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18 April 2017
Dallas Man Sentenced to 35 Years in Federal Prison for Kidnapping ChargesRead the Press Release
DALLAS — Steric Paul Mitchell, 46, was sentenced last week by U.S. District Judge Sam A. Lindsay to serve a total of 420 months in federal prison for his role in the May 2012 kidnapping of a female victim whom he planned to sell into sex slavery, announced John Parker, U.S. Attorney for the Northern District of Texas.
Mitchell was convicted following a two-week trial in August 2015 on one count of conspiracy to commit kidnapping and one count of kidnapping. Mitchell’s coconspirator in the case, Gregory Steven Hunt, aka “K.C.,” 43, pleaded guilty in April 2015 to one count of kidnapping and was sentenced to 204 months in federal prison.
“The sentence imposed today reflects the egregiousness of Mitchell’s conduct in this case,” said U.S. Attorney Parker. “It is difficult to imagine the level of suffering his victim experienced. The sentence handed down today takes into account that suffering and ensures that Mitchell will never again commit such crimes.”
According to evidence presented at Mitchell’s trial and documents filed in the case, Mitchell and Hunt knew each other from the neighborhood, and in early May 2012, Mitchell hired Hunt to pick up the victim at a hotel and transport her to another location under the ruse that Hunt was taking her to a private party. In fact, Hunt and Mitchell planned to kidnap and sexually assault her. Hunt was also supposed to pay another woman, R.E., $100 when he picked up the victim from the motel, and Hunt understood he would get to have sex with the victim as part of the agreement.
R.E. told the victim that she had a “good friend” who wanted to hire a private dancer for a party and that the men were “safe.” At a Dallas hotel, R.E. introduces the victim to Hunt, who pays R.E. the $100 and then drives the victim to an abandoned house in Dallas where Mitchell was waiting.
At the abandoned house, Mitchell threatened the victim with a firearm and shocked her with a Taser to frighten and restrain her. Hunt then raped her while Mitchell stood guard with a firearm. Mitchell then shocked her again with a Taser, bound her ankles and wrists, wrapped her in a bed sheet, carried her to another motor vehicle, and put her in the backseat. He then drove the victim to a second location, tied her to a chair, drugged her, then raped her and told her he planned to sell her into sexual slavery. He held her overnight at that location. Later, he again bound her, wrapped her in a bed sheet again, put her in the backseat of a vehicle, and drove her to a house in Duncanville, Texas, where he sexually assaulted her. At this third location, the victim was able to locate a cell phone and place four 911 calls; officers with the Duncanville Police Department found and rescued her.
The FBI and the Duncanville Police Department investigated. Assistant U.S. Attorneys Cara Foos Pierce and Andrew Wirmani prosecuted.
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Contractor in Failed Smokestack Implosion Pleads to Federal Explosives ChargesRead the Press Release
BIRMINGHAM – A Pell City contractor pleaded guilty today in federal court to explosives storage and record-keeping charges filed after his failed 2015 implosion of a 100-year-old smokestack ended with the structure collapsing on the track hoe he was using to complete the job.
Acting U.S. Attorney Robert O. Posey and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Steven L. Gerido announced TIMOTHY MANLEY PHIFER, 54, pleaded guilty before U.S. District Court Judge R. David Proctor to one count of failing to record the acquisition of explosives and one count of improperly storing explosives. Phifer is scheduled for sentencing Aug. 14. Phifer, who held a federal permit to receive and use explosives, failed to timely record the receipt of explosives materials – Austin Powder 50-grain and 25-grain detonating cord – between Sept. 10, 2014, and Dec. 2, 2014, according to his plea. He also failed to properly store the detonating cord on Dec. 4, 2015, in St. Clair County.
Phifer owns Phoenix Services of Alabama, which contracted with Pell City to demolish the old Avondale Mills’ brick smokestack. Phifer detonated explosives to bring down the stack on Nov. 24, 2015, but it did not fall. “So, to accomplish the task, Phifer boarded a city-owned excavator and used it to nudge the smokestack over. However, as the structure began to come down, it buckled and fell directly onto the excavator while Phifer was still behind the wheel,” according to Phifer’s plea agreement. “Phifer miraculously emerged from the rubble stunned and dirty, but essentially uninjured.”
ATF investigators arrived at the demolition site on Dec. 4, 2015, to assist Alabama state fire marshals with the investigation of the failed implosion. The investigators found about five feet of Austin Powder 50-grain detonation cord in an unlocked and unattended explosives magazine on a flatbed utility trailer at the site, according to the plea agreement. On the ground near the trailer, they found a three-foot section of 50-grain detonator cord and a two-foot section of Austin Powder 25-grain detonator cord, both improperly stored, the plea agreement states.
Further authorized searches led investigators to discover more unsecured detonator cord in Phifer’s truck, as well as in his bedroom and in the garage at his parents’ Pell City home, according to Phifer’s plea agreement. Investigators also found a non-secured APC Shock Star non-electric detonator in the garage of the Pell City home, the plea agreement states.
The maximum penalty for failure to record acquisition of explosives is 10 years in prison and a $250,000 fine. The maximum penalty for improper storage of explosives, a misdemeanor, is one year in prison and a $100,000 fine.
ATF and the Alabama Fire Marshal’s Office investigated the case, which Assistant U.S. Attorney William G. Simpson is prosecuting.
Citrus County Man Pleads Guilty to Making Threats to Use an Explosive DeviceRead the Press Release
Ocala, Florida – Acting United States Attorney W. Stephen Muldrow announces that David Wayne Willmott, Jr. (25, Inverness) today pleaded guilty to three counts of making threats to use an explosive device. He faces a maximum penalty of 10 years in federal prison for each count. A sentencing date has not yet been scheduled.
According to court documents, on three separate dates (November 25, 2014, April 17, 2015, and April 23, 2015), Willmott sent e-mails containing bomb threats to various private and government facilities. The locations targeted in the e-mails included a nuclear power plant, an elementary school, a sheriff’s office, two courthouses, and two airports in central Florida. The investigation revealed that the threats had originated from specific computers at a public library in Citrus County, and that Willmott had been the person using the library computer at the time each of the threatening e-mails was sent.
This case was investigated by the Federal Bureau of Investigation, the Citrus County Sheriff’s Office, and the Polk County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Brownsville Man Sent to Prison on Firearms ChargesRead the Press Release
BROWNSVILLE, Texas – A 40-year-old Brownsville resident has been ordered to federal prison following his conviction of possession of a firearm by a convicted felon, announced Acting U.S. Attorney Abe Martinez. Isaac Pedraza pleaded guilty Jan. 11, 2017.
Today, U.S. District Judge Andrew Hanen handed Pedraza an 87-month sentence to be immediately followed by three years of supervised release. At the hearing, Judge Hanen enhanced Pedraza’s sentence, finding he was in possession of a firearm capable of accepting a high-capacity magazine and that he had transferred weapons with the belief they were going to be transported to Mexico.
Pedraza was previously convicted of burglary of a building in Cameron County in 1995 and aggravated assault on a public servant in Cameron County in 1997. These convictions prohibited Pedraza from possessing firearms or ammunition. On Dec. 9, 2016, Pedraza was arrested pursuant to an arrest warrant, at which time authorities searched his home and discovered four firearms.
Pedraza has been and will remain in federal custody pending transfer to the U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Drug Enforcement Administration. Assistant U.S. Attorney Jason Corley prosecuted the case.
Brighton Man Indicted for Impeding the IRS and Social Security ViolationsRead the Press Release
DENVER – Robert Hybertson, age 59, of Brighton, Colorado charged with violations of IRS and Social Security laws appeared before a U.S. Magistrate Judge today for arraignment and a detention hearing. The defendant was ordered released on bond by U.S. Magistrate Judge Scott T. Varholak. He first appeared in court on April 13, 2017 for his initial appearance. He was indicted by a federal grand jury on April 10, 2017 for corrupt endeavor to obstruct or impede due administration of the Internal Revenue Laws, failure to file federal income tax returns, concealment, and false statement in determining benefits, announced Acting United States Attorney Bob Troyer, IRS Criminal Investigation Special Agent in Charge Steven Osborne and Social Security Administration Office of Inspection General Special Agent in Charge Wilbert M. Craig.
According to the indictment, from early 2006 through until early 2017, Hybertson was the owner and operator of Black Hills Rig Heaters (“BHRH”), a South Dakota Business trust that does business in Colorado and elsewhere. In addition, during a period of time relevant to the indictment, Hybertson worked as a sales representative for Therm Dynamics, a company that manufactures and sells heaters for use in oil fields.
As part of a corrupt endeavor to impede the due administration of the IRS, beginning in early 2006 and continuing through 2014, Hybertson did not file federal income tax returns for himself or for BHRH. Further, he provided third parties with invalid or incorrect Employer Identification Numbers (EIN) for BHRH. Hybertson sometimes listed these invalid or incorrect EINs on bogus or inapplicable tax forms. These forms included a bogus W9 form titled, “Request for Nontaxpayer Identification Number and Certification,” that contained language saying it was provided under duress, as well as an inapplicable W-8BEN “Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals)” form on which Hybertson listed his “country” of residence as South Dakota. In 2010, the IRS audited Hybertson for the tax year 2006 and determined that he owed approximately $38,000 in taxes (not including penalties and interest). Hybertson refused to pay the tax assessment. Instead, on multiple occasions, Hybertson sent correspondence to the IRS or other government officials stating that he was not required to report domestic income on Form 1040 and/or threatening criminal prosecution of IRS employees attempting to collect taxes.
In or about April 1999, Hybertson began receiving Social Security Benefits based upon an application he submitted indicating that he was unable to work due to a disability. Disability is based on one’s inability to work, and the disabled beneficiary has a duty to report changes in his medical condition, if he returns to the workforce, or if his physician advises that he is able to return to work. Beginning in about January 2010, Hybertson concealed his self-employment and his employment with Therm Dynamics in order to keep receiving disability benefits. In 2013, Hybertson completed a Social Security form indicating that he had not been self-employed or worked for someone since February 2011. Hybertson continued receiving disability payments to which he was not entitled through February 2017.
Hybertson is charged with one count of corrupt endeavor to obstruct or impede the due administration of the Internal Revenue Laws, four counts of failure to file a return, one count of concealment related to his receipt of Social Security benefits, and one count of false statements in determining benefits. The obstruction charge carries a penalty of not more than three years in prison, and a fine of up to $250,000. Failure to file a return carries a penalty of not more than one year in prison and a fine of up to $100,000 for each count. Concealment carries a penalty of five years in prison, and a fine of up to $250,000. False statement in determining benefits carries a penalty of not more than five years in prison, and a fine of up to $250,000.
This case is being investigated by the Internal Revenue Service – Criminal Investigation and Social Security Administration – Office of Inspection General. This case is being prosecuted by Assistant United States Attorney Rebecca Weber and First Assistant U.S. Attorney Matthew Kirsch.
Bridgeport Man Sentenced to 71 Months in Prison for Stealing and Selling FirearmsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that WALTER GONZALEZ, 45, of Bridgeport, was sentenced today by U.S. District Vanessa L. Bryant in Hartford to 71 months of imprisonment, followed by three years of supervised release, for stealing and selling firearms, and for violating the conditions of his supervised release from a prior federal conviction.
According to court documents and statements made in court, on August 17, 1999, GONZALEZ was sentenced in New Haven federal court to 120 months of imprisonment, consecutive to a state sentence that he was already serving, and three years of supervised release, for possession of a firearm by a previously convicted felon. He was released from federal prison on March 14, 2014, and began serving his term of supervised release.
On November 25, 2015, Bridgeport Police officers discovered a discarded safe with a door that had been pried off. Information in the safe indicated that it belonged to a resident of Shelton. Investigators visited the home later that day and discovered that it had been burglarized. The homeowner subsequently reported that the safe had contained seven firearms.
On December 14, 2015, GONZALEZ’s stepson brought one of the stolen firearms to his elementary school and reported that he had found it in a closet in his home. Investigators then recovered a second stolen firearm from the same closet. GONZALEZ was arrested when he arrived at the residence later that day. He possessed narcotics on his person at time of his arrest.
In an interview with Bridgeport Police, GONZALEZ admitted that the two firearms had been obtained from a burglary in Shelton. He also admitted that he had sold the other five stolen firearms in exchange for drugs.
GONZALEZ has been detained in federal custody since December 21, 2015. On November 14, 2016, he pleaded guilty to one count of possession of a stolen firearm, and to violating his supervised release.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Bridgeport Police Department and Shelton Police Department. The case was prosecuted by Assistant U.S. Attorney Rahul Kale.
Boise Man Pleads Guilty for Failing to Register as a Sex OffenderRead the Press Release
BOISE – Robert Wesley Henry, III, 38, of Boise, Idaho pleaded guilty today in United States District Court to failing to register as a sex offender, Acting U.S. Attorney Rafael Gonzalez announced. Henry was indicted by a Boise grand jury on January 10, 2017.
According to the plea agreement, Henry was convicted of possession of sexually explicit images of minors in July 2011. As a result of this conviction, Henry is required to register as a sex offender under the Sex Offender Registration and Notification Act (SORNA). Henry was released from the Federal Bureau of Prisons on August 13, 2014, and began serving a ten-year period of supervised released. Henry last registered as a sex offender with the State of Idaho on November 3, 2016; however, the address he listed at that time was not where he was living. From October 31, 2016 through December 9, 2016, Henry’s probation officer attempted to contact Henry at the address he listed and Henry failed to update his sex offender registration with his new address. Henry admitted he knowingly failed to update his address as required under SORNA.
The case was investigated by the United States Marshals Service (USMS) and the Garden City Police Department.
Baton Rouge Man Convicted in Connection with Spree of Armed Robberies at Local Convenience StoresRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey Amundson announced today that KEITH MIGUAL WILLIAMS, age 45, of Baton Rouge, has pled guilty before U.S. District Judge James J. Brady to five counts of interference with commerce by robbery, in violation of Title 18, United States Code, Section 1951(a), and one count of using, carrying, and brandishing a firearm during a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A)(ii). WILLIAMS faces a significant federal prison term, in addition to fines, restitution, and forfeiture, and his sentencing date has not been set by the court.
During yesterday’s hearing, WILLIAMS admitted to robbing numerous Baton Rouge convenience stores, including Circle Ks, a Walgreens, and a Cracker Barrel, during a period of less than two weeks last summer. WILLIAMS admitted to using multiple weapons to commit these robberies, including firearms, a hammer, and pepper spray, and admitted that he had forced victim cashiers to fill duffle bags with dozens of cartons of cigarettes, worth thousands of dollars, from the stores’ inventories. The defendant’s spree ultimately ended after a car chase with local law enforcement officers.
Acting U.S. Attorney Corey Amundson stated, “For a period of two weeks in the summer of 2016, this defendant’s dangerous spree of armed robberies put our community and its citizens in fear. We commend the law enforcement officers who investigated this case, brought these armed robberies to a stop, and worked with us to bring Mr. Williams to justice.”
This matter is being handled by the United States Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Baton Rouge Police Department, and the East Baton Rouge Parish Sheriff’s Department. It is being prosecuted by Assistant United States Attorneys Ryan Crosswell and Cal Leipold.
Bangor Man Sentenced to Almost 11 Years on Child Pornography ChargesRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Ernest R. Cook, 58, of Bangor, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 130 months in prison and 15 years of supervised release for possessing child pornography and using the internet intending to view child pornography. He was also ordered to pay $16,500 in restitution. Cook pleaded guilty on November 18, 2016.
Court records reveal that on December 21, 2014, the Waldo County Sheriff’s Office received information that the defendant had images of child pornography on his computer. The sheriff’s office executed a search warrant and seized the defendant’s computer and a flash drive. A forensic examination by the Maine State Police Computer Crimes Unit (MSPCCU) revealed that the defendant used his computer to search for child pornography on the internet and saved those images to the flash drive.
In imposing sentence, Judge Woodcock said: “Society will not tolerate what you are doing.”
The investigation was conducted by the Waldo County Sheriff’s Office, the MSPCCU and Immigration and Customs Enforcement’s Homeland Security Investigations.
Bangor Man Pleads Guilty to Distributing FentanylRead the Press Release
Contact: Jody Mullis
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that John Oliveira, 32, of Bangor, pleaded guilty today in U.S. District Court to distribution of fentanyl.
According to court records, on August 16 and 17, 2016, Oliveira sold fentanyl to a witness working with law enforcement.
Oliveira faces up to 20 years in prison, a $1,000,000 fine, and between three years and a lifetime of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Maine Drug Enforcement Agency and investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Attorney General Jeff Sessions Announces New Actions to Support Law Enforcement and Maintain Public Safety in Indian CountryRead the Press Release
As part of the department’s efforts under the Task Force on Crime Reduction and Public Safety (Task Force), Attorney General Jeff Sessions today announced a series of actions the department will take to support law enforcement and maintain public safety in Indian Country.
“It is paramount that tribal police have the tools they need to fight crime and maintain public safety in their communities,” said Attorney General Sessions. “Law enforcement in Indian Country faces unique practical and jurisdictional challenges and the Department of Justice is committed to working with them to provide greater access to technology, information and necessary enforcement.”
The following three actions were announced today:
- The department will deploy the Tribal Access Program for National Crime Information (TAP) to 10 tribal sites, beginning today with the Assiniboine and Sioux Tribes of the Fort Peck Indian Reservation in Montana. This expanding program, which was first implemented in 2015 as a successful pilot program with nine tribes, is designed to provide federally-recognized tribes access to national crime information databases for both civil and criminal purposes;
- In support of the Task Force, the Office of Tribal Justice will coordinate a series of listening sessions with tribal law enforcement officials and tribal leaders to ensure the unique perspective of law enforcement in Indian Country is taken into account; and
- The Office of Tribal Justice has created the Indian Country Federal Law Enforcement Coordination Group, an unprecedented partnership that brings together sworn federal agents and other key law enforcement stakeholders from 12 federal law enforcement components, including: the Department of Justice’s Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration; the Federal Bureau of Investigation Criminal Justice Information Services and Indian Country Crimes Unit, the U.S. Marshals Service and the Office of the Inspector General; The Department of the Interior’s Bureau of Land Management and Bureau of Indian Affairs, Office of Justice Services; the Department of Health and Human Services; the Department of Homeland Security’s Federal Emergency Management Agency, U.S. Customs and Border Protection and U.S. Immigration and Customs Enforcement, Homeland Security Investigations. This partnership will increase collaboration and coordination with the goal of enhancing the response to violent crime in Indian country.
The Attorney General will continue to receive and act upon recommendations from the Task Force as they become available and is committed to combatting violent crime and maintaining public safety in tribal lands.
Armed Career Criminal Sentenced to 15 Years in PrisonRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan today sentenced Andrew Jones (37, Miami) to 15 years in federal prison for possessing a firearm as a convicted felon. He pleaded guilty on January 4, 2017.
According to court documents, on September 29, 2015, Jones was arrested outside a Value Pawn in Jacksonville after officers discovered that the vehicle in which he was a passenger had been reported stolen in an armed carjacking. Jones was found to be in possession of a revolver at that time. Due to his multiple prior felony convictions, including armed robbery, attempted first degree murder, possession of a firearm by a felon, and multiple drug offenses, Jones is prohibited from carrying a firearm or ammunition under federal law.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Frank Talbot.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney Muldrow, along with Daryl McCrary, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy on reducing violent crime in communities.
Allentown Man Convicted of Tax Refund Fraud SchemeRead the Press Release
A federal jury today found Abel Gonzalez, 46, guilty of conspiracy to defraud the United States, theft of government money, and aggravated identity theft, announced Acting United States Attorney Louis Lappen.
The evidence at trial proved that Gonzalez participated in a scheme to defraud the United States by filing false income tax returns using stolen identities of Puerto Rico residents. Gonzalez and other members of the scheme ensured they controlled the addresses listed on the tax returns. Once the tax refund checks were mailed to and collected from the addresses he controlled, Gonzalez cashed the fraudulently obtained checks at multiple check cashing businesses he and others operated. Between 2010 and 2012, Gonzalez and others in the scheme cashed over $2 million of fraudulently obtained United States Treasury tax refund checks.
Gonzalez faces a sentence of incarceration including a mandatory minimum sentence of two years’ imprisonment for each of the aggravated identity theft convictions, followed by three years of supervised release. He also faces a possible fine and mandatory payment of full restitution.
The case was investigated by the Internal Revenue Service Criminal Investigations and is being prosecuted by Assistant United States Attorneys Tiwana Wright and Jennifer B. Jordan.
Alien Smuggler Sentenced to over 10 Years in Prison for Rollover Accident that Killed Four PassengersRead the Press Release
PHOENIX – Yesterday, Hector Salas-Garcia, 40, Michocan, Mexico was sentenced by U.S. District Judge Douglas L. Rayes to 121 months’ imprisonment. Salas-Garcia had previously pleaded guilty to conspiracy to transport illegal aliens resulting in death.
On April 27, 2008, Salas-Garcia was driving a 1989 pickup truck in a rural area of Eloy with at least 31 passengers when the truck rolled over and four people were killed. His passengers were all undocumented aliens and he was furthering their presence in the United States. Salas-Garcia was removed from the scene of the rollover prior to law enforcement arriving and was taken to Mexico by his brother Agustin Salas-Garcia. Agustin Salas-Garcia previously pleaded guilty to accessory after the fact and was sentenced to 18 months’ imprisonment in 2009 and subsequently deported.
The investigation in this case was conducted by United States Customs and Border Protection, Homeland Security Investigations and the Pinal County Sheriff’s Office. The prosecution was handled by Lisa Jennis, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-15-01157-PHX-DLR
RELEASE NUMBER: 2017-032_Salas-Garcia
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Albuquerque Man Sentenced to Fifteen Years for Commercial Sex Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney James D. Tierney, Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso, Texas, and Chief Gorden G. Eden, Jr., of the Albuquerque Police Department (APD), announced that Shane Roach, 27, of Albuquerque, N.M., was sentenced last week in federal court for his conviction on a commercial sex trafficking charge.
Senior U.S. District Judge James A. Parker sentenced Roach on April 13, 2017, to a fifteen-year term of imprisonment to be followed by five years of supervised release. Roach also was ordered to register as a sex offender when he completes his prison sentence.
Roach was arrested on July 1, 2015, on a criminal complaint charging him with commercial sex trafficking. Roach subsequently was indicted and charged with using force, threats of threats, and coercion to force a victim to engage in commercial sex acts. The indictment charged Roach with committing the crime between May and June of 2015 in Bernalillo County, N.M.
Roach went to trial on the indictment on Oct. 4, 2016, and the jury returned a guilty verdict on Oct. 7, 2016.
During the trial, the victim told the jury that in early 2015, she was a heroin addict who turned to prostitution to support her heroin habit. The victim met Roach in late April 2015, and turned to him for help shortly thereafter when she fell on hard times. For the next month and a half, Roach was the victim’s pimp and forced her to engage in prostitution. The victim said that, during that time, Roach forced her to engage in sex with men four or five times a day, and that Roach kept all her earnings, amounting to $400.00 to $500.00 a day. The victim also testified that Roach beat her on a number of occasions, brandished a firearm at her, and threatened to harm her family if she left him. During the month and a half during which she was sex trafficked by Roach, the victim had only three or four days off.
An APD detective testified at trial that on May 27, 2015, while acting in an undercover capacity, he arranged to meet the victim at an Albuquerque-area hotel after getting her contact information from an online prostitution advertisement. The meeting was brief because the victim recognized the detective’s partner, who was outside, as a police officer, and told the undercover officer that there were officers outside. The undercover officer testified that, on June 10, 2015, APD received a call for help from the victim and he was one of the officers who responded. During that meeting, the victim told APD that she was being sex trafficked by Roach, and the investigation leading to Roach’s conviction began that day.
Roach testified in his own defense. While generally acknowledging that he was the victim’s pimp, Roach denied using threats of force, force or coercion to force to the victim to engage in commercial sex acts.
This case was investigated by the HSI office in Albuquerque and APD’s Vice Unit. Assistant U.S. Attorneys Norman Cairns and Kimberly A. Brawley prosecuted the case.
Albuquerque Man Pleads Guilty to Federal Meth Trafficking ChargesRead the Press Release
ALBUQUERQUE – Joshua Sedillo, 30, of Albuquerque, N.M., pled guilty today in federal court to a methamphetamine trafficking charge.
Sedillo and his co-defendant Ramon Quezada, 32, were arrested during an ATF-led investigation that resulted in the filing of 59 federal indictments and a federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. The investigation began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Sedillo and Quezada were arrested in July 2016, on an indictment charging them with conspiracy to distribute methamphetamine on May 11, 2016, and Sedillo individually with distribution of methamphetamine on May 25, 2016. According to the indictment, the offenses took place in Bernalillo County, N.M.
During today’s proceedings, Sedillo pled guilty to the indictment charging him with distributing methamphetamine on May 11, 2016 and May 25, 2016. Sedillo entered the guilty plea without the benefit of a plea agreement. At sentencing, Sedillo faces a mandatory minimum penalty of five years and a maximum of 40 years in prison. Sedillo remains in custody pending a sentencing hearing which has yet to be scheduled.
To date, 43 of the 104 defendants have entered guilty pleas, including Quezada, and 15 have been sentenced. The remaining defendants have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of ATF and is being prosecuted by Assistant U.S. Attorney Jacob Wishard.
Akron man pleads guilty to soliciting the murder of members of the U.S. militaryRead the Press Release
Terrence J. McNeil, 24, of Akron, pleaded guilty to five counts of solicitation to commit a crime of violence and five counts of making threatening interstate communications involving his soliciting the murder of members of the U.S. military.
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, Acting U.S. Attorney David A. Sierleja for the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division.
“Terrence McNeil pleaded guilty to soliciting the murder of members of our military. He disseminated ISIL’s violent rhetoric, circulated U.S. military personnel information, and explicitly called for the killing of American service members in their homes and communities. Now, he will be held accountable,” said Acting Assistant Attorney General McCord. “The National Security Division’s highest priority is counterterrorism. We will continue to use all of our tools to disrupt those who use social media to threaten acts of violence against our military members and their families, on behalf of terrorist organizations.”
“This case demonstrates the challenges faced by law enforcement in confronting global terrorism,” said Acting U.S. Attorney Sierleja. “It highlights the dangers posed by terrorists committed to carrying out attacks here in the United States and their use of social media to accomplish their mission. The message should be clear that individuals who engage in this behavior will be aggressively prosecuted.”
“While we aggressively defend First Amendment rights, the individual arrested went far beyond free speech by reposting names and addresses of 100 U.S. service members, all with the intent to have them killed,” said Special Agent in Charge Anthony. “We will remain vigilant in our efforts to stop those who wish to support these despicable acts.”
According to documents filed in the case:
McNeil, a U.S. citizen, professed his support on social media on numerous occasions for the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. On or about Sept. 24, 2015, using a Tumblr account, McNeil reblogged a file with the banner “Islamic State Hacking Division,” followed by “Target: United States Military” and “Leak: Addresses of 100 U.S. Military Personnel.”
The file type is a .gif file, which allows multiple still images to be looped in one file, with a timed delay between each image. The text of the first file reads “O Brothers in America, know that the jihad against the crusaders is not limited to the lands of the Khilafah, it is a world-wide jihad and their war is not just a war against the Islamic State, it is a war against Islam…Know that it is wajib (translated to “necessary”) for you to kill these kuffar! and now we have made it easy for you by giving you addresses, all you need to do is take the final step, so what are you waiting for? Kill them in their own lands, behead them in their own homes, stab them to death as they walk their streets thinking that they are safe…”
The file then loops several dozen photographs, purportedly of U.S. military personnel, along with their respective name, address and military branch. The final image looped is a picture of a handgun and a knife with text that reads “…and kill them wherever you find them…”
The defendant posted multiple other kill lists in late 2015, all of which repeated the same refrain, calling on others to seek out and murder U.S. servicemen and women.
McNeil is scheduled to be sentenced on August 2. Under the terms of his plea agreement, he faces a sentence of between 15 and 20 years in prison.
The FBI’s Joint Terrorism Task Force in Cleveland investigated this case. This case is being prosecuted by Assistant U.S. Attorney Christos Georgalis and Michelle Baeppler for the Northern District of Ohio, with assistance from Trial Attorney Jennifer Levy of the National Security Division’s Counterterrorism Section.
14th Annual Project Sentry Logo Contest Winners AnnouncedRead the Press Release
Contact Person: D. Josev Brewer (864) 282-2100
Columbia, South Carolina ---- United States Attorney Beth Drake announced today the winners of the United States Attorney’s Office 14th Annual Project Sentry Logo Contest. The winners are from the following schools:
K-2nd grade division winner: Ayden Downey, Ocean Drive Elementary, N. Myrtle Beach, SC
3rd-5th grade division winner: Natalie James, Slater Marietta Elementary, Marietta, SC
6th-8th grade division winner: Kyler Fleeman, West Oak Middle School, Westminster, SC
9th-12th grade division: Zandria Smith, Military Magnet Academy, N. Charleston, SC
Overall winner: Kyler Fleeman, West Oak Middle School, Westminster, SCThe winners were chosen from 285 entries from 13 schools across South Carolina. Each division winner will receive a $50.00 award, with the overall winner receiving an additional $50.00 award. All of the students who participated will receive a Certificate of Appreciation for logo submissions.
The statewide contest fosters an opportunity for South Carolina students to tell the entire state how they prevent gun violence in their school and focuses on deterrence of juvenile gun violence and ensuring secure school environments. The contest was open to students in all South Carolina schools.
The winning entries were selected by “The Insiders,” a select group of students from the South Carolina Department of Juvenile Justice, who travel throughout the state, encouraging troubled children and promoting community awareness of the prevalence and consequences of juvenile crime. The U.S. Attorney's Office coordinated with the South Carolina Law Enforcement Officers’ Association Foundation (SCLEOA) to provide the cash awards to the winners.
Project Sentry, which is part of the district’s Project Safe Neighborhoods/Project CeaseFire program, is a vital step in strengthening our ability to prevent gun crimes among our young people and to ensure a safe learning atmosphere for our children. For more information on the Project Sentry program and to view this year’s winning submissions as well as winning logos over the years, visit http://www.justice.gov/usao/sc/programs/logowinners.html
US Attorney Beth Drake commended the students and their engagement on helping foster this very important dialogue. "Thanks to all of the students who participated and congratulations to our winners! The students demonstrated some real wisdom we can all learn from."
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17 April 2017
Wilmington Man Sentenced on Second Child Pornography Possession ConvictionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Donald Ray Boles, 59, of Wilmington, Vermont, was sentenced on April 17, 2017, in United States District Court in Burlington, Vermont, to serve 120 months in federal prison after his conviction at trial for possession of child pornography. U.S. District Judge William K. Sessions III also ordered Boles to serve a 10-year period of supervised release and to pay a $100 special assessment.
According to court records and proceedings, on September 6, 2011, the Federal Bureau of Investigation executed a warrant to search Boles’ residence for evidence of child pornography. During the search, numerous computers and other digital media were seized. During a forensic examination conducted by the Vermont Internet Crimes Against Children Task Force, approximately 140 images of child pornography were found on various computers and hard drives from the residence. Boles’ computers also contained thousands of images of child erotica, as well as sexually explicit cartoons, anime, and graphic stories. The computers also revealed that Boles communicated over the Internet with other offenders about their shared interest in preschool and toddler girls.
This was Boles’ second conviction for possession of child pornography. In 1999, then-U.S. Customs Service agents executed a search warrant of Boles’ residence for child pornography. Boles was charged and eventually pleaded guilty to one count of possession of child pornography in United States District Court in Vermont. In June 2001, Judge Sessions ordered Boles to serve 15 months imprisonment, followed by two years of supervised release.
Acting United States Attorney Eugenia A.P. Cowles commended the efforts of the FBI, the Vermont Internet Crimes Against Children Task Force, and the New York State Police in the investigation and prosecution of Boles. The prosecution of Boles was handled by Assistant U.S. Attorneys Barbara A. Masterson and Abagail E. Averbach. Boles was represented by Assistant Federal Defenders Steven L. Barth and Elizabeth K. Quinn.
Acting U.S. Attorney Cowles noted that this prosecution is part of the U.S. Department of Justice's Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Waterbury Grocery Store Worker Pleads Guilty to Defrauding Federal Food Stamp ProgramRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that TAHIR SHAHZAD, 33, of Harrison, New York, waived his right to be indicted and pleaded guilty today in Hartford federal court to one count of unlawful use of food stamp benefits and one count of conspiracy to commit food stamp fraud.
The federal Supplemental Nutrition and Assistance Program (“SNAP”) is administered by the USDA’s Food and Nutrition Service and utilizes federal tax dollars to subsidize low-income households to provide them with the opportunity to achieve a more nutritious diet by increasing their food-purchasing power. SNAP recipients purchase eligible food items at retail food stores through the use of an Electronic Benefits Transfer (EBT) card, and SNAP benefits may be accepted by authorized retailers only in exchange for eligible items. Items such as alcoholic beverages, cigarettes, paper goods and soaps are not eligible for purchase with Food Stamp benefits, and it is a violation of the rules and regulations governing the food stamp program to allow benefits to be used to purchase ineligible items. SNAP benefits may not lawfully be exchanged for cash under any circumstances. The program is designed so that the total amount of each purchase is electronically transferred to the retailer’s designated bank account.
According to court documents and statements made in court, SHAHZAD worked at WB Trade Fair Grocery, located at 43 Willow Street in Waterbury. SHAHZAD was the nephew of the store owner and at times acted as the store manager, supervising at least four other individuals who worked at the store. From November 2014 until June 2016, SHAHZAD and others illegally allowed customers to redeem their food stamp benefits for cash and other ineligible items, including cigarettes, glass pipes, bongs, and hookahs. SHAHZAD charged the customers’ food stamp cards approximately double the value for these illegal transactions.
Given the stock of eligible food items at the store, the number of registers and the customer amenities, it is estimated that WB Trade Fair Grocery could lawfully redeem at most between $120,000 to $240,000 per year in food stamp benefits. However, during this approximately 18-month period, food stamp redemptions at the store totaled approximately $3.2 million.
SHAHZAD is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on July 13, 2017, at which time he faces a maximum term of imprisonment of 10 years, a fine of up to twice the gross loss from the offense, and restitution. He is released on a $50,000 bond.
Two men who worked at WB Trade Fair Grocery previously pleaded guilty to the same charges. Raul Carlos Monarca-Gonzalez pleaded guilty on November 28, 2016. On April 7, 2017, he was sentenced to 30 months of imprisonment. Tallat Mahmood pleaded guilty on March 30, 2017, and is scheduled to be sentenced on July 12, 2017.
This matter has been investigated by the U.S. Department of Agriculture, Office of Inspector General, and is being prosecuted by Assistant U.S. Attorneys Anastasia King and Neeraj Patel.
Valencia County Woman Sentenced to Prison for Federal Heroin Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Fabrienne Rosalinda Morales, 40, of Peralta, N.M., was sentenced today in federal court to 18 months in prison followed by three years of supervised release for her heroin trafficking conviction.
Morales and her and co-defendant Christopher Gonzales, 20, of Rio Rancho, N.M., were arrested in Jan. 2016, on a five-count indictment charging Morales and Gonzales with conspiracy, Gonzales with possessing heroin and Suboxone with intent to distribute, and Morales with distributing heroin and Suboxone. The indictment was superseded on Feb. 9, 2016, to add a third defendant, Ismael Vargas, 29, of Belen, N.M., to the conspiracy charge. According to the superseding indictment, the three defendants committed the crimes charged on Aug. 2, 2015, in Sandoval County, N.M. At the time, Gonzales was a corrections officer at the Sandoval County Detention Center.
On Jan. 13, 2017, Morales pled guilty to distributing heroin. In entering the guilty plea, Morales admitted that on Aug. 2, 2015, she took heroin to the Sandoval County Detention Center and gave it to a corrections officer.
On March 9, 2017, Vargas pled guilty to Count 1 of the superseding indictment charging him with conspiracy to distribute heroin. In entering the guilty plea, Vargas admitted that on Aug. 2, 2015, while he was an inmate at the Sandoval County Detention Center, he arranged for heroin to be delivered to the jail. Vargas further admitted that he facilitated the payment of money to a corrections officer to get the heroin into the jail. Under the terms of his plea agreement, Vargas faces up to 41 months in federal prison followed by a term of supervised release to be determined by the court. Vargas is currently scheduled for sentencing on June 14, 2017.
On Feb. 28, 2017, Gonzales pled guilty to possessing heroin with intent to distribute. In entering the guilty plea, Gonzales admitted that on Aug. 2, 2015, while he was working as an officer at the Sandoval County Detention Center, he brought heroin to the Detention Center with the intention of delivering it to an inmate. A sentencing hearing for Gonzales is currently scheduled for May 31, 2017.
This case was investigated by the Albuquerque office of the DEA. Assistant U.S. Attorney Edward Han is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Tax Preparer Arrested for Tax EvasionRead the Press Release
CORPUS CHRISTI, Texas – On the eve of the federal tax filing deadline, a local woman has been arrested on charges of tax evasion and aiding in the preparation of false tax returns, announced Acting U.S. Attorney Abe Martinez along with D. Richard Goss of IRS-Criminal Investigation.
A federal grand jury returned a 50-count indictment against Cristina Gonzalez April 12, 2017, which lead to her arrest this morning. She is expected to make her initial appearance before U.S. Magistrate Judge Jason B. Libby at 2:00 p.m. today.
Gonzalez is charged with 46 counts of willfully aiding and assisting in the preparation of false U.S. Income Tax Returns for others as well as four counts of willfully filing a false income tax return for herself. The indictment alleges she knowingly filed tax returns that underreported her income resulting in a substantial tax due to the United States. Gonzalez also aided others in the preparation and filing of income tax returns that were false, according to the charges. Those returns allegedly included tax credits which Gonzalez knew the taxpayers were not entitled to claim.
Each conviction of tax evasion carries a possible maximum sentence of five years in federal prison, while aiding in the preparation of false tax returns carries a three-year-maximum term. Each conviction could also result in up to a $250,000 fine.
IRS-CI conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
An indictment or information is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Taos County Man Pleads Guilty to Federal Carjacking ChargeRead the Press Release
ALBUQUERQUE – Richard Howieson, 56, of Costilla, N.M., pled guilty this afternoon in Albuquerque, N.M., to a federal carjacking charge. The plea agreement recommends that Howieson be sentenced to a term of imprisonment within the range of 12 to 36 months followed by a period of supervised release to be determined by the court.
Howieson was arrested on Oct. 11, 2016, on a three-count indictment charging him with carjacking, carrying a firearm during and in relation to a crime of violence, and being a felon in possession of a firearm. The indictment was superseded on Feb. 7, 2017, to charge Howieson with carjacking and carrying a firearm in relation to a crime of violence. According to the indictment, Howieson committed these crimes on Feb. 19, 2013, in Taos County, N.M.
During today’s proceedings, Howieson pled guilty to a felony information charging him with carjacking on Feb. 19, 2013. Howieson remains in federal custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Santa Fe office of the FBI and the New Mexico State Police, and is being prosecuted by Assistant U.S. Attorney George Kraehe.
Suspended Norfolk Treasurer Sentenced to Six Years in PrisonRead the Press Release
NORFOLK, Va. – Anthony L. Burfoot, 48, of Norfolk, was sentenced today to six years in prison and ordered to forfeit $250,000 for conspiracy to commit honest services wire fraud, honest services wire fraud, conspiracy to obtain property under color of official right, obtaining property under color of official right, and perjury. Burfoot is currently suspended as the Norfolk City Treasurer and is a former Vice Mayor of Norfolk and City Councilman.
“When elected officials engage in corruption it erodes public confidence in our democratic system of government,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Burfoot’s well-publicized criminal exploits have eroded public confidence in how their tax dollars are used and managed, and his selfish actions feed the worst perceptions about public employees, of whom the vast majority perform their duties selflessly and admirably. I want to thank the Assistant United States Attorneys and the FBI for their diligence and dedication in pursing this important case.”
“Public corruption is one the FBI’s highest priorities and this case reflects our commitment to the citizens of Hampton Roads to aggressively and relentlessly root out criminal corruption in our community,” said Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office. “Citizens deserve good governance and faithful service from their public officials. Greed and self-interest have no place in public service and dishonorable officials will be thoroughly investigated and exposed. In this effort one of our most important partners is the public, and we encourage honest citizens to report suspicious activity to the FBI through our regional tip line at 1-844-FIGHTPC.”
Burfoot was found guilty by federal grand jury on Dec. 9, 2016. According to court documents and evidence presented at trail, from 2005 through in or about Feb. 15, 2011, Burfoot engaged in a scheme to defraud the citizens of Norfolk of their right to the honest services of a Norfolk Councilman, Vice Mayor, and Chief Deputy Treasurer. Specifically, Burfoot solicited things of value including money, car payments, and home appliances from individuals with matters before city council and, in exchange, promised to perform specific official acts as well as other actions on an as needed basis on their behalf. Burfoot had illicit relationships with the managers of Tivest Development company as well as Thomas Arney, another developer and local restaurant owner. The managers of Tivest paid hundreds of thousands of dollars to Burfoot and, in exchange, Burfoot voted in favor of City ordinances that provided City-owned land to Tivest for nominal cost and additional City funds for infrastructure improvements. At Burfoot’s request, Arney paid $25,000 to the mother of two of Burfoot’s children after Burfoot promised to obtain the necessary votes for Arney to open a gentlemen’s club on Granby Street in Norfolk. Burfoot also committed perjury, in numerous ways, by claiming under oath during a federal trial that he never accepted nor solicited a thing of value in exchange for performing an official act. Furthermore, according to court records and evidence presented at trial, Ronald Boone, another developer and local restaurant owner, provided cash, gifts, free access to a beach house, other things of value to Burfoot. In exchange, Burfoot performed specific official actions and promised to engage in future official actions to benefit Boone and his business interests.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge District Judge Henry C. Morgan, Jr. Assistant U.S. Attorneys Melissa E. O’Boyle, Uzo E. Asonye, and Katherine Lee Martin prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-6.
Second Syracuse Man Pleads Guilty in Connection with Nedrow Gun Store BurglaryRead the Press Release
SYRACUSE, NEW YORK – Andrew Grady, 24, of Syracuse pled guilty today in federal court to conspiracy to steal firearms from a licensed dealer in connection with the November 20, 2014 break-in at Intimidator Sports in Nedrow, New York, where nine (9) handguns were stolen, announced United States Attorney Richard S. Hartunian and U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Ashan M. Benedict.
The burglary occurred during the early morning hours of November 20, 2014, when two persons used a sledgehammer to smash through the front doors of Intimidator Sports, triggering an alarm. Bolt cutters were used to sever a cable securing the nine (9) handguns to a display case after which the thieves fled with the stolen firearms. On January 5, 2015, Syracuse Police stopped a car driven by Leron Ross for failing to observe a stop sign. As officers were checking the status of his suspended driver’s license, Leron Ross drove off. During the ensuing pursuit, Syracuse Police saw Ross throw a handgun from the window of his car, which was later recovered and found to be a Glock .45 caliber pistol stolen in the break-in. A subsequent search warrant executed on the car by Onondaga County Sheriff’s detectives located a sledgehammer and gloves identical to those used in the burglary. Since the burglary, Syracuse Police have recovered four (4) of the stolen pistols in various locations.
Leron Ross was prosecuted by the Onondaga County District Attorney’s Office for Criminal Possession of a Weapon in the Third Degree, and after pleading guilty, was sentenced to serve three and one half to seven years in state prison. The United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Onondaga County Sheriff’s Department continued to investigate and later filed a federal criminal complaint charging Leron Ross and Andrew Grady with the burglary and conspiracy. Leron Ross pled guilty on June 14, 2016 in federal court to stealing all nine (9) handguns and was subsequently sentenced to serve 60 months in federal prison and ordered to pay $6,686.00 in restitution to the victim.
Sentencing for Andrew Grady is scheduled for August 17, 2017, at which time he could receive up to five (5) years in prison, a term of supervised release of up to three (3) years, a special assessment of $100, and a fine of up to $250,000.00. In addition, the Court can order restitution to the victim.
This case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Onondaga County Sheriff’s Department, and the Syracuse Police Department and is being prosecuted by Assistant U.S. Attorneys Richard Southwick and Emmet O’Hanlon with assistance from the Onondaga County District Attorney’s Office.
Scranton Man Sentenced to Seven Years in Prison for Armed Robbery of Econo Lodge in ScrantonRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Rodney Whiting, age 24, of Scranton, was sentenced today by United States District Judge Malachy E. Mannion, to serve seven years in prison for the armed robbery of the Econo Lodge in Scranton on February 13, 2016.
According to United States Attorney Bruce D. Brandler, Whiting previously pleaded guilty to the charge of brandishing a firearm in furtherance of a crime of violence. Rodney Whiting was one of four individuals, including Kwa’shon Roane, age 24, of Gloucester, Virginia, Tracy Whiting, age 24, of Newport News, Virginia, and Kelvin Robinson, age 24, also of Newport News, Virginia, who were indicted by a grand jury in March 2016, for the armed robbery of the Econo Lodge.
Previously, Kwa’shon Roane was sentenced to serve 111 months (9 years and 3 months) in prison by Judge Mannion for charges related to the incident. Kelvin Robinson and Tracy Whiting were each previously sentenced to serve seven years in prison.
The investigation was conducted by the Bureau of Alcohol, Tobacco and Firearms (ATF), the Scranton Police Department, the Pennsylvania State Police, the Lackawanna County District Attorney’s Office and numerous local law enforcement agencies, including the Taylor Borough and Moosic Borough Police Departments. The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
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Rio Rancho Man Sentenced to Eight Years in Prison for Federal Child Sexual Exploitation ConvictionRead the Press Release
ALBUQUERQUE – Joe Medina, 38, of Rio Rancho, N.M., was sentenced this morning in federal court in Albuquerque, N.M., for his conviction for enticing a child to travel in interstate commerce for the purpose of engaging in sexual activity. Medina will serve an eight-year term of imprisonment to be followed by 15 years of supervised release. Medina will be required to register as a sex offender after completing his prison sentence.
Medina’s sentence was announced by Acting U.S. Attorney James D. Tierney, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, and Acting Police Chief Paul Rogers of the Rio Rancho Police Department (RRPD).
Medina was arrested in Indianapolis, Ind., on July 20, 2015, based on a federal arrest warrant issued on a criminal complaint filed by the FBI in the U.S. District Court for the District of New Mexico. According to the criminal complaint, on July 9, 2015, the victim’s mother filed a missing person’s report to the RRPD asserting that the victim was missing.
The RRPD’s investigation revealed that Medina took the victim to Denver, Colo., where they boarded a bus. On July 12, 2015, Medina was arrested on a New Mexico state warrant when Medina and the victim were found on a bus that had stopped in Indianapolis.
Medina was indicted on Aug. 11, 2015, and was charged with transporting a minor with intent to engage in criminal sexual activity between July 9, 2015 and July 12, 2015, and production of a visual depiction of a minor engaging in sexually explicit conduct.
On Nov. 7, 2016, Medina pled guilty to a felony information charging him with coercion and enticement. In entering the guilty plea, Medina admitted that from July 9, 2015 through July 12, 2015, he enticed the 16-years-old victim to leave Sandoval County, N.M., with the intent to travel to New York, where Medina intended to engage in illegal sexual activity.
This case was investigated by the Albuquerque office of the FBI, RRPD, Corrales Police Department and the New Mexico Regional Computer Forensic Laboratory. The 13th Judicial District Attorney’s Office, U.S. Marshals Service, Indiana State Police and FBI in Denver and Indianapolis assisted in the investigation.
Assistant U.S. Attorney Sarah Mease prosecuted the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit.
Ohio man responsible for Huntington overdoses sentenced to over 18 years in federal prison for heroin crimeRead the Press Release
HUNTINGTON, W.Va. – An Ohio man who was responsible for numerous overdoses in Huntington in August 2016 was sentenced today to 18 years and four months in federal prison, announced United States Attorney Carol Casto. Bruce Lamar Griggs, also known as “Ben” and “Benz,” 22, of Akron, previously pleaded guilty to distribution of heroin.
On the afternoon of August 15, 2016, Griggs went to the area of 914 Marcum Terrace in Huntington and sold heroin to a number of individuals. Several of those individuals provided information to the Huntington FBI Drug Task Force indicating that they bought what they believed to be heroin from someone they knew as “Benz” or “Ben.” Ultimately, those individuals identified Griggs as “Benz” or “Ben.” Approximately 26 individuals who bought heroin from Griggs that afternoon suffered overdoses very shortly after using the drug. Many of the overdose victims required medical attention, which involved taking blood and urine samples. Laboratory tests on those samples indicated the presence of heroin, fentanyl, and carfentanil. Carfentanil is an opioid that is 10,000 times stronger than morphine and is used as an elephant tranquilizer. Griggs admitted that he was responsible for the overdoses and agreed that his sentence could be increased as a result.
The Huntington FBI Drug Task Force led the investigation. Assistant United States Attorney R. Gregory McVey is in charge of the prosecution. Chief United States District Judge Robert C. Chambers imposed the sentence.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Non-Indian Man from Espanola Pleads Guilty to Assaulting Zuni Pueblo WomanRead the Press Release
ALBUQUERQUE – Steven Baros, 34, of Espanola, N.M., pled guilty this morning in federal court in Albuquerque, N.M., to an assault charge. The plea agreement includes a recommendation that Baros be sentenced to a term of imprisonment within the range of 18 to 24 months followed by a period of supervised release to be determined by the court.
Baros was charged by criminal complaint on May 17, 2016, with assault resulting in serious bodily injury and assault with a dangerous weapon. According to the complaint, Baros assaulted his intimate partner, a Zuni Pueblo woman, by punching and kicking her arms and legs, kicking and stomping on her head, throwing her to the ground, and threatening her with a knife. Baros also attempted to set the victim’s house on fire before leaving in the victim’s vehicle.
Baros subsequently was indicted on June 30, 2016, and charged with assault with a dangerous weapon, a knife, and assault resulting in serious bodily injury. According to the indictment, Baros committed these crimes on May 5, 2016, on Nambe Pueblo in Santa Fe County, N.M.
During today’s proceedings, Baros pled guilty to assault resulting in serious bodily injury. In entering the guilty plea, Baros admitted that on May 5, 2016, he assaulted the victim by punching and kicking her arms and legs, pulling her hair, throwing her to the ground, and kicking her when she was on the ground.
Baros remains in federal custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services. Assistant U.S. Attorney Nicholas J. Marshall is prosecuting the case as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Nigerian Man Pleads Guilty to Hacking and Fraud SchemeRead the Press Release
UTICA, NEW YORK – Obinna Obioha, age 31, and a citizen of Nigeria, pled guilty today to wire fraud, and admitted to participating in a scheme to hack into computers and email accounts in the United States for the purpose of stealing money from American companies.
The announcement was made by United States Attorney Richard S. Hartunian and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
As part of his guilty plea, Obioha admitted that, while in Nigeria, he worked with others to hack into computers and email accounts used by dozens of victims in the United States and around the world. After monitoring victims’ information to identify imminent commercial transactions, Obioha and his associates created knockoff email addresses that appeared similar to – but varied slightly from – victims’ legitimate email addresses.
Obioha and his associates then used those bogus email accounts to send fraudulent invoices to victims, instructing them to wire funds to bank accounts controlled by Obioha and his associates, under the pretense that the wires were payments for actual deals that had been previously negotiated by the victims. Obioha admitted that between January and September 2016, he was involved in at least 50 wire transfers, and that about $6.5 million was sent to the bank accounts that he and his associates controlled. The accounts received money from fraud victims in New York, Florida, Illinois, Ohio, and Texas, among other places.
Obioha was arrested on October 6, 2016, after flying from Lagos, Nigeria, to JFK International Airport. He has been in custody since that time.
United States Attorney Richard S. Hartunian said: “Foreign criminal enterprises prey upon American businesses and are using increasingly sophisticated means to do so, as demonstrated by this scheme. Obioha’s apprehension and conviction is a reminder that foreign nationals targeting American businesses cannot operate with impunity and that the reach of U.S. law enforcement agencies is global.”
“The FBI plays the long game,” said FBI Special Agent in Charge Vadim D. Thomas. “Today's plea is proof that no matter how distant justice may seem, no matter where criminal enterprises may operate, the FBI and our law enforcement partners are committed to securing justice for our businesses and communities.”
Obioha faces up to 20 years in prison and a maximum $250,000 fine, as well as the possibility of being ordered to pay restitution, when he is sentenced on July 26, 2017 by United States District Judge David N. Hurd. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Wayne A. Myers.
New York City Man Sentenced to 37 Months in Prison for Drug DealingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on April 17, 2017, Leander Hannibal, 39, of Brooklyn, New York, was sentenced to 37 months in federal prison after his guilty plea to charges that he possessed with the intent to distribute heroin and cocaine base. U.S. District Court Judge William K. Sessions III also ordered that Hannibal serve three years of supervised release after his prison term.
According to court records, in June and July of 2016, Hannibal was bringing quantities of heroin and cocaine base from New York City to Vermont in order to distribute those drugs. After an investigation, on July 15, 2016, agents from the Drug Enforcement Agency (DEA) arrested Hannibal. DEA seized approximately 11 grams of heroin and 28 grams of cocaine base from Hannibal. Hannibal has been in federal custody since.
For his crime, Hannibal faced a statutory maximum term of 20 years in prison. The government and the defense agreed that a 37-month prison sentence was appropriate. In imposing that sentence, Judge Sessions considered the severity of the offense; the harm heroin has caused the Vermont community, and Hannibal’s criminal record, among other factors.
Acting United States Attorney Eugenia Cowles commended the efforts of DEA, the Burlington Police Department, and the Vermont State Police Drug Task Force for their work in this investigation. Acting United States Attorney Cowles noted that this case is part of the U.S. Attorney’s Office’s Vermont Heroin Initiative, which is a coordinated effort by the U.S. Attorney’s Office and federal, state, and local law enforcement agencies to combat heroin distribution in Vermont.
The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Hannibal is represented by Robert Behrens from the Burlington law firm Behrens, Venman & Sussman.
Monroe County Man’s 12 Year Sentence for Investment Fraud Affirmed by Appellate CourtRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the U.S. Court of Appeals for the Third Circuit affirmed the conviction and sentence of Richard J. Harley, age 73, of Shawnee on the Delaware, who was previously sentenced to serve 12 years in prison by United States District Court Judge A. Richard Caputo in November 2015. Harley was convicted after a two-week jury trial in December 2014, on multiple counts of wire fraud, bank fraud, bankruptcy fraud, and making false statements on bankruptcy schedules relating to an elaborate investment fraud scheme.
According to United States Attorney Bruce D. Brandler, Harley defrauded investors and attempted to defraud the Federal Reserve Bank of New York and several financial institutions by soliciting money based on false claims that his company, RJH and Co. Inc., owned 10 million barrels of oil in Texas worth over $1 billion and had “unrestricted bond power” over billions of dollars of federal reserve bank instruments supposedly held at the Federal Reserve Bank of New York. As a result of the fraud, investors lost approximately $323,800.
The bank fraud charge relate to Harley’s attempt to deposit two phony $500 million checks purportedly issued by the Federal Reserve Bank of New York into several financial institutions. Harley also filed three fraudulent bankruptcy petitions in 2010, 2011 and 2012 where he attempted to discharge the debt he owed to one of the primary victims of the oil scheme.
Harley was previously convicted of mail and wire fraud and sentenced to five years’ imprisonment in 2001 for a scheme that defrauded AIDS patients and investors relating to a fraudulent ozone-enema treatment he claimed cured AIDS.
The prosecution was handled by United States Attorney Bruce D. Brandler and the appeal was handled by Stephen A. Cerutti, II, Chief of Criminal Appeals.
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Mescalero Apache Man Sentenced for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Matthew Joel Torres, 27, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., was sentenced this afternoon in federal court in Las Cruces, N.M., to 35 months in prison followed by two years of supervised release for his assault conviction.
Torres was arrested on April 18, 2016, on a criminal complaint charging him with assaulting a Mescalero Apache man by stabbing him twice in the stomach. Torres committed the assault on June 13, 2015, on the Mescalero Apache Indian Reservation in Otero County, N.M.
Torres pled guilty on Aug. 24, 2016, to a felony information charging him with assault with a dangerous weapon. In entering the guilty plea, Torres admitted that on June 13, 2015, he assaulted the victim by stabbing him in the abdomen twice with a knife with the intention of causing the victim bodily harm.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
Man Who Illegally Imported Chinese Cigarettes Sentenced to PrisonRead the Press Release
LOS ANGELES – A Los Angeles man who pleaded guilty to illegally engaging in the business of importing tobacco products was sentenced today to eight months in federal prison.
Zhi Xiong Chen, 56, of Chinatown, was sentenced by United States District Judge George H. Wu. In addition to the prison term, Judge Wu ordered the defendant to pay $152,278 to United States Custom and Border Protection.
From early 2011 until mid-2016, Chen illegally imported thousands of cartons of Chinese-made cigarettes without the necessary permits and without paying excise taxes.
Chen pleaded guilty in January to the felony offense of illegally engaging in the business of importing tobacco products and admitted that for nearly five years, despite not holding a permit to import tobacco products, he used several addresses to receive 15,128 cartons of Chinese-brand cigarettes. During this time, U.S. Customs and Border Protection officers also stopped approximately 9,824 cartons of Chinese-brand cigarettes at international mail facilities in California and New York intended for Chen.
As part of the scheme, Chen admitted that he attempted to evade paying more than $467,000 in federal and state excise taxes on the cigarettes that he illegally imported.
This case was investigated by the Alcohol and Tobacco Tax and Trade Bureau, the U.S. Food and Drug Administration’s Criminal Investigations, United States Postal Service, and IRS Criminal Investigation.
The case is being prosecuted by Assistant United States Attorney Valerie L. Makarewicz of the Tax Division and Trial Attorney Christopher S. Strauss of the Justice Department’s Tax Division.
Man Admits Guilt in Stolen Identity Refund Fraud Scheme Using Hacked UPMC Employee InformationRead the Press Release
PITTSBURGH - A foreign national residing outside of the United States pleaded guilty in federal court to charges of money laundering and aggravated identity theft, Acting United States Attorney Soo C. Song announced today.
Yoandy Perez Llanes, 33 pleaded guilty to two counts before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that early in 2014, tens of thousands of present and former employees of UPMC had their personal information compromised by hackers, who intruded into a UPMC computerized database and stole names, Social Security numbers, dates of birth and other personal identifying information. This data was then used to file over 900 false 2013 federal tax returns, which contained requests for tax refunds onto Amazon.com gift cards. Llanes and other conspirators laundered the Amazon.com gift cards to purchase electronic merchandise, which was shipped through reshipping services to Venezuela, and retrieved by Llanes and others. While the perpetrators claimed approximately $2.2 million in unlawful refunds, $1,475,000 million was actually disbursed in unlawful refunds.
Judge Hornak scheduled sentencing for August 18, 2017 at 9:30 a.m. The law provides for a total sentence of not more than 22 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation, the United States Secret Service and the United States Postal Inspection Service conducted the investigation that led to the prosecution of Yoandy Perez Llanes.
Magnolia Man Sent to Prison for Cocaine ConspiracyRead the Press Release
HOUSTON – A 35-year-old Magnolia resident has been ordered to federal prison following his conviction of conspiracy to possess with the intent to distribute cocaine, announced Acting U.S. Attorney Abe Martinez. Jose Jaime Solis Jr. pleaded guilty Nov. 17, 2016.
Today, U.S. District Judge Nancy Atlas, who accepted the guilty plea, handed Solis a sentence of 120 months in federal prison to be immediately followed by five years of supervised release.
Solis and co-defendant Ramon Sanchez were engaged in a scheme to transport cocaine via bus from Laredo to Houston. In March 2016, agents obtained video footage that showed Solis delivering a suitcase packed with more than 12 kilograms of cocaine to a bus in Laredo that was bound for Houston. Authorities arrived at the bus terminal and seized the bag along with the video. Solis ultimately admitted responsibility for the cocaine discovered in the suitcase.
Sanchez, 26 of Laredo, also pleaded guilty and is set for sentencing May 25, 2017.
Both men have been and will remain in custody.
The Drug Enforcement Administration and Border Patrol conducted the Organized Crime Drug Enforcement Task Force Operation. Assistant U.S. Attorney John D. Jocher is prosecuting the case.
Machine Gun with Attached Silencer, Five Handguns Seized During ATF, Providence Police InvestigationsRead the Press Release
PROVIDENCE – A year-long investigation into identifying individuals allegedly possessing or trafficking firearms in and around the Chad Brown neighborhood of Providence, and/or allegedly using firearms in furtherance of drug trafficking crimes, resulted in the seizure of six firearms, including a machine gun with an attached silencer, significant quantities of heroin and fentanyl, and approximately $21,000 in suspected drug proceeds. Four individuals have been indicted by a federal grand jury and detained in federal custody.
In spring 2016, a joint Bureau of Alcohol, Tobacco, Firearms (ATF) and Explosives, ATF Task Force and Providence Police investigation was launched to analyze shell casings retrieved from crime scenes in and around the Chad Brown neighborhood and elsewhere utilizing ATF’s National Integrated Ballistic Information Network (NIBN). NIBN identifies marks left on shell casings unique to a particular firearm. NIBN then assists in linking crime scenes to a firearm. The investigation was expanded to attempt to determine who possessed various firearms used to commit crimes and/or the origin of those firearms.
Acting United States Attorney Stephen G. Dambruch; John H. Hayes, Resident Agent in Charge of ATF in Rhode Island; and Providence Police Chief Colonel Hugh T. Clements, Jr., today announced that since April 2016, a joint ATF, ATF Task Force and Providence Police investigation has resulted in the seizure of a machine gun equipped with a silencer, a .45 caliber semi-automatic pistol, a .40 caliber semi-automatic pistol, a .25 caliber semi-automatic pistol, a .22 caliber revolver; a .380 caliber semi-automatic pistol, various types and quantities of ammunition, substantial quantities of heroin, fentanyl cocaine and crack cocaine, and approximately $21,000 in suspected drug proceeds.
The first of four defendants indicted as a result of these investigations was indicted by a federal grand jury in December 2016. On April 6, 2017, a federal grand jury returned indictments against three other individuals in three separate cases. Arraignments in U.S. District Court in Providence were completed on Friday, April 14, 2017.
Edward Trinidad
On April 6, 2017, a federal grand jury returned a six-count indictment charging Edward Trinidad, 29, of Providence, with possessing and transferring a firearm; possession of an unregistered machine gun; possession of an unregistered silencer; distribution of 100 or more grams of fentanyl laced heroin; and two counts of distribution of heroin and fentanyl.
It is alleged that on June 3, 2016, Trinidad sold a machine gun equipped with a silencer to an undercover ATF agent. It is also alleged that between June 24, 2016, and March 31, 2017, Trinidad sold heroin and fentanyl to the undercover ATF agent.
Kevin Arroyo
On April 6, 2017, a federal grand jury returned a three-count indictment charging Kevin Arroyo, 29, of Providence, with engaging in the business of dealing firearms without a license; possession of stolen firearms; and distribution of heroin. Arroyo was arraigned in U.S. District Court on April 10, 2017, and ordered detained.
It is alleged that on three occasions an undercover ATF agent purchased firearms from Arroyo. It is alleged that on May 26, 2016, Arroyo sold the agent a stolen .25 caliber semi-automatic pistol; on September 21, 2016, Arroyo sold the agent a .22 caliber revolver and 14 grams of heroin; and on April 5, 2017, Arroyo sold the agent a .45 caliber semi-automatic pistol.
General Jones
On April 6, 2017, a federal grand jury returned an eleven-count indictment charging General Jones, 30, of Pawtucket, with five counts of distribution of cocaine; two counts of possession with the intent to distribute cocaine; two counts of distribution of 28 grams or more of crack cocaine; and one count each possession with the intent to deliver 28 grams or more of crack cocaine and one count of possession with the intent to distribute to cocaine. Jones was arraigned in U.S. District Court on April 14, 2017, and ordered detained in federal custody.
It is alleged that during law enforcement’s firearms investigations, Jones sold cocaine and crack cocaine to an individual assisting ATF in their investigations. On the date of Jones’ arrest, March 9, 2017, search warrants were executed at locations associated with Jones. At one location, from inside a safe, law enforcement seized over 375 grams of cocaine, nearly 100 grams of crack cocaine and approximately $13,000 in cash. At a second location law enforcement seized an additional $8,000 in cash.
Lawrence M. Crowell
On December 15, a federal grand jury returned a three-count indictment charging Lawrence M. Crowell, 31, of Providence, with being a felon in possession of a firearm, possession of a firearm in furtherance of drug trafficking and possession with the intent to distribute marijuana. Crowell was arraigned in U.S. District Court on December 19, 2016, and ordered detained in federal custody.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The ATF Task Force is comprised of agents and officers from ATF, Providence Police Department, Pawtucket Police Department, Cranston Police Department, Rhode Island State Police, Providence Fire Department and the Rhode Island Department of Corrections.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Los Angeles Man Sentenced to Federal Prison for Fraud Charges Related to Lottery Scheme that Targeted Elderly VictimsRead the Press Release
LOS ANGELES – A Los Angeles man was sentenced today to 18 months in federal prison for his role in a lottery scam that targeted elderly victims with false promises of large cash prizes and cars that would be delivered when victims paid taxes, fees and insurance.
Carl Dean Bullock, 65, of South Los Angeles, pled guilty in February to mail and wire fraud offenses for defrauding victims who were falsely told they had won the Publishers Clearing House sweepstakes or other lottery prizes, but they needed to pay fees or taxes to collect the purported winnings. In addition to the prison term, Bullock was sentenced to three years’ supervised release with specific conditions regarding bank accounts and use of the mail and was ordered to pay restitution to the victims in the total amount of $227,675.21
According to court documents, Bullock admitted that he and his co-schemers collected money from the victims of his scheme via Western Union and MoneyGram wire transfers, money orders sent through the U.S. Mail and direct cash payments. Bullock personally received at least $45,000, some of which he shared with his co-schemers, most of whom were in Jamaica.
The investigation in this case was conducted by the United States Postal Inspection Service, which received substantial assistance from the Glendale Police Department. The prosecution was handled by Assistant United States Attorney Michael G. Freedman of the General Crimes section.
Lexington Man Receives Life Sentence for Distributing Fentanyl Resulting in DeathRead the Press Release
LEXINGTON, Ky. – A federal judge has sentenced a Lexington man to life in prison, for illegally distributing drugs that caused an overdose death in Lexington.
Senior U.S. District Judge Joseph M. Hood formally sentenced 28 year-old Joshua Donald Ewing for distribution of fentanyl and heroin resulting in the death of Jeremy Deaton.
Under federal law, those convicted of illegally distributing Schedule I and II drugs that result in death face a minimum of 20 years and maximum of life in prison. If the defendant has a prior felony drug conviction, they are subject to a mandatory life sentence. A jury found Ewing guilty of the offense earlier this year.
According to the evidence at trial, in February of 2016, Ewing sold a mixture of fentanyl and heroin to Deaton, who thought he was only receiving heroin. Deaton consumed the drugs and died of an overdose. Fentanyl is an extremely powerful opioid that can be as much as 50 times stronger than heroin. A toxicologist confirmed that, had it not been for the fentanyl, Deaton would not have died. The toxicologist further explained that Deaton’s blood contained more than five times the therapeutic range for fentanyl.
At the time he illegally sold the drugs to Deaton, Ewing was on probation for a prior felony drug conviction.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Timothy J. Plancon, Special Agent in Charge of the Detroit Field Division of the Drug Enforcement Administration; and Mark Barnard, Chief of Lexington Police, jointly made the announcement
The investigation was conducted by the DEA and the Lexington Police. Assistant U.S. Attorney Todd Bradbury prosecuted this case on behalf of the federal government
Las Cruces Man Pleads Guilty to Federal Child Exploitation ChargeRead the Press Release
ALBUQUERQUE – Ignacio Salcido Jr., 38, of Las Cruces, N.M., pled guilty last week in federal court to transporting a minor in interstate commerce for the purpose of engaging in sexual activity. The plea agreement recommends that Salcido be sentenced to a term of imprisonment within the range of 120 to 135 months to be followed by a period of supervised release to be determined by the court. In the plea agreement, Salcido agreed to pay $210,012 in restitution to any victim who requests restitution prior to sentencing. Salcido will also be required to register as a sex offender.
Salcido was arrested on Aug. 26, 2016, by Homeland Security Investigations (HSI) on a criminal complaint alleging that he transported a child under the age of 18 years in interstate commerce on Aug. 22 and 23, 2016, with the intention of engaging in sexual activity. According to the criminal complaint, Salcido traveled with the victim from Phoenix, Ariz., to Juarez, Mexico, then to Las Cruces, and engaged in sexual activity with the victim during that time. Salcido subsequently was indicted on the same charge on Nov. 9, 2016.
According to court documents, Salcido picked up the victim on the side of the road in Phoenix on Aug. 22, 2016, while traveling with two other individuals (witnesses) from San Diego, Calif. Court documents further allege that the witnesses observed Salcido attempt to sexually abuse the victim on several occasions during the trip while the victim was sleeping in the vehicle. Later that day, Salcido drove the victim and the witnesses into Juarez, where he again attempted to sexually abuse the victim while the witnesses were not in the vehicle. After returning to the United States, Salcido drove the victim and the witnesses to his residence in Las Cruces. At his residence, Salcido allegedly forced the victim to engage in sexual activity. The investigation into Salcido began on, Aug. 23, 2016, when one of the witnesses reported the sexual assault to school officials in Las Cruces.
On April 12, 2017, Salcido pled guilty to the indictment and admitted that on Aug. 22, 2016, he transported the victim, who was under the age of 18 years, in interstate commerce for the purpose of engaging in sexual intercourse with the victim. Salcido remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of HSI and the Las Cruces Police Department with assistance from the 3rd Judicial District Attorney’s Office. Assistant U.S. Attorneys Alexander B. Shapiro and Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Kanawha County man pleads guilty to possession of stolen mailRead the Press Release
CHARLESTON, W.Va. – A Kanawha County man pleaded guilty today to possessing stolen mail, announced United States Attorney Carol Casto. Jason Lee Spradling, 34, of Pinch, faces up to five years in federal prison and a $250,000 fine when he is sentenced on July 5, 2017. As part of his plea agreement, he has also agreed to pay restitution to the victims as ordered.
Spradling admitted that he possessed a large quantity of stolen mail, and that he knew the mail in his possession had been stolen. Specifically, Spradling admitted to stealing a box of checks from a mailbox and attempting to cash one of the checks in December 2015. Spradling also admitted that in July 2015, he was found in possession of hundreds of pieces of mail stolen from the Elkview area. Spradling further admitted that he had no legal right to possess the mail, nor to cash any checks contained within the stolen mail.
The United States Postal Inspection Service and the Kanawha County Sheriff’s Office conducted the investigation. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
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KC Woman Pleads Guilty to Marriage FraudRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman pleaded guilty in federal court today to her role in a marriage fraud conspiracy after participating in a wedding sting operation staged by federal agents.
Stephanie Harris, 22, of Kansas City, pleaded guilty before U.S. District Judge Gary A. Fenner to the charges contained in an Aug. 31, 2016, federal indictment.
Harris admitted that she participated in a conspiracy to assist African nationals in circumventing immigration laws by arranging fraudulent marriages. Co-defendants Delmar Dixon, 49, Kakeland Barnes, 37, Shakeisha Harrison, 37, and Traci R. Porter, 44, all of Kansas City, also have pleaded guilty to their roles in the marriage fraud conspiracy. In addition to the conspiracy, Dixon pleaded guilty to falsely swearing in an immigration matter.
Dixon admitted that he arranged 30 to 40 fraudulent marriages, including his own. Dixon charged the African nationals $1,000 upfront for his services, which included providing them U.S. citizen spouses. The African nationals were additionally required to pay $500 to the spouse at the time of the wedding, and an additional $500 immediately after completion of the wedding. They were required to pay their spouses $250 each month after the weddings until the immigration process was complete. The African nationals were coached by Dixon on how to make their marriages appear legitimate.
Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) agents utilized a confidential informant in a pretend ceremony that was staged by ICE-HSI. The confidential informant arranged a meeting with Dixon, paid the required fees, and married Harris, the spouse provided to him by Dixon, in a pretend ceremony staged by ICE-HSI on Nov. 24, 2015. The confidential informant continued to pay the $250 monthly fee to Harris for the fraudulent purported marriage through August 2016.
On a prior occasion, Dixon arranged for a marriage between Harris and a Kenyan national. Although they applied for and received a marriage license, they did not marry.
ICE-HSI also utilized an undercover agent in their investigation. The agent met with Dixon, who introduced the agent to Barnes, his intended spouse, on Jan. 23, 2016. Dixon advised the undercover agent that he and Barnes should rent an apartment in the Kansas City area and obtain life insurance policies together. The undercover agent also spoke alone with Barnes. Barnes told the agent she was involved with another man and had three children. She signified she understood the marriage would be a business transaction. The agent made a payment to Dixon and kept in contact with Dixon regarding his marriage. On February 19, 2016, the undercover agent wired $250 to Barnes and $500 to Dixon. Both retrieved the payments later that day. Dixon also offered the undercover agent $300 for each new client he referred.
Under federal statutes, Harris is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Kim Moore. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and U.S. Citizenship and Immigration Services, Fraud Detection and National Security.
Justice Department Settles Lawsuit Against South Dakota Business on Behalf of Air National Guard MemberRead the Press Release
The Department of Justice announced today that it has reached a settlement agreement with BioFusion Health Products Inc., based in Rapid City, South Dakota. The settlement resolves claims that BioFusion violated the Uniformed Services Employment and Reemployment Rights Act (“USERRA”) when it failed to reemploy South Dakota Air National Staff Sgt. Amber Ishmael following an extended military leave and when it eventually terminated her employment. At the time of her termination, Staff Sgt. Ishmael was a Senior Airman with the Air National Guard, where she has served honorably since 2010.
According to the complaint that the department filed in the United States District Court for the District of South Dakota, Staff Sgt. Ishmael’s military service was a motivating factor in BioFusion’s decisions to deny her request for reemployment and to terminate her employment. Staff Sgt. Ishmael was terminated following her deployment to attend Airmen Leadership School, a professional military education training associated with her military service. Under the terms of the settlement agreement, BioFusion has agreed to pay $3,000 in back pay to Staff Sgt. Ishmael. USERRA safeguards the rights of uniformed servicemembers to return to their civilian employment following absences due to military service obligations and protects servicemembers from discrimination on the basis of their military obligations.
“The United States has a solemn obligation to ensure that those selfless Americans who serve in the nation’s Armed Forces enjoy every opportunity to advance their civilian careers,” said Acting Associate Attorney General Jesse Panuccio. “The Department of Justice will be unwavering in protecting the rights of our nation’s service members and we will continue to hold accountable employers who violate those rights.”
“As a member of the Air National Guard, Staff Sgt. Ishmael was called upon to leave her civilian employment and serve our nation,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “Our role at the Department of Justice is to protect the rights of the men and women who defend our freedom and safeguard our way of life, and this settlement demonstrates our robust and continuing commitment to those efforts.”
“Members of our Air National Guard must frequently sacrifice time away from their families and civilian jobs in service to our country,” said U.S. Attorney Randolph J. Seiler of the District of South Dakota. “When military obligations require servicemembers to be absent from their jobs, their employment rights must be protected. The Civil Rights Section at the U.S. Attorney’s Office in South Dakota is committed to protecting those rights. This settlement agreement demonstrates that when employers disregard their obligations under USERRA, our office will hold them accountable for their violations.”
This case stems from a referral by the U.S. Department of Labor (“DOL”) following an investigation by the DOL’s Veterans’ Employment and Training Service (“VETS”). After resolution failed, VETS referred the complaint to the Justice Department’s Civil Rights Division. This lawsuit was handled by Assistant U.S. Attorney Alison Ramsdell of the U.S. Attorney’s Office in the District of South Dakota, with the assistance of the Civil Rights Division, both of whom work collaboratively with DOL to protect the jobs and benefits of servicemembers.
The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at https://www.justice.gov/crt/employment-litigation-section and https://www.justice.gov/crt-military, as well as on the Department of Labor’s website at www.dol.gov/vets/programs/userra/main.htm.
Investigations by IRS Lead to Cases Against Tax Return PreparersRead the Press Release
PITTSBURGH - The United States Attorney’s Office for the Western District of Pennsylvania and Internal Revenue Service-Criminal Investigations announced today recent actions to deter violations of the federal income tax laws. As the April 18th deadline approaches for the timely filing of income tax returns, citizens are reminded to fulfill their obligations and to rest assured those who chose not to do so will be prosecuted.
Acting U.S. Attorney Soo C. Song stated, “Most people voluntarily pay their fair share of taxes in a timely manner. Criminal penalties are reserved for the most flagrant and egregious violators. Those who consider committing tax fraud should recognize that their actions negatively impact all of us and personally expose them to stringent monetary penalties and potential prison time.”
“Tax fraud exists in many forms, from unscrupulous tax preparers filing false and fraudulent returns, to identity thieves, to those who devise complex schemes to hide their income and evade paying the taxes they owe,” said Acting Special Agent in Charge Greg Floyd. “IRS-Criminal Investigation pursues tax cheats year round. As the filing deadline quickly approaches, those who are contemplating engaging in tax fraud should know that they will be pursued.”
The offices continue to uncover the fraudulent refund schemes that occur in Western Pennsylvania and to bring those who perpetrate them to justice. Some of the recent cases being prosecuted by the district follow.
Man Admits Guilt in Stolen Identity Refund Fraud Scheme Using Hacked UPMC Employee Information
A foreign national residing outside of the United States pleaded guilty in federal court to charges of money laundering and aggravated identity theft.
Yoandy Perez Llanes, 33, pleaded guilty to two counts before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that early in 2014, tens of thousands of present and former employees of UPMC had their personal information compromised by hackers, who intruded into a UPMC computerized database and stole names, Social Security numbers, dates of birth and other personal identifying information. This data was then used to file over 900 false 2013 federal tax returns, which contained requests for tax refunds onto Amazon.com gift cards. Llanes and other conspirators laundered the Amazon.com gift cards to purchase electronic merchandise, which was shipped through reshipping services to Venezuela, and retrieved by Llanes and others. While the perpetrators claimed approximately $2.2 million in unlawful refunds, $1,475,000 million was actually disbursed in unlawful refunds.
Judge Hornak scheduled sentencing for August 18, 2017 at 9:30 a.m. The law provides for a total sentence of not more than 22 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation, the United States Secret Service and the United States Postal Inspection Service conducted the investigation that led to the prosecution of Yoandy Perez Llanes.
New York State Man Sentenced for Role in Stolen Identity Refund Fraud Scheme
A resident of Rosedale, New York has been sentenced in federal court to 36 months in jail on his conviction of conspiracy to commit wire fraud.
United States District Judge David S. Cercone imposed the sentence on Adetunji Gbadegeshi, 60, of Rosedale, New York.
According to information presented to the court, Gbadegeshi used the hundreds of stolen identities found in his house to open bank accounts that were used as repositories for fraudulently obtained federal tax refunds. Gbadegeshi would then remove the money from the accounts and distribute it to his co-conspirators.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
Monument Company Worker Embezzled $12.9 Million from Employer
An Allegheny County resident pleaded guilty in federal court to charges of mail fraud, wire fraud, tax evasion, and money laundering.
Cynthia A. Mills, 56, of McKees Rocks, Pa., pleaded guilty to six counts (one count of mail fraud, three counts of wire fraud, one count of tax evasion, and one count of engaging in monetary transactions in criminally derived property) before United States District Judge Nora Barry Fischer. In connection with the guilty plea, the court was advised that from February 1999 to May 2015, Mills embezzled $12,969,774.42 from Matthews International Corporation where she was employed as a Cashier and Treasury Specialist.
Judge Fischer scheduled sentencing for July 28, 2017, at 9:30 a.m. The law provides for a total sentence of 95 years in prison, a fine of $1,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
$6 million DOD Fraud, $1 million paid in illegal gratuities, 5 charged with tax violations
Five Informations have been filed in federal court in Pittsburgh charging three local residents and two residents of the greater Detroit area with crimes of major 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.
Physician Charged with Willfully Failing to File Income Tax Returns
A medical doctor has been charged by Information in federal court in Pittsburgh with three counts of willfully failing to file income tax returns.
According to the Information filed yesterday, Rodney J. Williams of Washington County failed to file tax returns from 2009 to 2011. During those three years he had gross income of $790,385.
The law provides for a maximum total sentence of not more than three years in prison, a fine of $300,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
Five Indicted Separately in Fraudulent Tax Return Scheme
Five residents of Western Pennsylvania have been separately indicted by a federal grand jury in Pittsburgh on charges of bank fraud, bank and mail fraud conspiracy and conspiracy to defraud the United States.
A two-count indictment returned by the federal grand jury, charging bank and mail fraud conspiracy and conspiracy to defraud the United States named Sean Brooks, 27, currently incarcerated. Three two-count indictments returned by the federal grand jury, charging mail fraud conspiracy and conspiracy to defraud the United States named Amber Eubanks, 27, of Pittsburgh, Brandon Prater 29, currently incarcerated, and Simone Prater, 29, of Pittsburgh, as sole defendants in each indictment. A one-count indictment charging bank fraud named Tyrone Gossett, 63, of Pittsburgh as the sole defendant.
According to the indictments, Sean Brooks, who was, at all material times, incarcerated, prepared and arranged for the filing of more than one hundred fraudulent tax returns on behalf of fellow inmates and other individuals and generated more than $200,000 in fraudulent refunds. The fraudulent refunds were sent to a number of different addresses, and, after forging the endorsement of the payees, the checks were cashed through federally insured financial institutions and through check-cashing establishments. Amber Eubanks, Brandon Prater, Simone Prater, and Tyrone Gossett assisted the conspiracy in a variety of ways, including sending the Internal Revenue Service the fraudulent tax returns, receiving forging, depositing and cashing the fraudulently obtained refund checks, disbursing the proceeds of the fraud amongst the conspirators, and proving personal identification information to Brooks for use in the fraudulent tax returns.
The law provides for a maximum total sentence of 35 years in prison, a fine of $1,250,000 or both for the charges pending against Sean Brooks. The law provides for a maximum total sentence of 25 years in prison, a fine of $500,000 or both for the charges pending against Amber Eubanks, Brandon Prater and Simone Prater. The law provides for a maximum total sentence of 30 years in prison, a fine of $1,000,000 or both for the charge pending against Tyrone Gossett. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
Most tax return preparers provide professional tax service. However, a few set out to use the personal and financial information provided to them to perpetrate fraud or other scams that can hurt their customers. Earlier this year, the IRS warned taxpayers that they are legally responsible for what is on the tax return even if someone else prepared the tax return. Taxpayers should be vigilant and ensure that their chosen return preparer reports accurate information. The IRS also warned the public about various schemes deployed by dishonest return preparers in its Dirty Dozen Tax Scams https://www.irs.gov/uac/newsroom/irs-summarizes-dirty-dozen-list-of-tax-scams-for-2017.
Former Summersville Bank Officer Pleads Guilty to Fraud, ID Theft SchemeRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a former Summersville, Mo., bank officer pleaded guilty in federal court today to a fraud scheme in which he took out loans for himself by stealing the identity information of bank customers.
Keith Ray Smith, 44, of Summersville, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with one count of making false statements on a loan application and one count of aggravated identity theft.
Smith was employed as the bank loan officer and compliance officer at Community Bank in Summersville. Smith admitted that he took out numerous loans in the names of several bank customers without their authorization. Smith submitted loan applications for varying amounts, totaling $81,040, between 2015 and June 2016. Smith admitted that he used the personal identification information of bank customers, including their bank account information and social security numbers, to falsely submit the loan applications.
Smith approved the loan applications for funding, then transferred the monies to his personal bank account and spent the monies to either gamble or pay for personal expenses.
In addition, Smith admitted that he had used his mother’s and brother’s personal information to apply for approximately $70,000 in loans without their knowledge or approval in 2010 and 2011. Smith approved the loans and deposited the proceeds from the fake bank loans into his personal bank account to pay for his gambling addiction. Smith agreed to repay all the money owed in 2012, and his mother and brother agreed to resubmit new loan documents that would take the place of the original false loan documents. Smith’s mother and brother told agents they allowed the new loan applications to be created because they did not want him to get into trouble.
Under the terms of today’s plea agreement, a joint recommendation will be made to the court for a sentence of two years and one day in federal prison without parole. Smith must forfeit to the government $151,040, which represents the proceeds of his criminal conduct. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FDIC – Office of Inspector General, the Federal Housing Finance Agency-Office of the Inspector General and the FBI.
FCI-Berlin Inmate Sentenced to 30 Months for AssaultRead the Press Release
CONCORD, N.H. – Acting U.S. Attorney John J. Farley announced today that Ruben Garcia, 32, an inmate at FCI-Berlin was sentenced to 30 months in federal prison after pleading guilty to assaulting another inmate with a homemade weapon. Garcia’s sentence will be consecutive to the current 151 month sentence he is serving for conspiracy to possess with the intent to distribute cocaine and marijuana.
Documents filed with the court and statements made at the today’s hearing established that on September 8, 2016, prison staff members observed Garcia assaulting another inmate by striking him repeatedly with a weapon made out of a lock in an athletic sock. The attack was captured by the prison’s video security system. Garcia pleaded guilty to the assault charge on December 23, 2016.
The case was investigated by the Bureau of Prisons staff at FCI-Berlin. It was prosecuted by Assistant United States Attorney Don Feith.
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Dothan Woman Sentenced for Medicaid FraudRead the Press Release
Montgomery Alabama – Catrina R. Copeland, 43, of Dothan, Alabama, was sentenced to five months in prison and five months of home confinement on Wednesday, April 12, 2017 for defrauding the Alabama Medicaid Agency and the federal government, announced Acting U.S. Attorney A. Clark Morris, Alabama Attorney General Steven T. Marshall, and Health and Human Services Office of Inspector General Special Agent in Charge Derrick L. Jackson.
Copeland was the owner of The Counseling Place, a Dothan company that contracted with the Alabama Medicaid Agency to provide counseling services to at risk youth. Records indicate that the Counseling Place received most of its business through referrals from schools and juvenile courts. Copeland also worked for the business as a counselor. An investigation by the Alabama Attorney General’s Medicaid Fraud Control Unit found that Copeland was billing the Alabama Medicaid Agency for counseling services that were never actually provided.
“When you defraud Medicaid, you are stealing from every taxpayer,” stated Acting U.S. Attorney Morris. “The U.S. Attorney’s Office is dedicated to working with our law enforcement partners to identify this type of criminal activity and bring the wrongdoers to justice.”
“Medicaid fraud not only targets taxpayers, but also victimizes the most vulnerable of our state who rely on Medicaid services for their well-being,” said Attorney General Steven T. Marshall. “I applaud the partnership of the Alabama Medicaid Agency, the Medicaid Fraud Control Unit of the Attorney General’s Office and the U.S. Attorney’s Office for working as a team to secure a conviction in this case. Medicaid fraud will not be tolerated and those who commit such crimes will be held to account.”
"This investigation is an excellent example of collaboration between the state and federal law enforcement community working together to serve the American taxpayer,” said Derrick L. Jackson, Special Agent in Charge of the Office of Inspector General of the U.S. Department of Health and Human Services. “The Office of Inspector General will continue to work aggressively to eliminate this type of greed in our health care system.”
The Program Integrity Division of the Alabama Medicaid agency referred this case to the Alabama Attorney General’s Medicaid Fraud Control Unit (MFCU) for investigation. MFCU and the U.S. Department of Health and Human Services Office of Inspector General investigated this case, with Assistant U.S. Attorney Jonathan S. Ross and Assistant Attorney General Bruce Lieberman prosecuting.
Detroit woman pleads guilty to federal heroin chargeRead the Press Release
HUNTINGTON, W.Va. – A Detroit woman who was caught in Huntington with heroin in December 2016 pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Ebony Inez-Latee Johnson, 43, entered her guilty plea to possession with intent to distribute heroin.
On December 4, 2016, an officer with the Huntington Police Department conducted a traffic stop of a vehicle Johnson was driving at the intersection of 9th Avenue and 10th Street in Huntington. During the stop, the officer located a bag containing approximately 23 grams of heroin that was concealed in Johnson’s jacket pocket. The heroin was packaged in 43 individually wrapped bags, and Johnson admitted at her plea hearing that the heroin was intended for distribution.
Johnson further admitted at the hearing that, on April 14, 2016, a trooper with the Michigan State Police conducted a traffic stop of a vehicle operated by Johnson in Taylor, Michigan. The trooper seized approximately 124 grams of heroin and 135 thirty mg oxycodone tablets from the vehicle.
Johnson faces up to 20 years in federal prison when she is sentenced on July 31, 2017.
The Huntington FBI Drug Task Force and the Huntington Police Department conducted the investigation, with assistance from the Michigan State Police. Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Detroit man pleads guilty to federal heroin crimeRead the Press Release
HUNTINGTON, W.Va. – A Detroit man who was among a group arrested for distributing heroin in Huntington in 2015 pleaded guilty today to a federal drug charge, announced United States Attorney Carol Casto. Damond Idress Robinson-King, 23, entered his guilty plea to possession with intent to distribute 100 grams or more of heroin.
On October 5, 2015, members of the Huntington FBI Drug Task Force conducted a search at 1826 Old 16th Street Road in Huntington after an investigation revealed multiple individuals from Detroit were using the residence to store and distribute heroin. During the search, agents located Robinson-King and two other individuals inside the residence. Agents also seized approximately 306 grams of heroin and $51,479 in United States currency. Robinson-King admitted at his plea hearing that he and the other individuals intended to sell the heroin.
Robinson-King faces at least five and up to 40 years in federal prison when he is sentenced on July 31, 2017.
The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
This prosecution is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Defendant Pleads Guilty to Making a False Statement on Tax ReturnRead the Press Release
Gregory J. Haanstad, the United States Attorney for the Eastern District of Wisconsin, announced that on Friday, April 14, 2017, Gerald W. Neigelsen (age: 73) of East Troy, Wiscosnin pleaded guilty to a one-count information charging him with making a false statement on Internal Revenue Service Form 1040. As part of the plea agreement, Niegelsen agreed to pay restitution of $457,269 in back taxes to the Internal Revenue Service (IRS). He faces up to three years’ imprisonment, a $100,000 fine, one year of supervised release, and a $100 special assessment. Niegelsen’s sentencing is scheduled for July 6, 2017.
The IRS investigation revealed that Niegelsen willfully filed false Individual Income Tax Returns in 2009, 2010, 2011, and 2012. Niegelsen was the owner-operator of a business offering pier installation, removal and storage services as well as snow removal for clients in Wisconsin and Illinois. Niegelsen concealed significant unreported gross receipts in connection with the operation of the business. From 2009 through 2012, Niegelsen conducted numerous transactions in which he cashed over 3,000 checks. The checks included $1,990,931 of unreported business receipts written to “G.W. Niegelsen” that were converted into cash instead of being deposited into the business account.
This case was investigated by IRS Criminal Investigation. The case is prosecuted by Assistant United States Attorney Bridget J. Domaszek.
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