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Thursday 16 February 2017
Fort Worth Man Sentenced to 50 Years in Federal Prison for Producing, Transporting and Possessing Child PornographyRead the Press Release
FORT WORTH, Texas —Pedro Jose Meza, 35, of Fort Worth, Texas, was sentenced today by U.S. District Judge Terry R. Means to serve a total of 50 years in federal prison and a lifetime of supervised release, following his guilty plea to two child pornography offenses, announced U.S. Attorney John Parker of the Northern District of Texas.
Meza has been in custody since his arrest on a related federal criminal complaint in early November 2015. He pleaded guilty in July 2016 to one count of production of child pornography and one count of distribution of child pornography.
According to the factual resume filed in the case, in June 2014 Meza knowingly did employ, use, persuade and induce a six-year-old minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct. Meza produced the image at a Fort Worth home he was living at with the minor child and her mother.
On a separate occasion in October 2015 Meza used the internet and the Kik messaging application to distribute a one minute, thirty-one second video of an adult male engaging in sexual intercourse with a prepubescent female.
Meza was approached at his work in Fort Worth, Texas by Homeland Security Investigations agents on November 5, 2015 in connection with a child pornography investigation. Meza acknowledged that he had traded child pornography using Kik messaging.
These cases were brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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.”
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Aisha Saleem prosecuted the case.
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Former Systems Administrator Sentenced to Prison for Hacking into Industrial Facility Computer SystemRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today that BRIAN P. JOHNSON, age 44, of Baton Rouge, Louisiana, has been sentenced to serve thirty-four (34) months in federal prison, as a result of his conviction for hacking into the computer system of an industrial facility to disrupt and damage its operations, in violation of Title 18, United States Code, Section 1030(a)(5)(A). Chief U.S. District Judge Brian A. Jackson ordered JOHNSON to pay restitution to Georgia-Pacific in the amount of $1,134,828, pay a $100 special assessment to the United States, and forfeit a variety of computer devices and accessories used in connection with his crime. Additionally, following his release from prison, JOHNSON will be required to serve a 3-year term of supervised release.
Georgia-Pacific is one of the world’s largest manufacturers of paper, pulp, tissue, packaging, building materials, and related chemicals. The company is headquartered in Atlanta, Georgia, and employs approximately 35,000 people in more than 200 facilities nationwide. One of Georgia-Pacific’s facilities is located in Port Hudson, Louisiana, and the Port Hudson mill operates 24 hours a day, making paper, tissue, and paper towels. JOHNSON worked for many years as the facility’s information technology (IT) specialist and systems administrator. On February 14, 2014, JOHNSON’s employment was terminated, and he was escorted from the mill. After being terminated, however, JOHNSON remotely accessed the plant’s computer system and intentionally transmitted code and commands which resulted in significant damage to Georgia-Pacific and its operations.
On February 27, 2014, the Federal Bureau of Investigation executed a search warrant at JOHNSON’s home in Zachary, Louisiana, and observed a virtual private network connection to Georgia-Pacific on JOHNSON’s computer screen. Agents lawfully seized JOHNSON’s computer, pursuant to the warrant, and a subsequent forensic examination of the computer revealed logs of JOHNSON’s February 27, 2014 intrusion into the facility’s system.
On June 25, 2015, a federal grand jury returned an indictment charging JOHNSON with intentionally damaging protected computers at Georgia-Pacific, from February 14, 2014 through February 27, 2014.
On February 4, 2016, JOHNSON pled guilty to the indictment before Chief Judge Jackson. In connection with his guilty plea, JOHNSON admitted that he had accessed the plant’s computer system and intentionally transmitted harmful code and commands to the system.
On February 15, 2017, JOHNSON appeared for sentencing. After hearing arguments from both parties, Chief Judge Jackson determined that the evidence established that JOHNSON had not only committed the February 27, 2014 intrusion, but in fact a series of intrusions, beginning shortly after his termination on February 14, 2014 and continuing through the federal search. Chief Judge Jackson also determined that JOHNSON’s criminal conduct caused a loss to Georgia-Pacific of more than $1.1 million, and JOHNSON was ordered to pay restitution for the full amount of the victim’s damages. JOHNSON was ordered to surrender to the U.S. Bureau of Prisons to begin serving his nearly three-year prison term next month.
U.S. Attorney Green stated: “This case is a powerful reminder of the very real threat and danger that businesses and individuals face from cyberattacks and other cyber-related criminal activity. Thanks to the victim’s quick response and cooperation with our office and the FBI—as well as the excellent work by the prosecutors and law enforcement agents assigned to this matter—we were able to stop Mr. Johnson’s malicious attacks and bring him to justice. The best defense to these sorts of attacks includes security, training, and continued vigilance at the facility level. However, through my office’s new Cyber Security Initiative, we have partnered with numerous federal, state, and local law enforcement agencies who have the skills and expertise to confront these threats in our district, and we will aggressively work with our partners to pursue federal criminal prosecutions whenever appropriate.”
FBI New Orleans Special Agent in Charge (SAC) Jeffrey Sallet stated: “I would like to commend the men and women of the FBI's New Orleans Division’s Cyber Squad Task Force and the U.S. Attorney’s Office in Baton Rouge for their outstanding efforts in investigating this case to the fullest extent and bringing the responsible parties to justice. Combatting cyber crime is among the FBI’s top priorities due to its evolving nature and the direct threat it poses to Louisiana infrastructure.”
United States v. Brian Johnson was investigated by the Federal Bureau of Investigation’s Cybercrimes Squad. The case is being prosecuted by Assistant U.S. Attorney M. Patricia Jones, who serves as the office’s Appellate Chief, and Assistant U.S. Attorney Ryan Crosswell.
The U.S. Attorney’s Office—Cyber Security Initiative
In early 2016, the U.S. Attorney’s Office for the Middle District of Louisiana launched a new Cyber Security Initiative. The initiative brings together resources from the U.S. Department of Justice’s Computer Crimes and Intellectual Property Section, the Federal Bureau of Investigation’s Cyber Division, the U.S. Secret Service, the U.S. Department of Homeland Security, the U.S. Department of Treasury (including both the Internal Revenue Service’s Criminal Investigations Division and the Treasury Inspector General for Tax Administration), the U.S. Department of Education, the Louisiana State Police, the East Baton Rouge Parish Sheriff’s Office, the East Baton Rouge Parish District Attorney’s Office, and other federal, state, and local agencies.
Through a newly-created law enforcement working group, the initiative assembles agents and other personnel from across Louisiana and the region to assess and share information about incoming reports of cyber incidents affecting the Middle District, and evaluate law enforcement’s response. The initiative also includes a significant investment in outreach aimed at fostering greater collaboration between private industry and law enforcement and encouraging immediate reporting of cyber incidents. Team members routinely contribute to InfraGard Louisiana, a partnership between the FBI and the private sector that works to protect critical infrastructure.
For more information about the U.S. Attorney’s Office’s Cyber Security Initiative, please contact Assistant United States Attorney Alan Stevens, who serves as a Deputy Criminal Chief within the USAO, or Assistant U.S. Attorney Ryan Rezaei, at (225) 389-0443.
For more information about InfraGard Louisiana, please contact FBI Special Agent Corey Harris at (504) 816-3145, or InfraGard Louisiana President Lester J. Millet, III, at (985) 210-7518.
To submit any information to the FBI concerning suspected internet-facilitated criminal activity, please visit the website for the FBI’s Internet Crime Complaint Center (IC3), www.ic3.gov.
Former St. Croix Resident Indicted on Federal Program Fraud, Money Laundering, and Tax Related ChargesRead the Press Release
St. Thomas, USVI – A Virgin Islands grand jury, on January 12, 2017, returned a six-count indictment against Celeste P. Bermudez, 41, of Methuen, Massachusetts, charging her with theft of federal program funds, money laundering, and making and subscribing a false income tax return, United States Attorney Ronald W. Sharpe announced. Bermudez made her initial appearance on January 15, 2017, and was arraigned on the charges, before U.S. Magistrate Judge Ruth Miller. Judge Miller set bail conditions for Bermudez, who is on release pending trial.
According to the indictment, Bermudez was the finance director of the Virgin Islands Community AIDS Resource & Education, Inc. (VICARE), a nonprofit organization dedicated to promoting HIV-AIDS education and support services to individuals living with HIV-AIDS. In 2011, the U.S. Department of Housing and Urban Development (HUD) approved approximately $1.3 million in grant funds to VICARE. During the period July 1, 2011, through June 30, 2014, the Department of Health and Human Services (HHS) Centers for Disease Control and Prevention (CDC) awarded VICARE approximately $627,365 in grant funds. Bermudez, is charged with embezzling approximately $293,710 during the period January 2012 through December 2013. The indictment also charges Bermudez with engaging in monetary transactions in financial institutions with the embezzled funds, as well as making and subscribing a false 2011 income tax return.
If convicted, Bermudez faces maximum sentences of ten years in prison and a $250,000 fine for the federal program fraud and money laundering counts, and not more than three years in prison or a $5,000 fine for the tax count.
The case was investigated by HUD Office of Inspector General, HHS Office of Inspector General, and the Internal Revenue Service, Criminal Investigations. It is being prosecuted by Assistant U.S. Attorneys Kim L. Chisholm and Meredith Edwards.
United States Attorney Sharpe emphasized that an indictment is a merely a formal charging document and not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Former Resident of Whidbey Island, Washington Sentenced to Eight Years in Prison for Possessing Images of Child RapeRead the Press Release
A former resident of Clinton, Washington was sentenced today in U.S. District Court in Seattle to eight years in prison and 15 years of supervised release for receipt and possession of child pornography, announced U.S. Attorney Annette L. Hayes. ERIC EUGENE LOBDELL, 48, was arrested in November 2015, following an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigation. LOBDELL’s computer was identified in the investigation of peer-to-peer file sharing involving images of child rape. LOBDELL’s electronic devices were found to contain more than 100,000 images of child pornography including some images LOBDELL made with a hidden camera of young girls changing clothes and using the bathroom. At the sentencing hearing U.S. District Judge Thomas S. Zilly called the conduct “really outrageous behavior by this defendant.”
According to records filed in the case, LOBDELL came to the attention of law enforcement in early 2015 when investigators uncovered child pornography on a peer to peer file sharing network. In June 2015, the investigation resulted in court authorized search warrants being executed at the home where LOBDELL was staying on Whidbey Island, Washington. Investigators seized multiple electronic devices and discovered thousands of images of child pornography. Some of the images were known series of child victims. Others were images LOBDELL made using cameras hidden in bathrooms of homes or hotels where he had lived or traveled. In one instance reviewed by law enforcement LOBDELL adjusts a small child’s clothing to photograph the child for his sexual gratification.
One of the victims speaking in court today said she was “devastated and heartbroken” when she learned someone she trusted had violated that trust. “The person I was meant to be was taken from me… I feel broken, violated and ashamed.”
Investigators believe LOBDELL did not share the photos he made of local victims over the internet, but Judge Zilly made note of the other victims whose images LOBDELL obtained via file sharing saying, “Those victims will be victims forever, because it is on the internet and will be forever.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the Internet Crimes Against Children Task Force including detectives from the Bellingham Police Department.
The case was prosecuted by Assistant United States Attorney Matthew Hampton.
Former Prison Supervisor Convicted of FraudRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a former Colonel at the Louisiana State Penitentiary, SHIRLEY WHITTINGTON, age 46, of St. Francisville, Louisiana, has been convicted of wire fraud. Yesterday, WHITTINGTON pled guilty before U.S. District Judge James J. Brady to engaging in wire fraud, in violation of Title 18, United States Code, Section 1343.
The guilty plea arises from WHITTINGTON’s time as Treasurer of the Angola Employees Recreation Committee (“AERC”), a limited liability company formed to enrich its members through recreational activities and community events. The AERC raised funds from various sources and its finances were subject to internal audits and review.
In connection with her guilty plea hearing, WHITTINGTON admitted to a factual summary which detailed her wire fraud scheme. According to the factual summary, WHITTINGTON served as Treasurer of the AERC from February of 2006 thought June of 2016. Her duties included, among other things, depositing AERC funds, purchasing items and services, approving purchases, check writing, preparing financial statements, account reconciliation, and working with an external accountant for any audit or annual tax filings. In order to facilitate her financial oversight and reporting of AERC funds and purchases, WHITTINGTON maintained a QuickBooks accounting log. She also had signature authority for AERC bank accounts and was issued AERC debit cards.
Between March of 2009 and May of 2016, as part of her scheme to defraud and to obtain money from the AERC, WHITTINGTON diverted organization funds for her own benefit and for the benefit of her associates through online and local retailer purchases, ATM withdrawals, cashback and countercheck transactions, and by removing cash from concession sale deposits. Throughout the course of her scheme, she fraudulently diverted thousands of dollars in AERC funds.
In order to conceal her diversion of AERC funds, WHITTINGTON fraudulently omitted vendor names and designated certain purchases as “misc” or “misc. business expenses” in relevant portions of the AERC QuickBooks log. These material misrepresentations served to disguise her use of AERC funds for her own personal benefit or the benefit of her associates and to create the false impression that these transactions were legitimate business expenses of the AERC.
U.S. Attorney Green stated, “Public corruption has been and will continue to be a top priority for this office. I greatly appreciate the work of the FBI, the Louisiana Legislative Auditor’s Office, the Louisiana Attorney General’s Office, and the other state and local agencies who assisted on this important matter. A unified effort is essential to battling corruption.”
FBI Special Agent in Charge Jeffrey Sallet stated, “Citizens expect that every public official will fulfill their obligations with integrity and respect. The FBI will investigate any public officials who attempt to enrich themselves unjustly by profiting from their position and abusing the trust that others have placed in them.”
Louisiana Legislative Auditor Daryl Purpera stated, “Louisiana's taxpayers want -- and deserve -- public officials and employees who do not use their positions to serve their own interests. We take public corruption very seriously and will continue to work with the U.S. Attorney's Office, the FBI, and state and local law enforcement agencies to stop the misuse of public funds in Louisiana.”
The matter is being handled by the United States Attorney’s Office for the Middle District of Louisiana and the Baton Rouge Office of the Federal Bureau of Investigation, with substantial assistance provided by investigative auditors from the Louisiana Legislative Auditor’s Office. The matter is being prosecuted by Assistant United States Attorney Chris Dippel, who serves as a Deputy Chief of the Criminal Division.
Former Oklahoma Jail Superintendant and Assistant Superintendant Sentenced for Using Excessive ForceRead the Press Release
MUSKOGEE, OKLAHOMA – Raymond A. Barnes, 46, and Christopher A. Brown, 35, the former jail superintendent and assistant jail superintendent, respectively, of the Muskogee County Jail (MCJ), were resentenced in federal court on Feb 15, 2017, on multiple counts of civil rights offenses related to allegations of excessive force on inmates at MCJ on or between August 2009 and May 2011. Brown was also convicted of making material false statements to the FBI. Barnes was sentenced to two years in prison followed by three years of supervised release, and Brown was sentenced to 12 months in prison followed by three years of supervised release.
On Feb. 25, 2014, a federal jury convicted both Barnes and Brown of conspiring to violate the rights of inmates housed at MCJ by assaulting inmates themselves or by directing other jailers employed by MCJ to do so. Specifically, the defendants did or caused the following to be done: unjustifiably strike, assault, harm and physically punish inmates at MCJ who were restrained, compliant and not posing a physical threat; organize “meet and greets,” whereby jailers would scare, punish and harm incoming inmates from neighboring counties by throwing and slamming the handcuffed inmates to the ground upon their arrival at MCJ; threaten to fire MCJ employees if they reported abusive behavior directly to the sheriff or to outside law enforcement authorities; require and encourage MCJ jailers to write incident reports that falsely justified uses of force and contained misleading or inaccurate accounts of what had occurred when force was used; and perpetuate an environment within MCJ that allowed unlawful beatings and assaults against inmates to continue indefinitely and without consequence.
Both defendants were also found guilty of violating the rights of an inmate identified as J.R. when both defendants slammed and threw J.R. head-first to the ground while he was handcuffed. Barnes was additionally convicted of violating the rights of a second inmate, G.T., for similar conduct. Brown was acquitted of violating the rights of G.T.
In addition, Brown was convicted of one count of making material false statements to the FBI. Brown falsely claimed that, during meet and greets, the incoming inmate was ordered out of the transport vehicle and then “gently placed” on the ground. But in fact, Brown knew at the time of his statement to the FBI that during these meet and greets the MCJ jailers routinely threw and slammed inmates to the ground even though the inmates were restrained and posed no physical threat.
“Corrections officers who use excessive force against inmates in their custody are violating the Constitution and their sworn oaths to uphold it,” said Acting Assistant Attorney General Tom Wheeler of the Civil Rights Division. “This department will vigorously enforce the civil rights laws of our nation.”
This case was investigated by the Muskogee Resident Agency of the Oklahoma City Division of the FBI and prosecuted by Special Litigation Counsel Fara Gold and Trial Attorney Dana Mulhauser of the Civil Rights Division.
Florida Man Sentenced for Hacking, Spamming Scheme that Used Stolen Email AccountsRead the Press Release
A Florida man was sentenced for his role in a computer hacking and identity theft scheme that hijacked customer email accounts to send bulk unsolicited or “spam” emails and generated more than $1.3 million in illegal profits, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Paul J. Fishman of the District of New Jersey.
Timothy Livingston, 31, of Boca Raton, Florida, was sentenced Tuesday to serve 48 months in prison before U.S. District Judge William J. Martini of the District of New Jersey. Livingston previously pleaded guilty to one count each of conspiracy to commit fraud in connection with computers and access devices, conspiracy to commit fraud in connection with electronic mail and aggravated identity theft.
According to admissions made in connection with his plea agreement, beginning as early as 2011, Livingston operated A Whole Lot of Nothing LLC – a business that specialized in sending spam emails on behalf of its clients. Livingston’s clients included legitimate businesses, such as insurance companies that wished to send bulk emails to advertise their businesses, as well as illegal entities, such as online pharmacies that sold narcotics without prescriptions.
As part of his plea, Livingston admitted that beginning in January 2012, he solicited Tomasz Chmielarz to write computer programs that would send spam in a manner that concealed the true origin of the email and bypassed filters. Livingston also used proxy servers and botnets to remain anonymous and evade spam blocking techniques. Livingston further admitted that he hacked into individual email accounts and utilized corporate mail servers to further his spam campaigns, which enabled him to send out massive amounts of spam without identifying himself as the sender.
The FBI’s Cyber Division investigated the case. Senior Trial Attorney William Hall Jr. of the Computer Crime and Intellectual Property Section, Assistant U.S. Attorney Daniel Shapiro of the District of New Jersey’s Computer Hacking and Intellectual Property Section of the Economic Crimes Unit, and Assistant U.S. Attorney Sarah Devlin of the Asset Forfeiture-Money Laundering Unit prosecuted the case.
Florida Man Sentenced to Four Years in Prison for Hacking, Spamming Scheme That Used Stolen Email AccountsRead the Press Release
NEWARK, N.J. – A Boca Raton, Florida man was sentenced to 48 months in prison for his role in a computer hacking and identity theft scheme that hijacked customer email accounts to send bulk unsolicited or “spam” emails and generated more than $1.3 million in illegal profits, New Jersey U.S. Attorney Paul J. Fishman and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division announced today.
Timothy Livingston, 31, previously pleaded guilty before U.S. District Judge William J. Martini to one count each of conspiracy to commit fraud in connection with computers and access devices, conspiracy to commit fraud in connection with electronic mail, and aggravated identity theft. Judge Martini imposed the sentence Feb. 14, 2017 in Newark federal court.
According to documents filed in this case and statements made in court:
Beginning as early as 2011, Livingston operated A Whole Lot of Nothing LLC – a business that specialized in sending spam emails on behalf of its clients. Livingston’s clients included legitimate businesses, such as insurance companies that wished to send bulk emails to advertise their businesses, as well as illegal entities, such as online pharmacies that sold narcotics without prescriptions.
Beginning in January 2012, Livingston solicited Tomasz Chmielarz, 34, of Rutherford, New Jersey, to write computer programs that would send spam in a manner that concealed the true origin of the email and bypassed filters. Livingston also used proxy servers and botnets to remain anonymous and evade spam blocking techniques.
Livingston hacked into individual email accounts and utilized corporate mail servers to further his spam campaigns. For instance, Livingston and Chmielarz created custom software designed to hack into the customer email accounts of a company identified in the indictment as “Corporate Victim 1” so that those accounts could then be used to send out spam. By using proxy servers and Corporate Victim 1’s customer accounts, Livingston was able to send out massive amounts of spam without identifying himself as the sender.
Livingston and Chmielarz also created custom software that appropriated a corporate website, identified in the indictment as “Corporate Victim 2,” which allowed Livingston to use Corporate Victim 2’s servers to send spam that appeared to be from Corporate Victim 2, but in reality was transmitted by Livingston.
In addition to the prison term, Judge Martini sentenced Livingston to three years of supervised release.
U.S. Attorney Fishman and Acting Assistant Attorney General Blanco credited special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Daniel Shapiro of the Computer Hacking and Intellectual Property Section of the Economic Crimes Unit in Newark, Senior Trial Attorney William Hall of the Department of Justice’s Criminal Division Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Sarah Devlin of the Asset Forfeiture-Money Laundering Unit in Newark.
Defense counsel: Lorraine Gauli-Rufo Esq., Verona, New Jersey
Florida Man Indicted in Tax Refund Fraud SchemeRead the Press Release
Used Illegal Proceeds to Buy Property and Gold Coins
A federal grand jury sitting in Ft. Myers, Florida returned an indictment on Feb. 15, which was unsealed today, charging a Lee County, Florida resident with mail fraud, money laundering, and corruptly endeavoring to impede the administration of the internal revenue laws, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney A. Lee Bentley III for the Middle District of Florida.
According to the indictment, Attila Kalmar filed 2007 through 2009 trust returns with the Internal Revenue Service (IRS) in the name of First AK-Open Sec Trust, a nominee entity, seeking more than $480,000 in fraudulent refunds. Kalmar deposited a refund check he received as a result of these filings into a bank account, and then used the proceeds to purchase real property, acquire thousands of dollars in gold coins, and wire money overseas. The indictment further alleges that Kalmar attempted to impede the internal revenue laws by transferring funds between nominee bank accounts and falsely representing to the IRS that an IRS revenue officer was the trustee for First AK-Open Sec Trust.
An indictment merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Kalmar faces a statutory maximum sentence of 20 years in prison for each mail fraud count, 10 years in prison for each money laundering count, and three years in prison for corruptly endeavoring to impede the administration of the internal revenue laws. Kalmar also faces a period of supervised release, restitution, forfeiture, and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Bentley commended special agents of IRS–Criminal Investigation and Treasury Inspector General for Tax Administration (TIGTA), who conducted the investigation, and Trial Attorneys Kathryn A. Kimball and William M. Montague of the Tax Division and Assistant U.S. Attorney Michael C. Baggé-Hernández of the Middle District of Florida, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Kalmar IndictmentFive Sentenced in Drug Trafficking ConspiracyRead the Press Release
PANAMA CITY, FLORIDA – Five defendants were sentenced today on drug and firearm-related crimes, as well as conspiring to distribute and possess with intent to distribute five kilograms or more of cocaine. The sentences were announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The defendants and sentences are as follows:
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Thomas Zachary Breeding, 33, of Panama City, Florida, 72 months in prison;
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Benjamin Bailey McGraw, 37, of Smyrna, Georgia, 180 months;
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Jeremy Patrick Hubbard, 32, of Panama City Beach, Florida, 96 months;
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Richard Kenneth Helms Jr., 43, of Panama City Beach, 48 months; and
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Jessica Renee Ashbaker, 32, of Panama City Beach, 12 months.
In addition to the conspiracy charge, the defendants pled guilty to the following charges:
- Possession of a firearm as a convicted felon: Breeding and Hubbard;
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Possession with intent to distribute the controlled substance alprazolam: McGraw;
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Possession of a firearm in furtherance of drug trafficking: McGraw and Hubbard; and
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Possession with intent to distribute 500 grams or more of Cocaine: Helms and Ashbaker
In early June 2016, Breeding acquired approximately 20 kilograms of cocaine and then divided it among himself, Helms, Ashbaker, and McGraw to sell. On June 25, 2016, law enforcement officers stopped Breeding’s vehicle and arrested him after discovering cocaine and a firearm in his vehicle. On June 29, McGraw and Hubbard planned to obtain an additional 5 kilograms of cocaine from Breeding in Panama City Beach. When Hubbard arrived at the scheduled meeting place, he possessed approximately $20,000 in cash and a loaded firearm in his vehicle. He was arrested. While Hubbard went to meet Breeding, McGraw waited at a nearby motel room. McGraw was arrested at the motel. In the motel room, law enforcement officers seized a cocaine press, approximately 800 alprazolam tablets, a loaded firearm, and drug paraphernalia. On July 8, law enforcement officers seized approximately 2 and 1/2 kilograms of cocaine and approximately $33,000 in cash from Helms’s and Ashbaker’s residence.
This case resulted from an investigation by the Drug Enforcement Administration (DEA), the Florida Department of Law Enforcement (FDLE), the Walton County Sheriff’s Office, the Jackson County Sheriff’s Office, and the Panama City Police Department. Assistant United States Attorney Edwin Knight prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]-
Father and Son Sentenced in Manhattan Federal Court for Market Manipulation SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JOHN GALANIS and his son DEREK GALANIS were each sentenced today to six years in prison for manipulating the market for Gerova Financial Group, Ltd. (“Gerova”), a publicly traded company listed on the New York Stock Exchange, and defrauding the shareholders of that company. JOHN GALANIS and DEREK GALANIS each pled guilty to one count of conspiracy to commit securities fraud and one count of securities fraud, on July 20, 2016, and August 15, 2016, respectively. Both were sentenced today by United States District Judge P. Kevin Castel.
U.S. Attorney Preet Bharara said: “John and Derek Galanis conspired to have more than $70 million worth of stock issued, hiding Jason Galanis’s control of those shares, so that they could cash out at the expense of unwitting victim investors. Today, they have been sentenced to prison for their securities fraud.”
According to the allegations contained in the Indictment filed against JOHN GALANIS, DEREK GALANIS, and their co-conspirators, and statements made in related court filings and proceedings:
The Gerova Scheme
From 2009 to 2011, JOHN GALANIS, DEREK GALANIS, and co-conspirators Jason Galanis, Gary Hirst, Ymer Shahini, and Gavin Hamels, engaged in a scheme to defraud the shareholders of Gerova, and the investing public, by effecting securities transactions in Gerova stock for the purpose of conferring millions of dollars of undisclosed remuneration on the co-conspirators, without adequate disclosure of Jason Galanis’s role in directing the transactions or the benefits received by Jason Galanis and his co-conspirators.
As a part of the scheme to defraud, Jason Galanis obtained sufficient control over Gerova to be able to cause Gerova to enter into transactions of his design, and for his benefit, including the issuance of Gerova stock. Jason Galanis obtained this control without causing himself to be identified as an officer or director of Gerova in order to appear to abide by an SEC-imposed bar that forbade him from holding such positions at publicly traded companies. Among other means and methods, Jason Galanis, with the assistance of Hirst, caused over five million shares of Gerova stock, which represented nearly half the company’s public float and which were intended for Jason Galanis’s ultimate benefit, to be issued to and held in the name of Ymer Shahini, who knowingly served as a foreign nominee for Jason Galanis. DEREK GALANIS recruited his longstanding friend Shahini to the scheme, telling Shahini in an email, “All we need is a foreign national we trust which is where you come in my friend.” DEREK GALANIS, JOHN GALANIS, Jason Galanis, Hirst, and Shahini understood that the purpose of the stock grant to Shahini was to disguise Jason Galanis’s ownership interest in the stock, and to evade the SEC’s regulations for issuing unregistered shares of stock.
At the same time, and as a further part of the scheme to defraud, JOHN GALANIS, with the assistance of DEREK GALANIS and the knowledge and approval of Jason Galanis, opened and managed brokerage accounts in the name of Shahini (the “Shahini Accounts”), effected the sale of Gerova stock from the Shahini Accounts, and received and concealed the proceeds, knowing that this activity was designed to conceal from the investing public Jason Galanis’s ownership of and control over the Gerova stock.
Jason Galanis, among others, also fraudulently induced investment advisers, including Gavin Hamels, to purchase shares of Gerova stock in the investment advisers’ client accounts by offering compensation and/or other benefits to the respective investment adviser. JOHN GALANIS and Jason Galanis thereafter coordinated the purchase of Gerova stock at the time, quantity, and/or price of their choosing, thus effectuating the sale of large quantities of Gerova stock from the Shahini Accounts while artificially maintaining the price of Gerova stock through match trading. Such coordinated trading served to manipulate the market for Gerova stock and deceive the investing public. In total, JOHN GALANIS, DEREK GALANIS, Jason Galanis, and their co-conspirators sold nearly $20 million worth of Gerova shares from the Shahini accounts for their own benefit.
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In addition to the prison terms, JOHN GALANIS, 73, and DEREK GALANIS, 44, were each sentenced to three years of supervised release, and each ordered to forfeit $19,038,650.53. Judge Castel will set a restitution amount for each at a future proceeding.
Jason Galanis, who pled guilty to two counts of conspiracy to commit securities fraud, one count of securities fraud, and one count of investment adviser fraud, was sentenced to a term of 135 months in prison on February 15, 2017. Jared Galanis, who pled guilty to misprision of a felony, was sentenced to a term of 150 days in prison on January 11, 2017. Gary Hirst, who was found guilty after trial of conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, and wire fraud, is scheduled to be sentenced on March 17, 2017. Defendant Ymer Shahini remains a fugitive. The allegations contained in the Indictment as to Shahini are merely accusations, and he is presumed innocent unless and until proven guilty.
Mr. Bharara praised the work of the U.S. Postal Inspection Service and the Federal Bureau of Investigation, and thanked the SEC.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Brian Blais, Aimee Hector, and Rebecca Mermelstein are in charge of the prosecution.
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Epsom Man Sentenced to 21 Months in Prison for Misusing Another's Social Security NumberRead the Press Release
CONCORD, N.H. – Gordon Daigle a/k/a Gordon Hill, 38, of Epsom, was sentenced to 21 months in prison for misusing a Social Security number, announced United States Attorney Emily Gray Rice.
According to court documents and statements made in court, on April 6, 2015, Daigle applied for a New Hampshire Non-Driver Identification Card using another person’s name, date of birth, and Social Security number. He produced a Social Security card and a birth certificate in the other person’s name with his application to the Department of Motor Vehicles as means of identification. On May 23, 2016, Daigle was apprehended by the New Hampshire Joint Fugitive Task Force as a result of warrants issued by the Wyoming Board of Parole and the New Hampshire Department of Corrections Parole Board for parole violations. He provided Task Force officers with the other person’s name, and he was in possession of the New Hampshire Non-Driver Identification Card issued in the other person’s name, but bearing his picture, and the matching Social Security card when he was taken into custody. Fingerprint analysis confirmed that the individual arrested by the Joint Fugitive Task Force was Daigle.
Daigle, who pleaded guilty on October 24, 2016, will serve three years of supervised release after he is released from custody.
The case was investigated by the Social Security Administration’s Office of the Inspector General and the United States Marshal’s Service, and prosecuted by Special Assistant United States Attorney Karen Burzycki.
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Eight with ties to Heartless Felons street gang charged for interstate robbery conspiracyRead the Press Release
Arrest warrants were issued for eight people on federal charges of interstate transportation of stolen property and conspiracy, said FBI Special Agent in Charge Stephen D. Anthony, Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and Calvin Williams, Chief, Cleveland Division of Police.
Adolph Boyd III, 24, Tyron Hicks, 30, and Jerome Goins, 21, were taken into custody by FBI agents and detectives from the Cleveland Police Department’s Gang Impact Unit without incident early this morning.
Padra Graves, 35, Delante Hudson-Frost, 22, Dennis McKenzie, 20, and Darnell Foster, 20, were already incarcerated and were transferred into federal custody this morning.
Law enforcement is asking the public for information leading to the location of Melvin Swinney, 21.
All eight individuals are from the Cleveland area. However, Graves was incarcerated in Columbus and will be transported to the Cleveland area next week.
From April to July 2016, members of this conspiracy traveled to nine states on 18 occasions to steal cell phones and other electronic devices by breaking into retail stores and kiosks with pry bars either just prior to closing or after closing. These individuals would then return to Cleveland with the stolen property, according to a criminal complaint unsealed today.
- the stolen devices were in Cleveland, they would be sold to gas stations or phone stores and then sold either out-of-state or overseas. It is believed the loss and damages amount exceeds $500,000, according to the complaint.
These individuals will appear in Judge Greenberg’s court room this afternoon for their initial appearance.
Any questions regarding this news release can be directed to SA Vicki D Anderson at the Cleveland Office of the FBI, 216-522-1400 or [email protected].
Conway Man Arrested by the FBI on Federal Gun ChargeRead the Press Release
Contact Person: Lance Crick (864) 282-2105
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Benjamin Thomas Samuel McDowell, age 29, of Conway, South Carolina, appeared before a federal magistrate judge this morning in Florence, South Carolina, for an initial appearance following his arrest last night in Myrtle Beach by the FBI. McDowell was arrested for a violation of possession of a firearm and ammunition by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1).
A preliminary hearing and a detention hearing for McDowell have been calendared for Tuesday, February 21, 2017 at 2:30pm at the McMillan Federal Building in Florence, South Carolina. McDowell remains in custody. The case is being investigated by the FBI, the Horry County Police Department, and the Myrtle Beach Police Department.
U.S. Attorney Drake stated that all charges are merely accusations and all defendants are presumed innocent until and unless proven guilty.
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Citizen of Poland Sentenced for Illegal Entry into United StatesRead the Press Release
ALBANY, NEW YORK – Emil Michalczuk, age 25, of Siemiatycze, Poland, was sentenced today to 20 days in jail following his guilty plea to a misdemeanor charge of illegally entering the United States.
The announcement was made by United States Attorney Richard S. Hartunian and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
Michalczuk admitted that he walked across the border approximately a half-mile west of the Overton Corners Port of Entry on New York State Route 276, and continued southwest on foot until he reached the Rouses Point train station, where he was arrested by Border Patrol agents.
Upon the completion of his sentence, Michalczuk will be transferred to the custody of the Department of Homeland Security and he will be subject to removal proceedings.
This case was investigated by the United States Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Chinese Citizen Pleads Guilty to Structuring Cash TransactionsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, DA YING, 56, of Beijing, China, waived his right to be indicted and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to engaging in a pattern of financial transactions to evade reporting requirements.
According to court documents and statements made in court, between April 2011 and March 2012, while he was a resident of Farmington, Conn., YING structured or caused to be structured 50 cash deposits in amounts less than $10,000.01 into his and his wife’s six accounts at four banks in Connecticut. The cash deposits, which totaled $464,400, were frequently made on the same day at different banks or on sequential days at the same or different banks. YING knew that banks were required to issue a report for a currency transaction in excess of $10,000, and his structuring activity was intended to evade the transaction reporting requirements.
Federal law requires all financial institutions to file a Currency Transaction Report (“CTR”) for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000. Structuring involves the repeated depositing or withdrawal of amounts of cash less than the $10,000.01 limit, or the splitting of a cash transaction that exceeds $10,000 into smaller cash transactions in an effort to avoid the reporting requirements. Even if the deposited funds are derived from a legitimate means, financial transactions conducted in this manner are still in violation of federal criminal law.
Judge Underhill scheduled sentencing for May 11, 2017, at which time YING faces a maximum term of imprisonment of 10 years and a fine of up to $500,000. YING was released pending sentencing.
As part of the resolution of this case, YING agreed to the civil forfeiture of $175,938 of the money he structured in Connecticut. He also agreed to pay the Internal Revenue Service $113,195 in unpaid federal taxes, plus penalties and interest for 2009, 2010 and 2011.
This matter has been investigated by the Internal Revenue Service – Criminal Investigation Division and Homeland Security Investigations, with the assistance of the Hartford and Stamford Police Departments. The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
Chattanooga Man Convicted of Solicitation to Burn Down a Mosque in Islamberg, New YorkRead the Press Release
A federal jury today convicted Robert Doggart, 65, of Signal Mountain, Tennessee, of soliciting another person to violate federal civil rights laws by burning down a mosque in Islamberg, a hamlet outside Hancock, New York, announced Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division and United States Attorney Nancy Stallard Harr of the Eastern District of Tennessee. Doggart also was found guilty of soliciting another person to commit arson and two counts of threatening to destroy a building by fire or an explosive.
Evidence presented at trial established that between February and April of 2015, the defendant planned an armed attack on Islamberg, which is a community that is home to a large Muslim population. Doggart’s plans included burning down a mosque, a school and a cafeteria in the community. He also solicited others to join in his planned attack through Facebook posts, telephone conversations and in-person meetings. Doggart specifically targeted the mosque because it was a religious building, and he discussed burning it down or blowing it up with a Molotov cocktail or other explosive device.
“The Defendant sought out others to join him in a violent attack on a community of men, women, and children because of their religion,” said Acting Assistant Attorney General Wheeler. “We thank the jury for their service, and we will continue to vigorously enforce our nation’s laws that protect the ability of people of all faiths to live and worship in peace.”
“Our nation cannot tolerate threats by those who are willing to kill innocent children, women and men who do not share their religious beliefs or philosophy,” said U.S. Attorney Harr. “I am heartened that citizens from Chattanooga, a community that was victimized by domestic terrorism just 18 months ago, chose to condemn the threat of more terroristic acts. The jury carefully and attentively listened to the proof, deliberated cautiously for two days, and reached a verdict that reaffirms our American principles.”
“This conviction is the result of the hard work by the men and women of the FBI and our law enforcement partners,” said Special Agent in Charge Renae McDermott of the Knoxville Division of the Federal Bureau of Investigation. “The coordinated efforts of FBI Knoxville and Columbia, the USAO Eastern District of Tennessee, and DOJ were successful in proactively preventing this individual from carrying out his plans. It is a simple example of the rule of law and right of all citizens to pursue happiness in a safe environment is of paramount importance to law enforcement in the United States.”
At trial, the jury heard recorded phone conversations between Doggart and others, including one call in which Doggart said, “I don’t want to have to kill children, but there’s always collateral damage.” In another call, Doggart described his weapons as intended for killing people and not for hunting game.
The defendant faces a maximum penalty of up to 10 years in prison for each of the four counts of conviction. Sentencing is scheduled for May 31, 2017, before U.S. District Judge Curtis L. Collier of the Eastern District of Tennessee.
The case was investigated by the FBI’s Knoxville Division, and was prosecuted by Civil Rights Division Trial Attorney Saeed A. Mody and Assistant U.S. Attorney Perry H. Piper of the Eastern District of Tennessee.
Chattanooga Man Convicted of Solicitation to Burn Down a Mosque in Islamberg, New YorkRead the Press Release
A federal jury today convicted Robert Doggart, 65, of Signal Mountain, Tennessee, of soliciting another person to violate federal civil rights laws by burning down a mosque in Islamberg, a hamlet outside Hancock, New York, announced Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division and United States Attorney Nancy Stallard Harr of the Eastern District of Tennessee. Doggart also was found guilty of soliciting another person to commit arson and two counts of threatening to destroy a building by fire or an explosive.
Evidence presented at trial established that between February and April of 2015, the defendant planned an armed attack on Islamberg, which is a community that is home to a large Muslim population. Doggart’s plans included burning down a mosque, a school and a cafeteria in the community. He also solicited others to join in his planned attack through Facebook posts, telephone conversations and in-person meetings. Doggart specifically targeted the mosque because it was a religious building, and he discussed burning it down or blowing it up with a Molotov cocktail or other explosive device.
“The Defendant sought out others to join him in a violent attack on a community of men, women, and children because of their religion,” said Acting Assistant Attorney General Wheeler. “We thank the jury for their service, and we will continue to vigorously enforce our nation’s laws that protect the ability of people of all faiths to live and worship in peace.”
“Our nation cannot tolerate threats by those who are willing to kill innocent children, women and men who do not share their religious beliefs or philosophy,” said U.S. Attorney Harr. “I am heartened that citizens from Chattanooga, a community that was victimized by domestic terrorism just 18 months ago, chose to condemn the threat of more terroristic acts. The jury carefully and attentively listened to the proof, deliberated cautiously for two days, and reached a verdict that reaffirms our American principles.”
“This conviction is the result of the hard work by the men and women of the FBI and our law enforcement partners,” said Special Agent in Charge Renae McDermott of the Knoxville Division of the Federal Bureau of Investigation. “The coordinated efforts of FBI Knoxville and Columbia, the USAO Eastern District of Tennessee, and DOJ were successful in proactively preventing this individual from carrying out his plans. It is a simple example of the rule of law and right of all citizens to pursue happiness in a safe environment is of paramount importance to law enforcement in the United States.”
At trial, the jury heard recorded phone conversations between Doggart and others, including one call in which Doggart said, “I don’t want to have to kill children, but there’s always collateral damage.” In another call, Doggart described his weapons as intended for killing people and not for hunting game.
The defendant faces a maximum penalty of up to 10 years in prison for each of the four counts of conviction. Sentencing is scheduled for May 31, 2017, before U.S. District Judge Curtis L. Collier of the Eastern District of Tennessee.
The case was investigated by the FBI’s Knoxville Division, and was prosecuted by Civil Rights Division Trial Attorney Saeed A. Mody and Assistant U.S. Attorney Perry H. Piper of the Eastern District of Tennessee.
Castle Rock Man Convicted of Making False Claims in Attempt to Defraud Department of Argiculture's Finance OfficeRead the Press Release
DENVER – Gunther Glaub, age 56, of Castle Rock, Colorado, was recently convicted of five counts of making false claims against the government following a three-day trial before U.S. District Court Judge Raymond P. Moore, Acting U.S. Attorney Bob Troyer, FBI Denver Division Special Agent in Charge Calvin Shivers and U.S. Department of Education Office of the Inspector General Special Agent in Charge of Western Regional Office Natalie Forbort announced. A sixth count, mailing a fictitious money order, was dismissed before trial. Glaub, who is free on bond, will be sentenced by Judge Moore on May 12, 2017. He was originally indicted by a federal grand jury on June 6, 2016. His guilty verdict came on January 25, 2017.
According to court documents, as well as information and evidence produced to court during hearings and at trial, Glaub tried to defraud the Department of Agriculture’s finance office into paying nearly $1.7 million worth of debts on his behalf. The five false claims he was convicted of submitting included attempts to get the government to buy him three new vehicles (including a $73,000 Corvette and a $65,000 Camaro) and pay off two other debts (including student loans he owed to the Department of Education).
During pretrial proceedings, information indicated that Glaub was involved with the anti-government “sovereign citizen” movement, whose adherents refuse to recognize the authority of the federal government and often use those purported beliefs as a gateway to illegal activity. Testimony at trial confirmed Glaub’s sovereign affiliation, and his actions were consistent with known fraud schemes that are prevalent in sovereign citizen circles.
Glaub faces not more than 5 years in federal prison, and up to a $250,000 fine, per count, for each of the five counts of conviction.
This case was investigated by the FBI and the U.S. Department of Education Office of the Inspector General. The defendant was prosecuted by Special Assistant U.S. Attorney Daniel Burrows and Assistant U.S. Attorney Peter McNeilly.
Career Offender Bank Robber Sentenced to 262 Months in Federal PrisonRead the Press Release
DALLAS — Noah Bradley Lester, 64, of Farmers Branch, Texas was sentenced today by U.S. District Judge Jane Boyle to serve a total of 262 months in federal prison, following his guilty plea in April 2016 to two counts of bank robbery, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, on April 17, 2015 Lester entered the BB&T Bank located at 3550 Forest Lane in Dallas, Texas, wrote a demand note then left the bank when approached by bank personnel, leaving the note behind. Lester next entered the Capital One Bank located at 2903 Forest Lane, Dallas, Texas. Lester handed the teller a note demanding money and then lifted his shirt so the teller could see an airsoft pistol in his waistband. The teller, scared and in fear for her life, complied with the demand and provided Lester with cash. After securing the money, Lester left the bank. He was arrested later that same day as he arrived home.
Lester also pleaded guilty in 1993 in the Northern District of Texas to one count of bank robbery and was sentenced in August 1993 to serve 300 months in federal prison. At the time of these April 2015 bank robberies, Lester was on supervised release on that offense. Today, Judge Boyle sentenced Lester to 262 months on the bank robbery offenses and 36 months for violating his supervised release, to be served concurrently.
The Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Keith Robinson was in charge of the prosecution.
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Butler County Couple Indicted on Federal Drug and Firearms OffensesRead the Press Release
Montgomery, Alabama – A federal grand jury has indicted William Edward Robinson (44) and Sandra Wright Taylor (53), for violations of federal law including conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of firearms in connection with drug distribution, possession of firearms while being a convicted felon, criminal use of the United States Mail, maintaining a drug-involved premise, and illegal possession of a machinegun, announced George Beck Jr., U.S. Attorney for the Middle District of Alabama. The couple shared a residence in Greenville, Alabama.
It is alleged that Taylor and Robinson received their illegal drugs through the mail for distribution locally. Upon searching their residence, numerous firearms were also found including an illegal machinegun. Robinson has previous felony convictions and under federal law, a felon is prohibited from possessing a firearm.
An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted of the charges, the couple faces a maximum sentence of life in prison.
The case was investigated by the Second Judicial Drug Task Force, the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Secret Service, the Butler County Sheriff’s Office, the Greenville Police Department, the Autauga County Sheriff’s Office, the Montgomery Police Department, and the Alabama Department of Forensic Sciences.
The cases are being prosecuted by Assistant United States Attorney Susan R. Redmond.
Buffalo Man Sentenced on Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Alexander Rivera-Santiago, 32, of Buffalo, NY, who was convicted of being a felon in possession of a firearm and ammunition, was sentenced to 33 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that on January 31, 2016, Buffalo Police officers on routine patrol attempted to pull over a vehicle in which the defendant was riding. After activating their lights and sirens, the vehicle fled from the officers, ran multiple stop signs, drove over sidewalks, and through a parking lot.
When the vehicle stopped, the driver and the defendant got out and attempted to flee on foot. Santiago was apprehended, and during a subsequent search, officers found six .22 caliber rounds in the defendant’s left pocket. They also found a .22 caliber revolver in the area from which the defendant fled. Santiago was previously convicted on felony charges in the State of Florida and is prohibited from legally possessing a firearm.
The sentencing is the culmination of an investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan M. Benedict, New York Field Division.
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Brownsville Man Handed Significant Sentence for Hostage takingRead the Press Release
BROWNSVILLE, Texas – A 24-year-old Brownsville man has been ordered to prison for nearly 20 years following his conviction of human smuggling and hostage taking, announced U.S. Attorney Kenneth Magidson. Reynaldo Lerma-Pichardo pleaded guilty Oct. 25, 2016.
On Feb. 15, 2017, U.S. District Judge Rolando Olvera ordered he serve a total of 235 months in federal prison to be immediately followed by three years of supervised release.
On or about Nov. 22, 2015, the Brownsville Police Department (BPD) received a 911 call leading them to an apartment. There, Border Patrol (BP) agents discovered nine undocumented aliens being held against their will. The undocumented aliens reported that they were not allowed to leave the apartment unless they could pay additional monies to Lerma-Pichardo.
Lerma-Pichardo operated the alien smuggling operation along with Leticia Lerma-Pichardo, Juan Carlos Meza-Hinojosa and Cynthia Yadira Deantes out of their homes.
During the course of the investigation, Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) agents discovered that Lerma-Pichardohas sexually assaulted one of the illegal alien females held at the apartment.
Leticia Lerma Pichardo, 47, a legal permanent resident of Brownsville and Meza-Hinojosa, a 38-year-old Mexican citizen were previously sentenced to 37 and 22 months, respectively. Deantes, 23, is set for sentencing next week.
HSI conducted the investigation with the assistance of BP and BPD. Assistant U.S. Attorney Ana Cano is prosecuting the case.
Brooksville Man Sentenced to More Than Five Years for Being A Felon in Possession of A Firearm and AmmunitionRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich today sentenced Chamberlain Chaney (26, Brooksville) to 5 years and 10 months in federal prison for being a felon in possession of a firearm and ammunition. The Court also ordered him to forfeit a Glock .40 caliber pistol and 15 rounds of ammunition.
Chaney pleaded guilty on October 4, 2016.
According to court documents, on September 20, 2015, law enforcement officers attempted to speak with Chaney about a recent robbery. He ran from the officers, discarding a fully loaded Glock pistol that had been stolen. Prior to his arrest in this case, Chaney had prior convictions for aggravated assault with a deadly weapon, carrying a concealed firearm, and resisting a law enforcement officer with violence. As a result, he was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Tampa Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Natalie Hirt Adams.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Brandon Man Sentenced for Stealing Checks and Money Orders from U.S. Postal MailboxesRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Carlos Sarabasa Cobas (30, Brandon) to three years and five months in federal prison for conspiracy to commit bank fraud. The Court also entered a money judgment in the amount of $123,225.80, and a restitution order requiring Cobas to pay $46,232.45 to the victims of his crime. He pleaded guilty on November 17, 2016.
According to court documents, Cobas engaged in a scheme to defraud the United States and financial institutions by negotiating money orders and checks that he had stolen from various U.S. Postal Service mail collection boxes in several Florida counties, including Hillsborough, Pinellas, Pasco, Polk, and Sarasota. Cobas used “fishing” devices constructed of duct tape, string, and metal objects to burglarize the mailboxes. He then discarded the unwanted mail and kept the money orders and checks that he then washed or altered before depositing, or distributing them to be deposited by others, into bank accounts held by the conspirators at several financial institutions.
This case was investigated by the U.S. Postal Inspection Service. It was prosecuted by Assistant United States Attorneys Megan Kistler and Daniel George.
Beggs Man Sentenced to 57 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that JACKIE LEON PARKER, JR, age 42, of Beggs, Oklahoma, was sentenced to 57 months imprisonment, and 3 years of supervised release for FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
The Indictment alleged that on or about May 23, 2016, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, firearm which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Checotah Police Department, the Okmulgee Police Department, the Okmulgee District Attorney’s Office, the Okmulgee County Sheriff’s Office, the Muskogee County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Dean Burris represented the United States.
Auburn Man Indicted for Producing Child PornographyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Christopher Lee, 64, of Auburn, charging him with the production of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Lee used a webcam to produce child pornography and share the video with an individual who lived in England.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Placer County Sheriff’s Department. Assistant U.S. Attorney Lee S. Bickley is prosecuting the case.
Lee has remained in custody since his arrest on February 6, 2017.
If convicted, Lee faces a maximum statutory penalty of 30 years in prison for each count and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Atlanta Man Convicted of Illegally Importing and Distributing Male Enhancement Products from ChinaRead the Press Release
ATLANTA - Ismail Ali Khan has been convicted following a six-day jury trial of conspiracy, illegal importation of misbranded drug products from China, receiving misbranded drugs that had moved in interstate commerce, and making false statements in order to become a naturalized U.S. citizen.
“Khan led a conspiracy that caused misbranded drugs to be illegally imported and distributed in the Atlanta area and throughout the southeastern United States,” said U. S. Attorney John Horn. “Because the labeling on the products failed to warn consumers of the dangers in taking the products, consumers’ health and safety were placed in jeopardy by Khan’s conduct.”
“Distributing unapproved and misbranded drugs disguised as all-natural supplements places the U.S. public health at risk,” said Justin Green, Special Agent in Charge, FDA Office of Criminal Investigations’ Miami Field Office. “We will remain vigilant in our efforts to protect American consumers from these fraudulent and potentially dangerous products.”
According to U.S. Attorney Horn, the charges and other information presented in court: In early 2011, Khan and his brother, Ahmed Ali Khan, began ordering male enhancement products from China marketed under names such as “Maxman,” “Herb Viagra,” “Rock Hard Weekend,” “Stiff Nights,” “Happy Passengers,” “Hard Ten Days,” “Zhen Gongfu,” and “African Black Ant.” These products contained sildenafil, the active pharmaceutical ingredient in Viagra, and/or tadalafil, the active pharmaceutical ingredient in Cialis. Both Viagra and Cialis can be obtained in the U.S. only with a prescription from a doctor.
However, the labeling for the products that Khan and his brother imported and distributed did not state that they contained sildenafil or tadalafil. Instead, the products were misleadingly labeled as “all-natural” and “herbal.” The labeling for the products also failed to warn consumers about the medical risks associated with taking sildenafil and tadalafil.
Khan and his brother illegally imported these drugs from China by having shippers in China falsely declare on the Customs declaration attached to the shipping boxes containing the products that the boxes contained “tea,” “coffee,” “beauty products,” and other false entries.
In order to evade detection by authorities, Khan, his brother, and their co-conspirators used multiple mailing addresses rented in multiple business names at locations in the Atlanta, Georgia, metropolitan area to receive the shipments from China. Khan and his co-conspirators would then move the products to storage units where they would prepare orders for wholesale distributors of the products. Khan and his co-conspirators used aliases, false addresses, and fake business names to misrepresent the nature of their business when renting the storage units and mail boxes.
In August 2013, during the course of the conspiracy, Khan applied to become a naturalized U.S. citizen. On the application form, Khan falsely stated that he had never committed a criminal offense for which he had not been arrested. Then on January 6, 2014, in an interview with Citizenship and Naturalization Services, and again on March 14, 2014, just before he took the oath to become a naturalized citizen, Khan falsely stated that he had never committed a crime for which he had not been arrested. Based upon Khan’s false statements, he became a naturalized U.S. citizen on March 14, 2014.
Ismail Ali Khan, 29, of Decatur, Georgia, was convicted on Monday, February 13, 2017. Sentencing for Khan is scheduled for April 27, 2017, at 10:00 a.m., before U.S. District Judge Steve C. Jones. Khan was arrested on May 29, 2014, and he has remained in custody since his arrest. At his sentencing hearing, Judge Jones will sign an order that revokes Khan’s U.S. citizenship.
This case was investigated by the Food and Drug Administration, Office of Criminal Investigations, the United States Postal Inspection Service, and Homeland Security Investigations.
Assistant United States Attorneys William L. McKinnon, Jr. and Trevor C. Wilmot prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Arrest Made in Bonners Ferry Church ArsonRead the Press Release
BOISE – Shane Rucker, 33, of Bonners Ferry, Idaho, was arrested today on a two-count federal indictment in the District of Idaho charging him with destruction of religious property and using a fire to damage or destroy religious property. A federal grand jury sitting in Boise returned the indictment on February 15, 2017. Rucker will make his initial appearance tomorrow at 9:00 a.m. at the federal courthouse in Coeur d’Alene, Idaho.
According to allegations in the indictment, on April 21, 2016, Rucker set fire to St. Ann’s Catholic Church in Bonners Ferry, Idaho, because of the religious character of the property, in violation of the Church Arson Prevention Act. The church was completely destroyed as a result of the fire.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted of destroying the church because of its religious character, Rucker faces a maximum sentence of 20 years in prison. Using a fire to destroy the church carries a mandatory 10 year sentence that must run consecutive to any other sentence.
The case is being investigated by the Bonners Ferry Police Department, the Bonner County Sheriff’s Office, the Idaho State Fire Marshal’s Office, the Boundary County Sheriff’s Office Fire Investigation Team, the Bureau of Alcohol, Tobacco and Firearms, and the Federal Bureau of Investigation. The case is being prosecuted by U.S. Attorney Wendy Olson and Assistant U.S. Attorney Traci Whelan of the District of Idaho and Trial Attorney Angie Cha of the Civil Rights Division.
Anchorage Man Sentenced to 10 Years in Prison for Felon in Possession of a FirearmRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Aaron Michael Sullivan, 29, of Anchorage, was sentenced by U.S. District Judge Sharon L. Gleason to serve 10 years in prison for being a felon in possession of a firearm, followed by three years of supervised release. His federal term of imprisonment will run concurrent with his convictions by the State of Alaska in case 3AN-14-9136 CR.
On Oct. 6, 2014, Anchorage Police attempted to conduct a traffic stop on the vehicle Sullivan was driving. Sullivan fled from the police. As the police looked for Sullivan in the Mountain View neighborhood, Sullivan rammed a patrol car with his vehicle. Sullivan then fired a shot at one of the officers. As the officer attempted to find cover behind another vehicle Sullivan fired more shots in his direction. Sullivan then attempted to flee again and drove his vehicle through an intersection and crashed his vehicle into a street sign.
In case 3AN-14-9136 CR, Sullivan was convicted by the State of Alaska after a jury trial and sentenced to 50 years in prison with 15 years suspended, after convictions for attempted murder in the first degree, assault in the third degree, failure to stop at the direction of an officer, and reckless endangerment. Sullivan was convicted of being a felon in possession of a firearm for possession of the firearm he used to shoot at the Anchorage Police Officer during the above referenced incident. Sullivan has prior felony convictions for assault in the third degree and misconduct involving weapons in the third degree.
U.S. Attorney Loeffler commends the Anchorage Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives for the successful investigation and prosecution of this case.
Albuquerque Man Pleads Guilty to Federal Drug Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Adam Martinez, 42, of Albuquerque, N.M., pled guilty today in federal court to heroin, methamphetamine and cocaine trafficking charges. He also pled guilty to possessing two firearms in furtherance of his drug trafficking crimes. The guilty plea was announced by U.S. Attorney Damon P. Martinez and Special Agent in Charge Will R. Glaspy of DEA’s El Paso Division.
Martinez was arrested in Aug. 2016, on a criminal complaint charging him with committing drug trafficking and firearms offenses in Bernalillo County, N.M. According to the complaint, Martinez was arrested on Aug. 24, 2016, after the DEA executed a search warrant at his Albuquerque residence and seized distribution quantities of heroin, methamphetamine, cocaine, other controlled substances and two firearms. At the time, Martinez was prohibited from possessing firearms or ammunition because he previously had been convicted of a drug trafficking offense.
On Sept. 13, 2016, Martinez was charged in an eight-count indictment with distribution of methamphetamine on Aug. 5, 2016, and possessing distribution quantities of heroin, methamphetamine, cocaine, and other controlled substances on Aug. 24, 2016. The indictment also charged Martinez with possession of firearms in furtherance of his drug trafficking activities and being a felon in possession of firearms on Aug. 24, 2016. According to the indictment, Martinez committed the crimes in Bernalillo County.
During today’s proceedings, Martinez pled guilty to five counts of the indictment. Martinez admitted distributing methamphetamine on Aug. 5, 2016, and possessing heroin, methamphetamine and cocaine with intent to distribute on Aug. 24, 2016. He also admitted possessing firearms in furtherance of his drug trafficking crimes on Aug. 24, 2016.
In entering the guilty plea, Martinez admitted distributing drugs in Albuquerque from Jan. 2016 to Aug. 2016, and that his drug trafficking activities included selling approximately 27.8 grams of cocaine to a person working with law enforcement on Jan. 12, 2016. He also admitted selling drugs to an undercover officer on the following dates: approximately 27.4 grams of cocaine on Jan. 27, 2016; approximately 56.7 grams of methamphetamine on Feb. 5, 2016; and approximately 56.7 grams of methamphetamine on Aug. 5, 2016.
Martinez further admitted that on Aug. 24, 2016, law enforcement officers executed a search warrant on his residence and seized approximately 318 grams of heroin, 149.7 grams of 100% pure methamphetamine, 128 grams of cocaine, 250 tablets (27.59 grams) containing fentanyl, and 43 grams of marijuana. The officers also seized two firearms which were in close proximity to the drugs, and Martinez admitted possessing the firearms for purposes of protecting himself, his drugs, and his drug proceeds.
At sentencing, Martinez faces a statutory mandatory minimum penalty of five years and a maximum of 40 years in prison on the drug trafficking charges. He also faces a mandatory minimum penalty of five years and a maximum of life in prison on the firearms charge that must be served consecutive to the prison sentence imposed on the drug trafficking charges. Martinez remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorney Timothy S. Vasquez 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.
Wednesday 15 February 2017
Youngstown man indicted for heroin and firearms violationsRead the Press Release
A Youngstown man was indicted for selling heroin and illegally having firearms, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and FBI Special Agent in Charge Stephen D. Anthony.
James K. Neail, 33, was charged in a five-count indictment with distribution of heroin and with being a felon in possession of firearms and ammunition.
Neail sold heroin on multiple occasions in September 2016 in the Youngstown area, according to the indictment.
Neail possessed a Kel-Tec, model P3AT, .380 caliber pistol and ammunition in September 2015 and possessed a Rohm, model RG38S, .38 caliber revolver and ammunition in October 2015. He did so despite a 2012 federal conviction for conspiracy to commit unlawful conduct relating to RICO, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation and the Mahoning Valley Law Enforcement Task Force. The matter is being prosecuted by Assistant U.S. Attorneys David M. Toepfer and Ranya Elzein.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Willow Grove Man Charged with Conspiracy to Commit Fraud and Misuse of VisasRead the Press Release
Juan Rodriguez, 36, of Willow Grove, Pennsylvania, was charged today by Information[1] with one count of conspiracy to commit fraud and misuse visas and one count of fraud and misuse of visas, announced Acting United States Attorney Louis D. Lappen. The information alleges that in or about 2012 to on or about September 2014, Rodriguez, a former Supervisor at Asplundh Tree Experts, Inc., knowingly accepted and received false identification from hired employees. This acceptance of false documentation facilitated the re-hiring of Asplundh Tree Experts, Inc. employees who were determined previously by Homeland Security Investigations to be aliens unauthorized to work in the United States.
If convicted the defendant faces a maximum possible sentence of ten years’ imprisonment, a $500,000 fine, up to three years supervised release, and a $200 special assessment.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations (“HSI”) and is being prosecuted by Special Assistant United States Attorney Josh A. Davison and Assistant United States Attorney L.C. Wright.
[1]An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Wheeling man indicted for cocaine distribution and operating a drug houseRead the Press Release
WHEELING, WEST VIRGINIA – Michael E. Stradwick, of Wheeling, West Virginia, has been indicted for allegedly distributing cocaine and maintaining a house for drug distribution, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Stradwick, age 37, was indicted by a federal grand jury for one count of “Possession with Intent to Distribute Cocaine Base” and one count of “Maintaining Drug-involved Premises.” The crimes are alleged to have occurred in January 2017 in Wheeling, Ohio County.
Stradwick faces up to twenty years in prison and a fine of up to $1,000,000 for count one. He faces up to twenty years in prison and a fine of up to $500,000 for count two. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Special Assistant U.S. Attorney P. Anthony Martin is prosecuting the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Westview Savings Bank Accounting Officer Charged with EmbezzlementRead the Press Release
PITTSBURGH - A resident of Butler, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of embezzling from a federally insured bank, Acting United States Attorney Soo C. Song announced today.
The one-count indictment, returned on February 14, 2017, named Keith A. Simpson, 59, of Butler, Pennsylvania, as the sole defendant.
According to the indictment, Simpson, while serving as Chief Accounting Officer of West View Savings Bank, embezzled approximately $41,806.90 from West View Savings Bank during the period from April 2014 to April 2016.
The law provides for a maximum total sentence of thirty years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys David Lew and Lee J. Karl are prosecuting this case on behalf of the government.
The Federal Deposit Insurance Corporation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Washington man indicted for taking minor over state lines to engage in commercial sexRead the Press Release
A Washington man was charged with transporting a minor across state lines for the purpose of engaging in commercial sex, said U.S. Attorney Carole S. Rendon and FBI Special Agent in Charge Stephen D. Anthony.
Tyrell L. Moss, 33, knowingly transported a child identified as T.C. for the purpose of engaging in prostitution. Moss transported T.C. from Washington state to Beachwood by way of California, Idaho, Utah, Colorado and Illinois, with the intent that T.C. would engage in commercial sex acts, according to the indictment.
This took place between September and October 14, 2016, according to the indictment.
If convicted, the sentence in this case will be determined by the court after consideration of the federal sentencing guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the unique characteristics of the violations. In all cases the sentence will not exceed the statutory maximum, and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Bridget M. Brennan following an investigation by the FBI’s Child Exploitation Task Force, which includes members of the FBI, Cleveland Division of Police, Cuyahoga County Sheriff’s Department, Adult Parole Authority and Cuyahoga Metropolitan Housing Authority Police, with assistance from the Cuyahoga County Prosecutor’s Office.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Violent Drug Dealer and Gang Member Sentenced to 11 Years in Federal PrisonRead the Press Release
EUGENE, Ore. – On Wednesday, February 15, 2017, U.S. District Judge Ann Aiken sentenced Steven Matthew Chambers, 33, of Eugene, to 132 months in prison for possession with intent to distribute methamphetamine. Following his prison sentence, Chambers will be on supervised release for 5 years.
In 2015, the Lane County Interagency Narcotics Team (INET) began investigating Chambers after receiving reliable information about his involvement in the distribution of methamphetamine. INET surveilled and monitored Chambers activity and, on February 16, 2016, followed him to Albany, Oregon where they observed him meeting with a methamphetamine dealer.
On his return trip to Eugene, Chambers’ vehicle was stopped and searched. A drug dog alerted to a container in his vehicle and he had $3,563 in cash on his person and a list of eleven firearms with prices. His residence was then searched pursuant to a warrant, and a safe with $9,500 cash and a small amount of methamphetamine was found. The next day, detectives found and executed a search warrant on Chambers’ other vehicle in Eugene, and discovered 4.7 pounds of methamphetamine, scales and packaging material.
Chambers was convicted previously in Oregon of second-degree assault in 2002, delivery of methamphetamine in 2007, and attempted first-degree assault in 2008. While serving an earlier prison sentence, Chambers committed multiple additional assaults. Chambers was known to law enforcement as a member of the West Side Gangsters.
This case was investigated by the Lane County Interagency Narcotics Team and the Eugene Resident Agency office of the FBI. The case was prosecuted by Jeffrey Sweet, Assistant United States Attorney for the District of Oregon.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida Announces ResignationRead the Press Release
MIAMI – Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, announced today that that he will step down from his post on March 3, 2017. Mr. Ferrer tendered his resignation to President Donald J. Trump and Attorney General Jeff Sessions.
“There has been no greater honor than to serve and protect the same community that opened its arms to my parents when they immigrated to this country,” stated U.S. Attorney Ferrer. “For almost seven years, I have been blessed to work alongside the remarkable men and women in the U.S. Attorney’s Office, community leaders, and our federal, state and local law enforcement partners who strive tirelessly to combat crime and promote a safer, stronger and more united District. I am incredibly proud of all that we have been able to accomplish together, in and out of the courtroom, including building meaningful bonds of trust with the diverse community we serve.”
Ferrer was nominated by President Barack Obama and unanimously confirmed by the U.S. Senate in 2010 to serve as the chief federal law enforcement officer for the Southern District of Florida. In 2014, Ferrer was appointed by Attorney General Eric Holder to serve a two-year term on the Attorney General’s Advisory Committee (AGAC). In January 2016, Ferrer was reappointed to serve on the AGAC by Attorney General Loretta Lynch. Since his appointment as U.S. Attorney, Mr. Ferrer has led the nation’s third largest U.S. Attorney’s Office as a dedicated public servant.
During Mr. Ferrer’s tenure, the U.S. Attorney’s Office has indicted over 11,000 cases and charged more than 18,000 defendants for their participation in criminal activity impacting the Southern District of Florida and beyond. With some of the busiest litigators in the country, the Office consistently handles more trials than almost every other office. Since 2010, the Office has conducted almost 1,000 trials. In addition, the Office has seized, forfeited, and collected millions of dollars as part of its efforts to recover money and assets and seek restitution for crime victims. Between 2010-2016, the Office collected approximately $591 million in criminal and civil actions. During this same time period, the Office, working with partner agencies, has collected over $384 million in criminal and civil forfeitures. This is remarkable considering the Office’s annual budget is approximately $43 million.
Protecting Our Nation’s Security
From the outset of his appointment as the District’s U.S. Attorney, Mr. Ferrer’s top priority has been prosecuting and deterring acts of terrorism.
- Since his creation of the Office’s National Security Section in 2013, there has been a threefold increase in the number of active national security cases prosecuted by the Office.
- In support of the National Security mission, Mr. Ferrer created the Department’s First National Security Intelligence Unit at a District level to provide crucial, real time support to time sensitive national security, transnational organized crime and international narcotics matters.
In addition, National Security prosecutors:
- Convicted a man who conspired to raise funds and send them abroad in support of the Pakistani Taliban;
- Convicted a South Florida resident who attempted to use a weapon of mass destruction on a public beach and provide material support to a terrorist organization;
- Obtained lengthy prison sentences against two terror group operatives who conspired and attempted to raise funds and recruits for the al-Qaeda group in Somalia and an affiliate in Syria;
- Secured the maximum statutory sentences for two South Florida brothers who were working to stage a terrorist attack in New York;
- Disrupted a significant number of home grown violent extremists inspired by terror groups to try to carry out terror attacks; and
- Charged the individual alleged to have killed five people and wounded others at Fort Lauderdale-Hollywood International Airport with federal offenses that authorize penalties up to and including the death penalty.
Combatting Fraud
Throughout Mr. Ferrer’s tenure, he focused on the broad range of evolving financial crimes that plague the district, including health care fraud, identity theft, complex investment and securities frauds, Ponzi schemes, boiler room operations, bank fraud, corporate fraud, broad-scale mortgage fraud, computer fraud, tax fraud, unemployment insurance fraud, and bankruptcy fraud.
Health Care Fraud – Since 2010, the Office has been a nationwide leader in health care fraud prosecutions, charging 658 health care fraud cases and 1,230 defendants. In 2016, the Office was part of a multi-district team that charged the largest single criminal health care fraud case ever brought against individuals by the Department of Justice (DOJ).
Identity Theft Schemes - In 2012, Mr. Ferrer created the South Florida Identity Theft Strike Force to aggressively attack rampant identity tax refund fraud in the district. This collective law enforcement initiative evolved into a permanent Stolen Fraud (SIF) Strike Force to combat the multi-faceted criminal enterprises that use stolen personal identifying information to commit other crimes. Since the inception of the Strike Force, the U.S. Attorney’s Office has charged more than 600 defendants responsible for over $400 million in intended losses.
Diverse Financial Fraud Schemes – The Office has also been a leader in financial fraud prosecutions. The Office’s prosecutions and recoveries included:
- Full restitution to the defrauded investors of a $1.2 billion Ponzi scheme led by defendant and former high profile civil attorney Scott Rothstein;
- A 40-year prison sentence and over $300 million forfeiture judgment against the orchestrator of a $300 million-dollar fraud scheme involving the sales of vacation rental units;
- The conviction of the owner of a for profit college that orchestrated a scheme to defraud federal loan programs of $25 million;
- A sentence of more than 5 years in prison for the former mayor of North Miami following her conviction at trial for orchestrating an $8 million mortgage fraud scheme; and
- The first extradition of a Jamaican national for his role in a lottery scam targeting senior citizens in the U.S.
In addition, the Southern District is the only Office with an Environmental Crimes Unit outside of Main Justice that investigates and prosecutes criminal violations of environmental and wildlife protection laws. During Mr. Ferrer’s tenure, the Unit has:
- Obtained the largest-ever criminal penalty against a company for deliberate pollution by a seagoing vessel;
- Prosecuted corporations and individuals that violated hazardous material guidelines and illegally applied pesticides resulting in injuries to a child; and
- Convicted individuals who filed approximately $1.5 million in fraudulent reimbursement claims related to the Deepwater Horizon explosion.
Fighting Public Corruption and Civil Rights Violations
Mr. Ferrer’s commitment to holding those accountable who fail to uphold their duties and betray the public trust and deprive our citizens of the equal protections they deserve is unwavering. A few noteworthy examples of the Office’s support of this commitment include:
- Criminal convictions related to the Opa-Locka corruption investigation;
- Over 160 individuals were convicted in corruption cases, including 33 federal officials, 22 state officials, 66 local officials, and 39 private citizens;
- The conviction of local officials included more than 30 police officers on corruption and/or civil rights charges;
- The criminal conviction of the former Mayor of the City of Sweetwater for using his elected position to facilitate a fraud scheme;
- Settlements and consent decrees with the Davie Fire Department and Palm Beach County School Board to resolve allegations of employment discrimination due to pregnancy; and
- In 2016, the Office, in conjunction with the Department of Justice, negotiated a comprehensive settlement agreement with the City of Miami and the Miami Police Department (MPD) following findings of excessive use of force through officer involved shootings. Under the terms of the settlement, MPD committed to comprehensive reforms to ensure constitutional policing and support public trust.
Thwarting Narcotics Trafficking
Mr. Ferrer increased the Office’s commitment to the prosecution of international drug traffickers and money launderers. In support of this mission, the Office:
- Created the first-in-the-nation BACRIM prosecution unit to combat the leaders and associates of Colombia’s largest and most influential criminal drug trafficking group. Since the unit’s inception, the Office has filed charges against hundreds of defendants associated with the BACRIMs. In addition, Mr. Ferrer became the first U.S. Attorney in history to travel to Colombia, where he met on two occasions with the nation’s president to support and encourage our collective enforcement efforts;
- Created the nation’s first Caribbean Basin initiative to tackle maritime narco-trafficking into the U.S., from that region. The Office has charged hundreds of defendants under this initiative. Between June and November of 2016, the Office, working with its federal law enforcement partners, brought criminal prosecutions based on the interception of over 20 metric tons of cocaine on the high seas;
- Obtained a 150-year prison sentence and $14 million forfeiture judgment against the head of an international narcotics trafficking and money laundering syndicate out of Madrid, Spain; and
- Continues to participate in the extradition and prosecution of alleged international drug traffickers and money launders, including the first extradition from Honduras, Joaquin Guzman Loera (“El Chapo”) from Mexico, and Guy Philippe from Haiti.
The Office also waged a battle against the scourges of pill mills, synthetic drugs, heroin, opiates, and performance enhancing drugs. As a result, the Office:
- Obtained the district’s first federal conviction for unlawful distribution of a controlled substance, Fentanyl, which resulted in death;
- Exposed the illegal pipeline of black market suppliers of performance enhancing drugs to professional athletes during the Biogenesis investigation;
- Thwarted the oxycodone crisis with the crack-down on “pill mills;” and
- Convened a Town Hall, with more than 100 concerned community attendees, to confront the heroin crisis.
Protecting Vulnerable Victims - Human Tracking and Child Exploitation
During Mr. Ferrer’s tenure, the Office continued its dedication to the protection of the most vulnerable members of society. As part of that commitment, the Office:
- Prosecuted over 84 offenders in 50 human trafficking cases;
- Obtained life sentences for two defendants convicted in the district’s first sex trafficking by fraud prosecution and successfully prosecuted the first sex trafficking case in the country based on extraterritorial jurisdiction; and
- Convicted traffickers and abusers who used deception to lure unsuspecting foreign university students into prostitution, preyed on minors in shelters and orphanages, used “sextortion” to induce teenage boys to send sexually explicit photographs and videos, and employed forced labor practices against farm workers.
A Commitment to Violence Reduction
Concerned with the rising tide of violence in our communities, particularly youth gun violence, in 2011, Mr. Ferrer created the Violence Reduction Partnership (VRP), a community-based, holistic, approach to violence reduction that focuses on enforcement, prevention, and the successful reentry of returning citizens into South Florida neighborhoods. The blueprint for the VRP consists of the simultaneous, vigorous pursuit of three prongs:
First Prong-Enforcement: Prosecutors are assigned to specific “hot spot” communities plagued by violence. Between 2011 and 2016, AUSAs filed more than 1,500 cases, involving firearms and violent crime, against more than 1,400 defendants. In addition, the Office:
- Convicted eight defendants charged for their participation in a large-scale armed drug trafficking operation that resulted in the seizure of body armor and assault rifles;
- Convicted the killers of a U.S. Postal Service letter carrier; and
- Prosecuted countless members and associates of the Latin Kings and other neighborhood violent-crime squads.
Second Prong – Prevention: U.S. Attorney Ferrer implemented an array of VRP initiatives that strive to prevent crime in violence plagued communities through mentorship, exposure to positive role models and early literacy development.
- Through the Pre-K Reading Program, Office staff partner with City Year Miami, local attorneys, law enforcement officers/agents, judges, and community volunteers to read to more than 1,200 students a month, in 23 district schools. Each child is given a free book at the end of the program. For many, this is the first book they have ever owned. In total, more than 11,000 books have been distributed to area students.
- Since 2013, the U.S. Attorney’s Office has also invited more than 2,500 students from 45 local schools to meet with prosecutors, inmates and courthouse staff to learn about the importance of making smarter choices in their lives.
Third Prong – Successful Reentry: The Office is committed to reducing recidivism by helping formerly incarcerated individuals successfully reintegrate and contribute to their communities. Reentry initiatives include:
- The Southern District of Florida’s first ever federal Reentry Court, the Court-Assisted Re-Entry (CARE) Initiative, a product of extensive collaboration between the U.S. Attorney’s Office, our U.S. District Court, U.S. Probation, the Federal Public Defender’s Office and others; and
- Reentry and Resource (“in-reach”) Meetings at the local and federal penal institutions that are led by Office representatives and have connected more than 2,000 inmates with much needed social services.
Community Outreach and Policing
Mr. Ferrer has also been an invaluable partner in the district’s efforts to improve relationships between law enforcement and the people they serve. As part of that effort:
- In 2016, during her Community Policing Tour, Attorney General Lynch attended a youth town hall in Miami-Dade and met with officers and students selected for the Peace Ambassadors’ Leadership Program, a pilot program supported by the U.S. Attorney’s Office that encourages students in high-crime communities to be "change agents" - to speak out against violence to their family and peers;
- Since 2015, the U.S. Attorney’s Office has partnered with the Miami-Dade Police Department (MDPD) to support monthly community resource fairs and food distribution events that have provided over 156 tons of free food and reached over 10,500 area residents; and
- Mr. Ferrer has also met directly with leaders and concerned members of the district’s diverse civic, faith-based, academic and law enforcement communities at mosques, temples, churches, schools, police departments and community centers to open channels of communication.
Civil Division
Under Mr. Ferrer’s leadership, Civil Division AUSAs worked on massive civil fraud investigations involving egregious false claims and novel issues. Civil Division attorneys reached countless multi-million dollar settlements, including:
- A record settlement of more than $250 million with more than 500 hospitals to resolve False Claims Act allegations related to the implantation of cardiac devices;
- The largest settlement ever against skilled nursing facilities nationally, $17 million, to resolve kickback allegations; and
- Walgreens agreed to pay a record settlement of $80 million for civil penalties under the Controlled Substances Act.
Appellate Division
The Office has one of the premier Appellate Divisions in the Department of Justice. During Mr. Ferrer’s tenure, the Appellate Division has won significant cases (in published and unpublished decisions), including several that decided issues of first impression. The Division has:
- Successfully argued before the Eleventh Circuit that the statute giving extraterritorial effect to the crime of sex trafficking by force, fraud, or coercion was a constitutional exercise of Congress's authority under the Foreign Commerce Clause; and
- Obtained en banc review of, and the overturning of an adverse panel decision that rendered unconstitutional subsection (d) of the Stored Communications Act, 18 U.S.C. § 2703(d), which permits a federal of state governmental entity to obtain historical cell site information from a telephone service provider without a warrant, in certain circumstances. After full en banc briefing and argument, Appellate Division AUSAs convinced the Eleventh Circuit that the Act did not violate the Fourth Amendment.
Two Managers of a Brooklyn Medical Clinic Indicted for Roles in $2.1 Million Fraud SchemeRead the Press Release
Two managers of a Brooklyn, New York medical clinic were charged in an indictment unsealed today related to their alleged participation in a $2.1 million fraud scheme involving medically unnecessary occupational therapy services.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Robert L. Capers of the Eastern District of New York, Special Agent in Charge Scott Lampert of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Office of Investigations, Special Agent in Charge Kathy A. Enstrom of Internal Revenue Service Criminal Investigation’s (IRS-CI) New York Office and New York State Medicaid Inspector General Dennis Rosen of the Office of the Medicaid Inspector General (OMIG) made the announcement.
Iezabel Zeltser, 52, of Brooklyn, was charged in an indictment filed yesterday in the Eastern District of New York with one count of conspiracy to commit health care fraud, one count of conspiracy to commit money laundering and three counts of money laundering. Rafael Gilkarov, 51, of Brooklyn, was charged in the indictment with one count of conspiracy to commit money laundering and three counts of money laundering. The defendants made initial appearances today, Feb. 15, at 2:30 p.m. EST before U.S. Magistrate Judge Cheryl L. Pollack of the Eastern District of New York.
According to allegations in the indictment, Zeltser and Gilkarov operated Evercare Occupational Therapy LLC, a Brooklyn medical clinic purported to provide medically necessary occupational therapy services to Medicare and Medicaid beneficiaries. The defendants allegedly paid patients to submit themselves to medically unnecessary therapy services provided by unlicensed aides. To conceal the scheme, Zeltser and Gilkarov allegedly used a skeleton crew of licensed occupational therapists to create fake medical charts. The defendants in turn laundered a substantial portion of the proceeds through shell companies, using the cash to enrich themselves and to pay kickbacks to the beneficiaries, the indictment alleges.
According to the indictment, Evercare submitted approximately $2.1 million in fraudulent claims to the Medicare and Medicaid programs for services which were not medically necessary or not provided and was paid approximately $1 million on those claims.
The charges and allegations contained in an indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
HHS-OIG, IRS-CI and the New York State OMIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. The case is being prosecuted by Trial Attorneys Debra Jaroslawicz and Richard A. Powers of the Criminal Division’s Fraud Section.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 3,000 defendants who have collectively billed the Medicare program for more than $11 billion. In addition, HHS Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Two Indicted for Allegedly Trafficking Fentanyl Laced HeroinRead the Press Release
PROVIDENCE – A federal grand jury in Providence on Tuesday returned a two-count indictment charging a Providence couple with allegedly trafficking fentanyl laced heroin.
United States Attorney Peter F. Neronha, Michael J. Ferguson, Special Agent in Charge of DEA, Colonel Ann S. Assumpico, Superintendent of the Rhode Island State Police, and Warwick Police Chief Colonel Stephen M. McCartney announce the indictment of Agustin Acevedo, a/k/a Daniel Martinez Suazo, 49, and Dismery Uceta, 42, of Providence, each on one count of conspiracy to possess with intent to distribute 100 grams or more of heroin and one count of possession with the intent to distribute more than 100 grams of heroin.
According to court documents and information presented to the court, in March 2016, as part of an ongoing drug trafficking investigation by DEA agents in Washington, DC, information was developed and provided to DEA agents in Rhode Island that led investigators to believe that Acevedo may be involved in the trafficking of illicit drugs into Rhode Island.
As part of the investigation by Rhode Island DEA agents and the Rhode Island DEA Drug Task Force, agents determined that Acevedo frequently rented vehicles for short periods of time. They determined that on April 29, 2016, Acevedo allegedly rented a vehicle in Rhode Island and then late the same day he and Uceta travelled to the Bronx, New York in the rented vehicle. They returned to Rhode Island early the next day. As the vehicle was returning to Rhode Island, DEA agents, conducting surveillance of the vehicle, reported to Rhode Island State Police that the vehicle was allegedly traveling on Route 95 at speeds of approximately 80 mph.
According to court documents, a RI State Trooper stopped the vehicle on Route 95 between exits 5 and 6 for speeding. A speeding citation was issued to the driver, Agustin Acevedo. It is alleged that during the traffic stop, a RI State Trooper observed a brick-like object wrapped in a plastic bag in plain view in an opened handbag on the floor of the vehicle. The occupants consented to a search of the vehicle and Uceta to a search of the handbag. A RI State Police K-9 gave a positive alert to the area near where the handbag was located. A field test of the brick-like object tested positive for heroin. Acevedo and Uceta were detained by DEA agents who also responded to the traffic stop.
On May 3, 2016, a Warwick Police Department Detective received the kilogram of suspected heroin for further analysis. He later identified the left index finger impression of Acevedo on the outer side of the kilogram wrapping.
Forensic testing at the New England Regional Laboratory for DEA revealed that the kilogram of heroin was laced with fentanyl and dipyrone (an analgesic).
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Acevedo and Uceta have been detained in federal custody since their arrest and initial appearance in U.S. District Court in Providence on a federal criminal complaint charging them with possession with intent to distribute 100 grams or more of heroin and conspiracy to possess with intent to distribute 100 grams or more of heroin.
The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Trophy Club Man Sentenced for Child Pornography ViolationsRead the Press Release
SHERMAN, Texas — A 29-year-old Trophy Club, Texas man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Jayce Craft pleaded guilty on July 28, 2016, to distribution of child pornography and was sentenced to 240 months in federal prison today by U.S. District Judge Amos L. Mazzant.
- to information presented in court, Craft came to the attention of law enforcement when it was discovered that an individual utilizing an online file hosting service and online accounts associated with his identity had uploaded child pornography into a cloud storage account. Agents obtained a search warrant for a residence in Trophy Club that was associated with the online activity, which was executed on Sep. 15, 2015. Agents seized electronic media belonging to Craft that was found to contain a substantial amount of child pornography. In addition, it was discovered that Craft had distributed child pornography to, and received files from, other individuals through the use of electronic mail accounts. As part of his plea, Craft admitted that the files depicted children, including prepubescent children, engaged in sexually explicit activity, as well as sadistic/masochistic abuse. Craft was indicted by a federal grand jury on Oct. 14, 2015, and charged with child pornography violations.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations, Flower Mound Police Department and Trophy Club Police Department and prosecuted by Assistant U.S. Attorney Marisa Miller.
Three Springfield, Humansville Men Indicted for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Springfield, Mo., men and a Humansville, Mo., man were indicted by a federal grand jury today, in separate and unrelated cases, for receiving and distributing child pornography.
USA v. Ray
David William Ray, 39, of Springfield, was charged with receiving and distributing child pornography between Oct. 17, 2016, and Jan. 26, 2017.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cyber Crime Task Force.
USA v. Brockman
Jeromey P. Brockman, 39, of Springfield, was charged with receiving and distributing child pornography between Oct. 1, 2015, and Jan. 11, 2017.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cyber Crime Task Force.
USA v. Lane
Christopher James Lane, 32, of Humansville, was charged with receiving and distributing child pornography between Sept. 13 and Sept. 15, 2016.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crime Task Force and the Polk County, Mo., Sheriff’s Department.
Dickinson cautioned that the charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Three Men Arrested, Charged with Conspiring to Distribute Cocaine in Beardstown AreaRead the Press Release
SPRINGFIELD, Ill. – A federal grand jury has charged three men with conspiracy to distribute more than 500 grams of cocaine in central Illinois, specifically in the Beardstown area, and related drug charges. Those charged are Hector Lopez-Herrera, of the 12000 block of Ill. Route 125, Beardstown; Modesto Favela-Chaidez, Chicago, and Jose Rolando Acosta-Hernandez, of the 1000 block of Garm Ave., Beardstown.
The three men were arrested yesterday, in Beardstown, and made their initial appearance in federal court this afternoon before U.S. Magistrate Judge Tom Schanzle-Haskins. The defendants waived detention hearings and were ordered to remain in the custody of the U.S. Marshals Service. Trial has been set for April 11, 2017, before U.S. District Judge Sue E. Myerscough.
The indictment alleges that from May 2016 to Jan. 10, 2017, the three conspired to distribute more than 500 grams of cocaine obtained from Chicago to others in the Beardstown area. According to allegations in the indictment, as part of the conspiracy, Lopez-Herrera would arrange for Favela-Chaidez to deliver cocaine from the Chicago area to co-conspirators in Cass county, including Acosta-Hernandez. Prior to and after delivery of cocaine by Favela-Chaidez, Lopez-Herrera would allegedly accept payment for the cocaine delivered to Acosta-Hernandez and others.
The charges are the result of investigation by the Drug Enforcement Administration; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Illinois State Police; the Central Illinois Enforcement Group; Illinois National Guard, Macomb Police Department; the McDonough County Sheriff’s Office; and, the Cass County Sheriff’s Office. Assistant U.S. Attorney Gregory M. Gilmore is prosecuting the case.
If convicted, the maximum statutory penalty for each offense charged is prescribed by Congress and is provided here for informational purposes, as sentencing is determined by the court based on the advisory Sentencing Guidelines and other statutory factors. For conspiracy to distribute more than 500 grams of cocaine, the statutory penalty is five to 40 years in prison; if a defendant has a prior felony drug conviction, the penalty is 10 years to life in prison.
Lopez-Herrera and Favela-Chaidez are also each charged with two counts of distribution and possession of cocaine with intent to distribute; Acosta-Hernandez is charged with four counts of distribution of cocaine. The statutory penalty for each count of these offenses, if convicted, is up to 20 years in prison; with a prior felony drug conviction, the statutory penalty is up to 30 years in prison.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Three Arrested in San Antonio Charged in Connection with Shooting of U.S. Mail CarrierRead the Press Release
This morning, federal and local authorities arrested three San Antonio residents without incident in connection with a mail theft scheme that involved the shooting of a U.S. Mail carrier last week in Spring Branch, TX, announced United States Attorney Richard L. Durbin, Jr.; Inspector in Charge Adrian Gonzalez, U.S. Postal Inspection Service, Houston Division; and, San Antonio Police Chief William McManus.
A federal criminal complaint filed this afternoon charges 22–year-old Bradley A’Hearn and 26–year-old Sara Richford with one count of assault of a federal agent; one count of carjacking; one count of violating the Hobbs Act (interference with Commerce by violence); and, one count of mail theft. A second criminal complaint filed this afternoon charges 40-year-old Piper Lee with one count of aiding and abetting the assault of a federal officer.
The affidavit in support of the criminal complaints alleges that on February 11, 2017, A’Hearn shot a female U.S. Mail carrier as she was delivering mail to cluster of mailboxes in Spring Branch, TX, when she would not give him her cell phone. The victim is recovering from a gunshot wound to her leg. A’Hearn left the scene in the victim’s pickup truck which still contained the victim’s purse and personal effects as well as a considerable amount of U.S. Mail. Richford, driving a maroon/brown colored Toyota Venza, followed A’Hearn as he left the scene.
Furthermore, the complaint states that on February 13, 2017, a U.S. Postal Inspection Service agent near the site of the shooting recognized the Toyota Venza vehicle. The agent, while attempting to stop the vehicle, was allegedly fired upon by A’Hearn. Other law enforcement personnel, who subsequently joined the pursuit, were also fired upon by A’Hearn. The defendants managed to avoid capture.
The complaint also alleges that on February 14, 2017, agents were notified by employees of a local motel of the presence of a large amount of U.S. Mail and a handgun in one of their rooms. discovered mail, originating from locations across the country, was destined for addresses in the Spring Branch, TX area. That same day, not far from the motel, investigators recovered the abandoned Toyota Venza. From motel surveillance footage, investigators discovered another vehicle being utilized by the defendants, a yellow Volkswagen. Agents observed the defendants leave the motel in the yellow Volkswagen and requested San Antonio police to initiate a stop of the vehicle. defendants failed to yield to SAPD officers and the occupants began shooting at the police. Ultimately, the defendants abandoned their vehicle inside a parking garage of a local mall and managed to elude capture by law enforcement.
At approximately 9:00 this morning, San Antonio police officers, acting on information provided to investigators, arrested the defendants without incident in a parking lot of a different local motel.
Upon conviction, A’Hearn and Richford face up to 20 years in federal prison for assault of a federal agent; up to 25 years in federal prison for carjacking; and, up to 20 years in federal prison for violating the Hobbs Act; and up to five years in federal prison for mail theft. Lee faces up to 20 years in federal prison upon conviction for aiding and abetting the assault of a federal officer).
All three defendants are scheduled for an initial appearance tomorrow at 11:00am in front of U.S. Magistrate Judge Henry J. Bemporad. Detention hearings are likely to be scheduled for next week.
It is important to note that a criminal complaint is merely a charge and should not be evidence of guilt. The defendants are innocent until proven guilty in a court of law.
This matter is being investigated by the U.S. Postal Inspection Service together with the San Antonio Police Department, Texas Department of Public Safety, Texas Rangers, Comal County Sheriff’s Office, Bulverde Police Department, Federal Bureau of Investigation, U.S. Marshals Service and Homeland Security Investigations (HSI). Assistant United States Attorneys Bettina Richardson and Christina Playton are prosecuting this case on behalf of the Government.
Swansea Man Involved in Fatal Car Accident Charged with Possessing Firearm as a FelonRead the Press Release
A Swansea man has been charged in a federal criminal complaint with possessing a firearm as a convicted felon. Today, the U.S. District Court in East St. Louis ordered, Eric L. Eiskant, 33, detained without bond pending indictment. The alleged violation took place on January 20, 2017, in connection with a fatal vehicle accident that occurred in the area of St. Clair Avenue and 79th Street in East St. Louis. If convicted, Eiskant faces a term of imprisonment of up to ten years, a fine up to $250,000, and a term of supervised release of up to three years.
A criminal complaint is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation is ongoing and is being conducted by the Illinois State Police with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is assigned to Assistant United States Attorney Laura V. Reppert.
St. Davids Man Charged with Conspiracy to Commit Fraud and Misuse of VisasRead the Press Release
Larry Gauger, 45, of Saint Davids, Pennsylvania, was charged today by Information[1] with one count of conspiracy to commit fraud and misuse visas and one count of fraud and misuse of visas, announced Acting United States Attorney Louis D. Lappen. The information alleges that in or about 2010 to on or about December 2014, Gauger, a Regional Manager at Asplundh Tree Experts, Inc., directed his personnel to knowingly accept false identification from hired employees. This acceptance of false documentation facilitated the re-hiring of Asplundh Tree Experts, Inc. employees who were determined previously by Homeland Security Investigations to be aliens unauthorized to work in the United States.
If convicted the defendant faces a maximum possible sentence of ten years’ imprisonment, a $500,000 fine, up to three years supervised release, and a $200 special assessment.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations (“HSI”) and is being prosecuted by Special Assistant United States Attorney Josh A. Davison and Assistant United States Attorney L.C. Wright.
[1]An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Sierra Nevada Corporation Pays $14.9m to Settle Allegations of Improper Contract BillingsRead the Press Release
SACRAMENTO, Calif. — Sierra Nevada Corporation (SNC) has paid $14.9 million to resolve allegations that it violated the federal False Claims Act when it knowingly misclassified certain costs, resulting in inflated overhead rates paid to SNC pursuant to various government contracts, U.S. Attorney Phillip A. Talbert announced.
SNC is a Nevada corporation that provides services to agencies of the United States pursuant to various defense and space contracts. The improper charges resolved here resulted from SNC misclassifying certain direct contract costs and Manufacturing and Production Engineering costs as Independent Research and Development (IR&D) costs, and charging certain IR&D costs in the wrong cost accounting period. This improper characterization of costs artificially inflated General & Administrative overhead rates paid to SNC across its federal contracts and resulted in overcharging federal agencies. The government relies on contractors to accurately classify both the nature and timing of contract costs in order to properly calculate overhead rates and appropriately pay for work on government programs.
“This settlement illustrates our commitment to protect the integrity of federal procurement contracting,” said U.S. Attorney Phillip A. Talbert. “We will hold federal contractors to the highest standards of accuracy to ensure that federal agencies are not overcharged for products and services.”
“The integrity of our procurement systems is required by the American public, who demand that tax dollars are used responsibly,” said Chris Hendrickson, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Western Field Office. “DCIS and our law enforcement partners are committed to protecting precious resources needed to support our soldiers, sailors, airmen and Marines.”
This case was handled by Assistant U.S. Attorney Catherine J. Swann, with assistance from the Defense Contract Management Agency, the Defense Contract Audit Agency, the National Aeronautics and Space Administration, and DCIS. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Serial Armed Robbers Convicted in Federal CourtRead the Press Release
Two men were convicted yesterday for their roles in three armed robberies of Dollar General stores in Detroit, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division, and Chief James Craig, Detroit Police Department whose departments led the collaborative investigation into this armed robbery crew as part of the Detroit One initiative.
Convicted by federal jury verdict after a week-long trial were:
Dwayne Dupree, 30, of Detroit, of three counts of robbery and three counts of using a firearm in furtherance of a crime of violence; and
Shawn Pearson, 23, of Detroit, of three counts of robbery and three counts of using a firearm in furtherance of a crime of violence.
Facts at trial showed that the men’s crime spree started on December 17, 2014, when four armed robbers stormed into the Dollar General store at 13441 E. Seven Mile Road in Detroit. The robbers, with their identities concealed with hoodies, masks and gloves, took over the counter area of the store, holding store employees at gunpoint before making off with some of the store’s money. One of the four men was Pearson. He was assisted by Dupree, who acted as a lookout.
Less than three weeks later, on January 5, 2015, two armed masked men robbed the same Dollar General store, this time firing shots at the store manager as they made their getaway. Once again, Pearson was one of the armed robbers, while this time Dupree acted as both a lookout and getaway driver.
Then, on March 19, 2015, Pearson and Dupree acted as the armed robbers of the Dollar General store at 16004 Fenkell. On this occasion, the evidence showed that Dupree fired a shot into the air to scare the store employees to move faster in turning over the store’s money.
FBI Violent Crime Task Force, working in close collaboration with members of the Detroit Police Department, followed the evidence, including ballistic, phone, and social media information, to identify Dupree and Pearson and to solve these robberies.
"The Detroit One partnership focuses on criminals like this armed robbery crew, who endanger public safety and create a climate of fear." McQuade said. "By identifying and prosecuting the individuals and groups driving violence in Detroit, we hope to make the city a safe place to live and work."
“The defendants in this string of violent robberies were brazen in both terrorizing employees and placing the public in danger", said David P. Gelios, Special Agent in Charge, FBI Detroit Division. "Yesterday’s verdict demonstrates the value of the continuing investigative partnership between the FBI and the Detroit Police Department in our collaborative efforts to reduce violent crime in metropolitan Detroit and to keep our communities safe.”
The case was prosecuted by Assistant United States Attorneys Christopher Graveline and Michael Heesters.
Sacramento Woman Pleads Guilty to Making Counterfeit CurrencyRead the Press Release
RENO, Nev. – A California woman pleaded guilty today to making counterfeit $100 bills and spending the money at businesses in Northern Nevada, announced U.S. Attorney Daniel G. Bogden for the District of Nevada. She faces the statutory maximum penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for June 5, 2017, before U.S. District Judge Miranda M. Du.
“It is a federal crime to make, forge, alter or counterfeit a Federal Reserve Note,” said U.S. Attorney Bogden. “Individuals who make counterfeit currency are attempting to cheat and cause damage to businesses and the U.S. economy. We will continue to protect the U.S. economy and seek prosecution of individuals who engage in counterfeiting currency.”
Yvonne Geneal Flores, 38, of Sacramento, Calif., was indicted on May 25, 2016. Co-defendant Thomas Michael Morla, 42, pleaded guilty to making counterfeit currency and was sentenced to serve 18 months in prison.
According to the plea agreement and court documents, from Oct. 7, 2015 to May 5, 2016, Flores and Morla manufactured and passed numerous counterfeit $100 bills at various businesses in Reno, Carson City, and Sparks. Law enforcement were alerted to the counterfeit bills after Hertz Rental Car filed a report about Morla in possession of an embezzled Mercedes in Carson City. At the time of his arrest, he was holding counterfeit money. Flores’s name was listed as one of the drivers on the Hertz rental contract and she too was arrested for possession of an embezzled vehicle. During the execution of a search warrant, law enforcement found over $6,000 in counterfeit bills, a laptop computer, scanner/printer, and other items Flores and Morla used to manufacture the counterfeit currency. The U.S. Secret Service has collected nearly $50,000 counterfeit $100 bills from businesses that can be attributed to Flores and Morla based on the similarities of the notes and the use of the same face and back plate numbers, and check letter/quadrant numbers.
The case was investigated by the U.S. Secret Service; and prosecuted by Assistant U.S. Attorney Brian L. Sullivan.
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Sacramento Man Sentenced to 4 1/2 Years in Prison for Bank Fraud and Aggravated Identity TheftRead the Press Release
SACRAMENTO, Calif. — Yasir Mehmood, 45, of Sacramento, was sentenced on Tuesday by U.S. District Judge John A. Mendez to four years and six months in prison for bank fraud and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Mehmood was an information technology professional who was hired in 2011 to fix the computer systems at a Marin County-based eyeglass retailer. Months later, long after his business relationship with the retailer ended, and without authorization, he accessed hundreds of the retailer’s customer records, which included credit and debit card numbers, associated security codes, and personal identification information (names, telephone numbers, addresses and email addresses). Mehmood used these customer records to purchase products and gift cards and to process fraudulent merchant transactions with payments transferred to bank accounts controlled by him. Mehmood also fraudulently registered websites and made false online job postings to capture personal and financial information of online purchasers and job seekers.
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated, “We are working closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those responsible for complex identity fraud schemes and to protect postal customer’s mail and personal information from theft.”
In 2013, while on pretrial release, Mehmood cut his ankle monitor and fled from authorities before being arrested by the Sacramento County Sheriff’s Department.
This case was the product of an investigation by the U.S. Postal Inspection Service with assistance from the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Sacramento County Sheriff’s Department. Assistant U.S. Attorney Jeffrey A. Spivak and Trial Attorney Manish Kumar from the Department of Justice’s Antitrust Division prosecuted the case.