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Tuesday 7 March 2017
Alleged Drug Courier from Detroit Arrested on Federal Charge of Attempting to Smuggle Cocaine Through LAXRead the Press Release
LOS ANGELES – A 28-year-old woman arrested early this morning at Los Angeles International Airport has been charged with trying to smuggle at least a kilogram of cocaine to her hometown of Detroit.
Kennsha Mason, 28, was arrested by special agents with the Drug Enforcement Administration after boarding a Spirit Airlines flight. Mason is scheduled to make her first court appearance this afternoon United States District Court.
A criminal complaint filed this morning alleges the narcotics were discovered in Mason’s luggage after she checked in for a flight bound for Baltimore, which was a layover on a trip to Detroit. After seeing something suspicious in one of the bags during an image scan, the Transportation Security Administration inspected the bag, and discovered three individually wrapped items that were vacuum sealed and wrapped with a layer of carbon paper.
Los Angeles Airport Police responded to the scene, located Mason on her Spirit Airlines flight, and escorted her off the airplane. During a subsequent interview, Mason admitted to DEA special agents that she had previously transported drugs from Los Angeles to Detroit on four or five occasions, and that she was paid $3,500 each time she transported narcotics to Detroit. During the interview recounted in the affidavit, Mason stated that she was working for an individual in Detroit who purchased Mason’s airline tickets and directed Mason to a residence in Pasadena, where she obtained the drugs to be delivered to Detroit.
“Our nation’s air travel system is designed to carry people to see loved ones and conduct business – not as a means to smuggle narcotics or other contraband,” said United States Attorney Eileen M. Decker. “We actively work to interdict drug shipments as part of our mission to protect our critical infrastructure. Those who threaten that infrastructure will be subject to vigorous prosecution.”
The complaint charges Mason with possession with the intent to distribute a controlled substance. If convicted, she faces a statutory maximum sentence of 20 years in federal prison.
“The trend of criminal organizations utilizing the Los Angeles International Airport to distribute narcotics nationwide is on the rise,” said DEA Special Agent in Charge Steve Comer. “Every time an illegal substance is smuggled onto a commercial airliner, it presents an unacceptable compromise to passenger safety. We’ll continue to work closely with our law enforcement partners to mitigate these threats and bring the violators to justice.”
Mason is charged in relation to only one of the three packages recovered from her luggage. Authorities are in the process of testing the other two packages to confirm the presence of cocaine. The total gross weight of all three packages was approximately four kilograms, which is more than eight pounds.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The DEA Los Angeles International Airport Narcotics Task Force, an inter-agency task force based at LAX, is conducting this investigation. The Task Force is charged with providing a coordinated law enforcement effort to target airport/airline internal criminal enterprises that use the aviation system to transport large amounts of illicit drugs throughout the United States, and throughout the world.
In addition to the DEA, the Task Force is made up of representatives from the Federal Bureau of Investigation, the Los Angeles Airport Police, the Los Angeles Police Department and the Los Angeles County Sheriff’s Department. The Task Force also works closely with the United States Customs and Border Protection and the Transportation Security Administration.
The case against Mason is being prosecuted by Assistant United States Attorney Reema M. El-Amamy of the Organized Crime Drug Enforcement Task Force.
Albuquerque Man Pleads Guilty to Federal Bank Robbery ChargeRead the Press Release
ALBUQUERQUE – Kenneth Columbus Burwell, 54, of Albuquerque, N.M., pled guilty this morning in federal court to a bank robbery charge. Under the terms of his plea agreement, Burwell will be sentenced to 46 months in prison followed by three years of supervised release.
Burwell was arrested in Nov. 2016, on a criminal complaint charging him with robbing the US Bank branch located at 3000 Central Ave. SE in Albuquerque on Oct. 14, 2015. Burwell subsequently was indicted on Nov. 15, 2016, and charged with bank robbery.
During today’s proceedings, Burwell pled guilty to the indictment, and admitted that on Oct. 14, 2015, he robbed the US Bank branch by approaching the bank teller, demanding money, and threatening to shoot the teller if she pulled the alarm. Burwell further admitted that after threatening the teller, he pulled his shirt tight showing an impression of a gun-shaped item concealed beneath his clothing. Burwell remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney George C. Kraehe is prosecuting the case.
'Buckeye Bandit’ Pleads Guilty to 8 Armed RobberiesRead the Press Release
COLUMBUS – Ikechi W. Emeaghara, 27, of Columbus, pled guilty today to eight counts of armed bank robbery. Emeaghara is the armed robber dubbed as the “Buckeye Bandit” by law enforcement.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio; Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Office; Columbus Police Chief Kim Jacobs; Franklin County Sheriff Dallas Baldwin; Delaware County Sheriff Russell L. Martin; Ohio State University Police Chief Craig Stone; Worthington Police Chief Jerry L. Strait, Jr.; Upper Arlington Police Chief Tracy Hahn and Gahanna Police Chief Dennis Murphy announced the guilty pleas entered today.
According to court documents, Emeaghara brandished a dangerous weapon and demanded cash from bank teller’s drawers on the following occasions:
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October 31, 2013 at the Wesbanco Bank on South Stygler Road in Gahanna
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November 30, 2013 at the Cooper State Bank on West 5th Avenue in Columbus
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December 6, 2013 at the Wesbanco Bank on South Stygler Road in Gahanna
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July 9, 2014 at the Smart Federal Credit Union on North High Street in Columbus*
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January 12, 2015 at the Cooper State Bank on Sawmill Road in Columbus*
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April 26, 2015 at the Cooper State Bank on Sawmill Road in Columbus*
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March 17, 2016 at the First Merit Bank on East Powell Road in Powell
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October 21, 2016 at the Key Bank on Frantz Road in Columbus (original indictment)
* Denotes armed robbery charges that also include forcing one or more persons to accompany him within the bank.
Emeaghara was indicted by the federal grand jury in initial and superseding indictments in November and December 2016.
Armed bank robbery is a crime punishable by up to 25 years in prison. Armed robbery including forcing one or more persons to accompany the defendant without their consent is punishable by a mandatory minimum 10 year prison term, with a possible 25 year maximum.
U.S. Attorney Glassman commended the cooperative investigation by law enforcement and Deputy Criminal Chief Gary L. Spartis and Assistant U.S. Attorney Salvador A. Dominguez, who are prosecuting the case.
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Monday 6 March 2017
“Youth Voices on the Opiate Crisis Media Contest” AnnouncedRead the Press Release
Contact: Daniel Perry
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: Thomas E. Delahanty II, United States Attorney for the District of Maine, is pleased to announce the “Youth Voices on the Opiate Crisis Media Contest.”
Each day in Maine, on average, one person dies of a drug overdose; in 2015 and 2016, overdose deaths increased by over 31%. In these challenging times, United States Attorney’s Office for the District of Maine and the Office of the Maine Attorney General are jointly sponsoring the “Youth Voices on the Opiate Crisis Media Contest.” This contest is open to Maine students and is designed to provide a platform to creatively document and reflect on the impact of substance abuse in their lives and communities. The goal of this contest is to build awareness and spark conversation among Maine’s youth. Prize money will be awarded to winning entrants.
Details about the contest can be found at: www.noStigmaForMe.com.
U.S. Attorney’s Office and Diocese of Altoona-Johnstown Announce Reforms to Protect Children from Sexual Abuse, Provide Counseling and Support for VictimsRead the Press Release
PITTSBURGH – Acting United States Attorney Soo C. Song and Bishop Mark L. Bartchak of the Diocese of Altoona-Johnstown announced today reforms by the Diocese to protect the children of the Diocese from sexual abuse, ensure that all allegations of sexual abuse are immediately reported to law enforcement and provide victims with access to a full range of counseling and support services.
The reforms are summarized in a memorandum of understanding. The memorandum is the product of extensive collaboration between the Diocese and the U.S. Attorney’s Office. Among other core reforms, the memorandum provides for:
- The creation of an independent, multidisciplinary oversight board;
- The retention of an outside expert to develop a new, comprehensive child abuse prevention program;
- A reporting protocol that requires the Diocese to report allegations of child sexual abuse to law enforcement within twelve hours after receipt; and
- Counseling and support services for victims by qualified and independent mental health professionals chosen by the victims.
“These unprecedented reforms put victims first, providing them with access to needed support and counseling,” stated Acting U.S. Attorney Song. “Through this agreement, allegations of sexual abuse will be immediately reported to law enforcement and suspected offenders removed from contact with children.”
“Since the release of the Grand Jury report last year, I have focused on strengthening our commitment to children and youth protection and providing continued support to survivors of sexual abuse,” said Bishop Bartchak. “The framework announced today represents the culmination of those efforts. As we look to the future, I believe these comprehensive and unprecedented reforms will make the Diocese of Altoona-Johnstown a leader in the safety and protection of young people.”
Assistant United States Attorneys Michael A. Comber, Philip P. O’Connor, and Colin J. Callahan handled this matter on behalf of the United States.
Two dealers plead guilty to federal drug crimesRead the Press Release
CHARLESTON, W.Va. – Two defendants pleaded guilty today to federal drug crimes, announced United States Attorney Carol Casto. Chelsea Fore, 25, of Charleston, entered her guilty plea to distribution of methamphetamine. In a separate prosecution, Everett Ray Gillespie, 66, of Bluefield, entered his guilty plea to distribution of hydromorphone.
On October 13, 2016, officers with the Metropolitan Drug Enforcement Network Team used a confidential informant to meet with Fore to purchase methamphetamine. The drug deal took place in the area of the Kmart located at 4th Avenue in Charleston. Once the informant gave Fore the prerecorded buy money, Fore got into the passenger seat of a BMW in the Kmart parking lot. After retrieving the methamphetamine, Fore got out of the car and gave the informant the drugs. Fore faces up to 20 years in federal prison when she is sentenced on June 5, 2017.
In a separate prosecution, Gillespie admitted that on April 15, 2016, he sold hydromorphone to a confidential informant in Bluefield. He also admitted that he distributed hydromorphone on another occasion, and that law enforcement seized 35 hydromorphone pills, more than $500 cash, and a handgun when they executed a search warrant at his residence. Gillespie faces up to 20 years in federal prison when he is sentenced on May 30, 2017.
The Metropolitan Drug Enforcement Network Team investigated the Fore case. Assistant United States Attorney Monica D. Coleman is in charge of the Fore prosecution. Fore’s plea hearing was held before United States District Judge Thomas E. Johnston. The Gillespie case was investigated by the Southern Regional Drug and Violent Crime Task Force. Assistant United States Attorney John File is handling the prosecution of Gillespie. The Gillespie plea hearing was held before Senior United States District Judge David A. Faber.
The case against Gillespie is being prosecuted under the Bluefield Pill Initiative. Both of these cases were brought 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. 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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Two Plead Guilty to Mystery Shopper Fraud SchemeRead the Press Release
NEWPORT NEWS, Va. – Christie Easter, 47, of Fort Worth, Texas, and Toheeb Odoffin, 28, of Chicago, each pleaded guilty today to charges related to their respective roles in a fraud scheme involving “Mystery Shoppers.”
According to the statement of facts filed with the plea agreement, in 2012 federal law enforcement began an investigation into an extensive scheme that operated nationally and internationally, stemming from Nigeria. The investigation determined that participants in the scheme, including Easter and Odoffin, recruited individuals throughout the United States via email to serve as “Mystery Shoppers,” in which the individuals would receive financial instruments, such as a cashier’s check or Postal money order, to evaluate the services of certain money transmission services, including Western Union and Money Gram. Once a recruited individual, or “Mystery Shopper,” responded to the email solicitation with interest, the conspirators would obtain personal identification information from the Mystery Shopper, which was then placed on the counterfeit cashier’s check or Postal money order. The conspirators, including Easter and Odoffin, would then mail the Mystery Shoppers a counterfeit cashier’s check or Postal money order for the Mystery Shopper to negotiate at their own bank, keeping a portion of the payment for their services. The Mystery Shopper would then wire the majority of the funds to conspirators or other recruited individuals who retrieved the transmitted funds and engaged in further distribution of the fraudulent proceeds.
Easter and Odoffin each pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft. Each faces mandatory minimum of two years in prison, and a maximum penalty of 32 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk; Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and George Purefoy, Resident Agent in Charge of the Norfolk Resident Office, U.S. Secret Service, made the announcement after the plea was accepted by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys Brian J. Samuels and Megan M. Cowles are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-cr-49.
Two Madison County Residents Sentenced for Conspiring to Distribute FentanylRead the Press Release
LEXINGTON, Ky. – Two Richmond, Ky., residents have been sentenced for conspiring to distribute large quantities of fentanyl.
U.S. Senior District Court Judge Joseph M. Hood sentenced Travis B. Preston, 28, to 11 years of imprisonment for conspiring to distribute 40 grams or more of a mixture or substance containing a detectable amount of fentanyl. Tiffany L. Griffith was sentenced to five years of imprisonment for aiding and abetting the distribution of 40 grams or more of a mixture or substance containing a detectable amount of fentanyl. Both defendants must serve 85 percent of their respective prison sentences. Following the completion of their sentences, Preston and Griffith will be under the supervision of the United States Probation Office for eight years and four years, respectively.
Preston and Griffith admitted to possessing approximately 121 grams of fentanyl for distribution. The fentanyl was discovered in Griffith’s purse during a traffic stop that occurred on April 5, 2016, in Lancaster, Ky.
The defendants pleaded guilty to the charges in December of 2016.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration, Richard W. Sanders, Commissioner, Kentucky State Police, and Tim Davis, Garrard County Sheriff, jointly made the announcement today.
The investigation was conducted by the Garrard County Sheriff’s Office, the Kentucky State Police, and the Drug Enforcement Administration. The United States was represented in the case by Assistant United States Attorney Robert M. Duncan, Jr.
Three Pittsburgh Residents Charged in Forged Prescription RingRead the Press Release
PITTSBURGH - Three residents of Pittsburgh, Pennsylvania, have been indicted by a federal grand jury in Pittsburgh on charges including conspiracy to commit offenses against the United States, possession with intent to distribute and distribute Oxycodone, obtaining a controlled substance through fraud, health care fraud, conspiracy to possess with intent to distribute and distribute Oxycodone and aggravated identity theft, Acting United States Attorney Soo C. Song announced today.
The seven-count indictment named Barry Lee Dorsey, II, 26, Tyesha Renee Dorsey, 25, and Zachary Edward Rathke, 26, as defendants.
According to the indictment, the defendants operated a forged prescription ring. Prescriptions were forged with the names, DEA numbers, medical license numbers, and signatures of real medical doctors. The prescriptions, most of which were forged for Oxycodone and Percocet, were filled at a large number of Western Pennsylvania pharmacies and primarily paid for with Medicaid funds. The fraudulently obtained prescription pills were then sold on the street for substantial profit.
The law provides for a maximum total sentence of 61 years in prison, a fine of $3,000,000 or both for the charges pending against Barry Lee Dorsey, II. The law provides for a maximum total sentence of 25 years in prison, a fine of $1,250,000 or both for the charges pending against Tyesha Renee Dorsey and Zachary Edward Rathke. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Drug Enforcement Administration, Pittsburgh Bureau of Police, Brentwood Police Department, Mt. Pleasant Police Department and Bellevue Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Sports Memorabilia Executive Pleads Guilty to $9.5 Million Fraud SchemeRead the Press Release
CHICAGO — The owner of a sports memorabilia company admitted in federal court today that he conducted a fraud scheme using forged documents and phony sports memorabilia, including a doctored Heisman Trophy and fake baseball cards that he used as collateral on loans.
JOHN ROGERS, 44, of North Little Rock, Ark., pleaded guilty to one count of wire fraud. The conviction carries a maximum sentence of 20 years in prison. U.S. District Judge Thomas M. Durkin scheduled a sentencing hearing for Sept. 12, 2017, at 10:00 a.m.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
Rogers admitted in a plea agreement that he carried out a fraud scheme between 2009 and 2014 through his two Arkansas-based businesses, Sports Card Plus and Rogers Photo Archive LLC, resulting in losses of more than $9.5 million to investors, customers and financial institutions.
In order to obtain money from investors, Rogers falsely represented that he had secured contracts to purchase certain collections of sports memorabilia and newspaper photograph archives his company would sell at a profit, according to the plea agreement. Rogers showed the investors contracts for collections and archives even though he knew the deals never actually existed because the contracts were forgeries that Rogers created to deceive them.
Rogers also admitted in the plea agreement that he sold various sports memorabilia that he knew was not authentic because he had either created the item himself or altered it to make it appear legitimate. For example, in February 2012 Rogers paired an altered Heisman Trophy with phony certifications to secure a $100,000 loan from an investor, according to the plea agreement.
Rogers also used other fraudulent contracts and fake sports memorabilia to secure more than $4 million in loans from multiple financial institutions in Arkansas, the plea agreement states. Rogers admitted in the plea agreement that he used fraud proceeds he received from investors and financial institutions to repay customers who detected his sale of fraudulent sports memorabilia. Rogers provided customers with fraudulent certificates of authenticity, as well as fraudulent hologram stickers from a major auction house, the plea agreement states.
The government is represented by Assistant United States Attorney Derek Owens.
Smithton Resident Sentenced for Sexual Exploitation of a Minor and Possession of Prepubescent Child PornographyRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that on Friday, March 3, 2017, Kyle W. Oberg, 40, Smithton, IL, was sentenced on two counts of sexual exploitation of a minor and one count of possession of visual depictions of prepubescent minors engaged in sexually explicit conduct. Oberg was sentenced to 360 months of imprisonment on the first two counts and 240 months of imprisonment on the third count, all to run concurrently, for a total term of imprisonment of 30 years. The term of imprisonment is to be followed by a lifetime term of supervised release. Oberg was also fined $200 on each count, for a total fine of $600, and ordered to pay a $300 special assessment. Oberg had been detained since his arraignment on August 22, 2013.
The charges arose after the Smithton Police Department executed a state search warrant on July 18, 2013, at Oberg’s residence after receiving a complaint from a concerned mother regarding defendant’s suspicious behavior towards the mother’s six-year old daughter.
Evidence presented at sentencing established that, between December 8, 2012, and June 29, 2013, on 24 separate occasions, Oberg took a total of 337 images of the minor victim engaged in sexually explicit conduct. There were also three videos taken of the minor victim engaged in
sexually explicit conduct, including one video of the defendant digitally penetrating the then six-year old victim.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab Aresources.@
The case was investigated by the Smithton Police Department and the United States Secret Secret’s Cyber-Crime Unit. The case was assigned to Assistant United States Attorney Angela Scott.
Sex Offender Sentenced to Prison Term for Violating Supervised ReleaseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DONALD LUCIANO, 45, last residing in Bridgeport, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 11 months of imprisonment for violating the terms and conditions of his federal supervised release.
On July 18, 2013, LUCIANO was sentenced in federal court in Fort Lauderdale, Fla., to 24 months of imprisonment, followed by five years of supervised release, for possessing child pornography. He began supervision in the District of Connecticut on October 31, 2014.
According to court documents and statements made in court, LUCIANO engaged in numerous violations of the terms of his supervised release, including having unsupervised contact with minors, using or accessing unauthorized computers, traveling out of state on multiple occasions without prior permission (including trips to Block Island, R.I., and the Hamptons, N.Y.), associating with felons, and failing to give truthful answers and reports to the U.S. Probation Office.
LUCIANO has been detained since his arrest on August 1, 2016, for supervised release violations. When he is released from prison, he faces five years of supervised release, the first six months of which he will serve in a halfway house. LUCIANO also faces pending state larceny charges on allegations of fraud.
This matter was brought by the U.S. Probation Office with additional investigation provided by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney David T. Huang.
San Francisco Residents Charged in Alleged Bank Robbery SpreeRead the Press Release
SAN FRANCISCO – Andre Mitchell Brown and Javier Raymond Jenkins were charged with conspiracy and armed bank robbery announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. Brown also was charged with being a felon in possession of a firearm and with use of a firearm during and in relation to a crime of violence.
The defendants both made an initial appearance today before the Hon. Maria-Elena James, U.S. Magistrate Judge, on an indictment issued by a federal grand jury on February 28, 2017. According to the indictment, San Francisco residents Brown and Jenkins surveilled five separate locations in an effort to find a bank or credit union to rob. The indictment further alleges that on August 12, 2016, the defendants traveled to a Richmond District bank on Geary Street where Brown, carrying a .38 caliber pistol in his jacket, approached the bank wearing a wig, fake beard and mustache, sunglasses, jacket, and a glove on his left hand. According to the indictment, the men attempted to rob the bank. The defendants were charged with conspiracy to commit bank robbery, in violation of 18 U.S.C. § 371, and attempted armed bank robbery and aiding and abetting attempted armed bank robbery, in violation of 18 U.S.C. §§ 2113 and 18 U.S.C. § 2. In addition, Brown was charged with being a felon in possession of firearms, in violation of 18 U.S.C. § 922(g)(1), and using, carrying, and possessing a firearm in relation to a crime of violence, in violation of 18 U.S.C. § 924(c).
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. The maximum penalty each defendant faces upon conviction for the conspiracy charge is five years’ imprisonment and the maximum penalty each defendant faces upon conviction for the attempted bank robbery charge is 25 years’ imprisonment. Further, upon conviction, the maximum penalty Brown faces for being a felon in possession of a firearm is 10 years’ imprisonment and the maximum penalty Brown faces upon conviction for using, carrying or possessing a firearm in relation to a crime of violence is life imprisonment, with a minimum mandatory sentence of 25 years’ imprisonment. Additionally, periods of supervised release, fines, forfeitures, and special assessments also could be imposed. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Magistrate Judge Maria-Elena James ordered defendant Brown to appear on March 8, 2017, for a detention hearing, and ordered defendant Jenkin to appear on March 13, 2017, for a detention hearing.
Assistant U.S. Attorney Helen L. Gilbert is prosecuting the case with the assistance of Heidi Dittmer. The prosecution is the result of an investigation by the FBI.
Pennsylvania Woman Pleads Guilty to Conspiring to File Tax Returns Using IDs of Puerto Rico ResidentsRead the Press Release
Cashed More than $4 Million in Fraudulently Obtained Refunds
An Allentown, Pennsylvania woman pleaded guilty to conspiring to file federal tax returns using stolen IDs, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania.
According to the indictment and information presented to the court, Jessenia Cordero, 37, operated MJ & Associates and Express Tax Services, both located in Allentown. These businesses provided tax preparation, check cashing and other services to customers. Cordero and her co-conspirators obtained lists of Puerto Rico residents’ names and social security numbers and used these IDs to file fraudulent tax returns with the Internal Revenue Service (IRS). The conspirators directed the IRS to mail the refund checks to addresses they controlled and to deposit the refunds onto pre-paid debit cards. Cordero used her businesses to cash fraudulently obtained refund checks totaling approximately $4,316,103.
Cordero is scheduled to be sentenced on June 12, before U.S. District Judge Edward G. Smith. She faces a statutory maximum sentence of 10 years in prison, a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Lappen commended special agents of IRS-Criminal Investigation, HSI and FBI, and the Allentown Police Department, who conducted the investigation, and Assistant U.S. Attorney David Ignall and Trial Attorney Matthew J. Kluge of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Pawn Shop Owners Plead Guilty to Mail Fraud and Stolen Property ChargesRead the Press Release
PITTSBURGH - Two residents of Pittsburgh pleaded guilty in federal court to charges of mail fraud and engaging in monetary transactions in property derived from specified unlawful activity, Acting United States Attorney Soo C. Song announced today.
Qamar Zaman, 67, and Aliya Zaman, 48, both of Pittsburgh, Pennsylvania, pleaded guilty to two counts before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that the Zamans owned and operated Ninja Babcock, a pawn/resale shop in Ross Township, Pennsylvania. They are husband and wife. The Zamans knowingly and willfully purchased health and beauty aids (HBAs), stolen by opioid-dependent individuals from various commercial retailers, such as Rite-Aid, Wal-Mart and Giant Eagle, for pennies on the dollar. The stolen HBAs were then resold through Amazon.
Judge Hornak scheduled sentencing for Aliya Zaman for June 29, 2017 at 3:00 p.m. and for Qamar Zaman for June 29, 2017 at 1:30 p.m. The law provides for a total sentence of 30 years in prison, a fine of $500,000 or both for each defendant. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service, Federal Bureau of Investigation, Pennsylvania Office of Attorney General, City of Pittsburgh Bureau of Police, Shaler Township Police Department and Ross Township Police Department conducted the investigation that led to the prosecution of the Zamans.
Passaic County, New Jersey, Man Sentenced to Two Years in Prison for Illegally Possessing MachinegunsRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was sentenced today to 24 months in prison for possession of multiple machineguns, which are illegal under federal law, U.S. Attorney Paul J. Fishman announced.
Mariusz Cebula, 36, Ringwood, New Jersey, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of knowingly possessing five machineguns, which are defined as weapons that can shoot more than one shot automatically, without manual reloading, by a single function of the trigger. Judge Wigenton imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
Cebula admitted that he possessed five machineguns, but agreed to forfeit to the Government an additional 12 machineguns and machinegun parts, all of which were possessed illegally, as well as 10 other firearms and firearm parts. The five machineguns specifically charged in the information were determined to be readily operational as automatic weapons, meaning that they required no modification to shoot more than one shot automatically by a single function of the trigger and without manual reload. Cebula obtained most of the firearms through purchases at gun shows from unlicensed gun sellers and on the Internet.
Besides the machineguns charged in the information and forfeited by him, Cebula also possessed numerous other firearms, weapons and ammunition, all of which have been administratively forfeited by the Passaic County Prosecutor’s Office. According to data published by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the town of Ringwood ranked number six on the list of top ten cities in New Jersey where guns were seized in 2015, behind Newark, Paterson, Trenton, Jersey City and Camden. Of the 93 recovered guns that propelled Ringwood, New Jersey to the sixth spot on the list, the overwhelming majority (approximately 80) were recovered from Cebula’s home.In addition to the prison term, Judge Wigenton sentenced Cebula to three years of supervised release.
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Acting Special Agent in Charge Scott C. Curley, and the Ringwood Police Department, under the direction of Chief Joseph Walker, with the investigation leading to the charge. He also thanked the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, for its role in the case.
The government is represented by Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office Criminal Division in Newark.
Defense Counsel: Miles Feinstein Esq., Clifton, New Jersey
Orville Man Sentenced to 5 Years in Federal Prison for Distribution of Child PornographyRead the Press Release
Spokane–Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Ian Christopher Evans, age 31, of Orville, Washington, was sentenced on February 28, 2017, after having previously pleaded guilty on December 1, 2016 to Distribution of Child Pornography. Senior United States District Judge Wm. Fremming Nielsen sentenced Evans to a five-year term of imprisonment, to be followed by a ten-year term of court supervision after he is released from Federal prison. In addition, Evans agreed to abandon to the United States the laptop computer he used to distribute and store his child pornography collection.
According to information disclosed during the court proceedings, in April of 2013, an officer working undercover for the Spokane County Sheriff's Office discovered that Evans was using peer to peer file sharing to distribute images of child pornography. With the assistance of agents from Homeland Security, a federal search warrant was executed on December 13, 2013 at Evans residence in Oroville, Washington. Law enforcement officers discovered Evan’s Compaq laptop computer contained approximately 87 videos and 15 images of child pornography.
Michael C. Ormsby stated, “I commend the law enforcement officers with Homeland Security and Spokane County Sheriff's Office who worked on this case. Their seamless partnership resulted in the successful outcome in this matter. The United States Attorney’s Office in the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes. Prosecuting offenders who distribute child pornography is a priority of the United States Attorney’s Office.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's
Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
• Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
• Participation of PSC partners in coordinated national initiatives;
• Increased federal enforcement in child pornography and enticement cases;
• Training of federal, state, and local law enforcement agents; and
• Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted the Homeland Security and the Spokane County Sheriff's Office. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.
Orange County Man Who Owned Rehab Clinic in Walnut Sentenced to 63 Months in Federal Prison for Role in Occupational Therapy Fraud SchemeRead the Press Release
LOS ANGELES – The operator of rehabilitation clinic in Walnut was sentenced today to 63 months in prison for his role in a $3.4 million Medicare fraud scheme that involved billing for occupational therapy services that were not medically necessary and not provided.
Simon Hong, 55, of Brea, was sentenced by U.S. District Judge George H. Wu, who also ordered the defendant to pay $2,407,857 in restitution. Hong pleaded guilty on December 15 to one count of conspiracy to commit health care fraud.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, United States Attorney Eileen M. Decker and Special Agent in Charge Christian J. Schrank of the U.S. Department of Health and Human Services’ Office of Inspector General’s (HHS-OIG) Los Angeles Regional Office made the announcement.
“This defendant has now been convicted and sentenced to federal prison in two separate schemes that cost taxpayers millions of dollars,” said United States Attorney Decker. “This type of fraudulent conduct is a burden on the entire health care system, drives up costs for patients and compromises the delivery of services to people who legitimately need care.”
In addition to today’s sentence, Hong was sentenced in January to over 10 years in prison in a separate case. The 63-month sentence imposed today by Judge Wu will run concurrently to the sentence imposed by Judge Carter.
As part of the guilty plea that led to today’s sentencing, Hong admitted that he owned JH Physical Therapy Inc., an occupational therapy clinic in Walnut, but hid his ownership in the name of a “straw”or nominee owner in an effort to execute and conceal the fraudulent scheme. Hong admitted that as part of the scheme, he billed Medicare for occupational therapy services when no such services were provided to the Medicare beneficiaries. Instead, the Medicare beneficiaries received acupuncture and massage services, which were not reimbursable by Medicare. Hong further admitted that he directed co-conspirator therapists to falsify medical records to make it appear as if the services billed had been actually provided and funneled 87 percent of the proceeds from Medicare to himself.
Through this scheme, Hong admitted that he and his co-conspirators billed Medicare approximately $3,454,485 from October 2009 until December 2012 in false claims and received approximately $2,407,857.
Hong was charged by indictment on June 16, 2016, along with Grace Hong, 51, of Brea, and Keith Canlapan, 38, of West Covina. Canlapan pleaded guilty to one count of conspiring to commit health care fraud, and Grace Hong is scheduled for trial March 21. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
HHS-OIG investigated the case. The Criminal Division’s Fraud Section Trial Attorney Niall M. O’Donnell and Former Fraud Section Trial Attorney Blanca Quintero prosecuted the case.
Olyphant Man Guilty of Attempted Enticement of A Minor for Sexual PurposesRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Brian LaChance, age 27, of Olyphant, Pennsylvania, pleaded guilty on March 3, 2017, before U.S. Magistrate Judge Joseph F. Saporito, Jr, to using a facility of interstate commerce to attempt to entice a minor to engage in illegal sexual conduct.
According to United States Attorney Bruce D. Brandler, LaChance admitted that in November 2015, he used the internet and a cell phone to attempt to entice and persuade a 15-year-old female to send him sexually explicit photographs of her.
The charge stems from an investigation by the Federal Bureau of Investigation and the U.S. Army criminal investigators. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. The charge also carries a mandatory minimum sentence of 10 years in prison. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Ohkay Owingeh Pueblo Man Pleads Guilty to Federal Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Peter Calvert-Cata, 21, a member and resident of Ohkay Owingeh Pueblo, N.M., pled guilty today in federal court in Albuquerque, N.M., to a sexual assault charge. Under the terms of the plea agreement, Calvert-Cata will be sentenced to four years of imprisonment followed by a term of supervised release to be determined by the Court. He also will be required to register as a sex offender.
Calvert-Cata was arrested on Nov. 18, 2016, on a criminal complaint charging him with aggravated sexual abuse. According to the criminal complaint, Calvert-Cata sexually assaulted a 17-year-old female on Aug. 13, 2016, in Ohkay Owingeh Pueblo. At the time of the sexual assault, the victim, a member of Ohkay Owingeh Pueblo, was fading in and out of consciousness because she was intoxicated by alcohol and marijuana. Calvert-Cata subsequently was indicted on Dec. 7, 2016, and charged with two counts of aggravated sexual abuse.
During today’s change of plea hearing, Calvert-Cata entered a guilty plea to a felony information charging him with sexual assault. In his plea agreement, Calvert-Cata admitted that he attempted to engage in a sexual act with the victim on Aug. 13, 2016, at a time when she was highly intoxicated by alcohol and marijuana. Calvert-Cata also acknowledged providing the marijuana consumed by the victim.
Calvert-Cata remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Santa Fe office of the FBI, the Northern Pueblos Agency of the BIA’s Office of Justice Services, the Ohkay Owingeh Tribal Police Department, and the New Mexico State Police.
Assistant U.S. Attorney Lucy H. Solimon is prosecuting the case as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
North Carolina Woman Pleads Guilty to Tax ChargeRead the Press Release
Roanoke, VIRGINIA – A woman who participated in a fraudulent cosmetics sales scheme pled guilty on Friday to federal tax charges, Acting United States Attorney Rick A. Mountcastle announced.
Charon Ray, a.k.a. “Charon Crowely,” 39, of Greensboro, North Carolina, pled guilty on March 3 in the United States District Court for the Western District of Virginia to one count of filing a false tax return.
According to evidence presented during the guilty plea hearing, Ray operated an online cosmetic sales business out of her residence during the years in the year 2009, 2010, 2011, 2012, 2013 and 2014. Ray obtained the cosmetics from a disposal company, and then repurposed them for sale through electronic sales channels such as eBay. The Internal Revenue Service examined Ray’s financial records for the relevant time period and determined that she knowingly failed to report at least $380,000 in income associated with her online business in 2011 alone. As part of her plea in this case, Ray will file updated returns for all years and make payment to the Internal Revenue Service for taxes owed.
The investigation of the case was conducted by the Internal Revenue Service. Special Assistant United States Attorney Kari Munro prosecuted the case for the United States.
New Jersey Man Sentenced on Heroin ChargeRead the Press Release
Roanoke, VIRGINIA – A New Jersey man, who conspired with others to distribute heroin in and around the Western District of Virginia, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke, Acting United States Attorney Rick A. Mountcastle announced.
Joshua M. Manning, 20, of Paterson, N.J., previously pled guilty to one count of conspiracy to distribute heroin. Today in District Court, Manning was sentenced to 40 months in federal prison.
A number of co-defendants in the case have previously been sentenced for their roles in the conspiracy. Jesse Ray Little was previously sentenced to 108 months; Shawn St. Clair Cadogan was previously sentenced to 84 months; Michael A. Kemp II was sentenced to 70 months and Tiki Price Tickle was sentenced to 28 months.
The investigation of the case was conducted by the Drug Enforcement Administration, the Bedford County Sheriff’s Office and the Virginia State Police. Assistant United States Attorney Andrew Bassford and Special Assistant United States Attorney Kari Munro prosecuted the case for the United States.
Nevada Liquor Store Owner Sentenced to Prison for Conspiring to Defraud the United States and Tax EvasionRead the Press Release
Jeffrey Nowak, a Las Vegas, Nevada liquor store owner was sentenced to serve 41 months in prison for conspiring to defraud the United States and tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Daniel G. Bogden for the District of Nevada.
According to the evidence introduced at trial and documents filed with the court, Nowak, 67, and Ramzi Suliman jointly owned and operated liquor stores in Las Vegas. At their first liquor store, Super Liquor Store South Strip, Nowak and Suliman skimmed cash receipts and maintained a double set of books in order to underreport income to the Internal Revenue Service (IRS). One set of books accurately reflected the store’s sales, while a second set of books fraudulently omitted nearly $4 million in cash receipts that had been actually received by the business. Nowak and Suliman provided the phony set of books to their accountant, causing him to create corporate tax returns that did not fully report the liquor store’s gross receipts and taxable income. Nowak and Suliman also caused their true personal income to be concealed on their individual income tax returns.
“Everyone is legally required to accurately report and pay taxes on their income – cash sales are not an opportunity to skirt this obligation,” said Acting Deputy Assistant Attorney General Goldberg. “Nowak’s prison sentence makes clear that taxpayers cannot hide behind a double set of books.”
“The defendant intentionally concealed the store’s income by conspiring to skim cash and keeping two sets of account books,” said U.S. Attorney Bogden. “As a result, he cheated the U.S. Treasury and taxpayers. The U.S. Attorney’s Office is committed to working together with the IRS to pursue and prosecute perpetrators who choose to violate tax laws for their own benefit. Financial fraud is a top priority.”
In addition to the term of prison imposed, Nowak was ordered to serve three years of supervised release and pay restitution to the IRS. Nowak was convicted in August 2016, of conspiring to defraud the United States, assisting in the filing of false corporate tax returns and tax evasion. Suliman pleaded guilty in July 2014 to conspiring with Nowak to defraud the United States and was sentenced on Jan. 18 to serve 12 months in prison, three years of supervised release and to pay $428,003 in restitution to the IRS.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Bogden commended special agents of IRS Criminal Investigation, who conducted the investigation and Assistant U.S. Attorney Kathryn C. Newman and Trial Attorney Eric C. Schmale of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Nevada Liquor Store Owner Sentenced to Prison for Conspiring to Defraud the United States and Tax EvasionRead the Press Release
LAS VEGAS, Nev.–Jeffrey Nowak, a Las Vegas, Nevada liquor store owner, was sentenced to serve 41 months in prison for conspiring to defraud the United States and tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Daniel G. Bogden for the District of Nevada.
According to the evidence introduced at trial and documents filed with the court, Nowak, 67, and Ramzi Suliman jointly owned and operated liquor stores in Las Vegas. At their first liquor store, Super Liquor Store South Strip, Nowak and Suliman skimmed cash receipts and maintained a double set of books in order to underreport income to the Internal Revenue Service (IRS). One set of books accurately reflected the store’s sales, while a second set of books fraudulently omitted nearly $4 million in cash receipts that had been actually received by the business. Nowak and Suliman provided the phony set of books to their accountant, causing him to create corporate tax returns that did not fully report the liquor store’s gross receipts and taxable income. Nowak and Suliman also caused their true personal income to be concealed on their individual income tax returns.
“Everyone is legally required to accurately report and pay taxes on their income – cash sales are not an opportunity to skirt this obligation,” said Acting Deputy Assistant Attorney General Goldberg. “Nowak’s prison sentence makes clear that taxpayers cannot hide behind a double set of books. ”
“The defendant intentionally concealed the store’s income by conspiring to skim cash and keeping two sets of account books,” said U.S. Attorney Bogden. “As a result, he cheated the U.S. Treasury and taxpayers. The U.S. Attorney’s Office is committed to working together with the IRS to pursue and prosecute perpetrators who choose to violate tax laws for their own benefit. Financial fraud is a top priority.”
In addition to the term of prison imposed, Nowak was ordered to serve three years of supervised release and pay restitution to the IRS. Nowak was convicted in August 2016, of conspiring to defraud the United States, assisting in the filing of false corporate tax returns and tax evasion. Suliman pleaded guilty in July 2014 to conspiring with Nowak to defraud the United States and was sentenced on Jan. 18 to serve 12 months in prison, three years of supervised release and to pay $428,003 in restitution to the IRS.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Bogden commended special agents of IRS Criminal Investigation, who conducted the investigation and Assistant U.S. Attorney Kathryn C. Newman and Trial Attorney Eric C. Schmale of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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National Park Service Employee Sentenced to Prison for Theft of Park FeesRead the Press Release
PHOENIX– Yesterday, Sharon Baldwin, 47, of Sanders, Ariz., a member of the Navajo Nation, was sentenced by U.S. District Judge Diane Humetewa to a year in prison to be followed by three years of supervised release. Baldwin was also ordered to pay restitution to the National Park Service in the amount of $313,000. Baldwin had previously pleaded guilty to theft of government money.
Baldwin was formerly employed at the Petrified Forest National Park and was responsible for accounting for park entrance fees paid by Park visitors. From 2010 through 2016, Baldwin used her supervisory position to steal more than $300,000 and altered electronic records and documents to hide her theft.
The investigation in this case was conducted by the Department of Interior, Office of Inspector General. The prosecution was handled by Monica Edelstein, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-16-08295-PHX-DJH
RELEASE NUMBER: 2017-022_Baldwin
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Multi-state drug trafficking organization dismantledRead the Press Release
Defendants indicted on drug and criminal enterprise charges for bringing kilograms of cocaine and methamphetamine to Central Indiana
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler announced today the dismantling of a multi-state drug trafficking organization which brought large quantities of cocaine and methamphetamine to Central Indiana which netted them millions of dollars in cash profits.
“Large-scale drug trafficking dealing brings violence and disrupts the tranquility of our neighborhoods,” said Minkler. “Those who chose to spread illegal drugs and the addictions that follow, will be held accountable and experience the wrath of federal prosecution.”
The indictment alleges Hector Saul Castro-Aguirre, age 38, Nogales, Mexico, and Rafael Rojas-Reyes, 34, Avon, were the masterminds of the organization bringing drugs to Central Indiana and many other U.S. cities. From July 2015 through September 2016, Castro-Aguire is alleged to have received the drugs from Mexico for redistribution in the United States. Some shipments were delivered in Avon, Indiana, and others were sent to locations in Arizona, New York and Pennsylvania. Once the drugs were delivered to Avon, they were redistributed by Rafael Rojas-Reyes to other mid-level dealers.
Other defendants include:
Rafael Rojas-Reyes, 34
Oscar Macias, 22
Merath Mora-Chavez, 32
Francisco Toledo-Santos, aka Chiapas, 29
Roberto S. Macias, 42
Hector Saul Castro-Aguirre, aka Chapo, aka Chapito, 38
Elvia Barrios-Moreno, 50
Aldo Machado-Castro, 40
John Ramirez-Prado, 34
Rafael Lnu, aka Flaco
Yesenia Andrade-Guillen, 38
Jesus Lopez-Acosta, aka Jessie
Julio Cesar Cebrero-Alvarez, 34
Jose Manuel Carrillo-Tremillo, aka Meche, 50
Cristian Garcia, 25
Melvin Peralta, aka Leonardo, 27
This case was investigated by the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation, Indianapolis Metropolitan Police Department, Carmel Police Department and Indianapolis Metropolitan Drug Task Force.
According to Assistant U.S. Attorney Bradley A. Blackington, Chief of the Drug and Violent Crime Unit, the defendants face decades in prison if convicted on all counts.
An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
Mineral Wells Man Sentenced to 360 Months in Federal Prison on Federal Child Pornography ConvictionRead the Press Release
FORT WORTH — A 57-year-old Mineral Wells, Texas, man, Jimmy Gordon, who pleaded guilty in June 2016 to one count of production of child pornography, was sentenced this morning by U.S. District Judge David C. Godbey to 360 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, in March 2016, Federal Bureau of Investigation agents executed a search warrant at the residence of Gordon in Mineral Wells, Texas. During the search, Gordon admitted that he communicated with an individual on Facebook, and that, over the course of their communications, Gordon used his cell phone to take a nude picture of his two-year old grandson and to transmit the image to the individual.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation investigated. Assistant U.S. Attorney A. Saleem prosecuted.
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Memphis Man Convicted of Felony Possession of a FirearmRead the Press Release
Memphis, TN – A jury has convicted a Memphis man of possessing a firearm while a convicted felon and possessing a firearm while on school property. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the conviction today.
According to information presented at trial, on October 3o, 2014, officers with the Memphis Police Department responded to a report of an armed suspect at Ross Elementary School, 4890 Ross Road. Upon arrival, officers saw Charles Tigner of Memphis, Tennessee, who was combative and engaged officers in a fight resulting in the deployment of a chemical agent.
Officers pursued Tigner from the halls of Ross Elementary School to 6946 Boothbay, where he was apprehended. A Ruger 9 mm was recovered on school property near the area of the original struggle.
According to the affidavit of complaint, the suspect had an outstanding warrant for domestic violence charges.
For the two counts, the maximum penalty is 15 years in prison and a $250,000 fine. Sentencing is set for May 4, 2017, before the Honorable U.S. District Judge John T. Fowlkes Jr.
The case was investigated by the Memphis Police Department’s Project Safe Neighborhoods Task Force. Assistant U.S. Attorneys Dean DeCandia and Bayonle Osundare prosecuted this case on the government’s behalf.
Manchester Man Pleads Guilty to Trafficking Cocaine in NashuaRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced that Luis D. Capo-Nieves pleaded guilty on March 1, 2017, to a federal charge of possessing cocaine with the intent to distribute. Capo-Nieves is 33 years old and lives in Manchester.
According to court documents and statements made during Capo-Nieves’s plea hearing, on July 1, 2016, the Nashua Police Department dispatched several officers to the parking lot of a city apartment complex. The officers were dispatched in response to a citizen complaint about drug dealing activity at that location. In the parking lot, the police observed Capo-Nieves and another individual make an exchange. A car Capo-Nieves was driving was the subject of a later police traffic stop. While searching the car after the stop, the police found about 279 grams of cocaine.
Capo-Nieves is scheduled for sentencing on June 12, 2017. Wilfredo Tanon Rodriguez, the person with whom Capo-Nieves was seen making the parking lot exchange, recently pleaded guilty to a related charge. He will be sentenced on June 2, 2017.
This matter was investigated by the Nashua Police Department. The case is being prosecuted by Assistant United States Attorney Bill Morse.
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Man Sentenced for Using Stolen Identity to Try to Buy $52,000 Car in WichitaRead the Press Release
WICHITA, KAN. B An Arizona man was sentenced Monday to two years of prison for using a stolen identity in an effort to buy a $52,000 car from a Wichita auto dealer, U.S. Attorney Tom Beall said.
Thomas Rye, 37, Phoenix, Ariz., pleaded guilty to one count of wire fraud. In his plea, he admitted that on Jan. 2, 2016, he called Eddy’s Chrysler Dodge Jeep Ram in Wichita and applied for a pre-approved line of credit to purchase a car. He used a stolen identity for a credit check and tried to use the victim’s credit to buy a Dodge Challenger Hellcat valued at $52,725. Mistakes in the credit application paperwork caused employees of the dealership to become suspicious and they called police. Rye was arrested at the scene.
Rye was one of 13 defendants named in an indictment in May alleging they were part of an organization that attempted to fraudulently obtain a total of $3.5 million in credit and cash. The indictment alleged the conspirators divided up the work of stealing mail from mailboxes, fraudulently applying for credit and shopping with stolen identities.
The sentence is to be served concurrently with a sentence in another case in Arizona.
Beall commended the U.S. Postal Inspection Service, the Sedgwick County Sheriff’s Department, the Wichita Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Assistant U.S. Attorney Alan Metzger and Assistant U.S. Attorney Debra Barnett for their work on the case.
Maine Woman Sentenced to 14 Years on Cocaine and Oxycodone Trafficking ChargesRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Kelli Mujo, 31, of Harmony and Wellington, Maine and Central Falls, Rhode Island, was sentenced today in U.S. District Court by Judge Jon D. Levy to 14 years in prison and five years of supervised release for conspiring to distribute and possess with the intent to distribute oxycodone and cocaine and maintaining a drug involved premise. Mujo and her father, Roger Belanger, were convicted following a jury trial on August 19, 2016.
The evidence at trial revealed that between 2002 and 2014, the defendant and her father ran a cocaine and oxycodone distribution conspiracy that stretched from Rhode Island to the Dexter, Maine area. Conspirators obtained over 22 kilograms of cocaine and thousands of oxycodone pills in Rhode Island and transported to Maine where it was distributed in Dexter and the surrounding communities.
The case was investigated by the U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency, with assistance provided by the Dexter Police Department, the Penobscot, Somerset and Piscataquis County Sheriff’s Offices.
Louisville Woman Sentenced to 15 Months for Defrauding the Social Security AdministrationRead the Press Release
Failed to disclose the death of her husband for eleven years
Ordered to pay $194,787.92 in restitution
LOUISVILLE, Ky. – A Louisville woman was sentenced today in United States District Court by Chief Judge Joseph H. McKinley Jr., to serve 15 months in prison and pay $194,787.92 in restitution for committing several offenses involving the fraudulent receipt of Old-Age, Survivors and Disability Insurance (OASDI) benefits by the Social Security Administration (SSA), for an eleven-year period, for which she was not qualified announced United States Attorney John E. Kuhn, Jr.
Janice M. Arnow, age 69, admitted that she failed to disclose the death of her husband and continued to receive and spend OASDI payments made by the SSA between October 2003 and October 2014. Further, Arnow admitted to theft of government property. Arnow embezzled, stole, and purloined money of the Social Security Administration (SSA), a department and agency of the United States, namely, Old-Age, Survivors and Disability Insurance program (OASDI) payments made to her deceased husband, to which she knew she was not entitled. Arnow did not apply for survivor benefits, and would not have qualified.
Also, on or about July 17, 2012, Arnow admitted to making her own false Social Security Application. Arnow willfully and knowingly made a materially false, fictitious, and fraudulent statement, by submitting an application for her own OASDI payments to the SSA. In doing so, Arnow falsely omitted the identity of her late husband (Paul Adams), the receipt of income from her late husband’s OASDI payments, the date of his death, and falsely indicated that she had no other marriages than to M.H.
According to information presented in court, when Arnow was questioned by agents with SSA at her Louisville home, Arnow reportedly stated that she thought she could spend the money because she was his widow, offered to pay the money back, could not remember to whom she had mailed her late husband’s death certificate, and that she had used the money for social work in Rwanda and the Congo. Information presented in Court showed Arnow used the money for living expenses and did not qualify for widower’s benefits because she earned too much additional income.
In a separate case, on November 19, 2012, Arnow pleaded guilty in the Commonwealth of Kentucky, Jefferson County, to wanton exploitation of an adult over $300, theft of identity, fraudulent use of a credit card over $500, and theft by unlawful taking of over $500. The court sentenced Arnow to four years on each count. Arnow entered into a five-year diversion. The Commonwealth moved to revoke that diversion based on the federal charges.
The case is being prosecuted by Assistant United States Attorney Joshua Judd, and results from an investigation conducted by the Social Security Administration –Office of the Inspector General.
Louisiana Attorneys Plead Guilty to Failure to File Tax ReturnsRead the Press Release
Two Louisiana attorneys pleaded guilty today in the U.S. District Court for the Western District of Louisiana to willfully failing to file federal tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Stephanie A. Finley for the Western District of Louisiana.
According to documents filed with the court, James Lynden Burton, 48, and his ex-wife, Lucretia Pecantte-Burton, 50, of New Iberia, Louisiana, are licensed attorneys and were partners of the law firm of Pecantte-Burton & Burton (PB&B). PB&B offered general legal services and representation and regularly received cash payments from clients for legal services rendered. They also had a partnership interest in a tax return preparation business. For tax years 2007, 2008 and 2009, Burton and Pecantte-Burton did not file individual income tax returns despite earning income from their law practice and the tax return preparation business. They filed delinquent returns after learning that they were under criminal investigation by the Internal Revenue Service (IRS).
Burton and Pecantte-Burton each face a statutory maximum sentence of 12 months in prison as well as a term of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Finley thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney David Joseph and Trial Attorney Daniel McGraw, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Leavenworth Man Sentenced to 20 Years for Distributing Child PornographyRead the Press Release
WICHITA, KAN. – A Leavenworth man who bragged on the Internet about sexually abusing a 4-year-old girl was sentenced Monday to 20 years in federal prison for distributing child pornography, U.S. Attorney Tom Beall said.
Joshua Grimm, 33, Leavenworth, Kan., pleaded guilty to one count of distributing child pornography. At sentencing, a prosecutor said the investigation started in June 2016 when Grimm began communicating with a detective in Arizona who was working undercover. In a chatroom conversation, Grimm told the detective Grimm had sexually abused a 4-year-old-girl and he sent a photo of the girl. At the time, child molestation charges were pending against Grimm. Grimm told the detective he had “thought about kidnapping a young girl from a park or busy store.”
Beall commended the FBI, an Internet Crimes Against Children Task Force in Arizona and Assistant U.S. Attorney Kim Flannigan for their work on the case.
Laredoan Sentenced for Assaulting Federal Agent to Avoid ArrestRead the Press Release
LAREDO, Texas – A 40-year-old Laredo man has been ordered to prison following his conviction for assaulting a United States Border Patrol (BP) agent and possession with intent to distribute methamphetamine, announced U.S. Attorney Kenneth Magidson. A federal jury sitting in Laredo convicted Jorge Rocha after only 20 minutes of deliberation on July 18, 2016.
Today, U.S. District Judge Marina Garcia Marmolejo, who presided over the trial, ordered Quintanilla to serve a total of 235 months in federal prison to be immediately followed by five years of supervised release.
On Jan. 29, 2016, Rocha had been carrying a concealed bag when a BP agent approached him near the River Drive Mall. According to testimony presented to the jury at trial, Rocha fled when the agent approached and identified himself. The agent pursued Rocha, who discarded a bag concealed underneath his shirt. When the agent caught up to him, Rocha resisted arrest, striking the agent on the face and head. The agent suffered lacerations and bruises during Rocha’s attack. Rocha was forcibly subdued after other agents responded to the call for assistance.
After agents apprehended him, investigators retrieved the bag Rocha dropped while attempting to flee. According to testimony at trial, the bag contained approximately 5.9 pounds of methamphetamine, valued at $188,890.
Rocha will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
BP and the Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorneys Mike Eaton and Julian Castaneda prosecuted the case.
Jury Convicted Former Cay Clubs Chief Financial Officer of Conspiracy, Bank Fraud and Tax OffensesRead the Press Release
The former Chief Financial Officer of Cay Clubs Resorts and Marinas (Cay Clubs) was convicted Friday evening by a federal jury of conspiracy, bank fraud, and tax offenses. The jury verdict was returned after a two-week trial before Chief U.S. District Judge K. Michael Moore.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Timothy Mowery, Special Agent in Charge, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), made the announcement.
David W. Schwarz, 60, of Orlando, was convicted of conspiracy to commit bank fraud, in violation of 18 U.S.C. § 1349, two counts of bank fraud, in violation of 18 U.S.C. § 1344, and one count of interference with the administration of the IRS, in violation of 26 U.S.C. § 7212(a). Schwarz faces a statutory maximum of 30 years in prison for each of the conspiracy and bank fraud offenses, and 3 years for the tax offense. Sentencing is scheduled for May 1, 2017, at the federal courthouse in Key West.
According to evidence at trial, Schwarz was the Vice President and Chief Financial Officer (CFO) of Cay Clubs, which operated purported luxury resorts in the Florida Keys, Clearwater, Orlando, Las Vegas, and elsewhere. Between 2004 and 2008, Cay Clubs grew to more than 1,000 employees and became one of the largest employers in the Florida Keys. Schwarz, who was the one-third owner, and Fred Davis Clark, Jr., a/k/a Dave Clark, who was the two-thirds owner, began Cay Clubs in 2004 with fraudulent sales of Cay Clubs units to insiders, using money from Cay Clubs bank accounts to fund the cash to close for purchases, while obtaining mortgage financing from lending institutions. These fraudulent sales were used in marketing materials to falsely show demand for Cay Clubs units and to inflate prices, as Cay Clubs was in reality purchasing units from itself. Proceeds of these sales were diverted to Schwarz and Clark.
Trial evidence established that Cay Clubs raised more than $300 million from approximately 1,400 investors, who purchased units in Cay Clubs developments. Schwarz and Clark failed to remodel the dilapidated properties as they promised investors, while taking millions of dollars out of the company for their own benefit. During the operation of Cay Clubs from 2004 through 2008, Schwarz and Clark diverted more than $30 million in proceeds for themselves, including millions of dollars in cash transfers, that was used to purchase property and other businesses, including a gold mine, a rum distillery, aircraft, and a coal reclamation business.
Trial evidence further showed that as Cay Clubs faced dwindling sales due to its failure to upgrade the dilapidated properties in 2006, Schwarz, Clark, and others engaged in additional fraudulent sales of Cay Clubs units to insiders, including Clark’s family members. These mortgage loans were used to prevent Cay Clubs from defaulting on commercial debts. The documents used to obtain these mortgages included falsified signatures and notary attestations, and had Cay Clubs acting as the seller while Schwarz provided the cash to close so that mortgage loans could be obtained to fund the sales.
During the course of this scheme, Schwarz and Clark did not file any corporate tax return for $74 million in income generated by the Cay Clubs entities. Furthermore, neither Schwarz or Clark filed any individual tax return for these years until after an investigation of Cay Clubs by the U.S. Securities and Exchange Commission (SEC). In 2010 and 2011, Schwarz filed false individual tax returns for tax years 2004, 2005 and 2006, respectively, in which he substantially underreported his income for these tax years and concealed his receipt of millions of dollars in proceeds.
On December 11, 2015, Dave Clark, 59, formerly a resident of Tavernier, was convicted by a federal jury in connection with related bank fraud charges and obstruction of the SEC. He was sentenced on February 21, 2016, to 40 years in prison by U.S. District Judge Jose E. Martinez. Former Cay Clubs sales executives Barry Graham, 59, and Ricky Lynn Stokes, 54, both formerly of Ft. Myers, previously pled guilty to conspiracy to commit bank fraud in related cases and were sentenced to 60 months, and 30 months, respectively.
Mr. Greenberg commended the investigative efforts of the IRS-CI and FHFA-OIG, and the extensive assistance of the SEC’s Miami Regional Office. This matter is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy, James V. Hayes, and Alison Lehr.
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.
Honesdale Man Pleads Guilty to Distributing Child PornographyRead the Press Release
PITTSBURGH - A resident of Honesdale, Pennsylvania, pleaded guilty in federal court to a charge of distribution of material depicting the sexual exploitation of a minor, Acting United States Attorney Soo C. Song announced today.
Ramon Coca, 27, of Honesdale, Pennsylvania, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that Coca distributed videos containing material depicting the sexual exploitation of minors, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
Judge Fischer scheduled sentencing for July 5, 2017 at 11:30 a.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shaun E. Sweeney is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Coca.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Greeneville Resident Sentenced to 127 Months on Crack Cocaine Conspiracy ChargesRead the Press Release
GREENEVILLE, Tenn. – On Mar. 6, 2017, Fitzroy Turner, 35, of Greeneville, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 127 months in federal prison following a conviction for his leadership role in a conspiracy to distribute large quantities of cocaine base “crack” in the Eastern District of Tennessee. Following his prison sentence, he will also serve a five-year term of supervised release.
According to his plea agreement on file with U.S. District Court, Turner admitted to participating in the sale of crack cocaine on five separate occasions between February and June 2015 to an individual cooperating with law enforcement. He admitted to being accountable for at least 2.8 kilograms but less than 8.4 kilograms of crack cocaine between October 2012 and April 2016. Turner also admitted that he maintained a residence in Greeneville during the conspiracy for the purpose of manufacturing or distributing crack cocaine.
Co-defendants Barry Moore, 40, Zachery Moore, 51, and Sophia Arwood, 31, all of Greeneville, Tenn., were previously sentenced to 210, 96, and 60 months respectively.
Law enforcement agencies participating in the investigation included the Third District Judicial Drug Task Force, Drug Enforcement Administration (DEA) and Tennessee Bureau of Investigation (TBI). Assistant U.S. Attorney Wayne Taylor and former Special Assistant U.S. Attorney Corey Shipley represented the United States.
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Fulton County Contract Supplier Guilty of Giving Kickbacks Tied to Construction of Fulton County Detention CenterRead the Press Release
PADUCAH, Ky. – A Union City, Tennessee, business owner and contract supplier pled guilty today in United States District Court before Senior U.S. District Judge Thomas B. Russell for his role in a conspiracy to defraud Fulton County citizens, through kickbacks and concealment of costs associated with work performed on the 2015 Fulton County Detention Center expansion, announced United States Attorney John E. Kuhn, Jr.
Daniel C. Larcom, 42, pled guilty to three charges including Honest Services Wire Fraud and Wire Fraud for his role in a conspiracy that allegedly involved then Fulton County Jailer Ricky D. Parnell and others.
Larcom is the owner of Danny Larcom Heating & Air, Inc., whose company was awarded a $415,000 contract to install HVAC systems as part of the $3.3 million expansion of the Fulton County Detention Center.
In 2011 Larcom installed a new $4,800 heating and air unit at Parnell’s home and was not paid for the unit but was promised addition contracts involving the jail. In around 2012 or 2013, Parnell contracted with Larcom to replace HVAC equipment in the old jail with new equipment. Larcom estimated the cost at $90,000 for ten new units. Parnell advised Larcom to make the contract for $100,000 and add high end thermostats and that he wanted $5,000 cash for awarding Larcom the contract.
After a couple months, Larcom gave Parnell the $5,000 he demanded by putting $5,000 cash into a coffee cup and meeting Parnell in his pick-up truck. While Larcom was in the truck, Parnell entered the truck, did not say anything, and took the cup with the $5,000 cash kickback. The cash was in $100 bills. Larcom believed that Parnell would not give Larcom any future work if he did not pay the $5,000 kickback.
Further, Parnell asked Larcom to install the HVAC systems for the jail expansion project. Larcom estimated the job would cost $380,000 to $400,000. Parnell allegedly told Larcom to make a bid for $415,000. With Parnell’s endorsement, Larcom was awarded the contract. In return for being awarded the job, Parnell requested that Larcom give Parnell a dual unit HVAC system, a generator, and $15,000 cash. The dual unit HVAC system and generator went to Parnell’s house. The $15,000 was given to Parnell in a coffee cup the same way that the earlier $5,000 kickback was given to him.
Larcom agreed and conspired with Parnell to give Parnell cash and other items of value, specifically HVAC units and generators, so that Parnell would continue to award Larcom and Larcom’s company with contracts for the Fulton County Detention Center, which Parnell could influence because he was the Fulton County Jailer. Larcom’s invoices were paid by Fulton County.
Larcom and Parnell both profited from their arrangement and neither the Fulton County Fiscal Court nor the citizens of Fulton County were ever made aware of the arrangement. In doing so, Larcom had the intent to defraud the citizens of Fulton County through the kickback scheme he entered into with Parnell.
Larcom was charged by grand jury indictment, with co-defendants Ricky D. Parnell, 59, of Hickman, Kentucky; Ronald D. Armstrong, 60, of Dresden, Tennessee; Jimmy Boyd, 56, of South Fulton, Tennessee; and Michael Homra, 79, of Fulton County, on November 15, 2016. Homra and Armstrong recently pleaded guilty to charges and are awaiting sentencing.
If convicted at trial, the defendants could be sentenced to no more than 20 years in prison per count, pay a $250,000 fine for each count, and be sentenced to serve a three-year period of supervised release.
This case is being prosecuted by Assistant United States Attorney Nute Bonner and is being investigated by the Kentucky Attorney General’s Office and the Federal Bureau of Investigation
Fresno County Man Sentenced to 3 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
FRESNO, Calif. — U.S. District Judge Lawrence J. O’Neil sentenced Gary Lee Ortiz, 42, of Auberry, today to three years and one month in prison for being a felon in possession of a handgun with an obliterated serial number, U.S. Attorney Phillip A. Talbert announced.
Ortiz was also ordered to pay $5,200 in restitution to the U.S. Forest Service for damaging public land and natural resources as a result of marijuana cultivation activities on and near his residence in the Mill Creek area of Auberry, California.
According to court documents, on June 8, 2015, law enforcement officers found a large marijuana cultivation operation in the Sierra National Forest adjacent to Ortiz’s property located about four and one half miles from Shaver Lake. During a follow-up investigation of Ortiz’s property, agents seized a total of four firearms. Three of the firearms were found in and around a trailer on Ortiz’s property, and one of the firearms was a Herbert Schmidt, model E 15, .22 LR caliber revolver with the serial number obliterated. At the time, Ortiz was a convicted felon on probation for carrying a concealed weapon in a vehicle.
Law enforcement officers eradicated 12,302 marijuana plants from public land and 444 marijuana plants from Ortiz’s property.
This case was the product of an investigation by the U.S. Forest Service, the Bureau of Alcohol, Tobacco Firearms and Explosives, the California Department of Fish and Wildlife, the Fresno County Sheriff’s Office, and the Fresno County Probation. Assistant U.S. Attorney Karen Escobar prosecuted the case.
Former Postal Employee Convicted at Trial in Scheme to Defraud Worker’s Compensation Program Sentenced to 21 Months in Federal PrisonRead the Press Release
DALLAS — McArthur Baker, 69, a former U.S. Postal Service employee, was sentenced today by U.S. District Judge Sam A. Lindsay to 21 months in federal prison for his role in a scheme to defraud the Department of Labor’s (DOL) Office of Worker’s Compensation Program (OWCP), announced U.S. Attorney John Parker of the Northern District of Texas.
Baker and co-defendant Tonya Evans, 52, both of Dallas, were each convicted following a one-week trial before U.S. District Judge Sam A. Lindsay on one count of conspiracy to defraud the U.S. with respect to claims and one count of false statements or fraud to obtain federal employees’ compensation. Evans is scheduled to be sentenced June 19, 2017.
The government presented evidence at trial that Baker and Evans engaged in a scheme to receive kickbacks in exchange for their completion of falsified medical documentation that was used by co-conspirators to defraud DOL’s OWCP. The government presented further evidence that Baker also falsified forms related to travel he purportedly made for medical services, and as a result, received funds from DOL to which he was not entitled.
Baker began working for the U.S. Postal Service in 1982; he was assigned to work as a mail handler equipment operator. Between 1984 and 2007, Baker filed eight different claims for disability, claiming he suffered from various injuries. As a result of these claims, Baker stopped working in approximately December 2007. He never returned to work but continued to receive disability compensation from December 2007 until at least October 2009. He received more than $68,000 in worker’s compensation payments. He retired from the U.S. Postal Service in October 2009 but he continued to receive disability medical care paid for through DOL, and he continues to be eligible for disability medical care.
Evans began working for the U.S. Postal Service in November 1985; she worked as a clerk primarily with the parcel post distribution machine. She filed disability claims in August 2001, August 2003, and August 2008 claiming that she suffered from various injuries. As a result of these claims, Evans was placed on worker’s compensation in 2001. She received more than $340,000 in worker’s compensation payments. In March 2010, she applied for disability retirement that was approved in October 2011.
Convicted co-conspirator, Larry Washington, was a licensed professional counselor and ran several businesses known as AAA Mental Health, LLC, Mind Spa, Inc., Solutions Health and Rehabilitation, and Convergence Emergence Diversion. Through these businesses, Washington purportedly provided patients with counseling, pain management, chiropractic services, physical therapy, and massage services. His patients were former postal and Veterans Administration employees who had suffered on-the-job injuries and were eligible to receive medical services and worker’s compensation related to those injuries. Earlier this year, Washington pleaded guilty to one count of conspiracy to commit health care fraud and was sentenced in May 2016 to 78 months in federal prison and ordered to pay $7.7 million in restitution.
To maintain and enhance his billings with OWCP, Washington asked claimants, including Baker and Evans, to falsify medical documentation, called “mood inventories,” that indicated they had received services on days they had not. Baker and Evans completed numerous mood inventory forms that contained false information about the days on which Baker and Evans received treatment from Washington or someone working for Washington. Baker and Evans received approximately $100 for each form they completed.
Over the course of the fraud, Baker received a total of at least $3,000 from Washington; Evans received at least $6,000.
As a result of Baker’s falsified documentation, Washington was able to fraudulently bill $105,125 from OWCP. As a result of Evans’ falsified documentation, Washington was able to bill $202,438 from OWCP.
The government presented further evidence that Baker submitted falsified documentation related to travel he purportedly made to receive medical services from Washington and others. He also requested reimbursement for twice the amount of mileage he would have received had he actually received the purported services. As a result, based on fraudulent travel forms he submitted, Baker received more than $3,000.
In addition to Baker and Evans, 20 claimants, four doctors or medical providers, a senior claims examiner at DOL, a claims representative, a Postal employee detailed to the Postal Service Health Resource Management Office, and a medical provider’s employee were charged and convicted in the scheme.
In total, the defendants were able to collectively fraudulently bill the federal government through the OWCP for more than $9.5 million and receive more than $8.7 million in government payments based on their fraudulent billing. The DOL made approximately $11.4 million in payments to these claimants for their compensation and medical services.
The investigation was led by the U.S. Postal Service Office of Inspector General, and the Department of Labor Office of Inspector General, with assistance from Internal Revenue Service Criminal Investigation, U.S. Treasury Office of Inspector General, Social Security Administration Office of Inspector General/Cooperative Disability Investigations Unit, and the U.S. Department of Veterans Affairs Office of Inspector General.
Assistant U.S. Attorneys P.J. Meitl, Nicole Dana and Special Assistant U.S. Attorney Jennifer Bray prosecuted.
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Former New Jersey Attorney General and Chairman of Port Authority Board of Commissioners Sentenced to One Year of Home Confinement for BriberyRead the Press Release
Court Also Fines Him $100,000, Orders Four Years’ Probation
NEWARK, N.J. – David Samson, the former chairman of the Board of Commissioners of the Port Authority of New York and New Jersey, was sentenced today to 12 months of home confinement and four years of probation for using his official authority to pressure the parent company of United Airlines Inc. to institute a non-stop flight from Newark to South Carolina for his personal benefit, U.S. Attorney Paul J. Fishman, Inspector General Michael Nestor of the Port Authority of New York and New Jersey, Office of Inspector General, and Special Agent in Charge Timothy Gallagher of the FBI’s Newark Division, announced.
Samson, 77, of Aiken, South Carolina, who served as New Jersey Attorney General from 2002 to 2003 and was the founding member and chairman of the law firm Wolff & Samson PC, previously pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging him with one count of bribery. Judge Linares imposed the sentence today in Newark federal court.
“We believe that Mr. Samson’s crime, which involved a substantial violation of trust by a high-ranking public official, warranted a significant term of incarceration,” U.S. Attorney Fishman said. “Obviously we’re disappointed in the sentence, but we respect the court’s decision.”
“The investigation, prosecution, and sentencing of David Samson demonstrates that no individual is above the law, and that no government employee may use their official position for personal gain,” Inspector General Nestor said. “The Port Authority Office of Inspector General will continue to fulfill its mission of rooting out corruption, no matter what level it may exist within the Port Authority. We commend our law enforcement partners for their cooperative effort and tireless work.”
“The FBI’s stance on public corruption is that of zero tolerance and therefore one of our highest priorities,” Special Agent in Charge Gallagher said. “We in the FBI believe that public corruption is among the most serious of criminal violations. It is a betrayal of the public’s sacred trust. If allowed to grow, public corruption permeates all aspects of society and affects all other criminal priorities. And if allowed to spread unchecked, public corruption can threaten the very foundation of democracy. These charges reflect the FBI’s commitment to fighting public corruption and we will continue to aggressively pursue those that participate in these types of crimes.”
According to documents filed in this case and statements made in court:
The Port Authority operates Newark Liberty International Airport, one of United’s largest hubs. In September 2011, several months after Samson became the chairman of the Port Authority, he and Jamie Fox, who at the time was a paid consultant and lobbyist for United Continental Holdings Inc. (United), the Chicago-based parent company of United Airlines Inc., met with representatives of United for dinner at a restaurant in New York. (Fox, who was the commissioner of the N.J. Department of Transportation from September 2014 to October 2015 and who was charged separately with conspiring with Samson to commit bribery, died Feb. 20, 2017.)
During that dinner and following a discussion of certain of United’s priorities for Newark Airport, Samson told the United representatives that Continental Airlines Inc., a predecessor of United, used to have non-stop flight route between Newark Airport and Columbia Airport, and that the route had made his travel from New Jersey to his home in South Carolina more convenient. A United representative responded that United generally stopped flying routes because they were not profitable, but told Samson that United would look into reinstating the Newark/Columbia route.
Subsequent to this dinner and additional inquiries from Fox on Samson’s behalf, United concluded that reinstating the Newark/Columbia route would not be profitable and communicated United’s lack of interest to Fox. Samson and Fox used Samson’s official position and authority as chairman of the Port Authority’s Board of Commissioners – which included control over the board’s agenda – to pressure United to reinstate the Newark/Columbia route. In November 2011, Samson and Fox were aware that an agreement between United and the Port Authority relating to United’s construction of a wide-body maintenance hangar at Newark Airport was to be presented to the Port Authority Board for its consideration at its Nov. 5, 2011, meeting. In an email exchange between Samson and Fox on Nov. 2, 2011, Samson and Fox discussed using Samson’s official authority to remove from the agenda the hangar agreement for the purpose of pressuring United to reinstate the Newark/Columbia route. Samson wrote Fox that he was “reviewing current Board agenda items of interest.” Referring to the hangar agreement, Fox suggested to Samson that “[m]aybe it needs further review!!!!!,” to which Samson responded “[y]es, it’s already off this month’s agenda: I hate myself.” Following through on this exchange with Fox, Samson caused the hangar agreement to be removed from the Port Authority Board’s agenda.
In advance of the board’s next meeting on Dec. 8, 2011, Samson and Fox continued to use Samson’s official authority to pressure United. On multiple occasions, Fox communicated to United that its failure to reinstate the route had made Samson angry and was having a negative impact on United’s relationship with the Port Authority. Samson and Fox also discussed further using Samson’s official authority over the board’s agenda to pressure United. On Dec. 7, 2011, the day before the Port Authority Board’s meeting, Samson sent Fox an email telling him that Samson had given instructions to remove the hangar agreement from the agenda. Fox responded that he thought it was a good time to put the agreement back on the agenda and Samson agreed to do so. The Port Authority Board then considered the hangar agreement on Dec. 8, 2011, and approved it. Fox later emailed Samson: “Finally have their [United’s] attention. Having item off/on this week worked,” referring to the hangar agreement.
As a result of the repeated use of Samson’s official authority to pressure United by Samson and Fox, United decided to reinstate the Newark/Columbia route. Based on Samson’s preferred travel schedule to South Carolina, which Fox communicated to United, the airline implemented a weekly schedule that only included flights from Newark Airport to Columbia Airport departing at 6:00 p.m. on Thursdays (with a returning flight the same night) and from Columbia Airport to Newark Airport departing at 6:20 a.m. on Mondays (after a flight to Columbia Airport the evening before). United began flying the Newark/Columbia route in September 2012 and operated the route until March 2014. Samson used the Newark/Columbia route on 27 occasions between October 2012 and January 2014. Samson and others referred to the Newark/Columbia route as the “Chairman’s Flight” and Fox referred to it as “Samson Air.”
In addition to home confinement and probation, Judge Linares sentenced Samson to 3,600 hours of community service and fined him $100,000.U.S. Attorney Fishman credited criminal investigators of the Port Authority, Office of Inspector General, under the direction of Inspector General Nestor; special agents of the FBI, under the direction of Special Agent in Charge Gallagher; and criminal investigators of the U.S. Attorney’s Office, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Vikas Khanna and Lee M. Cortes Jr. and Senior Litigation Counsel J Fortier Imbert of the U.S. Attorney’s Office Special Prosecutions Division and Assistant U.S. Attorney David Feder of the criminal division.
Defense counsel: Michael Chertoff Esq., Washington, D.C., & Justin Walder Esq., Hackensack, New Jersey
Former Howard County Youth Gymnastics Coach Sentenced to Six Years in Federal Prison for Distribution of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced former Howard County youth gymnastics coach Paul Daniel Bollinger, age 57, of Windsor Mill, Maryland, on March 3, 2017, to six years in prison, followed by twelve years of supervised release, for distribution of child pornography. Bollinger worked as a youth gymnastics coach in Maryland for over 30 years prior to his arrest in this case.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief Terrence B. Sheridan of the Baltimore County Police Department; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Baltimore County State’s Attorney Scott Shellenberger
According to his plea agreement, on May 15, 2016, Bollinger distributed computer files containing videos of child pornography using a file sharing program. An undercover Baltimore County Police detective downloaded at least 10 movie files containing child pornography that Bollinger distributed.
On May 25, 2016, investigators executed a state search warrant at Bollinger’s residence. During the search, investigators found a desktop computer powered on and running peer-to-peer file sharing software, and numerous files with titles indicative of child pornography were being shared and downloaded through use of the software. The wallpaper image on the computer monitor depicted a naked female child lying on her stomach. Law enforcement seized the desktop computer, hard drives and other digital media which contained over 40,000 image files and over 100 video files of child pornography. Next to Bollinger’s bed, detectives found over 100 pages of handwritten stories about an adult male having sex with young children.
According to his plea agreement, Bollinger was present during the execution of the search warrant and spoke with law enforcement. He characterized his involvement with child pornography as an obsession and stated that he had been viewing child pornography since approximately 1990. Bollinger advised that he prefers female children aged 8 to 12 years, the same age group of girls that he currently coached, but denied any inappropriate contact with children. Bollinger stated that he had sexual thoughts about a girl he coached in gymnastics and that he was attracted to the “body type” of many of the girls he coached.
Bollinger remains detained.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department, HSI Baltimore, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Matthew J. Maddox, who prosecuted the federal case.
Former First Tennessee Bank Employee Sentenced to Serve Three Years in Prison for Embezzlement of Funds and Tax EvasionRead the Press Release
GREENEVILLE, Tenn. – On Mar. 6, 2017, Kenneth L Miller, 37, of Greeneville, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 36 months in federal prison for embezzlement of funds and tax evasion. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years. He was also ordered to pay restitution in the amounts of $844,254.79 to First Tennessee Bank (First Tennessee), $161,018.00 to the Internal Revenue Service (IRS) and $81,014.18 to two additional victims of his crimes, for a total of $1,086,286.97.
Miller was an employee of First Tennessee from May 2000 until February 2016. In October 2016, he pleaded guilty to an information charging him with one count of theft by a bank officer or employee and four counts of attempting to evade or defeat tax. The plea agreement on file with U.S. District Court details his scheme, which involved a variety of techniques, including: earning and then abusing the trust of various clients by telling them falsely that he would engage in financial transactions for their benefit and using his position as a manager of the bank to identify clients who he knew did not review their monthly statements and also to identify inactive accounts from which to embezzle money because he knew the owners of such accounts would be unlikely to detect the embezzlement. Upon learning of the embezzlement by Miller, First Tennessee reimbursed most of the losses to their accountholders.
Of the total amount he embezzled, Miller obtained approximately $967,573.25 for his personal use. He lost or spent most of this through online gambling on various websites and making payments on various personal consumer debts. Miller did not claim any of these funds as income on his tax returns for 2012, 2013, 2014, and 2015, thus evading paying taxes in the approximate amount of $161,018.
Renae McDermott, FBI Special Agent in Charge, Knoxville Division stated, “The defendant engaged in a pattern of illegal, unauthorized transactions which violated the bank customers’ confidence and trust. Today’s sentencing sends a message that the FBI will actively investigate and pursue prosecution of persons in a position of trust and hold them accountable for their actions.”
Agencies involved in the investigation of this case include the FBI, IRS Criminal Investigation, and Federal Deposit Insurance Corporation. Assistant U.S. Attorney TJ Harker represented the United States.
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Former Charlotte Business Owner Sentenced to Prison on Embezzlement ChargesRead the Press Release
CHARLOTTE, N.C. – On Friday, March 3, 2017, U.S. District Judge Robert J. Conrad, Jr. sentenced a former Charlotte business owner to 12 months and a day in prison on embezzlement charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Cameron Garrison, 37, was also ordered to serve two years under court supervision and to pay $116,245.19 as restitution.
Isabel Colon, Regional Director of Employee Benefits Security Administration’s Atlanta Regional Office of U.S. Department of Labor and John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina join U.S. Attorney Rose in making today’s announcement.
According to court documents and information introduced at the sentencing hearing, from in or about 2008 through in or about 2010, Garrison failed to remit, and converted for his own use, employee contributions which were supposed to be remitted to the Garrison Enterprises 401(k) profit sharing plan. In total, Garrison failed to remit, and converted for his own use, approximately $95,000 in employee contributions to the plan. According to court records, Garrison founded Garrison Enterprises, Inc. (Garrison Enterprises) in 1999 and served as its Chief Executive Officer until his termination in 2010. Garrison Enterprises focused its business on developing web-based applications for data management. The company was administratively dissolved in January 2015, court records show.
According to filed court documents, in or about 2006, Garrison Enterprises established the Garrison Enterprises 401(k) profit sharing plan (the Plan). Garrison was named and served as the trustee of the Plan, with authority to direct the investment of the Plan's assets for the sole benefit of the Plan's participants and beneficiaries. The Plan permitted participants to contribute a portion of their pay to the Plan through payroll deductions, and to take loans out of their account balances in the Plan in certain circumstances and then repay those loans through payroll reductions, collectively referenced to as "employee contributions."
According to court records, from in or about 2008 through in or about 2010, Garrison converted for his own use employee contributions which were supposed to be remitted to the Plan. Court records indicate that after the money was deducted from the employees’ paychecks, instead of remitting the money to the Plan, Garrison maintained the employees’ monies in the general assets of the corporate bank account and then transferred those monies into his personal account. Garrison made those transfers in the form of payroll, car allowances, and loan repayments. In addition, court records show that Garrison withdrew cash and made payments for personal expenses directly from the corporate accounts. According to court records, from in or about 2008 through in or about 2010, Garrison fraudulently failed to remit to the Plan and converted for his own use approximately $95,000 in employee contributions that were due to 21 different recipients, resulting in a loss of between $95,000 and $150,000.
“Theft of employee benefit assets jeopardizes the benefits of workers. This case reaffirms the U.S. Department of Labor’s commitment to protect workers’ benefits by identifying criminal activity wherever and whenever it occurs,” said Isabel Colon, Regional Director of Employee Benefits Security Administration’s Atlanta Regional Office.
Garrison pleaded guilty in September 2016 to one count of embezzlement from employee 401(k). He will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was led by the U.S. Department of Labor’s Employee Benefits Security Administration and the FBI. Assistant U.S. Attorney Maria Vento, with the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Former Bennington City Clerk Sentenced in Two Embezzlement CasesRead the Press Release
TOPEKA, KAN. - A former city clerk for the city of Bennington, Kan., was sentenced Monday to a total of 16 months in federal prison in two separate cases of interstate transportation of embezzled funds, U.S. Attorney Tom Beall said. She also was ordered to pay $184,000 in restitution.
In the first case, Janetta Marie Buttery, 42, Bennington, Kan., pleaded guilty to one count of interstate transportation of stolen funds. In her plea, Buttery said she served as city clerk from October 2014 to May 2016 and left the position before the city discovered the crime. In her position as clerk she had access to credit cards belonging to the city and the city’s Recreation Commission. She used the cards to make unauthorized payments totaling more than $75,000.
In the second case, Buttery pleaded guilty to one count of interstate transportation of embezzled funds while she worked as secretary, bookkeeper and executive assistant to the owner of Realty Associates in Salina, Kan. She embezzled more than $79,000 in the company’s funds to make payments on personal debts belonging to herself and her family members.
Beall commended the FBI and Assistant U.S. Attorney Rich Hathaway for their work on the case.
Final four defendants sentenced to federal prison for roles in multistate drug ringRead the Press Release
HUNTINGTON, W.Va. – Four defendants who participated a multistate drug ring were sentenced to federal prison today, announced United States Attorney Carol Casto. Atari Seantay Brown, 39, of Detroit, was sentenced to 11 years and three months in federal prison for distribution of heroin. Sean Lee Braggs, 27, of Dearborn, Michigan, was sentenced to five years in federal prison for conspiracy to distribute heroin. Deandra Sheen Jones, 42, of Farmington Hills, Michigan, was sentenced to a year and three months in federal prison for conspiracy to distribute heroin and crack. Samuel E. Nelson, III, 37, of Louisville, was sentenced to two and a half years in federal prison for possession with intent to distribute heroin.
From the summer of 2014 to May 2016, Brown admitted that he helped lead a conspiracy to distribute significant quantities of drugs in the Huntington area. During the conspiracy, Brown arranged for the transportation of large quantities heroin and cocaine from Michigan to the Huntington area. Agents were able to make numerous controlled purchases of heroin from Brown and others during the investigation. On September 2, 2016, a confidential informant working at the direction of the Drug Enforcement Administration contacted Brown to arrange for the purchase of heroin. Brown met with the informant at an apartment located at 333 14th Street in Huntington that the group used to store and distribute drugs. Inside the apartment, Brown sold approximately 10 grams of heroin to the informant in exchange for $1,200. Brown also admitted that he possessed firearms during the conspiracy, that he maintained the 14th Street apartment to distribute drugs, and that he served as a leader of the conspiracy.
Braggs admitted that he assisted Brown and others by distributing heroin in the Huntington area, by transporting drugs from Michigan to Huntington, and by transporting money from Huntington to Michigan. On April 18, 2016, Braggs was traveling from Huntington to Michigan when his vehicle broke down in Ohio. Brown arranged for a tow truck to get the vehicle to Michigan. Agents surveilling Brown and Braggs contacted members of the Ohio Highway Patrol and a trooper subsequently conducted a traffic stop of the tow truck in northern Ohio. Agents discovered that Braggs’ vehicle contained a hidden compartment behind the rear seat that concealed $181,490 in cash. Braggs admitted that the hidden cash constituted proceeds from drug sales in the Huntington area.
Jones admitted that she assisted Brown by transporting cocaine from Michigan that was concealed in a rental vehicle. Jones also transported cash from Huntington to Michigan and helped Brown acquire additional heroin in Michigan. On March 26, 2016, Jones arranged for Brown to receive approximately 100 grams of heroin that Brown distributed to Nelson. On April 30, 2016, Jones transported approximately one kilogram of cocaine to Huntington at Brown’s direction. The cocaine was concealed in the spare tire of a rental vehicle Jones was driving. Jones admitted she was aware that Brown intended to convert the cocaine into crack for distribution.
Nelson admitted that he acquired large quantities of heroin from Brown and transported the drugs to the Louisville area for distribution. On April 18, 2016, Nelson traveled from Louisville to acquire heroin from Brown at the 14th Street apartment in Huntington. A trooper with the West Virginia State Police subsequently conducted a traffic stop of Nelson’s vehicle as he traveled toward Interstate 64 to return to Louisville. Law enforcement searched Nelson’s vehicle and discovered approximately 130 grams of heroin concealed in the dashboard.
On May 18, 2016, after a federal grand jury returned an indictment, agents executed arrest warrants and search warrants at eight locations, including residences in Detroit, Proctorville, Ohio, and Huntington. During the searches, agents seized large quantities of heroin, cocaine, crack, and marijuana, as well as an additional $120,531 in cash and 41 firearms.
These prosecutions arose out of a long-term investigation led by the Drug Enforcement Administration, with assistance from the West Virginia State Police, the Putnam County Sheriff’s Department, the Huntington Police Department, the Huntington FBI Drug Task Force, the Ohio Highway Patrol, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Postal Inspection Service.
In addition to Brown, Braggs, Jones, and Nelson, six other defendants were convicted for their roles in this drug ring. Corey Bruce Toney was sentenced to 10 years and three months in federal prison, Arthur James Canada was sentenced to three years and 10 months in federal prison, Matthew Michael Meadows and Tanisha Lynette Wooding were each sentenced to a year and a half in federal prison, and Parker Wyatt Mays and Roy Bills were each sentenced to a year and a day in federal prison for their respective roles in the conspiracy.
Assistant United States Attorney Joseph F. Adams handled the prosecutions. Chief United States District Judge Robert C. Chambers imposed the sentences and presided over these cases.
These cases were 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. 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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Filipino Woman Charged with Stealing $100,000 at Naval Base in JapanRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Filipino woman who fled from Japan to the Philippines before being arrested in Overland Park, Kan., was charged in federal court today with stealing the equivalent of nearly $100,000 at a Naval base in Japan.
Cynthia Lopez Creseni was charged with theft of public money in a criminal complaint filed in the U.S. District Court in Kansas City, Mo. Creseni remains in federal custody pending a detention hearing on Thursday, March 9, 2017.
The federal criminal complaint alleges that Creseni stole the equivalent of $99,068 from Morale Welfare and Recreation (MWR) at the Yokosuka Naval Base in Japan.
According to an affidavit filed in support of the original criminal complaint, the Naval Criminal Investigative Service (NCIS) was notified about the theft of approximately $85,500 and ¥ 1,620,000 (aggregate value of $99,068) from a safe assigned to Creseni at the MWR cash cage. Creseni, who has worked at the base in various positions since 2000, served as the lead cashier of the game/slot room at the time of the theft.
Creseni officially reported the funds missing from her assigned safe after returning from a vacation to the United States in February 2015. Creseni, who denied taking the money, was placed on administrative leave pending the outcome of an investigation.
Interviews of Creseni’s co-workers revealed that she might have had some financial problems, the affidavit says. When investigators attempted to interview Creseni at her residence in Japan, they learned that she had vacated her home, sold it and moved to the Philippines. Efforts were made to locate Creseni in the Philippines, but were unsuccessful. Agents learned that Creseni entered the United States on July 15, 2015.
On Jan. 24, 2017, Creseni was located in Overland Park, Kan., and arrested by federal agents for immigration violations for overstaying her visa.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Kim Moore. It was investigated by the Naval Criminal Investigative Service and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Federal Prosecutors’ Focus on Illegal Guns Results in 4 Recent Convictions for Illegal Weapons Possession and Gun TraffickingRead the Press Release
LOS ANGELES – In three trials last week, federal juries convicted four Southern California men on charges of illegal weapons possession and gun trafficking.
After deliberating for only an hour on Friday, a jury in Los Angeles found two men guilty of illegally selling firearms. Francisco Juantonio Hilt, 39, of Compton, and Sean Ronaldo Alexander, 37, of South Los Angeles, each were convicted of multiple counts of gun trafficking.
Hilt and Alexander were found guilty in relation to seven illegal gun transactions involving a total of 30 guns, including military-style weapons and stolen firearms. The evidence at trial showed that the men believed they were supplying guns to the Armenian Mafia and the “Mexican Cartel,” and the firearms were sold to an individual that Hilt believed was a convicted felon. Both defendants were found guilty of conspiracy and engaging in the business of dealing in firearms without a license. Hilt was also convicted of several counts of being a felon in possession of firearms and sale of a firearm to a prohibited person.
Hilt and Alexander were charged as the result of an operation last year by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) that targeted the sale of guns in and around Compton and Mona Park in Willowbrook. During the course of the year-long investigation, authorities took more than 100 illegally trafficked firearms off the streets, and 14 defendants were charged in federal and state court.
As a result of Friday’s guilty verdicts, Hilt, who has a previous drug conviction, faces a statutory maximum sentence of 90 years in federal prison, and Alexander faces a maximum sentence of 10 years, when they are sentenced on June 5 by United States District Judge R. Gary Klausner.
A third defendant charged in this case – Jamie Maurice Thomas, 38, of South Los Angeles – pleaded guilty in November to conspiracy and selling a firearm to a prohibited person. Thomas faces up to 15 years in federal prison when he is sentenced by Judge Klausner on March 27.
“The availability of illegal firearms dramatically increases the incidence of violent crime,” said United States Attorney Eileen M. Decker. “In each of the cases announced today, convicted felons possessed firearms, and, in two of the cases, the defendants either sold or claimed to want to sell guns. My office is focused on removing felons who would sell or possess firearms from our streets, and our community is safer today with these four defendants facing significant prison time.”
Eric Harden, the Special Agent in Charge of the ATF’s Los Angeles Field Division, stated: “ATF reduces violent crime by partnering with the local law enforcement to identify, investigate, and arrest those who illegally supply firearms to prohibited individuals, and by targeting previously convicted felons who possess firearms. The dedicated personnel of ATF work tirelessly to rid our communities of criminals who have multiple violent convictions and upon release go right back to the streets to commit firearms violence. These solid investigations will result in significant prison time for these individuals, making for safer neighborhoods.”
In a second weapons case that went to trial last week in Los Angeles, a federal jury on Thursday convicted Samir Fouad Benamor, 48, of Torrance, of being a convicted felon who unlawfully possessed a shotgun in violation of federal law. He was convicted after a three-day trial and will be sentenced on June 5 by United States District Judge S. James Otero. At sentencing, Benamor – who has been previously convicted of six different felonies, including domestic violence, drug trafficking and illegal firearms possessiom – will face a statutory maximum penalty of 10 years in federal prison.
The evidence at Benamor’s trial showed that on June 2, 2016, law enforcement officers with the Torrance Police Department conducted a post-release community supervision search of Benamor’s residence and vehicle in Torrance. During the search of Benamor’s vehicle, a Torrance Police Department Detective located a shotgun under the seat of the vehicle. As Benamor had previously sustained a felony conviction, he was prohibited under federal law from possessing the shotgun in his vehicle. Benamor admitted to another Detective that he unlawfully possessed the shotgun, but claimed that he intended to sell it.
“On behalf of the Torrance Police Department, I would like to express my sincere appreciation to the Bureau of Alcohol, Tobacco, Firearms, and Explosives, as well as the United States Attorney’s Office, for their professionalism and dedication in this matter,” said Torrance Chief of Police Mark Matsuda. “Their partnership with us in this case contributed towards our goal of providing a safe and secure community for our residents.”
In the third firearms-related trial last week, a federal jury in Santa Ana on Thursday convicted Tony Eugene Craig, 45, of North Hollywood, of being a felon in possession of a firearm.
On January 8, 2016, members of the United States Marshals Service’s Pacific Southwest Regional Fugitive Task Force located Craig in North Hollywood. Craig. who had absconded from his federal supervised release, was found hiding in a back bedroom after his girlfriend told Task Force members that he was not home. During a protective sweep of the room where Craig was located, law enforcement agents found a loaded .357 Magnum revolver on the floor next to the bed.
Craig had been previously convicted of six different felonies, including domestic violence, drug trafficking and illegal firearms possession. Craig was on supervised release after serving a prison term in relation to a 2003 conviction for conspiracy to distribute cocaine when he was found in possession of the firearm and ammunition.
Craig faces a statutory maximum penalty of 10 years in federal prison when he is sentenced on June 12 by United States District Andrew J. Guilford.
These three cases are representative of the U.S. Attorney’s Office’s focus on working with both federal and local law enforcement partners to address violent crime and to remove criminals possessing illegal firearms from the street. That focus resulted in a more than three-fold increase in prosecutions of those who illegally possessed weapons between 2014 and 2016, and prosecutors expect the number of those cases to continue to rise.
The case against Hilt and Alexander was investigated by ATF and is being prosecuted by Assistant United States Attorneys Veronica Dragalin and Bryant Yang of the General Crimes Section.
The case against Benamor was investigated by ATF and the Torrance Police Department and is being prosecuted by Assistant United States Attorney Matthew W. O’Brien of the General Crimes Section.
The case against Craig was investigated by ATF and the USMS Pacific Southwest Regional Fugitive Task Force and is being prosecuted by Assistant United States Attorney Khaldoun Shobaki of the General Crimes Section.
Federal Case Charges San Bernardino County Father and Son in Conspiracy to Steal Cash from the U.S. Postal ServiceRead the Press Release
RIVERSIDE, California – A father and son have been arrested and charged in federal court in connection with a robbery late last week at a United States Postal Service facility in Victorville.
According to court documents filed on Friday, the father and son – Corey Parker Sr., 46, and Corey Parker Jr., 23, both of Adelanto – also are suspects in a series of Postal truck robberies across Southern California that has caused more than $400,000 in losses.
The Parkers were charged Friday in a criminal complaint filed in United States District Court. The complaint charges both men with conspiracy to rob the Victorville Post Office on Thursday night.
According to the affidavit in support of the criminal complaints, the pair also are believed to have committed a string of postal truck robberies over the last 18 months – thefts that occurred while the trucks were moving or otherwise in transit. During those robberies, the thieves jumped on the back of a postal truck and opened the rear door to steal the truck’s contents, specifically registered mail that included cash, checks and money orders.
The Parkers made their initial court appearances on Friday afternoon, and United States Magistrate Judge Sheri Pym ordered them detained – held without bond – pending trial. A preliminary hearing in this case was scheduled for March 17, and the two men are scheduled to be arraigned on March 22.
“The brazen acts of these defendants demonstrate the lengths to which mail thieves will go, including jumping onto moving vehicles and attempting to rob secure post offices,” said United States Attorney Eileen M. Decker. “This case is the latest of several cases highlighting my office’s focus on criminals victimizing the Postal Service and its customers.”
“This arrest is a result of determination and good old-fashioned police work exhibited by the Postal Inspectors assigned to the case,” said William Hedrick, Postal Inspector in Charge of the Los Angeles Field Office. He added, “A large part of the Postal Inspection Service mission is assuring the safety of postal employees and we want them to have confidence that they can focus on their duties. These types of crimes against postal employees are rare, but when they do occur, they become top priority for us.”
If convicted of the conspiracy charge in the criminal complaint, the defendants each would face a statutory maximum sentence of five years in federal prison.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
This matter is being investigated by the United States Postal Inspection Service, with the assistance of the Rialto Police Department. The case is being prosecuted by Assistant United States Attorney Bilal Essayli of the Riverside Branch Office.
The Parkers are the latest defendants to be charged in relation to crimes affecting the mails and the United States Postal Service.
Other cases prosecuted recently by the United States Attorney’s Office include:
- 33 defendants charged across 28 cases;
- 11 defendants charged across seven cases in the Inland Empire;
- Carlos Canjura, 54 of Van Nuys;
- Chinh Vuong, 48, of Garden Grove;
- Bernie Martinez, 23, and Kammi Leigh Vestesen, 24, both of Corona; and
- Paul Wagner, 28, of Corona.
This representative sample of cases is only a portion of the cases charged by the U.S. Attorney’s Office in which the mail service was victimized. To address the rising problem of mail theft and crimes such as identity theft that flow from mail theft, the Los Angeles-based U.S. Attorney’s Office more than doubled the number of cases charged which were investigated by the United States Postal Inspection Service from 2015 to 2016.