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Tuesday 28 February 2017
Middletown Man Sentenced to 6 Years in Federal Prison for Bank Robbery Spree in 2015Read the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that MATTHEW DRAGONE, 32, of Middletown, was sentenced yesterday by U.S. District Judge Janet Bond Arterton in New Haven to 72 months of imprisonment, followed by three years of supervised release, for robbing six banks, and attempting to rob a seventh bank, in 2015.
According to court documents and statements made in court, DRAGONE robbed the Webster Bank at 145 Highland Avenue in Cheshire on August 12, 2015; the TD Bank at 1127 Farmington Avenue in Berlin on August 13, 2015; the Liberty Bank at 151 Main Street in Deep River on August 17, 2015; the TD Bank at 25 Wells Road in Wethersfield on August 31, 2015; the Webster Bank at 377 Cromwell Avenue in Rocky Hill on September 9, 2015 (attempt); the Liberty Bank at 357 Main Street in Durham on September 3, 2015, and the TD Bank at 184 Clinton Road in Killingworth on September 11, 2015. During each of the robberies, DRAGONE, wearing a baseball cap and dark sunglasses and holding a cellphone to his ear, presented a teller with a bank-style bag affixed with a note that demanded money.
On September 16, 2015, a search of DRAGONE’s residence revealed clothing and sunglasses consistent with those worn during the Durham robbery on September 3, as well as a bank-style bag consistent with the one used during several of the bank robberies.
DRAGONE was arrested on September 18, 2015. On February 16, 2016, he pleaded guilty to one count of bank robbery.
This investigation was conducted by the Federal Bureau of Investigation, the Connecticut State Police and the Middletown, Cheshire, Berlin, Wethersfield, and Rocky Hill Police Departments, with the assistance of the Connecticut Department of Emergency Services and Public Protection, Division of Scientific Services. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Middlesex County, New Jersey, Man Admits to Distribution and Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man today admitted distributing and possessing images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
John Fricovsky, 57, of Edison, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with one count of distribution of child pornography and one count of possession of child pornography.
According to documents filed in the case and statements made in court:
Fricovsky admitted that in February 2015 he sent an email attaching an image of child sexual abuse involving a child under the age of 12. He also admitted to, in December 2015, possessing computer devices containing at least 10, but fewer than 150, images of child sexual abuse.
The possession of child pornography charge to which Fricovsky pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Fricovsky will be required to register as a sex offender. Sentencing is currently scheduled for June 7, 2017.
U.S. Attorney Fishman credited Special Agents with Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office Criminal Division in Newark.
Methamphetamine Dealer Sentenced to 24 Years in PrisonRead the Press Release
Brian Randall, 51, of Castalian Springs, Tennessee, was sentenced yesterday by U.S. District Judge Waverly Crenshaw, Jr., to 24 years in prison, followed by five years of supervised release, for operating a large-scale methamphetamine conspiracy, announced United States Attorney David Rivera.
Randall and seven other Middle Tennessee individuals were indicted in July 2016 and charged with various offenses relating to the meth distribution conspiracy. In addition, two other individuals from Bakersfield, California were indicted in the conspiracy in August 2016.
Evidence presented during Randall’s guilty plea and sentencing hearings established that between February 2015 and July 2016, he received numerous kilograms of methamphetamine from California through FedEx shipments and the U.S. Postal Service. Randall then mailed cash payments back to California and sold the methamphetamine to mid-level and street-level dealers for resell. Randall also possessed a number of firearms as he sold and stored methamphetamine.
Judge Crenshaw ordered Randall to serve 19 years in prison for the drug trafficking offenses and an additional 5 years for firearm offense. In addition, Randall must forfeit the firearms and any other property directly or indirectly related to his crimes in an amount of up to $2,000,000.
The remaining defendants in this case are awaiting trial and are presumed innocent unless and until proven guilty in a court of law.
This case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, and the Lebanon Police Department. The case is being prosecuted by Assistant U.S. Attorney Ahmed A. Safeeullah.
Manchester Woman Sentenced for Heroin and Fentanyl Distribution ConspiracyRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced that Jeannette Hardy, 26, of Manchester, New Hampshire, was sentenced to ten years in federal prison based upon her conviction for conspiracy to distribute heroin and fentanyl.
According to court documents, the defendant distributed drugs in the Manchester, New Hampshire area since at least July of 2014. Pursuant to a search warrant, law enforcement recovered approximately 1.8 kilograms of fentanyl and $198,000 in drug proceeds from an apartment occupied by the defendant and another individual. In addition, law enforcement seized approximately $560,000 in drug proceeds from a safe deposit box. The defendant was not employed at the time of the conspiracy and the currency recovered by law enforcement constituted proceeds of the defendant’s drug distribution conspiracy.
Hardy, who previously had pleaded guilty, also must serve a five-year term of supervised release, following her release from prison.
All of the drug proceeds previously were forfeited to the United States.
“The state of New Hampshire is faced with a fentanyl and heroin crisis unlike ever before,” said Special Agent in Charge Michael J. Ferguson. “Those suffering from a fentanyl and heroin substance use disorder need treatment and recovery, but those that distribute and profit from spreading this misery need to be held accountable. This investigation demonstrates the strength of collaborative law enforcement in New Hampshire and our strong partnership with the U.S. Attorney’s Office to aggressively seek and bring to justice anyone who distributes these drugs.”
United States Attorney Rice said, “This prosecution is an example of the ongoing efforts of this office to prosecute those who are distributing fentanyl in New Hampshire. We will continue to work closely with our law enforcement partners to identity and prosecute distributors of fentanyl and to seize the proceeds from their unlawful and deadly drug distribution businesses.”
According to statistics maintained by the State of New Hampshire, over half of the drug overdose deaths in New Hampshire in 2015 and 2016 were related to fentanyl. Because a single gram of heroin or fentanyl can be used to create multiple individual dosage units that can be sold “on the street,” the quantity of fentanyl involved in this case could have generated large numbers of individual doses of fentanyl, each of which had the potential to cause a fatal overdose.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The case was investigated by the Manchester Police Department, the Massachusetts State Police, and the Drug Enforcement Administration and was prosecuted by Assistant United States Attorneys Georgiana L. Konesky and Donald Feith.
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Man Sentenced for Operating Credit Card Forgery LabRead the Press Release
NEWPORT NEWS, Va. – Eric Charles Murray, 32, of Hampton, was sentenced today to 88 months in prison for his role in establishing and operating a high-tech credit card forgery lab in his home in 2016. Murray was also sentenced to five years of supervised release, which includes computer monitoring software on any computers Murray may have.
Murray pleaded guilty to conspiracy to commit bank, mail, and wire fraud; aggravated identity theft; and possessing a firearm as a convicted felon, on Nov. 15, 2016. According to court documents, Murray established a credit card forgery lab in his home in April 2016. Over a two-month period, he used Bitcoin currency to purchase stolen credit card information on the dark web, targeting information that belonged to Virginia residents. He and his conspirators then used the credit card forgery lab to place the stolen information on counterfeited credit and debit cards, which they had re-embossed in their own names and the names of others. Murray and his conspirators used these counterfeit cards to conduct unauthorized purchases of high-end electronics and cigarettes, which they then resold for cash in Hampton Roads and New York state. Murray was identified after two cardholders reported unauthorized uses of their cards to the Newport News Police Department. Surveillance images showed Murray purchasing items with counterfeit cards at multiple retail stores in Newport News. A May 2016 search of Murray’s home in Hampton recovered several items used to manufacture credit cards, 115 counterfeit credit cards, 233 stolen credit card numbers stored on a laptop, and two handguns—one of which had been previously reported stolen. At the time these items were recovered, Murray had been convicted of felony offenses, including a crime of violence, and his rights to possess a firearm had not been restored. After his arrest, Murray repeatedly attempted to obstruct the investigation and prosecution of his offenses by pressuring another individual to claim ownership and possession of the firearms found in his residence.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Joseph W. Cronin, Acting Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; Richard W. Myers, Chief of Newport News Police; and Terry L. Sult, Chief of Hampton Police Division, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney Kaitlin C. Gratton and Special Assistant Attorney Amy E. Cross prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-cr-64.
MS-13 Member Pleads Guilty to Assaulting 18th Street Gang MembersRead the Press Release
BOSTON – A Chelsea man pleaded guilty today in U.S. District Court in Boston in connection with assaulting members of a rival gang.
Kevin Ayala, a/k/a “Gallito,” 23, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as a RICO conspiracy. Judge F. Dennis Saylor IV scheduled sentencing for May 25, 2017.
After a three-year, multi-agency investigation, Ayala was one of 61 individuals charged in a superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13 in Massachusetts. In documents previously filed with the Court, MS-13 was identified as a violent transnational criminal organization whose branches or “cliques” operate throughout the United States, including Massachusetts, as well as in Central America. MS-13 members are required to commit acts of violence to maintain membership and discipline within the group, such as attacking and murdering gang rivals and individuals believed to be cooperating with law enforcement.
Ayala was identified as a member of MS-13’s Enfermos Criminales Salvatrucha clique operating in Chelsea, Mass. Ayala admitted that in April 2014, he engaged in an aggravated assault upon two members of the rival 18th Street gang in Chelsea.
The charging statute provides a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police made the announcement. Assistance was provided by Thomas Turco, Commissioner of the Massachusetts Department of Corrections; Essex County Sheriff and Lynn Police Chief Kevin F. Coppinger; Suffolk County Sheriff Steven W. Tompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Revere Police Chief Joseph Cafarelli; and Somerville Police Chief David Fallon.
The details contained in the indictments are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Louisville Man Charged in the Shooting of A United States Postal CarrierRead the Press Release
Charged with attempted murder of a federal employee
LOUISVILLE, Ky. – A Louisville man appeared before United States Magistrate Judge Dave Whalin today, charged by Grand Jury Indictment with attempted murder of a federal employee, that is a United States Postal Carrier (while engaged in the performance of his official duties), and with forcible assault of a federal employee, and discharge of a firearm during a crime of violence, announced United States Attorney John E. Kuhn, Jr.
Eric Bennett, 38, was arrested Monday, February 27, 2017, charged by a Grand Jury Indictment, that was unsealed today during his initial appearance in federal court. The charges are in connection with the shooting of United States Postal Carrier Da’Ron Lester on February 10, 2016.
Bennett remains in federal custody. A detention hearing is scheduled for tomorrow at 2:00 in Louisville, before Magistrate Judge Colin H. Lindsay. If convicted of the charges, Bennett faces a sentence of no more than 20 years in prison for attempted murder of a federal employee; no more than 20 years for forcible assault of a federal employee and 10 years in prison for the charge of discharging of a firearm during a crime of violence. Further, Bennett could be sentenced to a five-year term of supervised release and a fine of $750,000.
This case is being prosecuted by Assistant United States Attorneys Scott Davis and Marisa Ford, and the United States Postal Inspection Service (USPIS) is conducting the investigation.
The charge of a person by Grand Jury Indictment is an accusation only and that person is presumed innocent until and unless proven guilty.
London Man Indicted on Kidnapping Charge, Accused of Abducting Man in Georgetown Last MonthRead the Press Release
WASHINGTON – Paolo Aldorasi, 34, of London, was indicted today on a federal kidnapping charge stemming from the recent abduction of a man in the Georgetown area of Washington, D.C., announced U.S. Attorney Channing D. Phillips, Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Acting Chief of the Metropolitan Police Department.
Aldorasi was arrested by the FBI’s Seattle Field Office on Feb. 24, 2017, in SeaTac, Washington, on a criminal complaint filed in the U.S. District Court for the District of Columbia. He made his first appearance on Feb. 27, 2017, in the U.S. District Court for the Western District of Washington. He was ordered detained there pending a hearing set for March 2, 2017.
The indictment today was returned by a grand jury in the U.S. District Court for the District of Columbia. The charge of kidnapping carries a statutory maximum of life in prison.
According to the complaint, the victim reported that he was abducted on the afternoon of Jan. 26, 2017, from the 3400 block of O Street NW. Aldorasi, who was operating a sport utility vehicle, pulled alongside the victim as he was walking on the street, the complaint alleges. According to the complaint, Aldorasi ordered the victim to get into the vehicle and demanded money. He allegedly took the victim to four ATMs in the District of Columbia, in unsuccessful attempts to withdraw money, as well as to two retail establishments. After about two hours, the complaint states, Aldorasi eventually released the victim, unharmed, in the District of Columbia.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the indictment, U.S. Attorney Phillips, Assistant Director in Charge Vale, and Acting Chief Newsham commended the work of those who are investigating the case from the FBI’s Washington Field Office and the Metropolitan Police Department. They expressed appreciation for the assistance provided by the FBI’s Seattle Field Office and the U.S. Attorney’s Office for the Western District of Washington. Finally, they acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialist Teesha Tobias, and Assistant U.S. Attorneys Emory V. Cole and Kamilah House, who are prosecuting the case.
Lebanon Man Sentenced for Illegal Firearms Following Standoff with OfficersRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Lebanon, Mo., man has been sentenced for being a felon in possession of firearms following a nine-hour-long standoff with law enforcement officers while he was in the attic space of a friend’s residence.
Jesse D. Ivey, 40, of Lebanon, was sentenced by U.S. District Judge Beth Phillips on Monday, Feb. 27, 2017, to eight years in federal prison without parole.
On June 27, 2016, Ivey pleaded guilty to being a felon in possession of firearms. Ivey admitted he was in possession of a Charter Arms .38-caliber revolver, a high Standard .2-caliber pistol, a Ruger .357-caliber revolver and a Savage .30-06 rifle.
Ivey was involved in a high-speed pursuit by law enforcement officers on Jan. 5, 2016. When officers observed Ivey driving at speeds far in excess of the speed limit and attempted a traffic stop, he refused to yield and led officers on a high-speed pursuit. The pursuit ended with Ivey’s vehicle, a Jeep Wrangler, crashing into a wooded area in Laclede County, Mo. Ivey fled the scene of the crash before troopers arrived. During a search of the vehicle, troopers found the four loaded firearms, one of which had been reported stolen, and some tools that had been reported stolen.
Ivey was arrested on Feb. 10, 2016, after an approximately nine-hour-long standoff with law enforcement officers. Officers entered a residence in Lebanon while searching for Ivey and found a loaded Bushmaster AR-15 .223-caliber rifle lying on the floor of the second-floor master bedroom. (Ivey later admitted that he purchased the rifle to sell to a drug dealer in Kansas City.) They heard Ivey in the attic space above the bedroom and directed him to come out of the attic space, but he refused to surrender.
Due to the limited access to the attic and being unaware of whether Ivey was armed, officers withdrew from the residence and called the Missouri State Highway Patrol SWAT Team to assist. A nine-hour standoff proceeded before Ivey finally exited the attic and surrendered.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Ivey has two prior felony convictions for assault, arising from an incident in which he discharged a firearm at two individuals in 2013. In that case, law enforcement officers attempted to arrest Ivey but he fled his residence, stealing a neighbor’s truck, leading officers on a high speed chase that nearly resulted in a head-on collision with another vehicle. Ivey committed this federal offense while on probation from that case.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Missouri State Highway Patrol, the Laclede County, Mo., Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Las Cruces Man Sentenced to Prison for Conspiring to Sell 12 Grams of Methamphetamine to Undercover DEA AgentRead the Press Release
ALBUQUERQUE – Michael Angelo Strubhar, 47, of Las Cruces, N.M., was sentenced today in federal court to 41 months in prison followed by three years of supervised release for his conviction on methamphetamine trafficking charges. The sentence was announced by U.S. Attorney Damon P. Martinez and Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division.
Strubhar and his co-defendant Chayanne Armando Nino, 25, also of Las Cruces, were arrested in Jan. 2016, on a criminal complaint charging them with methamphetamine trafficking offenses. According to the criminal complaint, Strubhar and Nino sold methamphetamine to an undercover agent on July 13, 2015.
Strubhar and Nino subsequently were indicted on Feb. 17, 2016, and charged with conspiracy to distribute methamphetamine and distributing methamphetamine on July 13, 2015, in Doña Ana County. N.M.
On June 1, 2016, Strubhar and Nino each pled guilty to felony informations charging them with conspiracy to distribute methamphetamine and distribution of methamphetamine. Each admitted that on July 13, 2015, Nino distributed methamphetamine to Strubhar who then distributed the methamphetamine to a law enforcement agent who was acting in an undercover capacity. The weight of the methamphetamine distributed was 12.2 grams. Nino was sentenced on Feb. 22, 2017, to 120 months in prison followed by three years of supervised release.
This case was investigated by the Las Cruces office of the DEA and was prosecuted by Assistant U.S. Attorney John Balla of the U.S. Attorney’s Las Cruces Branch Office.
Lackawanna County Man Sentenced to 70 Months in Prison for Heroin Trafficking and Supervised Release ViolationRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Shawn Isom, age 45, of Scranton, Pennsylvania, was sentenced to 70 months’ imprisonment on February 27, 2017, by U.S. District Court Judge Robert D. Mariani for trafficking in heroin.
According to United States Attorney Bruce D. Brandler, Isom pleaded guilty to possession with the intent to distribute between 80 and 100 grams of heroin (which is equivalent to approximately 3,000-4,000 retail bags of heroin) in Lackawanna County during September 2015. Isom committed the crime while on supervised release for a previous federal drug conspiracy.
Judge Mariani imposed a 50-month prison sentence for the heroin trafficking offense, and added a 20-month prison sentence for Isom’s supervised release violation. Isom was also ordered to serve six years on supervised release following his prison sentence.
The investigation was conducted by the Drug Enforcement Administration, the Pennsylvania State Police, and the Scranton Police. Assistant United States Attorney Francis P. Sempa prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Kauai Woman Indicted for Using A Non-Profit to Facilitate A Tax Fraud Scheme and Identity TheftRead the Press Release
HONOLULU – Leihinahina "Jennifer" Sullivan, 45, of Lihue, Kauai, was arraigned Friday, February 24, on a 12-count indictment charging her with tax fraud and aggravated identity theft. The indictment charges Sullivan with eight counts of false claims, two counts of wire fraud, and two counts of aggravated identity theft. Sullivan pled not guilty to all charges, and her trial was set for April 25, 2017, before Chief United States District Judge J. Michael Seabright.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to allegations in the indictment, from at least January 2011 through January 2017, the last year of which is the current tax filing season, Sullivan engaged in a scheme to defraud the IRS and the State of Hawaii by submitting false tax returns seeking refunds on behalf of other individuals. The tax returns contained false items such as the filing status, dependents, Schedule A expenses including medical and charitable donations, unreimbursed employment expenses, and claims for credits such as child care and the Earned Income Tax Credit.
The indictment alleges that Sullivan concealed her acts from the taxpayers, by not reviewing the returns with them before filing, and by using her email addresses as a point of contact with the IRS and State. Sullivan also directed that tax refunds be deposited into bank accounts of the Mobile Native Hawaiian Health ("MNHH"), a non-profit entity of which she held various positions including director, or into other accounts which she controlled. In some instances, when individuals requested copies of their filed returns, Sullivan provided those individuals with copies of returns that did not match the returns that she actually filed, including changing the direct deposit information. The copies did not include the false items, the same direct deposit information, or the inflated false refund amounts.
For the aggravated identity theft charges, the indictment alleges that Sullivan used an individual’s name, Social Security number, and signature, without that person’s authorization, to file State of Hawaii tax returns for 2010 and 2011.
The charges in the indictment are merely accusations, and the defendant is presumed innocent until proven guilty. If convicted, Sullivan faces a maximum term of imprisonment of up to 20 years for each wire fraud count, up to five years imprisonment for each false claims count, and a mandatory minimum term of imprisonment of two years for each aggravated identity theft count.
The case was investigated by IRS-Criminal Investigation with assistance from the Kauai Police Department and the State of Hawaii Department of Taxation, and is being prosecuted by Assistant U.S. Attorney Rebecca A. Perlmutter.
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Kansas Man Sentenced for Wire FraudRead the Press Release
United States Attorney Deborah R. Gilg announced that James Allan Kappler, Jr., age 61, of Topeka, Kansas, was sentenced today by the Honorable Laurie Smith Camp after having previously pleaded guilty to one count of wire fraud. He was sentenced to 5 years, 3 months in federal prison to be followed by 3 years of supervised release when his incarceration ends. He was also ordered to pay $911,428.99 in restitution.
From 2007 through 2012, Kappler devised a scheme in which he represented to his mother that he was suffering from methicillin-resistant staphylococcus aureus, also known as MRSA. MRSA is a staph infection than can become terminal and is resistant to many common antibiotics. Kappler told his mother that he was involved in a study sponsored by Pfizer Pharmaceuticals. He told her he needed to pay for all of his medical care and, once his treatment concluded, Pfizer would pay him $5,000,000. He convinced his mother to provide him money to pay for his “medical care.” When Kappler’s mother’s funds were depleted, she sought more money from her sister and friends. In total, Kappler received at least $911,428.99 as part of his scheme. The funds were wired from his mother’s trust account to an account in Topeka.
In praising Judge Smith Camp’s sentence, Ms. Gilg remarked that oftentimes the elderly in our communities are our most vulnerable citizens.
The case was investigated by the United States Secret Service.
Heroin Trafficker SentencedRead the Press Release
AMARILLO, Texas — Joel Lara Merida, 31, arrested in August 2016 after a traffic stop in Potter County, Texas, and then found to have 17,388 grams of heroin in bundles in an aftermarket compartment, has been sentenced, announced U.S. Attorney John Parker of the Northern District of Texas.
On Monday, February 27, 2017, Merida was sentenced by U.S. District Judge Sidney A. Fitzwater to 51 months in federal prison. Merida pleaded guilty to one count of possession with intent to distribute one kilogram or more of heroin and aiding and abetting in November 2016. Co-defendant Jose Emmanuel Morales Rittingger, 29, is set to plea in March 2017.
According to documents filed in the case, on August 15, 2016, a Texas Department of Public Safety (DPS) Trooper stopped a 1995 BMW for driving in the left lane when not passing and obstructed view through the windshield. Upon making contact with the driver of the vehicle, who was later identified as Merida, and the passenger, who was later identified as Rittingger, the Trooper noticed indicators of possible criminal activity. The Trooper asked Merida for consent to search the vehicle and Merida voluntarily consented to the search. Eighteen bundles in an aftermarket compartment under the back seat were located. There were nine bundles wrapped in black tape, four bundles were wrapped in cellophane, and five bundles were wrapped in silver tape. The heroin had a gross weight of 44.26 pounds and field tested positive for the presence of heroin.
Subsequent testing confirmed that the substance seized was, in fact, heroin, a Schedule I controlled substance, with a net weight of approximately 17,388 grams.
The case was investigated by the Texas Department of Public Safety and the Drug Enforcement Administration. Assistant U.S. Attorneys Joshua Frausto and Sean Taylor prosecuted.
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Hartford Man Sentenced to 6 Years in Federal Prison for Distributing Narcotics, Selling GunRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that VINCENTE RIVERA, also known as “Macho,” 37, of Hartford, was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to 72 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine and selling a firearm.
According to court documents and statements made in court, in September 2014, the FBI’s Northern Connecticut Violent Crimes Task Force and Hartford Police Department initiated an investigation into narcotics distribution, firearms trafficking and acts of violence carried out by members and associates Los Solidos in Hartford’s South End. The investigation, which included the use of court-authorized wiretaps and controlled purchases of heroin, crack cocaine and firearms, resulted in federal charges against approximately 30 individuals.
The investigation revealed that RIVERA was involved in the distribution of crack and powder cocaine. In February and March 2015, investigators intercepted numerous drug-related conversations over RIVERA’s telephone. In addition, in April 2015, RIVERA sold a .25 caliber pistol to a government informant.
RIVERA has been detained since his arrest on June 15, 2015. On August 12, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine base (“crack”).
The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics unit, Major Crimes unit, Shooting Task Force and South Conditions Unit have provided valuable assistance to the investigation, and the U.S. Marshals Service and Capitol Region Emergency Response Team (CREST) assisted with the arrests.
This case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution stems from Project Longevity, a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence. A critical component of the Project Longevity strategy is the “call-in,” a face-to-face meeting where Project Longevity partners engage group members and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
Members of Los Solidos attended call-ins that were held in April 2014 and August 2014.
Guinean National Charged with Possessing Fake PassportRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Abdoulaye Barry, 25, a legal, permanent resident from Guinea, was arrested and charged by criminal complaint with possessing a fraudulent passport and aggravated identity theft. The charges carry a minimum mandatory penalty of two years in prison, a maximum of 10 years, and a $250,000 fine.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that according to the complaint, on February 26, 2017, the defendant was found at the Rainbow Bridge with a fraudulent United States Passport card. That card, which contained the defendant’s photograph, bore the name and passport card number of another individual. Barry also had a fraudulent Ohio driver’s license bearing her photograph but the name of another individual, as well as a Florida Driver’s license bearing the name and photograph of another person. Barry was also in possession of a debit and credit card matching the name on the fraudulent Ohio driver’s license.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and is being detained pending a detention hearing on March 7, 2017, at 11:00 a.m.
The criminal complaint is the result of an investigation by the United States Department of State, under the direction of Resident Agent-in-Charge William Ferrari, Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy, and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Galax Man Sentenced for Producing Child Pornography VideosRead the Press Release
Abingdon, VIRGINIA – A Galax man, who gained the trust of single mothers to sexually abuse their young children, was sentenced today in the United States District Court for the Western District of Virginia in Abingdon, Acting United States Attorney Rick A. Mountcastle announced.
Richard Denny Nofsinger, 37, most recently of Galax, previously pled guilty to three counts of producing images of child pornography. Today in United States District Court, Judge James P. Jones sentenced Nofsinger to 60 years in federal prison.
“This defendant is a serial predator, repeatedly targeting the most vulnerable in our community – single mothers and their young children. On repeated occasions he gained the trust of single mothers to gain access to their toddlers so he could film himself engaging in sexual acts with those children. The court’s sentence takes a dangerous, serial predator out of our community and probably saved other single mothers and their children from future despicable acts by this defendant. I ask parents to be extra cautious about who you trust to care for your children,” Acting U.S. Attorney Mountcastle said today. “I commend the Galax City Police Department, the Secret Service, and AUSA Bockhorst for their outstanding work on this case.”
According to evidence presented at the September 7, 2016 guilty plea hearing, Nofsinger possessed a cell phone when he was arrested on a state arrest warrant on May 17, 2016, in Galax. Investigators, executing a search of the cell phone, recovered eight videos that contained sexually explicit images of children and showed Nofsinger engaged in sexual conduct with at least two different children. Investigators identified the victims and recovered the T-shirt and sunglasses Nofsinger wore in some of the videos.
The investigation of the case was conducted by the City of Galax Police Department and the United States Secret Service. Assistant United States Attorney Jennifer R. Bockhorst prosecuted the case for the United States.
Former Service Member Pleads Guilty to Theft of U.S. Department of Veterans Affairs BenefitsRead the Press Release
A former U.S. Air Force service member pleaded guilty today in connection with a scheme to defraud the U.S. Department of Veterans Affairs (VA), announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division.
Jacqueline Crawford, 33, of Gulfport, Mississippi, pleaded guilty today before U.S. District Judge Amit P. Mehta of the District of Columbia to one count of conversion of government funds. As part of her plea agreement, Crawford has agreed to forfeit $45,917.
According to her plea agreement, in October 2014, Crawford spoke with a friend and former U.S. Air Force service member, who worked at the VA in Washington, D.C., and described her financial difficulties. In response, her friend suggested that he could send her VA hardship money available to veterans and that all he needed was her bank account information. Crawford agreed to this arrangement despite knowing that her friend was not obtaining the hardship money through proper channels. He later asked Crawford to kick back a portion of the money she received to him, which she agreed to do despite knowing that it was wrong. Between October 2014 and February 2015, Crawford received a total of seven unlawful special payments from the VA totaling $45,917. Crawford admitted she kicked back $13,100 of the funds she received from her friend via 16 wire transfers, usually through Walmart2Walmart money grams.
The VA Office of Inspector General Criminal Investigations Division investigated the case. Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section is prosecuting the case.
Former Postal Worker and Union Treasurer Indicted for Embezzling Union FundsRead the Press Release
SAN JUAN, P.R. - On December 28, 2016, a Federal Grand Jury in the District of Puerto Rico returned an indictment charging Amalia López-Santiago, a former treasurer of the American Postal Workers Union (“APWU”) Local 1070 (the “Union”), with embezzlement of funds of said labor organization in an amount in excess of $92,965.89. The Indictment charges López-Santiago with one count of embezzlement of union funds, one count of false statements to the federal government, one count of aggravated identity theft, and four counts of wire fraud.
United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez Vélez, Andriana Vamvakas, the New York District Director of the Department of Labor’s Office of Labor-Management Standards (“DOL-OLMS”), and Douglas A. Leff, Special Agent in Charge of the Federal Bureau of Investigation’s Puerto Rico Field Office (“FBI”) made the announcement.
According to the indictment, from January, 2008 through June 2, 2012, López-Santiago, who was the Union’s Treasurer, authorized salary payments and reimbursement for lost wages and benefits on her own behalf in excess of the amounts actually allowed and authorized under the Union’s Constitution and Bylaws totaling approximately $77,543.30. Pursuant to the charging document, she submitted fraudulent claims for wage reimbursement and authorized duplicate or excessive salary payments.
The indictment also alleges that she used the Union’s credit card at a local wholesale supermarket to purchase personal items valued in excess of $15,422.59 without lawful authority and issued payments from APWU Local 1070’s bank account to cover the expense for those unlawfully procured items. The Indictment further alleges that in order to conceal the misuse and theft of Union funds, López-Santiago made false statements and omissions in the Union’s annual financial reports for the fiscal years 2008, 2009, 2010, and 2011.
“The United States Attorney’s Office, in partnership with our fellow federal investigative agencies, will continue to investigate and prosecute union officials who abuse their positions of trust,” said Rosa E. Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “Let this be a clear message, that stealing and embezzling from labor unions carries serious penalties and consequences, including prison and fines.”
OLMS District Director Andriana Vamvakas said: “Embezzlement of union funds doesn’t only violate the law, it also betrays the trust of the union membership who rightfully expect their officials to protect and safeguard their union’s funds and assets. We thank USA Rodríguez-Vélez and SAC Douglas A. Leff for the valuable assistance they provided to the U.S. Department of Labor in this investigation and for the excellent work completed in the presentation of charges. We look forward to working again with these and other agencies to root out such corruption and abuse by union officers or members.”
“Those who defraud civil organizations created to benefit their fellow workers and betray the values they have sworn to protect will face the strength and reach of the criminal justice system. The FBI is proud to have assisted in this investigation and recognizes the outstanding work of the Department of Labor, and the diligence of the United States Attorney, in identifying and rooting out this type of deceitful conduct,” said Douglas A. Leff, SAC FBI San Juan.
This case was investigated by the DOL-OLMS and the FBI, and is being prosecuted by Assistant U.S. Attorney Dennise N. Longo Quiñones of the Financial Fraud and Corruption Unit.
Pursuant to the charges, Amalia López-Santiago faces potential penalties of up to five years of imprisonment for the embezzlement or theft of union assets, up to five years of imprisonment for false statements made to the federal government, a mandatory minimum term of two years of imprisonment for aggravated identity theft, and up to a term of imprisonment of 20 years for wire fraud. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
Former Pharmaceutical Employee Admits Role in Scheme to Obtain Medically Unnecessary Compounded MedicationRead the Press Release
NEWARK, N.J. – A former pharmaceutical company employee today admitted accepting thousands of dollars in exchange for filling medically unnecessary prescriptions for compounded medications for herself and her husband, causing losses of $956,885, U.S. Attorney Paul J. Fishman announced.
Julie Andresen, 39, of Haddonfield, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging her with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Andresen, a former employee of a New Jersey pharmaceutical company, admitted that from September 2014 through September 2015, she received payments from a marketing business – identified in the information as “Company A” – for filling and obtaining medically unnecessary prescription compounded medications for herself and her husband through the pharmaceutical company’s prescription drug benefit plan.
As part of the scheme, Andresen approached a doctor – who was a close friend – at social gatherings that they attended. She would give the doctor pre-printed forms listing compounded medications and ask the doctor to authorize the medications. The doctor did so, as well as authorizing multiple refills. Andresen faxed prescriptions to compounding pharmacies located outside of New Jersey designated by Company A. The compounding pharmacies would fill and bill Andresen’s prescription drug benefit plan. The pharmaceutical company’s prescription drug benefit plan reimbursed the compounding pharmacies $13,572 to $43,689 for each compounded medication Andresen and her husband received.
The compounding pharmacies would pay Company A a percentage of the reimbursement amount, and Company A would pay Andresen a percentage of the amount Company A received from the compounding pharmacies. Andresen received a total of $161,378 from Company A for her role in the conspiracy. The pharmaceutical company lost $956,885 from this scheme.
The conspiracy to commit health care fraud count to which Andresen pleaded guilty carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for June 7, 2017.
On June 29, 2016, Stephanie Naar, 27, of St. Louis, Missouri, who had been an employee of the same pharmaceutical company as Andresen, pleaded guilty before Judge Vazquez and admitted accepting thousands of dollars in exchange for obtaining and filling her own medically unnecessary prescriptions for compounded medications.
On July 19, 2016, Peter Pappas, 44, of Drexel Hill, Pennsylvania, another former employee of the same New Jersey pharmaceutical company as Andresen, also pleaded guilty before Judge Vazquez and admitted to accepting thousands of dollars in exchange for obtaining and filling his own medically unnecessary prescriptions for compounded medications. Pappas also admitted to recruiting others into this scheme.
Naar and Pappas both await sentencing.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; and U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Craig Rupert, with the ongoing investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Erica Liu of the United States Attorney’s Office, Health Care and Government Fraud Unit in Newark.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.32 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Judson Aaron Esq., Philadelphia
Former Owner of Montana Area Chili's Pleads Guilty to Bank FraudRead the Press Release
GREAT FALLS – Kenneth James Hatzenbeller, 52, of Great Falls, Montana, pleaded guilty to bank fraud today in U.S. District Court. He faces a maximum prison sentence of 30 years imprisonment and a $1 million fine. Hatzenbeller also agreed to pay at least $1,077,866 in restitution. U.S. District Court Judge Brian M. Morris presided over the change of plea and set sentencing for May 18, 2017 in Great Falls.
In court documents, federal prosecutor Chad Spraker stated that if called upon to prove its case at trial, the United States was prepared to demonstrate that in August of 2014, Hatzenbeller contacted Zions Bank and requested a $500,000 loan to purchase furniture, fixtures, and equipment for five Chili's restaurants operated by Shoot the Moon. The collateral for the loan was to be the furniture, fixtures, and equipment purchased with the loan proceeds. Hatzenbeller signed a collateral agreement acknowledging that fact.
On September 2, 2014, Hatzenbeller signed a Disbursement Request and Authorization requesting that $500,000.00 in loan proceeds be disbursed to Penner Brokerage. That same day, the Bank initiated a wire transfer of $494,890 to Wells Fargo for the benefit of Penner Brokerage based on invoices listing Penner Brokerage as the vendor for various furniture, fixtures, and equipment in that total amount. The account number identified as belonging to Penner Brokerage was in fact an account controlled by Hatzenbeller’s daughter who knew nothing of Penner Brokerage or the invoices until interviewed by the FBI. Hatzenbeller’s daughter indicated her father had asked to use her account to accept bank funds and then transfer those funds to him. The funds were never used for furniture, fixtures and equipment and were redirected to other company debts leaving Zions uncollateralized and unsecured.
Shoot the Moon filed for a Chapter 11 bankruptcy with the United States Bankruptcy Court in October of 2015. Hatzenbeller was deposed in the bankruptcy proceeding. When questioned about the $490,000 deposit into Shoot the Moon’s account, he claimed it was a loan from his daughter and her husband, which Hatzenbeller used to pay Shoot the Moon’s general expenses.
This case was prosecuted by Assistant U.S. Attorney Chad C. Spraker and investigated by the Federal Bureau of Investigation and the United States Trustee.
Former New Haven Resident Sentenced to 5 Years in Prison for Robbing Seymour BankRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DANIEL HAMLETT, SR., 55, formerly of New Haven, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 60 months of imprisonment, followed by three years of supervised release, for committing an armed robbery of a Seymour bank in 2013.
According to court documents and statements made in court, on April 9, 2013, HAMLETT drove a stolen vehicle to the Webster Bank on New Haven Road in Seymour. Wearing a mask, he exited the vehicle, approached an individual who was seated in his parked car, took out a handgun, smashed the driver’s side front window and demanded money from the victim. When the victim responded that he didn’t have any money, HAMLETT took the victim’s car keys and cell phone and told him not to move.
HAMLETT then entered the bank, ordered everyone to get on the floor, jumped over the teller counter and forcibly took $5,594 in cash from two teller drawers. He then jumped back over the teller counter, exited the bank and fled in the stolen vehicle. HAMLETT then met his son, Daniel Hamlett, Jr., who picked up his father and eluded law enforcement.
HAMLETT was arrested in Georgia on November 13, 2014, and has been detained since his arrest. On September 14, 2015, he pleaded guilty to one count of armed bank robbery.
Daniel Hamlett, Jr. also pleaded guilty and has been sentenced.
This matter was investigated by the FBI and the Seymour Police Department. The case was prosecuted by Assistant U.S. Attorneys Douglas P. Morabito and Sarala V. Nagala.
Former Navy Serviceman Sentenced to 10 Years for Enticing Minors to Engage in Sexual Activity OnlineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ADAM M. SIMPSON, 30, a former member of the U.S. Navy who was stationed in New London, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 120 months of imprisonment, followed by five years of supervised release, for enticing minors to perform sexually explicit acts during online video chats.
According to court documents and statements made in court, between approximately January 2013 and November 2013, SIMPSON used internet-based video chatting services such as Skype, Omegle, and ooVoo, to entice girls between the ages of 12 and 16 to perform sexual acts and engage in sexually explicit conduct, which SIMPSON then recorded and saved on his computer. In order to deceive the minors, SIMPSON misrepresented his age and utilized videos of young boys to impersonate being a young boy himself.
SIMPSON, of Benton, Pennsylvania, has been detained since his arrest on related state charges on January 7, 2014. On June 29, 2016, he pleaded guilty to one count of using an interstate facility to entice a minor to engage in unlawful sexual activity.
This matter was investigated by the Connecticut State Police Computer Crimes Unit, the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The U.S. Naval Criminal Investigative Service also provided critical assistance in this investigation. The case was prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Former Mendon Ballroom Owner Sentenced for False Tax ReturnsRead the Press Release
BOSTON – The former owner of the Myriad Ballroom in Mendon, Mass., was sentenced yesterday in U.S. District Court in Worcester for tax fraud.
Jon “Eddie” Rouleau, 63, was sentenced by U.S. District Court Judge Timothy S. Hillman to one year of probation and ordered to pay a fine of $3,000. In October 2016, Rouleau pleaded guilty to one count of intentionally aiding in the preparation of a false tax return. Rouleau also paid $103,107 in restitution to the IRS and a civil fraud penalty of $59,494.
Rouleau and his father owned and operated the Myriad Ballroom for decades until he sold the business and property in 2014. The investigation was initiated in 2013 when Rouleau advertised the Myriad Ballroom for sale. Rouleau told the agents, who posed as potential buyers, that the annual gross receipts and profits of the ballroom were significantly greater than reported on the ballroom’s tax returns, including the gross receipts and profit reported in 2012.
Acting United States Attorney William D. Weinreb and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made announcement. Assistant U.S. Attorney Greg A. Friedholm of Weinreb’s Worcester Branch Office prosecuted the case.
Former Major and Lt. Col. Sentenced for Defrauding the Marine CorpsRead the Press Release
Assistant U.S. Attorneys Nicholas W. Pilchak (619) 546-9709 and C. Seth Askins (619) 546-6692
NEWS RELEASE SUMMARY – February 27, 2017
SAN DIEGO – A former Lieutenant Colonel in the U.S. Marine Corps Reserves was sentenced to three months in custody followed by six months’ community confinement in a halfway house and ordered to pay forfeiture and restitution today for participating in a four-year wire fraud conspiracy to defraud the Marine Corps out of over $205,000.
Lieutenant Colonel Michael K. Strom pretended to rent the home of his fellow officer, former reservist Major Jason H. Wild, in order to claim reimbursements from the Marines when called to active duty at Camp Pendleton. Wild, in turn, pretended to rent Strom’s home. Both men submitted phony lease agreements and rental receipts to support their false claims. In truth, each man owned his own home next to Camp Pendleton and never paid any of the claimed rent.
During the sentencing hearing, U.S. District Judge Anthony J. Battaglia told the defendant: “Those that are so key to our country’s safety, our way of life, when they cross the line, it’s serious.” Strom pleaded guilty in October 2016 to conspiring to commit wire fraud, and filing false claims with the United States.
Co-defendant Wild, who was convicted by a jury at trial last November, was sentenced on February 21, 2017, to nine months in custody followed by six months’ community confinement in a halfway house. Judge Battaglia also imposed the same $205,628 forfeiture judgment and restitution order against Wild.
Wild owned his own home in Oceanside, California throughout the time he claimed rental benefits from the Marine Corps. Evidence at Wild’s trial, including witness testimony, credit card statements, tax returns, and bank records, established that Wild lived in his Oceanside home throughout the period he falsely claimed to pay $38,442 to rent Strom’s home in Laguna Niguel, California.
Five months after Wild’s “rental” concluded, Strom was activated at Camp Pendleton and falsely claimed for two years to rent Wild’s Oceanside home from Wild’s friend. Although Strom told the Marine Corps he paid $98,736 to rent Wild’s home, the evidence at trial demonstrated that Strom lived in his own home in Laguna Niguel throughout the sham “lease” period.
Financial records, including a bank analysis performed by the Naval Audit Service, established that neither defendant had paid a dollar of the claimed rent.
“Members of the armed forces who defraud the military out of its funds don’t just steal from taxpayers; they rob their comrades in arms of the resources they need to defend each other and our country,” said Acting U.S. Attorney Alana W. Robinson. “This Office will continue to investigate and prosecute those who put their own financial gain before the public trust they are sworn to uphold.”
Robinson commended the close coordination between the investigating agencies—the Department of Defense, Defense Criminal Investigative Service; the Naval Criminal Investigative Service; and the Department of Homeland Security, Office of the Inspector General—during the investigation of this case.
“The successful investigation and prosecution of these two former U.S. Marine Corp Reserve Officers, who prioritized greed over duty, demonstrates a commitment to hold accountable those who unlawfully divert precious resources needed to protect our Marines,” said Chris Hendrickson, Special Agent in Charge, Defense Criminal Investigative Service.
“The successful prosecution in this case was the direct result of collaborative teamwork between the Naval Criminal Investigative Service, its law enforcement partners, and the U.S. Attorney’s Office,” said Gunnar Newquist, Special Agent in Charge of the NCIS Southwest Field Office. “Convictions like this should serve as a deterrent to those who would put personal gain above their responsibility to American taxpayers and warfighters.”
“I am pleased with this successful investigation and prosecution,” said Amanda Thandi, Special Agent in Charge for the U.S. Department of Homeland Security, Office of the Inspector General. “We all suffer when federal programs are undermined by fraud. DHS OIG agents and our law enforcement partners will work aggressively to protect these vital programs and make sure that those who steal from them ultimately pay for their crimes.”
DEFENDANT Case No. 15-cr-2771-AJB
Jason H. Wild 45 years old Oceanside, California
Michael K. Strom 48 years old Laguna Niguel, California
CHARGES
Wire Fraud Conspiracy - 18 U.S.C. § 1349
Maximum penalty: 20 years’ imprisonment, $250,000 fine, three years’ supervised release, forfeiture and restitution.
False Claim – 18 U.S.C. § 287
Maximum penalty: 5 years’ imprisonment and $250,000 fine, three years’ supervised release, forfeiture and restitution.
AGENCIES
Department of Defense, Defense Criminal Investigative Service
Naval Criminal Investigative Service
Department of Homeland Security, Office of the Inspector General
Former Corrections Officer, Inmates and Others Arrested in Drug Smuggling Conspiracy at Richard J. Donovan Correctional FacilityRead the Press Release
Assistant U. S. Attorney Andrew Young (619) 546-7981
Assistant U.S. Attorney Todd Robinson (619)-546-7994
NEWS RELEASE SUMMARY – February 28, 2017
SAN DIEGO – Eleven people, including a former Corrections Officer at Richard J. Donovan (“RJD”) Correctional Facility, are charged in federal court as members of a network that smuggled methamphetamine, heroin, marijuana and cellular telephones into the prison.
The key defendant, Anibal Navarro, the former Corrections Officer at RJD, was arrested by FBI Agents and officials from the California Department of Corrections and Rehabilitations-Office of Internal Affairs on June 26, 2016 as he attempted to smuggle heroin, methamphetamine and cellular telephones into the prison.
Ten additional individuals, including inmates and their associates on the outside, were indicted by a federal grand jury on charges that they conspired with Navarro to smuggle drugs and cellular telephones into the prison. Navarro was released on bond.
Four defendants were arrested today in Los Angeles; six are already in custody in California state prisons.
According to the indictment, Martin Gomez, while an inmate at RJD in 2014, recruited Navarro to smuggle contraband into the prison. After Gomez was moved to another California state prison, he continued to coordinate and supervise the operation by conducting conference calls with Sylvia Gonzales, Gomez’s associate outside the prison, Navarro and others. During these calls, the conspirators arranged for narcotics, cellular telephones and cash to be delivered to Navarro at various locations in Southern California.
In addition to Gonzales, the smuggling operation was also aided by others outside the prison, including Everaldo Santana, Norma Alvardo-Medina and Vanessa Jackson, according to allegations in the indictment. These individuals provided Navarro with the narcotics and cellular telephones to smuggle into the prison. return, Navarro was paid between $1,000 and $2,000 each time he smuggled contraband into the prison. According to the dictment, this smuggling operation began in April 2014 and lasted nearly two years until it was dismantled in June 2016 with Navarro’s arrest.
The indictment alleges that after the contraband was smuggled into the prison, RJD inmates Agustin Aceves, Juan Gutierrez, John Price, Jeremy Gaither and Hugo Alvarado received and distributed the narcotics and cellular telephones to other inmates. The phones were used to coordinate criminal activity both inside and outside the facility.
Deputy United States Attorney Mark Conover said, “Corrections officers play a critical role in protecting the public from some of the most dangerous criminals. By placing greed above his duty, former Officer Navarro compromised the security of the public and enabled violent felons to continue committing crimes within the prison walls. We will continue to aggressively investigate and prosecute every individual involved in these criminal activities.”
FBI Special Agent Eric S. Birnbaum said, “The FBI is responsible for investigating corruption involving government officials and their entire criminal networks. Today’s arrests are an example of how our investigators work with our law enforcement and corrections partners to reveal the individuals fulfilling each role of the criminal network that affect the safety and security of our correctional facilities.”
The FBI encourages the public to report allegations of public corruption to our hotline at (877) NO-BRIBE (662-7423).
DEFENDANTS Case No. 17cr0446-AJB
MARTIN GOMEZ Age 56 Lancaster Prison
SYLVIA GONZALES Age 57 Sylmar, California
EVERALDO SANTANA Age 25 Los Angeles, California
AGUSTIN ACEVES Age 42 Lancaster Prison
NORMA ALVARADO-MEDINA Age 33 El Monte, California
JUAN GUTIERREZ Age 42 Vacaville, California
JOHN PRICE Age 20 Salinas Valley Prison
VANESSA JACKSON Age 39 Pasadena, California
JEREMY GAITHER Age 33 Valley State Prison
HUGO ALVARADO Age 24 High Desert Prison
DEFENDANTS Case No. 16cr1664-AJB
ANIBAL NAVARRO Age 38 Chula Vista, California
SUMMARY OF CHARGES
Conspiracy to Distribute Controlled Substances – Title 21, U.S.C., Sections 841(a) (1) and 846
Maximum Penalty: Life in Prison
Conspiracy to Commit Honest Services Fraud – Title 18, U.S.C., Sections 1349
Maximum Penalty: 20 years in prison
AGENCY
Federal Bureau of Investigation – San Diego Field Office
California Department of Corrections and Rehabilitation’s Office of Internal Affairs
California Department of Corrections and Rehabilitation’s Investigative Service Unit
United States Postal Service – Inspection Service
San Diego Police Department
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Former Corrections Officer at Sandoval County Detention Center Pleads Guilty to Federal Heroin Trafficking ChargeRead the Press Release
ALBUQUERQUE – Christopher Gonzales, 20, of Rio Rancho, N.M., entered a guilty plea today in federal court in Albuquerque, N.M., to a heroin trafficking charge. At the time he committed the offense, Gonzales was a corrections officer at the Sandoval County Detention Center. Under the terms of his plea agreement, Gonzales faces up to 18 months in federal prison to be followed by a term of supervised release to be determined by the court.
Gonzales and co-defendant Fabrienne Rosalinda Morales, 39, of Peralta, N.M., were arrested in Jan. 2016, on a five-count indictment charging them with conspiracy. The indictment also charged Gonzales with possession of heroin and suboxone with intent to distribute, and Morales with distribution of heroin and suboxone. The indictment was superseded on Feb. 9, 2016, to add a third defendant, Ismael Vargas, 29, of Belen, N.M., who was charged with conspiracy. According to the superseding indictment, the three defendants committed the crimes charged on Aug. 2, 2015, in Sandoval County, N.M.
During today’s proceedings, 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 has yet to be scheduled.
On Jan. 13, 2017, Morales pled guilty to distributing heroin. In entering the guilty plea, Morales admitted that on Aug. 2, 2015, she smuggled heroin into the Sandoval County Detention Center and gave it to a corrections officer. Under the terms of her plea agreement, Morales will be sentenced to not more than 24 months in federal prison followed by a term of supervised release to be determined by the court. A sentencing hearing has yet to be scheduled.
Vargas has entered a plea of not guilty and is pending trial. 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 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.
Former College Patrol Officer Sentenced for Sending Sexually Explicit Images to MinorRead the Press Release
BOSTON – A former Massasoit Community College patrol officer, who was also a Somerset Police Department reserve officer, was sentenced today in U.S. District Court in Boston in connection with attempting to send sexually explicit images and videos of himself to an underage girl.
Cliff Oliveira, 28, of Somerset, was sentenced by U.S. District Court Judge Allison D. Burroughs to 14 months in prison and three years of supervised release, after pleading guilty in November 2016 to one count of attempted transfer of obscene material to a minor.
In November 2015, law enforcement officers discovered that an unknown adult male (later identified as Oliveira) was using the screen name “samuricop” on Kik Messenger to engage in sexually explicit chats and send sexually explicit images to a 13-year-old girl in South Carolina. Undercover officers subsequently engaged samuricop on Kik Messenger using the persona of an underage girl named “Gabbi.”
For approximately six weeks, undercover officers communicated with samuricop – informing him that Gabbi was a 14-year-old, middle school classmate of the 13-year-old minor victim. Samuricop asked Gabbi to call him “daddy” and went on to engage in sexually explicit conversations with her. On Jan. 13, 2016, samuricop used Kik Messenger to send several images and a video of himself masturbating to “Gabbi.”
During the course of the communications with the 13-year-old victim and with the undercover officers, samuricop informed them that he worked as a police officer. He also repeatedly sent images of a police cruiser and a firearm. Investigators subsequently used those images as well as IP login information provided by Kik to identify Oliveira as the user of the samuricop account. At the time, Oliveira was working as a patrol officer for the Massasoit Community College Police Department and reserve officer for the Somerset Police Department.
Acting United States Attorney William D. Weinreb; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Greenville County (South Carolina) Sheriff Steve Loftis made the announcement today. Assistance with the investigation was also provided by the Somerset, Brockton, and Massasoit Community College Police Departments. Assistant U.S. Attorney Jordi de Llano of Weinreb’s Criminal Division is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Former Central Iowa Psychiatrist Sentenced to Two Months in Prison for Health Care FraudRead the Press Release
DES MOINES, IA – On February 28, 2017, Richard Lee Hauser, M.D., 67, formerly of the Grinnell, Iowa, area was sentenced by Senior United States District Court Judge Robert W. Pratt to two months in federal prison for two counts of health care fraud, announced United States Attorney Kevin E. VanderSchel. The two-month sentences were ordered to be served at the same time. Hauser was also ordered to serve three years of supervised release following his prison term, pay $200 to the Crime Victims’ Fund, and pay a total of $30,879 in restitution to the State of Iowa Medicaid program (Iowa Medicaid) and Wellmark Blue Cross and Blue Shield of Iowa (Wellmark).
Hauser pleaded guilty to these charges on October 19, 2016. According to the plea agreement, from about October 2008 until about August 2013, Dr. Hauser, a psychiatrist licensed to practice in Iowa, oversaw and personally provided services at a clinic in Grinnell, Iowa. The clinic operated under the name Prevention Systems, Inc., and did business as The Hauser Clinic. Beginning by at least November 8, 2011, and continuing to at least on or about December 31, 2012, Dr. Hauser devised a scheme and artifice to obtain, by means of materially false and fraudulent representations, money from the Iowa Medicaid program and Wellmark, in connection with the delivery of and payment for health care benefits and services. As part of this scheme, Dr. Hauser “upcoded” claims, meaning he submitted claims to Iowa Medicaid and Wellmark, misrepresenting the service Hauser provided to certain patients by “coding” for a more expensive service, which was not, in fact, performed. The purpose of “coding” for a more expensive service was to increase the amount of reimbursement The Hauser Clinic would receive from Iowa Medicaid and Wellmark.
This matter was investigated by the State of Iowa Medicaid Fraud Control Unit and the United States Postal Inspection Service. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected]
Former Bank Employee Sentenced for EmbezzlementRead the Press Release
POCATELLO – Stefani Bennett, 45, of Salmon, Idaho, was sentenced today to 15 months imprisonment for embezzlement by a bank employee, Acting U.S. Attorney Rafael M. Gonzalez, Jr., announced. Chief U.S. District Judge B. Lynn Winmill also ordered Bennett to serve five years of supervised release following her prison sentence and to pay restitution of $116,945. She pleaded guilty on September 28, 2016.
Bennett was an employee of the U.S. Bank in Salmon, Idaho. On July 8, 2011, Bennett withdrew $100,000 from a customer’s account and converted it to five cashier’s checks and $2,407.59 in cash, which she used to pay her personal bills and make personal purchases, all without authorization. Bennett admitted to other bank employees and to special agents with the Federal Bureau of Investigation, who interviewed her at a later date, that she took the money.
The case was investigated by the Federal Bureau of Investigation.
Exporter of Microelectronics to Russian Military Sentenced to 135 Months in Prison Following Convictions on All CountsRead the Press Release
Alexander Posobilov, 62, of Houston, Texas, was sentenced to 135 months in prison for conspiring to export and illegally exporting controlled microelectronics to Russia, and for conspiring to launder money.
The sentence was announced by Acting Assistant Attorney General for National Security Mary B. McCord and U.S Attorney Robert L. Capers for the Eastern District of New York. The sentencing took place before Senior U.S. District Judge Sterling Johnson, Jr.
“With this sentence, Alexander Posobilov is being held accountable for evading export laws and illegally exporting American microelectronics to Russia for military use,” said Acting Assistant Attorney General McCord. “Export laws exist as an important part of our national security framework and protecting national assets from ending up in the hands of our potential adversaries is one of our highest priorities.”
“Posobilov helped lead a criminal operation that through lies and subterfuge profited handsomely from the unlawful sale and export of sophisticated American microelectronics for use by the Russian military,” stated U.S. Attorney Capers. “Today’s sentence shows that those who compromise the national security of the United States for their personal financial gain will face serious punishment.” Mr. Capers extended his grateful appreciation to the FBI’s Houston Field Office and the Department of Commerce for their leading roles in the investigation.
Posobilov, as well as ten other individuals and two corporations – ARC Electronics, Inc. (ARC) and Apex System, L.L.C. (Apex) – were indicted in October 2012. Posobilov and two co-conspirators were subsequently convicted at trial on all counts in October 2015. Of the remaining defendants, five pleaded guilty and three remain at large. ARC is now defunct, and Apex, a Russian-based procurement firm, failed to appear in court.
Posobilov joined ARC in 2004, where he ascended to become the procurement manager and day-to-day director of the company. Between approximately October 2008 and October 2012, Posobilov managed a team of employees who worked to obtain advanced, technologically cutting-edge microelectronics from manufacturers and suppliers located within the U.S. and to export those high-tech goods to in Russia, while evading the government licensing system set up to control such exports. These commodities have applications and are frequently used in a wide range of military systems, including radar and surveillance systems, missile guidance systems and detonation triggers. Russia was not capable of producing many of these sophisticated goods domestically. Between 2002 and 2012, ARC shipped approximately $50,000,000 worth of microelectronics and other technologies to Russia. ARC’s largest clients were certified suppliers of military equipment for the Russian Ministry of Defense.
To induce manufacturers and suppliers to sell these high-tech goods to ARC, and to evade applicable export controls, Posobilov and his co-conspirators provided false end user information in connection with the purchase of the goods, concealed the fact that they were exporters and falsely classified the goods they exported on export records submitted to the Department of Commerce.
Ultimate recipients of ARC’s products included a research unit for the Russian FSB internal security agency, a Russian entity that builds air and missile defense systems and another that produces electronic warfare systems for the Russian Ministry of Defense.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant U.S. Attorneys Richard M. Tucker and Una A. Dean, as well as Trial Attorney David Recker from the National Security Division’s Counterintelligence and Export Control Section, are in charge of the prosecution. Assistant U.S. Attorney Claire Kedeshian is handling the forfeiture aspects of the case.
Exporter of Microelectronics to Russian Military Sentenced to 135 Months in Prison Following Convictions on All Counts at TrialRead the Press Release
Earlier today in United States District Court in Brooklyn, Alexander Posobilov was sentenced to 135 months’ imprisonment for conspiring to export and illegally exporting controlled microelectronics to Russia, as well as for conspiring to launder money.
Posobilov, together with ten other individuals and two corporations – ARC Electronics, Inc. (ARC) and Apex System, L.L.C. (Apex) – were indicted in October 2012. Posobilov and two co-conspirators were subsequently convicted at trial on all counts in October 2015. Of the remaining defendants, five pleaded guilty and three remain at large. ARC is now defunct, and Apex, a Russian-based procurement firm, failed to appear in court.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Acting Assistant Attorney General for National Security Mary B. McCord.
“Posobilov helped lead a criminal operation that through lies and subterfuge profited handsomely from the unlawful sale and export of sophisticated American microelectronics for use by the Russian military,” stated United States Attorney Capers. “Today’s sentence shows that those who compromise the national security of the United States for their personal financial gain will face serious punishment.” Mr. Capers extended his grateful appreciation to the Federal Bureau of Investigation, Houston Field Office and the Department of Commerce for their leading roles in the investigation.
“With this sentence, Alexander Posobilov is being held accountable for evading export laws and illegally exporting American microelectronics to Russia for military use,” said Acting Assistant Attorney General McCord. “Export laws exist as an important part of our national security framework and protecting national assets from ending up in the hands of our potential adversaries is one of our highest priorities.”
Posobilov joined ARC in 2004, where he ascended to become the procurement manager and day-to-day director of the company. Between approximately October 2008 and October 2012, managed a team of employees who worked to obtain advanced, technologically cutting-edge microelectronics from manufacturers and suppliers located within the United States and to export those high-tech goods to in Russia, while evading the government licensing system set up to control such exports. These commodities have applications and are frequently used in a wide range of military systems, including radar and surveillance systems, missile guidance systems and detonation triggers. Russia was not capable of producing many of these sophisticated goods domestically. Between 2002 and 2012, ARC shipped approximately $50,000,000 worth of microelectronics and other technologies to Russia. ARC’s largest clients were certified suppliers of military equipment for the Russian Ministry of Defense.
To induce manufacturers and suppliers to sell these high-tech goods to ARC, and to evade applicable export controls, Posobilov and his co-conspirators provided false end user information in connection with the purchase of the goods, concealed the fact that they were exporters, and falsely classified the goods they exported on export records submitted to the Department of Commerce.
Ultimate recipients of ARC’s products included a research unit for the Russian FSB internal security agency, a Russian entity that builds air and missile defense systems and another that produces electronic warfare systems for the Russian Ministry of Defense.
Today’s sentencing took place before United States District Senior Judge Sterling Johnson, Jr.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Richard M. Tucker and Una A. Dean, as well as Trial Attorney David Recker from the National Security Division’s Counterintelligence and Export Control Section, are in charge of the prosecution. Assistant United States Attorney Claire Kedeshian is handling the forfeiture aspects of the case.
The Defendant:
ALEXANDER POSOBILOV
Age: 62
Houston, Texas
E.D.N.Y. Docket No. 12 CR 626 (SJ)
E.D. Pa. U.S. Attorney Reaches Settlement for False Claims Act Violations on Project Management Oversight ContractRead the Press Release
PHILADELPHIA – Louis D. Lappen, Acting United States Attorney for the Eastern District of Pennsylvania, announced today that the United States had reached a civil settlement with CH2M Hill, Inc. (“CH2M”) resolving civil claims concerning CH2M’s improper billing under a Joint Venture Project Management Oversight Agreement (“PMO”) with Amtrak. To resolve the government’s civil claims against it, CH2M has agreed to pay the United States $1,500,000.00 pursuant to the settlement agreement.
CH2M and its joint venture partner performed project management functions on several Amtrak construction projects throughout the eastern United States. The PMO contract required that CH2M bill actual labor and overhead rates for the employees working the various projects. The United States contends that it has certain civil claims against CH2M arising from CH2M’s billing under the PMO contract during the period January 1, 2011 through December 31, 2014. This conduct included: a) continuing to bill overhead at a maximum rate listed in the Joint Venture PMO Contract without adjusting the overhead rate to actual costs incurred; b) billing employees of the lower overhead related company CH2M HILL Constructors, Inc. (“CCI”) as if they were employees of the higher overhead CH2M; and c) billing overhead rates of field employees that did not match the actual overhead rates of field employees.
The case arose when an audit of CH2M’s billing showed discrepancies. The case was investigated by Amtrak and the Department of Transportation’s Offices of Inspector General. For the United States Attorney’s Office for the Eastern District of Pennsylvania, this investigation and settlement was handled by Assistant United States Attorney Colin M. Cherico.
The claims settled by this settlement agreement are allegations only and there has been no determination of liability.Drug Trafficking Charges Filed Against Alleged Members of Violent Groups in Philadelphia Public Housing FacilityRead the Press Release
PHILADELPHIA – Two indictments[1] were unsealed today charging 24 people in violent drug trafficking groups that had operated out of the Norman Blumberg Apartment Complex, a public housing facility in Philadelphia, announced Acting United States Attorney Louis D. Lappen. The first indictment (Criminal No. 17-71) charges Edward Stinson, 27, Emmett Perkins, 29, Rondell Holloway, 27, Jamillah Bellamy, 35, Debra Baylor, 28, Jerry Lawrence, 27, Germel Perkins, 24, Carl Stinson, 21, Imere Stinson, 22, Daquian Brown, 22, Reginald Copper, 55, Terrance Jackson, 47, and Stephen Dawkins, Sr., 52, all of Philadelphia, with conspiracy to distribute 280 grams or more of crack cocaine, distribution of crack cocaine within 1,000 feet of public housing (a drug-free zone), and related crimes in 86 separate counts. The second indictment (Criminal No. 17-72) charges Juan Jarmon, 30, Damon Edwards, 31, Donta Edwards, 28, Raheen Butler, 33, Michael Ferrell, 25, Dottie Good, 30, Taft Harris, Jr., 27, Steven Thompson, 34, Derek Fernandes, 58, Anthony Staggers, 34, and Gene Wilson, Jr., 40, all of Philadelphia, as well as Edward Stinson and Dawkins, with conspiracy to distribute 280 grams or more of crack cocaine, distribution of crack cocaine within 1,000 feet of public housing (a drug-free zone), and related crimes in 48 separate counts.
It is alleged that members of these drug trafficking groups sold crack cocaine 24 hours a day, 7 days a week, in and around the public housing facility, employing a large network of supervisors, shift sellers, and lookouts, including juveniles. Members of these groups allegedly supplied millions of dollars of crack cocaine in the alleys, hallways, and residences of this public housing facility and to the streets of this neighborhood. It is further alleged that members of these groups used and carried firearms, robbed rival drug dealers, and used intimidation, threats, and violence to further the interests of the groups. For example, the second indictment (Criminal No. 17-72) alleges that when one female resident told others that the group sold drugs, Jarmon threatened her and then physically assaulted her, allowing the group to continue selling crack cocaine.
“These indictments charge the defendants with running large-scale, violent drug trafficking groups in a public housing facility that provided housing to low-income residents and families,” said Lappen. “Individuals who engage in drug trafficking, particularly those who prey on the financial weakness and vulnerability of persons, such as drug users and addicts, juveniles, and those living in poverty, should know that they will be prosecuted and held accountable for their crimes. We will continue to commit the federal resources necessary to combat these drug trafficking groups and give the many good residents in these areas an opportunity to reclaim their neighborhoods.”
“For years, this organization has maintained a stranglehold on the Blumberg Apartments complex and surrounding neighborhoods,” said FBI Special Agent in Charge Michael Harpster. “They’ve used intimidation and violence to maintain control of that area. The FBI and our law enforcement partners are determined to bring drug traffickers to justice, for the crimes committed and incalculable damage done to our communities.”
“These defendants terrorized the residents of the Norman Blumberg Apartment complex with their drug trafficking activities alleged in these indictments as well as the violence associated with their illegal trade,” said Gary Tuggle, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “The DEA, working with its law enforcement partners such as the FBI, PPD, Philadelphia Housing Authority Police Department, and the Philadelphia District Attorney’s Office will remain vigilant in pursuing cases against drug trafficking organizations that seek to hold residents of public housing communities hostage with their criminal activities.”
According to the indictments, Edward Stinson was a leader of both drug trafficking groups and conducted drug trafficking activities from both inside and outside of prison. As charged in the first indictment (Criminal No. 17-71), Edward Stinson and Emmett Perkins controlled drug sales in various areas of the public housing facility from 2010 to 2015. As charged in the second indictment (Criminal No. 17-72), Jarmon, Damon Edwards, and Edward Stinson controlled drug sales in various areas of the public housing facility from 2012 to 2014. These leaders allegedly obtained bulk crack and cocaine, cooked and packaged crack cocaine into bundles, hired, fired, and supervised shift sellers and lookouts, levied taxes on members and customers, and provided protection from other drug trafficking groups. It is alleged that the shift sellers were the daily workers employed by the leaders to sell crack cocaine in the locations controlled by the groups, while the lookouts assisted other members of the groups by alerting them to the presence of law enforcement and directing customers to the shift sellers.
If convicted of all charges, each defendant faces a maximum possible sentence of life in prison and a mandatory minimum of 10 years in prison.
This case was investigated by the United States Attorney’s Office, Federal Bureau of Investigation, and Drug Enforcement Administration in collaboration with the Philadelphia Police Department, the Philadelphia District Attorney’s Office and the Philadelphia Housing Authority Police. It is being prosecuted by Assistant United States Attorneys Jerome Maiatico and Katayoun Copeland.
[1] An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Denver Man Sentenced to Prison for Illegally Possessing Firearms Stolen from Colorado Gun StoreRead the Press Release
DENVER – Eric Michael Perez, age 20, of Denver, Colorado, was sentenced late last week by U.S. District Court Judge Philip A. Brimmer to serve 70 months (nearly 6 years) in federal prison for being a felon in possession of a firearm, Acting U.S. Attorney Bob Troyer and ATF Special Agent in Charge Debora Livingston announced. Following his prison sentence, Judge Brimmer ordered the defendant to serve 3 years on supervised release. The defendant, who appeared at the sentencing hearing in custody, was remanded at the conclusion.
Defendant Perez was indicted by a federal grand jury on July 27, 2016. He pled guilty to the charge in the indictment on November 23, 2016. He was sentenced by Judge Brimmer on February 23, 2017.
According to court documents, including the stipulated facts contained in the defendant’s plea agreement, on June 21, 2016, 35 guns were stolen from Colorado Gun Broker in Jefferson County during an after-hours burglary. While processing the scene, investigators discovered fresh blood on the price tag of a shotgun used to break glass display cases containing the stolen weapons. The blood sample and DNA profile were analyzed and matched the defendant.
On June 29, 2016, ATF agents and Aurora Police Department Officers, through investigative leads and databases, located the defendant a residence in Aurora, Colorado. He was taken into custody on outstanding state and federal warrants. Law enforcement received consent to search the residence and recovered two firearms in the defendant’s bedroom that were stolen in the Colorado Gun Broker burglary.
“Investigating the gun store burglaries and recovering the stolen firearms is a top priority for ATF in Denver,” said ATF Denver Field Division Special Agent in Charge Debora Livingston. “ATF is collaborating closely with all the affected police departments and neighboring jurisdictions to pool our intelligence and investigative resources. This is our first success, and it will not be the last.”
Perez was prohibited from possessing firearms after having been convicted of crimes punishable by more than one year in prison. He was also serving a 15-month consecutive sentence in the Colorado Department of Corrections for a probation violation related to an auto theft conviction out of Jefferson County.
The case was investigated by ATF, Aurora Police Department and Jefferson County Sheriff’s Office.
The defendant was prosecuted by Assistant United States Attorney Caroline Friedman.
Davenport Man Sentenced to Prison for Drug TraffickingRead the Press Release
DAVENPORT, IA - On February 27, 2017, Curtis Lee Dale, 44, of Davenport, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 300 months in prison for conspiracy to manufacture, distribute, and possess with intent to distribute 500 grams and more of cocaine, 28 grams and more of cocaine base, and 100 grams and more of heroin; and, for possession with intent to distribute 500 grams of cocaine, at least 28 grams of cocaine base, and 100 grams of heroin, announced United States Attorney Kevin E. VanderSchel. A concurrent sentence of 120 months in prison was also imposed for a felon in possession of a firearm charge. Dale committed these offenses while on federal supervised release for drug and gun convictions from 1997. At the conclusion of the sentencing hearing, Chief Judge Jarvey imposed a concurrent sentence of 60 months for violating supervised release in the 1997 case. Dale was also ordered to serve eight years of supervised release following the period of imprisonment, and pay $300 to the Crime Victims’ Fund.
On June 2, 2016, Dale was arrested after U. S. Drug Enforcement Administration agents and members of the Rock Island Police Department searched a storage unit accessed by Dale. The agents discovered more than a kilogram of cocaine, 5 ounces of cocaine base, and more than 100 grams of heroin in the unit along with a Ruger, 9mm pistol and ammunition. That same day, Dale was located and found with individually wrapped baggies of heroin in his pocket and approximately two ounces of cocaine in his residence.
On October 3, 3016, trial commenced in the U.S. Courthouse in Davenport, Iowa. On October 5, 2016, the jury returned a verdict of guilty conspiracy involving 28 grams and more of cocaine base, 500 grams and more of cocaine, and 100 grams and more of heroin, and guilty of the drug possession charge and the gun offense.
This matter was investigated by the U. S. Drug Enforcement Administration, the Rock Island Police Department, the Bettendorf Police Department, and the Iowa Division of Narcotics Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected]
Columbus Bank Robber Pleads Guilty After Jury SelectedRead the Press Release
G.F. “Pete” Peterman, III, United States Attorney for the Middle District of Georgia, announces Christopher Belt, age 26, of Columbus, Georgia entered a plea of guilty on February 27, 2017 to bank robbery and possession of a firearm during the commission of a crime of violence in front of District Court Judge Clay D. Land. Mr. Belt entered the guilty plea after a jury had been selected to hear his case.
The evidence showed that Mr. Belt entered the Milgen Road branch of the Wells Fargo Bank on March 18, 2016, wearing a disguise and carrying a firearm. Mr. Belt approached a lone teller, demanded money, and was given $8,101 in bank proceeds. He then exited the bank and fled in a gold-colored Ford Fusion. The robbery lasted for less than a minute. An employee at the bank managed to write down the Fusion’s license plate number, and Columbus Police detectives were able to trace the car to a known associate of Mr. Belt’s. Mr. Belt was arrested in connection with the robbery on April 5, 2016. The stolen money and the firearm used during the robbery were not recovered.
Sentencing has been set for July 13, 2017. Bank robbery is punishable by a maximum of 20 years imprisonment. Possession of a firearm during the commission of a crime of violence is punishable by a maximum of five years imprisonment and must be served consecutive to any imprisonment due to the bank robbery charge. As a condition of his sentence, Mr. Belt will have to pay $8,101 restitution to Wells Fargo Bank.
The investigation primarily was worked by the Columbus Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Melvin E. Hyde is prosecuting the case on behalf of the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Broward County School District Employee Charged with Obstructing Drug InvestigationRead the Press Release
A Broward County School District employee has been charged with obstructing a drug investigation.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Porsha Session, 31, of Boynton Beach, Florida, was charged by Indictment with obstructing an official proceeding, in violation of Title 18, United States Code, Section 1512(c)(2). If convicted, Session faces a statutory maximum term of 20 years’ imprisonment of 20 and a fine up to $250,000.
According to the indictment, federal, state and local law enforcement agencies were investigating drug trafficking and other criminal offenses in Lauderhill, Florida. Session’s relative was one of the detectives from the Lauderhill Police Department assigned to the Lauderhill investigation. During the course of the Lauderhill investigation, law enforcement, including the defendant’s relative, received information, including details from a confidential informant, regarding individuals involved with drug trafficking, and vehicles used by and telephone numbers associated with, members of the criminal enterprise.
Session obtained information provided to her relative concerning the Lauderhill investigation. Session, while working as an employee of the Broward County School District, then made a series of telephone calls to a target of the drug trafficking investigation and warned the individual that he/she and other persons were being monitored by law enforcement. Session also warned the target that an inside source, an informant, was providing details of the criminal enterprise to law enforcement. As a result of Session’s disclosure, the target changed his/her telephone number in an attempt to avoid detection by law enforcement and the confidential informant was moved for his/her safety.
Mr. Ferrer commended the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Drug Enforcement Administration, Lauderhill Police Department, and Sunrise Police Department for their investigative assistance with this matter. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
An indictment is a formal charging document notifying the defendant of the criminal charges. All persons charged in an indictment are presumed innocent until proven guilty in a court of law.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Boston Man Pleads Guilty to Identity Theft in Scheme to Defraud Retirement AccountsRead the Press Release
BOSTON – A Boston man pleaded guilty today in connection with his role in a scheme to steal personal information and bank account numbers to withdraw money from retirement accounts.
Kevin Marseille, 26, pleaded guilty to identity theft, access device fraud, and conspiracy to commit those offenses. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for May 31, 2017.
In 2014, Marseille approached Jasmine Banks, who, at the time, worked as a customer service employee at Mercer, Inc., in Norwood, Mass. Marseille used Banks to obtain personally identifiable information and bank account information for individuals whose retirement accounts were administered by Mercer, a New York-based company, which provides consulting and related services for employers, including administration of retirement benefit plans.
From approximately February 2014 to April 2014, Banks accessed customer account information from her computer and provided this information to Marseille via email. Marseille obtained the names, addresses, and bank account and routing numbers for approximately 270 Mercer account holders. In many cases, he also obtained account holders’ dates of birth and social security numbers. He further sought and obtained detailed account access information, including usernames, answers to password-reset questions, and detailed instructions about how to access and withdraw funds from four retirement accounts with substantial balances.
The retirement account information was used to load a prepaid card with nearly $20,000 in fraudulently obtained funds. Marseille then used the prepaid card to purchase electronic goods and other products at retailers, including Target and Best Buy. Intervention by Mercer and law enforcement prevented further account access and withdrawals. Mercer has cooperated fully with the government’s investigation.
In March 2016, Banks pleaded guilty to conspiracy to commit access device fraud and identity theft and is scheduled to be sentenced on March 27, 2017.
The charge of identity theft provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charges of access device fraud and conspiracy each provide for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Stephen A. Marks, Special Agent in Charge of the United States Secret Service made the announcement today. Assistant U.S. Attorney David J. D’Addio of Weinreb’s Cybercrime Unit is prosecuting the case.
Attorney General Announces Crime Reduction and Public Safety Task ForceRead the Press Release
Attorney General Jeff Sessions today announced the formation of the U.S. Department of Justice Task Force on Crime Reduction and Public Safety.
The Task Force was formed pursuant to the President’s Executive Order on a Task Force on Crime Reduction and Public Safety and will be chaired by the Deputy Attorney General. Task Force members will be drawn from relevant Department components, and will include the Director of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Administrator of the Drug Enforcement Administration (DEA), the Director of the FBI and the Director of the U.S. Marshals Service (USMS).
“The President issued an executive order, and I feel strongly about it,” said Attorney General Sessions. “On my first day in office, I called in the heads of the four major law enforcement agencies to discuss this plan. Violent crime is on the rise, and we must always remember that crimes are committed against real people. The creation of this task force is a critical step toward confronting this crisis vigorously, effectively and immediately.”
The task force is central to the Attorney General’s commitment to combatting illegal immigration and violent crime, such as drug trafficking, gang violence and gun crimes, and to restoring public safety to all of the nation’s communities.
The task force is charged with developing strategies to reduce crime; identifying deficiencies in existing laws and policies that have made them less effective in reducing crime and proposing new legislation and policies to improve public safety and reduce crime; evaluating the availability and adequacy of crime-related data and identifying measures to improve it; and conducting any other relevant studies. In conducting its work, the task force will consult with federal, state, tribal and local law enforcement, law enforcement organizations and victims’ and community advocacy organizations, among others, to learn about successful local efforts and how they can best be supported at the federal level.
“For more than a hundred years the women and men of the FBI have worked to address threats to the American people,” said Director James Comey of the FBI. “I look forward to continuing and building upon the great partnerships with our federal, state, local, and tribal counterparts on this initiative to combat violent crimes, gang activities and drug trafficking – all of which exact a high toll on our country.”
“The safety and well-being of our communities and our citizens is a vital part of our mission,” said Acting Administrator Chuck Rosenberg of the DEA. “I look forward to our continued close work on the task force with our law enforcement partners on these crucial issues.”
“The men and women of the United States Marshals Service stand ready to work with our federal, state, local and tribal law enforcement partners to remove the underlying criminal element from our communities,” said Acting Director David L. Harlow of USMS. “In 2016, working with our task force partners, the USMS arrested over 106,000 violent fugitives. We look forward to finding innovative methods to further reduce violent crime across our nation.”
“ATF’s top priority is reducing violent crime,” said Acting Director Thomas Brandon of the ATF. “Across the nation, ATF focuses its resources on arresting and prosecuting violent criminals who use firearms to terrorize communities. ATF’s Crime Gun Intelligence Centers provide timely, actionable leads to our agents and our partner agencies so they can identify, investigate and apprehend trigger-pullers and those who illegally supply them with firearms. ATF looks forward to working with Attorney General Sessions and our federal, state, tribal and local law enforcement counterparts to further enhance our violent crime reduction strategies through the Task Force on Crime Reduction and Public Safety.”
Arkansas Man Arrested on Child Sex Tourism ChargesRead the Press Release
An Ashdown, Arkansas, resident has been arrested and charged by criminal complaint with traveling in foreign commerce with the purpose of engaging in illicit sexual conduct with a minor, in violation of Title 18, United States Code, Section 2423(b).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
According to allegations made in the criminal complaint, Daniel John Pye, 35, originally of Bradenton, Florida, traveled from the Southern District of Florida to Haiti on multiple occasions from the years 2008 through 2011 for the purpose of sexually abusing minors. Pye, who ran a missionary orphanage in Jacmel, Haiti, is alleged to have engaged in illicit sexual conduct with minor female children who resided at his orphanage.
Since leaving Haiti, Pye is believed to have resided in the Liberty Hill, Texas, Texarkana, Texas, and Ashdown, Arkansas, areas.
Law enforcement encourages the public to report suspected child predators and any suspicious activity to Homeland Security Investigations (HSI) through the toll-free Tip Line at 1-866-DHS-2-ICE or by completing the online tip form at https://www.ice.gov/webform/hsi-tip-form.
Mr. Ferrer commended the investigative efforts of ICE-HSI. Mr. Ferrer thanked the Florida Department of Law Enforcement for their assistance. The case is being prosecuted by Assistant U.S. Attorney Benjamin Widlanski.
A criminal complaint is only an accusation and a defendant is presumed innocent until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Area Man Charged with Evading Income TaxesRead the Press Release
HOUSTON – A local man is set to make an appearance in federal court for willfully attempting to evade or defeat his 2012 income taxes, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Rick Goss of IRS – Criminal Investigation (CI).
“Every person has a duty to pay their fair share of taxes,” said Goss. “This case represents IRS-CI's commitment to unravelling the most sophisticated ways that offenders try to evade paying their obligations.”
Daniel Bart Thedinger is charged by criminal information, filed Feb. 15, 2017. He is expected to make an initial appearance before U.S. Magistrate Judge Mary Milloy today at 10:00.
According to the charges, Thedinger reported joint taxable income of $355,322 for 2012, when the true amount was actually $649,613. Thedinger still owes a substantial additional income tax of $86,192 for 2012, according to the allegations.
If convicted, Thedinger faces up to five years in federal prison if convicted of tax evasion as well as a possible $250,000 maximum fine.
IRS-CI conducted the investigation. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.
A criminal information is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Amarillo Men Sentenced on Cocaine OffensesRead the Press Release
AMARILLO, Texas — Two defendants, who pleaded guilty in November 2016 to their respective roles in cocaine trafficking have been sentenced, announced John Parker, U.S. Attorney for the Northern District of Texas.
Yesterday, U.S. District Sidney A. Fitzwater sentenced Roberto Rodriguez, 32, to a 60-month term of imprisonment. Rodriguez pleaded guilty to one count of possession with intent to distribute 500 grams or more of cocaine and aiding and abetting. Co-defendant Emmanuel Hira Robles, 30, was sentenced to 71 months in federal prison. He also pleaded guilty to one count of possession with intent to distribute 500 grams or more of cocaine and aiding and abetting.
According to court documents, on August 11, 2016, a Texas Department of Public Safety Trooper stopped a SUV for speeding and following to close. The Trooper noticed that the driver, later identified as Robles, took an abnormal amount of time to stop once the Trooper initiated the traffic stop. Upon making contact with Robles and the passenger, who was later identified as Rodriguez, the Trooper noticed indicators of possible criminal activity.
While the Trooper was in the process of issuing Robles a warning for the two traffic violations, he noticed inconsistencies between Robles’ and Rodriguez’ stories about their trip. The Trooper asked Robles for consent to search his vehicle, and Robles refused. The Trooper then asked Robles and Rodriguez to wait on the roadside while he waited for a narcotics detection canine unit. The narcotics detection canine conducted a free-air sniff of Robles’ vehicle, and the canine alerted to the presence of narcotics in Robles’ vehicle. Based on the canine’s alert to the presence of narcotics, the Trooper searched the vehicle. During the search, the Trooper observed a carpeted box that, based on his training and experience, he knew to be used to smuggle narcotics and currency. Both Rodriguez and Robles were immediately handcuffed and placed under arrest. Robles told the Trooper how to open the compartment. Two bundles were located in the compartment. A field test of the substance in the bundles yielded a positive result for the presence of cocaine, a Schedule II controlled substance.
The suspected cocaine was confirmed to be cocaine with a net weight of 1,995 grams.
The Drug Enforcement Administration and Texas Department of Public Safety investigated. Assistant U.S. Attorney Joshua Frausto prosecuted the case.
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Amarillo Man Admits Possessing Prepubescent Child PornographyRead the Press Release
AMARILLO, Texas — James Kenny Crawley, 60, of Amarillo, Texas, appeared today in federal court before U.S. District Judge Sidney A. Fitzwater and pleaded guilty to one count of possession of prepubescent child pornography, announced John Parker, U.S. Attorney for the Northern District of Texas.
Crawley, who is on bond, faces a maximum statutory penalty of 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. Sentencing will be set at a later date.
According to documents filed in the case, Crawley used a laptop computer at his residence to search the Internet for images and videos of child pornography. In the course of searching for this material, Crawley located, downloaded and viewed approximately 5,000 images and over 100 videos constituting child pornography, and some of those images involved prepubescent minors engaging in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Ochiltree County Sheriff’s Office, Texas Rangers and Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Joshua Frausto is in charge of the prosecution.
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Aggravated Felon Sentenced for Attempting to Re-Enter United StatesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, announced today that Alfredo S. DePina, 27, who was convicted of attempting to reenter the United States after having been deported subsequent to a conviction for an aggravated felony, was sentenced to 16 months in prison by U.S. District Judge Lawrence J. Vilardo. DePina is a citizen of Cape Verde, an archipelago located about 400 miles off the western coast of Africa.
Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that on August 23, 2016, the defendant attempted to enter the United States from Canada at the Amtrak Train Station, Niagara Falls Port of Entry. DePina presented identification to a U.S. Customs and Border Protection Enforcement Officer who conducted a primary electronic name query. The query and a subsequent fingerprint match confirmed that the defendant had been previously deported from the United States in August 2010 and barred for life after he was convicted in Massachusetts of inducing a person under 18 to have sexual intercourse.
The sentencing is the result of an investigation by the United States Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
21 Defendants Plead Guilty to Racketeering Related to Murphy VillageRead the Press Release
Contact Person: Jim May (803) 929-3000
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Hannah Carroll, Rose M. Mulholland, Kim Mulholland, Caroline Sherlock, Catherine Carroll, Anthony Carroll, Johnny M. Sherlock, Mary Rita Sherlock, Jimmy Gorman, Leslie Gorman, Leslie Ann Sherlock, Jimmy J. Carroll, Mary Costello, Mary Gorman Carroll, Renee Carroll, Rose S. Mulholland, Susan Sherlock, Tommy Sherlock, William Carroll, and Johnny Mack, all of North Augusta, South Carolina, as well as Angela Askew, of Augusta, Georgia, have entered guilty pleas in federal court in Columbia, to Conspiracy to Commit Racketeering (RICO), a violation of 18 U.S.C. § 1962(d). United States District Judge J. Michelle Childs of Columbia accepted the guilty pleas and will impose sentences after she has reviewed the presentence reports which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that the defendants and others agreed, that a criminal enterprise operated in and around North Augusta, South Carolina. This criminal enterprise consists of both residents of an insular group known as Travelers, as well as outsiders that helped those residents. The Travelers live in a defined geographic location of North Augusta that is commonly known as Murphy Village. The Travelers have a particular lifestyle, including a unique language called “Cant,” and are funded largely by illegal schemes. The Travelers and certain outsiders (like car salesmen, insurance agents, and tax preparers) agreed to commit numerous racketeering activities that included mail and wire fraud related to life insurance applications, loan applications, as well as fraud related to government benefits such as food stamps, Medicaid, and tax refunds. Additionally, when the fraud was successful and money came into the group the money was laundered through numerous channels to include structured deposits and withdrawals to avoid reporting requirements.
Ms. Drake stated, “This cooperative investigation between federal, state and local authorities has effectively dismantled a significant component of the complex criminal element operating out of Murphy Village. However, the investigation continues. We want to recognize the tremendous commitment by the local, state and federal authorities to investigate the wide-spread fraud.” United States Attorney Drake thanked the FBI, the United States Marshals Service, IRS Criminal Investigations, the USDA Office of Inspector General-Investigations, the Postal Inspector’s Office, the South Carolina Attorney General’s Medicaid Fraud Unit, the Second Circuit Solicitor’s Office, Aiken County Sheriff’s Office and South Carolina Department of Social Services for all the work their agencies did in the investigation and prosecution.
FBI Special Agent in Charge Alphonso Norris stated: “Today’s pleas go a long way in dismantling a criminal organization that has affected citizens in several states. This was made possible with the cooperation of our federal, state and local partners.”
Kelvin Washington, U.S. Marshal for the District of South Carolina, stated: “Working with numerous federal and local agencies on this case has shown again how cooperation and dedication to protecting the citizens of South Carolina speaks volumes about our judicial system. This case produced many assets which will be forfeited and sold so the victims may receive payment for the fraud they endured. It is with immense appreciation to our partners for the success of this case, the U.S. Marshals are only a small piece of this case, but we know we can all work together to serve the citizens of South Carolina.”
South Carolina Attorney General, Alan Wilson stated “I am pleased with this outcome, but this is certainly not the end. We will continue to work closely with authorities at the local, state and federal levels to bring these individuals to justice and expose this extensive criminal enterprise.”
“Today’s pleas are another example of IRS-CI’s dedication to bringing individuals to justice who engage in helping taxpayers evade their tax obligations,” said Acting Special Agent in Charge Michael C. Daniels. “We will continue to vigorously pursue both taxpayers who avoid paying their fair share and the unscrupulous professionals who facilitate their actions.”
The maximum penalty for Conspiracy to Commit Racketeering is imprisonment for 20 years and/or a fine of $250,000.
The case was investigated by agents of the FBI, the United States Marshals Service, IRS Criminal Investigations, the USDA Office of Inspector General-Investigations, the Postal Inspector’s Office, the South Carolina Attorney General’s Medicaid Fraud Unit, the Second Circuit Solicitor’s Office, Aiken County Sheriff’s Office and South Carolina Department of Social Services. Assistant United States Attorneys Jim May and Jay Richardson of Columbia and Rhett Dehart of Charleston are prosecuting the case.
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Monday 27 February 2017
Wheeling Island man sentenced for heroin distributionRead the Press Release
WHEELING, WEST VIRGINIA – Sean David Burt, 33, of Wheeling, West Virginia, was sentenced today to 120 months incarceration for distributing heroin, Acting U.S. Attorney Betsy Steinfeld Jividen announced.
Burt sold heroin in Ohio County from June 15 to June 30, 2016. Burt pled guilty to one count of “Conspiracy to Distribute Heroin” in December 2016.
Assistant U.S. Attorney Randolph J. Bernard prosecuted the case on behalf of the government. The Ohio Valley Drug & Violent Crime Task Force, a HIDTA-funded initiative, and the Belmont County Drug Task Force investigated.
U.S. District Judge John Preston Bailey presided.
Waltham Man Pleads Guilty to Child PornographyRead the Press Release
BOSTON – A Waltham man pleaded guilty today in U.S. District Court in Boston to possession of child pornography.
Christopher J. Sullivan, 20, pleaded guilty to one count of possession of child pornography after being arrested and charged in May 2016. U.S. District Court Senior Judge Mark L. Wolf scheduled sentencing for May 23, 2017.
In January 2016, federal agents in Portland, Ore., received information that a minor boy had been engaging in online sexually explicit conversation with an adult man living in Waltham, Mass. Following an investigation, a federal search warrant was issued for a residence in Waltham in May 2016. During the execution of the search warrant, law enforcement officers recovered a number of devices, later determined to belong to Sullivan. These devices, which Sullivan later admitted to possessing, contained multiple images and videos depicting children engaging in sexually explicit conduct. A forensic analysis revealed that the majority of the children depicted in the pictures and videos were between the ages of 7 and 12 years old.
The charging statute provides for no greater than 20 years in prison, a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The Waltham Police Department assisted with the investigation. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit prosecuted the case.
U.S. Attorney Settles Civil Rights Lawsuit to Allow Tenant to Keep an Assistance AnimalRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States has simultaneously filed and settled a civil rights lawsuit against Friedman Residence, LLC, Breaking Ground, and The Actors Fund of America, for violating the Fair Housing Act. Specifically, the lawsuit alleges that Friedman Residence, LLC, Breaking Ground, and The Actors Fund of America discriminated against a tenant (the “Tenant”) of the Dorothy Ross Friedman Residence (the “Friedman Residence”), by failing to permit a reasonable accommodation of the Tenant’s psychiatric disability. The consent decree was approved on February 24, 2017, by U.S. District Court Judge P. Kevin Castel.
U.S. Attorney Preet Bharara said: “This is yet another lawsuit brought to enforce the rights of tenants with disabilities to live with assistance animals. Through this settlement, Friedman Residence, LLC, Breaking Ground, and The Actors Fund of America will improve housing accessibility for all residents of the Dorothy Ross Friedman Residence.”
As alleged in the Complaint filed in federal court:
Friedman Residence, LLC, Breaking Ground, and The Actors Fund of America are the owner, manager, and sponsor of the Friedman Residence, which provides supportive housing in shared and single-occupancy apartments to special low-income groups, including seniors, working professionals, and persons living with HIV/AIDS. The Friedman Residence has a “no pet” policy.
The Tenant shared an apartment at the Friedman Residence, and has a psychiatric disability. In February 2013, the Tenant asked that the Friedman Residence grant him a reasonable accommodation to live with an emotional support dog that alleviates the symptoms of his disability. The Tenant provided a letter from his long-time therapist explaining that the emotional support dog was a “necessary form of support” for him. Despite the Tenant’s request for a reasonable accommodation, the Friedman Residence served him with a Notice of Termination and a petition seeking a final judgment of eviction.
Under the consent decree approved on February 24, 2017, Friedman Residence, LLC, Breaking Ground, and The Actors Fund of America will adopt a new reasonable accommodation policy regarding assistance animals that is incorporated into the consent decree. Friedman Residence, LLC, Breaking Ground, and The Actors Fund of America have further agreed to comply with certain notice, training, and recordkeeping requirements to ensure that their employees are knowledgeable about and comply with the requirements of the Fair Housing Act, and to allow the United States to monitor compliance with the consent decree. In addition, Friedman Residence, LLC, Breaking Ground, and The Actors Fund of America have agreed to pay the Tenant $20,000 in compensatory damages and to place the Tenant on the waitlist for a single-occupancy apartment at the Friedman Residence.
Mr. Bharara thanked HUD for its efforts in the investigation.
The case is being handled by the Office’s Civil Rights Unit. Assistant United States Attorney Talia Kraemer is in charge of the case.
U.S. Attorney Olson resigns; acting U.S. Attorney appointedRead the Press Release
BOISE – Wendy J. Olson, United States Attorney for the District of Idaho, resigned effective Saturday, February 25, 2017. U.S. Attorney Olson had served in that office since June 2010. She had been an Assistant United States Attorney with the District of Idaho since 1997.
As of February 26, 2017, Rafael M. Gonzalez, Jr., assumed leadership of the office as Acting United States Attorney. Mr. Gonzalez has been the First Assistant United States Attorney since September of 2010. He had previously served as the office’s criminal chief. He has been with the office since March of 1995 and with the Department of Justice since September of 1991.
“As United States Attorney for the District of Idaho since 2010, Wendy Olson has been an indispensable and collaborative law enforcement partner in Idaho,” said Mr. Gonzalez. “Her efforts reflected the highest traditions of the Department of Justice and the U.S. Attorney community. We thank Wendy for her tireless work on behalf of the District of Idaho and the American people over the last 20 years, and we wish her the very best as she begins the next chapter of her distinguished career.”