the offer.
Harris was sentenced to 41 months’ imprisonment. A special assessment of $100 was imposed, and she was ordered to make $491,254.86 in restitution to the dentists. With respect to restitution, Harris will be given credit for approximately $150,000 that she deposited with the Clerk of Court before the conclusion of her sentencing hearing. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Harris was released on the bond previously set and is to surrender to the United States Marshal on May 8, 2017, at 10 a.m., in Cedar Rapids, pending her designation to a Bureau of Prisons facility.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Federal Bureau of Investigation and the Mason City Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-3029-LRR.
Follow us on Twitter @USAO_NDIA.
Maryland Man Sentenced to Seven Years in Prison for CarjackingRead the Press Release
WASHINGTON – Jesse Green III, 41, of Germantown, Md., was sentenced today to seven years in prison for a carjacking earlier this year in Southeast Washington in which he drove off with a woman and her 2-year-old granddaughter, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Acting Chief of the Metropolitan Police Department (MPD).
Green pled guilty in February 2017, in the Superior Court of the District of Columbia, to a charge of carjacking. He was sentenced by the Honorable Ronna L. Beck. Upon completion of his prison term, Green will be placed on three years of supervised release.
According to the government’s evidence, on Jan. 8, 2017, at approximately 12:10 p.m., the woman, her husband, and their 2-year-old granddaughter were driving in a GMC Yukon sports utility vehicle. The husband pulled over and got out of the vehicle for a stop in the 5000 block of Kimi Gray Court SE. Green came out of a neighboring house and went to the vehicle. Then, without permission, he got into the driver’s seat and sped off, with the woman and child still in the vehicle. The child was in a car seat in the rear.
The woman demanded that Green let them out and attempted to grab the steering wheel. Green, however, kept driving fast, passing through stop signs. He crashed into a parked vehicle near 51st Street and Central Avenue SE, traveled up an embankment, and then crashed backward into a telephone pole. He attempted to flee, but was soon apprehended and has been in custody ever since. The victims were taken to a hospital by ambulance for examination and treatment.
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 also expressed appreciation for the efforts of those who handled the case at the U.S. Attorney’s Office, including Assistant U.S. Attorney Kathryn Rakoczy, Paralegal Specialist Richard Cheatham, and Victim/Witness Advocate James Brennan. Finally, they commended the work of Assistant U.S. Attorney Natasha Smalky, who investigated and prosecuted the case.
Man Sentenced to Three Years in Prison for Assaulting Hotel HousekeeperRead the Press Release
WASHINGTON - Ernesto A. Mendoza, 18, who had no fixed address, was sentenced today to three years in prison for assaulting a housekeeper with a knife last fall at a downtown Washington hotel, U.S. Attorney Channing D. Phillips announced.
Mendoza pled guilty on Feb. 1, 2017, in the Superior Court of the District of Columbia, to assault with intent to commit first-degree sexual abuse. The plea, which was contingent upon the Court’s approval, called for a sentence of three years in prison. The Honorable José M. Lopez accepted the plea and sentenced Mendoza accordingly. Upon completion of his prison term, Mendoza will be placed on three years of supervised release. He also must register as a sex offender for the rest of his life.
According to the government’s evidence, on Nov. 26, 2016, Mendoza entered an 11th-floor room at the Grand Hyatt Washington hotel, in the 1000 block of H Street NW. The victim, a housekeeper, entered the room to clean it. When she came out of the bathroom, Mendoza was standing in the room. At first, the victim thought he was a guest who was occupying the room, and so she walked past him. However, Mendoza brandished a silverware knife, threatened her with it, and demanded that she go back to the bedroom.
Mendoza threatened the victim with the weapon and ordered her to take off her clothes. He then pulled his pants down. The victim attempted to grab the knife from him, and a struggle ensured. She screamed for help, and Mendoza tried to cover her mouth with a towel or cloth to prevent her from yelling. Eventually, after further struggles, she was able to escape.
Mendoza was identified based on surveillance video and was arrested on Dec. 29, 2016. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also expressed appreciation for the assistance provided by the Metro Transit Police and Prince George’s County, Md. Police Departments. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Lezlie Richardson and Paralegal Specialist T.J. McPhail. Finally, he commended the work of Assistant U.S. Attorney Stuart D. Allen, who investigated and prosecuted the case.
Maine Fisherman Pleads Guilty for Illegally Trafficking American EelsRead the Press Release
Today, Richard Austin pleaded guilty in federal district court in Norfolk, Virginia, to trafficking juvenile American eels, aka “elvers” or “glass eels,” in violation of the Lacey Act, announced Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division, U.S. Attorney Dana J. Boente for the Eastern District of Virginia and Acting Director Jim Kurth of the U.S. Fish and Wildlife Service (USFWS).
As part of his guilty plea, Austin admitted to illegally transporting or selling elvers in interstate commerce, which had been harvested illegally in Virginia and Massachusetts. According to the statement of facts filed with the plea agreement, Austin was a fisherman from Maine, who travelled to locations near Yorktown, Williamsburg, and Newport News, Virginia, as well as Massachusetts, to illegally harvest elvers. Austin then sold the elvers to dealers from Illinois and New York, who exported them from the United States to buyers in Asia. From 2013 to 2015, Austin trafficked approximately $189,374 worth of illegally-harvested elvers.
This plea was the result of “Operation Broken Glass,” a multi-jurisdiction USFWS investigation into the illegal trafficking of American eels. To date, the investigation has resulted in guilty pleas for twelve individuals whose combined conduct resulted in the illegal trafficking of more than $2.94 million worth of elvers.
Eels are highly valued in east Asia for human consumption. Historically, Japanese and European eels were harvested to meet this demand; however, overfishing has led to a decline in the population of these eels. As a result, harvesters have turned to the American eel to fill the void resulting from the decreased number of Japanese and European eels.
American eels spawn in the Sargasso Sea, an area of the North Atlantic Ocean bounded on all sides by ocean currents. They then travel as larvae from the Sargasso to the coastal waters of the eastern United States, where they enter a juvenile or elver stage, swim upriver and grow to adulthood in fresh water. Elvers are exported for aquaculture in east Asia, where they are raised to adult size and sold for food. Harvesters and exporters of American eels in the United States can sell elvers to east Asia for more than $2000 per pound.
Because of the threat of overfishing, elver harvesting is prohibited in the United States in all but two states: Maine and South Carolina. Maine and South Carolina heavily regulate elver fisheries, requiring that individuals be licensed and report all quantities of harvested eels to state authorities.
The offense in this case is a felony under the Lacey Act, each carrying a maximum penalty of five years in prison, a fine of up to $250,000 or up to twice the gross pecuniary gain or loss, or both.
Sentencing is set for July 19, 2017.
Operation Broken Glass was conducted by the USFWS and the Justice Department’s Environmental Crimes Section in collaboration with the Maine Marine Patrol, South Carolina Department of Natural Resources Law Enforcement Division, New Jersey Division of Fish and Wildlife Bureau of Law Enforcement, Connecticut Department of Energy and Environmental Protection Conservation Police, Virginia Marine Resources Commission Police, USFWS Refuge Law Enforcement, National Oceanic and Atmospheric Administration Office of Law Enforcement, Massachusetts Environmental Police, Rhode Island Department of Environmental Management Division of Law Enforcement, New York State Environmental Conservation Police, New Hampshire Fish and Game Division of Law Enforcement, Maryland Natural Resources Police, North Carolina Wildlife Resource Commission Division of Law Enforcement, Florida Fish and Wildlife Conservation Commission, Yarmouth, Massachusetts Division of Natural Resources, North Myrtle Beach, South Carolina Police Department and the Atlantic States Marine Fisheries Commission.
The government is represented by Environmental Crimes Section Trial Attorneys Cassandra Barnum and Shane Waller, and Assistant U.S. Attorney Joseph Kosky.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Robert C. Stuart announced that on April 14, 2017, Jason John Kahler, 42, of Lincoln, was sentenced to 14 years (168 months) in prison for his involvement in a conspiracy to distribute and possess with the intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine between January of 2014, and January of 2016. Information obtained by law enforcement indicated that during that timeframe, Kahler was involved in the distribution of at least 5 kilograms (11 pounds) of methamphetamine in the Lincoln area. Following the prison term, Kahler will serve five years on supervised release.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Las Vegas Sports Betting Personality Indicted for Misuse of Social Security Numbers and Concealing Taxable WinningsRead the Press Release
LAS VEGAS, Nev. – David Nakama Oancea, aka “Vegas Dave,” 40, of Las Vegas, a Las Vegas sports betting personality, was indicted on Wednesday by a federal grand jury, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
The indictment charges Oancea with nine counts of misuse of Social Security Numbers and 10 counts of causing false currency transaction reports to be filed based on the false Social Security Numbers.
As alleged in the indictment, Oancea placed sports bets for himself and others at casinos and sports books. He opened player accounts by providing the casinos and sports books with social security numbers assigned to others or to no one, but represented to the casinos that the social security numbers were his. When Oancea placed bets or collected winnings of more than $10,000, he caused the casinos and sports books to prepare and submit false Currency Transaction Reports containing false and fraudulent social security numbers. It is further alleged that Oancea caused casinos and sports books to prepare and file at least 137 false Currency Transaction Reports. The indictment seeks forfeiture of $551,318.20 from Oancea.
The case is being investigated by the Las Vegas Financial Crimes Task Force consisting of members of the IRS-Criminal Investigations, the Nevada Attorney General’s Office, the Henderson Police Department, and the Nevada Gaming Control Board. The case is being prosecuted by Assistant U.S. Attorney Kilby Macfadden.
Kyle Man Indicted for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Kyle, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury,
Charles Gay, a/k/a Charles Dean Mercado, age 20, was indicted on March 21, 2017. Gay appeared before U.S. Magistrate Judge Daneta Wollmann on April 7, 2017, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 10 years’ custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Gay assaulting a juvenile male with a television and a knife at Kyle on October 10, 2015. This assault resulted in serious bodily injury to the juvenile male.
The charges are merely accusations and Gay is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Gay was released on bond pending trial. A trial date has been set for June 13, 2017.
Josephine County Man Sentenced to 60 Months for Illegal Possession of FirearmsRead the Press Release
MEDFORD, Ore. – On April 13, 2017, Anthony Benjamin Still, 41, of Grants Pass, Oregon was sentenced by U.S. District Court Judge Ann Aiken to 60 months in federal prison for unlawful possession of firearms. Upon his release from prison, Still will be on supervised release for three years.
On December 12, 2014, law enforcement officers searched Still’s residence in Grants Pass and found three firearms (including an AR-15-style rifle and a .223 caliber semi-automatic pistol with four loaded high-capacity magazines), over 900 rounds of ammunition, 84 pounds of marijuana, $5,000 in cash and drug notes. Officers determined Still was a felon with prior convictions for second degree burglary, unlawful delivery of marijuana and grand theft of a motor vehicle.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Rogue Area Drug Enforcement team, and was prosecuted by Nathan J. Lichvarcik, Assistant United States Attorney for the District of Oregon.
Jacksonville Woman Indicted for Possession of Counterfeit Government ChecksRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of an
indictment charging Verdell Terria Jones (53, Jacksonville) with 10 counts of possession of counterfeit government checks. If convicted, she faces up to 25 years in federal prison on each of count. Jones was arrested on April 11, 2017, at her home in Jacksonville. According to facts presented at the detention hearing yesterday, this scheme is part of Jones’s involvement with the Sovereign Citizen Movement and her attempts to pass counterfeit government checks in order to pay off various loans. Her trial has been scheduled for June 5, 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 until, and unless, proven guilty.
This case was investigated by the FBI Joint Terrorism Task Force. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Indian National Pleads Guilty for Role in Multi-Million Dollar India-Based Call Center Scam Targeting U.S. VictimsRead the Press Release
HOUSTON – An Indian national pleaded guilty today to one count of conspiracy to commit money laundering for his role in liquidating and laundering victim payments generated through various telephone fraud and money laundering schemes via India-based call centers.
Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) and Inspector General John Roth of the U.S. Department of Homeland Security Office of Inspector General (DHS-OIG) made the announcement.
Bharatkumar Patel, aka Bharat Patel, 43, an Indian national who had resided in Midlothian, Illinois, pleaded guilty before U.S. District Court Judge David Hittner of the Southern District of Texas. He also agreed to deportation following his sentence. Sentencing is currently set for July 7, 2017.
According to admissions made in connection with the plea, Patel and his co-conspirators perpetrated a complex scheme in which individuals from call centers located in Ahmedabad, India, impersonated officials from the IRS or U.S. Citizenship and Immigration Services in a ruse designed to defraud victims located throughout the United States. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money, and upon payment, the call centers would immediately turn to a network of “runners” based in the U.S. to liquidate and launder the fraudulently-obtained funds.
According to his plea, beginning in or about July 2013, Patel worked as a member of a crew of runners operating in the Chicago area and elsewhere throughout the country. Patel admitted to purchasing reloadable cards or retrieving wire transfers and using the misappropriated personal identifying information of U.S. citizens. Patel also admitted to opening personal bank accounts in order to receive scam proceeds and payments from defrauded victims as well as creating limited liability companies in his name to further the conspiracy. According to his plea, Patel opened one bank account that received more than $1.5 million in deposits over a one-year period and another bank account that received more than $450,000 in deposits over a five-month period.
Patel was charged for his role in the fraud and money laundering scheme alongside 55 other individuals and five call centers in an indictment returned by a federal grand jury in the Southern District of Texas on Oct. 19, 2016.
HSI, DHS-OIG and TIGTA led the investigation of this case. Also providing significant support was the Ft. Bend County, Texas, Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection/Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration - Office of Inspector General; IOC-2; INTERPOL Washington; and U.S. Attorney’s Offices in Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Illinois, Northern District of Indiana, District of Nevada and District of New Jersey. The Federal Communications Commission’s Enforcement Bureau also provided assistance in TIGTA’s investigation.
Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel of the Southern District of Texas are prosecuting the case along with Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section and Trial Attorney Robert Stapleton of the Criminal Division’s Money Laundering and Asset Recovery Section.
A Department of Justice website has been established to provide information about the case to already identified and potential victims and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the FTC via this website.
Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.
Hampton Men Indicted for Bank Fraud and ID TheftRead the Press Release
NEWPORT NEWS, Va. – Two Hampton have been indicted on charges of conspiracy to commit bank fraud, bank fraud, aggravated identity theft, and possession of a firearm by a convicted felon.
According to allegations in the indictment, Markis J. Dickerson, 21, who was arrested and taken into custody last night, and Christopher D. Boone, 25, who was already in state custody, conspired to obtain U.S. currency from several financial institutions by depositing worthless and counterfeit financial instruments into accounts belonging to other individuals and then conducting debit card transactions at ATM and retail locations throughout Hampton Roads.
According to the indictment, Dickerson and Boone allegedly recruited account holders of several financial institutions via social media to provide access to their debit cards and personal identification numbers for a period of time in exchange for monetary payment. Dickerson, Boone, and other conspirators then deposited worthless and counterfeit checks and money orders into the compromised accounts primarily through “mobile deposit” online banking applications. Dickerson, Boone, and others were then withdrew cash and made purchases at ATM and retail locations to access the funds made available through such fraudulent deposits. Both men carried firearms when conducting such transactions. Boone, a convicted felon, was prohibited from possessing a firearm.
Both men face a mandatory minimum penalty of two years in prison to run consecutive to a maximum possible penalty of 30 years in prison if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Richard W. Myers, Chief of Newport News Police, made the announcement after the indictment was returned. Assistant U.S. Attorney Kaitlin C. Gratton is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-43.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Grand Rapids Bar Owner Sentenced to 13 Months in PrisonRead the Press Release
Brian Farah and His Father Skimmed $400,000 from their Bars and Destroyed Sales Records to Hide the Crime from the IRS
GRAND RAPIDS, MICHIGAN — Acting U.S. Attorney Andrew Birge announced today that Brian Farah, age 42, of Grand Rapids, Michigan, was sentenced to thirteen months in federal prison for obstructing an IRS audit. U.S. District Judge Paul L. Maloney also ordered that Farah pay restitution, a $5,000 fine, and serve one year on supervised release after his prison sentence. Farah and his father, Michael, previously pled guilty to the charge, admitting that they deleted business records after receiving notice of an Internal Revenue Service audit. Michael Farah will be sentenced in July.
Brian Farah and his father own three Grand Rapids area bars: Farah’s, Kuzzin’s, and Drake’s. In 2013, they skimmed $232,000 in cash from the bars, which they did not report on their business tax returns or individual tax returns. In 2014, they skimmed $176,000 in cash from the bars, which they again did not report on their tax returns. After receiving notice of an audit, they tried to hide their crime by deleting all of the bars’ sales records. They were caught when their sales software provider informed the IRS of the deletion.
Judge Maloney said Brian Farah’s conduct, which included "systematic and deliberate" destruction of business records and "lying directly to the face of an IRS agent," was a "blatant" violation of the tax laws.
"Schemes to conceal and insulate wealth in order to evade income tax, such as Brian Farah’s scheme, are unfair to every taxpayer who obeys the law and pays their fair share," said IRS-Criminal Investigation Special Agent in Charge Manny Muriel of the Detroit Field Office. "The public should know that IRS Criminal Investigations will do everything we can to hold individuals accountable to the same tax laws that they are subject to, ensuring that our tax system is fair to everyone."
This case was investigated by IRS Criminal Investigations. It was prosecuted by Assistant U.S. Attorney Clay Stiffler.
END
Government Settles Clean Water Act Violations with Long County, Georgia DeveloperRead the Press Release
SAVANNAH, Ga: The United States today announced it reached an agreement with a Long County developer in connection with unauthorized discharges into waters of the United States at three sites planned for residential subdivisions. The complaint was brought in 2016 by the U. S. Department of Justice and the U. S. Attorney’s Office for the Southern District of Georgia, on behalf of U. S. Army Corps of Engineers, Savannah District.
The Clean Water Act requires any person who plans to discharge dredged or fill material into waters of the United States to obtain a permit from the Corps. The complaint alleges that defendants discharged fill material into federally protected waters without authorization at three Long County sites over a number of years, failed to pay an administrative penalty assessed in 2014, and failed to comply with a previous settlement agreement intended to resolve Clean Water Act violations at one of the three sites.
The agreement requires William L. Nutting and three related entities—Georgia Coastal Land Company, Provident Land Holdings, Co., Provident Construction Co.—to restore two sites, pay monetary penalties, and take steps to mitigate past harms and prevent future violations.
The Corps frequently works with developers to avoid and resolve potential violations. “These defendants disregarded several opportunities to voluntarily comply with the law,” Acting United States Attorney James Durham said. “We will continue to work with our partners at the Army Corps of Engineers and the Environment and Natural Resources Division to hold accountable anyone who places their own financial interests above those of this community.” This is the first recovery of civil penalties for violations of the Clean Water Act in the history of the United States Attorney’s Office for the Southern District of Georgia.
“We take our obligation to enforce regulations to protect the nation’s waters seriously,” said Shaun Blocker, Project Manager with the Savannah District. “Law-abiding developers should not face a competitive disadvantage due to the illegal actions of a few, and unsuspecting homeowners should not have to risk suffering the consequences of illegal activities,” Blocker said. Blocker originally investigated the case and brought the violations to the attention of the Justice Department.
The proposed consent decree has been lodged in the U. S. District Court for the Southern District of Georgia and is subject to a 30-day public comment period and final court approval. A copy is available on the Department of Justice website at: https://www.justice.gov/enrd/consent-decrees.
Trial Attorney Samara Spence of the U. S. Department of Justice, Environment and Natural Resources Division and Assistant United States Attorney J. Thomas Clarkson represented the United States. For questions, please call the United States Attorney’s Office at (912) 201-2522.
Four, Including an Anti-Money Laundering Consultant, Arrested for Multi-Million Dollar Securities Fraud and Money Laundering SchemesRead the Press Release
Four defendants were arrested today on charges of securities fraud conspiracy and money laundering conspiracy for their involvement in schemes to fraudulently manipulate the stock of BioCube, Inc. (BioCube), a U.S. publicly traded company, and to launder approximately $2 million in illegal proceeds using offshore bank and brokerage accounts. Since 2010, BioCube has purported to have a series of different business purposes, including, most recently, planning to market and distribute devices for detecting marijuana on a user’s breath. The charged individuals are: Chris Messalas, a former securities broker previously barred by the Securities and Exchange Commission (SEC); Boris Rubizhevky, the former Chief Executive Officer of BioCube; Michael Garnick, a Philadelphia-based attorney; and Dimitrios Argyros, an anti-money laundering consultant. Messalas, Rubizhevsky and Garnick were charged with securities fraud conspiracy. Messalas and Argyros were charged with money laundering conspiracy.
Argyros was arrested at JFK International Airport after arriving on a flight from Cyprus via London, Messalas was arrested at his home in New York and Rubizhevsky was arrested in New Jersey. Their initial appearances are scheduled for this afternoon before United States Magistrate Judge Cheryl L. Pollak at the federal courthouse in Brooklyn. Garnick was arrested in Pennsylvania. His initial appearance is scheduled for this afternoon before Magistrate Judge Thomas J. Rueter at the federal courthouse in Philadelphia, Pennsylvania.
The charges were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Kathy A. Enstrom, Acting Special Agent-in-Charge, United States Internal Revenue Service, Criminal Investigation, New York (IRS-CI).
“As alleged in the criminal complaint, the defendants planned a pump and dump scheme, and money laundering of the proceeds, using offshore accounts and an anti-money laundering consultant to avoid detection by law enforcement,” stated Acting United States Attorney Rohde. “Together with our law enforcement partners, we will continue our efforts to protect the investing public, safeguard the financial integrity of our banking system and prevent the use of offshore bank and brokerage accounts to subvert U.S. laws and regulations.” Ms. Rohde thanked the Securities and Exchange Commission for its cooperation and assistance on the investigation.
“When would-be stockholders purchased shares of BioCube, Inc., they knew about the market risks involved in investing,” stated Assistant Director-in-Charge Sweeney. “What they didn’t know was that the odds had already been stacked against them, as alleged, in this ruse concocted by the four individuals charged today. Those who employ schemes to capitalize on other people’s losses will most certainly be brought to justice, and we’re here to remind criminals that this type of dishonorable behavior will never be acceptable. As such, the FBI and our partners will continue to uphold the promise we made to those who invest their trust in us.”
“At this time of year, when hard working citizens are sitting down to prepare their tax returns, IRS-Criminal Investigation (IRS-CI) remains vigilant in our pursuit of those unscrupulous individuals that defraud the American public as well as the government,” stated Acting Special Agent-in-Charge Enstrom. “IRS-CI is proud to bring our forensic accounting skills to this joint venture and help put a stop to this and other types of white collar crime, as alleged in the criminal complaint.”
According to the complaint unsealed today in Brooklyn federal court, Messalas, Rubizhevsky and Garnick engaged in a scheme to defraud BioCube’s investors and potential investors by concealing Messalas’s beneficial ownership and control of BioCube shares, so that Messalas could exercise control over the price and trading of BioCube’s stock.
As the complaint further alleges, Messalas and Argyros engaged in a related conspiracy to launder approximately $2 million in proceeds of the BioCube “pump and dump” scheme by depositing BioCube shares into offshore accounts in the names of nominees in locations including Cyprus and the Bahamas. The scheme was designed to launder a portion of the fraudulent proceeds from the stock manipulation scheme from the United States through offshore accounts, and circumvent the IRS’s reporting requirements under the Foreign Account Tax Compliance Act (FATCA). As alleged in the complaint, Argyros touted his ability to capitalize on his anti-money laundering expertise during conversations with an individual posing as a co-conspirator in the money laundering scheme who, unbeknownst to Argyros, was working with the FBI.
The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of the charges against them, Messalas faces a maximum sentence of 25 years’ imprisonment, Rubizhevsky and Garnick face maximum sentences of five years’ imprisonment, and Argyros faces a maximum sentence of 20 years’ imprisonment.
* * *
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Tyler Smith, Alicyn Cooley and Jack Dennehy are in charge of the prosecution.
* * *
The Defendants:
CHRIS MESSALAS
Age: 50
Staten Island, New York
BORIS RUBIZHEVSKY
Age: 66
Closter, New Jersey
MICHAEL GARNICK
Age: 58
Philadelphia, Pennsylvania
DIMITRIOS ARGYROS
Age: 50
Ho-Ho-Kus, New Jersey
E.D.N.Y. Docket No. 17-MJ-321
Former Teacher Pleads Guilty to Child Sex Tourism and Child Pornography OffensesRead the Press Release
An Evergreen, Alabama, teacher pleaded guilty today to production of child pornography, possession of child pornography and travel in foreign commerce for the purpose of engaging in illicit sexual conduct with a minor, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Steve Butler of the Southern District of Alabama.
Clarence Edward “Bud” Evers Jr., 53, pleaded guilty before U.S. District Judge Kristi DuBose of the Southern District of Alabama. Evers was employed as a technology teacher with the Conecuh County, Alabama, Board of Education at the time of his arrest on Feb. 11, 2016, and has been in custody since that time. Sentencing is scheduled for July 14, 2017.
According to admissions in his plea, Evers traveled annually to Thailand during the summer months. While in Thailand, Evers paid minor boys as young as thirteen years old to engage in illicit sexual conduct and took sexually explicit photographs of them. Evers admitted that, during a 2014 trip, he photographed his victims engaging in sexually explicit conduct. In addition, Evers admitted that he had other images and videos of child sexual exploitation on his computers and other electronic devices, as well as substantial amounts of encrypted data.
Trial Attorney Jessica Urban of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorneys Sean Costello and Maria Murphy of the Southern District of Alabama are prosecuting the case. U.S. Customs and Immigration Enforcement’s Homeland Security Investigations is investigating the case with substantial assistance from CEOS’s High Technology Investigative Unit.
This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.justice.gov/psc.
Former Teacher Pleads Guilty to Child Pornography, Child Sex Tourism ChargesRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announces that Clarence Edward Evers, Jr., also known as Bud Evers, 53, of Evergreen, Alabama, pled guilty today to charges that he produced child pornography, possessed child pornography, and traveled in foreign commerce with the intent to engage in illicit sexual conduct. Evers pled guilty to three counts of the eleven-count indictment, and is set to be sentenced on July 14, 2017 before Chief United States District Judge Kristi K. DuBose.
Production of child pornography is punishable by imprisonment of a minimum of 15 years up to 30 years, a fine of $250,000, lifetime supervision by the United States Probation Office, and restitution. Travel in foreign commerce with intent to engage in illicit sexual conduct is punishable by a 30-year term of imprisonment, a $250,000 fine, lifetime supervision, and restitution. Possession of child pornography carries a maximum penalty of 10 years in prison, a $250,000 fine, lifetime supervision, and restitution.
Evers, previously employed as a technology teacher at Hillcrest High School in Conecuh County, admitted in documents filed as part of his guilty plea that he traveled each summer to Thailand, where he paid minor boys as young as thirteen to engage in illicit sexual conduct and that he took sexually explicit photographs of boys. One of the victims, a 15-year old boy, made a report about being paid approximately $22 by Evers to engage in sex acts with him, and witnessing Evers engage in sex acts with another boy. Evers was identified through Facebook communications he had with the boy, and a search warrant was executed at Evers’s home in Evergreen on April 1, 2015. A substantial amount of child pornography, including videos and photographs of boys engaged in sexually explicit conduct, was recovered from Evers’s home. Although Evers had encrypted many of his electronic devices, the unencrypted data showed that Evers had accessed, downloaded, and produced child pornography. Evidence collected during the investigation also showed that, for years, Evers had discussed and coordinated his travel to and within Thailand with other men interested in engaging in commercial sex acts with boys in that country.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations and prosecuted by Assistant United States Attorneys Sean P. Costello and Maria E. Murphy, and Trial Attorney Jessica Urban of the Department of Justice’s Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Substantial additional investigation and analysis were provided by CEOS’s High Technology Investigative Unit.
This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.justice.gov/psc.
Former Seattle Bar Owner Sentenced to Prison for Tax EvasionRead the Press Release
The former owner of three bars and restaurants in the Seattle area was sentenced today in U.S. District Court in Seattle to eight months in prison, one year of supervised release and $800,000 in restitution for multiple misdemeanor counts of failing to file tax returns, announced U.S. Attorney Annette L. Hayes. ERIC M. GALANTI, 41, who now resides in Olympia, Washington failed to file his business and personal tax returns between 2006 and 2012. GALANTI owned several restaurants during that time including Alki Crab & Fish in West Seattle, the Admiral Pub in West Seattle, and Bourbon Jacks (aka Poppas Pub or Charlies Pub) in Kent. At the sentencing hearing U.S. District Judge Richard A. Jones said GALANTI “enjoyed the lifestyle of the ‘rich and famous,’… but every single year when April 15th rolled around a light had to come on that you owed taxes…. This was a flagrant and ongoing offense.”
According to records filed in the case, the lengthy investigation by the Internal Revenue Service Criminal Investigation Division found that GALANTI’s businesses were generating significant revenues, but he failed to keep accurate records. Bank records show two of the restaurants had deposits of more than $7.7 million between 2006 and 2011. While he failed to file and pay his taxes, GALANTI enjoyed a lavish lifestyle: using forged tax documents to facilitate his purchase of a $400,000 yacht; taking expensive trips to Hawaii, Las Vegas and the Caribbean; and paying more than $10,000 for Kenney Chesney concert tickets.
“As we approach tax day, Mr. Galanti’s sentence reminds us of our legal obligation to file complete and accurate tax returns with the IRS. Today, Mr. Galanti, who willfully failed to pay $800,000 in taxes, learned the consequences of neglecting his duty as an American and as a small business owner,” stated Special Agent in Charge Darrell Waldon of IRS Criminal Investigation. “Instead of paying taxes, Mr. Galanti rewarded himself with lavish vacations and a new yacht. His decision to ignore his civic responsibilities caught up with him today.”
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI). The case was prosecuted by Assistant United States Attorney Norman Barbosa.
Former Benefits Manager Sentenced to a Year in Prison for Embezzling More Than $400,000 from University PlanRead the Press Release
WASHINGTON – A former manager of an employee benefit plan at Howard University was sentenced today to a year and a day in prison for embezzling more than $420,000, announced U.S. Attorney Channing D. Phillips and Michael Schloss, Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, Philadelphia Region.
Crystal Duncan Baker, 38, of Silver Spring, Md., pled guilty in February 2017, in the U.S. District Court for the District of Columbia, to a charge of theft or embezzlement from an employee benefit plan. She was sentenced by the Honorable James E. Boasberg. Following her prison term, she will be placed on three years of supervised release. She also is required to pay $420,128 in restitution and an identical amount in a forfeiture money judgment.
According to the government’s evidence, Baker worked for Howard University’s Benefit and Pension Administration from August 2010 through May 2015. The office administers benefits to the university’s administration, faculty, staff, and retirees. Baker began work as a temporary employee, but became full-time in September 2010, taking on the role of benefit supervisor. In December 2011, she became manager of benefits and pension. In both positions, she could make unilateral changes to the benefits plan without anyone’s approval.
Baker made unauthorized changes to six former Howard University employee’s pension accounts, one retired and five deceased. The changes included updated bank information that coincided with Baker’s personal checking account, routing number, and mailing address. Between April 2012 through August 2015, Baker fraudulently embezzled $420,128 by directing banks to make fraudulent pension disbursements to her checking account and home address instead of to the six victims’ accounts. She used this money for her own expenses and benefit.
In announcing the sentence, U.S. Attorney Phillips and Regional Director Schloss commended the work of those who investigated the case from the U.S. Department of Labor, Employee Benefits Security Administration. They also expressed appreciation for the work of those who handled the case at the U.S. Attorney’s Office, including former Special Assistant U.S. Attorney Vesna Harasic-Yaksic, who assisted with forfeiture issues, Criminal Investigator Nicole S. Hinson, and Paralegal Specialist Aisha Keys. Finally, they acknowledged the work of Assistant U.S. Attorneys Kendra D. Briggs and Derrick Williams, who investigated and prosecuted the case.
Federal Appeals Court Upholds Convictions of William B. Aossey, Jr., Midamar Corporation, and Jalel AosseyRead the Press Release
The criminal fraud and related convictions of William B. Aossey, Jr.; Jalel Aossey; and Midamar Corporation, all of Cedar Rapids, Iowa, were upheld today by the United States Court of Appeals for the Eighth Circuit.
On July 3, 2015, the founder of Midamar Corporation (Midamar) and Islamic Services of America, William B. Aossey, Jr., age 75, of Cedar Rapids, Iowa, was convicted by a federal jury on 15 counts of conspiracy, making false statements on export certificates, and wire fraud. On February 26, 2016, Aossey was sentenced to 24 months’ imprisonment and fined $60,000. Aossey was also ordered to forfeit $184,983 representing proceeds of the fraud. In addition, he was ordered to pay costs of prosecution of $16,824 and a special assessment of $1500.
On September 9, 2015, Midamar pleaded guilty to one count of conspiracy to commit the following federal offenses: mail and wire fraud; covering up material facts by a scheme; making and using false statements and documents in a matter within the jurisdiction of the Department of Agriculture; making false statements on export certificates with the intent to defraud; and selling misbranded meat in interstate commerce with the intent to defraud. Midamar’s guilty plea was entered by its Treasurer and a corporate director, Yahya Nasser Aossey. On February 26, 2016, Midamar was sentenced to pay a 20,000 fine and ordered to forfeit $600,000. Midamar was also placed on probation for five years. As a special condition of probation, Midamar was ordered to abide by all terms of a consent decree entered into with the USDA Food Safety Inspection Service. The consent decree required Midamar to take a variety of corrective actions and to remove certain corporate officials including Jalel Aossey and William B. Aossey from the business. Midamar was also ordered to pay a special assessment of $400.
On September 11, 2015, Jalel Aossey, age 42, then President of Midamar, pleaded guilty to one count of conspiracy to commit the following federal offenses: mail and wire fraud; covering up material facts by a scheme; making and using false statements and documents in a matter within the jurisdiction of the Department of Agriculture; making false statements on export certificates with the intent to defraud; and selling misbranded meat in interstate commerce with the intent to defraud. On March 11, 2016, Jalel Aossey was sentenced to serve 12 months’ and one day imprisonment and fined $30,000. In addition, he was ordered to pay a special assessment of $100. Aossey was ordered to serve a three-year term of supervised release after the prison term and to comply with the terms of a separate consent decree entered into with the USDA Food Safety Inspection Service. As part of that agreement and his plea agreement, Aossey was required to divest his interest in Midamar and to no longer be associated with the management or operations of Midamar.
William B. Aossey, Jr., Midamar, and Jalel Aossey each appealed their convictions. The defendants each claimed the district court, The Honorable Linda R. Reade, United States District Judge for the Northern District of Iowa, had erred by denying their motions to dismiss the cases. In their motions to dismiss, the defendants contended the district court lacked jurisdiction over their cases because Congress had reserved exclusive enforcement authority over the alleged statutory violations to the Secretary of Agriculture, and that the United States Attorney could not proceed against the defendants in a criminal prosecution. The cases were consolidated for resolution on appeal.
In a written opinion filed today, the United States Court of Appeals for the Eighth Circuit denied the appeals. The Court held that Congress did not express a “clear and unambiguous” intent that the district courts would not have jurisdiction over criminal violations of the Federal Meat Inspection Act. Rather, the “better reading” of the applicable statute is that it “provides an administrative enforcement mechanism for the Secretary of Agriculture that supplements the authority of the United States Attorneys to pursue criminal prosecutions in the district courts.” Further, here, “the United States Attorney properly proceeded in the district court.”
The cases were prosecuted by Assistant United States Attorneys Richard L. Murphy and Timothy L. Vavricek and were investigated by the United States Department of Agriculture Office of Inspector General Investigations and Internal Revenue Service Criminal Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers: 14-CR-00116-LRR (William B. Aossey, Jr.); 14-CR-00138-LRR (Midamar & ISA).
Follow us on Twitter @USAO_NDIA.
Everett Software Salesman Sentenced to Prison for Selling ‘Tax Zapper’ Software to Enable Cheating on State and Federal TaxesRead the Press Release
An Everett, Washington man who worked for a Canadian company that sells point of sale computer software, was sentenced today in U.S. District Court in Seattle to 18 months in prison and three years of supervised release for his role in a scheme to sell ‘Tax Zapper’ software, announced U.S. Attorney Annette L. Hayes. JOHN YIN, 66, pleaded guilty in December 2016, to wire fraud and conspiracy to defraud the government admitting that he promoted and sold a revenue suppression software that allowed restaurants to underreport their sales and illegally lower their tax bills. The software – sometimes called a “Zapper” program - resulted in a loss amount of more than $3.4 million. At the sentencing hearing U.S. District Judge Richard A. Jones said YIN served as a facilitator for illegal operations. “This was illegal, this was criminal and you had to know you have to pay taxes… but you continued – motivated by greed.”
“This defendant sold businesses a high tech tool that had only one purpose – to give businesses a leg up by cheating the taxman,” said U. S. Attorney Annette L. Hayes. “In addition, by not paying their fair share of taxes, they cheated state and federal programs, and victimized workers whose employment and social security taxes went unpaid as well. Partnering with the Washington State Attorney General’s Office, we will ensure that those who are responsible for this conduct will be held to account.”
“Using illegal software to avoid tax obligations harms both taxpayers and businesses that compete fairly and play by the rules,” said Attorney General Bob Ferguson. “I’m proud to work with U.S. Attorney Hayes to stamp out this fraud.”
According to records in the case, YIN was a salesman for Profitek, a British Columbia, Canada company selling point of sale (POS) systems for hospitality and retail industries. In addition to its Canadian headquarters, the Company has offices in China and a growing dealership network across North America. The Company designed, or had designed, and marketed, sold and supported revenue suppression software (RSS) as an add-on to its Profitek point of sale software. This RSS functioned only with the Profitek POS software.
Point of Sale software creates a database of transactions that is used to calculate a business’s tax obligations. Revenue suppression software (RSS) is used to modify a business’s POS database for the purpose of tax evasion. When executed, the RSS program deletes all or some of the business’s cash transactions, and then reconciles the books of the business. The result is business records that appear to be complete and accurate but, in fact, are false and fraudulent in that they show less than total income earned.
JOHN YIN successfully sold the POS software, and assisted in the widespread distribution of the Zapper software, to dozens of customers over the course of several years. Prosecutors told the court that “through the defendant, a hundred restaurants created a hundred sets of false books.”
Between 2010 and 2013, eight different restaurants in the Seattle area used the software and underpaid their state and federal taxes by amounts ranging from a low of just over $145,000 to more than $910,000. When the restaurant owner who underpaid taxes by more than $900,000 was confronted about using the tax zapper software she admitted she used the unreported cash to pay some employees in cash. In addition, she did not withhold mandatory social security or Medicare taxes for these employees.
“The Revenue Suppression or ‘Zapper’ software peddled by Mr. Yin was sold with the intent to help restaurants and businesses dodge federal, state and local taxes. Today, Mr. Yin is being held responsible for his role in trying to magically zap away millions of dollars from the IRS and other taxing authorities,” stated Special Agent in Charge Darrell Waldon of IRS Criminal Investigation. “There is no magic formula to commit tax evasion. No matter how high tech the tools, or complex the scheme, IRS – Criminal Investigation will continue to work with our law enforcement partners to prosecute tax cheats and promote parity in our tax system.”
“Today's sentencing resulted from several years of investigation by state and federal agencies into Mr. Yin’s network, which sold tax evasion software to a long list of businesses in Washington and other states. But our work isn’t done, and we intend to keep working with the Attorney General and our federal partners to prosecute the use of sales suppression software,” said Vikki Smith, director of state Department of Revenue.
YIN has agreed to pay $3,445,589 in restitution to the United States and Washington State. The restitution obligation is shared by the eight restaurants detailed in the federal case that cheated on their taxes.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI), and the Washington State Department of Revenue with special assistance from the Washington State Attorney General’s Office.
The case was prosecuted by Assistant United States Attorney Susan Roe.
Eric Dillon Pleaded GuiltyRead the Press Release
HAMMOND-Acting United States Attorney Clifford D. Johnson announced today that Eric M. Dillon, 28, of Gary, Indiana entered a plea of guilty to one count of Hobbs Act Robbery, and one count of causing death during a crime of violence before District Court Judge Philip P. Simon. This plea was accepted by the court.
On January 20, 2016, at approximately 4:30 am, Dillon entered the 7-Eleven store at 6031 Hohman Avenue, Hammond, Indiana with a handgun, demanded money, and shot and killed the clerk, Roger Unton, 60, of Blue Island, Illinois.
The sentencing in this case is scheduled to occur on August 15, 2017 at 10:00 a.m.
This case was investigated by the Federal Bureau of Investigation and the Hammond Police Department with assistance from the Lake County Prosecutor’s Office. The case is being prosecuted by Assistant United States Attorneys Thomas M. McGrath and Jennifer Chang.
# # #
Eagle Butte Man Sentenced for Assault by Strangulation and SuffocationRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Assault by Strangulation and Suffocation was sentenced on April 10, 2017, by U.S. District Judge Roberto A. Lange.
Delano White Eagle, age 46, was sentenced to 46 months in custody, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
White Eagle was indicted by a federal grand jury on September 20, 2016. He pled guilty on January 24, 2017.
The conviction stemmed from an incident on August 24, 2016, when White Eagle unlawfully assaulted his dating partner by strangling and suffocating her during an argument.
This case was investigated by the Ziebach County Sheriff’s Office and Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
White Eagle was immediately turned over to the custody of the U.S. Marshals Service.
Eagle Butte Man Charged with Assault of a Dating Partner by Strangulation and SuffocationRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault of a Dating Partner by Strangulation and Suffocation.
Nathan Smith, age 41, was indicted on April 12, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 12, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on April 6, 2017, Smith unlawfully assaulted his dating partner by strangling and suffocating her during an argument.
The charge is merely an accusation and Smith is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Smith was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
District Man Sentenced to Two Years in Prison for Break-Ins of Two Elementary Schools and a Barber ShopRead the Press Release
WASHINGTON – Tyree Irving, 20, of Washington, D.C., was sentenced today to two years in prison for breaking into two elementary schools and a barber shop within a matter of hours last year, U.S. Attorney Channing D. Phillips announced.
Irving pled guilty in November 2016, in the Superior Court of the District of Columbia, to one count of conspiracy to commit burglary and three counts of second-degree burglary. He was sentenced by the Honorable Neal E. Kravitz. Following his prison term, Irving will be placed on three years of supervised release.
According to the government’s evidence, in the early morning of April 2, 2016, officers from the District of Columbia Public Schools and the Metropolitan Police Department (MPD) responded to break-ins at two different schools.
First, officers responded to Barnard Elementary School, in the 400 block of Decatur Street NW. Individuals had broken a window to get into the school and removed a multi-unit Apple Macbook / iPad charging unit and wheeled it outside. These individuals also stole 14 D.C. Public School iPads, two iMac computers, two keyboards, and two mice. Video surveillance showed four young males wearing masks walking throughout the empty school at approximately 1:40 a.m., carrying varying pieces of electronic equipment, including the charging unit.
Officers then responded to Houston Elementary School, in the 1100 block of 50th Place NE. Individuals had broken a window to get into the school and stole a personal laptop from a teacher, as well as a laptop and iPad that belonged to D.C. Public Schools. Video surveillance showed three young males wearing masks walking and running throughout the empty school at approximately 2:50 a.m., carrying varying pieces of electronic equipment. The individuals on the video surveillance in Barnard Elementary and the individuals on the video surveillance in Houston Elementary appear, with the exception of one missing person, to be the same.
Outside of Houston Elementary School, police discovered a van that was still running with its ignition punched out. Inside the van, police located a revolver, as well as multiple pieces of equipment stolen from Barnard Elementary, including two iMac computers, four keyboards, four mice, and multiple iPads. Police learned that the van was stolen the previous night.
In a separate investigation, police learned of another break-in early April 2, 2016 at a barber shop in the 800 block of Rhode Island Avenue NW. Burglars there took two Apple keyboards and two Apple mice. This burglary took place at 2:07 a.m.
Police and members of the District of Columbia Department of Forensic Sciences (DFS) processed the crime scenes and the van. DFS collected latent fingerprints from the items recovered inside of the van. Irving later was linked to several items, including an Apple iMac monitor stolen from Barnard Elementary School, a computer mouse, and an apple keyboard with number pad stolen from Barnard Elementary School.
In announcing the sentence, U.S. Attorney Phillips commended the work of the Metropolitan Police Department. He also expressed appreciation for the assistance of the District of Columbia Public Schools and the Latent Fingerprint Unit of the District of Columbia Department of Forensic Sciences. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Gregory Rosen and Jillian Willis, who investigated and prosecuted the matter.
District Man Sentenced to 20 Years in Prison for Role in Killing of Man After Home InvasionRead the Press Release
WASHINGTON – Eugene Sherman, 54, of Washington, D.C., was sentenced today to 20 years in prison for his role in the killing of a man following a break-in of the victim’s condominium in Northwest Washington, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Acting Chief of the Metropolitan Police Department (MPD).
Sherman pled guilty in January 2017, in the Superior Court of the District of Columbia, to a charge of second-degree murder. He was sentenced by the Honorable Hiram E. Puig-Lugo. Following his prison term, Sherman will be placed on five years of supervised release. A co-defendant, Joseph Jennings, Jr., 36, was sentenced in December 2016 to a 24-year prison term after earlier pleading guilty to a charge of second-degree murder while armed.
According to the government’s evidence, on the morning of Jan. 22, 2016, Sherman enlisted the assistance of Jennings and another man in a plan to break into a condominium in the 400 block of M Street NW and steal marijuana. Jennings and the other man both were armed. At about 9:48 a.m., Jennings used an object to forcibly pry open the locked front door to the building. Sherman waited nearby, while Jennings and the other man continued inside the building. As they attempted to gain entry to the unit through a sliding glass balcony door, the victim, Matthew Shevlin, fled out of the front door and began screaming for help.
Jennings chased Mr. Shevlin, and a struggle ensued. During this struggle, Jennings shot Mr. Shevlin, 37, who later died of multiple gunshot wounds.
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 (MPD). They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocates James Brennan and Jennifer Clark, and Supervisory Paralegal Specialist Sharon Newman. Finally, they commended the work of Assistant U.S. Attorney David Misler, who investigated and prosecuted the matter.
District Man Sentenced to 15-Year Prison Term for Assault, Weapons, and Other OffensesRead the Press Release
WASHINGTON – Robert Horne, 36, of Washington, D.C., was sentenced today to a 15-year prison term for assaulting the victim, his ex-girlfriend’s new boyfriend, with a firearm, discharging the gun in public to threaten the victim, and then trying to cover up the crime by asking the victim to lie, announced U.S. Attorney Channing D. Phillips.
Horne was found guilty by a jury in February 2017 of assault with a dangerous weapon, felony threats, obstruction of justice, contempt of court, and related firearms offenses. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Danya A. Dayson. Following his prison term, Horne will be placed on eight years of supervised release.
According to the government’s evidence, early on April 13, 2016, Horne’s ex-girlfriend and her boyfriend, the victim, found Horne in a drunken state, passed out in his ex-girlfriend’s apartment in Southwest Washington. The victim, anticipating a fight between Horne and Horne’s ex-girlfriend, walked out of the apartment to de-escalate the situation. The victim thereafter waited in the lobby, charging his phone, waiting for Horne to leave.
However, after leaving the apartment, Horne found the victim and began to scream at him for interfering with his family. The victim once again tried to calm Horne, to no avail. Instead, Horne brandished a weapon, pistol-whipped the victim in the face, and then dragged the victim outside. Once outside, Horne continued to threaten the victim as the victim held his hands up in surrender. Horne then shot the gun into the air and fled the scene.
Officers with the Metropolitan Police Department (MPD) stopped Horne shortly after the gunshot and found him with the weapon. He was arrested and later ordered by the Court to stay away from and have no contact with the victim. Regardless, Horne began to violate these stay-away conditions and tried to contact the victim through his ex-girlfriend. He wrote letters and begged his ex-girlfriend to convince the victim to drop the charges, recant his testimony, and lie in court. He even offered to pay the victim $2,000 to avoid any involvement in the case.
The victim refused these offers. His testimony at trial helped to convict the defendant, along with other evidence, including video footage from the apartment complex, ShotSpotter evidence, and police officer testimony.
In announcing the sentence, U.S. Attorney Phillips commended the work of the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys David Gorman, Christopher Bruckmann, and Kamil E. Shields; Paralegal Specialist T.J. McPhail; Litigation Technology Specialists Aneela Bhatia and Anisha Bhatia; Victim/Witness Advocate Lu Lan; Victim/Witness Program Specialist Wanda Queen, and Intern A.J. Carvalho. Finally, he commended the work of Assistant U.S. Attorneys Jessica Brooks and Louis Manzo, who investigated and prosecuted the case.
California Man Charged with Conspiracy Charges to Defraud Enterprise LeasingRead the Press Release
St. Louis, MO – Yi Liu, a/k/a “Ronnie”, 28, Orange County, CA, was charged in a criminal complaint alleging that he conspired to defraud Enterprise Holding, a St. Louis, Missouri-based company. He was arrested in California on Thursday, April 13. His detention hearing has been set for Monday morning, April 17 in the Central District of California at the Santa Ana Federal Courthouse.
According to the affidavit filed with the criminal complaint, Liu and others defrauded Enterprise Holdings, which is the parent company of Enterprise, Alamo, and National car rental brands by setting up a fake car rental website. To carry out this scheme, he used fraudulent identification documents and caused the proceeds of the crimes to be wired to a bank account. From approximately May 2016 until present, Enterprise has suffered a loss of approximately $600,000 due to Liu’s fraudulent purchase and resale of car rental vouchers.
If convicted, conspiracy to commit wire fraud carries a maximum penalty of five years in prison and/or fines up to $250,000; aggravated identity theft carries a maximum penalty of 12 years consecutive to any other term of imprisonment and/or fines up to $250,000; and wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
As is always the case, charges set forth in a criminal complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty. This case was investigated by the Federal Bureau of Investigation with the assistance of Homeland Security Investigations.
###
liu_-_affidavit_redacted.pdfCalifornia Drug Dealer Sentenced to Prison for Distributing MethRead the Press Release
ALEXANDRIA, Va. – A California woman was sentenced to 11 years in prison today for distributing multiple pounds of methamphetamine.
Kimberly Roxann Braun, 34, of Escondido, pleaded guilty on January 13. According to court documents, Jimmy Oliver Zeigler II, who operated in the Washington, D.C. metropolitan area, regularly traveled to California to obtain large quantities of methamphetamine. Braun met with Zeigler on several occasions and arranged for him to purchase pound quantities of methamphetamine. Braun also used the mail to ship approximately one pound of methamphetamine to one of Zeigler’s co-conspirators.
The case was investigated by the DEA and U.S. Postal Inspection Service as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Ring of Ice. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. 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.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis III. Assistant U.S. Attorney Carina A. Cuellar prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-269.
Burke Man Sentenced for Multiple Armed RobberiesRead the Press Release
ALEXANDRIA, Va. – Larry Pyos, Jr., 35, of Burke, was sentenced today to 115 years and 10 months in prison for charges related to multiple armed robberies of businesses in Fairfax County and Falls Church.
Pyos faced a mandatory minimum of 10 years for discharging a firearm during one of his armed robberies, and he faced a mandatory minimum of 25 years in prison for discharging or brandishing a firearm during each of four other armed robberies.
Pyos was found guilty by a federal jury on Oct. 20, 2016. According to court documents, on Aug. 11, 2016, Pyos was indicted for conspiracy, armed robbery, using firearms in committing those robberies and being a felon in possession of firearms. In two of the robberies he fired shots at employees. According to court records and evidence presented at trial, Pyos’ crime spree started on Christmas Eve 2015, when he robbed the Good Fortune Supermarket in Falls Church. Pyos, who was armed with a handgun, fired at a store employee as he fled. Pyos later robbed the Shri Krishna grocery store, the Dollar Power store, and the Ding How Carryout all in Springfield. Pyos next robbed the Hong Kong Palace Restaurant in Falls Church on April 26, 2016, and was again armed with a handgun that he fired at a pursuing employee as he fled. Pyos’ final robbery was of a Subway sandwich shop in McLean on May 9, 2016. Pyos was arrested on May 11, 2016, and has been in custody since that date. The two handguns Pyos used in committing these robberies were purchased by his girlfriend and co-conspirator, who previously pleaded guilty to charges arising from these robberies and testified at Pyos’ trial.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew W. Vale, Assistant Director in Charge of the FBI's Washington Field Office; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee. Assistant U.S. Attorneys Tyler McGaughey and Michael Rich prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-178.