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Friday 3 March 2017
Methamphetamine Distributors Sentenced to Lengthy Federal Prison SentencesRead the Press Release
LUBBOCK, Texas — Two Littlefield, Texas, men, Juan Carlos Lara-Ochoa and Jose Alberto Cibrian, were sentenced this morning before U.S. District Judge Sam R. Cummings for their roles in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Lara-Ochoa, 24, was sentenced to 262 months in federal prison. Lara-Ochoa pleaded guilty in November 2016 to one count of possession with intent to distribute 50 grams or more of methamphetamine. Cibrian, 41, was sentenced to 235 months in federal prison. Cibrian also pleaded guilty in November 2016 to one count of possession with intent to distribute methamphetamine.
According to documents filed in court, on June 1, 2016, officers with the Lubbock Police Department learned that Lara-Ochoa would be delivering about two pounds of methamphetamine to Christopher Paul Andrade in Lubbock. Law enforcement set up surveillance and followed Lara-Ochoa from Littlefield, Texas to the La Michoacana grocery on Clovis Highway in Lubbock. Lara-Ochoa parked in the grocery store’s parking lot, and a short time later, Andrade arrived and parked next to him. Andrade got into the front passenger seat of Lara-Ochoa’s vehicle, stayed for less than one minute, and then exited that vehicle, returning to his. Law enforcement followed Andrade as he drove out of the parking lot, and after a brief pursuit, detained Andrade and found approximately 444 grams of methamphetamine that he had attempted to discard during the pursuit.
Andrade pleaded guilty in August 2016 to one count of possession with intent to distribute methamphetamine in a separate case. He was sentenced on December 1, 2016, by Senior U.S. District Judge Sam R. Cummings to 135 months in federal prison.
Law enforcement observed Lara-Ochoa depart the parking lot and return to Littlefield, where they arrested him. They obtained a search warrant for his vehicle and located a hidden compartment under the front passenger’s seat that contained two separate packages of methamphetamine, weighing a total of 2,230 grams. One of those was packaged exactly the same as the methamphetamine Andrade had discarded. Officers also obtained a search warrant for Lara-Ochoa’s storage unit and found an additional 1,782 grams of methamphetamine and five firearms.
On March 4, 2016, officers with the Littlefield Police Department learned of a suspicious vehicle at a nearby RV park. Upon arrival, officers found Jose Alberto Cibrian passed out in the driver’s seat of that vehicle, with the engine running and the gear shift in the drive position. After removing him from the vehicle, officers found a plastic bag containing methamphetamine in the center console, a methamphetamine pipe, a digital scale and a firearm in a bag in the backseat. Cibrian admitted he had recently purchased the methamphetamine and the firearm.
The Lubbock Police Department, the Littlefield Police Department, the Texas Department of Public Safety and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Sean Long prosecuted.
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Meridian Man Sentenced for Black Bear KillingRead the Press Release
Jackson, Miss – Travis Butler, 30, of Meridian, Mississippi, was sentenced on February 28, 2017, to five years’ probation with five months’ home confinement for violating the Endangered Species Act, and for a felony offense of obstructing the federal investigation that eventually led to his arrest, announced U.S. Attorney Gregory K. Davis and U.S. Fish and Wildlife Service Special Agent in Charge Luis Santiago. Butler was also ordered to pay restitution in the amount of $3,333.33.
Also sentenced in the case were David Lucas Wimberly, 37, of Quitman, Mississippi, and Chester Brad Williams, 52, of Toomsuba, Mississippi, for their help in the taking and possession of the bear. Wimberly and Williams were sentenced in July of 2015 to one year of probation, a $1,000 fine, and a prohibition from hunting for one year. Williams was further placed on home confinement for four months.
On January 4, 2014, Butler arranged for a taxidermist in Quitman, Mississippi, to mount a Louisiana Black Bear illegally killed in the Whynot Community of Lauderdale County, Mississippi. Butler and Williams then transported the bear to Wimberly’s Taxidermy in Quitman. Some 32 days later when federal and state wildlife officers began their investigation into the killing, Butler caused Wimberly to conceal the bear’s hide from a federal investigator.
All men pleaded guilty to violating the Endangered Species Act. Butler also pleaded guilty to obstructing the federal investigation into the killing, a felony. The Louisiana Black Blear was a protected species under the Endangered Species Act until March of 2016, when it was delisted.
United States Attorney Gregory K. Davis commended the work of the federal and state wildlife officers for collaborating effectively in solving this senseless killing. "The efforts of the State of Mississippi in repopulating the Louisiana Black Bear to its natural range would have gone unfulfilled but for the listing of the Louisiana Black Bear years ago as a protected species," said Davis. "Because of the protection and the work of these wildlife officers, the people of Mississippi have the opportunity of enjoying one of nature’s most beautiful creatures for generations to come."
U.S. Fish and Wildlife Service Special Agent in Charge Luis Santiago stated: "We take our mission working with the Mississippi Department of Wildlife, Fisheries, and Parks and the citizens of Mississippi in conserving, protecting, and enhancing fish, wildlife, plants and their habitats very seriously. We will continue working vigorously investigating those who choose to violate state and federal laws."
The investigation in this case was conducted by the United States Fish and Wildlife Service and the Mississippi Department of Wildlife, Fisheries and Parks.
Mason City Man Charged with Receipt and Possession of Child PornographyRead the Press Release
Jeffery Landheer, age 46, of Mason City, Iowa, has been charged with one count of receipt of child pornography and six counts of possession of child pornography. The charges are contained in an Indictment unsealed on March 2, 2017, in United States District Court in Cedar Rapids.
The Indictment alleges that, between 2002 and 2016, Landheer received child pornography. The Indictment also alleges that he possessed child pornography on six different devices.
If convicted, Landheer faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 140 years’ imprisonment, a $1,750,000 fine, $25,700 in special assessments, and at least 5 years and up to life on supervised release following any imprisonment.
Landheer appeared for a detention hearing today in federal court in Cedar Rapids, and the court ordered his release on bond. Landheer’s next appearance for trial is set for May 1, 2017.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Mason City Police Department.
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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 17-3011.
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Maryland Man Sentenced to Life in Prison, Plus 82 Years for Assaulting Five Women at Knifepoint Near Metro StationsRead the Press Release
WASHINGTON - Demetrius Banks, 33, of Riverdale, Md., was sentenced today to life in prison with no possibility of release, plus 82 years, for assaulting five women at knifepoint who were walking home alone from Metro stations. Two of the victims were sexually assaulted.
The sentencing was announced by U.S. Attorney Channing D. Phillips, Peter Newsham, Acting Chief of the Metropolitan Police Department (MPD), and Ron Pavlik, Chief of the Metro Transit Police.
Banks was found guilty by a jury in November 2016 of 23 felony counts, following a four-week trial in the Superior Court of the District of Columbia. Banks was found guilty of three counts of first-degree sexual abuse while armed with aggravating circumstances; one count of attempted first-degree sexual abuse with aggravating circumstances; one count of third-degree sexual abuse with aggravating circumstances; five counts of robbery while armed; four counts of kidnapping while armed; four counts of assault with a dangerous weapon; four counts of threats, and one count of credit card fraud. He was sentenced by the Honorable José M. Lopez.
According to the government’s evidence, the assaults occurred over a one-month period, from July 28 to Aug. 28, 2015, and included this series of attacks:
July 28, 2015: The defendant’s first victim, a 21-year-old cashier, was walking home alone after work, headed from the Fort Totten Metro station at about 10:30 p.m. The victim encountered Banks, a stranger to her, standing in the unit block of Riggs Road NE. As she passed him, he suddenly grabbed her from behind, pressed a knife to her side, and threatened to kill her. He forced her at knifepoint into a dark driveway behind a school. He then raped her and robbed her. The victim was taken to Washington Hospital Center, where she underwent a sexual assault examination, which included collection of forensic evidence.
July 31, 2015: The second victim, a 26-year-old bartender, was walking home from the Fort Totten Metro station at about midnight, in the 800 block of Gallatin Street NE. Banks pretended to be leaving a house on the block, then grabbed the victim from behind and forced her at knifepoint into a dark alleyway, where he robbed her.
Aug. 4, 2015: The third victim, a 26-year-old government employee, was walking home from the Fort Totten Metro station at approximately 10:30 p.m., taking the same route as the first victim. In the unit block of Riggs Road NE - across the street from where the defendant had committed a sexual assault exactly one week earlier - Banks grabbed this victim from behind, threatened her with a knife, and began dragging her by her hair into a nearby wooded area. When a passerby saw the assault and intervened, Banks grabbed the victim’s purse and fled.
Aug. 23, 2015: The fourth victim, a 41-year-old server, was walking home from the Fort Totten Metro station at about 3:30 a.m. when Banks approached her and demanded she give him her property. He was again armed with a knife. This robbery occurred in the 600 block of Gallatin Street NE, a couple of blocks from the July 31, 2015 attack.
Aug. 28, 2015: The fifth victim, a 22-year-old waitress, was walking home from the Brookland Metro station, one stop from the Fort Totten station, at about midnight. Banks pretended to arrive at a house, and when the victim passed him by, he grabbed her from behind and forced her at knifepoint into a dark driveway. In the driveway, he raped and robbed her. The victim was able to escape and ran naked into the middle of the street, where police officers happened to drive by and find her. She was also taken to Washington Hospital Center and underwent a sexual assault examination, which included collection of forensic evidence.
Detectives with the Metropolitan Police Department obtained surveillance footage of the defendant using the fifth victim’s credit card shortly after sexually assaulting and robbing her. This footage was broadcast by the news media, and tips led to the identification of Banks as a suspect. In subsequent forensic testing, the defendant’s DNA was found on evidence collected during the sexual assault examinations of the two victims. The police investigation also uncovered that Banks had used the credit cards of the third and fifth victims at convenience stores shortly after those assaults. In addition, investigation by the Metro Transit Police Department revealed that Banks had been using the Metro cards of both sexual assault victims to travel around the city. When search warrants were executed for the defendant’s home and property with the assistance of the Prince George’s County Police Department, police recovered numerous items of property belonging to the third and fifth victims, as well as victims from unrelated cases. Banks was arrested on Sept. 4, 2015.
In announcing the sentences, U.S. Attorney Phillips, Acting Chief Newsham, and Chief Pavlik commended the work of detectives from the Metropolitan Police Department’s Sexual Assault Unit and Fourth Police District, as well as the Metro Transit Police Department. They also commended those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Patricia A. Riley, Chrisellen Kolb, and Deborah Sines; Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Paralegal Specialists Wanda Trice, D’Yvonne Key, Angelina Slagle, Michelle Wicker, Kathryn Hoey, and Benjamin Kagan-Guthrie; Victim/Witness Advocates Lezlie Richardson, Tracey Hawkins, and Veronica Vaughan; Litigation Technology Specialists Leif Hickling and Anisha Bhatia; David Foster, Katina Adams-Washington, and La June Thames, all of the Victim/Witness Assistance Unit; Criminal Investigators Durand Odom and Mark Crawford; Investigative Analysts William Hamann and Sharon Johnson, and Computer Forensic Examiner John Marsh.
Finally, they acknowledged the efforts of Assistant U.S. Attorneys Jason Park and Julianne Johnston, who investigated and prosecuted the case.
Lincoln Man Sentenced for Possession of Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Frank L. Tonini, 31, of Lincoln, Nebraska, was sentenced today in Lincoln, Nebraska, to 56 months in prison and ordered to pay $5,000.00 in restitution, by United States District Judge John M. Gerrard, for possessing child pornography. After serving his prison sentence, Tonini will be required to serve 5 years of supervised release and register as a sex offender.
In October of 2015 investigators identified Tonini’s IP address as sharing child pornography and obtained a search warrant for his Lincoln residence. During the execution of the search warrant, Tonini was contacted by investigators and admitted to using his computer to download child pornography. A later forensic exam of his computer revealed at least 200 videos of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Lincoln Police Department and the Nebraska Attorney General’s Office.
Lebanese Man Indicted in Connection with Scheme to Smuggle Guns to LebanonRead the Press Release
Fadi Yassine, age 42, a Lebanese citizen, has been charged in a one-count Indictment filed in the Northern District of Iowa with conspiring to violate the Arms Export Control Act and to ship, transport, and deal firearms without a license.
Yassine was arrested on February 5 in New York City as he entered the United States from Lebanon. Yassine was arrested on a warrant issued in the Northern District of Iowa on a criminal complaint charging him with conspiring to violate the Arms Export Control Act. He made an initial appearance in federal court in Cedar Rapids earlier this week. Yassine has been ordered detained without bond pending trial.
According to allegations contained in the Indictment, Yassine conspired with others, including Ali Herz, to ship guns to Lebanon for resale there. The Indictment alleges that firearms were shipped to Lebanon from Cedar Rapids on about four occasions during 2014 and 2015.
Yassine will be arraigned on the Indictment in federal court in Cedar Rapids, on March 7, 2017 at 2:30 p.m.
As with any criminal case, a charge is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by Homeland Security Investigations, the Bureau of Alcohol Tobacco and Firearms, and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 17-CR-00011.
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Leaders of Houston Heroin Distribution Cell Get Life ImprisonmentRead the Press Release
HOUSTON - Two Mexican nationals who resided in Houston have been ordered to prison for life following their convictions of conspiracy to possess with intent to distribute heroin, announced U.S. Attorney Kenneth Magidson. Pedro Herrara-Alvarado, 39, pleaded guilty May 13, 2016, while his brother - Jose Herrera-Alvarado, 33 – entered his plea Nov. 20, 2015.
Today, U.S. District Judge Melinda Harmon handed Pedro Herrara-Alvarado a sentence of life imprisonment. Jose Herrera-Alvarado received the same sentence in January 2017.
The court found that the brothers ran a large-scale heroin distribution network that spanned more than eight years. During that time, they distributed more than 30 kilograms of heroin to a large number of distributors based throughout Texas to include Houston, Galveston, Dallas and Ft. Worth. Judge Harmon also found the Herrera-Alvarado brothers were leaders of the drug trafficking organization and that both engaged in obstructive conduct by engaging in witness tampering of a co-defendant after their arrest. Further, various members of the organization possessed and used firearms during the course of the drug trafficking. Jose Herrera-Alvarado maintained a residence in Houston that he and his brother used to stash and process heroin.
Six other members of the Herrera-Alvarado drug trafficking organization have been sentenced to date. Demetrio Paz-Rodriguez, 54, of Houston, was also sentenced today to 151 months imprisonment. Judge Harmon previously ordered Henry Ortiz Jr., 53, Aaron Raul Cervantes, 23, Genaro Nunez, 30, all of Houston, to federal prison for 130, 38, and 72 months, respectively, while Marinette Woods, 71, of Galveston, received a 52-month-term of imprisonment. Jaime Telles-Santos, 34, a Mexican national who resided in Houston, was previously ordered to serve a 120-month-term of imprisonment.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Casey N. MacDonald is prosecuting the case.
Lake County Resident Pleads Guilty to Conspiring to Manufacture Marijuana in Rockford WarehouseRead the Press Release
ROCKFORD — A Lake County man pleaded guilty today before U.S. District Judge Frederick J. Kapala for his role in a conspiracy to manufacture and distribute marijuana.
JUSTIN T. PAGLUSCH, 35, of Ingleside, pleaded guilty to conspiracy to manufacture 1,000 or more marijuana plants and to distribute marijuana between November 2014 and Jan. 6, 2015, at a warehouse at 1916 11th St. in Rockford.
Sentencing is set for June 23, 2017, at 2:30 p.m.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Celinez Nunez, Special Agent in Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives; Derek Bergsten, Chief of the Rockford Fire Department; and Anthony Scarpelli, Chief of the Skokie Police Department. The Winnebago County Sheriff’s Department Narcotics Unit and the Rockford Police Department Narcotics Unit assisted in the investigation.
On Oct. 6, 2015, in a superseding indictment, a federal grand jury in Rockford charged Paglusch and six other individuals with conspiring to manufacture, possess and distribute 1,000 or more marijuana plants. The indictment alleges that between Jan. 2, 2013, and Jan. 6, 2015, the defendants conspired to illegally grow and store marijuana in the warehouse, which was destroyed by fire on Jan. 6, 2015.
According to Paglusch's written plea agreement, in November 2014 Paglusch’s cousin, JEREMIAH N. CLEMENT, 39, formerly of Des Plaines, asked Paglusch to work with others in a marijuana growing operation at the warehouse. When Paglusch arrived at the warehouse in November 2014, over 1,000 marijuana plants growing on the fourth floor were almost ready to be harvested. There was also a smaller room on the fourth floor that housed the baby or "clone" marijuana plants. As stated in the plea agreement, Paglusch and Clement, along with three other co-defendants, started harvesting the crop of finished marijuana plants in December 2014. The harvested marijuana was weighed and packaged into one pound amounts and vacuum sealed. The processed marijuana was stored in a vault at the warehouse and had a combination lock. Paglusch admitted that during the period of the conspiracy, he was aware that Clement kept a .357 Ruger revolver at the warehouse for protection.
On Jan. 6, 2015, while at a hotel in Rockford, Paglusch learned that the warehouse had burned down in the early morning hours.
Clement previously pleaded guilty to the same charge as Paglusch. Clement was sentenced last year to ten years in prison.
Paglusch faces a mandatory minimum sentence of ten years in prison, a maximum sentence of life imprisonment, a maximum fine of $4 million, and a term of supervised release following imprisonment of at least five years and up to life. The sentence will be determined by the United States District Court, guided by the Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.
Justice Department Sues Edmonds, Washington Landlords for Discriminating Against Families with ChildrenRead the Press Release
The U.S. Department of Justice today filed a lawsuit in U.S. District Court for the Western District of Washington alleging that the owners and manager of three Edmonds, Washington apartment buildings refused to rent their apartments to families with children, in violation of the Fair Housing Act.
“Equal access to housing is essential for all Americans, including families with young children,” said U.S. Attorney Annette L. Hayes of the Western District of Washington. “Particularly in our tight housing market, landlords must follow the law and make units available without discrimination based on race, color, religion, sex, national origin, disability or familial status.”
“The Fair Housing Act prohibits landlords from denying apartments to families just because they have children,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “Many families already face challenges finding affordable housing, and they should not also have to deal with unlawful discrimination.”
“Families should have the same opportunity as anyone else to obtain housing, and not have their options limited simply because they have children,” said Fair Housing Director Barbara Lehman of the Department of Housing and Urban Development’s Region X Office. “HUD will continue working to ensure that home seekers are aware of their housing rights and housing providers meet their responsibility to comply with this nation’s fair housing laws.”
Today’s complaint concerns three apartment buildings – located at 201 5th Ave. N., 621 5th Ave. S., and 401 Pine Street in Edmonds – that are managed by defendant Debbie A. Appleby, of Stanwood, Washington. The properties are owned by three Limited Liability Corporations (LLCs) controlled by Appleby – Apple One, LLC, Apple Two, LLC, and Apple Three, LLC—which are also named as defendants in the suit. The complaint alleges that in March 2014, defendant Appleby told a woman seeking an apartment for herself, her husband, and their one-year-old child that the apartment buildings were “adult only” and therefore not available to her family. The complaint also alleges that at various other times from April 2014 to November 2015, defendants advertised their available apartments as being restricted to adults only. The family filed a complaint with the Department of Housing and Urban Development (“HUD”) which conducted an investigation, issued a charge of discrimination against the defendants, and referred the case to the Department of Justice.
The complaint seeks a court order requiring defendants to cease their discriminatory housing practices, damages for the family that filed the HUD complaint and any other families against whom the defendants discriminated against because they had children, and civil penalties. Any individuals who have information relevant to this case are encouraged to contact the Civil Rights Division at 1-800-896-7743, Option 96.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the U. S. Attorney’s Office and the Civil Rights Division and the civil rights laws it enforces is available at https://www.justice.gov/usao-wdwa/civil-rights and www.usdoj.gov/crt. Individuals who believe that they have been victims of housing discrimination may call the Justice Department at 1-800-896-7743, email the Justice Department at [email protected], or contact HUD at 1-800-669-9777 or through its website at www.hud.gov.
The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
appleby_complaint_1.pdf
The case is being jointly handled by Trial Attorney Kathryn Legomsky for the Civil Rights Division for the U.S. Department of Justice and Assistant United States Attorney J. Michael Diaz for the Western District of Washington.Justice Department Sues Edmonds, Washington Landlords for Discriminating Against Families with ChildrenRead the Press Release
The U.S. Department of Justice today filed a lawsuit in U.S. District Court for the Western District of Washington alleging that the owners and manager of three Edmonds, Washington apartment buildings refused to rent their apartments to families with children, in violation of the Fair Housing Act.
“The Fair Housing Act prohibits landlords from denying apartments to families just because they have children,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “Many families already face challenges finding affordable housing, and they should not also have to deal with unlawful discrimination.”
“Equal access to housing is essential for all Americans, including families with young children,” said U.S. Attorney Annette L. Hayes of the Western District of Washington. “Particularly in our tight housing market, landlords must follow the law and make units available without discrimination based on race, color, religion, sex, national origin, disability or familial status.”
The complaint concerns three apartment buildings – located at 201 5th Ave. N., 621 5th Ave. S., and 401 Pine Street in Edmonds – that are managed by defendant Debbie A. Appleby, of Stanwood, Washington. The properties are owned by three Limited Liability Corporations (LLCs) controlled by Appleby – Apple One, LLC, Apple Two, LLC, and Apple Three, LLC—which are also named as defendants in the suit. The complaint alleges that in March 2014, defendant Appleby told a woman seeking an apartment for herself, her husband, and their one year old child that the apartment buildings were “adult only” and therefore not available to her family. The complaint also alleges that at various other times from April 2014 to November 2015, defendants advertised their available apartments as being restricted to adults only. The family filed a complaint with the Department of Housing and Urban Development (“HUD”) which conducted an investigation, issued a charge of discrimination against the defendants, and referred the case to the Department of Justice.
The complaint seeks a court order requiring defendants to cease their discriminatory housing practices, damages for the family that filed the HUD complaint and any other families against whom the defendants discriminated against because they had children, and civil penalties. Any individuals who have information relevant to this case are encouraged to contact the Civil Rights Division at 1-800-896-7743, Option 96.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the civil rights laws it enforces is available at www.usdoj.gov/crt and https://www.justice.gov/usao-wdwa/civil-rights. Individuals who believe that they have been victims of housing discrimination may call the Justice Department at 1-800-896-7743, email the Justice Department at [email protected], or contact HUD at 1-800-669-9777 or through its website at www.hud.gov.
The case is being jointly handled by the Department’s Civil Rights Division and the U.S. Attorney’s Office for the Western District of Washington.
The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
Judge Sentences Pittsburgh Man to Probation for Conspiring to Distribute CocaineRead the Press Release
PITTSBURGH – A Pittsburgh resident was sentenced in federal court to 5 years’ probation with one year of home detention on his conviction of conspiracy to distribute cocaine, Acting United States Attorney Soo C. Song announced today.
United States District Judge Mark R. Hornak imposed the sentence on John Phillips, 36, of Pittsburgh, PA.
According to information presented to the Court, in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, John Phillips was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Prior to imposing sentence, Judge Hornak stated that the sentence was sufficient but not greater than necessary to fulfill the purposes of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
Acting U.S. Attorney Song commended the Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Phillips.
Illegal Alien Cocaine Trafficker Sentenced to PrisonRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that U.S. District Judge Shelly D. Dick sentenced SILVESTRE GUTIERREZ, age 39, of Mexico, to seventy-eight (78) months in federal prison for his role in attempting to transport approximately six (6) kilograms of cocaine through Baton Rouge in a rental vehicle.
On September 7, 2016, GUTIERREZ pled guilty to conspiracy to possess with intent to distribute a detectable amount of cocaine, in violation of Title 21, United States Code, Section 846, and illegal reentry by a previously removed alien, in violation of Title 6, United States Code, Section 1326(a).
The defendant and his co-conspirators were arrested on February 29, 2016 after law enforcement officers found fifteen (15) vaccum sealed packages of cocaine floating the gas tank of their rental vehicle. Further, the defendant had in his possession the receipts for the items used to vaccum seal the cocaine for transporation in the gas tank of the vehicle. It was also uncovered that the defendant was not legally in the United States and had been previously deported on two prior occasions.
This matter was investigated by the U.S. Drug Enforcement Administration with assistance from the Baton Rouge Police Department. The case was prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.
Honduran National Charged with Illegal Use of Social Security NumberRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JAVIER CANIZALEZ-HERNANDEZ, age 39, from Honduras, was charged today in a one-count Indictment with illegal use of a Social Security Number, in violation of 42 U.S.C. '408(a)(7)(B)
According to the Indictment, CANIZALEZ-HERNANDEZ used a Social Security Number that was not assigned to him to obtain a Louisiana Identification card from the DMV office in Houma.
If convicted, CANIZALEZ-HERNANDEZ faces a maximum term of imprisonment of five years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment.
U.S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement and Removal Operations in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Hinesburg, Vermont Woman and Brooklyn, New York Man Face Federal Charges for Heroin and Crack Cocaine DistributionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Deshawn Livingston, 41, of Brooklyn, New York and Brandy LaRock, 33, of Hinesburg, Vermont have been charged by criminal complaint with possession of heroin and crack cocaine with the intent to distribute such drugs in the Hinesburg, Vermont area.
According to Court documents, the United States alleges that LaRock allowed a man named “Biggie” to stay at her Hinesburg residence on Hillview Terrace to sell heroin and crack cocaine. “Biggie” was later identified as Deshawn Livingston. On March 2, 2017, the Vermont State Police Drug Task Force executed a search warrant at LaRock’s residence and found approximately 50 bags of heroin. Livingston was arrested at LaRock’s home and the Government alleges that he possessed approximately 60 grams of crack cocaine and 16 grams of heroin.
Both LaRock and Livingston appeared today before United States District Court Geoffrey W. Crawford in Burlington. The Government moved to detain both defendants pending trial. LaRock consented to detention subject to proposing a release plan in a few weeks that would include her participation in a residential drug treatment program. Livingston contested detention and, upon the Government’s request for a three-day continuance, Judge Crawford ordered that his detention hearing be held on March 8, 2017.
The United States Attorney emphasizes that the charges contained in the Complaint are merely accusations and that the defendants are presumed innocent unless and until they are proven guilty. If either Livingston or LaRock is convicted, each faces a maximum possible term of imprisonment of twenty years.
The United States is represented in this matter by Assistant U.S. Attorney Jon Ophardt. Livingston is represented by David McColgin, Esq. of the Federal Public Defender’s Office and LaRock is represented by Tom Sherrer, Esq. of Burlington. The investigation was conducted by the Vermont State Police Drug Task Force with assistance from the Homeland Security Investigations of the Department of Homeland Security.
Hammond Man Indicted on Drug and Gun ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DEVONTE WEST, age 21, of Hammond, was indicted on one count of possession with intent to distribute a quantity of heroin and one count of possession of a firearm in furtherance of a drug trafficking crime.
According to court documents, on February 20, 2017, WEST and his cousin MAURICE LLOYD, JR. were victims of a shooting in front of WEST’S residence after WEST and LLOYD completed a drug transaction. Lloyd was fatally wounded in the shooting.
A search of WEST’S residence revealed approximately two ounces of heroin, some Roxicodone pills and multiple firearms. Further investigation led to the recovery of additional heroin that WEST attempted to discard prior to the arrival of law enforcement to his residence after the shooting.
For the drug possession count, WEST faces a maximum term of twenty years imprisonment and a fine of $1,000,000. For the gun possession count, WEST faces a minimum term of five years imprisonment to run consecutive to any other sentence imposed.
U.S. Attorney Polite reiterated that the Indictment is merely an allegation and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration and the Tangipahoa Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Andre’ Jones is in charge of the prosecution.
Former Rocky Hill Resident to Serve Prison Time for Stealing Social Security BenefitsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARYANNE STEPHENS, 69, of Ireland, formerly of Rocky Hill, Conn., was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to three months of imprisonment, followed by one year of supervised release, for stealing Social Security retirement benefits that had been deposited into her deceased mother-in-law’s bank account. Chief Judge Hall also ordered STEPHENS to perform 75 hours of community service while on supervised release, and to pay restitution to the Social Security Administration.
According to court documents and statements made in court, STEPHENS’ mother-in-law began receiving Social Security retirement benefits in 1971. Her mother-in-law died in October 1998. However, approximately $204,000 in Social Security retirement benefits were directly deposited into her mother-in-law’s bank account after her death.
On November 28, 2016, STEPHENS pleaded guilty to one count of theft of public money. In pleading guilty, she admitted that from approximately March 2004 to December 2010, she forged her mother-in-law’s signature on bank checks in order to fraudulently obtain approximately $126,000 in Social Security retirement benefits that were deposited into her mother-in-law’s bank account after her mother-in-law had died. In total, STEPHENS forged her mother-in-law’s signature on 98 bank checks to withdraw the money from the account.
STEPHENS has been released on a $200,000 bond since her arrest on April 20, 2016. She was ordered to report to prison on April 3, 2017.
This matter was investigated by the Social Security Administration Office of Inspector General and was prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
Former Pulaski County Illinois Resident Indicted for Receipt of Child PornographyRead the Press Release
Clint Wade Green, 42, of Paducah, Ky., was indicted on February 23, 2017 on four counts of receipt of child pornography, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. The case is set for trial on April 24, 2017 in Benton, Illinois. Green has been ordered detained pending trial.
The indictment alleges that in October 2015 on four separate occasions, Green knowingly received materials that contained child pornography in violation of Title 18, United States Code, Section 2252A(a)(2)(B). If convicted, Green faces a prison sentence of not less than five years and up to 20 years on each count, a fine of up to $250,000, and up to three years supervised release.
The prosecution is the result of an investigation by the FBI-Marion. The Department of Agriculture Office of Inspector General, the Illinois State Police, and the Paducah Kentucky Police Department also participated in this investigation. The case is being prosecuted by Assistant United States Attorney James G. Piper, Jr.
An indictment is a formal charge against a defendant. Under the law, that charge is merely an accusation and the defendant is presumed innocent unless proven guilty.
Former Arkansas State Senator and Two Others Charged with Bribery and Fraud SchemeRead the Press Release
WASHINGTON – A former Arkansas state senator, a college president and a consultant were charged in an indictment filed for perpetrating a bribery and fraud scheme involving tens of thousands of dollars in bribes provided to the senator and another legislator in exchange for directing approximately $600,000 in government funds to two non-profit entities, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Elser of the Western District of Arkansas.
Jonathan E. Woods, 39, of Springdale, Arkansas, was charged with 11 counts of honest services wire fraud, one count of honest services mail fraud and one count of money laundering. Oren Paris III, 49, also of Springdale, and Randell G. Shelton Jr., 37, of Alma, Arkansas, were each charged with nine counts of honest services wire fraud and one count of honest services mail fraud. The defendants’ arraignments will be scheduled at a later date.
As alleged in the indictment, Woods served as an Arkansas state senator from 2013 to 2017. Between approximately 2013 and approximately 2015, Woods used his official position as a senator to appropriate and direct government money, known as General Improvement Funds (GIF), to two non-profit entities by, among other things, directly authorizing GIF disbursements and advising other Arkansas legislators – including former state representative Micah Neal – to contribute GIF to the non-profits. Specifically, Woods and Neal authorized and directed the Northwest Arkansas Economic Development District, which was responsible for disbursing the GIF, to award a total of approximately $600,000 in GIF money to the two non-profit entities. The indictment further alleges that Woods and Neal received bribes from officials at both non-profits, including Paris, who was the president of a college. The indictment alleges that Woods initially facilitated $200,000 of GIF money to the college and later, together with Neal, directed another $200,000 to the college, all in exchange for kickbacks. To pay and conceal the kickbacks to Woods and Neal, Paris paid a portion of the GIF to Shelton’s consulting company. According to the indictment, Shelton then kept a portion of the money and paid the other portion to Woods and Neal. Paris also bribed Woods, the indictment alleges, by hiring Woods’s friend to an administrative position at the college.
For his part in the scheme, Neal pleaded guilty on Jan. 4, 2017, before U.S. District Judge Timothy L. Brooks of the Western District of Arkansas to one count of conspiracy to commit honest services fraud. Sentencing will be scheduled at a later date.
The charges and allegations contained in an indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI and the Internal Revenue Service investigated the case. Trial Attorney Sean Mulryne of the Criminal Division’s Public Integrity Section and U.S. Attorney Elser and Assistant U.S. Attorneys Kyra Jenner and Ben Wulff of the Western District of Arkansas are prosecuting the case.
Any information regarding public corruption can be provided to the FBI in Little Rock through their public corruption hotline, which is 501-221-8200.
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17-236
Florida Man Arrested for Forcing a San Diego Company’s Website Off-LineRead the Press Release
Assistant U. S. Attorney Alexandra Foster (619) 546-6735
NEWS RELEASE SUMMARY – March 3, 2017
SAN DIEGO – A Florida man was arrested this morning on charges that he intentionally shut down a San Diego software company’s website and refused to restore it until the business paid him money.
Gerard “Jerry” M. McTear III was taken into custody in Ft. Myers, Florida this morning. In an indictment unsealed today, McTear was charged with threatening to damage and intentionally damaging computers. These computers hosted the San Diego software company’s website.
Specifically, on June 6, 2016, the defendant used the internet to shut down the software company’s website. He sought to extort cryptocurrency from the company in return for allowing the website to resume functioning. The company refused to pay the proffered bribe, and lost over $5,000 in business as they worked to get their website back on-line.
The defendant was arraigned today in the United States District Court for the Fort Myers Division, Middle District of Florida. The United States will seek his removal to the Southern District of California to face charges here.
“This kind of sabotage can be devastating for companies,” said Acting U.S. Attorney Alana W. Robinson. “We are prepared to go after every type of criminal, even if we have to chase him or her through cyberspace to safeguard businesses.”
“The FBI has the expertise and resources to investigate denial of service and other evolving cyber crimes,” said Eric S. Birnbaum, Special Agent in charge of the FBI’s San Diego Field Office. “This case is an example of the trend we continue to see involving traditional crimes migrating to cyberspace. The FBI will continue to educate and work with the business community to combat this growing crime trend.”
These type of cyber attacks have recently become widespread and cyber agents with the FBI are investigating similar cases. The FBI encourages businesses that have been victimized to ignore ransom demands in order to avoid appearing vulnerable and to avoid being targeted again for a higher amount. Anyone who feels they have been a victim of a cyber crime involving extortion or denial of service attacks is encouraged to contact their local FBI or to file a complaint through the Internet Crime Complaint Center at www.ic3.gov.
DEFENDANT Case Number: 17-CR-0501-JAH
Gerard “Jerry” M. McTear, III Age:29 Ft. Myers, FL
SUMMARY OF CHARGES
Count 1 – Fraud in Connection with Computers, in violation of 18 U.S.C. §§ 1030(a)(5)(A) and 1030(c)(4)(B)(i)
Maximum Penalty: 10 years and $250,000 fine
Count 2 – Threat to Damage a Computer, in violation of 18 U.S.C. §§ 1030(a)(7)(A) and 1030(c)(3)(A)
Maximum Penalty: 5 years and $250,000 fine
Count 3 - Threat to Injure Property Through Interstate Communications, in violation of 18 U.S.C. § 875(d)
Maximum Penalty: 2 years and $250,000 fine
AGENCY
Federal Bureau of Investigation: San Diego Division and Tampa Division - Fort Myers Resident Agency; Lee County Sheriff's Office; Fort Myers Police Department; and Cape Coral Police Department
*The charges and allegations contained in an indictment are merely accusations. Defendants are considered innocent unless and until proven guilty.
Federal Judge Sentences Lincolnton Man to More Than Nine Years on Child Pornography ChargesRead the Press Release
CHARLOTTE, N.C. – On Thursday, March 2, 2017, Chief U.S. District Judge Frank D. Whitney sentenced a Lincolnton, N.C. man to 112 months in prison on child pornography charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Daniel Lee Rathbone, 38, was also ordered to serve a lifetime of supervised release and to register as a sex offender after he is released from prison.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina and Chief Robert C. Helton of the Gastonia Police Department join U.S. Attorney Rose in making today’s announcement.
According to court documents and information introduced at the sentencing hearing, in or about June 3, 2015, law enforcement became aware that Rathbone was using an online peer-to-peer network to download child pornography. In August 2015, law enforcement executed a search warrant at Rathbone’s residence and recovered a desktop computer. A forensic analysis of Rathbone’s device revealed that he possessed 181 images and 261 videos of child pornography, some of which depicted prepubescent minors engaging in sadistic and masochistic conduct. Some of the images and videos contained identified victims of 38 different series of child pornography. Rathbone also has a previous state conviction for taking indecent liberties with a child.
Rathbone pleaded guilty in October 2016 to one count of receipt of child pornography. He is currently in federal custody and will be transferred to the custody of 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 FBI and the Gastonia Police Department. The U.S. Attorney’s Office prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Dallas Man Sentenced to 324 Months for Role in Violent Kidnapping Attempt, Shooting at Ennis Police Officer During High Speed PursuitRead the Press Release
DALLAS — Jose Cardenas Aguirre, 25, of Dallas, was sentenced yesterday by U.S. District Judge Jane J. Boyle to 324 months in federal prison, following his guilty plea in October 2016 to one count of conspiracy to commit kidnapping, announced U.S. Attorney John Parker of the Northern District of Texas.
Aguirre is a Mexican citizen and was in the United States illegally at the time of the offense. Aguirre will be deported after serving his sentence.
Co-defendants Melissa Trevino, 23, Javier Martinez, 24, Maria Guadalupe Bello, 22, and Indolfo Martinez, 47, who is Javier Martinez’s father, have pleaded guilty to their roles in the kidnapping, cocaine and heroin distribution, and/or firearm offenses in a case related to the attempted kidnapping of an individual because of an unpaid drug debt and are awaiting sentencing.
One remaining defendant charged in the case, Jonathan Benitez, remains a fugitive.
According to plea documents filed in the case, on July 12, 2016, Javier Martinez, along with co-defendants Jose Cardenas Aguirre and Melissa Trevino, planned to kidnap another individual because of an $800 unpaid drug debt involving cocaine. Prior to the planned kidnapping, Javier Martinez and Aguirre purchased rubber gloves, zip ties, and duct tape from Walmart. They wore ballistic vests and black camouflage clothing. In the attempt to kidnap the victim, Martinez and Cardenas Aguirre filed numerous shot into a home in Ennis. The kidnapping was ultimately unsuccessful, and as Javier Martinez, Aguirre, and Trevino fled the scene, they were engaged in a high-speed chase with officers with the Ennis Police Department. During this pursuit, Javier Martinez, using an AR-15 style rifle, fired numerous shots at a police officer. After their car was disabled, Martinez, Cardenas-Aguirre, and Trevino fled from police on foot. Cardenas Aguirre and Trevino were arrested following an eight-hour search. Martinez was apprehended several weeks later.
The case was investigated by the Ennis Police Department and the FBI’s Violent Gang Taskforce. Assistant U.S. Attorney P.J. Meitl prosecuted.
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Cyberstalking Charge Brought in Manhattan Federal Court Against Missouri Man for A Pattern of Harrassment Involving Threats to Jewish Community CentersRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”) and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of a complaint charging JUAN THOMPSON with cyberstalking a particular woman (“Victim-1”), by, among other things, communicating threats to Jewish Community Centers (“JCCs”) in Victim-1’s name. THOMPSON was arrested in St. Louis, Missouri, this morning and is expected to be presented there later today.
U.S. Attorney Preet Bharara said: “Everyone deserves to be free from fear and discrimination based on religion, race, or ethnicity; that is fundamental to who we are as a nation. Together with the FBI and the NYPD, we have been investigating the recent threats made on Jewish Community Centers in New York and around the country. Today, we have charged Juan Thompson with allegedly stalking a former romantic interest by, among other things, making bomb threats in her name to Jewish Community Centers and to the Anti-Defamation League. Threats of violence targeting people and places based on religion or race – whatever the motivation – are unacceptable, un-American, and criminal. We are committed to pursuing and prosecuting those who foment fear and hate through such criminal threats.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Thompson’s alleged pattern of harassment not only involved the defamation of his female victim, but his threats intimidated an entire community. The FBI and our partners take these crimes seriously. I would also like to thank the NYPD and the New York State Police, who continue to work shoulder to shoulder with us as we investigate and track down every single threat and work together to achieve justice for our communities that have been victimized by these threats.”
Police Commissioner James P. O’Neill said: “We will continue to pursue those who peddle fear, making false claims about serious crimes. As alleged, the defendant caused havoc, expending hundreds of hours of police and law enforcement resources to respond to and investigate these threats. I’m grateful for the collaboration between the NYPD detectives, FBI agents, and prosecutors whose cross-country investigation led to this morning’s arrest.”
According to the allegations in the Complaint unsealed today in Manhattan federal court[1]:
In recent months, the FBI and this Office have been investigating a series of threats across the country principally targeting JCCs, schools, and other organizations that provide service to and on behalf of the Jewish community (the “JCC Threats”). Based on the investigation, THOMPSON appears to have made at least eight of the JCC Threats as part of a sustained campaign to harass and intimidate Victim-1. THOMPSON’s harassment of Victim-1 appears to have begun shortly after their romantic relationship ended and to have included, among other things, defamatory emails and faxes to Victim-1’s employer, false reports of criminal activity by Victim-1, and JCC Threats in Victim-1’s name.
In July 2016, an email was sent to Victim-1’s employer that made false allegations about Victim-1, including that she had broken the law, using an internet protocol (“IP”) address that THOMPSON had previously used to access his social media account. On October 15, 2016, an IP address that traced back to THOMPSON’s residence was used to report falsely that Victim-1 possessed child pornography. When confronted by law enforcement on November 22, 2016, THOMPSON claimed that his email account had been hacked a few weeks earlier.
In January and February 2017, THOMPSON appears to have made at least eight JCC Threats as part of his campaign of harassment against Victim-1. For instance, on or about February 21, 2017, the Anti-Defamation League (“ADL”) received an emailed threat at their midtown Manhattan office, which indicated that “[Victim-1’s name and birthdate] is behind the bomb threats against jews. She lives in nyc and is making more bomb threats tomorrow.” The next day, the ADL received a phone call claiming that explosive material had been placed in the ADL’s midtown Manhattan office.
Some of THOMPSON’s JCC Threats appear to have been made in his own name, as part of an effort to claim that Victim-1 was trying to frame THOMPSON for a crime. For instance, on or about February 7, 2017, a JCC in Manhattan received an emailed bomb threat from an anonymous email account, which stated: “Juan Thompson [THOMPSON’s birthday] put two bombs in the office of the Jewish center today. He wants to create Jewish newtown tomorrow.” The email’s use of the phrase “Jewish newtown” appeared to refer to a December 2012 school shooting in Newtown, Connecticut, in which a gunman murdered 26 victims, including 20 children.
In February 2017, a Twitter account that appears to be used by THOMPSON (the “Thompson Twitter Account”) was used to accuse Victim-1 of responsibility for the JCC Threats and claim that Victim-1 was trying to frame THOMPSON for her crimes. For instance, on February 24, 2017, the Thompson Twitter Account posted: “[s]he [Victim-1], though I can’t prove it, even sent a bomb threat in my name to a Jewish center, which was odd given her antisemitic statements. I got a visit from the FBI. So now I’m battling the racist FBI and this vile, evil, racist white woman.” On February 26, 2017, the Thompson Twitter Account posted “The hatred of Jews goes across all demos. Ask NYC’s [Victim-1’s employer]. They employ a filthy anti-Semite in [Victim-1]. These ppl are evil.”
* * *
THOMPSON, 31, of Saint Louis, Missouri, is charged with one count of cyberstalking, which carries a maximum sentence of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the FBI and the New York City Police Department, as well as the United States Secret Service, the St. Louis Police Department, the U.S. Attorney’s Office for the Eastern District of Missouri, and the Computer Crime and Intellectual Property Section of the United States Department of Justice for their ongoing investigative assistance. This investigation, as well as investigations into the other threats made to the Jewish community organizations in New York City are ongoing.
The prosecution is being handled by the Office’s Terrorism & International Narcotics Unit and the General Crimes Unit. Assistant U.S. Attorney Jacob Warren is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Chico Man Sentenced to 10 Years in Prison for Transportation of Child PornographyRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Garland E. Burrell Jr. sentenced Mark McLeod Wygant, 46, of Chico, today to 10 years in prison for transportation of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, from early 2011 to early 2012, Wygant surreptitiously filmed a child on numerous occasions using a hidden cellphone and hidden “spy cameras” that he had purchased for that purpose. He then transported those videos and photos from a location in Butte County to South Lake Tahoe, where he worked at the time as a South Lake Tahoe Fire Department captain. The charges do not relate to any conduct committed during the course of his interaction with the public during his job duties. Wygant has been in custody since his arrest on January 29, 2015.
This case was the product of an investigation by the Federal Bureau of Investigation and the South Lake Tahoe Police Department. Assistant U.S. Attorney Matthew G. Morris prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Centerville Man Sentenced for Firearm and Heroin OffensesRead the Press Release
Reginald J. Coleman, 26, of Centreville, Illinois was sentenced on March 3, 2017 to 46 months of imprisonment for possession with intent to distribute heroin and for being a felon in possession of a firearm, Donald S. Boyce, U.S. Attorney for the Southern District of Illinois, announced today.
Coleman pled guilty to the two federal charges on September 30, 2016. At his change of plea hearing in September, Coleman admitted that he had possessed heroin packaged for sale, and three firearms, at his mother’s Centreville residence on October 14, 2015. Coleman was arrested during the course of a state "parole compliance check." He has been continuously confined on state and federal charges since his arrest in October, 2015.
The investigation which resulted in Coleman’s arrest and conviction was conducted by the federal Bureau of Alcohol and Firearms and by the St. Clair County Probation Office. The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Buffalo Man Pleads Guilty to Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Joshua Butler, 42, of Buffalo, NY, pleaded guilty to possession of child pornography before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that on April 13, 2016, Butler was convicted in state court of one count of promoting a sexual performance by a child, and subsequently sentenced to 10 years probation. On July 19, 2016, an Erie County Probation Officer searched Butler’s residence and recovered two cellular phones with internet capabilities, which Butler was prohibited from having. A forensic examination determined that one phone contained over 300 images of child pornography, some of which depicted children under the age of 12, as well as images of violence.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen, and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for June 13, 2017 before Judge Vilardo.
Bronx Man Convicted in Manhattan Federal Court of 2013 Double Murder of Two CousinsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ORANE NELSON, a/k/a “Amaze,” 28, was convicted today of murdering Jennifer Rivera and Jason Rivera on January 16, 2013, in the Bronx, in connection with a dispute over a drug debt, as well as narcotics conspiracy and firearms possession charges. At the time of their murders, Jennifer Rivera was 20 and Jason Rivera was 30. The jury convicted NELSON on all four counts in the controlling indictment following a two-week trial before U.S. District Judge Denise L. Cote.
U.S. Attorney Preet Bharara stated: “Orane Nelson executed two people in cold blood over a drug debt. He killed Jason Rivera over a drug debt, and Jennifer Rivera – a 20-year-old college student who had nothing to do with that drug debt – just because she was there. Today’s unanimous jury verdict finding Nelson guilty on all counts ensures Nelson will be held to account for his violent and callous crimes.”
According to court papers and evidence admitted at trial:
From 2011 to 2013, ORANE NELSON, a/k/a “Amaze,” was a crack dealer in the Bronx who also carried guns to protect his drug business. In January 2013, NELSON had a dispute with Jason Rivera over a drug debt owed by NELSON. Following the dispute, NELSON decided to murder Jason Rivera, and lured Jason Rivera out to a location in the Bronx with the promise of money to be paid for the debt owed. Jason Rivera brought along his 20-year-old cousin, Jennifer Rivera, who was not involved in any drug trafficking activities, to pick up the money promised by NELSON. Shortly after midnight, NELSON and an accomplice entered Jason Rivera’s vehicle, and minutes later executed both Jason Rivera and Jennifer Rivera by shooting them each in the head at close range. Jennifer was killed because she was a witness to the murder of Jason Rivera.
For these activities, NELSON was convicted of one count of conspiracy to distribute narcotics, which carries a mandatory minimum sentence of 10 years in prison and a maximum of life, one count of possession of firearms in furtherance of a narcotics conspiracy, which carries a mandatory minimum sentence of five years in prison and a maximum of life, to be served consecutively, and two counts of causing the death of another through use of a firearm, each of which carries a mandatory minimum sentence of 25 years in prison and a maximum of life, to be served consecutively. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
NELSON is scheduled to be sentenced on June 23, 2017, before Judge Cote.
U.S. Attorney Bharara praised the FBI and the NYPD for their outstanding work in this investigation.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Jared Lenow and Jessica Feinstein are in charge of the prosecution.
Bridgeport Man Pleads Guilty to Sex Trafficking of A MinorRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BRANDON WILLIAMS, also known as “14K,” 35, of Bridgeport, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of sex trafficking of a minor.
According to court documents and statements made in court, in July and August 2015, WILLIAMS caused a minor female, who he knew was under the age of 18, to engage in commercial sex acts. The minor victim’s sexual services were advertised on the internet websites Backpage and Cityvibe, and WILLIAMS rented hotel rooms in which he and the minor victim stayed.
The charge of sex trafficking of a minor carries a maximum term of imprisonment of life. A sentencing date is not yet scheduled.
WILLIAMS has been detained since his arrest on related state charges on August 26, 2015.
This matter is being investigated by the Federal Bureau of Investigation and Homeland Security Investigations, with the assistance of the Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorneys Sarala V. Nagala and David E. Novick.
Bogalusa man pleads guilty to cocaine distributionRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that a Bogalusa man pleaded guilty Wednesday to possession with intent to distribute cocaine.
Craig Antwon Jefferson, 30, of Bogalusa, La., pleaded guilty before U.S. Magistrate Judge Kathleen Kay to one count of possession with intent to distribute a controlled substance. The plea will become final when accepted by U.S. District Judge Patricia Minaldi. According to the guilty plea, law enforcement officers pulled over Jefferson’s vehicle April 14, 2016 on Interstate 10 in Calcasieu Parish for a traffic violation. An officer searched the vehicle and found 6.5 pounds of cocaine and 6 grams of marijuana in a backpack.
Jefferson faces 10 years to life in prison, eight years of supervised release and a $8 million fine. The court set a sentencing date of May 22, 2017.
Homeland Security Investigations and the Calcasieu Parish Combined Anti-Drug Task Force conducted the investigation. Assistant U.S. Attorney Robert F. Moore is prosecuting the case.
Biller for Medical Equipment Provider Sentenced to Four Years in Federal Prison for Health Care Fraud, Aggravated Identity Theft and Defrauding the IRS by Failing to File Tax ReturnsRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Elma Myles, age 52, on March 2, 2017, to four years in prison, in connection with her role in a health care fraud scheme, aggravated identity theft, and conspiracy to defraud the United States for failing to file income tax returns. Judge Garbis also ordered Myles to pay restitution of $1,207,585.38 to Medicaid.
The sentencing was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Acting Special Agent in Charge Thomas J. Holloman of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office and Chief Terrence B. Sheridan of the Baltimore County Police Department.
According to Myles’ plea agreement, she worked as a biller at RX Resources and Solutions (RXRS), a durable medical equipment located in Randallstown, Maryland. Myles conspired with Harry Crawford, the owner of RXRS, and others causing RXRS to bill for adult incontinent supplies (diapers) that were never provided, overcharge for supplies actually delivered, and bill for supplies that were unneeded and had not been prescribed by a physician.
At her plea hearing, Myles admitted that she worked closely with Crawford and both were the managers/supervisors of all business activities at RXRS. Myles and Crawford lived together and were once domestic partners. Myles used the personal identity information of clients to submit fraudulent claims to Medicaid and other health care benefits programs for incontinent supplies that were not delivered to the beneficiary and delivered medical supplies to beneficiaries who did not need the supplies and whose physicians had not prescribed the supplies, even after the beneficiaries reported that they did not want or need the supplies.
On February 4, 2014, federal agents executed a search warrant at RXRS and Myles and Crawford’s home. Agents recovered almost $60,000 in cash from a clothes bin beside the bed in Crawford’s room. In addition, Myles had made a makeshift closet containing tens of thousands of dollars’ worth of clothing and designer shoes, including apparel for her then three-year-old granddaughter who competed in beauty pageants. Evidence offered at the sentencing reflected expenditures of more than $167,000 at luxury retailers to include Gucci, Michael Kors and Nieman Marcus. Agents also recovered boxes of patient files from the house.An analysis of RXRS billing of Medicaid from 2007 through 2014 establishes that the loss to Medicaid just for incontinent supplies billed but not provided is approximately $1.2 million. A review of bank records shows that Myles and Crawford used the proceeds of the fraud directly for the accounts of RXRS, using a significant portion of the proceeds for their personal benefit, including clothing, personal cars, mortgage payments, payments to Myles’ daughter and to a business entity set up for the benefit of Myles’ daughter, to a private school for their granddaughter, personal travel, restaurants, and hosting social events.
The IRS determined that Myles owes $40,194.36 in federal taxes and $13,000 for state taxes for tax years 2010 through 2013 as a result of the conspiracy to defraud the United States by not reporting or paying taxes on the proceeds of the fraud. Judge Garbis ordered Myles to pay restitution in those amounts.
Harry Crawford, age 56, of Baltimore, Maryland, pleaded guilty to collection of a debt by extortionate means from victim David Wutoh; to health care fraud conspiracy; and to conspiracy to defraud the United States. Judge Garbis scheduled sentencing for Crawford on March 28, 2016, at 11:30 a.m. Crawford is released under the supervision of U.S. Pretrial Services.
Co-defendant Matthew Hightower, age 34, also of Baltimore, was convicted of extortion and the murder of David Wutoh on September 22, 2016, after a seven-day trial and sentenced to 380 months in prison. Health care fraud charges remain pending and a trial date has not been set.
United States Attorney Rod J. Rosenstein commended the HHS-OIG, IRS-CI, and Baltimore County Police Department for their work in the investigation, and thanked the Maryland Attorney General’s Office Medicaid Fraud Control Unit for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Aaron S.J. Zelinsky, Judson T. Mihok and Sandra Wilkinson, who are prosecuting the case.
Berkeley County man admits to lying to a federal agentRead the Press Release
MARTINSBURG, WEST VIRGINIA – James Eldon Osborne, 22, of Inwood, West Virginia, was convicted today in federal court for making a false statement, Acting United States Attorney Betsy Steinfeld Jividen announced.
Osborne admitted he lied to an agent with the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives during questioning about the sale of a firearm in Berkeley County, West Virginia in March 2016.
Osborne pled guilty to one count of “Making a False Statement.” He faces up to five years in prison and a fine up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Anna Z. Krasinski prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.U.S. Magistrate Judge Robert W. Trumble presided.
$6 million DOD Fraud, $1 million paid in illegal gratuities, 5 charged with tax violationsRead the Press Release
PITTSBURGH – Acting United States Attorney Soo C. Song announced today that five Informations have been filed in federal court in Pittsburgh charging three local residents and two residents of the greater Detroit area with crimes ofmajor fraud against the U.S. Department of Defense, tax violations and illegal gratuities.
Thomas G. Buckner, 65, of Gibsonia, Pennsylvania, and his brother, John P. Buckner, 67, of Lyndora, Pennsylvania, were each named in three count Informations charging them in one count with defrauding U.S. Army Tank-Automotive and Armaments Command (TACOM), and two counts of income tax evasion.
According to the Informations filed with the court, the Buckner brothers were 50/50 owners of Ibis Tek, LLC (hereinafter Ibis Tek). Ibis Tek’s main office was located at 912 Pittsburgh Street, Butler, Pennsylvania 16002, and it had an office at Ibis Tek Victory Road facility, 220 South Noah Drive, Saxonburg, PA 16056. Ibis Tek manufactured both military and commercial products but specialized in the development of transparent armor and accessory products for tactical and military combat vehicles. Ibis Tek itself was not charged with any violations.
TACOM, located in Warren, Michigan, was responsible for letting and overseeing contracts on behalf of the U.S. Department of Defense, including contracts concerning High Mobility Multipurpose Wheeled Vehicle (hereinafter Humvees). Ibis Tek had a subcontract to produce Vehicle Emergency Escape Window (VEE Window) Kits for Humvees. The Buckners inflated Ibis Tek’s costs to manufacture the VEE Window kits by creating Alloy America, LLC, (Alloy) a company that the Buckners controlled, by using Alloy to purchase the frames in China for $20 per frame, and by using false invoices from Alloy to make it appear that Ibis Tek paid $70 per frame. In addition, the Buckners sold scrap aluminum collected in the manufacturing process but failed to credit that money to TACOM. The losses to TACOM were $6,085,709.
Both Buckner brothers were charged with income tax evasion for 2009 and 2010 for not reporting the cash from sales of scrap aluminum, and for taking unallowable business deductions described below.
Harry H. Kramer, 52, of Wexford, Pennsylvania, was named in a three count Information charging him in Count One for his role as CFO of Ibis Tek in the above described major fraud against TACOM. Counts Two and Three charge him with filing false returns for Ibis Tek for 2009 and 2010.
David S. Buckner, of Warren, Michigan, (no relation to Thomas or John Buckner) was named in a one count information charging him with impeding the IRS by acting as a financial intermediary who received and then paid out money to Anthony Shaw, for the purpose of concealing that the monies were income of Shaw, concealing the true source of the monies, and concealing the purpose for the monies. David Buckner owned D & B Cycle Parts and Accessories.
Anthony A. Shaw, 55, of Rochester Hills, Michigan, was named in a five count Information. Shaw, then a civilian employee at TACOM, was a Deputy Project Manager responsible for directing development of and managing government contracts for combat vehicle systems such as Humvees. Shaw is charged in Counts One and Two with demanding and receiving a total of $1,055,500 of illegal gratuities paid by checks and wire transfers by Thomas Buckner to and through D & B Cycle Parts and Accessories for Shaw. Counts Three and Four charge Shaw with income tax evasion for 2009 and 2010 for not reporting payments from Thomas and John Buckner totaling in excess of $1,000,000. In Count Five Shaw is charged with making false statements when he denied that he had socialized with Thomas Buckner and John Buckner, and denied that he had traveled in a car, boat and an airplane owned by Thomas Buckner or John Buckner.
For Thomas and John Buckner, the law provides for a maximum total sentence of 20 years in prison, a fine of $1,500,000, or both. For Kramer, the law provides for a maximum total sentence of 16 years in prison, a fine of $1,500,000, or both. For David Buckner, the law provides for a maximum total sentence of 3 years in prison, a fine of $250,000, or both. For Shaw, the law provides for a maximum total sentence of 19 years in prison, a fine of $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
Special Agents of the Department of Defense, Defense Criminal Investigation Service, the Internal Revenue Service, Criminal Investigation, and the U.S. Army Criminal Investigation Division conducted the investigation leading to the filing of charges in this case.
A criminal Information is an accusation.
A defendant is presumed innocent unless and until proven guilty. The filing of an Information generally indicates that the defendant intends to enter a guilty plea.
Thursday 2 March 2017
Wounded Knee Woman Sentenced for Assault with the Intent to Commit Murder and Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Randolph J. Seiler announced that a Wounded Knee, South Dakota, woman convicted of Assault with the Intent to Commit Murder and Assault Resulting in Serious Bodily Injury was sentenced on February 27, 2017, by Chief Judge Jeffrey L. Viken, U.S. District Court.
As to the charge of Assault with the Intent to Commit Murder, Phyllis Lucero, age 48, was sentenced to 20 years in custody, 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. As to the charge of Assault Resulting in Serious Bodily Injury, Lucero was sentenced to 10 years in custody, 3 years of supervised release and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. The sentences were ordered to be served concurrently.
The conviction stems from Lucero, Daniel Hess, a/k/a Jason Hess, and Seth Hernandez, driving to a 73-year-old woman’s home on the evening of October 17, 2015, and breaking in with the intent to assault two victims and steal property, mainly cash. The three defendants wore masks covering their faces in order to disguise their appearances. Once the three masked individuals gained entrance to the home, the two male defendants assaulted and strangled the adult male victim until he was unconscious.
Lucero assaulted the 73-year-old female victim with her hands, feet and a dangerous weapon. As the elderly woman was lying in a pool of blood, the defendants went in and out of the home, removing personal property and loading it into the victim’s brand new pickup truck. Thinking the woman was dead, Lucero, Hess, and Hernandez fled the residence in the victim’s truck. Hess drove Lucero and Hernandez to separate locations within the Pine Ridge Reservation before returning to the victims’ home. When Hess returned a second time, he removed additional personal property and bound the male victim’s ankles with an electrical cord and his hands with duct tape. Hess also bound the elderly woman’s hands and ankles with duct tape.
Upon being transported to the Rapid City Regional Hospital and admitted to the Intensive Care Unit, both victims were found to have extensive bruising and lacerations to their heads, bleeding on their brains, and rib fractures. The elderly woman had several lacerations to her face and head, which required 17 staples to secure.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, and Federal Bureau of Investigation. Assistant U.S. Attorneys Megan Poppen and Ben Patterson prosecuted the case.
Lucero was immediately turned over to the custody of the U.S. Marshals Service.
Waterbury Man Pleads Guilty to Enticing Minors to Engage in Sexual Activity on SkypeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN EASTMAN, 49, of Waterbury, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of enticing minors to engage in sexually explicit conduct during online video chats.
According to court documents and statements made in court, between June and November 2012, EASTMAN engaged in video chats with minors over the internet using his computer and online video chatting services such as Skype. During these video chats, EASTMAN enticed the minors to engage in sexually explicit conduct, which EASTMAN recorded and/or photographed and then saved on his computer. In order to deceive and entice the minors, EASTMAN posed as famous singers and musicians that are popular to teenagers.
In pleading guilty, EASTMAN admitted that on approximately November 6, 2012, he used the screen name justin.bieber727 to communicate via Skype with a female who was under the age of 18. During the video chat, EASTMAN asked the minor to expose herself and pose in a sexually explicit manner. EASTMAN then saved on his computer a still image of the female exposing herself.
Judge Shea scheduled sentencing for May 25, 2017, at which time EASTMAN faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
EASTMAN has been detained since his arrest on related state charges in May 2013.
This matter is being investigated by Homeland Security Investigations and the Waterbury Police Department. The case is being prosecuted by Assistant U.S. Attorneys Neeraj N. Patel and Anastasia E. King.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Warrenton Man Pleads Guilty to Possession of an Unregistered FirearmRead the Press Release
ALEXANDRIA, Va. – Seth Shaver, 26, of Warrenton, pleaded guilty today to possession of an unregistered firearm.
According to the statement of facts filed with the plea agreement, on Aug. 24, 2016, officers of the Warrenton Police Department (WPD) responded to Shaver’s home for a report of a shooting. During a subsequent search, law enforcement recovered several firearms, including a 12-gauge pump action shotgun and two silencers.
On Oct. 22, 2016, law enforcement was again called to Shaver’s home for a report of a domestic disturbance. During a subsequent search, law enforcement recovered a semi-automatic rifle hidden in an air vent. The semi-automatic rifle was originally sold to Shaver as a pistol through a licensed federal firearms dealer. Shaver later modified the pistol into a short-barreled rifle.
Shaver faces a maximum penalty of 10 years in prison when sentenced on June 9. 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; Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; and Louis Battle, Chief of Warrenton Police, made the announcement after the plea was accepted by Senior U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Colleen E. García is 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. 1:16-cr-306.
Wakpala Woman Indicted for Conspiracy and Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Wakpala, South Dakota, woman has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance and Possession with Intent to Distribute a Controlled Substance.
Brooke Malenia Ducheneaux, age 30, was indicted on January 19, 2017. She appeared before U.S. Magistrate Judge Mark Moreno on February 22, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years in custody and/or a $1,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between March 1, 2014, and January of 2017, Ducheneaux knowingly and intentionally conspired to distribute and possess with the intent to distribute methamphetamine, a Schedule II controlled substance, in South Dakota. The indictment further alleges that on March 14, 2016, in Dewey County, South Dakota, Ducheneaux did knowingly and intentionally possess methamphetamine with the intent to distribute it.
The charges are merely accusations and Ducheneaux is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Ducheneaux was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Vero Beach Couple Sentenced to Lengthy Federal Prison Terms for Importing Controlled Substances, “Molly,” from ChinaRead the Press Release
On February 28, 2017, in Fort Pierce, Florida, a Vero Beach husband and wife were sentenced to federal prison by United States District Court Judge Robin L. Rosenberg, for their involvement in a conspiracy to import controlled substances, commonly referred to as “Molly,” from China into the United States.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, and Adolphus P. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, made the announcement.
Julius Andrew Reason, III, 32, was sentenced to 235 months’ imprisonment, to be followed by three years of supervised release, after previously pleading guilty to conspiracy to import a controlled substance, Dibutylone- HCI, in violation of Title 21, United States Code, Sections 952(a) and 963; and conspiracy to manufacture, distribute, and possess with intent to manufacture and distribute a controlled substance- Dibutylone HCI, in violation of Title 21, United States Code, Sections 846 and 841(a)(1).
Reason’s wife, Venteria Leanet Reason, 28, was sentenced to 135 months’ imprisonment, to be followed by three years of supervised release, after pleading guilty to conspiracy to import a controlled substance- Dibutylone HCI, in violation of Title 21, United States Code, Sections 952(a) and 963.
According to Court records, in January of 2016, U.S. Customs and Border Protection (CBP) officers conducted a border search of an international mail parcel shipped from Shanghai, China, destined for a U.S. Post Office (P.O.) Box located in Vero Beach, Florida, and found the parcel to contain approximately one kilogram of Dibutylone HCI, a synthetic cathinone, a/k/a “bath salts,” a schedule I controlled substance. The Reasons convinced a co-defendant to open a P.O Box. On January 14, 2016, Julius Reason contacted the Vero Beach Post Office, inquiring about the whereabouts of two parcels. On January 15, 2016, Julius Reason was notified that his packages were ready for pickup. A codefendant then visited the post office and picked up the packages, before meeting Julius Reason and turning over the parcels. When Julius Reason saw law enforcement he fled from the scene, throwing both parcels.
During the course of the investigation, law enforcement seized items including, a loaded 9mm firearm from Julius Reason’s vehicle and electronic devices, wire transfer records, Chinese chemical company business cards, and $10,168.00 in U.S. currency from his residences.
The investigation further revealed that between June 2014 and January 2016, Julius Reason and his wife Venteria Reason sent wire transfers to China exceeding $59,000. Julius and Venteria Reason, exchanged communications with two separate Chinese chemical company representatives discussing prices and ordering synthetic cathinones, including Dibutylone and Ethylone, Schedule I controlled substances. The defendants also communicated by text message regarding the local delivery and sales of another controlled substance, commonly referred to as “Molly.”
Between June 2014, and January 18, 2016, at least 20 parcels were shipped from China to U.S. P.O. Boxes and addresses linked to Julius and Venteria Reason, in the Southern District of Florida. Five of those parcels were seized by law enforcement and thirteen parcels were delivered. Ultimately, they were held responsible for over 10 kilograms of Ethylone and Dibuylone.
Mr. Ferrer commended the investigative efforts of ICE-HSI, the USPIS and DEA. Mr. Ferrer also thanked the Indian River Sheriff’s Office for their assistance with this matter. This case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.
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.
Utah Couple Sentenced for Bank Fraud and Bankruptcy FraudRead the Press Release
COEUR D'ALENE – Cortney S. Valentine, 40, and Nicolette P. Valentine, 37, husband and wife, both of Liberty, Utah, were sentenced Tuesday for bank fraud, false declaration under penalty of perjury and concealment of assets in connection with a bankruptcy case, Acting U.S. Attorney Rafael Gonzalez announced. Senior U.S. District Judge Edward J. Lodge sentenced Cortney Valentine to 40 months in prison, to be followed by five years of supervised release and ordered restitution payable at a later date. Judge Lodge sentenced Nicolette Valentine to time served, to be followed by five years of supervised release, and 200 hours of community service and ordered restitution payable at a later date. Cortney Valentine pleaded guilty on November 1, 2016, and Nicolette Valentine pleaded guilty on June 23, 2016.
According to Cortney Valentine’s plea agreement, he defrauded U.S. Bank when he made material false statements causing U.S. Bank to lend him $362,000. Later, Valentine and his wife, Nicolette, filed for relief under bankruptcy separately in different states. In November 2011, Cortney Valentine contracted to sell a home to a third party for $1,150,000. Cortney Valentine should have reported to the bankruptcy court any proceeds from the sale of the home. Instead, he used the money to support himself. Cortney Valentine made numerous false statements on the bankruptcy filings and concealed the funds he received from the third party purchaser.
According to Nicolette Valentine’s plea agreement, she defrauded Mountain West Bank when she made material false statements causing Mountain West Bank to lend her $43,766.27 to refinance a truck. Instead of paying off the existing truck loan so that Mountain West Bank could obtain clear title to the collateral, Nicolette Valentine deposited the proceeds into her bank account and used the money for living expenses. In May 2012, Nicolette Valentine filed for bankruptcy. During her bankruptcy proceedings, while under oath, Nicolette Valentine made material false statements when questioned about various matters under the supervision of the bankruptcy court.
The case was investigated by Federal Bureau of Investigation.
Two Women Plead Guilty to Orchestrating $20 Million Medicare Fraud Scheme at Seven Miami Area Home Health AgenciesRead the Press Release
Two Miami residents pleaded guilty today to fraud charges stemming from their roles in a $20 million home health care fraud scheme.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office, and Special Agent in Charge Brian Swain of the U.S. Secret Service (USSS)’s Miami Field Office made the announcement.
Mildrey Gonzalez, 61, of Miami, pleaded guilty to one count of conspiracy to commit health care fraud and one count of health care fraud before U.S. District Judge Jose E. Martinez of the Southern District of Florida. Milka Alfaro, 40, also of Miami, pleaded guilty to one count of conspiracy to commit health care fraud and wire fraud before Judge Martinez. Sentencing for both defendants has been scheduled for May 11 before Judge Martinez.
As part of their guilty pleas, Gonzalez and Alfaro admitted that they were co-owners and operators of seven home health care agencies purported to do business in Miami-Dade County: Inar Home Care Service Corp., MA Home Health Inc., Golden Home Health Care Inc., Nova Home Health Care Inc., Finetech Home Health Inc., Homestead Home Health Care LLC and Metro Dade Home Health Inc. According to admissions made as part of their guilty pleas, Gonzalez and Alfaro recruited and paid nominees to falsely represent themselves as the owners of the home health care agencies, thereby concealing their ownership interests from Medicare and the general public. Gonzalez and Alfaro further admitted that they paid bribes and kickbacks to medical professionals, including doctors, in return for the provision of prescriptions for home health care services and referrals of Medicare beneficiaries to their home health care agencies; that they paid patient recruiters bribes and kickbacks in return for referrals of Medicare patients to the home health care agencies; and that in some cases, the Medicare beneficiaries did not need the home health care services for which Medicare paid.
Gonzalez and Alfaro admitted that as a result of the fraudulent scheme, Medicare paid approximately $20 million to the above-referenced home health care agencies.
Gonzalez and Alfaro were charged in a superseding indictment returned on July 20, 2016, along with Adriana Jalil, 66, of Miami, who served as a patient recruiter, and Luis Luzardo, 48, also of Miami, who utilized sham staffing companies to launder money. Jalil and Luzardo pleaded guilty and were sentenced by Judge Martinez earlier this year to 24 and 37 months in prison, respectively.
The USSS, FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Southern District of Florida. Fraud Section Trial Attorney L. Rush Atkinson, former Fraud Section Attorney, current Assistant U.S. Attorney Lisa H. Miller and Assistant U.S. Attorneys Evelyn B. Sheehan and Alison W. Lehr of the Southern District of Florida are prosecuting the case.Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,000 defendants who have collectively billed the Medicare program for more than $11 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Two Los Angeles-Area Men Sentenced to Federal Prison for Running Mortgage Scam that Purchased Homes with ‘Straw Buyers’Read the Press Release
LOS ANGELES – Two defendants linked to a mortgage fraud scheme that cost at least $2.4 million when fraudulently purchased homes went into foreclosure have been sentenced to federal prison.
The case involves a scheme to fraudulently obtain mortgages for residential properties through the use of “straw buyers” – individuals who pretend to purchase the properties and have no intention of living in the homes. In this case, the straw buyers’ personal information was used to obtain mortgages without their knowledge. The scheme was run out of JTR Real Estate, Inc., a Norwalk-based real estate brokerage company which bought, renovated and sold residential properties.
The two defendants sentenced on Monday by United States District Judge Dale S. Fischer were:
- John Martynec, 41, of Long Beach, a licensed real estate broker and co-owner of JTR, who previously pleaded guilty to one count of conspiracy and was sentenced to two years in prison; and
- Elek Andrade 32, of Downey, who also previously pleaded guilty to one count of conspiracy and was sentenced to one year and one day in federal prison.
In addition to the prison terms, Judge Fisher ordered both men to pay $2,573,092 in restitution.
Martynec was responsible at JTR for identifying distressed residential properties which could be purchased, renovated, and then sold for a profit. Andrade worked for Martynec as a real estate agent and assisted in selling the properties. When the market for renovated properties slowed in 2007, Martynec and Andrade engaged in a scheme to use straw buyers to purchase the renovated homes.
The loan applications were submitted without the knowledge of the straw buyers and included fraudulent supporting documents, such as verifications of employment.
As a result of the scheme, lending institutions approved and funded more than $5.2 million in loans for at least 11 properties.
A third defendant who fabricated documents that were submitted with the fraudulent loan applications – Mireya Espinoza, 36, of Carson – was sentenced on February 6 to one year and one day in prison and was ordered to pay $1,476,966 in restitution.
“Schemes like this can destabilize the financial industry and the real estate market,” said United States Attorney Eileen M. Decker. “The last economic crisis demonstrates the dangers of such destabilization and the importance of prosecuting crimes like those committed by these defendants.”
Leslie DeMarco, the Special Agent in Charge of the Federal Housing Finance Agency, Office of Inspector General (FHFA OIG), Western Region, stated: “The housing crisis severely impacted many individuals throughout the country. Instead of working through the challenges the crisis presented, the defendants, Martynec and Andrade, engaged in a fraudulent scheme that caused additional harm to many individuals. As a result of our work, they are now being held accountable for their actions. The FHFA OIG will continue to work with our law enforcement partners to ensure that these types of frauds are investigated and exposed to ensure the American Taxpayer is protected.”
James Todak, Special Agent in Charge of the Department of Housing and Urban Development’s Office of the Inspector General, said: “HUD-OIG continues to vigilantly protect FHA-insured borrowers from those who conduct mortgage fraud schemes. These prosecutions demonstrate our commitment to protecting HUD’s important work in providing affordable home ownership.”
This matter was investigated by the Federal Housing Finance Agency, the United States Department of Housing and Urban Development’s Office of the Inspector General Office of Inspector General; and IRS Criminal Investigation.
This case was prosecuted by Assistant United States Attorney Byron J. McLain of the Major Frauds Section.
Two Eagle Butte Individuals Charged with Firearm ViolationsRead the Press Release
United States Attorney Randolph J. Seiler announced that two Eagle Butte, South Dakota, individuals have been indicted by a federal grand jury for Possession of an Unregistered Firearm and Possession of a Firearm by a Prohibited Person.
Wacey James Long, age 29, and Shawnda Cyrene Dupris, age 31, were indicted on February 15, 2017. Both appeared before U.S. Magistrate Judge Mark A. Moreno on February 17, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on September 16, 2016, both Long and Dupris knowingly received and possessed a shotgun firearm having a barrel length of less than 18 inches and an overall length of less than 26 inches, that was not registered to them in the National Firearms Registration and Transfer Record database. The Indictment also alleges that on the same day, both Long and Dupris, knowingly received and possessed the shotgun firearm even though they were prohibited from doing so because they are unlawful users of and addicted to a controlled substance.
The charges are merely accusations and both Long and Dupris are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Long was remanded to the custody of the U.S. Marshals Service, and Dupris was released pending trial. Trial is set for April 18, 2017.
Two Brothers and a Sister Were Convicted of Numerous Counts of Identity Theft, Mail Fraud and Money LaunderingRead the Press Release
Ann Arbor, Michigan - Three defendants, two brothers and a sister were convicted in Ann Arbor on numerous counts of conspiracy, mail fraud, aggravated identity theft, and engaging in illegal monetary transactions, U.S. Attorney Barbara L. McQuade announced today.
Joining McQuade in the announcement was Manny Muriel, Special Agent in Charge of the Detroit Office of the Internal Revenue Service - Criminal Investigation.
The 10-day trial was conducted before U.S. District Judge Judith Levy. Sentencing is scheduled for August 21, 2017 at 10 am.
Defendants Anthony Gandy, Christopher Gandy and Sharon Gandy-Micheau, were each convicted of numerous counts of conspiracy, mail fraud, aggravated identity theft, and engaging in illegal monetary transactions. The conspiracy involved over 20 fraudulent income tax returns for trusts that requested over $1.4 million in refunds. The IRS mailed to the defendants a number of refund checks totaling $940,000.
According to evidence presented at trial, the defendants participated in a scheme to file fraudulent Forms 1041, U.S. Income Tax Returns for Estates and Trusts. The scheme was facilitated by opening post office boxes and bank accounts to receive the proceeds of the scheme. The funds were either deposited into the bank accounts and the proceeds were quickly withdrawn or the refund checks were cashed by a Detroit area check cashing store.
In addition, two witnesses testified they had previously lost their identification and social security cards. Those documents were either recovered at the residence of Sharon Gandy-Micheau or images were found on a computer at the same residence. Their identification was used to further the scheme.
"These defendants attempted to steal taxpayer money, and they did so by using the identities of innocent victims," McQuade said. "This case should signal the ability of IRS investigators to detect fraud and bring offenders to justice."
IRS-Criminal Investigation Special Agent in Charge Manny Muriel said, “Investigating refund fraud and identity theft remains a priority for IRS Criminal Investigation. Today’s guilty verdicts should send a clear message to would-be criminals that IRS-Criminal Investigation will continue to pursue those who prey on innocent victims and steal from the American tax system.”
The case was investigated by agents of the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by AUSAs Stephen Hiyama and Ross Mackenzie with the assistance of paralegal Carol Oliver.
Twenty-Three Indicted in Methamphetamine Distribution ConspiracyRead the Press Release
DALLAS — Twenty-three individuals, most from the Dallas, Texas, area, were charged in a federal indictment with offenses stemming from their respective roles in a methamphetamine distribution conspiracy this week, announced U.S. Attorney John Parker of the Northern District of Texas.
The indictment alleges the conspiracy began in January 2016 and continued to the date of the indictment, February 22, 2017. Count One of the indictment charges the following twenty-three defendants with conspiracy to possess with intent to distribute a controlled substance:
Roberto Omar Vera, 51, of Dallas, Texas
Kameron Paul Vera, 23, of Dallas, Texas
Roberto Trevizo Munoz, 19, of Dallas, Texas
Simon Louis Trevino, 30, of Dallas, Texas
Jorge Morales, 27, of Dallas, Texas
Kneely Denay Abadie, 23, of Arlington, Texas
Stephanie Jean Aldava, aka “Stephanie Jean Bradley,” Stephanie Jean May,” “Stephanie Jean Bristow,” 38, of Lufkin, Texas
Rodney Allen Broach, 48, of Kemp, Texas
Angela Danielle Burkham, 34 of Garland, Texas
Elizabeth Neely Causey-Eck, 47, of McKinney, Texas
Mark Allen Craven, 59, of Dallas, Texas
Lauren Allyson Crites, aka “Lauren Allyson Anderson,” 33, of Garland, Texas
Charley Seay Crossland, aka “Charley Denise Seay,” 37, of Dallas, Texas
Arthur Daniel Currie, aka “Aquaman,” 32, of Dallas, Texas
Caitlyn Taylor Johnson, 23, of Terrell, Texas
Chelsea Loraine Johnson, 24, of Terrell, Texas
Ilona Klonowshi King, aka “Ilona Klonowski Brazeal,” 46, of Dallas, Texas
Larry Ray Lincks, 52, of Quinlan, Texas
Daniel Moss, 31, of Mabank, Texas
John Craig Owen, 54, of Mesquite, Texas
Clisty Diane Pratt, aka “Clisty Diane Baker,” 44, of Kemp, Texas
Paul Wade Shreves, 27, Mesquite, Texas
Brandi Scott Turcola, aka “Brandi Scott Blackburn,” “Brandi Scott Smith,” 34, of Log Cabin, Texas
Each defendant was also charged with one count of possession with intent to distribute a controlled substance. Roberto Vera, Kameron Vera, and Larry Lincks were each charged with additional counts relating to the conspiracy.
An indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. If convicted, the maximum penalty for the charged offenses is life in federal prison.
The Department of Public Safety and the Bureau of Alcohol, Tobacco, Firearms and Explosives led the investigation; Kaufman Police Department, Kaufman County Sheriff’s Office and Henderson County Sheriff’s Office assisted. Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.
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Three Head to Prison in Large-Scale Drug and Money Laundering ConspiracyRead the Press Release
CORPUS CHRISTI, Texas - One man and two women, all of South Texas, have been ordered to federal prison following their guilty pleas to charges of conspiracy to possess with the intent to distribute cocaine and conspiracy to commit money laundering, announced U.S. Attorney Kenneth Magidson.
Efrain Cisneros-Reyes, 37, Mayra Alejandra Cervantes, 27, and Norma Argelia Ramirez, 43, all of McAllen; and Gabriela Martinez, 34, of Mission, all pleaded guilty to conspiracy to possess with the intent to distribute more than five kilograms of cocaine Jan. 7, 2016. Cisneros-Reyes, Cervantes and Ramirez also pleaded guilty to conspiracy to launder monetary instruments, while Cisneros-Reyes was also convicted of being a felon in possession of a firearm.
Today, U.S. District Judge Nelva Gonzales Ramos, who accepted all the pleas, ordered Cisneros-Reyes to serve a total of 157 months in federal prison. Cervantes received an 81-month sentence, while Ramirez was ordered to serve 90 months imprisonment. In handing down the sentence, Judge Ramos noted the extensiveness of the criminal organization and the fact that 19 funnel bank accounts were used in the money laundering conspiracy. Each were further ordered to serve five years of supervised release following completion of their prison terms.
Martinez is set for sentencing next month.
At the time of his plea, Cisneros-Reyes also agreed to the forfeiture of two firearms - a Cobra FS380, .380 caliber pistol and a Maverick Arms, Model 88, 12-gauge shotgun. Ramirez agreed to the forfeiture of a Wells Fargo bank account in her name.
The investigation identified the four defendants as leaders within this criminal organization. Law enforcement determined that the organization utilized many different methods of transportation to include, but not limited to, concealing cocaine in false compartments located inside passenger vehicles and tractor/trailers. Further, the investigation has revealed a total of 19 funnel bank accounts directly linked to members of the organization. These funnel bank accounts have been used to funnel illicit bulk currency from throughout the country to the Rio Grande Valley.
It is estimated that at least 100 kilograms of cocaine were trafficked during the course of the conspiracy and more than $1 million in currency was transported to South Texas.
The three sentenced today will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Martinez is also in custody pending her sentencing hearing.
The case is the result of an Organized Crime Drug Enforcement Task Force Operation dubbed “Operation Green-Eyed Tiger” conducted by the Drug Enforcement Administration, Internal Revenue Service - Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Border Patrol, Homeland Security Investigations, police departments in Mission and McAllen as well as the U.S. Marshals Service. Assistant U.S. Attorney Julie K. Hampton is prosecuting the case.
Third Detroit-Area Physician Pleads Guilty in $5.4 Million Dollar Health Care Fraud SchemeRead the Press Release
A Detroit-area physician pleaded guilty today for his role in a $5.4 million Medicare fraud scheme involving phony physician visits and drug prescriptions.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Aaron Goldfein, 52, of Bloomfield Hills, Michigan, pleaded guilty to one count of conspiracy to commit health care and wire fraud. Previously, on Jan. 19, 2017, co-conspirators, William Sokoll, 61, of Royal Oak, Michigan, and William Binder, 60, of Ypsilanti, Michigan, each pleaded guilty to one count of conspiracy to commit health care and wire fraud. Sokoll was a physician who lost his medical license in 2008 and Binder was a licensed physician who surrendered his DEA license in March 2011. Both worked at Tri-City Medical Center (Tri-City) in Livonia, Michigan, for Goldfein.
As part of his plea, Goldfein admitted to being part of a scheme in which his co-conspirators would hold themselves out as licensed physicians and purport to perform physician home visits and other services for Medicare beneficiaries, although these co-conspirators were not licensed to practice medicine in Michigan. Goldfein would then bill Medicare, through Tri City, as if he himself had completed these visits. Goldfein also admitted to being part of a scheme in which he received kickbacks in exchange for writing home health prescriptions.
In his plea agreement, Sokoll admitted to being one of the unlicensed physicians employed at Tri City. Sokoll admitted that he and this co-conspirator prepared medical documentation purportedly evidencing licensed physician home visits and other services provided to beneficiaries, when in fact the beneficiaries were not treated by a physician licensed in Michigan. In addition, third co-defendant and licensed physician, Goldfein signed the medical documentation completed by Sokoll and the other unlicensed co-conspirator for services the physician did not provide to beneficiaries.
Additionally, Sokoll, Binder and Goldfein admitted in connection with their guilty pleas that they and other unlicensed co-conspirators prescribed beneficiaries medications, including controlled substances, under Goldfein’s name and DEA registration number, when although Goldfein had not seen or diagnosed the beneficiaries. Medicare Part D ultimately paid for some of these prescriptions, which Goldfein ultimately signed.
In addition to writing prescriptions for controlled substances, Binder, as part of his guilty plea, admitted to being part of a scheme at Tri-City in which he and his co-conspirators would submit or cause the submission of false claims to Medicare by billing for physician home visits where referrals for the services were obtained through the payment and promise of payment of kickbacks. Members of the conspiracy, including Binder, would also bill for home health care services that were, at times, not provided and not medically necessary, and where referrals for services were obtained through the payment and promise of payment of kickbacks.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. Fraud Section Trial Attorneys Dustin Davis, Amy Markopoulos and Jessica Collins are prosecuting the case.
The IRS and U.S. Attorney's Office remind people that violating tax laws can have serious consequencesRead the Press Release
Several people have been found guilty and sentenced to prison for violating federal tax laws over the past few months, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and Troy Stemen, Acting Special Agent in Charge of IRS-Criminal Investigation’s Cincinnati Field Office.
As the 2017 tax filing deadline approaches, these cases serve as reminders that there are civil and sometimes criminal penalties to filing erroneous tax returns.
“Tax day is not fun, but the vast majority of Americans who properly report and pay their fair share need to know that we will aggressively prosecute those who shirk or flaunt their obligations,” Rendon said.
“We are in the midst of this year’s income tax filing season, so it is important for people to have confidence that when they pay their taxes, their neighbors and co-workers are doing the same,” Stemen said. “The IRS Criminal Investigation, together with the U.S. Attorney’s Office, will investigate and prosecute those who violate our tax system. This joint announcement should serve as a warning to anyone who might consider evading their federal tax obligations, as we will hold accountable those who use deceit and fraud to line their pockets with money, especially when that money represents stolen federal taxes.”
Details on a few cases over the past year:
U.S. v. Farmer: Darryl Farmer, of Cleveland Heights, was sentenced to nearly six years in prison and ordered to pay $100,230 in restitution last month. Farmer held himself out as a neighborhood tax preparer who paid recruiters a “referral fee” to provide him identifications and personal identifiers of others. Farmer used this information to file false tax returns, including claiming tax credits for businesses that did not exist. He also opened multiple personal and business bank accounts, which he controlled, in the names of these various people in order to deposit the refunds from the tax returns he filed. Farmer falsely claimed more than $100,000 from the IRS between 2010 and 2012, according to court documents.
U.S. v. Lin et. al.: The owners of the Royal Buffet and Grill restaurant in Akron are awaiting sentencing after admitting they did not report the majority of cash receipts at the restaurant. Yuan Lin, of Fairlawn, and Rui Xu, Xin Hsu and Zhou Qiang Zou, all of Akron, conspired between 2002 and 2013 to defraud government by not reporting the majority of cash receipts on their taxes. Xu, Hsu, and Zou also conspired to harbor at least 10 undocumented workers, which included employing the undocumented workers at restaurant, where they worked for below minimum wage or only for tips. At one time, they housed as many as 14 undocumented workers inside a single-family residence on Annapolis Avenue, according to court documents. Lin issued a check to the IRS for $450,000 in partial payment of his restitution.
U.S. v. Vonderembse: Sandra Vonderembse, a psychiatrist from Oregon, Ohio, was sentenced last year to serve 18 months in prison and ordered to pay $565,128 in restitution. She failed to pay taxes and filed and false and fraudulent tax returns that included false statements regarding her income and the amount of tax due and owing. For three years, she falsely claimed to have no taxable income and to owe no taxes, despite earning more than $240,000 each year while working as a psychiatrist. In total, from 2005 through 2011, she attempted to evade more than $360,000 in income tax liabilities.
U.S. v. Klocker: Thomas Klocker, of Lakewood, was sentenced to a year in custody and ordered to pay nearly $1.8 million restitution and fines for taking improper write-offs and not reporting taxable income. Klocker was the sole shareholder and operator of All Metal Sales (AMS) in Westlake. He also operated TT Charter Leasing, which was in the business of chartering the luxury yacht “Tommy Time”. Klocker diverted corporate funds from AMS for his own use to benefit his personal lifestyle and avoid personal income liabilities between 2007 and 2010. For example, Klocker diverted funds from AMS to construct a waterfront residence in Lakewood and to maintain his 68’ Sunseeker yacht, as well as to pay for luxury travel and to make cash withdrawals. He reported substantial business losses arising from the operating costs and expenses arising from the personal use of the TT Charter Leasing yacht, according to court documents. He also misrepresented his personal expenses entered into AMS’ books and records by falsely describing them as legitimate business expenses. Klocker also provided false information to his tax-return preparers about expenses he described as business-related which were, in fact, personal in nature – including luxury travel with his family, according to court documents.
Texas Man Pleads Guilty in Manhattan Federal Court to Multimillion-Dollar Wire FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that LAWRENCE OBRACANIK pled guilty today before U.S. District Judge Ronnie Abrams to one count of wire fraud for his theft of more than $5 million from the bank at which he worked (“Bank-1”) through fraudulent wire transfers.
U.S. Attorney Preet Bharara said: “As Lawrence Obracanik admitted in court today, for nearly two years he stole in excess of $5 million from his employer to line his own pockets and pay off his debts. In the end, however, Obracanik’s fraud has led to a federal criminal conviction.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “As he admitted, Obracanik, a bank employee, cashed in on a deal to pay his debts and leave his employer with millions of dollars in losses. But the endgame left him with few options, and he’s admitted to his crime today.”
According to the Complaint, the Information, and statements made during today’s guilty plea:
Between July 2014 and February 2016, OBRACANIK was an Operations Manager for Bank-1’s Broker Dealer Services. During that time, OBRACANIK was responsible for a series of fraudulent and unauthorized wire transfers from Bank-1 to an individual account at another bank (the “Bank-2 Account”) totaling more than $5 million. The wire transfers were made either directly or through book transfers using an intermediate company (“Company-1”). OBRACANIK reported to Company-1 personnel that the book transfers were accidental and the money should be wired to the Bank-2 Account. OBRACANIK later admitted that the transfers were intentional and had, in fact, been intended to pay OBRACANIK’s personal debts.
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OBRACANIK, 42, of Fort Worth, Texas, pled guilty to one count of wire fraud affecting a financial institution, which carries a maximum sentence of 30 years in prison and a maximum fine of $1 million, or twice the gross gain or loss from the offense. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
OBRACANIK will be sentenced by Judge Abrams on July 7, 2017, at 11 a.m.
Mr. Bharara praised the outstanding investigative work of the FBI.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Lara Pomerantz is in charge of the prosecution.
Taylor County man admits to illegal possession of a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Rollie C. Poynter, Jr., 50, of Grafton, West Virginia, was convicted today in federal court for illegal possession of a firearm, Acting United States Betsy Steinfeld Jividen announced.
Poynter, who had previously been convicted of felony offenses in West Virginia, Ohio, and Kentucky, admitted to having in his possession a .38 caliber revolver in Taylor County, West Virginia in April 2016.
Poynter pled guilty to one count of “Unlawful Possession of a Firearm.” He faces up to ten years in prison and a fine up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook is handling the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Taylor County Sheriff’s Office, and Grafton City Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Spearfish Man Indicted for Multiple Sex OffensesRead the Press Release
United States Attorney Randolph J. Seiler announced that a Spearfish, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse, Sexual Abuse, and Sexual Abuse of a Minor.
Stanley Patrick Weber, age 68, was indicted on February 22, 2017, and appeared before U.S. Magistrate Judge Daneta Wollmann on March 1, 2017. He pleaded not guilty to the Indictment.
The penalty upon conviction is any term of years up to life imprisonment, a $250,000 fine, a minimum of 5 years up to lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Weber sexually abusing minors between 1999 and 2011 while employed as a physician with Indian Health Services at Pine Ridge. The charges are merely an accusation and Weber is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Health and Human Services Office of Inspector General, the Bureau of Indian Affairs Office of Justice Services, the Internet Crimes Against Children Taskforce, the Rapid City Police Department, and the Spearfish Police Department. Assistant U.S. Attorney Sarah Collins is prosecuting the case.
Weber was released pending trial. A trial date has been scheduled for May 9, 2017.
Southampton Man Charged with Child Pornography OffensesRead the Press Release
BOSTON – A Southampton man was charged in U.S. District Court in Springfield today with child pornography offenses.
Bruce Singer, 70, was indicted on five counts of distribution of child pornography, one count of receipt of child pornography, and one count of possession of child pornography.
It is alleged that from April 30, 2013, to June 25, 2015, Singer engaged in several acts of distributing and receiving electronic child pornography files and possessed more than a dozen child pornography files.
The charges of receipt and distribution of child pornography each provide for a sentence of no greater than 20 years in prison, a lifetime of supervised release and a fine of $250,000. The charge of possession of child pornography provides for a sentence of no greater than 10 years in prison, a lifetime of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Northampton Police Chief Jody Kasper; Easthampton Police Chief Robert Alberti; and Westfield Police Chief John Camerota, made the announcement today. Assistant U.S. Attorney Alex J. Grant of Weinreb’s Springfield Branch Office and Trial Attorney Leslie Fisher of the Justice Department’s Child Exploitation and Obscenity Section are prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Seven Indicted for Oxycodone-Related ChargesRead the Press Release
United States Attorney Gregory J. Haanstad for the Eastern District of Wisconsin announced that on February 7, 2017, a federal grand jury returned an eight-count indictment against six individuals involved in distributing Oxycodone. The indictment named Lance Bruette (age: 34) of Minocqua, Orvin Kay (age: 57) of Milwaukee, Frank Lawrence (age: 38) of Saint Germain, Mitchell Plantikow (age: 29) of Woodruff, Troy Plantikow (age 52) of Woodruff, and Lacey Stanick (age 31) of Woodruff as the defendants. In a related matter, on February 28, 2017, a federal grand jury returned a three-count indictment against Lee Hueckstaedt (age: 31) of Rhinelander for possessing Oxycodone with the intent to distribute it.
In the matter indicted on February 7, 2017, all six defendants are charged in Count One of the Indictment with Conspiracy to Distribute Oxycodone in violation of Title 21, United States Code, Section 846. Counts Two, Four, and Six charge that on various dates in late 2016 and early 2017 Orvin Kay distributed Oxycodone in violation of Title 21, United States Code, Section 841(a)(1). Counts Three, Five, and Seven charge that on those same dates Lance Bruette possessed Oxycodone with the intent to distribute it in violation of Title 21, United States Code, Section 841(a)(1). Finally, Count Eight charges that on February 2, 2017, Orvin Kay possessed Oxycodone with an intent to distribute it in violation of Title 21, United States Code, Section 841(a)(1).
According to the Criminal Complaint filed against Orvin Kay, certain members of the conspiracy who resided in Northern Wisconsin would drive to Milwaukee and pick up hundreds of Oxycodone pills per week from Orvin Kay. They would then distribute those Oxycodone pills to individual users, as well as co-conspirators who would sell the pills to other individuals. The maximum penalty for all of the charges is 20 years in prison and a $1,000,000 fine.
In the matter indicted on February 28, 2017, Lee Hueckstaedt was charged with possessing Oxycodone with the intent to distribute it on various dates in late 2016 in violation of Title 21, United States Code, Section 841(a)(1). According to the Criminal Complaint against Lee Hueckstaedt, he is a large-scale Oxycodone dealer in the Eagle River/Rhinelander area. The Criminal Complaint alleges that on the dates charged, Hueckstaedt drove to Milwaukee and picked up hundreds of Oxycodone pills from Orvin Kay. The maximum penalty for all of the charges is 20 years in prison and a $1,000,000 fine.
The following agencies are participating in the investigation: the Oneida County Sheriff’s Office; the Vilas County Sheriff’s Office; the Wisconsin Department of Justice - Division of Criminal Investigation; the Drug Enforcement Administration – Milwaukee (Tactical Diversion Squad); the Minocqua Police Department; the Rhinelander Police Department. The case is being prosecuted by Assistant United States Attorneys Zachary J. Corey and Benjamin Wesson.
Allegations contained in an indictment or a criminal complaint are only charges and are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700