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3 May 2017
Martinsburg woman admits to cocaine traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Martinsburg, West Virginia woman pled guilty today to distributing crack cocaine, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Ashley Collier, age 29, pled guilty to one count of “Distribution of a Controlled Substance.”
Collier admitted to selling crack cocaine in Berkeley County in November 2013.
Collier faces up to twenty years and a $1,000,000 fine. 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 defendants.
Assistant U.S. Attorney Anna Z. Krasinski is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Man Charged with Being a Felon in Possession of a FirearmRead the Press Release
St. Thomas, USVI – Shakieme S. Freeman, 24, of St. Thomas, made his initial appearance yesterday before U.S. Magistrate Judge Ruth Miller on a criminal complaint charging him with being a felon in possession of a firearm, Acting United States Attorney Joycelyn Hewlett announced. After a detention hearing held today, Judge Miller released Freeman to two third-party custodians on a $25,000 unsecured bond and placed him on home detention with electronic monitoring pending further proceedings.
According to the complaint, police were patrolling the Thomasville Housing Community on February 16, 2017, when they came into contact with Freeman and discovered him to be armed with a loaded Glock pistol.
If convicted of being a felon in possession of a firearm, Freeman faces a maximum sentence of 10 years in prison and a $250,000 fine.
The information is the result of investigative work by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Meredith J. Edwards.
Acting United States Attorney Hewlett reminds the public that an Indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Madison County Sheriff’s Deputy Arrested on Federal Criminal ComplaintRead the Press Release
Charlottesville, VIRGINIA – A Madison County Sheriff’s Office detective, assigned to the Internet Crimes Against Children Task Force [ICAC], was arrested this morning and charged via federal criminal complaint with four counts relating to the sexual exploitation of minors, Acting United States Attorney Rick A. Mountcastle, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Virginia State Police Colonel Steve W. Flaherty and Acting Special Agent in Charge of the FBI’s Richmond Division John J. Lenkart, announced today.
Bruce A. Harvey, 40, of Reva, Va., has been charged with two counts of transporting minors across state lines with the intent to engage in criminal sexual activity and two counts of interstate travel with minors with the intent to engage in illicit sexual conduct. The alleged criminal activity involved two minor female victims who had contact with Harvey while he worked as a karate instructor. The alleged criminal conducted occurred between 1998 and 2007.
Harvey, a former instructor at the Virginia Tong Leong School of Karate in Madison, had his initial appearance this afternoon in the United States District Court for the Western District of Virginia in Charlottesville and remains in custody pending further court action.
The investigation of the case is ongoing and being conducted by the Federal Bureau of Investigation and the Virginia State Police. Assistant United States Attorney Nancy S. Healey and Lauren S. Kupersmith, Trial Attorney for the Child Exploitation and Obscenity Section of the United States Department of Justice will prosecute the case for the United States.
A criminal complaint is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
If you have any information about these crimes or information about a potential victim, please contact the FBI at 800-CALL-FBI. Investigators and victim specialists are available to assist you.
Madison County Sheriff’s Deputy Arrested and Charged with Crimes Relating to Sexual Exploitation of MinorsRead the Press Release
A Madison County, Virginia, Sheriff’s Office detective, assigned to the Internet Crimes Against Children Task Force (ICAC), was arrested this morning and charged via federal criminal complaint with four counts relating to the sexual exploitation of minors.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Rick A. Mountcastle of the Western District of Virginia, Colonel Steve W. Flaherty of the Virginia State Police and Acting Special Agent in Charge Division John J. Lenkart of the FBI’s Richmond Division made the announcement.
Bruce A. Harvey, 40, of Reva, Virginia, has been charged with two counts of transporting minors across state lines with the intent to engage in criminal sexual activity and two counts of interstate travel with minors with the intent to engage in illicit sexual conduct. The alleged criminal activity involved two minor female victims who had contact with Harvey while he worked as a karate instructor. The alleged criminal conduct occurred between 1998 and 2007.
Harvey, a former instructor at the Virginia Tong Leong School of Karate in Madison, had his initial appearance this afternoon in the U.S. District Court for the Western District of Virginia in Charlottesville and remains in custody pending further court action.
The charges contained in a complaint are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The investigation of the case is ongoing and being conducted by the FBI and the Virginia State Police. Assistant U.S. Attorney Nancy S. Healey of the Western District of Virginia and Trial Attorney Lauren S. Kupersmith of the Justice Department’s Child Exploitation and Obscenity Section (CEOS) are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
If you have any information about these crimes or information about a potential victim, please contact the FBI at 800-CALL-FBI. Investigators and victim specialists are available to assist you.
Lima men convicted of human trafficking crimesRead the Press Release
Two Lima men were convicted by a federal jury of human trafficking charges for their roles in a conspiracy in which girls, then 14 and 16 years old, were forced into commercial sex acts, said Acting U.S. David A. Sierleja, Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office, and Lima Police Chief Kevin Martin.
Lorenzo Young, 31, was convicted on eight counts, including conspiracy to engage in sex trafficking of minors, sex trafficking of a minor and participating in a child exploitation enterprise, among other crimes. He is scheduled to be sentenced on Sept. 7.
Aundre Davis, 35, was convicted on six counts, including conspiracy to engage in sex trafficking of minors, sex trafficking of a minor, and other crimes. He is scheduled to be sentenced on Aug. 31.
Megan Hitt, Randy Thompson and three other people previously pleaded guilty to crimes related to the conspiracy. Hitt is scheduled to be sentenced June 1.
Young, Davis, Thompson and Hitt conspired to cause girls, aged 14 and 16, to engage in commercial sex acts in Lima and Fort Wayne, Indiana. They did this by taking and posting sexually explicit photos of the girls on backpage.com, transporting the girls, renting motel rooms for them and negotiating prices. This took place between November 2015 and January 2016, according to court documents and trial testimony.
“These defendants preyed on teen girls so they could line their pockets with money,” Sierleja said. “Human trafficking happens all around us, on the internet and in the motels in our towns.”
“These individuals violated the rights of some of our most vulnerable in our community - the children,” Anthony said. “The FBI will continue working with our law enforcement partners to aggressively pursue justice for human trafficking victims and to put their perpetrators behind bars."
“Human trafficking is a devastating crime that must be stopped. It victimizes people within every segment of society throughout our nation,” Martin said. “I want to thank the FBI and U.S. Attorney’s Office for their help in enforcing the law against those who will engage in human trafficking within the Lima community. We are grateful for the cooperative working relationship we have with them and the many other local, state and federal law enforcement agencies that are working together to make human trafficking a thing of the past. The Lima Police Department cannot accomplish this alone.”
This case was investigated by the Federal Bureau of Investigation’s Toledo office and the Lima Police Department. It is being prosecuted by Assistant U.S. Attorneys Alissa M. Sterling and Daniel R. Hurley.
Leesville woman pleads guilty to role in theft of bank funds, falsifying transaction recordsRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a Leesville woman pleaded guilty to falsifying records and otherwise concealing that more than $1 million had been stolen from a local bank.
Amanda Pollock, 46, of Leesville, La., pleaded guilty before U.S. District Judge Jay C. Zainey to one count of concealing a document in a federal investigation. According to the guilty plea, Pollock stole 10 weeks of vault logs on May 10, 2014 while working as a teller at the Fort Polk branch of a local bank. She also entered false transactions into the bank’s records to cover up $1,179,091 that was missing. She took these actions to conceal the missing money and to otherwise obstruct any subsequent federal investigation into the missing funds.
Pollock faces up to five years in prison, three years of supervised release, restitution and a $2,358,182 fine. The court set a sentencing date of August 2, 2017.
The FBI and FDIC-Office of Inspector General conducted the investigation. Assistant U.S. Attorney David C. Joseph is prosecuting the case.
Leader of Drug Trafficking Organization Loren “Mama” Toelle Sentenced to PrisonRead the Press Release
COUER D’ALENE – Loren Michelle Toelle, 52, of Coeur d’Alene, Idaho, was sentenced yesterday for conspiracy to distribute controlled substances and conspiracy to launder money, Acting U.S. Attorney Rafael Gonzalez announced. Chief U.S. District Judge B. Lynn Winmill sentenced Loren Toelle to 212 months in federal prison to be followed by 5 years of supervised release. Toelle will also forfeit her interest in more than two million dollars of various properties, bank accounts, vehicles, cash and jewelry, all of which were the profits of the organization’s criminal actions or were intended to be used to promote the organization’s criminal actions.
Loren Toelle, also known as “Mama” by her co-conspirators and others in the drug world, pleaded guilty on January 18, 2017. She admitted being the leader of an organization involving her children and friends. The group sold oxycodone, heroin, and methamphetamine in Idaho, Washington, Montana and North Dakota. Toelle’s brother, Robert Hill, was also sentenced Tuesday by Judge Winmill to 151 months in prison. Robert Hill pleaded guilty November 18, 2016, to conspiracy to distribute controlled substances.
Loren Toelle’s ex-husband, Stanley Toelle, was also charged federally with conspiracy to launder money. On Tuesday, Stanley pleaded guilty to filing false documents with the Internal Revenue Service in 2012 and 2013. He will be sentenced on August 15, 2017. As part of his plea agreement, Stanley Toelle also agreed to pay nearly $50,000 in back taxes and forfeited over $150,000 in assets derived from his wife’s drug trafficking.
In total, 11 individuals were arrested by federal agents in February of 2016. All have pleaded guilty and been sentenced except for Stanley Toelle. The arrests and indictments in this case are the result of a joint investigation and cooperative law enforcement efforts of the Organized Crime and Drug Enforcement Task Force (OCDETF), comprised of the Federal Bureau of Investigation (FBI), Drug Enforcement Administration, U.S. Marshals Service, Internal Revenue Service – Criminal Investigation, and the Department of Homeland Security, Homeland Security Investigations. The OCDETF investigation was spearheaded by the North Idaho Violent Crime Task Force, consisting of the FBI, the Coeur d’Alene Police Department, the Kootenai County Sheriff’s Office and the Post Falls Police Department.
Acting U.S. Attorney Gonzalez praised the dogged determination of the federal, state and local investigators and the prosecution team in their tireless pursuit of this drug trafficking organization. “Not only were the offenders sent to prison, they were divested of their ill-gotten gains,” Gonzalez said.
Lake Charles man pleads guilty to drug, firearm chargesRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a Lake Charles man pleaded guilty to distributing cocaine and possessing firearms.
Kevin Ardoin, 36, of Lake Charles, La., pleaded guilty before U.S. District Judge Jay C. Zainey to one count of possession with intent to distribute cocaine and one count of possession of a firearm in furtherance of a drug trafficking crime. According to the guilty plea, law enforcement agents recorded Ardoin selling cocaine on June 22, 2016 in Lake Charles. Agents searched his home and found 1.9 ounces of crack cocaine, .5 ounces of powder cocaine, 13 Xanax pills, 14 grams of marijuana and $2,265. The next day, agents learned there were more drugs in Ardoin’s home than was previously found. They searched his home again and found $87,070, 432 grams of cocaine, and four firearms, which included a loaded Taurus .410 caliber pistol, a Masterpiece Arms .45 caliber pistol, a Taurus .40 caliber pistol, and a Smith and Wesson .38 caliber revolver.
Ardoin faces up to 20 years in prison and a $1 million fine for the drug count, and he faces not less than five years in prison consecutive to any other prison term and a $250,000 fine for the firearms count. He also faces three years of supervised release. The court set a sentencing date of August 2, 2017.
The FBI and Calcasieu Parish Combined Anti-Drug Taskforce conducted the investigation. Assistant U.S. Attorney David C. Joseph is prosecuting the case.
KC Man Faces Additional Charges for Jimmy John's Robbery, CarjackingRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was indicted by a federal grand jury today on additional charges related to the armed robbery of a Jimmy John’s restaurant and a carjacking.
Terry K. Rayford, 54, of Kansas City, was charged in a five-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a criminal complaint that was filed against Rayford on April 28, 2017, and includes additional charges.
The federal indictment contains the original charge of being a felon in possession of firearms. Rayford is also charged with one count of carjacking, one count of armed robbery and two counts of brandishing a firearm during a crime of violence.
According to the federal indictment, the charges stem from two incidents that occurred on Wednesday, April 26, 2017. Rayford allegedly robbed the Jimmy John’s restaurant, located at 3900 Broadway Blvd., Kansas City, Mo., at gunpoint. Rayford is also charged with brandishing a Witness-P .45-caliber semi-automatic handgun during that robbery.
Rayford allegedly stole a 1998 Ford Econoline E350 van at gunpoint on the same day. Rayford is also charged with using or brandishing a Witness-P .45-caliber semi-automatic handgun and a Jimenez 9mm semi-automatic handgun during the carjacking.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Rayford has 13 felony convictions for robbery and he was on parole at the time of the alleged offenses.
According to an affidavit filed in support of the original criminal complaint, the firearms were found in Rayford’s vehicle after he was stopped by Independence, Mo., police officers at approximately 7:30 p.m. on Thursday, April 27, 2017. Officers received information about a person matching the description of the suspect in the Jimmy John’s restaurant the day before. A retired major with the Kansas City, Mo., Police Department had seen video of the robbery broadcast on the news and saw Rayford – who appeared to be the robbery suspect – driving in the area of 40 Highway and Crysler in Independence.
Independence police officers responded to the area and stopped Rayford’s vehicle. When they ordered him to get out of his vehicle, officers found the Witness-P .45-caliber semi-automatic handgun lying on the driver’s side floorboard. Rayford was arrested and his vehicle towed. During an inventory of the vehicle, the Jimenez 9mm semi-automatic handgun was found in the back pouch of the front passenger seat.
Rayford told investigators he had stolen both of the handguns from his source of supply for crack cocaine, to whom he owed money.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the Kansas City, Mo., Police Department, the Independence, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jury convicts two members of Heartless Felons gang of armed carjacking in Tremont neighborhoodRead the Press Release
A federal jury convicted two Cleveland men of participating in a carjacking in the city’s Tremont neighborhood, said Acting U.S. Attorney David A. Sierleja, FBI Special Agent in Charge Stephen D. Anthony and Cleveland Police Chief Calvin Williams.
Kenneth Jackson, Jr., 20, and Antowine Palmer, 24, were convicted of an armed carjacking in July 2015. Jackson was also convicted of carjacking a couple the following day. The jury found Jackson brandished a firearm in both attacks while Palmer used a firearm in the first carjacking.
They are scheduled to be sentenced on Aug. 23. Palmer still has a murder trial pending in the Cuyahoga County Court of Common Pleas.
Tervon’tae Taylor, 23, of Cleveland Heights; D’wan Dillard, Jr., 20, Calvin Rembert, 23, both of Cleveland, previously pleaded guilty to their roles in carjackings in and around Tremont in the summer of 2015.
According to evidence and testimony introduced in the week-long trial:
Palmer and Jackson were members of the Heartless Felons street gang. They were feuding with a different set of Heartless Felons. The defendants planned to do a drive-by shooting of members of the rival group, so they went to Tremont to steal a car so they would be unrecognizable during the drive-by shooting.
Palmer, Jackson, Taylor and Rembert saw a man loading a GMC Denali in the early morning hours of July 25, 2015. They held a loaded gun to the victim’s head, pistol-whipped him and stole his vehicle, his wallet and his cellular phone. The defendants used his credit cards to make purchases at a Wal Mart.
“These defendants are violent predators who illegally used firearms to steal from law-abiding citizens,” Sierleja said.
“These men terrorized victims and the city with their dangerous, gun-wielding car thefts,” Anthony said. “The Violent Crime Task Force and our local partners are committed to aggressively investigate predators who choose to engage in heinous acts of violence against our citizens.”
This case is being prosecuted by Assistant U.S. Attorneys Kelly Galvin and Robert Patton following an investigation by the Federal Bureau of Investigation and Cleveland Division of Police.
Judge sentences three law enforcement officer defendants in Iberia Parish civil rights caseRead the Press Release
LAFAYETTE, La. – U.S. District Judge Donald E. Walter of the Western District of Louisiana yesterday issued prison sentences for three former officials of the Iberia Parish Sheriff’s Office (IPSO), including a former Lieutenant Colonel, for abuses of inmates, announced Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division, Acting U.S. Attorney Alexander Van Hook of the Western District of Louisiana and Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Division. Former Lt. Col. Gerald Savoy was sentenced to serve 87 months in prison; Wesley Hayes, the former Warden of the Iberia Parish Jail, was sentenced to serve 34 months; and Hayes’ brother Jesse, a former Assistant Warden at the jail, was sentenced to serve 24 months.
The convictions of these three defendants and seven others who were sentenced in February stemmed from several incidents of abuse at the Iberia Parish Jail (IPJ) in 2011. During the course of an expansive investigation, 10 former IPSO officials pleaded guilty to federal criminal civil rights violations. During their guilty plea hearings, the officials admitted to various incidents in which deputies willfully assaulted inmates, without legal justification for doing so. One of those incidents, including the incident to which Savoy and the Hayes brothers pled guilty, involved the abuse of a pretrial detainee in September 2011.
A second incident to which numerous deputies pled guilty occurred at the IPJ on April 29, 2011, when five pretrial detainees were taken into a chapel at the jail and were beaten by sheriff’s deputies.
The seven other defendants, who were sentenced previously for their roles in these civil rights offenses, are former Lt. Bret Broussard of the Narcotics Unit, who was sentenced to 54 months in prison; former narcotics agent Wade Bergeron, who was sentenced to 48 months in prison; former narcotics agent Jason Comeaux, who was sentenced to 40 months in prison; former narcotics agent David Hines, who was sentenced to 40 months in prison; former narcotics agent Byron Benjamin Lassalle, who was sentenced to 54 months in prison; and former K-9 handlers Robert Burns and Jeremy Hatley, who were sentenced to six months in prison and 36 months in prison respectively. An additional deputy, former Iberia Parish Sheriff’s Office Capt. Mark Frederick has been indicted and is pending trial at a later date. An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. Sheriff Louis Ackal, who was also charged in connection with the cases, was acquitted at a trial in November 2016.
“Former Lt. Col. Savoy and the other defendants sanctioned a culture of inmate abuse and flagrant disregard for the laws they swore an oath to uphold,” said Acting Assistant Attorney General Wheeler. “The convictions in this case demonstrate that the Justice Department is firmly committed to prosecuting law enforcement misconduct, which erodes public trust and threatens the reputation of the honorable men and women who wear the badge.”
“The FBI is committed to aggressively investigating allegations of excessive force used by law enforcement officers,” said Special Agent in Charge Sallet. “The civil rights of all persons must be protected as they are the bedrock of our society. The vast majority of law enforcement officers perform their duties with professionalism and valor, often at great personal risk. However, those few officers who abuse their authority and tarnish their badge, undermine the faith and trust placed in the criminal justice system by the American people. The FBI will continue to devote all necessary resources to these very important investigations.”
The case was investigated by the FBI’s Lafayette Resident Agency. The case is being prosecuted by Special Legal Counsel Mark Blumberg and Trial Attorney Tona Boyd of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Mary J. Mudrick of the Western District of Louisiana.
Judge Sentences Three Law Enforcement Officer Defendants in Iberia Parish, Louisiana, Civil Rights CaseRead the Press Release
U.S. District Judge Donald E. Walter of the Western District of Louisiana yesterday issued prison sentences for three former officials of the Iberia Parish Sheriff’s Office (IPSO), including a former Lieutenant Colonel, for abuses of inmates, announced Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division, Acting United States Attorney Alexander Van Hook of the Western District of Louisiana and Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Division. Former Lt. Col. Gerald Savoy was sentenced to serve 87 months in prison; Wesley Hayes, the former Warden of the Iberia Parish Jail, was sentenced to serve 34 months; and Hayes’ brother Jesse, a former Assistant Warden at the jail, was sentenced to serve 24 months.
The convictions of these three defendants and seven others who were sentenced in February stemmed from several incidents of abuse at the Iberia Parish Jail (IPJ) in 2011. During the course of an expansive investigation, 10 former IPSO officials pleaded guilty to federal criminal civil rights violations. During their guilty plea hearings, the officials admitted to various incidents in which deputies willfully assaulted inmates, without legal justification for doing so. One of those incidents, including the incident to which Savoy and the Hayes brothers pled guilty, involved the abuse of a pretrial detainee in September 2011.
A second incident to which numerous deputies pled guilty occurred at the IPJ on April 29, 2011, when five pretrial detainees were taken into a chapel at the jail and were beaten by sheriff’s deputies.
The seven other defendants, who were sentenced previously for their roles in these civil rights offenses, are former Lt. Bret Broussard of the Narcotics Unit, who was sentenced to 54 months in prison; former narcotics agent Wade Bergeron, who was sentenced to 48 months in prison; former narcotics agent Jason Comeaux, who was sentenced to 40 months in prison; former narcotics agent David Hines, who was sentenced to 40 months in prison; former narcotics agent Byron Benjamin Lassalle, who was sentenced to 54 months in prison; and former K-9 handlers Robert Burns and Jeremy Hatley, who were sentenced to six months in prison and 36 months in prison respectively. An additional deputy, former Iberia Parish Sheriff’s Office Capt. Mark Frederick has been indicted and is pending trial at a later date. An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. Sheriff Louis Ackal, who was also charged in connection with the cases, was acquitted at a trial in November 2016.
“Former Lt. Col. Savoy and the other defendants sanctioned a culture of inmate abuse and flagrant disregard for the laws they swore an oath to uphold,” said Acting Assistant Attorney General Wheeler. “The convictions in this case demonstrate that the Justice Department is firmly committed to prosecuting law enforcement misconduct, which erodes public trust and threatens the reputation of the honorable men and women who wear the badge.”
“The FBI is committed to aggressively investigating allegations of excessive force used by law enforcement officers,” said Special Agent in Charge Sallet. “The civil rights of all persons must be protected as they are the bedrock of our society. The vast majority of law enforcement officers perform their duties with professionalism and valor, often at great personal risk. However, those few officers who abuse their authority and tarnish their badge, undermine the faith and trust placed in the criminal justice system by the American people. The FBI will continue to devote all necessary resources to these very important investigations.”
The case was investigated by the FBI’s Lafayette Resident Agency. The case is being prosecuted by Special Legal Counsel Mark Blumberg and Trial Attorney Tona Boyd of the Civil Rights Division’s Criminal Section and Senior Litigation Counsel Joseph G. Jarzabek of the Western District of Louisiana.
Irondale Man Charged with Identity Theft for Using Signature Stamp to EmbezzleRead the Press Release
BIRMINGHAM – Federal prosecutors last week charged an Irondale man with identity theft in connection to nearly $400,000 embezzled from the company where he worked, announced Acting U.S. Attorney Robert O. Posey and FBI Special Agent in Charge Roger C. Stanton.
The U.S. Attorney’s Office filed a one-count information in U.S. District Court charging JOHN D. PILKINGTON III, 39, with one count of identity theft for using another person’s identification, via a rubber signature stamp, to steal property between January 2010 and July 2016.
In conjunction with the charge, prosecutors also filed a plea agreement with Pilkington. As part of the plea agreement, Pilkington promises to pay $397,016 in restitution to Cain Awning of Birmingham.
Pilkington worked at Cain Awning from January 2002 to July 2016. His job included preparing the weekly payroll, ordering materials and negotiating contracts with general contractors, as well as managing invoices and collections, which gave him access to the company’s books and accounts, according to the plea agreement. Pilkington also had access to a rubber stamp bearing the signature of the company’s owner and president.
According to Pilkington’s plea agreement, he carried out his identity theft and embezzlement as follows:
Between January 2010 and July 2016, Pilkington prepared more than 200 unauthorized company checks totaling about $293,410 and made payable to himself or to cash. He used the company owner’s signature stamp to sign the checks.
During the same period, Pilkington embezzled about $25,576 by signing his own name to Cain Awning checks, obtaining cashier’s checks with company funds and using company credit cards for personal purchases and benefits.
Cain Awning used outside vendors to process its payroll, and Pilkington caused the vendors to inflate his wages and compensation by about $75,042. The company paid an additional $5,288 in payroll taxes on the wrongly inflated pay.
The total estimated loss to Cain Awning because of Pilkington’s conduct was $399,316. His restitution amount is $397,016 because of $1,200 and some property he previously returned to the company.
The maximum penalty for identity theft is 15 years in prison and a $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney Henry Cornelius is prosecuting.
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Iowa Man Sentenced to Federal Prison for Iowa-Minnesota Meth ConspiracyRead the Press Release
A man was sentenced May 2, 2017, to more than six years in federal prison for conspiracy to distribute methamphetamine.
Sergio Lopez-Granillo, 25, from Sioux Center, IA, received the prison term after a guilty plea on January 26, 2017, to conspiracy to distribute methamphetamine.
At his guilty plea hearing, Lopez-Granillo admitted his involvement in a conspiracy that distributed at least 1,500 grams of actual (pure) methamphetamine from 2015 through September 2016 in Minnesota and Iowa. Lopez-Granillo admitted he repeatedly purchased 1 to 2 ounces of methamphetamine for a total of nearly 25 pounds from Rogelio Garcia-Jimenez in Worthington, MN for redistribution/use in Iowa over the course of about three years ending in 2016. Lopez-Granillo also admitted to distributing methamphetamine to an individual cooperating with law enforcement on a number of occasions.
Lopez-Granillo was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Lopez-Granillo was sentenced to 61 months’ imprisonment. A special assessment of $300 was imposed. He must also serve a 2-year term of supervised release after the prison term. Lopez-Granillo is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration; Iowa Department of Narcotics Enforcement; Minnesota Bureau of Criminal Apprehension; South Dakota Division of Criminal Investigation; Buffalo Ridge Task Force; and Internal Revenue Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-4084. Follow us on Twitter @USAO_NDIA.
Indictment: One Defendant, Eight Robberies in Five MonthsRead the Press Release
TOPEKA, KAN. – A federal grand jury returned an indictment Wednesday charging a Topeka man in eight robberies committed over a period of five months, U.S. Attorney Tom Beall said.
Joshua Alexander Musgraves, 24, Topeka, is charged in a superseding indictment with 13 counts as follows:
Date: Jan. 6, 2017
Place: Plato’s Closet, 1580 SW Wanamaker, Topeka.
Charges: Robbery (count one); brandish a weapon (count two).
Date: Jan. 20, 2017
Place: Kentucky Fried Chicken, 1812 NW Topeka in Topeka.
Charges: Robbery (count three), brandish a firearm (count four).
Date: March 23, 2017
Place: Burger King, 2817 Southeast California, Topeka.
Charges: Robbery (count five), brandish a firearm (count six).
Date: March 30, 2017
Place: McDonalds, 1100 S. Kansas, Topeka.
Charges: Robbery (count seven).
Date: April 3, 2017
Place: Subway restaurant, 1601 W. 23rd, Lawrence.
Charges: Robbery (count eight), brandish a firearm (count nine).
Date: April 4, 2017
Place: Wing Stop, 2233 Louisiana, Lawrence, Kan.
Charges: Robbery (count 10), brandish a firearm (count 11).
Date: Dec. 10, 2016
Place: Denison State Bank, 3640 Southwest Fairlawn, Topeka.
Charges: Bank robbery (count 12).
Date: Dec. 10, 2016
Place: Topeka
Charges: Carjacking (count 13).
If convicted, he faces the following penalties:
Counts one, three, five, seven, eight and 10: Up to 20 years and a fine up to $250,000.
Counts two, four and 11: Not less than seven years and a fine up to $250,000.
Counts six and nine: Not less than 10 years and a fine up to $250,000.
Count 12: Up to 25 years and a fine up to $250,000.
Count 13: Up to 15 years and a fine up to $250,000.
The Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
OTHER INDICTMENTS
Arlie J. Barhum, 32, who is in custody in the Shawnee County Jail, is charged with is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred March 21, 2017, in Topeka.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
Mark A. Richardson, 29, who is in custody in the Shawnee County Jail, is charged with is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred April 7, 2017, in Topeka.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
Sandra Rodriguez-Ruiz, 36, Laveen, Ariz., is charged with one count of possession with intent to distribute heroin. The crime is alleged to have occurred March 25, 2017, in Ellsworth County, Kan.
If convicted, she faces a penalty of not less than 10 years and a fine up to $10 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Greg Hough is prosecuting.
Jaiquan Jahai Wheeler, 20, who is in custody, is charged with one count of possession with intent to distribute marijuana, one count of unlawful possession of a firearm in furtherance of drug trafficking, and one count of unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred March 14, 2017, in Shawnee County, Kan.
If convicted, he faces up to five years and a fine up to $250,000 on the marijuana charge, not less than five years and a fine up to $250,000 on the firearm in furtherance of drug trafficking charge, and up to 10 years and a fine up to $250,000 on the remaining count. The FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Idaho Woman Sentenced for Social Security FraudRead the Press Release
BOISE – April Mae Beckmon, 38, of Marsing, Idaho, was sentenced today in United States District Court to 6 months in prison followed by 3 years supervised release for social security fraud, Acting U.S. Attorney Rafael Gonzalez announced. Senior U.S. District Judge Edward J. Lodge also ordered Beckmon to pay $22,272.45 in restitution to the Social Security Administration. Beckmon pleaded guilty to the charge on February 22, 2017.
According to the plea agreement, Beckmon received Supplemental Security Income (SSI) benefits from the Social Security Administration (SSA) from at least October 2010 through May 2015. Beckmon knew that she needed to report her October 2010 marriage and her spouse’s income to the SSA, but she did not. She chose not to report her marriage or her spouse’s income because she did not want it to impact her SSI benefits. Due to her marriage and her spouse’s unreported income, Beckmon received an overpayment in SSI benefits. From approximately January 2012 through May 2015, Beckmon fraudulently received $22,272.45 in SSI benefits that she was not entitled to.
The case was investigated by the Social Security Administration Office of Inspector General, the Department of Health and Human Services Office of Inspector General, and the Idaho Department of Health and Welfare.
Hoover Man Arrested on Federal Wire Fraud, Bank Fraud and Aggravated ID Theft ChargesRead the Press Release
BIRMINGHAM – FBI agents today arrested a Hoover man on multiple charges of wire fraud, bank fraud and aggravated identity theft, announced Acting U.S. Attorney Robert O. Posey and FBI Special Agent in Charge Roger C. Stanton.
RANDALL SHO WOODS, 32, is charged with stealing money from two former employers and a non-profit organization that supported the University of Alabama’s Million Dollar Band. Agents arrested Woods at his Inverness home. A federal grand jury in April returned a 24-count indictment against Woods. The indictment was unsealed upon his arrest.
Ingram’s Accounting & Financial Management Inc. previously employed Woods as a staff accountant. While working there, Woods fraudulently charged more than $30,000 on corporate credit card accounts for personal expenses, according to the indictment. Another company, State Traditions, previously employed Woods as an account clerk. While at State Traditions, Woods engaged in numerous fraudulent activities, including stealing more than $130,000 in funds from the company’s Pay-Pal account and its corporate checks, the indictment charges. Finally, while Woods served as treasurer of the Million Dollar Band Association, he stole more than $20,000 by writing checks payable to himself, according to the indictment.
The maximum penalty for each count of wire fraud is 20 years in prison and a $250,000 fine. The maximum prison sentence for bank fraud is 30 years.
The FBI investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark is prosecuting.
An indictment contains only charges. A defendant is presumed innocent of the charges unless and until proven guilty.
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Honduran National Sentenced for Illegally ReentryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that FRANCIS RAMIREZ-VASQUEZ, age 31, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Bill of Information for illegal reentry of a removed alien.
U.S. District Judge Ivan L.R. Lemelle sentenced RAMIREZ-VASQUEZ to time served, one year supervised release, and a $100 special assessment. RAMIREZ-VASQUEZ will be surrendered to the custody of the Immigration and Customs Enforcement for removal proceedings.
According to court documents, on or about December 23, 2016, FRANCIS RAMIREZ-VASQUEZ was found in the United States after having been officially deported and removed on or about December 28, 2010.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Honduran National Sentenced for Illegal ReentryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that ANGEL GUZMAN-RODRIGUEZ, age 28, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Indictment charging him with illegal reentry of a removed alien.
U.S. District Judge Sarah S. Vance sentenced GUZMAN-RODRIGUEZ to 15 months imprisonment, to be followed by one year supervised release. Following the completion of his sentence, GUZMAN-RODRIGUEZ will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, GUZMAN-RODRIGUEZ reentered the United States after having been previously deported on March 9, 2012.
Acting U.S. Attorney Evans praised the work of the United States Department of Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis was in charge of the prosecution.
Guatemalan man deported five times indicted for illegally reentering the U.S.Read the Press Release
A Guatemalan man was indicted for illegally reentering the United States, Acting U.S. Attorney David A. Sierleja said.
William Morales-Negra, 29, has been deported on five previous occasions, most recently in April 2014. Morales-Negra was recently found in New Philadelphia, according to the indictment.
Assistant U.S. Attorney Elliot D. Morrison is prosecuting the case following an investigation by Immigration and Custom Enforcement, Department of Homeland Security.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Grand Jury Indicts Pittsburgh Man for Firearms ViolationsRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges involving the unlawful possession of firearms by a convicted felon and possession of stolen firearms, Acting United States Attorney Soo C. Song announced today.
The six-count indictment, returned on May 2, named Dalton Douglas Duschl, 21, of Pittsburgh, Pennsylvania.
According to the Indictment presented to the court, in January and February of 2017, Duschl unlawfully possessed four firearms, which he was prohibited from possessing under federal law due to prior criminal convictions. Duschl also was charged with violating federal firearms laws by selling two of those firearms, which were stolen.
The law provides for a maximum total sentence of 60 years in prison, a fine of $1,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Special Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The case is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort between federal, state and local law enforcement agencies, prosecutors, and communities to prevent, deter and prosecute gun crime. Agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and detectives from the Allegheny County Police Department conducted the investigation that led to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Georgia Woman Sentenced to Prison for Her Role in a Stolen Identity Refund Fraud SchemeRead the Press Release
An Atlanta, Georgia resident was sentenced to 24 months in prison today for her role in a stolen identity refund fraud scheme, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney John A. Horn for the Northern District of Georgia.
According to documents and information provided to the court, Shamil Dean, 36, allowed bank accounts that she controlled to be used to receive more than $135,000 in fraudulent refunds. These refunds were generated from tax returns filed with the Internal Revenue Service (IRS) in the names of individuals whose identities were stolen.
In addition to the term of prison imposed, Dean was ordered to serve one year of supervised release. Dean will also be ordered to pay restitution to the IRS, in the amount to be determined by the court within 90 days. Dean pleaded guilty in February to aggravated identity theft.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Horn commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys David Zisserson and Charles M. Edgar Jr. of the Tax Division and Assistant U.S. Attorney Alana Black of the Northern District of Georgia, who prosecuted this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Gas Station Operator Pleads Guilty in Mississippi to Discharge of Hazardous Pollutant into City Sewage Treatment SystemRead the Press Release
WASHINGTON – Mahant Singh, operator of a convenience store and gas station in Yazoo City, Mississippi, pleaded guilty today to a criminal violation of the Clean Water Act. Singh admitted to discharging the contents of an underground fuel storage tank into a sewage line connected to the Yazoo City wastewater treatment system, which created a fire or explosion hazard and risked contaminating local water supplies, announced Acting Assistant Attorney General Jeffrey H. Wood for the U.S. Department of Justice Environment and Natural Resources Division and Acting U.S. Attorney Harold Brittain for the Southern District of Mississippi.
As charged in the criminal information, at the end of April 2016, water from rainstorms leaked into one of the underground gasoline storage tanks at the 49 Quick Stop though an inadequately maintained tank cap. The presence of water in the fuel storage tank triggered an automatic shut off, preventing the dispensing of gasoline. When there had been a similar water leak into a Quick Stop tank about a year earlier, in March 2015, defendant Singh arranged for a commercial tank service company to remove the water and gasoline mixture from his tank and to dispose of it properly, by separating the water and gasoline.
Instead of removing the gasoline and water mixture from his tank, as he had a year earlier, on or about April 28, 2016, defendant Singh pumped some of the content of the contaminated Quick Stop tank into an opening in the sewage line. Singh did so by extending a hose to the bottom of the tank where water might collect underneath the lighter gasoline. The other end of the hose he placed into the sewer pipe. Singh turned on a pump connected to the hoses, forcing liquid from the tank into the sewer line while he waited on customers at the Quick Stop store. In so doing, defendant Singh discharged liquid from the gasoline storage tank into the Yazoo City wastewater treatment system, thereby negligently introducing a pollutant into the system which created a fire or explosion hazard.
“The unpermitted discharge of gasoline-laden water into a community’s water treatment system is illegal, dangerous, and can also place the health of the community at risk,” said Acting Assistant Attorney General Wood. “These Clean Water Act charges, along with the guilty plea, should send a strong message that these unlawful acts, which place the public at risk, harm the environment, and damage local infrastructure, will not be tolerated.”
“We are fortunate that the illegal disposal of contaminated gasoline did not cause an explosion or injury,” said Director Chris Sanders of the Mississippi Department of Environmental Quality's (MDEQ) Office of Pollution Control. “A quick response by Yazoo City and MDEQ officials to identify the source of the discharge limited the risk of harm to the public and to the city’s sewage treatment system. However, numerous buildings, including a school, had to be evacuated when gasoline fumes were detected in several areas throughout the city. Cooperation between EPA’s Criminal Investigation Division and MDEQ to this illegal disposal was essential to these charges announced today. The State of Mississippi, through MDEQ, works closely with EPA in pursuing criminal enforcement of pollution prevention statutes.”
Federal law authorizes a Class A misdemeanor under the Clean Water Act for any person who negligently introduces into a publicly owned treatment works any pollutant or hazardous substance which the defendant person knew or reasonably should have known could cause personal injury or property damage or to introduce into the system any material other than in compliance with all applicable Federal, State, or local requirements or permits. Under the Clean Water Act, defendant Singh faces up to one year in prison; a term of supervised release of not more than five years; and a fine of up to $100,000.
Sentencing is scheduled for July 17, 2017.
Acting Assistant Attorney General Wood and Acting U.S. Attorney Brittain commended the efforts of the Environmental Protection Agency and state regulatory agencies for their diligent work in the investigation of this matter.
Gas Station Operator Pleads Guilty in Mississippi to Discharge of Hazardous Pollutant into City Sewage Treatment SystemRead the Press Release
Mahant Singh, operator of a convenience store and gas station in Yazoo City, Mississippi, pleaded guilty today to a criminal violation of the Clean Water Act. Singh admitted to discharging the contents of an underground fuel storage tank into a sewage line connected to the Yazoo City wastewater treatment system, which created a fire or explosion hazard and risked contaminating local water supplies, announced Acting Assistant Attorney General Jeffrey H. Wood for the U.S. Department of Justice Environment and Natural Resources Division and Acting U.S. Attorney Harold Brittain for the Southern District of Mississippi.
As charged in the criminal information, at the end of April 2016, water from rainstorms leaked into one of the underground gasoline storage tanks at the 49 Quick Stop though an inadequately maintained tank cap. The presence of water in the fuel storage tank triggered an automatic shut off, preventing the dispensing of gasoline. When there had been a similar water leak into a Quick Stop tank about a year earlier, in March 2015, defendant Singh arranged for a commercial tank service company to remove the water and gasoline mixture from his tank and to dispose of it properly, by separating the water and gasoline.
Instead of removing the gasoline and water mixture from his tank, as he had a year earlier, on or about April 28, 2016, defendant Singh pumped some of the content of the contaminated Quick Stop tank into an opening in the sewage line. Singh did so by extending a hose to the bottom of the tank where water might collect underneath the lighter gasoline. The other end of the hose he placed into the sewer pipe. Singh turned on a pump connected to the hoses, forcing liquid from the tank into the sewer line while he waited on customers at the Quick Stop store. In so doing, defendant Singh discharged liquid from the gasoline storage tank into the Yazoo City wastewater treatment system, thereby negligently introducing a pollutant into the system which created a fire or explosion hazard.
“The unpermitted discharge of gasoline-laden water into a community’s water treatment system is illegal, dangerous, and can also place the health of the community at risk,” said Acting Assistant Attorney General Wood. “These Clean Water Act charges, along with the guilty plea, should send a strong message that these unlawful acts, which place the public at risk, harm the environment, and damage local infrastructure, will not be tolerated.”
“We are fortunate that the illegal disposal of contaminated gasoline did not cause an explosion or injury,” said Director Chris Sanders of the Mississippi Department of Environmental Quality's (MDEQ) Office of Pollution Control. “A quick response by Yazoo City and MDEQ officials to identify the source of the discharge limited the risk of harm to the public and to the city’s sewage treatment system. However, numerous buildings, including a school, had to be evacuated when gasoline fumes were detected in several areas throughout the city. Cooperation between EPA’s Criminal Investigation Division and MDEQ to this illegal disposal was essential to these charges announced today. The State of Mississippi, through MDEQ, works closely with EPA in pursuing criminal enforcement of pollution prevention statutes.”
Federal law authorizes a Class A misdemeanor under the Clean Water Act for any person who negligently introduces into a publicly owned treatment works any pollutant or hazardous substance which the defendant person knew or reasonably should have known could cause personal injury or property damage or to introduce into the system any material other than in compliance with all applicable Federal, State, or local requirements or permits. Under the Clean Water Act, defendant Singh faces up to one year in prison; a term of supervised release of not more than five years; and a fine of up to $100,000.
Sentencing is scheduled for July 17, 2017.
Acting Assistant Attorney General Wood and Acting U.S. Attorney Brittain commended the efforts of the Environmental Protection Agency and state regulatory agencies for their diligent work in the investigation of this matter.
Former Orange County Man Found Guilty of Defrauding Insurance Companies by Billing Millions for Tests that Were Never PerformedRead the Press Release
LOS ANGELES – A former resident of Aliso Viejo has been found guilty of 15 counts of health care fraud for submitting bills to insurance companies that sought millions of dollars in reimbursement for tests and services that were never performed.
Michael Mirando, 40, who currently resides in Portland, Oregon, was found guilty yesterday by a federal jury that needed to deliberate for less than half an hour to reach its verdict after a weeklong trial.
Mirando was an owner of Holter Labs, which provided cardiac monitoring services using an ambulatory electrocardiography device known as a Holter monitor. The evidence presented during the trial in United States District Court showed that Mirando engaged in a fraud scheme in which he was responsible for the submission of millions of dollars in claims for services that were never performed.
Holter Labs provided the Holter monitor to physicians, who prescribed the devices to patients to monitor their heart rates for one to two days. Mirando then billed the patients’ insurance companies for the prescribed 24- or 48-hour tests, but he also submitted bills for services never ordered – such as 30-day tests – and for services the device could not perform – such as brain scans and oxygen studies.
From 2005 through 2016, Mirando submitted tens of thousands of claims to dozens of private health insurance companies. Mirando submitted bills that sought approximately $10 million, which included $7 million for services never performed and another $1 million for duplicate dates of services. The victim health insurance companies paid at least $2.5 million on these fraudulent claims.
After being free on bond since he was charged in this case last year, Mirando was remanded into custody on the first day of his trial after having contact with potential jurors in the case. After learning that Mirando spoke with two potential jurors outside of the courtroom, United States District Judge Percy Anderson revoked the defendant’s bond after finding that he engaged in jury tampering and had attempted to obstruct justice. At the conclusion of the trial, Judge Anderson released Mirando on a $1 million bond and ordered him placed under home detention.
Mirando is scheduled to be sentenced by Judge Anderson on August 21, at which time the defendant will face a statutory maximum sentence of 10 years in federal prison for each of the 15 counts of health care fraud.
Following his conviction yesterday, Mirando signed a stipulation in which he admitted that he purchased his house in Portland with proceeds generated by the fraud scheme. As a result, that residence could be the subject of a forfeiture action.
The case against Mirando was investigated by the Federal Bureau of Investigation.
The case is being prosecuted by Assistant United States Attorneys Michael G. Freedman and Katherine A. Rykken of the General Crimes Section.
Former Miami-Dade Police Detective Sentenced to Prison for Stealing Money from Migrant Workers and Obstructing JusticeRead the Press Release
U.S. District Court Judge Marcia G. Cooke sentenced former Miami-Dade Police Detective William Kostopoulos, 49, today to 36 months in prison. Kostopoulos was convicted in February 2017 for using his law enforcement authority to violate the civil rights of two motorists as well as obstructing justice.
Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division, Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, and Special Agent in Charge George L. Piro of the Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.According to evidence presented during the two-week trial, in 2013, Kostopoulos stopped two separate motorists, both undocumented migrant workers, in order to steal their money, in violation of their rights under the Fourth Amendment of the U.S. Constitution to be free from unreasonable seizures of their property. Kostopoulos subsequently obstructed justice by making misleading statements in order to prevent the communication of information about his crimes to federal law enforcement officers.
This case was investigated by the FBI, with assistance from the Homestead Police Department and the Miami-Dade Police Department. Assistant U.S. Attorneys Edward N. Stamm and Tonya R. Long of the Southern District of Florida and Trial Attorney Samantha Trepel of the Civil Rights Division prosecuted the case.
Former Miami-Dade Police Detective Sentenced to Prison for Stealing Money from Migrant Workers and Obstructing JusticeRead the Press Release
U.S. District Court Judge Marcia G. Cooke sentenced former Miami-Dade Police Detective William Kostopoulos, 49, today to 36 months in prison. Kostopoulos was convicted in February 2017 for using his law enforcement authority to violate the civil rights of two motorists as well as obstructing justice.
Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division, and Special Agent in Charge George L. Piro of the Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
According to evidence presented during the two-week trial, in 2013, Kostopoulos stopped two separate motorists, both undocumented migrant workers, in order to steal their money, in violation of their rights under the Fourth Amendment of the U.S. Constitution to be free from unreasonable seizures of their property. Kostopoulos subsequently obstructed justice by making misleading statements in order to prevent the communication of information about his crimes to federal law enforcement officers.
This case was investigated by the FBI, with assistance from the Homestead Police Department and the Miami-Dade Police Department. Assistant U.S. Attorneys Edward N. Stamm and Tonya R. Long of the Southern District of Florida and Samantha Trepel of the Civil Rights Division prosecuted the case.
The U.S. Attorney’s Office, Department of Justice Civil Rights Division and our FBI partners encourage members of the community who have information regarding potential civil rights violations to contact the FBI Citizen Complaint Bureau at (754) 703-2000 or file a report at https://tips.fbi.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Marion County, Kentucky, Resident Charged with Possession with Intent to Manufacture Marijuana and Possession with Intent to Distribute MarijuanaRead the Press Release
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr. today announced the initial appearance of John Robert Boone a/k/a Johnny Boone, before Magistrate Judge Colin H. Lindsay, in United States District Court. Boone is charged in a two-count federal grand jury indictment with manufacturing more than 1,000 marijuana plants and with possession with intent to distribute 50 kilograms (110 pounds) or more of marijuana.
Boone, formerly of Marion County, Kentucky, was taken in to custody by the United States Marshals Service after being deported from Montreal, Canada.
Boone was indicted on October 7, 2008 on two charges: on or about May 27, 2008, knowingly and intentionally manufacturing and possessing with the intent to manufacture and distribute 1,000 or more marijuana plants, a controlled substance; and on or about May 27, 2008, knowingly and intentionally possessing with the intent to distribute 50 kilograms or more of marijuana, a controlled substance.
If convicted at trial, Boone potentially faces a mandatory, minimum sentence of 20 years in prison, depending on his criminal history. Further, Boone could be fined up to $10,000,000 and be required to serve no less than 5 years of supervised release.
This case is being prosecuted by Assistant United States Attorney Larry Fentress.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty
boone_indictment_002.pdfFormer Hunts Point Police Benevolent Association President Charged with Embezzlement of Union FundsRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Andriana Vamvakas, District Director of the Office of Labor-Management Standards, U.S. Department of Labor (“OLMS”), announced today the arrest of VICTOR DAVILA, the former president of the Hunts Point Police Benevolent Association (“HPPBA”), for embezzling union funds. As alleged in a Complaint unsealed today, DAVILA stole more than $35,000 from the HPPBA by fraudulently charging personal expenses to the HPPBA and by withdrawing thousands of dollars in cash from union accounts for his own purposes. DAVILA will be presented this afternoon before U.S. Magistrate Judge Sarah Netburn.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Victor Davila allegedly embezzled thousands of dollars from the union he was entrusted to serve as its president. Instead of serving his fellow police officers, he allegedly stole from them, using union funds to pay for his own travel to Puerto Rico, meals, and other personal expenses.”
DOL-OLMS District Director Andriana Vamvakas said: “Union officials are required to use the union’s funds only for legitimate purposes, not their own personal gain. Financial mismanagement by union officials not only breaks the law, it betrays the trust their membership placed in them.”
According to the allegations in the Complaint[1] unsealed today in Manhattan federal court:
The HPPBA is the union for peace officers who work at and patrol the Hunts Point Market in the Bronx, New York. DAVILA served as the elected president of the HPPBA from in or about March 2011 through in or about March 2014. Beginning in at least July 2011, only months after becoming the union’s president, through February 2014, DAVILA stole money from the union by using an HPPBA debit card, linked to an HPPBA checking account, to charge expenses with no apparent relation to the business of the HPPBA, including, among other things: (1) multiple charges at a wholesale club in Westchester, New York, including for the purchase of eggs, soap, facial cream, a baking set, a waterproof camcorder, flowers, a video game, a mystery novel, women’s clothing, and a showerhead, (2) multiple charges at fast food and other restaurants, and (3) multiple charges for plane tickets to Puerto Rico. In addition, DAVILA withdrew thousands of dollars in cash from the HPPBA checking account using ATMs, and frequently then deposited corresponding amounts of cash into his own bank account. Based on the investigation to date, it appears that DAVILA stole more than $35,000 in total from the HPPBA.
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DAVILA, 50, of the Bronx, New York, was arrested this morning in Manhattan. DAVILA was charged with embezzling union funds, which carries a maximum sentence of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the efforts of the United States Department of Labor, Office of Labor-Management Standards, in this investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorney Jacob Warren is in charge of the prosecution.
The charge contained in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint forth herein constitute only allegations, and every fact described should be treated as an allegation.
Former Correction Officer Pleads Guilty to Civil Rights Violation for Sexual Assault of Inmate at Bedford Hills Correctional Facility for WomenRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that JEFFREY GREEN, a former correction officer at the Bedford Hills Correctional Facility for Women (the “Bedford Facility”), pled guilty today before U.S. Magistrate Judge Paul E. Davison to violating the constitutional civil rights of an inmate by sexually assaulting her at the Bedford Facility.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As he admitted in court today, Jeffrey Green sexually assaulted a defenseless female inmate. Green betrayed his duty as a correction officer and violated the Constitution. The protections of our Constitution do not end at our prisons’ walls.”
According to the allegations contained in the Information to which GREEN pled guilty today, and the related Complaint in which he was originally charged on February 15, 2017:
The Bedford Facility is a jail complex located in Bedford Hills, in Westchester County, New York, maintained by the New York State Department of Corrections and Community Supervision. At the time of the assault, Victim-1 was an inmate incarcerated at the Bedford Facility.
In the late evening hours of March 10, 2016, GREEN unlocked and opened the cell of Victim-1, and entered her cell unaccompanied by any other correction officer or other Bedford Facility staff. GREEN then grabbed Victim-1 by her arms, held her with her back against the wall of her cell, and began to lick, kiss, and bite her neck area, and to fondle her chest. After Victim-1 pushed GREEN away, he grabbed her, pushed her up against the wall of her cell, and again forced himself on her. GREEN then pulled up the shirt and bra of Victim-1 and bit, licked, and kissed her neck, chest, and breast and nipple areas, and fondled Victim-1’s groin area. GREEN was subsequently interrupted by the arrival of another correction officer knocking on a door to be admitted into the unit, upon which GREEN immediately departed Victim-1’s cell.
Victim-1 reported the assault the following morning, and a medical examination produced samples taken from Victim-1’s neck, left breast, and right breast that gave positive results with a presumptive test for saliva. A swab from Victim-1’s left breast generated a single-source male profile.
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JEFFREY GREEN, 48, of Brooklyn, New York, pled guilty to one count of violating the constitutional civil rights of an inmate by subjecting her to cruel and unusual punishment, by subjecting her to abusive sexual contact, which carries a maximum sentence of one year in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
GREEN is scheduled to be sentenced by Judge Davison on August 7, 2017.
Mr. Kim praised the investigative work of the New York State Department of Corrections and Community Supervision Office of Special Investigations and the Criminal Investigators at the United States Attorney’s Office. He also thanked the Westchester County District Attorney’s Office for their assistance in the investigation.
This case is being handled by the Office’s Civil Rights and Public Corruption Units. Assistant U.S. Attorneys Alex Rossmiller and Ellen Blain are in charge of the prosecution.
Former Chief Financial Officer at Not-For-Profit Organization Pleads Guilty to Wire Fraud and Making A False Tax ReturnRead the Press Release
Earlier today, Paul Cronin pleaded guilty at the federal courthouse in Brooklyn, New York, to a criminal information charging him with one count of wire fraud and one count of making and subscribing a false tax return, in connection with his conduct as Chief Financial Officer (CFO) for United States Council for International Business (USCIB), a not-for-profit organization that advocates for international business and trade. Pursuant to Cronin’s plea agreement with the government, Cronin agreed to pay more than $1.3 million in restitution as part of the sentence imposed by the Court. The plea was entered before United States Magistrate Judge James Orenstein.
As detailed in court filings and facts presented during the plea proceeding, Cronin abused his position as the CFO of USCIB to misappropriate more than $1.3 million in funds to pay for personal expenses. Cronin compounded his criminal conduct by failing to report the embezzled funds as income to the Internal Revenue Service.
The plea was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and James D. Robnett, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York Field Office (IRS).
“The defendant betrayed his position of trust with a not-for-profit organization to line his own pockets,” stated Acting United States Attorney Rohde. “Our office will remain vigilant in rooting out corrupt actors who undermine faith in organizations designed to further the public good.”
“Cronin’s misappropriation of more than $1 million, and subsequent tax evasion, didn’t support the efforts of free trade, as advocated by the organization, but instead supported his personal efforts to pay his own expenses,” stated Assistant Director-in-Charge Sweeney. “This type of reprehensible and illegal activity won’t be tolerated, and those who employ these schemes will most certainly be brought to justice.”
“In the United States, income is taxable, regardless of whether the source is legal or illegal. Mr. Cronin’s plea today serves as an important reminder that the role of IRS Criminal Investigation becomes even more important in embezzlement and fraud cases due to the complex financial transactions that can take time to decipher,” said IRS Special Agent-in-Charge Robnett. “The victims are not only the taxpayers, but also the individual entities who suffer the financial harm.”
This case has been assigned to United States District Court Judge Raymond J. Dearie. When sentenced on August 18, 2017, Cronin faces up to 20 years in prison.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Alexander A. Solomon and Lan Nguyen are in charge of the prosecution.
The Defendant:
PAUL CRONIN
Age: 55
Daniel Island, South Carolina
E.D.N.Y. Docket No. 17-CR-190 (RJD)
Former Business Executive Indicted on Federal Charges, Accused of Engaging in Contract Kickbacks and Phony Billing SchemesRead the Press Release
WASHINGTON – John T. Fitzgerald, a former vice president of the Washington, D.C. office of an investment banking firm, was indicted today on federal charges stemming from a scheme in which he allegedly accepted kickbacks for construction management contracts he steered to another firm, as well as other allegedly fraudulent activities.
The indictment was announced by U.S. Attorney Channing D. Phillips, Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Kimberly Lappin, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation’s (IRS-CI) Washington, D.C. Field Office.
Fitzgerald, 48, of Washington, D.C., was indicted by a grand jury in the U.S. District Court for the District of Columbia on 13 felony charges. They include three counts of wire fraud; one count of aggravated identity theft; two counts of tax evasion, and seven counts of money laundering. The indictment also includes a forfeiture allegation seeking more than $700,000 in proceeds that can be traced to the alleged schemes.
A co-defendant, Bryan D. Wright, 54, of Laytonsville, Md., pled guilty in February 2016 to one count of conspiracy to engage in wire fraud and one count of conspiracy to engage in money laundering. He is awaiting sentencing.
According to the indictment, Fitzgerald began work at the investment banking firm in 2008 and oversaw its real estate development activities and investments. His responsibilities included oversight of a commercial development project in Hanover, Md., known as the Station Ridge development project. The investment banking firm was the managing investor-owner of the project, which ultimately included three buildings for use as offices by various tenants.
In or around mid-2011, according to the indictment, Fitzgerald began to invoice the general contractor on Station Ridge through a company Fitzgerald owned, and thereby obtained roughly $41,000 for himself on the project.
Later in 2011, according to the indictment, Fitzgerald installed Wright as construction manager on Station Ridge, and the two agreed to an invoicing and kickback scheme that lasted into 2013. Wright was president of P&E Services, LLC. Between 2011 and 2013, through their scheme, Wright and Fitzgerald allegedly took $769,000 from the investment banking firm employing Fitzgerald, and another $417,000 from the general contracting company (which was reimbursed by the investment banking firm), for a total of nearly $1.2 million. Wright, through P&E and other companies, paid Fitzgerald nearly $600,000 in proceeds from the Station Ridge project, roughly half of the total amount that P&E Services obtained, the indictment alleges.
In a related scheme involving purported projects on the Bridgewater office building in Fairfax, Va., which was another development project of the investment banking firm, Wright and Fitzgerald submitted invoices for work that was not completed, and obtained additional money from Fitzgerald’s employer. Once again, Fitzgerald and Wright split the proceeds between them, with Fitzgerald receiving approximately $70,000, the indictment alleges.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the indictment, U.S. Attorney Phillips, Assistant Director in Charge Vale, and Special Agent in Charge Lappin commended the work of those who investigated the case from the FBI’s Washington Field Office and the Internal Revenue Service-Criminal Investigation. They acknowledged the work of those who handled the case for the U.S. Attorney’s Office, including former Assistant U.S. Attorney David A. Last, Paralegal Specialists Tasha Harris and C. Rosalind Pressley, and Legal Assistants Angela Lawrence and John Lowell. Finally, they acknowledged the work of Assistant U.S. Attorneys John Marston, Kendra D. Briggs, and Zia Faruqui, who are investigating and prosecuting the matter.
Former Bullitt County, Kentucky, Sheriff Charged with Attempting to Obstruct Justice and Aiding and Abetting A Bullitt County Special Deputy in A Conspiracy to Distribute MarijuanaRead the Press Release
Alleged criminal activity took place during a one year period while David Greenwell served as Bullitt County Sheriff
LOUISVILLE, Ky. – A former Bullitt County, Kentucky, Sheriff was charged by grand jury indictment, under seal, with four counts of attempting to obstruct the due administration of justice while serving as sheriff, and with one count of aiding and abetting in a conspiring to distribute 100 kilograms or more of marijuana, a schedule I controlled substance, announced United States Attorney John E. Kuhn, Jr.
David Greenwell, of Bullitt County, was arrested today and appeared before U.S. Magistrate Judge Colin Lindsay in Louisville.
According to the indictment, that was unsealed today, the alleged illegal activity was committed by Greenwell, between June of 2014, and July of 2015, while he served as Bullitt County Sheriff.
In June of 2014, Greenwell allegedly attempted to obstruct, influence and impede an official proceeding (a federal criminal prosecution) by arranging a secret meeting with C.M., a Bullitt County Special Deputy, who was the subject of state and federal criminal investigations, and for informing C.M. that he was under investigation, and for providing C.M. of the name of a potential government witness.
In July of 2014, Greenwell allegedly corruptly attempted to obstruct, influence, and impede, a federal criminal prosecution, by informing C. M., a Bullitt County Special Deputy and the subject of state and federal criminal investigations, that his place of business was under photographic surveillance (pole camera).
On May 15, 2015, Greenwell allegedly attempted to obstruct, impede, and interfere with a duly authorized criminal investigation, disclosed to C.M., a Bullitt County Special Deputy and the subject of state and federal criminal investigations, the contents of wire communications, that were intercepted as part of the criminal investigation.
Further, in July of 2015, Greenwell allegedly corruptly attempted to obstruct, influence, and impede an official proceeding, a federal criminal prosecution, by arranging a secret meeting with L.M., a Bullitt County Special Deputy and a person of interest in state and federal criminal investigations, and provided him with the names of three potential government witnesses in the federal prosecution.
In addition, between July of 2014 and July of 2015, Greenwell, while serving as Bullitt County Sheriff, allegedly aided and abetted C.M, while he served as a Bullitt County Special Deputy, in a conspiracy, to distribute 1000 kilograms or more of marijuana.
If convicted at trial, Greenwell could be sentenced to no less than ten years, including a life sentence, ordered to pay a fine of $11 million, and serve up to a five year period of supervised release.
This case is being prosecuted by Assistant United States Attorney Larry Fentress and is being investigated by the Federal Bureau of Investigation (FBI)
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty
greenwell_david_indictment_5-2-17.docxFelon from San Juan County Pleads Guilty to Unlawfully Possessing Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Shane Johnston, 41, of Aztec, N.M., pled guilty today in federal court in Albuquerque, N.M., to being a felon in possession of a firearm and ammunition.
Johnston was arrested in April 2016, on an indictment charging him with being a felon in possession of a firearm and ammunition on Sept. 1, 2015, in San Juan County, N.M. According to the indictment, Johnston previously had been convicted of several felony offenses including possession of a controlled substance, receiving stolen property, possession of a firearm or destructive device by a felon, burglary of an automobile and distribution of methamphetamine.
During today’s proceedings, Johnston pled guilty to the indictment and admitted that on Sept. 1, 2015, he was in possession of a firearm and ammunition and was prohibited from possessing firearms or ammunition because of his status as a convicted felon. At sentencing, Johnston faces a maximum penalty of ten years in federal prison. If the Court determines that Johnston is an armed career criminal, Johnston faces an enhanced sentence of a statutory mandatory minimum penalty of 15 years in prison and a maximum of life imprisonment.
This case was investigated by the ATF and is being prosecuted by Assistant U.S. Attorney Samuel A. Hurtado as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies 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 convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Federal Officials Close Investigation into Death of Alton SterlingRead the Press Release
WASHINGTON – The Justice Department announced today that the independent federal investigation into the fatal shooting of Alton Sterling on July 5, 2016, in Baton Rouge, Louisiana, found insufficient evidence to support federal criminal charges against Baton Rouge Police Department (BRPD) Officers Blane Salamoni and Howie Lake, II. Career prosecutors from the U.S. Attorney’s Office (USAO) for the Middle District of Louisiana and the Justice Department’s Civil Rights Division, along with officials from the FBI and the Justice Department’s Community Relations Service, met today with Sterling’s family and their representatives to inform them of the findings of the investigation and the decision.
Overview
The Department conducted a ten-month, comprehensive, and independent investigation of the events surrounding Sterling’s death. Federal agents and career prosecutors examined evidence from multiple independent sources, including all available footage from police vehicles that responded to the scene and the body-worn cameras from responding officers; cell-phone videos of the incident; interior and exterior surveillance video footage from the store where the shooting occurred; evidence gathered by the BRPD’s crime lab; BRPD documents related to the shooting; personnel files and background material for both involved officers, including prior use-of-force incidents; BRPD policies and training materials; all relevant dispatch recordings between and among local law enforcement, including the originating 911 calls; forensic evidence reports; the autopsy report; photographs of the crime scene; toxicology reports; EMS reports; and extensive additional electronically-stored evidence. As part of the investigation, the FBI laboratory conducted an expert forensic analysis of the video footage capturing the incident between Sterling and the officers. The FBI also interviewed dozens of witnesses, including civilian witnesses who were present at the scene and officers who responded to the scene after the shooting. The Department also consulted with two independent use-of-force experts whom the Civil Rights Division has previously used as government witnesses in criminal prosecutions of civil rights violations.
Applicable Law
The Department examined the facts in this case under all relevant federal criminal statutes. The federal criminal statute applicable to these facts is Title 18, United States Code, Section 242, Deprivation of Rights Under Color of Law. In order to proceed with a prosecution under Section 242, prosecutors must establish beyond a reasonable doubt that a law enforcement officer acted willfully to deprive an individual of a federally protected right. The right implicated in this matter is the Fourth Amendment right to be free from an unreasonable seizure. This right includes the right to be free from unreasonable physical force by police. To prove that a police shooting violated the Fourth Amendment, the government must prove beyond a reasonable doubt that the use of force was objectively unreasonable based on all of the surrounding circumstances. The law requires that the reasonableness of an officer’s use of force on an arrestee be judged from the perspective of a reasonable officer on the scene, rather than with added perspective of hindsight. The law set forth by the Supreme Court requires that allowances must be made for the fact that law enforcement officers are often forced to make split-second judgments in circumstances that are tense, uncertain, and rapidly evolving.
Additionally, to prove that a shooting violated section 242, the government must prove beyond a reasonable doubt that the officers acted willfully. This high legal standard – one of the highest standards of intent imposed by law – requires proof that the officer acted with the specific intent to do something the law forbids. It is not enough to show that the officer made a mistake, acted negligently, acted by accident or mistake, or even exercised bad judgment.
Although Sterling’s death is tragic, the evidence does not meet these substantial evidentiary requirements. In light of this, and for the reasons explained below, the federal investigation concluded that this matter is not a prosecutable violation of the federal statutes.
Factual Summary
While this summary is based on, and consistent with, all facts known to the government after a thorough investigation, it does not include or discuss all facts known to federal law enforcement officials or gathered through this investigation. Many of the facts gathered through the federal investigation are not permitted to be disclosed, and other particularly sensitive facts and evidence are not being disclosed in order to protect the integrity of the State Attorney General’s inquiry into whether any state statutes were violated.
The investigation revealed that at approximately 12:30 a.m. on July 5, 2016, an individual called 911 from a location near the Triple S Food Mart ("Triple S") and reported that he had been threatened outside of a store by a black man wearing a red shirt and selling CDs. The caller reported that the man had pulled out a gun and had the gun in his pocket. The caller’s first call disconnected, but he called back a few moments later and reiterated his report. Dispatch relayed that information to Officers Lake and Salamoni, who responded to the Triple S, where they saw Sterling, wearing a red shirt and standing by a table with a stack of CDs.
The subsequent exchange between Sterling and the officers happened very quickly, with the events – from the officers’ initial approach to a struggle on the ground to the shooting – happening in rapid succession. From the moment when Officer Lake gave his first order to Sterling, through the firing of the final shot, the entire encounter lasted less than 90 seconds. More specifically, from the start of the officers’ physical struggle with Sterling on the ground, through the firing of the final shot, the encounter lasted less than 30 seconds.
Multiple videos captured portions or the entirety of the officers’ interaction with Sterling. These include cell-phone videos, surveillance video from the store, and video from the officers’ body cameras and a police vehicle. FBI video forensic experts also provided enhancements of relevant videos for the portion of the struggle that immediately preceded the shooting.
The videos show the officers as they arrived on scene and engaged with Sterling. The videos show that the officers directed Sterling to put his hands on the hood of a car. When Sterling did not comply, the officers placed their hands on Sterling, and he struggled with the officers. Officer Salamoni then pulled out his gun and pointed it at Sterling’s head, at which point Sterling placed his hands on the hood. After Sterling briefly attempted to move his hands from the hood, Officer Lake then used a Taser on Sterling, who fell to his knees, but then began to get back up. The officers ordered him to get down, and Officer Lake attempted unsuccessfully to use his Taser on Sterling again. Officer Salamoni holstered his weapon, and then tackled Sterling; both went to the ground, with Officer Salamoni on top of Sterling, who was on his back with his right hand and shoulder partially under the hood of a car. Officer Lake joined them on the ground, kneeling on Sterling’s left arm while Officer Salamoni attempted to gain control over Sterling’s right arm. Officer Salamoni then yelled, "Going for his pocket. He’s got a gun! Gun!" Officer Salamoni then unsuccessfully attempted to gain control of Sterling’s right hand, while Officer Lake drew his weapon and yelled at Sterling, again directing him not to move. Less than one second later, during a point at which the location of Sterling’s right hand was not visible to the cameras, Officer Salamoni again yelled that Sterling was "going for the gun!" Officer Salamoni then fired three shots into Sterling’s chest.
After the first three shots were fired, Officer Salamoni rolled onto on his back, facing Sterling’s back, with his weapon still drawn. Officer Lake stood behind both of them with his weapon drawn and pointed at Sterling. Sterling began to sit up and roll to his left, with his back to the officers. Sterling brought his right arm across his body toward the ground, and Officer Lake yelled at Sterling to "get on the ground." As Sterling continued to move, Officer Salamoni fired three more rounds into Sterling’s back. Within a few seconds, Officer Lake reached into Sterling’s right pocket and pulled out a .38 caliber revolver. Investigators later confirmed that Sterling’s gun was loaded with six bullets at the time of this exchange.
Following the shooting, Officers Salamoni and Lake each provided a detailed statement offering his version of how and why this shooting happened. According to the officers, Sterling was large and very strong, and from the very beginning resisted their commands. The officers reported that they responded with multiple different compliance techniques and that Sterling resisted the entire time. Both officers reported that when they were on the ground, they saw Sterling’s right hand in his pocket, with his hand on a gun. Officer Salamoni reported that he saw the gun coming out and attempted to grab it, but Sterling jerked away and attempted to grab the gun again. Officer Salamoni then saw "silver" and knew that he had seen a gun, so he began firing. Both officers reported that after the first three shots, they believed that Sterling was attempting to reach into his right pocket again, so Officer Salamoni fired three more times into Sterling’s back.
Discussion
In light of the officers’ explanations of the shooting, the government, in order to prove a Fourth Amendment violation, would be required to (1) disprove the officers’ accounts, (2) prove an alternative account that demonstrates that the officers’ actions were objectively unreasonable; and (3) prove that the officers knew that their actions were unreasonable and took them anyway. The evidence in this case is insufficient to bear the heavy burden of proof under federal criminal civil rights law.
To fully assess whether this shooting constituted an unreasonable use of force, federal investigators closely examined, among other things, all of the evidence concerning the location of Sterling’s right hand prior to the first set of shots. As mentioned, although the videos do not show Sterling’s right hand at the time those shots were fired, they show that Sterling’s right hand was not under Officer Salamoni’s control. The evidence also cannot establish that Sterling was not reaching for a gun when Officer Salamoni yelled that Sterling was doing so.
Federal investigators interviewed numerous civilian witnesses to determine whether they could provide additional relevant information on the question of whether Sterling reached for a gun.
Only two witnesses reported to the FBI that they could see Sterling’s right hand, and they indicated that his hand was not in his pocket. However, because of other inconsistencies in their statements, and because of the fact that parts of their accounts are materially contradicted by the videos, their accounts are insufficient to prove the position of Sterling’s right hand/arm beyond a reasonable doubt at the time the shots were fired. Although the Department found no reason to doubt the sincerity of the witnesses’ accounts, this incident happened in an instant, and the witnesses may have had no reason to be specifically watching for the precise location of Sterling’s right hand at the time of the shooting. Given the inconsistencies in the civilian witnesses’ perspectives and recollections and the fact that the video establishes that Officer Salamoni did not have control over Sterling’s right hand just before the shots were fired, the evidence simply cannot establish beyond a reasonable doubt the position of Sterling’s right hand at the exact time of the shooting, a split-second later. The Department therefore cannot disprove the officers’ claim beyond a reasonable doubt.
The investigators also consulted with two independent, nationally recognized use-of-force experts with whom the Civil Rights Division has previously consulted in civil rights cases. While both experts criticized aspects of the officers’ techniques, they also concluded that the officers’ actions were reasonable under the circumstances and thus met constitutional standards. The experts emphasized that the officers were responding to a call that someone matching Sterling’s description had brandished a weapon and threatened another person; that Sterling was large and strong; and that Sterling was failing to follow orders and was struggling with the officers. The experts noted that the officers also attempted to control Sterling through multiple less-than-lethal techniques before ultimately using lethal force in response to Officer Salamoni’s perception that Sterling was attempting to use a gun.
The investigators’ review of BRPD files revealed no prior incidents involving substantiated allegations of misconduct by Officers Salamoni or Lake.
In light of these facts, the evidence gathered during this investigation is insufficient to prove, beyond a reasonable doubt, that the use of force leading up to and including the shooting violated the Fourth Amendment.
The federal investigators also considered whether the evidence proved the distinct statutory element of willfulness. To establish that the officers acted willfully, the government would be required both to disprove the reason the officers gave for the shooting and to affirmatively establish that the officers instead acted with the specific intent to violate Sterling’s rights—meaning that, in shooting Sterling, the officers knew that what they were doing was unreasonable or prohibited, and chose to do it anyway.
For many of the same reasons described above, the evidence is insufficient to prove beyond a reasonable doubt that the officers’ actions were a willful violation of the Fourth Amendment. When Officer Salamoni first reported that Sterling was going for the gun, he said, "Going for his pocket, he’s got a gun! Gun!" Significantly, Officer Salamoni did not shoot Sterling at this point, and, instead, attempted to gain control of Sterling’s right hand. Officer Lake also warned Sterling not to move. Seconds later, Officer Salamoni yelled again that Sterling was "going for the gun!" and only then did he fire his own weapon. This evidence suggests that Officer Salamoni fired his weapon when he believed that Sterling was going for his gun a second time, after Officer Lake had warned Sterling not to move. In order to prosecute this matter, the government would have to prove beyond a reasonable doubt not only that Sterling was not reaching for his gun, but also that, despite Officer Salamoni’s contemporaneous statements to the contrary, he did not believe that Sterling was reaching for his gun after being warned not to move. The Department lacks the evidence to prove either of those propositions beyond a reasonable doubt.
The investigators also considered whether Officer Salamoni’s second series of shots was a prosecutable Fourth Amendment violation. Although the videos show that Sterling’s right hand was not in or near his right pocket, Sterling was continuing to move, even after being shot three times and being told again not to move by Officer Lake. Meanwhile, the officers were behind Sterling, and Officer Salamoni was lying on the ground, facing Sterling’s back. Given these circumstances, the evidence cannot establish beyond a reasonable doubt that it did not appear to Officer Salamoni that Sterling was reaching for his pocket. Nor could the Department prove that the officer’s conduct was willful.
Conclusion
In sum, after extensive investigation into this tragic event, career Justice Department prosecutors have concluded that the evidence is insufficient to prove beyond a reasonable doubt that Officers Salamoni and Lake willfully violated Sterling’s civil rights. Given the totality of the circumstances – that the officers had been fighting with Sterling and had attempted less-than-lethal methods of control; that they knew Sterling had a weapon; that Sterling had reportedly brandished a gun at another person; and that Sterling was much larger and stronger than either officer – the Department cannot prove either that the shots were unconstitutional or that they were willful. Moreover, two different, independent experts opined that this shooting was not unreasonable given the circumstances. With respect to the first series of shots, the experts assessed that it was not unreasonable for Officer Salamoni to use lethal force, in light of all of the circumstances referenced above. With respect to the second series of shots, both experts emphasized that officers are trained to eliminate a threat, and that Sterling appeared to pose a threat because he was still moving and his right hand was not visible to Officer Salamoni. Accordingly, the federal investigation into this incident has been closed without prosecution. Federal officials intend to provide the investigative file to the Louisiana Attorney General’s Office, which intends to conduct its own investigation into whether the conduct at issue in this investigation violated state law.
In this case, the U.S. Attorney’s Office for the Middle District of Louisiana, the Justice Department’s Civil Rights Division, and the FBI each devoted significant time and resources to investigating the circumstances surrounding Sterling’s death and to completing a thorough analysis of the evidence gathered. The Justice Department remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources required to ensure that all serious allegations of civil rights violations are thoroughly examined. The Department aggressively prosecutes criminal civil rights violations whenever there is sufficient evidence to do so.
Federal Officials Close Investigation into Death of Alton SterlingRead the Press Release
The Justice Department announced today that the independent federal investigation into the fatal shooting of Alton Sterling on July 5, 2016, in Baton Rouge, Louisiana, found insufficient evidence to support federal criminal charges against Baton Rouge Police Department (BRPD) Officers Blane Salamoni and Howie Lake, II. Career prosecutors from the U.S. Attorney’s Office (USAO) for the Middle District of Louisiana and the Justice Department’s Civil Rights Division, along with officials from the FBI and the Justice Department’s Community Relations Service, met today with Sterling’s family and their representatives to inform them of the findings of the investigation and the decision.
Overview
The Department conducted a ten-month, comprehensive, and independent investigation of the events surrounding Sterling’s death. Federal agents and career prosecutors examined evidence from multiple independent sources, including all available footage from police vehicles that responded to the scene and the body-worn cameras from responding officers; cell-phone videos of the incident; interior and exterior surveillance video footage from the store where the shooting occurred; evidence gathered by the BRPD’s crime lab; BRPD documents related to the shooting; personnel files and background material for both involved officers, including prior use-of-force incidents; BRPD policies and training materials; all relevant dispatch recordings between and among local law enforcement, including the originating 911 calls; forensic evidence reports; the autopsy report; photographs of the crime scene; toxicology reports; EMS reports; and extensive additional electronically-stored evidence. As part of the investigation, the FBI laboratory conducted an expert forensic analysis of the video footage capturing the incident between Sterling and the officers. The FBI also interviewed dozens of witnesses, including civilian witnesses who were present at the scene and officers who responded to the scene after the shooting. The Department also consulted with two independent use-of-force experts whom the Civil Rights Division has previously used as government witnesses in criminal prosecutions of civil rights violations.
Applicable Law
The Department examined the facts in this case under all relevant federal criminal statutes. The federal criminal statute applicable to these facts is Title 18, United States Code, Section 242, Deprivation of Rights Under Color of Law. In order to proceed with a prosecution under Section 242, prosecutors must establish beyond a reasonable doubt that a law enforcement officer acted willfully to deprive an individual of a federally protected right. The right implicated in this matter is the Fourth Amendment right to be free from an unreasonable seizure. This right includes the right to be free from unreasonable physical force by police. To prove that a police shooting violated the Fourth Amendment, the government must prove beyond a reasonable doubt that the use of force was objectively unreasonable based on all of the surrounding circumstances. The law requires that the reasonableness of an officer’s use of force on an arrestee be judged from the perspective of a reasonable officer on the scene, rather than with added perspective of hindsight. The law set forth by the Supreme Court requires that allowances must be made for the fact that law enforcement officers are often forced to make split-second judgments in circumstances that are tense, uncertain, and rapidly evolving.
Additionally, to prove that a shooting violated section 242, the government must prove beyond a reasonable doubt that the officers acted willfully. This high legal standard – one of the highest standards of intent imposed by law – requires proof that the officer acted with the specific intent to do something the law forbids. It is not enough to show that the officer made a mistake, acted negligently, acted by accident or mistake, or even exercised bad judgment.
Although Sterling’s death is tragic, the evidence does not meet these substantial evidentiary requirements. In light of this, and for the reasons explained below, the federal investigation concluded that this matter is not a prosecutable violation of the federal statutes.
Factual Summary
While this summary is based on, and consistent with, all facts known to the government after a thorough investigation, it does not include or discuss all facts known to federal law enforcement officials or gathered through this investigation. Many of the facts gathered through the federal investigation are not permitted to be disclosed, and other particularly sensitive facts and evidence are not being disclosed in order to protect the integrity of the State Attorney General’s inquiry into whether any state statutes were violated.
The investigation revealed that at approximately 12:30 a.m. on July 5, 2016, an individual called 911 from a location near the Triple S Food Mart (“Triple S”) and reported that he had been threatened outside of a store by a black man wearing a red shirt and selling CDs. The caller reported that the man had pulled out a gun and had the gun in his pocket. The caller’s first call disconnected, but he called back a few moments later and reiterated his report. Dispatch relayed that information to Officers Lake and Salamoni, who responded to the Triple S, where they saw Sterling, wearing a red shirt and standing by a table with a stack of CDs.
The subsequent exchange between Sterling and the officers happened very quickly, with the events – from the officers’ initial approach to a struggle on the ground to the shooting – happening in rapid succession. From the moment when Officer Lake gave his first order to Sterling, through the firing of the final shot, the entire encounter lasted less than 90 seconds. More specifically, from the start of the officers’ physical struggle with Sterling on the ground, through the firing of the final shot, the encounter lasted less than 30 seconds.
Multiple videos captured portions or the entirety of the officers’ interaction with Sterling. These include cell-phone videos, surveillance video from the store, and video from the officers’ body cameras and a police vehicle. FBI video forensic experts also provided enhancements of relevant videos for the portion of the struggle that immediately preceded the shooting.
The videos show the officers as they arrived on scene and engaged with Sterling. The videos show that the officers directed Sterling to put his hands on the hood of a car. When Sterling did not comply, the officers placed their hands on Sterling, and he struggled with the officers. Officer Salamoni then pulled out his gun and pointed it at Sterling’s head, at which point Sterling placed his hands on the hood. After Sterling briefly attempted to move his hands from the hood, Officer Lake then used a Taser on Sterling, who fell to his knees, but then began to get back up. The officers ordered him to get down, and Officer Lake attempted unsuccessfully to use his Taser on Sterling again. Officer Salamoni holstered his weapon, and then tackled Sterling; both went to the ground, with Officer Salamoni on top of Sterling, who was on his back with his right hand and shoulder partially under the hood of a car. Officer Lake joined them on the ground, kneeling on Sterling’s left arm while Officer Salamoni attempted to gain control over Sterling’s right arm. Officer Salamoni then yelled, “Going for his pocket. He’s got a gun! Gun!” Officer Salamoni then unsuccessfully attempted to gain control of Sterling’s right hand, while Officer Lake drew his weapon and yelled at Sterling, again directing him not to move. Less than one second later, during a point at which the location of Sterling’s right hand was not visible to the cameras, Officer Salamoni again yelled that Sterling was “going for the gun!” Officer Salamoni then fired three shots into Sterling’s chest.
After the first three shots were fired, Officer Salamoni rolled onto on his back, facing Sterling’s back, with his weapon still drawn. Officer Lake stood behind both of them with his weapon drawn and pointed at Sterling. Sterling began to sit up and roll to his left, with his back to the officers. Sterling brought his right arm across his body toward the ground, and Officer Lake yelled at Sterling to “get on the ground.” As Sterling continued to move, Officer Salamoni fired three more rounds into Sterling’s back. Within a few seconds, Officer Lake reached into Sterling’s right pocket and pulled out a .38 caliber revolver. Investigators later confirmed that Sterling’s gun was loaded with six bullets at the time of this exchange.
Following the shooting, Officers Salamoni and Lake each provided a detailed statement offering his version of how and why this shooting happened. According to the officers, Sterling was large and very strong, and from the very beginning resisted their commands. The officers reported that they responded with multiple different compliance techniques and that Sterling resisted the entire time. Both officers reported that when they were on the ground, they saw Sterling’s right hand in his pocket, with his hand on a gun. Officer Salamoni reported that he saw the gun coming out and attempted to grab it, but Sterling jerked away and attempted to grab the gun again. Officer Salamoni then saw “silver” and knew that he had seen a gun, so he began firing. Both officers reported that after the first three shots, they believed that Sterling was attempting to reach into his right pocket again, so Officer Salamoni fired three more times into Sterling’s back.
Discussion
In light of the officers’ explanations of the shooting, the government, in order to prove a Fourth Amendment violation, would be required to (1) disprove the officers’ accounts, (2) prove an alternative account that demonstrates that the officers’ actions were objectively unreasonable; and (3) prove that the officers knew that their actions were unreasonable and took them anyway. The evidence in this case is insufficient to bear the heavy burden of proof under federal criminal civil rights law.
To fully assess whether this shooting constituted an unreasonable use of force, federal investigators closely examined, among other things, all of the evidence concerning the location of Sterling’s right hand prior to the first set of shots. As mentioned, although the videos do not show Sterling’s right hand at the time those shots were fired, they show that Sterling’s right hand was not under Officer Salamoni’s control. The evidence also cannot establish that Sterling was not reaching for a gun when Officer Salamoni yelled that Sterling was doing so.
Federal investigators interviewed numerous civilian witnesses to determine whether they could provide additional relevant information on the question of whether Sterling reached for a gun.
Only two witnesses reported to the FBI that they could see Sterling’s right hand, and they indicated that his hand was not in his pocket. However, because of other inconsistencies in their statements, and because of the fact that parts of their accounts are materially contradicted by the videos, their accounts are insufficient to prove the position of Sterling’s right hand/arm beyond a reasonable doubt at the time the shots were fired. Although the Department found no reason to doubt the sincerity of the witnesses’ accounts, this incident happened in an instant, and the witnesses may have had no reason to be specifically watching for the precise location of Sterling’s right hand at the time of the shooting. Given the inconsistencies in the civilian witnesses’ perspectives and recollections and the fact that the video establishes that Officer Salamoni did not have control over Sterling’s right hand just before the shots were fired, the evidence simply cannot establish beyond a reasonable doubt the position of Sterling’s right hand at the exact time of the shooting, a split-second later. The Department therefore cannot disprove the officers’ claim beyond a reasonable doubt.
The investigators also consulted with two independent, nationally recognized use-of-force experts with whom the Civil Rights Division has previously consulted in civil rights cases. While both experts criticized aspects of the officers’ techniques, they also concluded that the officers’ actions were reasonable under the circumstances and thus met constitutional standards. The experts emphasized that the officers were responding to a call that someone matching Sterling’s description had brandished a weapon and threatened another person; that Sterling was large and strong; and that Sterling was failing to follow orders and was struggling with the officers. The experts noted that the officers also attempted to control Sterling through multiple less-than-lethal techniques before ultimately using lethal force in response to Officer Salamoni’s perception that Sterling was attempting to use a gun.
The investigators’ review of BRPD files revealed no prior incidents involving substantiated allegations of misconduct by Officers Salamoni or Lake.
In light of these facts, the evidence gathered during this investigation is insufficient to prove, beyond a reasonable doubt, that the use of force leading up to and including the shooting violated the Fourth Amendment.
The federal investigators also considered whether the evidence proved the distinct statutory element of willfulness. To establish that the officers acted willfully, the government would be required both to disprove the reason the officers gave for the shooting and to affirmatively establish that the officers instead acted with the specific intent to violate Sterling’s rights—meaning that, in shooting Sterling, the officers knew that what they were doing was unreasonable or prohibited, and chose to do it anyway.
For many of the same reasons described above, the evidence is insufficient to prove beyond a reasonable doubt that the officers’ actions were a willful violation of the Fourth Amendment. When Officer Salamoni first reported that Sterling was going for the gun, he said, “Going for his pocket, he’s got a gun! Gun!” Significantly, Officer Salamoni did not shoot Sterling at this point, and, instead, attempted to gain control of Sterling’s right hand. Officer Lake also warned Sterling not to move. Seconds later, Officer Salamoni yelled again that Sterling was “going for the gun!” and only then did he fire his own weapon. This evidence suggests that Officer Salamoni fired his weapon when he believed that Sterling was going for his gun a second time, after Officer Lake had warned Sterling not to move. In order to prosecute this matter, the government would have to prove beyond a reasonable doubt not only that Sterling was not reaching for his gun, but also that, despite Officer Salamoni’s contemporaneous statements to the contrary, he did not believe that Sterling was reaching for his gun after being warned not to move. The Department lacks the evidence to prove either of those propositions beyond a reasonable doubt.
The investigators also considered whether Officer Salamoni’s second series of shots was a prosecutable Fourth Amendment violation. Although the videos show that Sterling’s right hand was not in or near his right pocket, Sterling was continuing to move, even after being shot three times and being told again not to move by Officer Lake. Meanwhile, the officers were behind Sterling, and Officer Salamoni was lying on the ground, facing Sterling’s back. Given these circumstances, the evidence cannot establish beyond a reasonable doubt that it did not appear to Officer Salamoni that Sterling was reaching for his pocket. Nor could the Department prove that the officer’s conduct was willful.
Conclusion
In sum, after extensive investigation into this tragic event, career Justice Department prosecutors have concluded that the evidence is insufficient to prove beyond a reasonable doubt that Officers Salamoni and Lake willfully violated Sterling’s civil rights. Given the totality of the circumstances – that the officers had been fighting with Sterling and had attempted less-than-lethal methods of control; that they knew Sterling had a weapon; that Sterling had reportedly brandished a gun at another person; and that Sterling was much larger and stronger than either officer – the Department cannot prove either that the shots were unconstitutional or that they were willful. Moreover, two different, independent experts opined that this shooting was not unreasonable given the circumstances. With respect to the first series of shots, the experts assessed that it was not unreasonable for Officer Salamoni to use lethal force, in light of all of the circumstances referenced above. With respect to the second series of shots, both experts emphasized that officers are trained to eliminate a threat, and that Sterling appeared to pose a threat because he was still moving and his right hand was not visible to Officer Salamoni. Accordingly, the federal investigation into this incident has been closed without prosecution. Federal officials intend to provide the investigative file to the Louisiana Attorney General’s Office, which intends to conduct its own investigation into whether the conduct at issue in this investigation violated state law.
In this case, the U.S. Attorney’s Office for the Middle District of Louisiana, the Justice Department’s Civil Rights Division, and the FBI each devoted significant time and resources to investigating the circumstances surrounding Sterling’s death and to completing a thorough analysis of the evidence gathered. The Justice Department remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources required to ensure that all serious allegations of civil rights violations are thoroughly examined. The Department aggressively prosecutes criminal civil rights violations whenever there is sufficient evidence to do so.
Federal Jury Convicts Gentilly Resident of Laundering Money for Heroin Dealers and Other Financial CrimesRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that yesterday a federal jury convicted CORNELL PENDLETON, age 51, of the Gentilly neighborhood in New Orleans, for his role in laundering money on behalf of heroin dealers in the New Orleans area. Following a weeklong trial, the jury found PENDLETON guilty of conspiracy to commit money laundering; numerous substantive money laundering offenses involving the illegal purchase of real property and cars on behalf of heroin dealers; structuring his cash deposits; and two counts of providing false statements on loan applications. The jury also found that PENDLETON must forfeit over $1 million in cash and assets that were involved in his criminal activities.
According to the evidence at trial, the case against PENDLETON stemmed from a Drug Enforcement Administration investigation of a heroin-trafficking organization that operated in New Orleans East. The original investigation, nicknamed “Wild Wild East,” began in 2013 and has since resulted in the conviction of twelve New Orleans-based heroin dealers.
Through that investigation, the government began developing evidence that PENDLETON was helping drug dealers to acquire high-end assets in an effort to conceal the proceeds of their drug operation. These high-end assets included multiple cars, such as Mercedes, Porsche, Corvette, Bentley, and BMW; residential and investment real estate; jewelry, including Rolex watches; and other expensive items. PENDLETON’s scheme involved purchasing assets in his own name, and then allowing the drug dealers to use the assets while making sizable, off-the-books payments to PENDLETON. Once an asset was fully paid off, PENDLETON would often transfer title of the asset back to the drug dealer. PENDLETON was paid entirely in cash for his assistance in acquiring these assets. The evidence showed that, over a two and a half year period between 2012 and 2014, PENDLETON deposited over $1.5 million in cash into four bank accounts, while knowing that the cash included illegal drug proceeds.
PENDLETON faces a maximum sentence of twenty years in prison for his crimes. Sentencing before Judge Jane Triche Milazzo is scheduled for August 10, 2017.
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration, Kenner Police Department, and Border Patrol in investigating this matter. Assistant United States Attorneys Brandon S. Long and Theodore Carter are responsible for the prosecution.
Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Lance Crick (864) 282-2105
United States Attorney Beth Drake stated today that a Federal Grand Jury in Florence, South Carolina, returned Indictments against the following, and the defendants have since been arrested:
Hartsville Men Arrested Following a Federal Indictment for Possessing a Gun after being Convicted of a Felony, Possession with Intent to Distribute Cocaine, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Eddie Terrell McCoy, age 28, and Antonio Darnell Rivers, age 41, both of Hartsville, were charged in an eleven-count indictment. McCoy was charged with possession with intent to distribute cocaine, a violation of Title 21, United States Code, Section 841(a)(1), the maximum penalty of which is a maximum fine of $250,000.00 and/or imprisonment of 20 years; Rivers was charged with possession of a firearm after being convicted of a felony, a violation of Title 18, United States Code, Section 922(g)(1), the maximum possible penalty of which is, a maximum fine of $250,000.00 and/or imprisonment of 15 years to Life; possession with intent to distribute and distributing cocaine, a violation of Title 21, United States Code, Section 841(A)(1), the maximum penalty of which is a maximum fine of $250,000.00 and/or imprisonment of 40 years; and possession of a firearm in furtherance of a drug trafficking crime, a violation of Title 18, United States Code, Section 924(c)(1)(A), the maximum penalty of which is a maximum fine of $250,000.00 and/or imprisonment of 5 years consecutive to any other sentence received and twenty-five years to life for any second or subsequent 924(c)(1)(A) conviction.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Darlington County Sheriff’s Office, Florence County Sheriff’s Office, Hartsville Police Department and Darlington Police Department. The case has been assigned to Assistant United States Attorney Alfred W. Bethea, Jr., of the Florence office for prosecution.
Darlington Men Arrested Following a Federal Indictment for Possession with Intent to Distribute and Distribution of Crack Cocaine, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Trevor Jarad Davis, age 27, and Daniel Jamal Gavins, age 25, both of Darlington, were charged in an eight-count indictment. Davis was charged with possession with intent to distribute and distribution of crack cocaine, a violation of Title 21, United States Code, Section 841(a)(1), the maximum penalty of which is a maximum fine of $250,000.00 and/or imprisonment of 20 years; Gavins was charged with possession with intent to distribute and distributing crack cocaine, a violation of Title 21, United States Code, Section 841(A)(1), the maximum penalty of which is a maximum fine of $250,000.00 and/or imprisonment of 40 years; and possession of a firearm in furtherance of a drug trafficking crime, a violation of Title 18, United States Code, Section 924(c)(1)(A), the maximum penalty of which is a maximum fine of $250,000.00 and/or imprisonment of 5 years consecutive to any other sentence.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Darlington County Sheriff’s Office, Florence County Sheriff’s Office, Hartsville Police Department and Darlington Police Department. The case has been assigned to Assistant United States Attorney Alfred W. Bethea, Jr., of the Florence office for prosecution.
Hartsville Man Arrested Following a Federal Indictment for Possession With Intent to Distribute Crack Cocaine. Quinten Lonnel Richardson, age 28, of Hartsville, South Carolina, was charged in a three-count indictment with Possession with Intent to Distribute Crack Cocaine, a violation of Title 21, United States Code, Section 841(a)(1). The maximum possible penalty Richardson could receive is a maximum fine of $5,000,000.00 and/or imprisonment of 40 years to Life. Richardson was arrested on April 3, 2017.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Darlington County Sheriff’s Office, Florence County Sheriff’s Office, Hartsville Police Department and Darlington Police Department. The case has been assigned to Assistant United States Attorney Alfred W. Bethea, Jr., of the Florence office for prosecution.
Two Darlington County Men Arrested following a Federal Indictment for Felon in Possession of a Firearm and Possession of a Firearm in Furtherance of a Crime of Violence. Kenneth Eric Coe, Jr., age 23, of Timmonsville, and Jaquan Latrel Samuel, age 30, of Hartsville, were charged in a five-count indictment. Both Coe and Samuel were charged with possession and brandishing of a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A), the maximum penalty of which is a fine of $250,000.00 and/or 7 years to life consecutive to any other sentence imposed. Samuel, was additionally charged with felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1), the maximum penalty of which is a fine of $250,000.00 and/or 10 years to life imprisonment.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Darlington County Sheriff’s Office, Florence County Sheriff’s Office, Hartsville Police Department and Darlington Police Department. The case has been assigned to Assistant United States Attorney Lauren L. Hummel, of the Florence office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
#####Fayetteville Man Sentenced for Trafficking in Counterfeit GoodsRead the Press Release
NEW BERN – John Stuart Bruce, United States Attorney for the Eastern District of North Carolina announces that today in Federal court, United States District Judge Louise W. Flanagan sentenced KURT MICHAEL KROL, 36, of Fayetteville, North Carolina to 72 months imprisonment, followed by 3 years of supervised release. Additionally, KROL agreed to forfeit to the government all counterfeit articles seized; proceeds of $156,932 seized from four BB&T bank accounts, proceeds of $51,988 seized from two USAA bank accounts; a residence located in Fayetteville; a residence located in Raeford; and a money judgment in the amount of the gross proceeds of the offense.
KROL was named in a Criminal Information filed on October 14, 2015, which charged him with trafficking in counterfeit goods from September 2012 to February 2015. On December 15, 2015, KROL pled guilty to the charge.
The investigation revealed that on January 22, 2008, KROL founded Universal Mania, Inc. (UM), an internet based marketplace for consumer electronics located in Fayetteville. KROL, president and CEO of UM, initially sold legitimate consumer electronic equipment; however, in 2011 or 2012, he was introduced to a representative of a company in Hong Kong, China, that sold counterfeit Otterbox products (OBP). Thereafter, KROL began purchasing counterfeit OBP from that company.
On October 31, 2012, Otterbox alleged that UM had infringed on their federal trademark registrations. UM subsequently filed a Complaint for Declaratory Judgment against Otterbox in the United States District Court for the Eastern District of North Carolina on February 8, 2013. Otterbox filed a counter-claim on April 12, 2013. On December 17, 2013, the court entered a Consent Judgment ordering UM to pay Otterbox $200,000 for trademark infringement. The court also entered a permanent injunction, prohibiting UM from the unauthorized use of any Otterbox trademark.
However, the investigation discovered that KROL met with a representative from the Chinese company in Fayetteville to find out what products they could counterfeit. KROL then imported counterfeit products including L’Oreal (Clarisonic), HSI Professional, and Conair (Babyliss) beauty products; Garmin products; Choon’s Design (Rainbow Loom) toys; Philips (Sonicare) products; Zing Anything bottles; Harman International Industries (JBL), LG, and Bose speakers and/or headphones; and Spectrum Brands FURminator dog brushes. The investigation found that 2,047 shipments originating in Hong Kong were addressed to KROL between August 2012 and February 2015.
KROL sold counterfeit merchandise, as well as merchandise from legitimate distributors on the internet. He comingled the sales proceeds from the counterfeit products with proceeds from legitimate sales. When one internet business discovered UM was selling counterfeit items through its website, they terminated UM’s accounts. KROL then solicited UM employees, friends, and family members to establish accounts on the website to sell UM’s counterfeit products.
“Defendants such as Krol while trafficking in counterfeit goods, undermine our fair trade and free market system to generate illicit proceeds,” said HSI North Carolina Assistant Special Agent in Charge Christopher Healy, “This significant sentence will let people, such as Krol, know that this illegal activity impacts not only our national economy but the local economies where these illegal traffickers operate.”
Between October 2013 and January 2015, agents with the Department of Homeland Security (DHS), Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) seized counterfeit items from several different locations. During the execution of a search warrant at UM on February 25, 2015, HSI agents seized multiple counterfeit products and KROL acknowledged that he sold counterfeit items, despite the Otterbox civil judgment against him, the receipt of numerous seizure notices from DHS, and warnings from an online distributor.
This investigation was conducted by HSI in Raleigh.
Dubois Man Charged with Filing False Tax ReturnsRead the Press Release
PITTSBURGH – A resident of Dubois, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of Filing False Tax Returns, Acting United States Attorney Soo C. Song announced today.
The three-count indictment, returned on May 2, named Gary E. Mills as the sole defendant.
According to the indictment, on April 15, 2015, April 15, 2014, and August 1, 2014, Mills filed false joint tax returns by intentionally under reporting his and his wife’s income to the IRS.
The law provides for a maximum total sentence of nine years in prison, a fine of $750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigations and the U.S. Postal Inspection Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Delaware Man Sentenced to 156 Months in Prison for Distribution of Child PornographyRead the Press Release
WASHINGTON – A Wilmington, Delaware, man was sentenced to 156 months in prison today for distributing child pornography, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney David C. Weiss of the District of Delaware.
Roy Harvender Jr., 59, pleaded guilty on Oct. 5, 2016, before U.S. District Court Judge Leonard P. Stark of the District of Delaware to one count of distribution of child pornography for his membership in a website dedicated to the sexual exploitation of children. Judge Stark also ordered Harvender to serve 10 years of supervised release and to pay $5,000 in restitution to each of this victims.
According to admissions made in connection with the plea agreement, the FBI identified Harvender during the investigation of an online bulletin board whose primary purpose was the advertisement and distribution of child pornography. This website had a total of over 105,000 users and required its members to continually share child pornography in order to gain and keep membership.
Harvender admitted that he was an active member of this website for a period of several months in 2014 and made approximately 190 postings to the board, including images and videos of child pornography and links to images and videos of child pornography. After identifying , agents executed a search warrant at his residence and found images of child pornography on electronic devices they seized. was interviewed by FBI agents and admitted that he uploaded child pornography images to other users of the website and that he owned the devices that contained child pornography.
Trial Attorney Kathryn C. Furtado of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Edmond Falgowski of the District of Delaware prosecuted this case. The FBI’s Baltimore Division investigated the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Delaware Man Sentenced to 156 Months in Prison for Distribution of Child PornographyRead the Press Release
A Wilmington, Delaware, man was sentenced to 156 months in prison today for distributing child pornography, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney David C. Weiss of the District of Delaware.
Roy Harvender Jr., 59, pleaded guilty on Oct. 5, 2016, before U.S. District Court Judge Leonard P. Stark of the District of Delaware to one count of distribution of child pornography for his membership in a website dedicated to the sexual exploitation of children. Judge Stark also ordered Harvender to serve 10 years of supervised release and to pay $5,000 in restitution to each of his victims.
According to admissions made in connection with the plea agreement, the FBI identified Harvender during the investigation of an online bulletin board whose primary purpose was the advertisement and distribution of child pornography. This website had a total of over 105,000 users and required its members to continually share child pornography in order to gain and keep membership.
Harvender admitted that he was an active member of this website for a period of several months in 2014 and made approximately 190 postings to the board, including images and videos of child pornography and links to images and videos of child pornography. After identifying Harvender, agents executed a search warrant at his residence and found images of child pornography on electronic devices they seized. Harvender was interviewed by FBI agents and admitted that he uploaded child pornography images to other users of the website and that he owned the devices that contained child pornography.
Trial Attorney Kathryn C. Furtado of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Edmond Falgowski of the District of Delaware prosecuted this case. The FBI’s Baltimore Division investigated the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Defendant Willie Brothers, Jr. Sentenced to 9 Years for Distributing Fentanyl-Laced HeroinRead the Press Release
WILMINGTON, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware, announced today that Willie Brothers, Jr., of Wilmington, was sentenced to 9 years’ incarceration following a conviction for conspiracy to distribute heroin. Brothers’ co-defendant, Raheem Ridley, is scheduled to be sentenced next month.
According to documents filed and statements made in open court, Brothers led a group of people who packaged and sold approximately 40,000 bags of heroin mixed with Fentanyl. Fentanyl is an opiate that is 50 times stronger than heroin and largely responsible for a dramatic increase in overdose deaths in the region. During his conspiracy with Ridley, Brothers provided Ridley with a handgun that had been used in multiple shootings in the city of Wilmington, including a homicide on October 14, 2015. When Brothers was arrested by the members of the Wilmington Police Department on November 4, 2015, four firearms were found in the car he was driving. Two of those firearms were associated with multiple prior shootings in Wilmington, including a shooting on November 2, 2015, when a 13-year-old girl was struck by a stray bullet.
Acting United States Attorney David C. Weiss said, “Drug dealers who use firearms and sell Fentanyl-laced heroin have no regard for human life. These defendants are the top priority for the New Castle County HIDTA. Together we are committed to investigating, prosecuting and removing these individuals from our community.”
This case is the result of an investigation conducted by multiple agencies in the New Castle County HIDTA Group. The FBI Safe Streets Drug Taskforce and Cecil County Drug Taskforce led the investigation with significant assistance from the Delaware State Police, Wilmington Police Department and the Delaware Attorney General’s Office. The case was prosecuted by Special Assistant United States Attorney Christopher L. de Barrena-Sarobe and Assistant United States Attorney Shawn A. Weede.
Convicted Felon in Possession of a Firearm Sentenced to 120 Months in Federal PrisonRead the Press Release
Memphis, TN – Jamie Thomas, 29, was sentenced to 120 months in federal prison for being a felon in possession of a firearm. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, on September 10, 2014, Memphis Police Department (MPD) detectives conducted a traffic stop at Nabors Way and Collins Chapel Circle. As officers approached Thomas’ vehicle he placed something in his mouth, locked the doors and rolled up the windows, to a point where only an arm could reach inside. The defendant presented law enforcement with his license but refused to turn off the vehicle.
After disobeying law enforcement’s directives to turn off the engine, the officer reached through the passenger side window, unlocked the door and turned off the vehicle. The defendant restarted the engine and accelerated the vehicle, while he and the detective struggled over control of the vehicle. Described as wearing a pink hat and pink shirt, the defendant jumped from the vehicle and ran. The vehicle was driverless, as the detective was in the passenger seat. The detective jumped from the passenger seat to the driver seat to stop the moving vehicle. While fleeing on foot, the defendant tossed a Smith and Wesson .40 caliber pistol.
During his flight, Thomas unknowingly flagged down an undercover detective who was driving an unmarked vehicle. The defendant agreed to pay the undercover detective $200 to take him out of the area. After driving for a short time, the detective advised the defendant that he was under arrest. He then attempted to handcuff the defendant, but Thomas was able to escape again. The defendant was subsequently arrested a short time later at his residence.
When officers with the Project Safe Neighborhoods (PSN) Task Force attempted to arrest the defendant on the federal warrant relating to the September 10, 2014, firearm possession, detectives observed the defendant exit a window and jump into another window of a second floor apartment building while attempting to escape. The defendant was arrested after making it to the ground floor.
The case was investigated by PSN Task Force, which includes the U.S. Attorney’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Memphis Police Department; and the Shelby County Sheriff’s Office, who have all joined together to address gun-related crimes through aggressive investigation and prosecution. Assistant U.S. Attorneys Marques Young and Murre Martindale prosecuted this case on the government’s behalf.
Canton man indicted on drug and firearms chargesRead the Press Release
A Canton man was indicted on federal drug and firearms charges, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio.
Jack D. Wise, 39, was indicted on three counts of distribution of crack cocaine, one count of possession with intent to distribute at least 28 grams of crack cocaine, possession of firearms by a convicted felon, and possession of firearms in furtherance of trafficking of crack cocaine.
Wise was arrested on March 9 by agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), members of the Canton Police Department Narcotics Unit and Stark County Sheriff’s Office.
Wise sold crack cocaine on at least three occasions in 2017. On March 9, he had 28 grams of crack cocaine, two firearms and more than 170 rounds ammunition, despite a previous conviction in Stark County Common Pleas Court for trafficking in LSD, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Aaron P. Howell following an investigation by the ATF, Canton Police Department and the Stark County Sheriff’s Office.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Canadian Man Pleads Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Lawrence Hong, 21, of Canada, pleaded guilty to possession of a firearm by an unlawful user of a controlled substance, before U.S. District Judge Richard J. Arcara. The charge carries a penalty of up to 10 years in prison and a fine of up to $250,000.
Assistant U.S. Attorney Michael P. Felicetta, who is handling the case, stated that on January 21, 2017, the defendant presented himself for inspection as a non-immigrant visitor to the United States from Canada at the Peace Bridge Port of Entry. Hong was traveling alone in a 2016 Volkswagen that had an Ontario registration. The defendant told the Customs and Border Protection (CBP) officer performing the primary inspection that he was going to Buffalo to shop for a few hours at the mall and that he had nothing to declare. Despite his professed planned shopping trip, defendant had no explanation for the presence of his pet dog in the vehicle with him nor could the defendant provide details of what he intended to do with the dog while he was shopping.
Hong was referred for a secondary inspection during which a CBP officer ran a narcotics detection K-9 dog on the defendant’s vehicle. The officer opened the driver's side door of the vehicle and discovered a 9 mm handgun. During a full inspection the vehicle, $1,122.00 in cash. a piece of paper containing Xanax pills, hypodermic needles, and elastic bands were discovered.
Also during the secondary inspection, Hong told an officer that he was going to Ohio to purchase another firearm. The defendant also told the officer that the firearm discovered in his vehicle was previously purchased in the United States and illegally smuggled into Canada. Hong further admitted that he was a heroin addict who was undergoing methadone treatment.
The plea is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
Sentencing is scheduled for August 11, 2017, at 12:30 p.m. before Judge Arcara.
CPA Sentenced to 6 years in Federal Prison for Embezzling $7.2 Million from Alanis Morissette and Other CelebritiesRead the Press Release
LOS ANGELES – A certified public accountant who was the business manager for singer-songwriter Alanis Morissette, as well as other well-known entertainment and sports figures, was sentenced today to six years in federal prison for stealing approximately $7.2 million from his clients.
Jonathan Todd Schwartz, 48, a Westlake Village resident who was living in Agoura Hills at the time of the criminal conduct, was sentenced this evening by United States District Judge Dolly M. Gee.
The sentencing follows Schwartz’s guilty pleas in February to wire fraud and tax fraud charges.
Schwartz was a member of GSO Business Management, LLC, a business management firm based in Sherman Oaks that provides financial guidance to high-net worth clients. Schwartz admitted in court that he stole his clients’ money and falsified account records to conceal the embezzlement.
Judge Gee described Schwartz’s crimes as “insidious” and “audacious,” noting that they caused “grave economic and psychological harm” to Schwartz’s victims, whose lives were “upended by the financial turmoil [he] caused.”
Schwartz admitted that between May 2010 and January 2014, he withdrew approximately $4.8 million belonging to Ms. Morissette without her knowledge or authorization. Schwartz further admitted that he falsely labeled the unauthorized cash withdrawals as “sundry/personal expenses” on the accounting records GSO maintained for Morissette. When confronted about the missing funds, Schwartz stated that the money was an investment in illegal marijuana “grow” businesses, a statement that Schwartz later admitted was false.
In court today, Ms. Morissette told Judge Gee that Schwartz had stolen from her in a “long, drawn-out, calculated and sinister manner.” Ms. Morissette said Schwartz not only took from nearly $5 million in cash from her, but he also stole her dreams for a time when she would be able to focus on her family and the causes that are important to her.
Because of his position as a business manager, Schwartz had access to his clients’ bank accounts so he could pay their bills and obtain cash for them. As part of embezzlement scheme, Schwartz submitted cash-withdrawal requests to banks that were not authorized by his clients, and he either had the cash delivered to him or he picked up the money himself. Schwartz was able to conceal the embezzlements because the bank statements were sent to GSO, and not to the clients. GSO prepared monthly statements for the clients based on a ledger of expenses that GSO bookkeepers maintained, and those statements were false because Schwartz had provided false information to the bookkeepers and caused other pertinent information to be deleted from the monthly statements.
“This defendant abused his clients’ trust by stealing from them, causing significant harm not only to these clients, but the firm which employed him,” said Acting United States Attorney Sandra R. Brown. “Embezzlers think that, by virtue of their positions of trust, they can alter financial records to hide their crimes. This case demonstrates that they are wrong.”
In addition to the nearly $5 million stolen from Ms. Morissette, Schwartz admitted that he embezzled more than $1 million from another client and attempted to conceal the theft by claiming the cash withdrawals were used for renovations to the client’s home. Schwartz further admitted that he embezzled $737,500 from another client and forged that client’s signature on at least two cash receipts.
“Mr. Schwartz used his clients’ funds as a personal ATM machine and, in doing so, financially victimized his clients and colleagues,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Individuals have a right to feel secure when placing their trust, as well as large sums of money, with financial managers, and the FBI will continue to do its part by holding accountable those who violate that trust and break the law.”
Schwartz pleaded guilty to filing a false tax return for the year 2012 and admitted that he failed to report nearly $1 million in income that year. But Schwartz also admitted in court that he did not report any of the approximately $7.2 million he obtained through his embezzlement scheme to the IRS. As a result of the entire scheme, Schwartz acknowledges that he owes the IRS more than $1.7 million in federal income taxes.
“Mr. Schwartz abused the trust placed in him as a CPA and Hollywood business manager in order to line his own pockets,” stated IRS Criminal Investigation Special Agent in Charge R. Damon Rowe. “As today’s sentence shows, no matter what the source of income, all income is taxable – including money you steal from your employer and clients to fund a lavish lifestyle.”
In addition to the six-year prison term, which will be followed by three years of supervised release, Judge Gee ordered Schwartz to pay $8,657,268 in restitution.
This case was investigated by the Federal Bureau of Investigation and IRS Criminal Investigation. GSO Business Management, LLC fully cooperated during the investigation. The GSO clients who were victimized as a result of Schwartz’s conduct have been reimbursed through payments made by insurance carriers and the company itself.
Buffalo Man Pleads Guilty to Selling Heroin Which Resulted in A DeathRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Damian Hicks-Bailey, 22, of Buffalo, NY, pleaded guilty to possession with intent to distribute, and distribution of, heroin, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Michael P. Felicetta, who is handling the case, stated that on July 1, 2015, the West Seneca, NY, Police Department responded to a 911 call from a woman screaming that her son was dead. Police officers responded and found an individual dead inside an apartment at 4175 Seneca Street. Officers recovered an uncapped hypodermic needle (next to the victim), a spoon with a dried white cotton ball/filter (next to the victim), and an empty plastic bag. The spoon and cotton ball later tested positive for heroin and the empty plastic bag contained the defendant’s DNA. The victim’s mother, who lived with her son, told officers she last spoke with her son the night before at approximately 9:30 p.m.
Officers subsequently reviewed a string of text messages on the victim’s cell phone during which he discussed purchasing drugs from an individual. The text messages led police to a 7-11 store on Seneca Street where surveillance images captured the defendant exchanging the drugs with the victim at around 1:30 a.m. on the day of his death.
The plea is the result of investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division and the West Seneca Police Department, under the direction of Chief Daniel Denz.
Sentencing is scheduled for August 12, 2017, at 12:30 p.m. before Judge Arcara.
Brothers sent to prison for selling heroin and fentanyl; sales continued after overdose deathRead the Press Release
Two brothers were each sentenced to six years in prison for conspiring to bring large amounts of heroin and fentanyl to Northeast Ohio from Connecticut, said Acting U.S. Attorney David A. Sierleja and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Abiemelec Vega, 26, of Cleveland, was sentenced to 74 months in prison. Mizraim Vega, 28, of South Euclid, was sentenced to 72 months in prison. Both were previously found guilty of conspiracy to possess with intent to distribute heroin, acetylfentanyl and fentanyl, as well as additional counts of distribution of heroin, fentanyl and acetylfentanyl in 2016.
According to court documents, Abimelec Vega identified himself as a member of the Latin Kings gang and could obtain large shipments of heroin and fentanyl from another Latin King member.
According to court documents, the Vegas sold 80 grams of heroin for $8,000 on Aug. 26, 2016. Mizraim Vega said: “The one thing I’ll tell is to make sure to cut it (dilute the heroin). That stuff…you can’t send it to the street like that, it’s too strong. That stuff could kill someone, bro!”
On Sept. 3, 2016, Abimelec Vega informed a source that he was changing phones because someone had died from heroin or fentanyl he had sold, according to court documents.
This case is being prosecuted by Assistant U.S. Attorney Margaret Sweeney following an investigation by the FBI.
Broken Arrow Woman Sentenced to 60 Months Probation for Money Laundering ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that THERESA JO DAVIS, age 62, of Broken Arrow, Oklahoma, was sentenced to 5 years probation for MONEY LAUNDERING CONSPIRACY, in violation of Title 18, United States Code, Section 1956(h).
The Second Superseding Indictment alleged that beginning in or about December 2013, and continuing until in or about April 2016, the Defendant conspired with others, to conduct financial transactions affecting interstate commerce and involving the proceeds of unlawful activity by depositing large sums of United States Currency knowing that the transactions were designed to conceal the nature and source of the proceeds of unlawful activity and while knowing that the currency involved in the transactions represented proceeds of unlawful activity.
The charge arose from a joint investigation entitled “Home of the Brave”, coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney. The agencies involved in the investigation were the Oklahoma Bureau of Narcotics, the McAlester Police Department, the Tahlequah Police Department, the Muskogee Police Department, the Cherokee County Sheriff’s Department, Districts 13, 18, 25 and 27 District Attorney’s Drug Task Forces and Violent Crime Task Forces, the Muskogee County District Attorney’s Office, the Seminole Nation Lighthorse Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the McAlester and Tulsa Offices of the Drug Enforcement Administration.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Shannon Henson represented the United States.