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1 May 2017
Tax Cheat Sentenced to Prison for 15 MonthsRead the Press Release
MDOC Inmate Timothy Lofton, Jr., executed a tax fraud scheme while incarcerated.
GRAND RAPIDS, MICHIGAN — Acting U.S. Attorney Andrew Birge announced today that Timothy Lofton, Jr., age 34, received a sentence of 15 months in prison for his role in a tax fraud scheme that Lofton led while in jail. The Hon. Robert Jonker also ordered restitution in the amount of $2,319.
In 2011, Lofton was a prisoner in the Michigan Department of Corrections (MDOC). While there, he obtained some of his fellow inmates’ personal identification information, such as name, social security number and date of birth. Lofton shared the identification information with associates in the Benton Harbor, Michigan area. The associates then caused false federal tax returns to be filed based on the inmate identification information, without the inmates’ knowledge or permission. The federal tax returns requested tax refunds for each inmate, despite the fact that the listed income amounts were false and the inmates would never get the refunds. Although the scheme was pervasive and the IRS had initially paid out hundreds of thousands of dollars, the IRS was able to uncover the scheme in time and recover all but about $3,000.
Acting U.S. Attorney Birge pledged his office’s resources to prosecuting tax offenses. “Tax cheats steal from our federal budget and increase the burden on the honest and responsible citizens. Tax cheats will be held accountable and we will do everything we can to get every cent back-- including asking courts to order offenders to repay what we haven’t yet recovered.”
“The IRS aggressively pursues those who hijack others’ identities in order to file false returns”, said IRS-Criminal Investigation Special Agent in Charge Manny Muriel. “As demonstrated in this case, during this tax season, the IRS collaborated with our partners to further prevent, detect and resolve identity theft cases.”
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Tallulah woman sentenced to 8 months in prison for stealing from customer accountsRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that an assistant bank manager in Tallulah was sentenced to eight months in prison for stealing more than $24,000 from customer accounts.
Lois Love, 49, of Tallulah, La., was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of theft or embezzlement by a bank employee or officer. She was also sentenced to five years of supervised release and ordered to pay $24,430.82 restitution. According to the December 20, 2016 guilty plea, Love worked as the assistant branch manager for a Tallulah bank from 1994 until 2014. Love was also the treasurer of the Madison Parish Economic and Development District (MPEDD). Love used her position as assistant branch manager to steal $24,430.82 from individual bank accounts and from the MPEDD from 2011 to 2014.
The FBI conducted the investigation. Assistant U.S. Attorney Mike O’Mara prosecuted the case.
Squirrel Hill Man Pleads Guilty to Defrauding InvestorsRead the Press Release
PITTSBURGH – A resident of Allegheny County, Pennsylvania has pleaded guilty to one count of wire fraud, Acting United States Attorney Soo C. Song announced today.
Golan Barak, 49, of Pittsburgh, PA, pleaded guilty to one count of 18 U.S.C. Section 1343 before the Senior U.S. District Judge Donetta W. Ambrose.
According to the information presented to the court, between 2013 and 2016, Barak falsely induced foreign nationals, mostly of Israeli descent, to invest with him in real estate in Pittsburgh, Pennsylvania, but fraudulently dissipated investors’ money for personal and business expenses, or to buy other properties, or to pay other investors. In particular, Barak admitted to defrauding one investor out of approximately $1,400,000 connected with the purchase of 12 pieces of real estate throughout the Pittsburgh area. The purchase money was used instead to buy other properties, or for Barak’s expenses in his management company, Ergo Management.
Judge Ambrose scheduled sentencing for August 21, 2017. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both at each count. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The FBI conducted the investigation leading to the conviction in this case.
Sampson County Drug Trafficker Sentenced for Cocaine, Methamphetamine, and Marijuana Conspiracy and Money Laundering Conspiracy; Texas Man Sentenced for Money Laundering ConspiracyRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court on April 26, 2017, United States District Judge Terrence W. Boyle sentenced MARTIN ACOSTA, from Sampson County, North Carolina, to 420 months in prison and 5 years of supervised release for conspiracy to distribute and possess with the intent to distribute five kilograms or more of cocaine, five hundred grams or more of methamphetamine, and one hundred kilograms or more of marijuana, as well as conspiracy to launder monetary instruments. ACOSTA pled guilty to these charges on August 1, 2016.
Judge Boyle also sentenced codefendant NOE BARREIRO, from McAllen, Texas, to 84 months in prison for conspiracy to launder monetary instruments. BARREIRO pled guilty to this charge on August 1, 2016.
In 2009, the Drug Enforcement Administration (DEA), Wilmington, North Carolina, identified a drug trafficking organization (DTO) led by brothers Manual Acosta and MARTIN ACOSTA. Investigators determined that the DTO would hide narcotics in shipments of fruits and vegetables, including tomatoes. The DTO would ship the narcotics from Mexico into Texas, and then to various locations in the United States.
Within the Eastern District of North Carolina, the DTO primarily distributed cocaine and marijuana in Sampson County. The DTO also distributed narcotics (including methamphetamine and cocaine) from Texas to Illinois and from Florida to Georgia.
In total, investigators determined that the DTO was responsible for distributing more than 50,000 kilograms of cocaine.
Furthermore, DTO members concealed the proceeds of the criminal enterprise through multiple cash deposits. Drug proceeds were deposited into multiple bank accounts controlled by the defendants at various banks from North Carolina to Georgia. DTO members then made withdrawals of cash in Texas or sent international transfers of money to Mexico. The group was responsible for laundering more than $3,000,000 in DTO proceeds.
The case was investigated by the DEA Atlanta Strike Force, the DEA Ft. Meyers Resident Office, the DEA McAllen Field Office, the DEA Houston Resident Office, the DEA Wilmington Field Office, the Vance County Sheriff’s Office, the Sampson County Sheriff’s Office, the Internal Revenue Service – Criminal Investigations, and the Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF). The federal prosecution was handled by Assistant United States Attorneys Edward D. Gray and Scott Lemmon.
Richmond County Defendants Plead Guilty to Federal Methamphetamine ChargesRead the Press Release
GREENSBORO, N.C. – Four Richmond County defendants pleaded guilty today to methamphetamine-related offenses, announced Sandra J. Hairston, Acting United States Attorney for the Middle District of North Carolina.
Robert Ray Brayboy and Gina Marie Chavis each pleaded guilty to conspiracy to possess pseudoephedrine, a List I chemical, knowing or having reasonable cause to believe it would be used to manufacture methamphetamine, in violation of Title 21, United States Code, Sections 846 and 841(c)(2). Brayboy and Chavis each face up to 20 years imprisonment for this offense, up to a $250,000 fine, a term of supervised release of up to three years, and a $100 special assessment. Sentencing is scheduled for August 2, 2017, at 2:00 p.m. in Greensboro, Courtroom #1.
Andrew Jennings Roscoe, II, pleaded guilty to manufacturing methamphetamine, in violation of Title 21, United States Code, Section 841(a)(1), and manufacturing methamphetamine on premises where children are present or reside, in violation of Title 21, United States Code, Section 860a. Dorothy Ann Joyner also pleaded guilty to manufacturing methamphetamine on premises where children are present or reside, in violation of Title 21, United States Code, Section 860a. Roscoe faces up to 20 years imprisonment for the manufacturing methamphetamine offense, and a consecutive sentence of up to 20 years for the manufacturing methamphetamine offense related to children. Joyner faces up to 20 years for the manufacturing methamphetamine offense related to children. Roscoe is subject to a fine of up to $1 million and Joyner is subject to a fine of up to $250,000. Each is also subject to a term of supervised release of up to three years, and a $100 special assessment as to each count of conviction. Sentencing is scheduled for August 2, 2017, at 9:30 a.m. in Greensboro Courtroom #1.
These cases were jointly investigated by the North Carolina State Bureau of Investigation, the Rockingham Police Department, and the Richmond County Sheriff’s Office.
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Poplar Healthcare to Pay Nearly $900,000 to Resolve A False Claims Act AllegationsRead the Press Release
PROVIDENCE, RI – Acting United States Attorney Stephen G. Dambruch and Philip Coyne, Special Agent-in-Charge of the Boston Office of Inspector General for the Department of Health and Human Services (HHS-OIG), today announced that Poplar Healthcare PLLC, and Poplar Healthcare Management, LLC (“Poplar”), of Memphis, TN, have entered into a civil settlement agreement with the United States, under which Poplar will pay $897,640 to resolve allegations under the federal False Claims Act. The government alleges that Poplar, directly and through a subsidiary known as GI Pathology, promoted and billed the government for diagnostic tests that the government contends were not medically necessary.
An investigation by the HHS-OIG and the United States Attorney’s Office for the District of Rhode Island determined that these tests, known as immunohistochemical mast cell tryptase stains, were the subject of an extensive, multi-year promotional campaign designed to promote the use of the stain, claiming that Poplar could use the test to definitively diagnose a condition known as “mast cell enterocolitis.” The Government alleged that Poplar’s promotion of the test was not consistent with FDA approval requirements, and not supported by adequate scientific evidence.
“Federal funding for diagnostic tests and procedures is predicated on the principle that those tests are ordered because they are medically necessary and in the best interest of patients, and not on other, inappropriate factors.” said Acting U.S. Attorney Stephen G. Dambruch. “We will continue to take aggressive action to address situations where profit, rather than the best interests of patients, drives the decision to conduct and bill for medical tests.”
“Our agency will continue to aggressively investigate health care providers that bill Medicare for unnecessary services just to boost profits,” said Special Agent in Charge Phillip Coyne, U.S. Department of Health and Human Services Office of Inspector General. "And we will not tolerate abuse of the system for personal gain, which can undermine medical decision-making and the public's trust in the health profession."
The investigation that led to the settlement began after Gordon Wang, M.D., a pathologist formerly employed by Poplar, filed a complaint against the company on behalf of the United States in the U.S. District Court for the District of Rhode Island. Under the federal False Claims Act, a private individual who has uncovered fraud against the federal government may file a suit in federal court on behalf of the United States. If the United States is successful in resolving those claims, the individual who filed the complaint may receive a share of the recovery. Dr. Wang will receive $205,841 from the proceeds of the settlement.
The government’s case was handled by Assistant U.S. Attorneys Zachary A. Cunha and Bethany N. Wong, with the assistance of Trial Attorney Michael E. Shaheen of the Department of Justice’s Civil Division.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Ohio drug dealing couple pleads guilty to methamphetamine traffickingRead the Press Release
HUNTINGTON, W.Va. – An Ohio couple pleaded guilty today to federal drug charges, announced United States Attorney Carol Casto. Charley G. Myers, 37, and Tracie M. Reed, 39, both of Proctorville, entered guilty pleas to distributing methamphetamine.
Between February and September of 2016, Myers and Reed travelled on several occasions to Texas and returned to the Tri-State area with at least a kilogram of methamphetamine on each trip. The pair would then sell the methamphetamine to customers in Putnam and Kanawha counties in West Virginia, as well as to customers in the Proctorville area. Laboratory results indicated that the methamphetamine seized from the couple was close to 100% pure.
Myers and Reed each face a minimum of five years and up to 40 years in federal prison when they are sentenced on August 7, 2017.
The investigation was conducted by the Metropolitan Drug Enforcement Network Team and Homeland Security Investigations. Assistant United States Attorney R. Gregory McVey is responsible for these prosecutions. Chief United States District Judge Robert C. Chambers presided over the plea hearings.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Morris Woman Indicted for Fraudulently Taking SSA Survivor Benefits for Husband She KilledRead the Press Release
BIRMINGHAM – A federal grand jury last week indicted a Morris woman for fraudulently claiming nearly $168,000 in Social Security widow’s benefits on the death of a husband she killed, announced Acting U.S. Attorney Robert O. Posey and Social Security Administration, Office of Inspector General, Special Agent in Charge Margaret Moore-Jackson.
A six-count indictment filed in U.S. District Court charges OPAL ELAINE TILLMAN, 71, of Morris, with five counts of wire fraud for causing the SSA to wire benefit payments, which Tillman was not entitled to receive, to her account at Regions Bank in Jefferson County between May 2012 and September 2016. Count Six of the indictment charges Tillman with theft of government property for stealing more than $100,000 from the SSA. The indictment seeks to have Tillman forfeit $167,830 to the government as proceeds of illegal activity.
According to the indictment, Tillman was convicted in Alabama in June 1988 for killing her husband, Walter R. Tillman, on March 1, 1987. The month he died, Opal Tillman applied for Social Security Title II benefits on her husband’s work record. Title II benefits encompass old age, survivor and disability insurance payments. In her application Tillman wrote a statement acknowledging that she understood that “if I am convicted of felonious homicide any social security monies I receive on Mr. Tillman’s Social security record will constitute an overpayment and I will be liable to repay this money,” according to the indictment. She then requested monthly benefits for her and her children to begin as soon as possible.
While Opal Tillman was in prison in November 1988, the SSA notified her of an overpayment of benefits and explained: “A person who has been convicted of the felonious and intentional homicide of a wage earner cannot be entitled to monthly benefits, underpayments, or the lump-sum death payment on the earnings record of that wage earner,” according to the indictment.
Opal Tillman was released from prison into the Jefferson County Community Corrections Program in December 1996.
In October 2009, she applied by telephone to the SSA for widow’s benefits on the work record of Walter Roderick Tillman, according to the indictment. Opal Tillman provided her deceased husband’s Social Security number, dates of birth and death, and verification of their marriage for the application, the indictment charges.
Opal Tillman began receiving benefits Nov. 9, 2009, on the work record of the man she killed, according to the indictment. The monthly benefits continued until Sept. 14, 2016.
The maximum penalty for wire fraud is 20 years in prison and a $250,000 fine. The maximum penalty for theft of government property is 10 years in prison and a $250,000 fine.
The SSA-OIG investigated the case, which Assistant U.S. Attorney Tamarra Matthews Johnson is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Modesto Man Pleads Guilty to Assaulting Fresno Social Security GuardRead the Press Release
FRESNO, Calif. — Matthew Faron Blair, 33, of Modesto, pleaded guilty today to forcibly assaulting a federal contract security guard assigned to protect the Social Security Administration office in downtown Fresno, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on October 14, 2014, Blair went to the Social Security Administration office in Fresno to attempt to collect Supplemental Security Income (SSI) benefits. When advised that his benefits had stopped but could be renewed by completing additional paperwork, Blair became agitated and a security guard was called to escort him out of the office. As he was being escorted out of the office, Blair physically assaulted the guard. As a result of the assault, the guard suffered injury to the head and mouth, which required medical treatment.
This case is the product of an investigation by the Federal Protective Services with assistance from the Social Security Administration, Office of the Inspector General; the California Department of Corrections and Rehabilitation, Division of Adult Parole Operations; and the Stockton Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Blair is scheduled for sentencing before Chief U.S. District Judge Lawrence J. O’Neill on June 5, 2017. Blair faces a maximum sentence of 20 years in prison, a $250,000 fine, and restitution. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Misdemeanor Immigration Prosecutions – April 2017Read the Press Release
Mexican Citizen Sentenced For Illegal Entry into United States
Luis Alejandro Lopez-Lopez, age 35, a citizen of Mexico, was sentenced on April 13, 2017 to time served (6 days in jail) following his guilty plea to illegally entering the United States. Lopez-Lopez admitted that on April 7, 2017, he walked across the border approximately one-quarter mile east of the Champlain Port of Entry, Champlain, New York, along Interstate 87, and he continued south on foot until he was stopped and arrested by Border Patrol Agents.
Italian Citizen Sentenced For Illegal Entry into United States
Salvatore Pisani, age 25, a citizen of Italy, was sentenced on April 27, 2017 to time served (17 days in jail) following his guilty plea to illegally entering the United States. Pisani admitted that on April 10, 2017, he walked across the border approximately five miles west of the Champlain Port of Entry, Champlain, New York, where he was stopped and arrested by Border Patrol Agents.
Jordanian Citizen Sentenced For Illegal Entry into United States
Abdalrahman M. Alnabriss, age 22, of Jordan, was sentenced on April 27, 2017 to 21 days in jail following his guilty plea to illegally entering the United States. Alnabriss admitted that on April 18, 2017, he walked across the border from Dundee, Quebec into Westville, New York, where he was stopped and arrested by Border Patrol Agents.
Man Charged with Fatally Shooting MPD Officer Pleads Guilty to Separate Federal ChargesRead the Press Release
Memphis, TN – A man charged with fatally shootingMemphis Police Department Officer Sean Bolton has pled guilty to federal charges of armed carjacking and being a convicted felon in possession of ammunition. The defendant, Tremaine Wilbourn, 31, has pending state charges for capital murder. Lawrence J. Laurenzi, Acting U.S. Attorney announced the guilty plea today.
On August 1, 2015, Wilbourn, was in the passenger seat of a vehicle parked on a street in East Memphis when Officer Bolton approached the vehicle. Officer Bolton attempted to detain Wilbourn before the defendant pulled a 9mm pistol and shot Bolton several times.
Facts from the hearing outline that shortly after the shooting, Wilbourn used a firearm to carjack a man of a 2002 Honda Accord.
Wilbourn faces a mandatory 25-years of imprisonment and a fine of up to $250,000. There is no parole in the federal system. The defendant is scheduled to be sentenced on July 28, 2017, by U.S. District Judge Sheryl H. Lipman.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives in conjunction with the Memphis Police Department. The U.S. Attorney’s Office is prosecuting this case on the government’s behalf.
Lowell Wholesaler Pleads Guilty to Tobacco Tax FraudRead the Press Release
BOSTON – A Lowell man pleaded guilty today in federal court in Boston in connection with defrauding the Commonwealth of Massachusetts of tobacco excise taxes between 2012 and 2014.
Neetal Shah, 41, pleaded guilty to one count of wire fraud. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for July 21, 2017.
Between approximately April 2012 and November 2014, Shah operated a wholesale business in Lowell that sold tobacco products, including cigars, smoking tobacco and smokeless tobacco (such as snuff and chewing tobacco), as well as other non-tobacco items, to convenience stores, gas stations and other retail businesses.
Under state law, smokeless tobacco wholesalers must file an excise tax form monthly and pay a 210% excise tax on smokeless tobacco brought into Massachusetts. Cigar wholesalers must file an excise tax form quarterly and must pay a 40% excise tax on cigars brought into Massachusetts.
In order to evade tobacco taxes, Shah made regular purchases of loose smoking tobacco and smokeless tobacco for his business from two distributors in Pennsylvania, where these tobacco products are not taxed. Knowing the products were subject to Massachusetts state excise taxes, Shah either drove the tobacco products or had them shipped to Massachusetts, where he resold them through his wholesale business without paying the requisite taxes.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Valuable assistance was also provided by the Massachusetts Department of Revenue. Assistant U.S. Attorney Stephen Heymann of Weinreb’s Economic Crimes Unit is prosecuting the case.
Las Cruces Man Sentenced to Prison for Federal Meth Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Mariano Ponce, Jr., 46, of Las Cruces, N.M., was sentenced today in federal court to 41 months in prison followed by three years of supervised release for his methamphetamine trafficking conviction.
Ponce was arrested on Aug. 2, 2016, on an indictment charging him with methamphetamine trafficking offenses. The indictment charged Ponce with distributing methamphetamine on Sept. 16, 2015, Oct. 14, 2015, and Oct. 23, 2015, and with possessing methamphetamine with intent to distribute on Dec. 7, 2015. According to the indictment, Ponce committed the crimes in Dona Ana County, N.M.
On Nov. 8, 2016, Ponce pled guilty to a felony information charging him with three counts of distributing methamphetamine and one count of possessing methamphetamine with intent to distribute. In entering the guilty plea, Ponce admitted that on Sept. 15, 2015, Oct. 14, 2015 and Oct. 23, 2015, he sold methamphetamine to an undercover law enforcement agent. Ponce further admitted that on Dec. 7, 2015, law enforcement officers discovered a bag of methamphetamine in his vehicle, which he intended to distribute to others.
This case was investigated by the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force and was prosecuted by Assistant U.S. Attorney Clara Cobos of the U.S. Attorney’s Las Cruces Branch Office.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department, the Doña Ana County Sheriff’s Office, the FBI, HSI and the New Mexico State Police. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Keene Man Pleads Guilty to Possessing Child PornographyRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that Andrew Beezub, 33, of Keene, pleaded guilty in the United States District Court to one count of possessing child pornography. A sentencing hearing has been scheduled for August 14, 2017. Beezub was placed in the custody of the U.S. Marshal pending sentencing.
According to documents filed in the case and statements made during the change of plea hearing, the national Center for Missing and Exploited Children became aware in February 2016 that images and videos of suspected child pornography had been uploaded to a Dropbox account. Additional investigation by the Keene Police Department determined that the account was associated with the defendant. A search warrant in April 2016 resulted in the seizure of the defendant’s computer and telephone. A forensic analysis of the telephone established its link to the Dropbox account where videos of child pornography were stored.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The Keene Police Department and the Department of Homeland Security, Homeland Security Investigations, were involved in the investigation of this case. The case is being prosecuted by Assistant United States Attorney Helen White Fitzgibbon and Assistant United States Attorney Don Feith.
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Kansas Chiropractor to Pay $1 Million-plus to Settle False Claim AllegationsRead the Press Release
KANSAS CITY, KAN. – A Kansas City area chiropractor has agreed to pay more than $1 million to settle allegations his offices submitted false claims to Medicare for treating patients with peripheral neuropathy, U.S. Attorney Tom Beall said today.
Brian Schnitta and his clinic, Natural Way Chiropractic Center, P.A., have agreed to pay the U.S. government $1,038,903 to settle allegations that they violated the federal False Claims Act. Schnitta owns and operates chiropractic offices in Overland Park and Lenexa, Kan., and in Lee’s Summit, Mo.
The United States alleged that from July 1, 2011 through May 31, 2013, Schnitta and the clinic claimed they provided treatments for peripheral neuropathy and charged Medicare for several procedures that were not medically necessary or not otherwise covered by the program. The claimed procedures included nerve conduction tests, nerve block injections, and ultrasound needle guidance. Peripheral neuropathy affects nerves in the hands and feet and includes symptoms such loss of sensation and/or a burning sensation.
“Medicare is designed to ensure that this country’s elderly have access to vital health care services,” Beall said. “This office will continue efforts to protect the program and beneficiaries from providers that submit false claims for personal gain.”
“The investigation of Natural Way Chiropractic Center and its owner Brian Schnitta, D.C. reflects the seriousness with which our office views any allegations involving fraud, waste and abuse within our Federal health care programs,” said Special Agent in Charge Steven Hanson of the Kansas City Regional Office of Investigations for the Department of Health and Human Services.”
During the investigation, Medicare suspended payments to the clinic for the suspect services. Under the terms of the settlement, Schnitta and Natural agreed to forego those payments and to make additional payments to the government.
According to the agreement, Schnitta and Natural Way deny any wrongdoing.
The U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG) and the United States Attorney’s Office for the District of Kansas investigated. Assistant United States Attorney Jon Fleenor represented the government.
KC Woman Sentenced for Marriage FraudRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman was sentenced in federal court today for her role in a marriage fraud conspiracy.
Traci R. Porter, 44, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner to two years in federal prison without parole.
On Jan. 19, 2017, Porter pleaded guilty to participating in a conspiracy to assist African nationals in circumventing immigration laws by arranging fraudulent marriages. Co-defendants Delmar Dixon, 49, Kakeland Barnes, 37, Shakeisha Harrison, 37, Stephanie Harris, 22, and Tierra Ofield, 24, all of Kansas City, Mo., also have pleaded guilty to their roles in the marriage fraud conspiracy and await sentencing. In addition to the conspiracy, Dixon pleaded guilty to falsely swearing in an immigration matter.
Dixon, the leader of the conspiracy, admitted that he arranged 30 to 40 fraudulent marriages, including his own. Dixon charged the African nationals $1,000 upfront for his services, which included providing them U.S. citizen spouses. The African nationals were additionally required to pay $500 to the spouse at the time of the wedding, and an additional $500 immediately after completion of the wedding. They were required to pay their spouses $250 each month after the weddings until the immigration process was complete. The African nationals were coached by Dixon on how to make their marriages appear legitimate.
Porter, who participated in the conspiracy for eight years, admitted that she was involved in the marriage fraud scheme through her own marriage and her involvement in other fraudulent marriages. In June 2008, Porter married a Kenyan national who had entered the United States as a B2 visitor. He was granted conditional lawful permanent resident status; Porter also filed petitions for an alien relative for her step-daughter and step-son. However, the U.S. Embassy in Nairobi denied the children immigrant visas because Porter and her spouse failed to establish they had a bona fide ongoing marriage, and there was a suspicion (later confirmed) that he was not legally divorced from a prior marriage. To remedy this, Porter filed for divorce and her spouse divorced his wife in Kenya, then they remarried and he was granted permanent resident status.
Porter also advised others in the conspiracy, including an undercover federal agent whom she believed to be a foreign national.
This case is being prosecuted by Assistant U.S. Attorney Kim Moore. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and U.S. Citizenship and Immigration Services, Fraud Detection and National Security.
Jamestown Brothers Indicted on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a three count indictment charging Matthew S. Jones, 30, and Beau K.C. Jones, 32, both of Jamestown, NY, with narcotics conspiracy, possession with intent to distribute more than 50 grams of methamphetamine, and maintaining a drug-involved premises. The charges carry a minimum penalty of 10 years in prison and a fine of $10,000,000.
Assistant U.S. Attorney Laura Higgins, who is handling the case, stated that according to the indictment, the defendants, who are brothers, were arrested on December 1, 2016, after a shipment of more than 360 grams of methamphetamine was delivered, via the U.S. mail, to Beau K.C. Jones’ residence at 70 Colfax in Jamestown. Shortly after the delivery, Beau K.C. Jones was arrested during a car stop by police and the parcel containing the methamphetamine was discovered in the backseat of his vehicle. Matthew S. Jones was arrested later that day during a separate car stop. A safe was found in the trunk of his car containing an additional quantity of approximately 80 grams of methamphetamine.
The defendants were arraigned this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder and are being held without bail.
The indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division; and the Jamestown Police Department, under the direction of Chief Harry Snellings.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Indictments Unsealed Against Arapahoe Man and Tennessee Man Charging Felon in Possession of a Firearm and Misprision of FelonyRead the Press Release
Acting United States Attorney Robert C. Stuart announced that an indictment has been unsealed charging Anthony Todd Weverka, age 54 of Arapahoe, Nebraska, with Misprision of Felony. The charge alleges Weverka knew of the existence of felony offenses, specifically Solicitation to Commit a Crime of Violence and Attempted Kidnapping, and did not disclose them to authorities, and concealed those offenses through affirmative acts. The charge carries a possible penalty of up 3 years imprisonment, a $250,000 fine, or both. Weverka was taken into custody by agents of the Federal Bureau of Investigation on Monday, May 1, 2017, in Arapahoe. His initial appearance before Magistrate Judge Cheryl Zwart is scheduled for May 2, 2017, at 2:00 p.m. at the federal courthouse in Lincoln, Nebraska.
According to the indictment, Weverka served as the President of the Arapahoe Airport Board. In that capacity, he met an individual, referred to in the indictment as “M.P.”, who flew a plane to the airport and asked to spend the night on the premises. The man was a fugitive from justice after having failed to appear for trial on charges of being a felon in possession of a firearm in Tipton County, Tennessee. The indictment also alleges the man represented himself to be an ambassador and associate chief justice of the Chilcotin Nation in British Columbia, Canada. The man was arrested at the airport by federal, state and local law enforcement authorities.
Following his arrest, M.P. was transported to the Furnas County Jail in Beaver City, Nebraska, where he was held pending extradition to the State of Tennessee. The indictment alleges that another individual, referred to as “S.H.” in the indictment, and holding herself out as the Chief Justice of the Universal Supreme Court of the Tshilhqot’in Nation, (USCTN), a self-proclaimed body purporting to represent the “country” of Chilcotin, issued orders demanding the release of M.P.. When her court “orders” were ignored, the indictment alleges she contacted a bounty hunter in New Orleans, Louisiana, and offered to pay to have the bounty hunter break M.P. out of jail, arrest the Sheriff of Furnas County and the presiding Judge in Tipton County, Tennessee, and transport all of them to Canada where the Sheriff and Judge would face purported criminal charges.
The indictment alleges Weverka learned of the plot to take the Sheriff of Furnas County into custody and did not immediately disclose the same to law enforcement authorities. It further alleges Weverka spoke repeatedly with the woman in Canada holding herself out as the Chief Justice of the USCTN and, further, that he supplied the home address of the Sheriff to her. After learning of the plot, it is alleged Weverka warned the Sheriff that his life might be in danger but did not disclose his full knowledge of the planned abduction. The indictment alleges Weverka committed the crime of Misprision of Felony by concealing the crime through false statements, omissions of material facts and continuing to provide assistance to those whom he believed were involved in the plot.
In a separate indictment, Michael Wayne Parsons, age 55 of Arlington, Tennessee, is charged with being a felon in possession of a firearm. Specifically, it alleges Parsons, after conviction of the felony offense of aggravated assault on November 23, 2009, in the Circuit Court of Tipton County, Tennessee, was located in Nebraska on January 11, 2017, while in possession of a Rock River 5.56 LAR-15 assault rifle and 637 rounds of ammunition. The charge carries a possible penalty of up to 10 years’ imprisonment, a $250,000 fine or both. Parsons is currently in custody in the State of Tennessee awaiting trial of other charges.
This matter was investigated by the Federal Bureau of Investigation, the Furnas County Sheriff’s Office, the United States Postal Inspection Service, the Nebraska State Patrol and the Royal Canadian Mounted Police.
Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
Import Merchandising Concepts L.P. and Two Individuals Agree to Pay $275,000 to Settle False Claims Act Liability for Evading Customs DutiesRead the Press Release
The Department of Justice announced today that Import Merchandising Concepts L.P. (IMC) and two individuals, Glen Michaels and Alan Lewis, have agreed to pay $275,000 to resolve allegations that the company improperly evaded customs duties on imports of wooden bedroom furniture from the People’s Republic of China (PRC), in violation of the False Claims Act. IMC imports, among other things, bedroom furniture that is sold for use in university student housing. The company is headquartered in Addington, Texas. Glen Michaels is an IMC executive, and Alan Lewis was an IMC agent.
“Those who import and sell foreign-made goods in the United States must comply with the law, including laws intended to protect domestic companies and American workers from unfair foreign competition,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “This settlement reflects the Department of Justice’s commitment to pursue those who seek to evade import duties owed on goods manufactured abroad thereby gaining an unfair advantage in U.S. markets.”
The settlement announced today resolves allegations that IMC, led by Glen Michaels and Alan Lewis, evaded antidumping duties on wooden bedroom furniture imported from the PRC between 2009 and 2014, by misclassifying the furniture as non-bedroom furniture on its official import documents. Antidumping duties protect against foreign companies “dumping” products on the U.S. market at prices below cost. The U.S. Department of Commerce assesses and U.S. Customs and Border Protection (CBP) collects these duties to protect U.S. businesses and level the playing field for domestic products. At the time of the imports alleged in this case, wooden bedroom furniture from the PRC was subject to a 216 percent antidumping duty; non-bedroom furniture was not subject to any antidumping duties.
The investigation was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Western District of Texas and CBP.
The claims resolved by this settlement are allegations only; there has been no determination of liability.
Huntington man pleads guilty to federal heroin conspiracyRead the Press Release
HUNTINGTON, W.Va. – A Huntington man involved with others in distributing heroin in 2016 pleaded guilty today to a federal drug charge, announced United States Attorney Carol Casto. Philip Reed Starkey, 48, entered his guilty plea to conspiracy to distribute heroin.
From the summer of 2016 to September of 2016, Starkey participated with Tonya Lynn Thompson and others in a conspiracy to distribute heroin in the Huntington area. During this time period, Starkey and Thompson received heroin on consignment. Starkey and Thompson would then distribute the drugs and return the proceeds back to the heroin source.
On September 5, 2016, a deputy with the Cabell County Sheriff’s Department seized $6,407 in cash from Starkey and Thompson during a traffic stop on U.S. Route 60 in Huntington after agents received information they would be delivering the money that day. Starkey and Thompson admitted that the money was proceeds from drug trafficking and that they were delivering the cash back to the heroin source. Starkey further admitted that he and Thompson were responsible for distributing up to 400 grams of heroin during the conspiracy.
Starkey faces up to 20 years in federal prison when he is sentenced on August 7, 2017. Thompson previously pleaded guilty to conspiracy to distribute heroin and faces up to 20 years in federal prison when she is sentenced, also on August 7, 2017.
The Huntington FBI Drug Task Force and the Cabell County Sheriff’s Department conducted the investigation. Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
This prosecution is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Highlands County Residents Sentenced to Prison for Tax Refund Fraud ConspiracyRead the Press Release
On April 27, 2017, Charlton Tierry Blain, 30, and Clifford Raoul Blain, 29, both of Highlands County, Florida, were sentenced to federal prison for participating in a conspiracy to defraud the Treasury Department through the filing of fraudulent federal income tax returns; conspiracy to commit access device fraud; and unlawful transfer, possession or use of a means of identification.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
According to the court record, between January of 2012 and December of 2013, defendants Charlton and Clifford Blain conspired to unjustly enrich themselves by using unlawfully obtained personally identifiable information to file false and fraudulent income tax returns. The fraudulently obtained tax refunds were then deposited into bank accounts controlled by the defendants, and the illicit proceeds were withdrawn from those accounts. In total, 679 fraudulent tax returns were filed, claiming $986,978.00 in total refunds. Based upon these fraudulent filings, the IRS issued approximately $560,000 in refunds.
United States District Judge Donald M. Middlebrooks sentenced the defendants. Clifford R. Blain was sentenced to sixty months’ imprisonment, to be followed by three years of supervised release, and was ordered to pay $124,712 in restitution. Charlton T. Blain was sentenced to forty-eight months’ imprisonment, to be followed by three years of supervised release, and was ordered to pay $520,094 restitution.
Mr. Greenberg commended the investigative efforts of the IRS-CI. The case was prosecuted by Assistant U.S. Attorneys Daniel E. Funk and Adam C. McMichael.
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.
Haverhill, Massachusetts Man Charged with Making and Distributing Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Michael McCann, 30, of Haverhill, Massachusetts and formerly of Ilion, New York, was charged in Federal Court in Syracuse with one count of Sexual Exploitation of a Minor, a federal felony offense, announced United States Attorney Richard S. Hartunian, Federal Bureau of Investigation (FBI) Special Agent in Charge Vadim Thomas of the FBI Albany Field Office, and New York State Police Superintendent George P. Beach, II.
McCann was arrested on Monday April 24, 2017 in Haverhill, Massachusetts and made his initial appearance in Federal Court in Boston, Massachusetts the following day. He was remanded to custody without bail, pending his appearance in the Northern District of New York at a date yet to be determined. The filed criminal complaint alleges on April 16, 2017 in Herkimer County, New York, the defendant took photos of a child less than five years of age engaging in sexually explicit conduct with him, for the purpose of distribution. The criminal complaint also alleges that the defendant sent these images via the internet to an undercover FBI Task Force Officer in Little Rock, Arkansas on April 18, 2017.
The charge filed against Michael McCann carries a minimum sentence of 15 years and a maximum sentence of 30 years in prison, a fine of up to $250,000, and a term of supervised release of at least five years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charge in the complaint is merely an accusation. The defendant is presumed innocent until proven guilty.
Anyone whose children may have had contact with McCann is asked to contact the New York State Police BCI in Herkimer, NY at (315) 866-7275 or the FBI Lowell MA Resident Agency at (978) 454-6972. All information will be kept confidential.
This case is being investigated by the FBI Syracuse Mid-State Child Exploitation Task Force, a federal task force that investigates cases involving the sexual exploitation of children. The task force consists of FBI Agents and New York State Police Investigators. This investigation was conducted with the assistance of the FBI Little Rock, Arkansas Field Office, the FBI Lowell, Massachusetts Resident Agency, the Herkimer County District Attorney’s Office, the Herkimer County Child Advocacy Center, Herkimer County Child Protective Services, the Village of Ilion, NY Police Department and the Haverhill, Massachusetts Police Department and is being prosecuted by Assistant U.S. Attorneys Lisa Fletcher and Carina Schoenberger.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Hartford Man Sentenced to 12 Years in Prison for Distributing Heroin, Shooting IncidentsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on April 28, 2017, GABRIEL RODRIGUEZ, 29, of Hartford, was sentenced by U.S. District Judge Jeffrey Alker Meyer in New Haven to 144 months of imprisonment, followed by three years of supervised release, for distributing heroin and committing violent robberies.
According to court documents and statements made in court, on January 31, 2016, Hartford Police officers encountered RODRIGUEZ after he was involved in a motor vehicle accident at the intersection of Main Street and Albany Avenue. RODRIGUEZ was arrested after a search of his vehicle revealed approximately 1,300 dose bags of heroin and a .40 caliber pistol.
Subsequent forensic testing of the seized firearm connected it to shell casings that were found after shooting incidents on Park Street in Hartford on January 17, 2016, and on Whitmore Street in Hartford on October 22, 2015.
In relation to the October 22 incident, a shooting victim explained that he was parked in his car on Whitmore Street and had been talking to a mechanic about performing repairs on his vehicle. After the mechanic walked from the victim’s car, an assailant, who was subsequently identified as RODRIGUEZ, approached the driver’s side of the car and demanded money. When the victim did not comply, RODRIGUEZ shot him in the thigh and then took approximately $300 from the victim.
The Park Street shooting on January 17, 2016, also involved a victim who was shot in the leg and the theft of approximately $300.
RODRIGUEZ has been detained since his arrest on January 31, 2016. On December 19, 2016, he pleaded guilty to one count of possession with intent to distribute heroin, and one count of interference with commerce by robbery, threats and violence
RODRIGUEZ’s criminal history includes multiple felony convictions.
This matter was investigated by the Hartford Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.
The case was prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
Georgina J. Camacho Sentenced to Prison for Financial Institution FraudRead the Press Release
Today, SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant GEORGINA J. CAMACHO, age 30, was sentenced in District Court to a 12-month term of imprisonment, to be followed by four years of supervised release. She was also ordered to pay a mandatory $200 assessment fee, restitution in the amount of $26,237.43 and 50 hours of community service.
On June 20, 2016, Defendant CAMACHO waived Indictment and entered a plea of guilty to an Information charging her with two counts of Financial Institution Fraud, in violation of 18 U.S.C. § 1344. The investigation revealed that CAMACHO defrauded Navy Federal Credit Union (NFCU), the Navy Exchange Services Command (NEX), and the Army and Air Force and Exchange Services (AAFES) by writing checks drawn from her NFCU account which had insufficient funds and was closed. From May 27, 2015 to June 6, 2015, CAMACHO wrote 39 checks, made them payable to and negotiated them at the NEX and AAFES, in order to obtain merchandise from them. The NEX and AAFES incurred losses of $16,537.98 and $9,699.45, respectively.
The case was investigated by agents of the U.S. Naval Criminal Investigative Service, and the 36th Security Forces Squadron, Andersen Air Force Base. The case was prosecuted by Marivic P. David, Assistant United States Attorney for the District of Guam.
Former Police Officer, FOP President Pleads Guilty to FraudRead the Press Release
PROVIDENCE – Christopher Hayes, 49, of Middletown, R.I., a former Newport, R.I., Police Department Sergeant and former President of the Fraternal Order of Police (FOP), Newport Lodge No. 8, today pleaded guilty in federal in Providence to an information charging him with wire fraud.
Appearing before U.S. District Court Chief Judge William E. Smith, Hayes admitted to the court that between August 2009 and December 2014, he used an FOP debit card to pay for his own personal expenses; wrote checks payable to himself from the FOP bank account; withdrew cash from the FOP bank account for personal use; and made online payments to his personal credit card from the FOP bank account.
An investigation by the United States Attorney’s Office, U.S. Department of Labor – Office of Inspector General and Office of Labor Management Standards, and the Rhode Island State Police determined that Hayes fraudulently converted approximately $71,523 in FOP funds for his own personal use.
Christopher Hayes is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on July 21, 2017.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Former Boston Police Officer Charged in Connection with Straw Purchases of FirearmsRead the Press Release
BOSTON – A former Boston Police Officer was arrested today and charged in connection with illegally purchasing two firearms on behalf of acquaintances.
Adarbaad Karani, 37, of West Roxbury, was charged in an indictment unsealed today with two counts of making false statement during the purchase of firearms and two counts of making a false statement in a record. Karani was released on conditions following an initial appearance before U.S. District Court Magistrate Judge Judith G. Dein. In November 2016, Karani resigned from the Boston Police Department.
According to the Indictment, in November 2014 and September 2015, Karani acted as the “straw purchaser” of two firearms, a Glock, model 27, .40 caliber pistol and a Glock, model 30S, .45 caliber pistol, by purchasing them on behalf of acquaintances while falsely claiming the guns were for his official police use and not for resale. One of the weapons, however, was found in possession of Desmond Crawford, an alleged member of the Columbia Point Dawgs, at the time of his arrest in November 2015. Karani allegedly used his police identification to acquire the weapons, which may not be purchased by civilians, and certified on federal forms that the guns were for official police use. Straw purchases interfere with firearm regulation and recordkeeping, and federal law makes it a crime to knowingly make false statements to a firearms dealer in connection with the sale of a firearm.
The charging statutes each provide for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner William B. Evans, made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Weinreb’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the Indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Florida Man Sentenced to Prison for Engaging in a Child Exploitation EnterpriseRead the Press Release
The creator and lead administrator of Playpen, a highly sophisticated website dedicated to the sexual abuse of children which operated on the Tor anonymity network, was sentenced today for his role in this global child exploitation enterprise.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina; Assistant Director Stephen Richardson of the FBI’s Criminal Investigative Division; Special Agent in Charge John A. Strong of the FBI’s Charlotte, North Carolina, Division; Special Agent in Charge Harold H. Shaw of the FBI’s Boston Division; and Former Special Agent in Charge Paul Wysopal of the FBI’s Tampa, Florida, Division made the announcement.
Steven W. Chase, 58, of Naples, Florida, was sentenced to 30 years in prison, along with a lifetime term of supervised release, and was ordered to forfeit his residence in Naples by U.S. District Judge Richard L. Voorhees of the Western District of North Carolina. On Sept. 16, 2016, a federal jury found Chase guilty of one count of engaging in a child exploitation enterprise, one count of advertising child pornography, three counts of transportation of child pornography and one count of possession of child pornography. The jury also returned a special verdict determining that Chase should be ordered to forfeit all property derived from, involved in, or traceable to his criminal activities, to include his Naples residence.
“Child predators use online forums on anonymous networks to abuse and exploit children, preying on the inexperienced and vulnerable in society. This pervasive and global problem demands an aggressive, technology-driven response,” said Acting Assistant Attorney General Blanco. “The sentencing of the creator of the Playpen forum – along with the identification, apprehension and prosecution of forum members around the country – sends a message that online predators will be caught and prosecuted. While identifying and apprehending these criminals can be challenging, it is not impossible, and together with our domestic and foreign partners we will use every legal authority and technical tool we have to root out these predators and protect children from harm.”
“Chase was the mastermind and gatekeeper of Playpen, a hidden, members-only Internet platform and a safe-haven for those looking to view and trade child pornography without detection. The depiction of the horrendous sexual exploitation of innocent and vulnerable children is a crime my office takes very seriously,” said U.S. Attorney Westmoreland Rose. “Today’s sentence delivers a clear message that the dark web is not a safe place for those looking to possess, receive and share child pornography: this type of criminal activity will land you in jail for a long time.”
“The abuse of an innocent child is among the most unconscionable offenses,” said Assistant Director Richardson. “When multiple people conspire to develop and promote a malicious website to sexually assault and exploit children, the FBI furthers its resolve to find these perpetrators. As I have said before and as today’s sentencing proves, the FBI will stop at nothing to deliver justice for these innocent victims. We owe a debt of gratitude to the men and women of the FBI and our international partners for their dedication and hard work on this case.”
Evidence at trial established that beginning in August 2014, Chase created the Playpen website as a Tor hidden service, which only permitted individuals operating on the Tor anonymity network to access the site. Evidence at trial further established that Chase served as lead administrator of Playpen, through which he and more than 150,000 other members authored and viewed tens of thousands of postings involving the sexual abuse of children. Images and videos shared through the website were highly categorized towards victim age and gender, as well as the type of sexual activity, according to trial evidence. Testimony at trial also established that in addition to use of the Tor anonymity network, website members employed other advanced technological means in order to thwart law enforcement’s efforts, including elaborate file encryption.
As lead administrator of the website, trial evidence demonstrated that Chase: chose the name of the website; selected and made payments to the website hosting company; regularly updated the website with new features and security fixes; promoted several members of the website to Administrator and Moderator status to assist with the administration of the criminal enterprise; and spent hundreds of hours logged in to the website – personally authoring hundreds of postings.
Chase was arrested following a court-authorized search of his home on Feb. 19, 2015. Forensic examination of a computer and devices seized pursuant to the search revealed that he was in possession of thousands of images depicting the sexual abuse of children as young as infants and toddlers.
Chase’s co-defendants Michael Fluckiger, 46, of Portland, Indiana, and David Lynn Browning, 47, of Wooton, Kentucky, the co-administrator and global moderator of the website, respectively, pleaded guilty in December 2015 to engaging in a child exploitation enterprise for their roles in helping Chase run the website. On Jan. 12, 2017, Fluckiger was sentenced to 240 months in prison for engaging in a child exploitation enterprise, along with lifetime supervised release. On Feb. 7, 2017, Browning was sentenced to 240 months in prison for engaging in a child exploitation enterprise, along with a lifetime term of supervised release.
Following Chase’s arrest, the FBI obtained approval from a federal court to deploy a Network Investigative Technique (NIT) to pierce through the anonymity provided by the Tor network and obtain IP address and other basic, computer-related information to help locate and identify the users of the website Chase created. The FBI subsequently issued investigative leads to offices in every U.S. State. As a result of the ongoing investigation, at least 350 U.S.-based individuals have been arrested, 25 producers of child pornography have been prosecuted, 51 alleged hands-on abusers have been prosecuted and 55 American children who were subjected to sexual abuse have been successfully identified or rescued.
International lead information was coordinated through EUROPOL’s European Cybercrime Center (EC3), who received and disseminated information through its network of member states, and the FBI Legal Attaché network. The ongoing international investigation has yielded at least 520 arrests and the successful identification and rescue of at least 186 children who were subjected to sexual abuse.
The FBI’s Violent Crimes Against Children Section, Major Case Coordination Unit and Digital Analysis and Research Center investigated the case with assistance from the FBI’s Charlotte, Tampa and Boston Field Offices. Trial Attorney Reginald E. Jones of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Cortney Randall of the Western District of North Carolina prosecuted 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.
Farmington Man Sentenced to Prison for Violating Federal Drug Trafficking and Firearms LawsRead the Press Release
ALBUQUERQUE – David Kingsbeck 43, of Farmington, N.M., was sentenced today in federal court in Albuquerque, N.M., to 37 months in prison for his conviction on drug trafficking and firearms charges. He will be on supervised release for threeyears after completing his prison sentence.
Kingsbeck was arrested on March 4, 2016, on a criminal complaint charging him with trafficking methamphetamine in San Juan County, N.M. According to the complaint, Kingsbeck sold approximately 57 grams of methamphetamine to an undercover law enforcement agent on Feb. 16, 2016.
Kingsbeck and co-defendant Rupesh Bhakta, 38, also of Farmington, were subsequently indicted on March 23, 2016. Kingsbeck was charged individually with being a felon in possession of a firearm on July 1, 2015 and Dec. 30, 2015, and distributing heroin on Dec. 30, 2015. Bhakta and Kingsbeck were charged jointly with conspiracy and distribution of methamphetamine on Feb. 16, 2016. According to the indictment, the two men committed the crimes in San Juan County. Kingsbeck was prohibited from possessing firearms and ammunition because of his prior felony convictions for criminal conspiracy, theft and escape.
On Dec. 19, 2016, Kingsbeck pled guilty to distributing heroin and being a felon in possession of a firearm and ammunition. In entering the guilty plea Kingsbeck admitted that on Dec. 29, 2015, he sold approximately 12.8 grams of heroin and a firearm and ammunition to an undercover law enforcement agent. Kingsbeck further admitted that he was prohibited from possessing firearms or ammunition on Dec. 29, 2015, because of his prior felony convictions.
On Dec. 8, 2016, Bhakta pled guilty to an information charging him with distribution of methamphetamine. In entering the guilty plea, Bhakta admitted that on Feb. 16, 2016, he distributed methamphetamine to an undercover law enforcement agent. Under the terms of his plea agreement, Bhakta will be sentenced within the range of 24 to 60 months in federal prison. A sentencing hearing is currently scheduled for May 11, 2017.
This case was investigated by the Albuquerque office of the DEA and the New Mexico State Police. Assistant U.S. Attorney Rumaldo R. Armijo is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Detroit man sentenced to federal prison for heroin chargeRead the Press Release
HUNTINGTON, W.Va. – A Detroit man involved in heroin trafficking in 2015 and 2016 in the Huntington area was sentenced today to two years and three months in federal prison, announced United States Attorney Carol Casto. Jimmy Cheatham, also known as “Shoe,” 24, previously pleaded guilty to possession with intent to distribute heroin.
On August 16, 2016, Cheatham was arrested on an active federal warrant for conspiracy to distribute heroin. In a search incident to arrest, agents with the Huntington FBI Drug Task Force located approximately six grams of heroin concealed on his person. Agents also located approximately $1,800 in cash, which represented the proceeds from heroin sales. The arrest stemmed from an investigation of Cheatham and others which began in 2015.
Cheatham admitted that on August 5, 2015, he sold over 16 grams of heroin to a confidential informant working for the Task Force. The drug deal took place at 1826 Old 16th Street Road, where the informant exchanged $2,000 for the heroin. In a July 9, 2015, search of 126 Olive Street in Huntington, Task Force agents located Cheatham and two of his co-conspirators inside the residence. Agents recovered $6,314 in cash, along with an AR-15 style firearm concealed in the attic.
The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution. Chief United States District Judge Robert C. Chambers imposed the sentence.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Des Moines County Man Pleads Guilty to Felon in Possession of a Firearm ChargeRead the Press Release
DAVENPORT, IA – On May 1, 2017, Daniel James Lusk, age 26, from Batavia, Iowa, pleaded guilty to a charge of felon in possession of a firearm, announced United States Attorney Kevin E. VanderSchel. This charge carries a maximum penalty of not more than ten years in prison, up to a $250,000 fine, a term of supervised release of up to three years, and a $100 assessment to the Crime Victims’ Fund. Sentencing is scheduled for September 21, 2017, before Chief United States District Court Judge John A. Jarvey.
On October 24, 2016, Lusk was found hiding under a pool table in a Des Moines County residence; he was in possession of a .380 caliber pistol and a .44 magnum revolver. Law enforcement officers placed Lusk into custody. Lusk had a prior 2010 state felony conviction for burglary.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Burlington Police Department, and the Des Moines County Sheriff’s Office. The case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Deere Abandons Proposed Acquisition of Precision Planting from MonsantoRead the Press Release
The Department of Justice announced today that Deere & Company and the Monsanto Company terminated Deere’s attempt to purchase Precision Planting LLC from Monsanto. The department filed suit on Aug. 31, 2016, to block the acquisition, alleging that the transaction was a merger-to-monopoly in high-speed precision planting systems, an innovative technology that enables farmers to accurately plant corn, soybeans and other row crops at up to twice the speed of a conventional planter. The case was scheduled for trial in U.S. District Court in Chicago on June 5, 2017.
“The companies’ decision to abandon this transaction is a victory for American farmers and consumers,” said Acting Assistant Attorney General Andrew Finch of the Justice Department’s Antitrust Division. “Had this acquisition gone forward, significant head-to-head competition between Deere and Monsanto’s Precision Planting – competition that has led to lower prices and more innovative products – would have been lost. Agriculture is one of the most important sectors of our economy and the Antitrust Division will remain vigilant to ensure that competition in agriculture markets is not thwarted through illegal transactions.”
The proposed acquisition would have combined the only two significant U.S. providers of high-speed precision planting systems. Planting at higher speeds can be highly valuable to farmers, many of whom have a limited window each year to plant their crops to achieve the highest crop yields. As a result, high-speed precision planting technology is expected to become the industry standard in the coming years.
Deere & Company, a Delaware corporation headquartered in Moline, Illinois, is the largest manufacturer of planting equipment in the United States, including its ExactEmerge high-speed precision planting system.
Precision Planting LLC is a Delaware limited liability company headquartered in Tremont, Illinois. It is a leading innovator in planting equipment, including its SpeedTube high-speed precision planting system. Precision Planting is a subsidiary of Monsanto Company, a Delaware corporation headquartered in St. Louis, Missouri.
Dallas Man Sentenced to 14 Years in Federal Prison for Role in Cocaine Distribution ConspiracyRead the Press Release
DALLAS — Last week, U.S. District Judge Sidney A. Fitzwater sentenced Roger Deundrea Jackson, a/k/a “Boo-Cat” and “Cat,” 40, of Dallas, to 168 months in federal prison, following his guilty plea in November 2015 to two counts of conspiracy to distribute a controlled substance, announced U.S. Attorney John Parker of the Northern District of Texas.
Jackson and twenty additional defendants, mostly from north Texas and Oklahoma, were arrested in May 2015 in a joint operation led by the Dallas Police Department, Dallas County Sheriff’s Office and the Dallas FBI – Violent Gang Safe Streets Task Force.
Of the twenty-one defendants who were indicted, 19 have pleaded guilty and 15 of those have been sentenced. Charges against one defendant were dismissed, and one remains a fugitive.
According to documents filed in the case, on several occasions between January 2013 and May 2015, Jackson possessed with the intent to distribute approximately 188 grams of cocaine and approximately 295 grams of cocaine base in the Dallas area.
The Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorney Phelesa Guy prosecuted.
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Brighton Man Sentenced to Seven Years in Federal Prison for Child Pornography OffensesRead the Press Release
BOSTON – A Brighton man was sentenced Thursday, April 27, 2017, in federal court in Boston for possession and receipt of child pornography.
Vincent C. Anzalone, 44, was sentenced by U.S. District Court Chief Judge Patti B. Saris to eight years in prison and five years of supervised release. In January 2017, Anzalone pleaded guilty to one count of possession and one count of receipt of child pornography.
In October 2015, federal agents executed a search warrant at Anzalone’s residence and found hundreds of images of child pornography on his computer. Anzalone was arrested and later admitted that he downloaded child pornography from the internet three to four times each week, and that he had been downloading child pornography for five or six years. Anzalone also admitted to touching multiple children in a sexualized manner over a span of approximately 16 years, but stated that he had not done so in the past 10 years.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. Assistance was also provided by the Boston Police Department. Assistant U.S. Attorney David G. Tobin of Weinreb’s Major Crimes Unit prosecuted the case.
Big Stone Gap Man Indicted on Fraud ChargesRead the Press Release
Abingdon, VIRGINIA – A Big Stone Gap man was indicted last week by a federal grand jury sitting in the United States District Court for the Western District of Virginia in Abingdon on wire and mail fraud charges, Acting United States Attorney Rick A. Mountcastle announced.
Michael Paul Riebe, 30, of Big Stone Gap, Va., was indicted last week on five counts of wire fraud and one count of mail fraud.
According to the indictment, Riebe's company purchased property located at 18182 U.S. Highway 58 in Castlewood, Virginia, in October 2013, for a price of $470,500. Riebe's company used that property as a funeral home. In November 2013, Riebe obtained insurance coverage on the property for up to $850,000. In October 2014, that insurance was increased to $1,200,000.
In the early morning hours of October 22, 2014, the Russell County Sheriff’s Office received a report that the funeral home located at 18182 U.S. Highway 58 in Castlewood was on fire.
The indictment alleges that Riebe made, via electronic and mail submissions, claims for reimbursement from his insurance provider for personal and business losses as a result of the fire for items that were not actually destroyed in the fire.
The investigation of the case was conducted by the Russell County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Russell County Commonwealth’s Attorney and Special Assistant United States Attorney Brian Patton will prosecute the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Anchorage Man Sentenced to 110 Months in Prison after Jury Convicts Him for Being a Felon in Possesion of a FirearmRead the Press Release
Fairbanks, Alaska – Acting U.S. Attorney Bryan Schroder announced that, on Friday, April 28, 2017, Bobby Dewayne Thompson, II, 43, of Anchorage, was sentenced by U.S. Senior District Judge Ralph R. Beistline to 110 months in prison, followed by three years of supervised release, for being a felon in possession of a firearm.
On Feb. 7, 2017, following a federal trial in Fairbanks, a jury found Thompson guilty of being a felon in possession of a firearm. Thompson has an extensive criminal history including three prior felonies and possessed this firearm in furtherance of a drug trafficking offense.
According to court documents, on March 22, 2016, Thompson was riding as a passenger in a vehicle which was stopped by Alaska State Troopers (AST) in Fairbanks. Thompson gave several false names and dates of birth in order to avoid service of his four outstanding arrest warrants. Under his seat was a loaded, stolen, .38 caliber revolver. Despite having no known employment, Thompson was found with $796.00 cash and 3.16 grams of cocaine. A subsequent search of his phone uncovered further evidence of drug trafficking including receiving a text message with a bank account number from Taming Ting – a drug trafficker who was subsequently indicted federally for trafficking methamphetamine. The entire circumstances of this case show the firearm was not just illegally possessed by Thompson, but was possessed in order to further the distribution of narcotics while in Fairbanks.
As detailed in the sentencing hearing, Thompson has an extensive criminal history dating back 25 years including: 8 assaults, 3 failure to appears, 4 driving while license suspended, 1 misdemeanor drug offense, 1 federal drug offense (sentenced to 10 years in prison), an escape from custody, and 17 petitions to revoke probation.
At the sentencing hearing, Judge Beistline noted the evidence showed the gun was possessed in furtherance of drug activity and the sentence was necessary to protect the public.
Acting U.S. Attorney Schroder commended the AST and the Bureau of Alcohol, Tobacco, and Firearms (ATF) for the investigation leading to the successful prosecution of this case.
Anchorage Man Sentenced to 10 Years for Methamphetamine Importation ConspiracyRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that an Anchorage man has been sentenced in federal court for conspiring to import methamphetamine from California to Alaska. Today, U.S. District Judge Sharon L. Gleason sentenced Alfa Souvandara, 42, of Anchorage, to serve 10 years in prison, following his guilty plea on Feb. 16, 2017.
According to Assistant U.S. Attorney Jonas Walker, Souvandara was the Anchorage connection for a co-conspirator who sent methamphetamine from California in September 2015. Employees of the shipping company noticed the package due to several suspicious characteristics, opened it, found the methamphetamine, and reported it to law enforcement. Later, during the execution of a search warrant, law enforcement found a loaded gun, drug paraphernalia, and cash in Souvandara’s home. Based on data from the United States Sentencing Guideline Commission, the government estimates that the package contained enough methamphetamine for approximately 352,000 typical illegal doses.
At sentencing, Judge Gleason referred to methamphetamine as a “horribly dangerous poison” that Congress has criminalized to protect the public. The co-conspirator’s sentencing is expected to occur later this year.
The Drug Enforcement Administration and the Alaska Department of Public Safety conducted the investigation leading to the successful prosecution of this case.
Albuquerque Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Benjamin Marquez, 42, of Albuquerque, N.M., pled guilty today in federal court to a methamphetamine trafficking charge. Marquez’s plea agreement includes a recommendation of 60 months of imprisonment followed by a period of supervised release to be determined by the court.
Marquez and his co-defendant Richard Lucero, 37, were arrested during an ATF-led investigation that resulted in the filing of 59 federal indictments and a federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. The investigation began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Marquez and Lucero were arrested in Aug. 2016, on a five-count indictment alleging drug trafficking offenses. Marquez was charged individually with distribution of heroin on May 5, 2016, and Marquez and Lucero were charged with conspiring to distribute methamphetamine from May 6, 2016 through June 1, 2016, and distribution of methamphetamine on May 6, 2016, May 18, 2016, and June 1, 2016. According to the indictment, the offenses took place in Bernalillo County.
During today’s proceedings, Marquez pled guilty to distributing methamphetamine, and admitted that on June 1, 2016, he sold approximately 60 grams of methamphetamine to an undercover law enforcement agent. Marquez remains in custody pending a sentencing hearing, which has yet to be scheduled.
To date, 45 of the 104 defendants including Lucero have entered guilty pleas, and 18 have been sentenced. The remaining defendants have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
These cases were investigated by the Albuquerque office of ATF. This case was prosecuted by Assistant U.S. Attorney Eva Fontanez.
29 April 2017
United States Attorney’s Office to Host Weekly Office Hours in Pine RidgeRead the Press Release
The United States Attorney’s Office, District of South Dakota, has announced it will staff an office one day each week in Pine Ridge, South Dakota. This initiative began on April 12, 2017, following an announcement made by U.S. Attorney Randy Seiler.
Referred to as "Walk-In Wednesday", a representative of the U.S. Attorney’s office will be on-site at Pine Ridge each Wednesday between the hours of 9:00 A.M. to 3:00 P.M. The U.S. Attorney decided to start this initiative to allow citizens to more easily communicate with the office concerning crime on the reservation, inquiries about existing cases, or to obtain any information which might be sought by the citizenry.
The office is located within the Bureau of Indian Affairs office, inside the Justice Center for the People in Pine Ridge, located at 1001 Horse Thief Road.
Anyone interested in visiting with a representative of the U.S. Attorney’s Office is encouraged to stop by the office. Appointments are welcome but not necessary. To schedule a meeting, please call the satellite office at 605.867.2931, or the U.S. Attorney’s Rapid City office at 605.342.7822.
South Antelope Woman Sentenced for Assault with a Dangerous WeaponRead the Press Release
United States Attorney Randolph J. Seiler announced that a South Antelope, South Dakota, woman convicted of Assault With a Dangerous Weapon was sentenced on April 18, 2017, by U.S. District Judge Roberto A. Lange.
Aprielle Marie Poitra, age 21, was sentenced to 16 months in prison, followed by 1 year of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Poitra was indicted by a federal grand jury on April 13, 2016. She pled guilty on February 28, 2017.
On the evening of March 18, 2016, Poitra stabbed her boyfriend in the arm with a knife during an argument at their home.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Poitra was immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Man Sentenced for Tampering with a WitnessRead the Press Release
United States Attorney Randolph J. Seiler announced that a Sioux Falls, South Dakota, man convicted of Tampering with a Witness was sentenced on April 25, 2017, by U.S. District Judge Roberto A. Lange.
Diego Lara, age 25, was sentenced to 5 years in custody, followed by 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Lara was indicted by a federal grand jury on November 9, 2016. He pled guilty on February 14, 2017.
The conviction stems from an incident on September 13, 2016, when Lara knowingly attempted to corruptly persuade someone to lie to a Federal Grand Jury regarding an ongoing investigation into a murder.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Jay Miller prosecuted the case.
Lara was immediately turned over to the custody of the U.S. Marshals Service.
Pine Ridge Woman Charged with Assault on a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pine Ridge, South Dakota, woman has been indicted by a federal grand jury for Assault on a Federal Officer.
Tierra Lee Swift Bird, age 21, was indicted on March 21, 2017. Swift Bird appeared before U.S. Magistrate Judge Daneta Wollmann on April 21, 2017, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Swift Bird assaulting a law enforcement officer with the Oglala Sioux Tribe Department of Public Safety while he was engaged in his official duties on October 15, 2016, at Pine Ridge.
The charge is merely an accusation and Swift Bird is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Megan Poppen is prosecuting the case.
Swift Bird was released on bond pending trial. A trial date has been set for June 27, 2017.
Pine Ridge Man Indicted for Assault and BurglaryRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pine Ridge, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, and First Degree Burglary.
Jalen Walking Eagle, age 21, was indicted on April 18, 2017. Walking Eagle appeared before U.S. Magistrate Judge Daneta Wollmann on April 21, 2017, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 25 years’ custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Walking Eagle unlawfully entering an occupied structure on February 12, 2017, and assaulting a male with shod feet. This assault resulted in serious bodily injury to the other male. Walking Eagle then stole personal property items before leaving the scene.
The charges are merely accusations and Walking Eagle is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. U.S. Attorney Megan Poppen is prosecuting the case.
Walking Eagle was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for June 27, 2017.
National Reentry Week 2017Read the Press Release
The Department of Justice designated the week of April 23-30, 2017, as National Reentry Week. National Reentry Week, which held its inaugural event in 2016, is a week designed to highlight the advocacy for formerly incarcerated individuals as they successfully return to and contribute to their communities.
National Reentry Week also seeks to promote a reduction in recidivism through the elimination of barriers to successful reentry as formerly incarcerated individuals compete for jobs, attain stable housing, and seek support for their families.
Leading up to National Reentry Week, the U.S. Attorney’s Office for the District of South Dakota participated in a Reentry Task Force meeting on April 11, 2017, in Rapid City. The Reentry Task Force is made up of local partners who gather to share and discover innovative methods to address the challenges and gaps in service that can impact the success of formerly incarcerated individuals.
Referencing the Federal Bureau of Prisons webpage, in 2016 alone, there were 396 former federal prisoners released back to their South Dakota community after spending time in federal custody. Statistically, 20% of all those released will return to prison within three years of their initial release. Given that, much work still needs to be done.
In addition, you can read about other reentry programs on the U.S. Attorney’s District of South Dakota webpage at https://www.justice.gov/usao-sd.
Mission Men and Mission Woman Charged with Multiple Firearms CountsRead the Press Release
United States Attorney Randolph J. Seiler announced that four men and one woman from Mission, South Dakota, have been indicted by a federal grand jury for Possession of Unregistered Firearm, Possession of a Firearm by a Prohibited Person, and Possession of a Stolen Firearm.
Keith Bordeaux, age 19, Stephanie Bear Heels, age 30, and Kevin Bordeaux, age 18, appeared before U.S. Magistrate Judge Mark A. Moreno on April 10, 2017, and pled not guilty to the Indictment.
Dakota Marshall, a/k/a Dakota Marshall, Sr., age 21, appeared before U.S. Magistrate Judge Mark A. Moreno on March 29, 2017, and pled not guilty to the Indictment.
Angelito Moran, a/k/a Angel Moran, age 20, appeared before U.S. Magistrate Judge Mark A. Moreno on April 21, 2017, and pled not guilty to the Indictment. All five of them were indicted on March 15, 2017.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and up to $400 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on November 11, 2016, Keith Bordeaux and Marshall knowingly received and possessed a Weatherby, model PA-08, 20-gauge shotgun which was less than 18 inches in length. Said shotgun was not registered to them. Bordeaux and Marshall are both prohibited from owning any kind of firearms.
The Indictment also alleges that Keith and Kevin Bordeaux, along with Moran, and Bear Heels, knowingly possessed, received, concealed, stored, bartered, sold, and disposed of stolen firearms and aided and abetted in the commission of the offense. Moran and Bear Heels are also prohibited from owning any kind of firearms.
The charges are merely accusations and all defendants are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
All Defendants were remanded to the custody of the U.S. Marshals Service pending trial, which has been set for June 27, 2017.
Mission Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on April 19, 2017, by U.S. District Judge Roberto A. Lange.
Tyrell Thin Elk, age 35, was sentenced to 21 months in custody, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Thin Elk was indicted by a federal grand jury on October 12, 2016. He pled guilty on March 8, 2017.
The conviction stems from Thin Elk failing to register as a sex offender as required by federal law in August of 2016. Thin Elk had previously been convicted of a sex offense in federal court, which requires him to register as a sex offender for the rest of his life.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Thin Elk was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Found Not Guilty of Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man was acquitted of Assaulting, Opposing, Resisting, and Impeding a Federal Officer as a result of a federal jury trial in Pierre, South Dakota. The trial began April 18, 2017, and concluded on April 19, 2017.
Donovan Siers, a/k/a Donovan Fast Dog, age 52, was indicted by a federal grand jury on September 13, 2016.
The charge stemmed from an alleged incident that occurred in July 2016.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The U.S. Attorney’s Office prosecuted the case.
Mission Man Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Richard Peneaux, age 23, was indicted on April 12, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 17, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about March 23, 2017, Peneaux forcibly assaulted a Rosebud Sioux Tribe law enforcement officer with a dangerous weapon.
The charge is merely an accusation and Peneaux is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Peneaux was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
McLaughlin Man Charged with Aggravated Sexual AbuseRead the Press Release
United States Attorney Randolph J. Seiler announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse.
Frankie Marshall, age 27, was indicted on April 12, 2017. He appeared before U.S. Magistrate Judge William D. Gerdes on April 13, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, up to life of supervised release, $100 to the Federal Crime Victims Fund, and a $5,000 assessment to the domestic trafficking victims’ fund, unless the sentencing court finds the defendant to be indigent. Restitution may also be ordered.
The Indictment alleges that on March 29, 2017, Marshall knowingly caused and attempted to cause a female victim to engage in sexual act, by the use of force.
The charge is merely an accusation and Marshall is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Marshall was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Individual Arrested for Threatening to Bomb El CapitolioRead the Press Release
SAN JUAN, Puerto Rico– Today, United States Magistrate Judge Sivlia Carreño-Coll authorized a criminal complaint against Ivan Zayd Guillama-Rosario, charging him for threatening to damage or destroy a building, to wit the Capitolio, by means of use of an explosive, in violation of Title 18, United States Code, Section 844(e), announced United States Attorney Rosa Emilia Rodríguez-Vélez. The FBI is in charge of the investigation.
According to the information contained in the complaint, the bomb threat was posted on April 28, 2017 on Facebook. The name on the account from which the threat was posted is “Ivan Zayd Guillama Rosario.” The post contained the following text: “¡VAMOS A BOMBARDEAR EL CAPITOLIO Y QUE EN PAZ DESCANSEN NUESTRAS CONCIENCIAS!” Translated from the Spanish language to the English language, the post states: “We are going to bomb the Capitol, and may our consciences rest in peace.”
On April 28, 2017, law enforcement officers located the defendant at his place of employment. Guillama-Rosario confirmed that he is the owner of the Facebook account Ivan Zayd Guillama Rosario and that he posted “!VAMOS A BOMBARDEAR EL CAPITOLIO Y QUE EN PAZ DESCANSEN NUESTRAS CONCIENCAS!” on Facebook on the same day.
“There is a fine line between free speech and incitement to violence. When that line is crossed, speech is no longer protected because it becomes criminal conduct,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “Federal authorities and local law enforcement will closely monitor the protests that will be held on Monday, May 1st. Although we believe that a large majority of the protesters will abide by the law, we will prosecute those who use social media and peaceful demonstrations to threaten, promote violence or incite violent acts.”
Assistant United States Attorney Alexander Alum is in charge of the prosecution of the case. If convicted, Guillama-Rosario faces a maximum term of imprisonment of 10 years, a term of supervised release of up to three years, and a fine of up to $250,000.
Ft. Thompson Man Sentenced to 180 Months for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Ft. Thompson, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on February 27, 2017, by U.S. District Judge Roberto A. Lange.
Merle Seeking Land, age 38, was sentenced to 180 months in custody, followed by 10 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Seeking Land was initially indicted by a federal grand jury on July 21, 2015, and pled guilty on November 28, 2016.
Beginning in November 2014, and continuing through July 21, 2015, Seeking Land knowingly and intentionally conspired with others to distribute more than 500 grams of methamphetamine, a Schedule II Controlled Substance, in South Dakota. Seeking Land admitted to receiving distributable quantities of methamphetamine and distributing it to others within South Dakota. The individuals who provided Seeking Land with methamphetamine knew that he intended to engage in further distribution. Seeking Land agreed that his conduct involved between 1.5 kilograms and 5 kilograms of methamphetamine. Because of Seeking Land’s two prior methamphetamine distribution convictions, one in 2005 and one in 2011, he was considered a career offender and his sentence was increased.
This case was investigated by the Federal Bureau of Investigation and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Seeking Land was immediately turned over to the custody of the U.S. Marshals Service.