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Tuesday 11 April 2017
Jury Convicts Linn County Woman of Welfare FraudRead the Press Release
PORTLAND, Ore. – On Thursday, April 6, 2017, a federal jury found a Lebanon, Ore. woman guilty of wire fraud and theft. Jamie Faye Cobat, 52, was convicted of stealing approximately $29,000 in welfare benefits by making false claims about her household composition and resources.
Federal and state agents began investigating Cobat in 2014 after social workers received allegations that Cobat’s teenage son could no longer live with her because she was living with a convicted sex offender. Further investigation determined that Cobat told the Social Security Administration (SSA) and the Oregon Department of Human Services (Oregon DHS) that her son was living her, which enabled her to receive Supplemental Security Income (SSI), Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance to Needy Families (TANF) benefits. In fact, her son had not lived with her for more than two years.
According to court records and trial testimony, Cobat began living with her partner at his home in Lebanon in August 2012 after his release from prison. At that time, Cobat’s son went to live with his father due to the partner’s post-prison supervision conditions prohibiting his contact with minors. In August 2014, Cobat and her partner married. Between August 2012 and November 2014, Cobat made repeated false statements to SSA and Oregon DHS that her son was living with her, that she and her husband did not live together and that she was not married. As a result, she received $19,247 in SSI, $5,825 in SNAP (commonly referred to as food stamps), and $2,845 in TANF benefits.
Cobat will be sentenced on July 13, 2017 before United States District Court Judge Michael W. Mosman.
The case was investigated by the SSA Office of Inspector General and Oregon DHS, and prosecuted by Helen Cooper and Gavin Bruce, Assistant United States Attorneys for the District of Oregon.
Itasca County Felon Indicted for Possession of Methamphetamine and FirearmsRead the Press Release
Acting United States Attorney Gregory G. Brooker announced an indictment charging JAYSEN LANE HEYER, 38, with one count of possession with intent to distribute methamphetamine and two counts of being a felon in possession of a firearm. On April 13, 2017, HEYER made his initial appearance in U.S. District Court in Duluth, Minn.
According to the indictment, on December 28, 2016, HEYER was found to be in possession of approximately 210 grams of methamphetamine, a Smith and Wesson M&P 40 pistol and a Luger 9mm Tech 9 pistol. Because he is a felon, HEYER is prohibited under federal law from possessing a firearm at any time.
If convicted, HEYER faces a potential maximum penalty of 40 years in prison for drug possession and up to 10 years for being a felon in possession of a firearm. All sentences will be determined by a federal district court judge.
This case is the result of an investigation conducted by the Itasca County Sheriff’s Office, Minnesota Bureau of Criminal Apprehension, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the U.S. Marshall’s Service.
This case is being prosecuted by Assistant United States Attorney Deidre Y. Aanstad.
Defendant Information:
JAYSEN LANE HEYER, 38
Squaw Lake, Minn.
Charges:
- Possession with Intent to Distribute Methamphetamine, 1 count
- Felon in Possession of a Firearm, 2 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Information Technology Firm Pays $1 Million to Settle Allegations of Visa FraudRead the Press Release
DALLAS—Sistemas Globales S.A., an Argentine information technology and consulting firm, has agreed to a civil settlement of allegations that it and its corporate affiliates, including U.S. affiliate Globant LLC (collectively “Globant”), violated the False Claims Act and the Program Fraud Civil Remedies Act, announced U.S. Attorney John R. Parker of the Northern District of Texas.
The settlement relates to Globant’s use of B-1 visas for certain of its foreign national employees. Foreign nationals admitted to the United States on a B-1 visa are permitted to engage in certain short-term business activities like negotiating contracts, consulting with business associates, or attending conventions or conferences. However, a B-1 visa is not proper for foreign nationals who are seeking to perform skilled or unskilled labor in the United States. Companies wishing to employ foreign nationals in the United States must seek proper work visas for their employees, at a higher cost and with additional requirements to protect U.S. workers.
With respect to Globant, the United States contended that Globant caused certain of its foreign-national employees to apply for and obtain B-1 visas to travel into the United States for the stated purpose of “training” or “knowledge transfer,” but that the true purpose of travel was to perform information technology work in the United States that was not permissible on a B-1 visa. The United States further contended that the Globant employees would not have met the requirements for the issuance of B-1 visas if the true facts regarding their intended activities had been disclosed. Globant agreed to pay $1 million to settle the matter. Globant denies the United States’ allegations and fully cooperated with the investigation and, by settling, did not admit any wrongdoing or liability.
The investigation was initiated after U.S. Department of State consular officials in Argentina reported unusual visa application activity by Globant employees in that country. The matter was handled by Assistant U.S. Attorney Brian W. Stoltz. The U.S. Department of State’s Diplomatic Security Service investigated, and attorneys from the U.S. Department of State and U.S. Citizenship and Immigration Services, Department of Homeland Security also participated in the resolution of the matter.
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Houston Man Sentenced for East Texas Drug TraffickingRead the Press Release
BEAUMONT, Texas - A 41-year-old Houston man has been sentenced to prison for federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Jesus Najar Silva pleaded guilty on Nov. 29, 2016, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 90 months in federal prison today by U.S. District Judge Thad Heartfield.
According to information presented in court, Jesus Najar Silva was identified as a supplier during an investigation into the distribution of multi-kilograms of methamphetamine in Houston and the Eastern District of Texas. Silva made four deliveries of more than one pound of methamphetamine to an undercover officer in Houston and Cleveland, Texas. Based on Title III wiretaps and other investigative tools, agents learned that at least three other individuals were involved in this organization. The recorded calls revealed that Silva negotiated the sale of a total of 6.1 kilograms of methamphetamine and four kilograms of cocaine during this conspiracy. These calls also led to the identification, arrest and prosecution of Silva's source of supply, and two other members of this conspiracy.
This case is the result of an extensive joint investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This case was investigated by the Drug Enforcement Administration, Texas Department of Public Safety and the Houston Police Department and was prosecuted by Assistant U.S. Attorney Michelle Englade.
Honduran National Pleads Guilty to Illegally ReentryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that RONNEL OMAR SANCHEZ-VILLAFRANCA, age 37, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal reentry of removed alien.
According to court documents, on or about March 8, 2017, SANCHEZ-VILLAFRANCA was found in the United States after having been officially deported and removed on or about August 9, 2013.
After accepting his guilty plea, U.S. District Judge Jay C. Zainey sentenced SANCHEZ-VILLAFRANCA to time served, ordered him to serve one year of supervised release, and pay a $100 special assessment. SANCHEZ-VILLAFRANCA will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.
U.S. Attorney Duane A. Evans praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
Hingham Man Pleads Guilty to Defrauding InvestorsRead the Press Release
BOSTON – A Hingham man pleaded guilty today in U.S. District Court in Boston in connection with defrauding neighbors and other acquaintances by agreeing to invest their money which he then stole for his own use or to pay off earlier investors.
Stephen S. Eubanks, 48, pleaded guilty today to one count of wire fraud after being charged and arrested in November 2016. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for July 11, 2017.
In February 2010, Eubanks opened Eubiquity Capital LLC, a hedge fund that, by 2016, took in approximately $529,000 in investor funds. Eubanks was previously a registered broker with several large brokerage firms, but was terminated in the wake of customer complaints and other disciplinary issues. In 2013 and 2014, Eubanks nonetheless told two acquaintances that he was a registered financial advisor running a hedge fund affiliated with Goldman Sachs, TD Ameritrade, UBS Bank and Fidelity Investments. One of the acquaintances invested $125,000 with Eubanks, while the other invested $20,000. A third person, living in Florida, invested $50,000 with Eubanks in 2013.
Eubanks invested some of his clients’ funds, but used a significant portion for personal expenses. Moreover, when asked for account statements summarizing the fund’s performance, Eubanks fabricated account statements or used account statements from unrelated accounts to deceive his clients into believing that their money had earned a healthy return. In some instances, Eubanks ran the fund as a Ponzi scheme, using money deposited with him by newer investors to pay returns to earlier investors. Eubanks defrauded 32 people of approximately $435,000.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The Massachusetts Securities Division, which conducted an earlier civil investigation of Eubanks, provided significant assistance to the U.S. Attorney’s Office.
Assistant U.S. Attorney Andrew E. Lelling of Weinreb’s Economic Crimes Unit is prosecuting the case.
Grant County man guilty of firearm chargeRead the Press Release
ELKINS, WEST VIRGINIA – A Petersburg, West Virginia man was convicted today of a firearm violation, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Benjamin Wayne Hyre, 37, pled guilty to one count of “Felon in Possession of a Firearm.” Hyre, having previously been convicted of two separate felonies in Grant County Circuit Court, admitted to having in his possession a .22-250 caliber rifle. The crime occurred in March 2016 in Grant County.
Hyre faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Grant County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Georgetown, Indiana man sentenced for bank robberyRead the Press Release
Sentenced for his role in two Posey County Community State Bank incidents.
PRESS RELEASE
Evansville – United States Attorney Josh J. Minkler announced today the sentencing of a Georgetown, Indiana, man on one count of bank robbery and one count of entering a bank with the intent to commit robbery. Patrick Leo Sandmann, 26, was sentenced to 46 months’ imprisonment by U.S. District Judge Richard L. Young.
“Maintaining the safety of our Southern Indiana communities remains a top priority of this office,” said Minkler. “If you rob a bank in this district, you can be certain, we will arrest you, convict you and send you to federal prison for a very long time. “
On September 24, 2015, Sandmann entered the Community State Bank branch located on Evansville Street in Cynthiana, Indiana, and approached the teller’s window and handed the bank employee a note. The note contained the statements “give me all the money in your drawer” and “if you call the cops I will take you hostage.” The employee then removed all the cash, placed it in a bag, and handed it to Sandmann. Sandmann took the money and his note, leaving the bank with over $7,000.
On June 8, 2016, Sandman returned to Posey County to commit a second bank robbery. In that incident, Sandmann walked into the St. Wendel Community State Bank Branch and asked to use the restroom. A teller who witnessed the September 2015, robbery recognized Sandman and reported the situation to her manager. The manager approached Sandmann and told him there was no public restroom and he needed to leave.
The manager then called 911 and followed the suspect with his vehicle after he left the bank, reporting the suspect’s locations to law enforcement. The suspect crashed his vehicle in Posey County and then left the vehicle. Sandmann, fled into a nearby wooded area and was apprehended by a law enforcement canine officer shortly thereafter. A note was located on the ground near where Sandmann was apprehended which stated, “This is a robbery. Please remain calm. I need the money in the register. I don’t want to shoot anyone or take hostages.” Also located in the vehicle during the execution of a search warrant was a six-inch long knife and numerous personal documents belonging to Sandmann.
The case was the result of an investigation by the Federal Bureau of Investigation, the Indiana State Police and the Posey County Sheriff’s Department.
According to Assistant U.S. Attorney Pamela S. Domash, who prosecuted the case for the government, Sandmann must also serve three years of supervised release following his prison term.
Georgetown Woman Pleads Guilty to Embezzling over $60,000 Dollars from EmployerRead the Press Release
BOSTON – A Georgetown woman pleaded guilty today in federal court in Boston to embezzling over $60,000 from her former employer.
Michelle Higson, 41, pleaded guilty to one count of bank fraud and two counts of uttering a forged security. U.S. District Court Judge Denise J. Casper scheduled sentencing for July 26, 2017.
Higson worked as a part-time bookkeeper at a Rowley-based company where she was responsible for handling the company’s accounts payable, and used the company’s accounting software program to do so. From December 2013 through January 2015, Higson stole a series of the company’s checks and made them payable to cash. Higson then forged her employer’s signatures on the stolen checks, endorsed them herself, and deposited them for cash, which she used for personal expenses.
To conceal her criminal conduct and avoid detection by company officials, Higson falsified entries in the company’s general ledger to make it appear as if the stolen checks had been issued to satisfy payment to bona fide vendors. In total, Higson embezzled over $60,000.
The charge of bank fraud provides for a sentence of no greater than 30 years in prison, five years of supervised release and a fine of $1 million. The charge of uttering a forged security provides for a sentence of no greater than 10 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 and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorney Anne Paruti of Weinreb’s Major Crimes Unit is prosecuting the case.
Gainesville Tax Preparer Charged with Tax Fraud CrimesRead the Press Release
GAINESVILLE, FLORIDA – Belinda Gail Sheppard-Lewis, 59, of Gainesville, was arraigned today in the U.S. District Court in Gainesville after a federal grand jury returned an indictment charging her with filing a false tax return (four counts), wire fraud, and aggravated identity theft. The indictment was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The indictment alleges that Sheppard-Lewis, an owner of a tax preparation business, filed false personal individual income tax returns for 2010, 2011, 2012, and 2014, and under reported her income and tax liability. The indictment also alleges that Sheppard-Lewis fraudulently used another person’s social security number to claim the person as a dependent.
Sheppard-Lewis was released, pending trial. The trial is scheduled for May 23 at 8:30 a.m. at the United States Courthouse in Gainesville.
This case resulted from an investigation by the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Jason S. Beaton is prosecuting the case.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
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 OfficerFinal Defendant in Heroin Conspiracy SentencedRead the Press Release
Roanoke, VIRGINIA – The final defendant in a conspiracy that brought heroin into the Roanoke region from New York and Maryland was sentenced today in the United States District Court for the Western District of Virginia in Roanoke, Acting United States Attorney Rick A. Mountcastle announced.
Juan Reyes, 35, of Bronx, New York, who previously pled guilty to one count of conspiracy to distribute heroin, was sentenced today in District Court to 38 months in federal prison.
Several co-conspirators convicted as part of the case were previously sentenced in U.S. District Court. Kelly Marie Combs, 28, of Salem, Va., was sentenced to 42 months in federal prison. Hameen Shahid Irvin, 41, of Roanoke, Va., who was sentenced 90 months in federal prison. Devona Sue Terry was sentenced to 57 months in prison. Cleveland Terry was sentenced to 132 months in prison.
According to evidence presented at previous hearings by Assistant United States Attorneys Ashley B. Neese and Jennie L. M. Waering, members of the conspiracy were responsible for trafficking large amounts of heroin into the Roanoke region from New York and Baltimore. Evidence showed members of the conspiracy regularly drove to New York and Baltimore to buy heroin and returned to Roanoke with the drug for redistribution.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Roanoke County Police Department and the Virginia State Police. Assistant United States Attorneys Ashley B. Neese and Jennie L. M. Waering prosecuted the case for the United States.
Federal Felon Pleads Guilty to New Drug and Firearm OffensesRead the Press Release
BOSTON – A Haverhill man, with prior criminal convictions in New York, pleaded guilty recently in U.S. District Court in Boston to drug and firearm offenses.
Gamal Jones, 37, pleaded guilty on Friday, April 7, 2017, to one count of being a felon in possession of a firearm and three counts of distribution of a controlled substance. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for July 6, 2017.
On Jan. 14, 2016, Jones was arrested following an investigation into cocaine distribution in Haverhill. Jones was found in possession of over 80 grams of crack cocaine, a Taurus .45 caliber handgun and a box of .45 caliber ammunition. Jones was previously convicted in federal court in Brooklyn, N.Y., for being a felon in possession of a firearm, in addition to prior convictions for criminal possession of a controlled substance, criminal possession of a loaded firearm, and assault in the third degree.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of no greater than 10 years in prison, up to three years of supervised release and a fine of $250,000. The charge of distribution of a controlled substance 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. 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 and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement today. Assistant U.S. Attorneys Nicholas Soivilien and John T. McNeil of Weinreb’s Criminal Division are prosecuting the case.
Fayetteville Man Sentenced for Car Jacking & Man and Woman Also Sentenced for Bank FraudRead the Press Release
GREENVILLE – The United States Attorney’s Office announced that today in Federal court, Senior United States District Judge Malcolm J. Howard sentenced BOBBY DESHAWN BAILEY, 22, of Fayetteville, North Carolina to 144 months imprisonment, followed by 5 years of supervised release. Also sentenced was ERICKA ANDREA MONIQUE JOHNSON, 22, of Shannon, North Carolina to 14 months imprisonment, followed by 5 years of supervised release.
BAILEY was named in an Indictment on September 7, 2016 charging him with Carjacking and Brandishing a Firearm During and In Relation To a Crime of Violence, and he pled guilty to those charges on February 13, 2017.
On January 5, 2015, an ex-boyfriend of ERICKA JOHNSON’s and his two sons, ages 8 and 14, exited their residence in St. Pauls, North Carolina, and walked towards their vehicle. As they did, BOBBY BAILEY (JOHNSON'S boyfriend at the time) and three other men, who were armed with handguns, approached the victims and yelled, "Police!"
BAILEY and the other men attempted to force the adult victim back into his residence; however, the door was locked. The victim’s girlfriend was inside the residence, but she refused to unlock the door. BAILEY and the others forced the ex-boyfriend and his children into the ex-boyfriend’s vehicle. The ex-boyfriend was bound with his own shoelaces, and he was repeatedly hit during the ordeal; his sons witnessed the abuse.
The victims were driven around the area while the armed kidnappers demanded money from them. The men pointed firearms at the victims and threatened that the victims would be harmed or killed if the kidnappers’ demands were not met. The kidnappers used the ex-boyfriend’s cellular telephone to call his girlfriend to demand money. The kidnappers also used the victim’s phone to call a friend of the victim, and the kidnappers demanded $10,000.00. The victim’s friend was informed that the victim and his children were going to be killed if he did not "hurry up."
The victim and his children were eventually taken to a wooded area in Fayetteville. The victims escaped, and the kidnappers fled with the victims' cell phones and the vehicle.
BAILEY and JOHNSON were also charged in a separate Indictment filed on June 1, 2016. The indictment charged them with two counts of Bank Fraud and Aiding and Abetting, and the indictment charged JOHNSON with Access Device Fraud and Aiding and Abetting. BAILEY pled guilty to the Bank Fraud counts on August 8, 2016. JOHNSON pled guilty to the three charges she faced on January 12, 2017.
The fraud investigation revealed in December 2015, BAILEY and JOHNSON, along with several unindicted co-conspirators, perpetrated a scheme to defraud banks, including the United States Automobile Association Federal Savings Bank (USAA) and other banks.
To perpetuate the fraud scheme, BAILEY and JOHNSON deposited stolen or counterfeit checks into automatic teller machines (ATMs) located throughout North Carolina and Virginia. As soon as the stolen or counterfeit checks were deposited, BAILEY, JOHNSON, and others involved in the conspiracy would withdraw funds from an ATM, or they would attempt to obtain the money via debit purchases and “cash back” at stores. They also moved money between accounts in order to make the transfer more difficult to track and to circumvent USAA's maximum ATM withdrawal policy.
These cases were investigated by the Federal Bureau of Investigation, the United States Department of the Treasury--Office of Inspector General, the Fayetteville Police Department, the St. Pauls Police Department, and the Hope Mills Police Department. Assistant U.S. Attorney Scott Lemmon is prosecuting the case on behalf of the government.
Espanola Man Pleads Guilty to Federal Bank Robbery Charge Arising Out of Robbery of Bank in Taos CountyRead the Press Release
ALBUQUERQUE – Troy Montoya, 24, of Espanola, N.M., pled guilty today in federal court in Albuquerque, N.M., to a bank robbery charge. The guilty plea was announced by Acting U.S. Attorney James D. Tierney, Special Agent in Charge Terry Wade of the Albuquerque Division of the FBI, Sheriff Jerry L. Hogrefe of the Taos County Sheriff’s Department and Town Marshal David Smith of the Red River Marshal’s Office.
Montoya, and co-defendants Jennifer Marissa Miera, 23, of Questa, N.M., and Shawn Michael Goodrum, Jr., 20, of Pima, Ariz., were arrested in Oct. 2016, on a criminal complaint charging them with offenses arising out of the robbery of the People’s Bank located at 121 East Main Street in Red River, N.M., on Oct. 6, 2016.
According to the complaint, Miera, conspired with Montoya to rob the bank by planning the robbery and purchasing items used to carry out the robbery, including gloves and medical masks, on Oct. 5, 2016. It further alleged that Miera and Montoya robbed the bank on Oct. 6, 2016. At the time, Miera was employed as a personal banker by the bank. The complaint alleged that Miera had attempted unsuccessfully to solicit Goodrum’s participation in the bank robbery conspiracy. Instead, Goodrum allegedly blackmailed Miera into giving him part of the proceeds from the robbery by threatening to report her role in the robbery to the police.
Montoya, Miera and Goodrum were indicted on Nov. 1, 2016. The three-count indictment charged Miera and Montoya with conspiracy to rob the bank and with bank robbery, and Goodrum with receiving proceeds from the bank robbery. According to the indictment, the defendants committed the crimes in Taos County, N.M.
During today’s proceedings, Montoya pled guilty to Count 1 of the indictment charging him with conspiracy. In entering the guilty plea, Montoya admitted that from Oct. 5 through 11, 2016, he acted with Miera and helped her facilitate the robbery of the People’s Bank in Red River on Oct. 6, 2016. Montoya did so by meeting with Miera to plan the bank robbery, purchasing disguise items, preparing a demand note and serving as the get-away driver of the bank robbery. At sentencing, Montoya faces a maximum penalty of five years in federal prison. A sentencing hearing has yet to be scheduled.
On March 14, 2017, Miera pled guilty to Counts 1 and 2 of the indictment charging her with conspiracy and bank robbery without the benefit of a plea agreement. At sentencing, Miera faces a maximum penalty of 20 years in federal prison. A sentencing hearing has yet to be scheduled.
Goodrum has entered a plea of not guilty to the charge against him in the indictment and is pending trial, which currently is scheduled for May 22, 2017 in Santa Fe, N.M. Charges in criminal complaints and indictment are merely accusations. Criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the FBI, the Taos County Sheriff’s Office, and the Red River Marshal’s Office and is being prosecuted by Assistant U.S. Attorney Paul H. Spiers.
Davenport Woman Sentenced to Prison for Stealing from the Scott County JailRead the Press Release
DAVENPORT, IA - On April 10, 2017, Jennifer Wierson, age 43, of Davenport, Iowa, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 21 months in prison for theft from a government agency receiving federal program funds, announced United States Attorney Kevin VanderSchel.
Wierson, a former Scott County Jail Senior Account Clerk, admitted stealing from different jail programs from as early as 2011 until April of 2015. The Scott County Sheriff’s office receives federal assistance in currency over $10,000 every calendar year and did so from 2011 through 2015, which makes Wierson’s thefts a federal offense. Wierson was also ordered to serve three years of supervised release following her imprisonment and to pay $100 towards the Crime Victims’ Fund.
In April of 2015, Scott County Jail employees discovered irregularities in the financial handling of various jail programs managed by Wierson. McGladrey LLP conducted a forensic audit to investigate these irregularities. That investigation revealed Wierson had stolen or misappropriated more than $160,000. On September 16, 2016, the United States Attorney filed a felony information, charging Wierson with theft from a government agency receiving federal program funds.
On September 29, 2016, Wierson pled guilty to a charge admitting she stole or misappropriated at least $169,000 from the Scott County Sheriff’s Office. After pleading guilty, Wierson was released and will report to the designated facility within the Federal Bureau of Prisons.
This investigation was conducted by the Davenport Police Department and the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Davenport Man Sentenced to 130 Months in Prison for Two Bank RobberiesRead the Press Release
DAVENPORT, IA - On April 10, 2017, Shawn Eugene Lee, age 39, of Davenport, Iowa, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 130 months in prison for each of two separate bank robberies, announced United States Attorney Kevin VanderSchel. The sentences were ordered to run at the same time. Lee was also ordered to serve three years of supervised release following his imprisonment and to pay $200 towards the Crime Victims’ Fund. Lee was ordered to pay restitution to both banks. In addition, $733 found on Lee when arrested was ordered forfeited to the United States.
On June 22, 2016, the grand jury returned a two-count indictment. Lee was charged with taking money by intimidation from the Northwest Bank and Trust on West Locust Street in Davenport on April 25, 2016, and with taking money by intimidation from the US Bank on North Division Street in Davenport on April 27, 2016. Both banks were then insured by the Federal Deposit Insurance Corporation. On November 10, 2016, Lee entered guilty pleas to both bank robberies.
This investigation was conducted by the Davenport Police Department and the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Dallas County Men Sentenced for Jacksonville Bank BurglaryRead the Press Release
TYLER, Texas – Two Dallas men have been sentenced to federal prison for burglarizing a bank in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Curtis Eugene Thomas, 32, pleaded guilty on Sep. 29, 2016 to bank burglary and was sentenced to 42 months in federal prison today by U.S. District Judge Ron Clark.
Dominic Dennard Green, 31, pleaded guilty on Nov. 29, 2016 to bank burglary and was sentenced to 24 months in federal prison today by Judge Clark.
Both men were ordered to pay restitution in the amount of $58,376.75.
According to information presented in court, on Feb. 9, 2016, Thomas, Green and two others broke into the Jacksonville branch of Austin Bank early in the morning before the bank had opened for business. Three of the individuals were dropped off at the bank while the other waited nearby with a getaway car. After disabling the bank’s surveillance cameras and security system, the defendants stole more than $30,000 from the bank’s automated teller machine cash drawers. They then left the bank, returned to the getaway car and left the area. A local patrol unit attempted a traffic stop and a high speed chase ensued. During the chase, all four men bailed out of the vehicle and attempted to flee on foot. One individual was apprehended at the scene and the others were arrested later
This case was investigated by the Federal Bureau of Investigation and the Jacksonville Police Department and prosecuted by Assistant U.S. Attorney Frank Coan.
Colorado Man Pleads Guilty to Federal Meth Trafficking Charges in New MexicoRead the Press Release
ALBUQUERQUE – Saul Cerros, 36, of Northglenn, Colo., pled guilty yesterday in federal court in Las Cruces, N.M., to methamphetamine trafficking charges. The guilty plea was entered under a plea agreement with the U.S. Attorney’s Office.
Cerros was arrested on Sept. 28, 2016, on a four-count indictment charging him with methamphetamine trafficking charges. Count 1 charged Cerros with conspiring to distribute methamphetamine in March 2015. The indictment also charged Cerros with distributing methamphetamine twice on March 27, 2015, and again on March 31, 2015. According to the indictment, Cerros committed the offenses in Dona Ana County, N.M.
During yesterday’s proceedings, Cerros pled guilty to the indictment. In entering the guilty plea, Cerros admitted selling an aggregate of 891.56 grams of pure methamphetamine to undercover law enforcement agents on three separate occasions; twice on March 27, 2015, and a third time on March 31, 2015. Cerros further admitted that he personally smuggled the methamphetamine involved in one of the drug deals into the United States from Mexico.
At sentencing, Cerros faces a statutory mandatory minimum penalty of ten years to a maximum of life in federal prison. Cerros remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of the FBI and the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force and is being prosecuted by Assistant U.S. Attorney Dustin Segovia of the U.S. Attorney’s Las Cruces Branch Office.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department, the Doña Ana County Sheriff’s Office, the FBI, HSI and the New Mexico State Police. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Clearwater Man Pleads Guilty to Drug ChargeRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Travis Lemart Hayes (21, Clearwater) has pleaded guilty to possession with the intent to distribute crack cocaine. He faces a maximum penalty of 20 years in federal prison.
According to the plea agreement, following a traffic stop, police officers found crack cocaine and nearly $1,000 in cash in Hayes’s pockets. Inside the car that Hayes was driving, officers found a loaded .45 caliber pistol.
This case was investigated by the Federal Bureau of Investigation and the New Port Richey Police Department. It is being prosecuted by Assistant United States Attorney Taylor G. Stout.
Charleston woman pleads guilty to federal heroin chargeRead the Press Release
CHARLESTON, W.Va. – A Charleston heroin dealer pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Tara Shepherd, 26, entered her guilty plea to distribution of heroin.
Shepherd admitted that on August 26, 2016, she sold heroin a confidential informant working with Metropolitan Drug Enforcement Network Team. The drug deal took place at her apartment on Washington Avenue in Charleston.
Shepherd faces up to 20 years in federal prison when she is sentenced on June 26, 2017.
The Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Monica D. Coleman is in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Charleston felon pleads guilty to federal gun crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty today to a federal gun crime, announced United States Attorney Carol Casto. Shon Wayne Cobbs, 45, entered his guilty plea to being a felon in possession of a firearm.
On February 3, 2013, Cobbs shot a .40 caliber pistol inside his kitchen three times during an argument with a woman who was standing in the kitchen doorway. The Kanawha County Sheriff’s Department arrested Cobbs at the residence without further incident. While executing a search warrant, deputies located a Beretta .40 caliber pistol, three spent shell casings, and bullet fragments from the kitchen. A spent bullet was also recovered from the adjacent living room. Furthermore, deputies seized an additional 16 firearms from several locations throughout the residence.
Cobbs was prohibited from possessing any firearm under federal law because he was convicted in 2008 of the felony offense of unlawful wounding in Kanawha County Circuit Court after a jury found him guilty of assaulting a woman and breaking her arm by twisting it behind her back.
In August 2013, Cobbs pleaded guilty to wanton endangerment in Kanawha County Circuit Court as a result of the same conduct giving rise to the federal prosecution. He was sentenced to home confinement.
Cobbs faces up to 10 years in federal prison when he is sentenced on July 6, 2017.
The Kanawha County Sheriff’s Department conducted the investigation. Assistant United States Attorney Joshua C. Hanks is in charge of the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Carbon County Man Sentenced to 16 ½ Years in Prison for Producing Child PornographyRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Grant Harris, age 38, formerly of Albrightsville, was sentenced on April 10, 2017, by Senior U.S. District Court Judge James M. Munley to 16 ½ years in prison for producing child pornography.
According to United States Attorney Bruce D. Brandler, Harris previously pleaded guilty to persuading and enticing a minor to engage in sexually explicit conduct for the purpose of producing a visual image of that conduct. Harris committed the crime between 2008 and 2009, when the victim was eight-years-old. Harris was indicted by a federal grand jury in November 2015, shortly after agents and police discovered the child pornography on a computer used by the defendant.
Judge Munley also ordered Harris to serve 15 years on supervised release following his prison sentence. Harris will also be subject to the restrictions and requirements of the Sex Offender Registration and Notification Act.
In imposing a sentence above the 15-year mandatory minimum sentence required by law, Judge Munley characterized Harris’ conduct as “monstrous,” and noted the harm inflicted on the victim and the victim’s family.
The investigation was conducted by the Homeland Security Investigations, the Pennsylvania State Police, and the Pennsylvania Attorney General’s Office. Assistant United States Attorney Francis P. Sempa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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California Men Sentenced for Internet Drug TraffickingRead the Press Release
Orlando, FL – U.S. District Judge Carlos E. Mendoza today sentenced Julian Villa-Gomez Lemus (32, Visalia, CA) and Fadhle Muqbel Saeed (31, Porterville, CA) for conspiracy to distribute a controlled substance. For their respective roles in the conspiracy, Lemus was sentenced to 10 years in federal prison and Saeed was sentenced to 9 years and 6 months’ imprisonment. A third co-defendant, Alfonso Bojorquez-Vazquez (30, Porterville, CA), was sentenced to 7 years and 3 months in federal prison for the same offense on March 27, 2016. As part of Saeed’s sentence, the Court also entered a money judgment in the amount of $1.9 million, the proceeds of the drug conspiracy.
Saeed and Bojorquez-Vazquez previously pleaded guilty. Lemus proceeded to trial and was found guilty by a jury on January 4, 2017.
According to court documents and evidence presented at trial and sentencing, between May 2012 and March 2015, Saeed, Lemus and Bojorquez-Vazquez conspired to distribute drugs over the Internet using illicit online drug marketplaces such as Silk Road and Evolution Marketplace. These marketplaces were websites where individuals could buy and sell drugs anonymously. Payment for Silk Road transactions were conducted using Bitcoin, a semi-anonymous electronic form of payment, which allowed users to purchase drugs without disclosing their financial information or identity. The conspirators used the pseudonym “darkexpresso” to conduct over 1,300 Silk Road drug transactions, resulting in gross proceeds of over $1.9 million. These transactions included methamphetamine, hydrocodone, marijuana, steroids, cocaine, and other controlled substances. The drugs were concealed using various methods, and sent to purchasers throughout the United States and Australia.
After law enforcement officials shut down and seized the Silk Road website, Saeed and Bojorquez-Vazquez continued the operation on the Evolution Marketplace. Undercover DEA agents contacted Saeed and Bojorquez-Vazquez on the website and purchased a total of approximately 96 hydrocodone pills and approximately 473 grams of methamphetamine from them over the course of several online transactions.
This case was investigated by the Drug Enforcement Administration and the United States Postal Inspection Service. It was prosecuted by Assistant United States Attorneys Vincent S. Chiu and Alejandro J. Salicrup.
Calera Man Convicted of Being a Felon in Possession of a FirearmRead the Press Release
BIRMINGHAM -- A federal jury today convicted a Calera man of possessing a firearm after previously being convicted of a felony, announced Acting U.S. Attorney Robert O. Posey and Bureau of Alcohol, Tobacco, Firearms and Explosives Assistant Special Agent in Charge David Hyche.
Following a two-day trial before U.S. District Judge Virginia Emerson Hopkins, the jury convicted VAUGHN ALEXANDER CROPPER, 28, of possessing a pistol after being convicted of a felony. Cropper had elected to represent himself.
According to the evidence at trial, Birmingham police arrested Cropper in the early morning hours of Sept. 25, 2016, in the parking lot of the USA Economy Lodge on Crestwood Boulevard in Irondale. Officers were responding to a complaint of a disturbance involving a man with a gun. The police, who were wearing body cameras, captured video of the defendant reaching into his pocket before officers seized the gun and placed him under arrest. Cropper, who has multiple drug-trafficking felonies, likely will qualify as an armed career criminal and face a minimum sentence of 15 years and a maximum sentence of life in prison.
Cropper is scheduled for sentencing July 25.
The ATF and Birmingham Police Department investigated the case, which Assistant U.S. Attorney Gregory R. Dimler prosecuted.
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Business Owner Pleads Guilty in Money Laundering SchemeRead the Press Release
JOHNSTOWN, Pa. - A resident of Portage, Pa. pleaded guilty in federal court in Johnstown to a charge of conspiring to commit money laundering, Acting United States Attorney Soo C. Song announced today.
Tonia Vaughn, 41, of Portage, Pa., pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
Gary and Tonia Vaughn were the owners and operators of Gary’s Steals and Deals, a business located in Portage, PA, that dealt in new and used merchandise. The way the business operated was for “customers” to come to the store with new stolen items of merchandise (the great majority of which were still in the package from local stores) and present it for purchase by Gary’s. The store clerks, knowing the merchandise was stolen, would then give a percentage of the value for the new stolen items to the “customer.” The great majority of this business involved the same “customers” bringing in dozens of identical, “new in package” stolen items (i.e., razor blades, pet products, teeth whitening strips, ink cartridges, jackets, Lego sets, etc.) on the same day or subsequent days, which were purchased by Gary’s Steals and Deals. The stolen new merchandise was then listed for sale on Ebay or Amazon. Once purchased, the stolen merchandise was then shipped to the purchaser via use of the mail. The money received from the sale of the stolen merchandise over the internet was used to either purchase new stolen items from “customers” coming into the store, or was received by the employees as proceeds of this conduct.
Judge Gibson scheduled sentencing for August 9, 2017, at 1:00 p.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Internal Revenue Service Criminal Investigation, and the Federal Bureau of Investigation, Laurel Highlands Resident Agency, conducted the investigation that led to the prosecution of Seymore.
Brothers Plead Guilty to Illegal Possession of FirearmsRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that TERRELL TATE, age 26, and GEREME TATE, age 25, brothers from New Orleans, pled guilty today to being felons in possession of firearms.
According to the court documents, on July 4, 2016, the TATE brothers, both of whom had been previously convicted of felonies in Orleans Parish Criminal District Court, possessed a Glock Model 19C semiautomatic pistol and a Taurus Model PT111, 9mm pistol.
Each defendant faces a maximum term of imprisonment of ten years, a fine of $250,000, and three years of supervised release following any term of imprisonment. U.S. District Judge Nannette Jolivette Brown set sentencing for July 27, 2017.
A third brother, MICHAEL TATE is scheduled for trial on June 5, 2017.
Acting U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this matter. Assistant United States Attorney Jonathan L. Shih and Trial Attorney Joseph K. Wheatley, of the Department of Justice, Organized Crime and Gang Section, are in charge of the prosecution.
Brattleboro Man Convicted of Possession of Child PornographyRead the Press Release
CONCORD, N.H. - Acting United States Attorney John J. Farley announced today that Jeremiah Pless, 33, of Brattleboro, Vermont, was convicted by a jury after a two-day trial of possessing child pornography. A sentencing hearing is scheduled for July 25, 2017.
The jury was presented with evidence that, in February 2015, the Hinsdale Police Department obtained a search warrant to search a residence at 31 Gateway Drive in Hinsdale, New Hampshire, based on probable cause that the residence was connected to the downloading of child pornography. Chief Todd Faulkner and Commander Tom Grella assembled a team of specially trained officers from the Internet Crimes Against Children Task Force to assist in the search. While at the residence on February 18, 2015, the search team found evidence that Pless possessed child pornography that he had downloaded using the Shareaza file sharing program. A review of the hard drive taken from Pless’ computer later confirmed that the images of child pornography included images of known minor children.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The investigation was led by the Department of Homeland Security, Homeland Security Investigations, and the Hinsdale Police Department. The ICAC Task Force provided invaluable assistance from the Portsmouth Police Department, the Manchester Police Department, the Nashua Police Department, the Hampton Police Department, the New Hampshire State Police and the Vermont Attorney General’s Office.
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Bradford County Man Sentenced to 77 Months’ Imprisonment for Stealing 48 Firearms and Distributing HeroinRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on April 10, 2017, United States District Judge A. Richard Caputo sentenced Aaron L. Vanderpool, age 35, of Wysox, Pennsylvania, to 77 months’ imprisonment, for stealing 48 firearms and for distributing heroin.
According to United States Attorney Bruce D. Brandler, Vanderpool pleaded guilty to burglarizing Fulmer’s Sporting Goods, a federally licensed firearms dealer in Wysox, Pennsylvania, on or about May 24, 2015. Vanderpool admitted to stealing 48 firearms and to conspiring to transport 47 of them to New York, where they were sold and traded for heroin. Only three of the 48 firearms have been recovered by law enforcement. Vanderpool also admitted to distributing heroin on May 8, 2015.
Judge Caputo also ordered Vanderpool to pay $27,383.75 to the victims of his crimes.
Two other individuals have been charged in relation to the Fulmer’s Sporting Goods burglary. Jared Miller was charged in August 2016 and has entered a plea agreement to firearms and heroin trafficking offenses. Luis Mercado was charged in April 2017 and also has entered a plea agreement to firearms and heroin trafficking offenses.
The matter was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives, and by the Pennsylvania State Police. The case was prosecuted by Assistant United States Attorney Phillip J. Caraballo.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Berkeley County man guilty of firearm chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Martinsburg man was convicted today on a firearm violation, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Michael Eugene Decker, age 37, of Martinsburg, West Virginia, pled guilty to one count of “Possession and Sale of a Stolen Firearm.” The crime occurred on December 1, 2016 in Berkeley County.
Decker faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara K. Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Bay Point Resident Sentenced to More Than Nine Years in Prison for Methamphetamine TraffickingRead the Press Release
OAKLAND – Joseph Edward Conner was sentenced to 112 months in prison for possession with intent to distribute methamphetamine, announced United States Attorney Brian J. Stretch, U.S. Drug Enforcement Administration (DEA) Special Agent in Charge John J. Martin, Internal Revenue Service (IRS), Criminal Investigation, Special Agent in Charge Michael Batdorf, U.S. Postal Inspection Service, Inspector in Charge Rafael E. Nuñez, U.S. Customs and Border Protection Director of Field Operations Brian J. Humphrey, and Special Agent in Charge for U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Ryan L. Spradlin. The sentence was handed down yesterday by the Hon. Haywood S. Gilliam, U.S. District Judge, following a guilty plea entered August 22, 2016, in which Conner admitted he intended to possess and distribute the drugs.
According to his plea agreement, Conner, 47, of Bay Point, Calif., acknowledged that he negotiated the sale of methamphetamine on three separate occasions. On August 22, 2014, Conner negotiated the sale of a half-pound of 99% pure methamphetamine for $3,000. Conner sold the drugs to an undercover DEA Task Force Officer in the parking lot of the Sun Valley Mall in Concord, Calif. Later, Conner used text messages to arrange another meeting with the undercover officer that would take place on November 6, 2014, at the same parking lot. Upon meeting with the undercover officer, Conner handed the officer a pound of 99.5% pure methamphetamine in exchange for $5,400. The third transaction occurred on December 16, 2014, for three pounds of 97.5% pure methamphetamine. On this occasion, Conner sought to sell the drugs for $14,400, but was arrested prior to completing the sale.
Conner was indicted by a federal grand jury on June 2, 2015. He was charged with three counts of possession of methamphetamine with intent to distribute, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(C). Under the plea agreement, Conner pleaded guilty to all three counts alleged in the indictment.
In addition to the prison term, Judge Gilliam sentenced Conner to a 3-year period of supervised release. Following his arrest on December 16, 2014, Conner was released on a $150,000 secured bond. Judge Gilliam ordered the defendant to surrender on or before June 9, 2017, to begin serving his sentence.
Assistant U.S. Attorneys Claudia A. Quiroz, Andrew Dawson, and David Countryman are prosecuting the case with the assistance of Lance Libatique and Carolyn Jusay. The prosecution is the result of an investigation by the DEA, assisted by IRS Criminal Investigations, U.S. Postal Inspection Service, U.S. Customs and Border Protection, Homeland Security Investigations, Contra Costa County Sheriff’s Office, South San Francisco Police Department, Oakland Police Department, Oakland School Police Department, Walnut Creek Police Department, and San Ramon Police Department.
Bay Area Doctor Sentenced to More Than Three Years in Prison for Tax EvasionRead the Press Release
SAN FRANCISCO – Dr. John Compagno was sentenced today to 37 months in prison and was ordered to pay restitution in the amount of $5,426,239 announced United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf.
Compagno, 70, of Napa, Calif., pleaded guilty on December 14, 2016, to income tax evasion. According to his plea agreement, Compagno is a medical physician specializing in pathology. He is also the owner and operator of three corporations located in Hercules, Calif., including John Compagno, M.D., Inc., West Coast Pathology Laboratory, Inc., and Histopathology Reference Laboratory, Inc.
“As Dr. Compagno learned, no amount of success will insulate you from your civic responsibility to accurately report and pay your taxes,” said U.S. Attorney Stretch. “The three-year prison term handed down by Judge Alsup is a fitting sentence for an individual who cheated the government out of millions of dollars of tax payments.”
“In today’s economic environment, it is more important than ever that the American people feel that everyone is playing by the rules and paying their fair share,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “Dr. Compagno overstated expenses and omitted dividends to avoid paying taxes to the IRS. The prosecution of individuals who intentionally evade taxes is vital in maintaining public confidence in our tax system.”
In his plea agreement, Compagno admitted he submitted both corporate and individual tax returns that understated his liability to the IRS. For the tax years 2005 through 2011, Compagno caused a corporate tax return preparer to overstate the amount of expenses on the corporate tax return by including $10,679,080 in non-deductible expenses. Because the amounts of non-deductible expenses were overstated, the amount of income taxes due were understated. This resulted in additional tax due of $3,859,060. In addition, Compagno omitted $10,505,091 in constructive dividends from his 2006 through 2011 individual income tax returns. This resulted in additional tax due of $1,567,179. In sum, Compagno acknowledged in his plea agreement he owed more than $5.4 million in unpaid taxes.
Compagno was charged in an information filed November 16, 2016, with one count of tax evasion, in violation of 26 U.S.C. § 7201. He pleaded guilty to the charge and acknowledged that he knowingly and willfully filed with the IRS a false 2010 corporate tax return.
The sentence was handed down by the Honorable William Alsup, U.S. District Judge. In addition to the prison term and restitution, Judge Alsup ordered defendant to pay a fine of $75,000 and to serve three years of supervised release. Judge Alsup also ordered the defendant to surrender on or before June 2, 2017, to begin serving his sentence.
Assistant U.S. Attorney Thomas Moore is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Austin Attorney and Business Partner Plead Guilty to Multi-Million Dollar Investment FraudRead the Press Release
Austin residents Robert Allen Helms and Janniece S. Kaelin pleaded guilty today to federal charges of defrauding investors in companies that presumably were in the business of purchasing oil and gas royalties, announced United States Attorney Richard L. Durbin, Jr.; Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division; United States Secret Service Special Agent in Charge Douglas W. Thigpen, Houston Field Office; and, Texas State Securities Board Commissioner John Morgan.
Appearing before United States Magistrate Judge Mark Lane this morning, Helms, age 52, and Kaelin, age 54, pleaded guilty to one count of securities fraud and one count of conspiracy to commit securities fraud and mail fraud. In pleading guilty, the defendants admitted to defrauding investors between January 2010 and December 2013. The indictment filed in this case alleges that Helms and Kaelin raised millions of dollars from investors through the fraudulent scheme.
Helms, who has been licensed to practice law in Texas since 1995, and Kaelin told investors that they would use the invested funds only for specific business purposes, but the defendants secretly used substantial sums for their own personal expenses. Helms and Kaelin also paid money to investors, ostensibly as the investors’ share of operating income, when Helms and Kaelin knew the money came from other investors rather than from business operations. The scheme included forging and counterfeiting documents to create the appearance of mineral and royalty purchases. It also involved moving money between accounts and business entities for no purpose other than creating the false appearance of business operations.
The scheme ended in December 2013, when the United States Securities and Exchange Commission (SEC) sued Helms, Kaelin, and their companies. United States District Judge Lee Yeakel appointed a receiver to take control of the companies, including Vendetta Royalty Partners, Ltd. and Iron Rock Royalty Partners, LP. According to a report filed by the receiver, Helms and Kaelin raised more than $30 million from investors as part of the scheme.
Helms and Kaelin, both of whom remain on bond pending sentencing, face up to five years in federal prison for each count of conviction and a yet-to-be-determined-amount of restitution to their victims. Sentencing is scheduled for June 28, 2017.
The FBI, the United States Secret Service and the Texas State Securities Board conducted this investigation. Assistant United States Attorneys Alan M. Buie and Grant Sparks are prosecuting this case on behalf of the Government. The United States Attorney’s Office for the Western District of Texas appreciates the cooperation and assistance of the SEC’s Fort Worth Regional Office.
Attorney General Jeff Sessions Announces the Department of Justice’s Renewed Commitment to Criminal Immigration EnforcementRead the Press Release
Attorney General Jeff Sessions today spoke to Customs and Border Protection personnel at the United States-Mexico border in Nogales, Arizona.
In his remarks, the Attorney General announced that he has issued the attached memo to United States Attorneys that mandates the prioritization of criminal immigration enforcement. The memo directs federal prosecutors to focus on particular offenses that, if aggressively charged and prosecuted, can help prevent and deter illegal immigration.
Additionally, the Attorney General revealed that the Department of Justice will add 50 more immigration judges to the bench this year and 75 next year. He also highlighted the Department's plan to streamline its hiring of judges, reflecting the dire need to reduce the backlogs in our immigration courts.
Please find below the full remarks from Attorney General Sessions.
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Remarks Prepared for Attorney General Jeff Sessions
Meeting with Customs and Border Protection Personnel and Immigration Policy Announcement
NOGALES, ARIZONA
Good morning, everyone. Let me start by thanking the brave men and women of Customs and Border Protection, who not only served as our gracious hosts today, but who put themselves in harm’s way each day to secure our borders and protect us.
Here, along our nation’s southwest border, is ground zero in this fight. Here, under the Arizona sun, ranchers work the land to make an honest living, and law-abiding citizens seek to provide for their families.
But it is also here, along this border, that transnational gangs like MS-13 and international cartels flood our country with drugs and leave death and violence in their wake. And it is here that criminal aliens and the coyotes and the document-forgers seek to overthrow our system of lawful immigration.
Let’s stop here for a minute. When we talk about MS-13 and the cartels, what do we mean? We mean criminal organizations that turn cities and suburbs into warzones, that rape and kill innocent citizens and who profit by smuggling poison and other human beings across our borders. Depravity and violence are their calling cards, including brutal machete attacks and beheadings.
It is here, on this sliver of land, where we first take our stand against this filth.
In this fight, I am here to tell you, the brave men and women of Customs and Border Protection: we hear you and we have your back. Under the President’s leadership and through his Executive Orders, we will secure this border and bring the full weight of both the immigration courts and federal criminal enforcement to combat this attack on our national security and sovereignty.
The President has made this a priority — and already we are seeing the results. From January to February of this year, illegal crossings dropped by 40 percent, which was unprecedented. Then, last month, we saw a 72 percent drop compared to the month before the President was inaugurated. That’s the lowest monthly figure for at least 17 years.
This is no accident. This is what happens when you have a President who understands the threat, who is not afraid to publically identify the threat and stand up to it, and who makes clear to law enforcement that the leadership of their country finally has their back. Together, we will drastically reduce the danger posed by criminal aliens, gang members and cartel henchmen.
To that end, the President and I want to do our best to arm you, and the prosecutors who partner with you, with more tools in your fight against criminal aliens. So today, I am pleased to stand here with you and announce new guidance regarding our commitment to criminal immigration enforcement. As we speak, I am issuing a document to all federal prosecutors that mandates the prioritization of such enforcement.
Starting today, federal prosecutors are now required to consider for prosecution all of the following offenses:
- The transportation or harboring of aliens. As you know too well, this is a booming business down here. No more. We are going to shut down and jail those who have been profiting off this lawlessness — people smuggling gang members across the border, helping convicted criminals re-enter this country and preying on those who don’t know how dangerous the journey can be.
- Further, where an alien has unlawfully entered the country, which is a misdemeanor, that alien will now be charged with a felony if they unlawfully enter or attempt enter a second time and certain aggravating circumstances are present.
- Also, aliens that illegally re-enter the country after prior removal will be referred for felony prosecution — and a priority will be given to such offenses, especially where indicators of gang affiliation, a risk to public safety or criminal history are present.
- Fourth: where possible, prosecutors are directed to charge criminal aliens with document fraud and aggravated identity theft — the latter carrying a two-year mandatory minimum sentence.
- Finally, and perhaps most importantly: I have directed that all 94 U.S. Attorneys Offices make the prosecution of assault on a federal law enforcement officer — that’s all of you — a top priority. If someone dares to assault one of our folks in the line of duty, they will do federal time for it.
To ensure that these priorities are implemented, starting today, each U.S. Attorney’s Office, whether on the border or interior, will designate an Assistant United States Attorney as the Border Security Coordinator for their District. It will be this experienced prosecutor’s job to coordinate the criminal immigration enforcement response for their respective offices.
For those that continue to seek improper and illegal entry into this country, be forewarned: This is a new era. This is the Trump era. The lawlessness, the abdication of the duty to enforce our immigration laws and the catch and release practices of old are over.
In that vein, I am also pleased to announce a series of reforms regarding immigration judges to reduce the significant backlogs in our immigration courts.
Pursuant to the President’s executive order, we will now be detaining all adults who are apprehended at the border. To support this mission, we have already surged 25 immigration judges to detention centers along the border. I want to thank personally the judges who answered the call to help us with this new initiative.
In addition, we will put 50 more immigration judges on the bench this year and 75 next year. We can no longer afford to wait 18 to 24 months to get these new judges on the bench. So today, I have implemented a new, streamlined hiring plan. It requires just as much vetting as before, but reduces the timeline, reflecting the dire need to reduce the backlogs in our immigration courts.
With the President’s Executive Orders on Border Security, Transnational Criminal Organizations and Public Safety as our guideposts, we will execute a strategy that once again secures the border; apprehends and prosecutes those criminal aliens that threaten our public safety; takes the fight to gangs like MS-13 and Los Zetas; and makes dismantlement and destruction of the cartels a top priority. We will deploy a multifaceted approach in these efforts: we are going to interdict your drugs on the way in, your money on the way out and investigate and prosecute your trafficking networks to the fullest extent of the law.
Why are we doing this? Because it is what the duly enacted laws of the United States require. I took an oath to protect this country from all enemies, foreign and domestic. How else can we look the parents and loved ones of Kate Steinle, Grant Ronnebeck and so many others in eye and say we are doing everything possible to prevent such tragedies from ever occurring again?
Let me finish where I started, by thanking you — the brave men and women in uniform who are at the front lines of this fight. I know we ask a tremendous amount from all of you, but know this: we have your back, and will do all we can to empower you and support you in your work.
God bless you and thank you.
Memo on Renewed Commitment to Criminal Immigration EnforcementAlexandria Man Pleads Guilty to $2.3 Million Investment Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – An Alexandria man who ran multiple scams that defrauded numerous investors of over $2.3 million, pleaded guilty today to conspiracy to commit wire fraud.
According to the statement of facts filed with the plea agreement, Gregg Seitz, 49, recruited investors to invest in purported real estate opportunities. Investors were told that Seitz and others were involved in purchasing, renovating and reselling distressed real estate for pennies on the dollar, and that the investors’ money would be used to help purchase and “flip” the real estate. Seitz claimed to have experience with large real estate deals and to be earning large returns on his own money from these investments. Later, Seitz found additional investors, who asked to loan money to finance a purported software company, which investors were falsely told had a lucrative contract with U.S. Department of Homeland Security. In fact, there were no real estate deals and there was no lucrative contract with the Department of Homeland Security. Rather, Seitz used new investor money to pay back old investors and finance his own lifestyle. For example, Seitz spent some of the money on luxury cars, mortgage payments on a townhouse in Alexandria, a wine business, travel to Mexico, Italy and the Caribbean, and purchases from high-end retailers. The total loss to investors was over $2.3 million.
Seitz faces a maximum penalty of 20 years in prison when sentenced on July 7. 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; and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Gerald Bruce Lee accepted the plea. Assistant U.S. Attorney Katherine L. Wong is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-98.
Albuquerque Man Sentenced to Prison for Robbing Two Fast-Food Restaurants and Brandishing a Firearm During the RobberiesRead the Press Release
ALBUQUERQUE – Sheldon Harris, 28, of Albuquerque, N.M., was sentenced today in federal court to 114 months in prison for violating the Hobbs Act by robbing two Albuquerque-area fast food restaurants and brandishing a firearm during the robberies. Harris will be on supervised release for two years following his prison sentence. Harris was also ordered to pay restitution to the fast food restaurants.
Harris was arrested on April 20, 2016, on a ten-count indictment charging him with: robbing Albuquerque-area Subway restaurants on Aug. 22, 2015, Sept. 6, 2015, Sept. 8, 2016, Sept. 26, 2015, and Oct. 5, 2015; robbing Albuquerque-area Blake’s Lotaburger restaurants on Oct. 1, 2015, Oct. 5, 2015, Oct. 11, 2015, and Oct. 18, 2015; and brandishing a firearm during a crime of violence from Aug. 22, 2015 through Oct. 18, 2015. According to the indictment, Harris committed the crimes in Bernalillo County, N.M.
On Sept. 12, 2016, Harris pled guilty to Counts 8 and 9 of the indictment, each charging him with violating the Hobbs Act by robbing a business engaged in interstate commerce. He also pled guilty to Count 10, charging him with brandishing a firearm during a crime of violence. In entering the guilty plea, Harris admitted that on Oct. 11, 2015 and Oct. 18, 2015, he robbed Blake’s Lotaburger restaurants at gunpoint. Harris further admitted that when he robbed the Blake’s Lotaburger restaurants and several other restaurants in the Albuquerque-area, he used a firearm.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney Samuel A. Hurtado prosecuted this case under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Albuquerque Man Pleads Guilty to Federal Heroin Trafficking ChargesRead the Press Release
ALBUQUERQUE – Joshua Greene, 19, of Albuquerque, N.M., pled guilty today in federal court to heroin trafficking charges. Greene’s plea agreement includes a recommendation that Greene be sentenced within the range of 60 to 87 months in federal prison followed by a term of supervised release to be determined by the court. The plea agreement also requires Greene to forfeit $28,135 in cash, a handgun and a gold necklace set with 1,728 natural diamonds valued at $11,555, and to pay a money judgment in the amount of $28,250.
Greene and co-defendant Kayleb Reyos, 22, were arrested in May 2016, as the result of a DEA investigation into heroin and methamphetamine trafficking in northwest Albuquerque. The complaint alleges that Greene and Reyos sold an aggregate of 36 ounces (2.25 pounds) of heroin and 3 ounces (.18 pounds) of methamphetamine to undercover law enforcement agents during a series of transactions occurring between Feb. 2016 and May 2016. The two men were arrested when the DEA executed a federal search warrant at their residence in northwest Albuquerque. During the search, the DEA seized an additional pound of heroin, bulk amounts of cash, a handgun, and drug paraphernalia.
Greene and Reyos were subsequently charged in a ten-count indictment filed on June 14, 2016. The indictment charged Greene and Reyos with conspiracy to distribute heroin from Feb. 2016 to May 2016. It also charged the two defendants with distributing heroin on Feb. 25, 2016, April 12, 2016, and May 4, 2016, and distributing methamphetamine on March 23, 2016. Greene separately was charged with distributing heroin on Feb. 4, 2016, March 9, 2016, and March 22, 2016, and possessing heroin with intent to distribute on May 17, 2016. Reyos separately was also charged with possessing heroin with intent to distribute on May 17, 2016.
During today’s proceedings, Greene pled guilty to a felony information charging him with conspiracy and distribution of heroin. In entering the guilty plea, Green admitted that from Feb. 4, 2016 through May 17, 2016 he directed a small-scale drug trafficking organization in the northwest Albuquerque. Greene further admitted that on March 22, 2016, he sold approximately 135.1 grams of heroin to an undercover law enforcement agent. Greene remains in custody pending a sentencing hearing, which has yet to be scheduled.
Reyos has entered a plea of not guilty to the charges against him in the indictment. Charges in criminal complaints and indictments are merely accusations, and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the DEA. Assistant U.S. Attorneys Kristopher Houghton and Alexander Uballez are prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, Bernalillo County Commissioner Maggie Hart Stebbins, Albuquerque City Councilor Diane Gibson, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Alabama Man Indicted on Federal Charges of Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces today the return of an indictment charging Christopher Jaye Boykin (34, Lisman) with four counts of receiving child pornography over the Internet. If convicted, he faces a mandatory minimum penalty of 5 years, up to 20 years, in federal prison on each of count. Boykin was arrested on March 14, 2017, at his home in Alabama. His trial is 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 U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Jacksonville Sheriff’s Office, and the Jacksonville Beach Police Department. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Acting U.S. Attorney Settles Civil Rights Suit Against New York City for Violating the Americans with Disabilities ActRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that the United States has settled a federal civil rights lawsuit alleging that the CITY OF NEW YORK (the “City”), and specifically the NEW YORK CITY POLICE DEPARTMENT (“NYPD”), violated the Americans with Disabilities Act of 1990 (“ADA”) through its medical disqualification of an HIV positive applicant for a Police Communications Technician position. The settlement agreement was entered today by U.S. District Judge Ronnie Abrams.
Acting U.S. Attorney Joon H. Kim said: “The ADA prohibits employers from denying job applicants employment opportunities on the basis of a disability or perceived disability. As a result of this lawsuit, the City of New York has acknowledged that HIV status is not a basis to deny an individual employment. We will continue to work to ensure that employers do not discriminate against job applicants with disabilities.”
According to the Complaint, filed in federal court in Manhattan on January 17, 2017, the applicant – who is HIV positive – applied for the position of Police Communications Technician. The applicant successfully underwent an initial screening process, which included a background check, and received a conditional offer of employment. Following receipt of the conditional offer of employment, the applicant was required to undergo a medical examination. Shortly after completion of the medical examination, the NYPD informed the applicant that he needed to submit additional paperwork, including a blood test. After the applicant submitted the requested paperwork, the NYPD disqualified him solely because of his “HIV low CD4 count.”
The NYPD’s failure to hire the applicant because of his HIV status was in clear violation of the ADA. ADA prohibits employers from discriminating against qualified individuals solely on the basis of a disability, such as being HIV positive, in the hiring process.
As part of the settlement, the City extended the applicant a conditional offer of employment, is paying the applicant $85,000, and acknowledges that its disqualification of the applicant based on his HIV low CD4 count was in error.
More information on the obligations of employers with respect to job applicants with disabilities is available at www.ada.gov and www.eeoc.gov.
Mr. Kim thanked the Equal Employment Opportunity Commission for its initial investigation of the Complaint.
The case is being handled by the Office’s Civil Rights Unit. Assistant United States Attorney Natasha Waglow Teleanu is in charge of the case.
5 Eastern European Immigrants Plead Guilty to Credit Card Fraud and Identity Theft Charges Related to Cyberattacks on 3 U.S. CompaniesRead the Press Release
LOS ANGELES – The fifth and final defendant charged with using credit and debit cards obtained from a series of cyberattacks on U.S. companies that resulted in an estimated $5 million in losses – and caused one victim company to go out of business – has pleaded guilty to federal fraud charges.
Irina Fedoseeva, 33, a Russian national who resides in the Koreatown District of Los Angeles, pleaded guilty yesterday afternoon to conspiracy to use unauthorized credit and debit cards and admitted causing more than $225,000 in losses.
In a plea agreement filed in United States District Court, Fedoseeva admitted to helping make fraudulent purchases with debit cards obtained as a result of cyberattacks on two healthcare administrators in December 2015 and February 2016.
After helping a co-defendant make unauthorized purchases from retail stores that included Apple and Best Buy, Fedoseeva resold the merchandise on the internet.
Four other defendants previously pleaded guilty to federal fraud charges for their roles in the computer attacks.
Timur Safin, 29, of Burbank; Dmitry Fedoseev, 34, of Koreatown; and Kristina Gerasimova, 22, of the Miracle Mile District of Los Angeles, all of whom are Russian nationals, each pleaded guilty on March 20 to aggravated identity theft and debit/credit card fraud.
The fifth defendant charged as a result of this investigation – Siarhei Patapau, 26, of the Miracle Mile District of Los Angeles, a native of Belarus – pleaded guilty on March 6 to similar felony charges.
All five defendants pleaded guilty before United States District Judge Stephen V. Wilson, who is scheduled to sentence the defendants during hearings scheduled in June and September.
According to court documents filed in two separate cases, the five defendants conspired with computer hackers, some of whom are believed to be in Russia. The hackers staged attacks that included:
- a July 2014 intrusion into an airline’s computer system in which the hackers funded pre-paid credit cards in the amount of $900,000;
- a December 2015 hack into the system of a healthcare administrator that allowed the cybercriminals to reactivate a dormant dependent care account and order the production of numerous debit cards that were used to make approximately $550,000 in fraudulent purchases; and
- a February 2016 attack on another healthcare administrator that allowed the intruders to order the production of debit cards linked to reactivated accounts that were used to make approximately $3.5 million in fraudulent purchases.
The computer hackers directed the pilfered debit and credit cards to be sent to the five defendants charged in Los Angeles and other co-conspirators. Members of the conspiracy then used the unauthorized cards to make cash withdrawals, purchase money orders and make purchases at retail outlets such as Apple, Best Buy, Home Depot and Target.
For example, Safin admitted in court that he used a number of the pre-paid credit cards to withdraw approximately $5,074 at ATMs throughout Los Angeles County and to purchase money orders totaling $19,420. He used debit cards obtained from the healthcare administrators to make at least $225,000 in fraudulent purchases.
When they were arrested last year, Fedoseev was in the possession of more than 519 unauthorized credit, debit and gift cards, and Patapau was found with approximately 525 credit and debit cards in other people’s names.
As a result of their guilty pleas, Patapau, Safin and Fedoseev each face a statutory maximum sentence of 12 years in federal prison when they are sentenced by Judge Wilson. Gerasimova faces a statutory maximum sentence of seven years, and Fedoseeva faces a statutory maximum sentence of five years.
The investigation that led to the two cases filed in Los Angeles was conducted by the Federal Bureau of Investigation.
The two criminal cases are being prosecuted by Assistant United States Attorneys Bryant Yang and Eric Tung of the General Crimes Section.
26 Individuals Indicted for Smuggling Cocaine Through the Luis Muñoz Marín International AirportRead the Press Release
SAN JUAN, Puerto Rico – On April 10, 2017, a federal grand jury in the District of Puerto Rico returned an indictment against twenty-six defendants charged with conspiracy to possess with intent to distribute cocaine, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
The indictment alleges that beginning on a date unknown, and continuing up to and until the return of the indictment, the defendants smuggled multi-kilogram quantities of cocaine through the Luis Muñoz Marín International Airport (LMMIA) to the Continental United States. The smuggled cocaine was destined to major cities in the Eastern coast. The defendants charged in the indictment had several different roles.
The lead defendant [1] Humberto Concepción-Andrades was identified as the leader and supplier of a Drug Trafficking Organization (DTO) that smuggled multi-kilogram quantities of cocaine through the LMMIA in Carolina, Puerto Rico. The facilitators were identified as: [2] Jose Colón-Guzmán, [3] Miguel García-Blasco (an employee for JetBlue Airlines at LMMIA and currently a Southwest Airlines employee at the Orlando International Airport), [4] Tito Diaz-Serrano (an employee for Antilles Services, an airport services company at LMMIA), [5] Tomás Domínguez-Rohena (an employee of American Airlines at LMMIA and Miami International Airport), [6] Alexander Gazmey-Santiago (an employee of the International Meal Company who worked at the Air Margaritaville restaurant in LMMIA); and [10] Danel González-González, who smuggled multi-kilogram quantities of cocaine through DHL and through employees of Perfect Cleaning Services Inc., a company that provides cleaning service at LMMIA.
Defendants in the indictment include employees of Air Margaritaville (a restaurant located beyond the TSA security check point at LMMIA): [7] Harold Oliveras-Landrau, [8] Rodney Pérez-Ortega, [11] Michael Danet-Delgado, [12] Jose Paris-Romero, [13] Jean Ocasio-Castro, [14] Orbi Villar-Enriquez, [15] Héctor Ortiz-Brignoni, [16] Edwin Rosario-Rosario and [17] Rafael Coriano-Sierra.
Additional defendants included current and former employees of American Airlines at LMMIA cargo department: [18] Luis Diaz-Colón, [19] Miguel Ruiz-Delgado, [20] Daniel Vélez-Sanjurjo, [21] Marcos González-Figueroa and [22] Brian Otero.
Defendant [24] Aimee Monegro-Polanco is the wife of defendant [1] Humberto Concepción-Andrades. Along with [1] Humberto Concepción-Andrades, [24] Aimee Monegro-Polanco funneled narcotic proceeds through bank accounts of corporations they created to conceal the nature, source, location, ownership, or control of the narcotic proceeds.
Defendants were used as mules to carry the narcotics through LMMIA to its final destination in the Continental United States: [9] Ángel Almodovar-García, [25] Carl Frank Zubillaga and [26] David Figueroa-Colón.
[9] Ángel Almodovar-García also smuggled multi-kilogram quantities of cocaine through LMMIA with the help of UPS driver [23] Felix Rosado-Colón.
The indictment sets forth various methods used by the co-conspirators to smuggle the drugs:
Bathroom Smuggling Method at LMMIA
Defendant [1] Concepción-Andrades, leader drug supplier, provided multi-kilogram quantities of cocaine to a facilitator who supplied the cocaine to defendant [3] García-Blasco. [3] García-Blasco. [3] García-Blasco would then smuggle the kilograms of cocaine past security at LMMIA into the secured area of LMMIA. Defendants [9] Almodovar-García, [25] Zubillaga and [26] Figueroa-Colón worked as mules for the DTO. The mules would arrive at LMMIA, pass through a TSA security checkpoint and contacted [3] García-Blasco or another facilitator. The facilitators indicated the specific bathroom where the mule would meet [3] García-Blasco and receive the kilograms of cocaine. Once the mules had obtained the kilograms they placed them into their carry-on luggage and boarded flights to the Continental United States.
American Airlines Smuggling Method
Defendant [1] Concepción-Andrades, leader drug supplier, provided multi-kilogram quantities of cocaine to a facilitator who supplied the cocaine to defendant [3] García-Blasco. [3] García-Blasco, then provided the cocaine to another facilitator, [4] Díaz-Serrano. [4] Díaz-Serrano then contacted American Airlines employees, who were previously indicted in 2015, who worked for the drug trafficking organization (DTO).
The mules would enter the airport and hand their checked luggage containing multi-kilogram quantities of cocaine to member(s) of the DTO who were working at the American Airlines counter. The American Airlines DTO member(s) would place a sticker onto the checked luggage indicating that it had been cleared by TSA, when in fact the luggage had not been cleared by TSA. The American Airlines employees would then place the checked luggage with other luggage, which had been previously cleared by TSA, and would load them onto commercial airlines headed to the Continental United States.
Air Margaritaville Restaurant Smuggling Method
Defendant [1] Concepción-Andrades, leader drug supplier, provided multi-kilogram quantities of cocaine to a facilitator who supplied the cocaine to defendant [6] Gazmey-Santiago, who would contact members of the DTO employed at the Air Margaritaville restaurant inside LMMIA.
Defendant [12] Paris-Romero, among others, received the cocaine and would place it into the Black Coffee garbage chute at LMMIA, thereby moving the cocaine past the security checkpoint and into the secure area of the airport. Once the cocaine was removed from the trash chute, defendants [8] Pérez-Ortega and [13] Ocasio-Castro would remove the cocaine and store it inside lockers in the Air Margaritaville employee locker room.
Defendants [15] Ortiz-Brignoni, [17] Coriano-Sierra, and other members of the DTO, would move the cocaine from the lockers into the dishwashing area of the Air Margaritaville restaurant. Defendants [16] Rosario-Rosario, [12] Paris-Romero were waiters at the restaurant. They delivered the cocaine inside five pound bags of Gustos Coffee Company coffee bags to defendants [9] Almodovar-García, [25] Zubillaga and [26] Figueroa-Colón. After receiving the coffee bags with the cocaine, the mules boarded flights to the Continental United States. Each Gustos Coffee Company coffee bag contained approximately three to four kilograms of cocaine.
Perfect Cleaning Services Inc. Smuggling Method
Defendant [1] Concepción-Andrades supplied multi-kilogram quantities of cocaine to a DTO facilitator who provided the cocaine to defendant [10] González-González. Gonzalez-Gonzalez ultimately supplied the cocaine to an employee(s) of Perfect Cleaning Services Inc., one of these employees was previously indicted in 2015. The mule(s) would arrive at LMMIA, go through a TSA security checkpoint and contact an employee of Perfect Cleaning Services Inc. The Perfect Cleaning Services Inc. employee would then meet the mule inside a bathroom at LMMIA. The Perfect Cleaning Services Inc. employee would then slide a backpack or piece of luggage containing multi-kilogram quantities of cocaine to the mule under the center divider of the stalls. The mule would then board a flight to the Continental United States.
American Airlines Cargo Smuggling Method
According to the Indictment, defendant [4] Diaz-Serrano facilitated a smuggling venture utilizing American Airlines cargo employees. The employees who participated in this smuggling method were: [18] Díaz-Colón, [19] Ruiz-Delgado, [20] Vélez-Sanjurjo, [21] González-Figueroa, and [22] Brian Otero. As American Airlines employees, they could ship goods free of charge on American Airlines flights. They would obtain multi-kilogram shipments of cocaine in boxed goods, and use American Airlines employee IDs at the American Airlines cargo counter at the airport. The employee would then fill out the proper cargo paperwork and take the shipment through security inspection. DTO members would then clear the shipment and place it on a flight to the Continental United States.
DHL Smuggling Method
Defendant [1] Concepción-Andrades supplied multi-kilogram quantities of cocaine to a DTO facilitator who provided the cocaine to defendant [10] González-González, who smuggled the multi-kilogram quantities of cocaine onto cargo planes headed to the Continental United States.
“These individuals developed numerous smuggling lines to transport cocaine through the LMMIA in Puerto Rico to the Continental United States. Today we have brought their operations to a grinding halt,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “The members of our AirTAT initiative will continue to work together to ensure that our airports are not used to smuggle contraband into the United States mainland.”
Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI) is in charge of the investigation with the collaboration of the Federal Bureau of Investigation (FBI), Drug Enforcement Agency (DEA), the U.S. Marshals and the Police of Puerto Rico.
Assistant U.S. Attorney Stuart J. Zander is in charge of the prosecution of the case, under the supervision of Assistant U.S. Attorney Julia Díaz-Rex, Deputy Chief of the International Narcotics Unit. If convicted the defendants face a minimum sentence of 10 years up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
This case is part of the ongoing efforts of the Airport Investigations and Tactical Team (AirTAT). Originating in January 2015, AirTAT is a multi-agency initiative created to identify, locate, disrupt, dismantle, and prosecute Domestic and Transnational Criminal Organizations (DTCOs) and its operatives using the LMMIA, the Fernando Luis Rivas Dominicci Airport (the Isla Grande airport), and peripheral airports as platforms to smuggle narcotics, weapons, human cargo, counterfeit documents and illicit proceeds. These airports play a strategic role for DTCOs to conduct contraband smuggling activities inbound and outbound to the continental United States as well as international destinations.
10 Convictions from Operation Riptide in Six Weeks Since ArrestsRead the Press Release
NORFOLK, Va. – On March 1 over 150 law enforcement agents and officers executed a major takedown, arresting dozens of individuals for their respective roles in selling drugs and guns in Norfolk. Today, two more federal defendants pleaded guilty to firearm and drug charges, bringing the total convictions to 10 in the six weeks since the takedown.
The Bureau of Alcohol, Tobacco, and Firearms (ATF) began Operation Riptide in the Fall of 2016, and in collaboration with the Norfolk Police Department, Virginia State Police, and prosecutors from this office and the Virginia Attorney General’s Office, identified more than 30 individuals throughout Hampton Roads who were illegally selling firearms, heroin, and/or other narcotics. Operation Riptide resulted in the recovery of over 50 firearms (including at least 3 assault rifles, 2 sawed off shotguns, and 47 hand guns, 18 of which had obliterated serial numbers or were stolen), over 170 grams of heroin, 65 grams of powder cocaine, 290 grams of crack cocaine, and a bullet proof vest.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; and Larry Boone, Chief of Norfolk Police, made the announcement after U.S. District Judge Raymond A. Jackson and U.S. Magistrate Judge Lawrence Leonard accepted the pleas for the ninth and tenth federal defendants.
The case is being prosecuted by Assistant U.S. Attorneys Andrew C. Bosse, Kevin M. Comstock, Joseph E. DePadilla, Kevin Hudson, William B. Jackson, William D. Muhr, and Daniel T. Young, along with Special Assistant U.S. Attorney John F. Butler, James F. Entas, of the Virginia Attorney General’s Major Crimes and Emerging Threats Unit, and Norfolk Assistant Commonwealth Attorney Catherine Paxson.
The ATF’s Norfolk Field Office, the Norfolk Police Department, and the Virginia State Police investigated this case with assistance from the Virginia Beach and Chesapeake Police Departments, and the Norfolk and Chesapeake Sheriff’s Offices.
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 Nos. 2:17-cr-Case Nos. 2:17-cr-21, 25, 26, 27, 28, 32, 34, 36, 37.
Name, AKA
Age, Hometown
Pleaded Guilty to the Following Charge(s)
Guilty Plea
Darryl Moore,
aka “Little Darryl”
28, Norfolk
Felon in Possession of a Firearm
March 16
Kejuan Dante Perry,
aka “KP”
25, Chesapeake
Distribution of a Controlled Substance; Possession of Firearms in Furtherance of a Drug Trafficking Crime
March 21
Maurice Owen Johnson,
aka “Dink”
28, Norfolk
Distribution of a Controlled Substance; Possession of a Firearm in Furtherance of a Drug Trafficking Crime
March 22
Leonard Lee Brickhouse,
aka “Leo Brixx”
24, Norfolk
Distribution of a Controlled Substance; Possession of Firearm in Furtherance of a Drug Trafficking Crime
March 29
Evrick Speight
aka “P”
23, Virginia Beach
Distribution of a Controlled Substance; Possession of Firearm in Furtherance of a Drug Trafficking Crime
April 5
Jason Gilliard,
aka “Hoodro Wilson”
32, Virginia Beach
Conspiracy to Manufacture, Distribute and Possess with Intent to Distribute Heroin
April 10
Lamare Pierre Jordan,
aka “L”
30, Norfolk
Conspiracy to Manufacture, Distribute and Possess with Intent to Distribute Heroin; Possession of a Firearm in Furtherance of a Drug Trafficking Crime
April 11
James Andre Martin,
aka “Big Buff”
44, Norfolk
Distribution of a Controlled Substance; Felon in Possession of a Firearm
April 10
Keone Devon Perry, 23
23, Chesapeake
Transfer of Firearm to Prohibited Person
April 10
Carl Lee Walton, 22
aka “CJ”
22, Virginia Beach
Felon in Possession of a Firearm
April 11
Monday 10 April 2017
Wichita Man Sentenced in Armed Bank RobberyRead the Press Release
WICHITA, KAN. - A Wichita man was sentenced Monday to seven years in federal prison for his part in robbing a local bank, U.S. Attorney Tom Beall said.
Andre Bryant, 30, Wichita, Kan., pleaded guilty to one count of aiding and abetting or brandishing a firearm in a crime of violence. In his plea, he admitted that on June 13, 2016, he and co-defendants robbed the Carson Bank at 4461 E. Douglas in Wichita. Two individuals who were disguised entered the bank, one of them brandishing a firearm. They demanded and received money before fleeing. The money they received contained a global positioning device that police used to track Bryant and the co-defendants and arrest them.
Co-defendants Raishat Magill and Elijah Shelton are set for sentencing Thursday.
Beall commended the Wichita Police Department, the Sedgwick County Sheriff’s Department, the FBI and Assistant U.S. Attorney Aaron Smith for their work on the case.
Wichita Man Sentenced for Using Stolen Identity to Take Out $43,000 Car LoanRead the Press Release
WICHITA, KAN. - A Wichita man who used a stolen identity to take out a $43,000 car loan was sentenced Monday to 45 months in federal prison, U.S. Attorney Tom Beall said.
Jacob Michael Martin, 32, Wichita, pleaded guilty to one count of bank fraud and one count of aggravated identity theft. In his plea, Martin admitted he used another man’s identity when he went to CarMax and applied for a loan to buy a 2012 Jaguar. As a result, Wells Fargo Bank issued a loan of $43,599.47 in the victim’s name. Martin presented a counterfeit Kansas driver’s license with his own picture and the name of the victim. He also gave the lender the victim’s Social Security number.
Martin is one of 13 people charged in an indictment filed in May 2016 alleging the conspirators worked together to steal mail from mailboxes, forge identification documents, obtain fraudulent credit cards and shop with stolen identities.
Beall commended the U.S. Postal Inspection Service, the Sedgwick County Sheriff’s Department, the Wichita Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Alan Metzger for their work on the case.
Waterbury Man Sentenced to 51 Months in Federal Prison for Distributing HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JAMAR JONES, also known as “Mitch,” 35, of formerly of Ansonia and Waterbury, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 51 months of imprisonment, followed by three years of supervised release, for distributing heroin. JONES also was ordered to perform 80 hours of community service during his term of supervised release.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, in March 2016, the Ansonia Police Department and DEA received information that JONES was selling heroin in and around Ansonia and Waterbury, and that some of the heroin distributed by Jones had led to a non-fatal overdose. Officers made two controlled purchases of heroin from JONES in March 2016. Based on these sales, on April 14, 2016, Ansonia Police conducted a court-authorized search of JONES’s former residence in Ansonia and seized approximately 66 grams of heroin, 22 grams of crack cocaine, more than $17,000 in cash and three vehicles. JONES was arrested on that date for state narcotics offenses and was released on a $100,000 bond.
While released on bond, JONES continued to distribution heroin. Investigators conducted additional controlled purchases of heroin from JONES, and then from Alvin Lopes when the investigation revealed that he was working with Jones to distribute heroin.
JONES has been detained since his arrest on August 11, 2016. On December 5, 2016, he pleaded guilty to one count of conspiracy to distribute heroin and one count of possession with intent to distribute heroin and cocaine base (“crack”).
Lopes, of Waterbury, pleaded guilty to one count of conspiracy to distribute heroin and, on January 18, 2017, he was sentenced to 27 months of imprisonment.
This investigation was conducted by the Drug Enforcement Administration and the Ansonia Police Department. The case was prosecuted by Assistant U.S. Attorney Robert M. Spector and Jocelyn Courtney-Kaoutzanis.
Virginia Department of Social Services Agrees to Pay $7.1 Million to Resolve Alleged False Claims for SNAP FundsRead the Press Release
The Virginia Department of Social Services (VDSS) has agreed to pay the United States $7,150,436 to resolve allegations that it violated the False Claims Act in its administration of the Supplemental Nutrition Assistance Program (SNAP), the Department of Justice announced today. Until 2008, SNAP was known as the Food Stamp Program.
Under SNAP, the U.S. Department of Agriculture (USDA) provides eligible low-income individuals and families with financial assistance to buy nutritious food. Since 2010, SNAP has served on average more than 45 million Americans per month, and provided more than $71 billion annually.
“SNAP is an important vehicle for helping needy families,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “This settlement reflects the Justice Department’s commitment to ensuring that taxpayer funds are spent appropriately so that the public can have confidence in the integrity of vital programs like SNAP.”
Although the federal government funds SNAP benefits, it relies on the states to determine whether applicants are eligible for benefits, to administer those benefits, and to perform quality control to ensure that its eligibility decisions are accurate. USDA requires that the quality control processes the states use ensure that benefits are correctly awarded, are free from bias, and accurately report states’ error rates in making eligibility decisions. The USDA reimburses states for a portion of their administrative expenses in administering SNAP, including expenses for providing quality control. The USDA also pays performance bonuses to states that report the lowest and the most improved error rates each year, and can impose monetary sanctions on states with high error rates that do not show improvement.
As part of the settlement, VDSS admitted that, beginning in 2010, it retained Julie Osnes Consulting, a quality control consultant, to reduce its SNAP benefits determination error rate by training VDSS quality control workers to “use whatever means necessary” to find a benefits decision “correct” rather than finding an error. VDSS also admitted that if its quality control staff “could not find a way to make a benefits decision correct,” they were instructed to “find a reason to ‘drop’ the case, or eliminate it from the sample.” VDSS acknowledged that this outcome-driven method, as implemented by VDSS between 2010 and 2015, “injected bias into the case review process” because it was designed to lower VDSS’s reported error rate by falsely reporting errors as “correct” or eliminating them from the sample. Through its use of these biased methods, VDSS was improperly awarded USDA performance bonuses for 2011, 2012, and 2013.
VDSS further admitted that VDSS quality control workers did not want to use the methods proposed by Julie Osnes Consulting because they believed the methods lacked integrity, injected bias into the quality control process, and violated USDA requirements, and that they communicated these concerns to their supervisors. VDSS admitted that the former VDSS quality control manager pressured and intimidated these employees to force them to adopt these methods, including, according to these employees, threatening termination, providing negative performance reviews, taking away teleworking and flexible scheduling privileges, and engaging in other forms of harassment and retaliation.
As part of the settlement, VDSS and the United States also agreed that VDSS had taken certain corrective actions beginning in 2015, including terminating its use of the improper quality controls methods devised by Julie Osnes Consulting.
“We appreciate the commitment and investigative assistance provided by our partners at the U.S. Department of Justice’s Civil Division, U.S. Attorney’s Office, and Virginia Office of the State Inspector General,” said Special Agent-in-Charge Bethanne M. Dinkins of the USDA Office of Inspector General (OIG). “We also wish to note the technical assistance provided by our colleagues in the Office of Audit at USDA, OIG. During our investigation, we worked together to address the concerns of state employees and others who alleged that the integrity of the SNAP quality control process was weakened by third-party consultants. These concerned individuals reported that cases were not being treated in a consistent manner, and that certain advice from consultants resulted in identified errors being diminished rather than used to improve eligibility determinations. Today’s settlement sends a strong message regarding the Government’s commitment to work across agency lines to protect the integrity of SNAP.”
The settlement was the result of an investigation conducted by the USDA Office of Inspector General (USDA-OIG), the Civil Division’s Commercial Litigation Branch, and the U.S. Attorney’s Office for the Western District of Wisconsin that arose out of a nationwide audit of SNAP QC processes by the USDA-OIG.
Upstate New York Man Sentenced to 33 Months in Crystal Meth CaseRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that on Friday, April 7, 2017, Justin R. Brennan, 37, of Queensbury, New York, was sentenced in the United States District Court in Burlington following his guilty plea to Conspiracy to Distribute Five Grams or More of Methamphetamine. Chief U.S. District Court Judge Christina Reiss sentenced Brennan to 33 months in prison followed by three years of post-release supervision.
According to court records, the defendant was charged by information with one count of conspiracy to distribute methamphetamine, commonly referred to as “crystal meth.” As part of the plea agreement, Brennan stipulated that between April 2015 and April 2016, he conspired to take possession of between 1.5 and 4.5 kilograms of methamphetamine for the purposes of distribution in Vermont and elsewhere.
On or about April 13, 2016, Brennan sold approximately 28 grams of methamphetamine to a cooperating witness for the government. Law enforcement discovered that Brennan had fronted a significant amount of methamphetamine to his customers, including approximately 56 grams shortly before his arrest in April 2016. During the execution of a search warrant at Brennan’s upstate New York residence, law enforcement agents discovered over 50 grams of methamphetamine that Brennan had planned to distribute for profit.
Acting United States Attorney Eugenia A.P. Cowles credited the Federal Bureau of Investigation, as well as the Vermont State Police Drug Task Force and the New York State Police, for their hard work and cooperation in the investigation of this case.
Brennan was represented by Richard Goldsborough, Esq. The prosecutor was Assistant U.S. Attorney Abigail Averbach.
Two Sentenced for Conspiring to Sexually Exploit ChildrenRead the Press Release
TYLER, Texas — A man and woman have been sentenced to federal prison for child exploitation violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Brian Casper, 27, of Tyler, Texas pleaded guilty on Nov. 1, 2016, to conspiracy to sexually exploit children and was sentenced to 336 months in federal prison today by U.S. District Judge Ron Clark. Casper will be required to register as a sex offender upon his release from federal prison.
Taylor Keeth, 22, of Indianola, Iowa, pleaded guilty on Dec. 7, 2016, to conspiracy to sexually exploit children and was sentenced to 282 months in federal prison today by Judge Clark. She will also be required to register as a sex offender upon her release from federal prison.
According to information presented in court, between November 2014 and August 2015, Casper, knowingly conspired and agreed with Keeth, Crystal Beam, 35, of Medford, Oregon, and Lacy Brooks, 31, of Searcy, Arkansas, to use minor children to engage in sexually explicit conduct for the purpose of producing visual depictions and transmitting live visual depictions of such conduct.
Crystal Beam pleaded guilty on Nov. 14, 2016, to conspiracy to sexually exploit children. Lacy Brooks, 31, of Searcy, Arkansas, pleaded guilty on Jan. 10, 2017 in the Eastern District of Arkansas, to production of child pornography and distribution of child pornography. Beam and Brooks are awaiting sentencing.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation, Tyler Police Department, Port of Galveston Police Department, White County (Arkansas) Sheriff's Office, Indianola (Iowa) Police Department, and the Medford (Oregon) Police Department. This case is being prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld, in cooperation with Assistant U.S. Attorneys Erin O'Leary and Kristin Bryant of the Eastern District of Arkansas.
Two Randolph County Residents Charged with Methamphetamine OffenseRead the Press Release
On April 4, 2017, two Randolph County residents were charged with a methamphetamine offense, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Rodney V. Howie, 47, of Tilden, and Jordan P. Leggans, 29, of Sparta, were charged in a one-count superseding indictment charging conspiracy to distribute more than 50 grams of methamphetamine. The indictment alleges that the offense occurred between 2015 and February 2017, in Perry, Randolph, Monroe, and St. Clair Counties. On April 10, 2017, Howie and Leggans made their initial appearances in federal court. They were ordered held without bond pending an April 13, 2017, detention hearing.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The methamphetamine offense carries a maximum penalty of 5-40 years of imprisonment, to be followed by four years of supervised release, and a $5,000,000 fine.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Monroe County Sheriff’s Office, St. Clair County Sheriff’s Office, Perry County, Missouri Sheriff’s Office, and Drug Enforcement Administration. The Randolph County States Attorney’s Office and the Monroe County States Attorney’s Office also assisted in the investigation.
Two Men Convicted in Unrelated Cases for Distributing Child Porn Sentenced to Lengthy Prison SentencesRead the Press Release
LUBBOCK, Texas — Two men who were convicted in unrelated cases on child pornography offenses have been sentenced to lengthy federal prison sentences by Senior U.S. District Judge Sam R. Cummings, announced U.S. Attorney John Parker of the Northern District of Texas.
Ambrose Ledezma, 24, of San Angelo, Texas, was sentenced last week to 135 months in federal prison. Ledezma pleaded guilty in December 2016 to one count of distributing child pornography. Ledezma was remanded to custody following his sentencing hearing. According to documents filed in his case, Ledezma used Kik, an instant messenger software application that operates over the Internet, to send and receive messages. On April 15, 2015, Ledezma used Kik to distribute two images of child pornography to a Kik group named “Only For Kid Porn.” Each of the images distributed to this group by Ledezma depicts a minor prepubescent female engaged in sexually explicit conduct. Ledezma had obtained these images over the Internet by searching for images of minors engaged in sexually explicit conduct. The Department of Homeland Security, Homeland Security Investigations investigated the case.
Cody Brett Wilcox, 26, of Lubbock, Texas, was also sentenced last week to 188 months in federal prison. Wilcox pleaded guilty in December 2016 to one count of distributing child pornography. He has been in custody since his arrest in November 2016. According to documents filed in his case, Wilcox, using Kik, located a person who had posted that he was looking for “dads into incest, taboo, etc.” Wilcox contacted this person and messaged with him from October 20, 2016, through October 26, 2016. During the communications, Wilcox informed the other person that he had a lot of child pornography and that he traded the material on a regular basis. Wilcox sent the other person five images of child pornography. The images depicted prepubescent minor females engaged in sexually explicit conduct. The Lubbock Police Department and the Federal Bureau of Investigation investigated this case.
These cases were brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
Assistant U.S. Attorney Steven M. Sucsy prosecuted both cases.
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Store Clerk Pleads Guilty in Money Laundering ConspiracyRead the Press Release
JOHNSTOWN, Pa. - A resident of Cresson, Pa. pleaded guilty in federal court in Johnstown to a charge of conspiring to commit money laundering, Acting United States Attorney Soo C. Song announced today.
Melissa R. Seymore, 41, of Cresson, Pa., pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
Gary and Tonia Vaughn were the owners and operators of Gary’s Steals and Deals, a business located in Portage, PA, that dealt in new and used merchandise. Ms. Seymore was an employee/clerk at the business. The way the business operated was for “customers” to come to the store with new stolen items of merchandise (the great majority of which were still in the package from local stores) and present it for purchase by Gary’s. The store clerks, knowing the merchandise was stolen, would then give a percentage of the value for the new stolen items to the “customer.” The great majority of this business involved the same “customers” bringing in dozens of identical, “new in package” stolen items (i.e., razor blades, pet products, teeth whitening strips, ink cartridges, jackets, Lego sets, etc.) on the same day or subsequent days, which were purchased by Gary’s Steals and Deals. The stolen new merchandise was then listed for sale on Ebay or Amazon. Once purchased, the stolen merchandise was then shipped to the purchaser via use of the mail. The money received from the sale of the stolen merchandise over the internet was used to either purchase new stolen items from “customer” coming into the store, or was received by the employees as proceeds of this conduct.
Judge Gibson scheduled sentencing for August 9, 2017, at 10:00 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Internal Revenue Service Criminal Investigation, and the Federal Bureau of Investigation, Laurel Highlands Resident Agency, conducted the investigation that led to the prosecution of Seymore.