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Thursday 9 February 2017
Sacramento Man Pleads Guilty to Executing a Bank Fraud Scheme via Identity Theft and Stolen U.S. MailRead the Press Release
SACRAMENTO, Calif. — Raleigh Rana Figueras, 35, of Sacramento, pleaded guilty today to bank fraud, aggravated identity theft, possession of stolen U.S. mail, and unlawful possession of five or more identification documents, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between June 2015 and January 2016, Figueras along with his wife, Michelle Reyes Serrano, 35, of Sacramento, and others obtained victim identities and financial information from stolen mail and other stolen property. They obtained personal and financial information and used it to pose as the identity theft victims and use their stolen bank accounts, access device numbers, and altered checks to get money, goods and services from banks and merchants. Figueras created counterfeit driver’s licenses on his computer.
This case is the product of an investigation by the U.S. Postal Inspection Service with the assistance of the Sacramento County Sheriff’s Department and the Sacramento County Probation Department. Assistant U.S. Attorneys Michelle Rodriguez and Rosanne L. Rust prosecuted the case.
On December 15, 2016, Serrano pleaded guilty to bank fraud, aggravated identity theft, and possession of stolen U.S. mail. She is scheduled to be sentenced on March 9, 2017.
U.S. District Judge Morrison E. England Jr. is scheduled to sentence Figueras on May 4, 2017. Figueras and Serrano each face up to 30 years in prison for bank fraud, five years in prison for possession of stolen U.S. Mail, and a mandatory two-year consecutive prison sentence for aggravated identity theft. Figueras additionally faces 15 years for possession of more than five identifications for use in the fraudulent scheme. The actual sentences, however, will 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.
Richard Byrd Sentenced to 26 Years in Federal Prison for Leading Major Baltimore Drug Distribution OrganizationRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Richard Byrd, a/k/a Robert Smith, age 43, a Jamaican national residing in Maryland and Arizona, today to 26 years in federal prison, followed by 10 years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine and marijuana, and to conspiracy to launder drug proceeds. Judge Bennett also entered an order requiring Byrd to pay a money judgment of $20 million dollars, as well as forfeit his interest in two properties, three businesses, and 10 vehicles, and forfeit $1,609,411.51 in cash seized during the investigation.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Chief Terrence B. Sheridan of the Baltimore County Police Department; Colonel Woodrow Jones, Chief of the Maryland Transportation Authority Police; Interim Special Agent in Charge Thomas J. Holloman of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel Frank L. Milstead, Director of the Arizona Department of Public Safety; Chief Jeri Williams of the Phoenix, Arizona Police Department; and Chief Sean Duggan of the Chandler, Arizona Police Department.
“This case represents the very height of drug organizations operating out of Baltimore in recent history,” stated Assistant Special Agent in Charge of the Drug Enforcement Administration Don Hibbert. “The Byrd organization had it all; sources of supply, couriers, and lots and lots of money. But now all they have to show for it is a great deal of time behind bars to think about how they destroyed lives with the drugs they put on the street.”
“Richard Byrd’s actions were motivated by pure greed, as evidenced by the millions of dollars in narcotics proceeds he received while perpetuating his sophisticated narcotics trafficking and money laundering operation. IRS Criminal Investigation is committed to unraveling money laundering schemes such as this, where individuals attempt to conceal the true source of their money,” said Thomas J. Holloman, Interim Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Today’s sentencing shows that IRS-CI, in conjunction with our law enforcement partners, will continue to bring cases like these to justice.”
According to his plea agreement and court documents, from 2009 through April 2014, Richard Byrd was the leader and organizer a drug distribution network which provided for the acquisition, transportation and distribution of cocaine and marijuana. The sale of marijuana and cocaine generated proceeds in the millions of dollars. These proceeds were counted and packaged in and around Baltimore. Byrd used couriers to transport the proceeds to the Atlanta, Georgia area, then others to transport the money from Atlanta to cities in Nevada, Texas, Arizona, and California, where the cash was used to purchase additional quantities of drugs.
Byrd also acquired a financial interest in a business in order to launder drug proceeds, finance commercial ventures, and pay other bills and expenses. At his direction, several million dollars in cash were deposited into the bank accounts maintained by the business. Many of these transactions involve deposits in excess of $10,000. In addition, Byrd used bank accounts in the name of an alias, Robert Smith, to conduct financial transactions intended to launder drug proceeds, including paying personal bills and expenses.
The conspirators used freight companies to ship drugs obtained in Arizona, California and elsewhere to distribution points in Baltimore, and other east coast destinations. Rasan Byrd supervised the Arizona-based activities of organization. Under the direction of Richard Byrd, Rasan coordinated the acquisition of large quantities of marijuana and cocaine from Mexican sources of supply and supervised several workers who weighed and packaged the drugs in a way to avoid detection by law enforcement. On April 22, 2013, law enforcement officers in Arizona seized 16 kilograms of cocaine and over 600 pounds of marijuana which were about to be shipped to Byrd’s Baltimore-based distributors.
The Baltimore distributors included Jerome Castle, Joseph Byrd, and Harold Byrd. Castle supervised the Baltimore operation, taking delivery of the drugs, selling them, and collecting and counting proceeds from the drug sales. On April 22, 2013, law enforcement officers in Maryland seized approximately 350 pounds of marijuana and over 10 kilograms of cocaine from businesses and residences utilized by Castle, Joseph Byrd, and Harold Byrd. In addition, almost $58,000 in currency and jewelry valued at more than $400,000 were recovered at the residence of Jerome Castle. The money and jewelry were also proceeds from illegal drug sales.
In addition, over $1 million was seized in Arizona from Richard Byrd in early 2011. In July 2012, an additional of $372,000 was seized from a residence in Arizona occupied by Richard and Rasan Byrd. These money seizures were proceeds from east coast drug sales intended for use in acquiring additional quantities of marijuana and cocaine.
During the course of this conspiracy more than 150 kilograms of cocaine and 20,000 kilograms of marijuana were acquired and distributed by Richard Byrd and his associates.
Brothers Rasan Byrd, age 41, of Houston, Texas, Harold Alexander Byrd, age 27, of Phoenix, Maryland, and Joseph Ibreham Byrd, age 35, of Owings Mills, Maryland, previously pleaded guilty to their roles in the conspiracy. Rasan was sentenced to 14 years in prison and Harold and Joseph were each sentenced to 10 years in prison.
Jerome Adolfo Castle, a/k/a Dontwon Burris, age 37, a Jamaican citizen residing in Pikesville, Maryland, previously pleaded guilty to his role in the conspiracy and was sentenced to 14 years in prison. Castle was also ordered to forfeit $57,997 in cash, his interest in seven Baltimore properties, jewelry valued at more than $411,000, 98 pairs of men’s shoes, two laptop computers and an I-Pad, seven firearms and ammunition, as well as six vehicles, including a 2009 Jaguar XF Premium.
Maurice Jones, age 62, and Richard Drummond, age 40, both of Baltimore, also pleaded guilty to their roles in the conspiracy and were sentenced to seven years in prison and two years in prison, respectively.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore County Police Department, the Maryland Transportation Authority Police, IRS-Criminal Investigation, HSI-Baltimore, Arizona Department of Public Safety, Phoenix Police Department, and Chandler, Arizona Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James G. Warwick and Kenneth S. Clark, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Red Onion Inmate Pleads Guilty, is Sentenced for Sending Threatening LettersRead the Press Release
Roanoke, VIRGINIA – A Red Onion inmate, who pled guilty to sending threatening letters to four district courts throughout the country and then told a federal judge at his sentencing hearing that he planned to kill the people addressed in those letters once he got out of prison, was sentenced to five decades in federal prison today, Acting United States Attorney Rick A. Mountcastle announced.
James Monroe Cox, 37, a Red Onion State Penitentiary inmate, formerly of Salem, Va., pled guilty today in District Court to five counts of mailing threatening communications. Cox was also sentenced today to serve 600 months in federal prison, 120 months on each count, to run consecutively.
According to an indictment returned in February 2016, Cox wrote a variety of letters making threats to prosecutors and judges within the United States District Court for the Southern District of Texas, the Eastern District of Virginia, and the Western District of Missouri. Those letters contained various threats, including to inflict serious bodily harm upon judges and prosecutors, shoot the judges and prosecutors, blow up their homes and courthouses, and blow up several businesses with heavy explosives. While Cox awaited trial on the original indictment, in June 2016, he wrote a second series of threatening letters in which he threatened a judge within the United States District Court for the Western District of Virginia. A superseding indictment returned in August 2016 charged Cox with two additional counts of writing threatening letters to a judge within the United States District Court for the Western District of Virginia.
During his hearing today in the United States District Court, Cox, after pleading guilty but prior to being sentenced, told the Hon. Judge Michael Urbanski, that as soon as he was released from federal prison he planned to kill those people he previously threatened in his letters, his own family, and anyone else he could. Cox reiterated his plans to kill former President Bush and the Bush family, whom Cox had previously written threatening letters to and been convicted for in the Eastern District of Virginia in 2003. Cox stated that he planned to shoot and “snipe” as many people as possible. Cox also stated that he had written over 100 such letters in recent years and was surprised that he only faced five counts for writing threatening letters.
The investigation of the case was conducted by the Federal Bureau of Investigation, the United States Marshal Service, and the Virginia Department of Corrections. Special Assistant United States Attorney Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, prosecuted the case for the United States.
Readout of First Day Events for Attorney General SessionsRead the Press Release
On his first official day serving as the 84th Attorney General of the United States, Jeff Sessions arrived at the Justice Department and met with top department leadership right after greeting department employees in person and through a video message.
Following a visit on Capitol Hill with Luther Strange, who was appointed by Alabama Gov. Robert Bentley to fill Attorney General Sessions’ vacancy in the Senate, Attorney General Sessions received his first Foreign Intelligence Surveillance Act briefing from national security staff.
The Attorney General later met with the senior officials from the Justice Department’s law enforcement components, including FBI Director James Comey, Bureau of Alcohol, Tobacco, Firearms and Explosives Acting Director Thomas Brandon, U.S. Marshals Service Acting Director David Harlow and Drug Enforcement Administration Acting Administrator Chuck Rosenberg. They had a vigorous discussion about how to combat the rise in violent crime and prevent drug-related deaths. They expressed their shared commitment to strengthen law enforcement and save lives.
Attorney General Sessions also called top leadership of the National Urban League and National Association for the Advancement of Colored People to build positive relationships and outline his priorities for the Department of Justice, including his commitment to maintain sound policies for civil rights and voting rights.
In addition, Attorney General had important calls with leadership of the Fraternal Order of Police and the National Sheriffs and Major City Sheriffs to reaffirm his commitment to strengthening relationships with law enforcement communities.
Tonight, the Attorney General will give brief remarks at a closed press High Intensity Drug Trafficking Area awards banquet in Washington, D.C.
Rapid City Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Failing to Register as a Sex Offender was sentenced on February 6, 2017, by U.S. District Judge Roberto A. Lange.
Frank White Thunder, age 29, was sentenced to 15 months in custody, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
White Thunder was indicted by a federal grand jury on May 17, 2016. He pled guilty on November 30, 2016.
White Thunder was convicted of Abusive Sexual Contact in April 2008. As a result of this conviction, he is required to register as a sex offender. In February 2012, White Thunder was convicted of Failure to Register as a Sex Offender and was ordered to register as a sex offender. He was released from custody on April 5, 2016. White Thunder initially registered as a sex offender, but then absconded from supervision. White Thunder did not update his sex offender registration between April 21, 2016 and May 17, 2016, as required by law and his whereabouts were unknown.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Kirk W. Albertson prosecuted the case.
White Thunder was immediately turned over to the custody of the U.S. Marshals Service.
Physician Assistant Found Guilty Following Two-Day Jury TrialRead the Press Release
Abingdon, VIRGINIA – A physician assistant who allowed phentermine tablets to be distributed using her Drug Enforcement Administration (DEA) registration, was found guilty today following at three-day jury trial in the United States District Court for the Western District of Virginia in Abingdon, Acting United States Attorney Rick A. Mountcastle announced.
Lynn Hartwell, 41, of Marion, Va., was found guilty today on all counts after a jury deliberated for three and one-half hours after hearing three days of evidence. Hartwell was found guilty of one count of conspiring to distribute a controlled substance (phentermine), one count of conspiracy to allow the use of her DEA registration number by another person, 20 counts of distributing phentermine and 20 counts of allowing the use of her DEA registration by another person.
According to evidence presented at trial by Assistant United States Attorney Randy Ramseyer, Hartwell worked as a physician assistant at MTRx, a weight loss clinic in Bristol, Tennessee, operated, at the time, by Marvin Allen Stanley and owned by his wife, Tracey Michelle Stanley. The Stanleys previously pled guilty to their roles in the conspiracy.
Evidence at trial showed that Hartwell allowed the Stanleys to use her DEA registration number to order phentermine and dispense phentermine to individuals who Hartwell never examined. The clinic was open Monday through Saturday, but Hartwell typically only worked on Mondays and Fridays. On days she did not work, patients received phentermine without ever being examined by Hartwell. Hartwell later signed and initialed the patient charts to indicate she approved the dispensing of the phentermine.
Also, Hartwell and the Stanley allowed a person who did not work at the clinic to fill out patient charts and obtain and deliver phentermine to her friends and acquaintances. Once or twice a week, Norma Jean Marsh, a.k.a. “Trixie,” a registered nurse, went to MTRx and spent 15 or 20 minutes filling out patient files for friends and acquaintances of hers from the Saltville area. Then Hartwell and the Stanleys provided her with phentermine for those friends and acquaintances. Several of those individuals never were seen as patients at the clinic. Marsh previously pled guilty to her role in the conspiracy.
Phentermine is a Schedule IV controlled substance. It is related chemically and pharmacologically to amphetamine, which is extensively abused.
At sentencing, Hartwell faces a statutory maximum sentence, per count, of imprisonment for a term of five years and a fine of $250,000. She remains on bond pending sentencing. Her sentencing date has not been scheduled.
MTRx was previously dismissed from the case because it is under new ownership unrelated to the defendants. Marvin Stanley, Tracey Stanley and Norma Marsh are scheduled to be sentenced on March 2, 2017.
The investigation of this case was conducted by the Drug Enforcement Administration’s Tactical Diversion Squad in Roanoke, with the assistance of the Virginia Attorney General’s Medicaid Fraud Control Unit, Tennessee Bureau of Investigation, Bristol (Tennessee) Police Department, and Saltville (Virginia) Police Department. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Pennsylvania man pleads guilty to oxycodone distributionRead the Press Release
MARTISNBURG, WEST VIRGINIA – Steven Bruce Mathis, 52, of Biglerville, Pennsylvania, was convicted of distributing oxycodone, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Mathis pled guilty to one count of “Possession with Intent to Distribute Oxycodone.” The crime took place in Jefferson County in March 2016. He faces up to twenty years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Drug Enforcement Administration and the Jefferson County Sheriff’s Office investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Palm Beach Resident Sentenced to More than 6 Years in Prison for Stolen Identity Tax Fraud SchemeRead the Press Release
A Palm Beach resident was sentenced to 74 months in prison, to be followed by three years of supervised release for his participation in a stolen identity tax fraud scheme.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Raphael Oswald, a/k/a Mackenson R. Olibrice, 37, of Rivera Beach, previously pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343, one count of theft of public money, in violation of Title 18, United States Code, Section 641, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, in August 2013, law enforcement began investigating Oswald for identity theft charges related to his use of the stolen identity of a woman to purchase and finance a 2006 Porsche and BMW X-5 in New York. Specifically, the defendant walked into two separate car dealerships and presented a fraudulent passport and fraudulent Florida driver’s license in the name of the woman but bearing Oswald’s photo.
During the course of the initial identity theft investigation, a separate tax refund fraud scheme involving Oswald was discovered. Oswald possessed and used stolen personal identifying information of numerous individuals, and used the information to file fraudulent tax returns and collect tax refunds in the name of those individuals. More than one hundred fraudulent federal tax returns were filed, and the fraudulent refunds totaling $139,308 were directed into bank accounts in the name of Oswald’s company. Oswald then made a series of cash withdrawals and made several purchases for personal items from the bank accounts.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case was being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Owner of Schools that Illegally Allowed Foreign Nationals to Remain in U.S. as Foreign ‘Students’ Pleads Guilty to Federal Fraud ChargesRead the Press Release
LOS ANGELES – The owner of four schools that enrolled hundreds of foreign nationals who fraudulently obtained immigration documents allowing them to remain in the United States as “students” – even though they rarely, if ever, attended classes – pleaded guilty today to federal immigration fraud charges.
Hee Sun Shim (also known as Leonard Shim and Leo Shim), 53, of Beverly Hills, the owner and manager of the schools, pleaded guilty this morning to conspiracy and immigration document fraud.
Shim, along with two co-defendants – ran a “pay-to-stay” scheme through three schools in Koreatown – Prodee University/Neo-America Language School; Walter Jay M.D. Institute, an Educational Center (WJMD); and the American College of Forensic Studies (ACFS). A fourth school in Alhambra – Likie Fashion and Technology College – was also involved in the scheme, which ran for at least six years.
Prodee and the other schools issued immigration documents to foreign nationals who were not bona fide students, had no intention of attending the schools, and sometimes lived outside of California. As part of the conspiracy, Shim created bogus student records, including transcripts, for some of the students for the purpose of deceiving immigration authorities. In exchange for the immigration documents that allowed them to remain in the United States, the purported “students” made “tuition” payments to Shim and his co-conspirators to “enroll” and remain enrolled at the schools.
“Immigration fraud schemes such as this allow foreign nationals to circumvent immigration controls and enter, as well as remain in, the United States unlawfully, which compromises national security and the strict set of rules that legitimate immigrants follow,” said United States Attorney Eileen M. Decker. “These defendants not only undermined the immigration system, but they did a disservice to all of the immigrants following the rules for entry into the U.S.”
Two other defendants named in the 2015 indictment – Hyung Chan Moon (also known as Steve Moon), 40, of Los Angeles, and Eun Young Choi (also known as Jamie Choi), 37, of Los Angeles – previously pleaded guilty and are pending sentencing.
The investigation in this case began in 2011 after a compliance team with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Student and Exchange Visitor Program, paid an unannounced visit to Prodee University’s main campus on Wilshire Boulevard. During the visit, the team observed only one English language class with three students in attendance, even though records indicated more than 900 foreign students were enrolled at Prodee’s two campuses. That same day, an unannounced visit to ACFS found only one religion class in session with a single student present, even though the school had more than 300 foreign students in active status.
During the ensuing investigation, HSI special agents identified several dozen foreign nationals, primarily from South Korea and China, who originally entered the U.S. as F-1 non-immigrant students to attend other schools, but subsequently transferred to schools in the Prodee network. These students lived across the nation, indicating that they were not actually attending classes at Prodee or the other schools.
As detailed in court filings, Prodee and its affiliated schools were authorized to issue a document that certified a foreign national had been accepted to a school and would be a full-time student. The document – “Certificate of Eligibility for Nonimmigrant (F-1) Student Status - for Academic and Language Students,” which is commonly called a Form I-20 – made a student eligible to obtain an F-1 student visa that would allow the student to enter and remain in the United States while the student was making normal progress toward completing a full course of study.
“As defendant and his co-conspirators knew, these Form I-20s were based on false claims, false statements, and fraud since the purported foreign students had no intention of attending school and were not bona fide students,” according to Shim’s plea agreement.
“Student visas are intended to afford people from around the world an opportunity come to this country to enrich themselves with the vast learning opportunities available here, but this defendant was interested in a different kind of enrichment, his own,” said Joseph Macias, special agent in charge for HSI Los Angeles. “HSI will move aggressively against those who compromise the integrity of our nation's visa system and put America's security at risk in the process. As this defendant learned, those who abuse the generosity of our foreign student visa program can expect a lesson in criminal justice."
As a result of today’s guilty pleas, Shim faces a statutory maximum penalty of 15 years in federal prison. He is scheduled to be sentenced by United States District Judge George H. Wu on June 5.
In his plea agreement, Shim agreed to forfeit to the United States approximately $465,000 in bank funds and cash that were seized by investigators in 2015.
The investigation into the Prodee schools was conducted by HSI, which received substantial assistance from U.S. Citizenship and Immigration Services’ Fraud Detection and National Security Division.
This case is being prosecuted by Assistant United States Attorneys Wilson Park of the Violent and Organized Crime Section, Lindsey Greer Dotson of the Public Corruption and Civil Rights Section, and Katie Schonbachler of the Asset Forfeiture Section.
Oklahoma City Man Sentenced to 262 Months for Firearm Possession in Furtherance of Drug TraffickingRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that DUSTIN RAY BAILEY, age 36, of Oklahoma City, Oklahoma, was sentenced to 262 months imprisonment, and 5 years of supervised release for POSSESSION OF A FIREARM IN FURTHERANCE OF A DRUG TRAFFICKING CRIME, in violation of Title 18, United States Code, Section 924(c)(1)(A).
The Indictment alleged that from on or about June 27, 2016, within the Eastern District of Oklahoma, the defendant, did knowingly possess a firearm, in furtherance of a drug trafficking crime for which he may be prosecuted in a court of the United States.
The charge arose from an investigation by the Sallisaw Police Department, the Oklahoma State Bureau of Investigation, and the Drug Enforcement Administration.
The Honorable James H. Payne, 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.
Niagara Falls Man Indicted 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 a federal grand jury has returned and indictment charging James Smith, 25, of Niagara Falls, NY, with being a felon in possession of a firearm. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the indictment and a previously filed complaint, on February 25, 2016, New York State Parole Officers and others conducted a search at Smith’s residence on Orleans Avenue in Niagara Falls. The defendant was under the supervision of New York State Parole following a July 2010 federal conviction and an August 2014 Niagara County Conviction.
As officers entered, Smith attempted to go into the basement. The defendant was stopped and the basement was searched. Officers recovered a Colt, .32 caliber semi-automatic handgun with a magazine loaded with two rounds of ammunition. As a result of his previous convictions, Smith is prohibited from legally possessing a firearm.
The defendant will be arraigned at a later date before U.S. Magistrate Judge H. Kenneth Schroeder.
The indictment is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Ashan Benedict, New York Field Division, the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto, and New York State Parole.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Navajo Man from Fruitland Sentenced for Federal Drug Trafficking ConvictionRead the Press Release
ALBUQUERQUE – George Begay, 47, an enrolled member of the Navajo Nation who resides in Fruitland, N.M., was sentenced today in federal court in Albuquerque, N.M., to a year and a day in prison for his conviction on a methamphetamine trafficking charge. Begay will be on supervised release for three years after completing his prison sentence.
Begay was arrested on May 11, 2016, on an indictment charging him with distributing methamphetamine on April 29, 2014, in San Juan County, N.M. On Sept. 28, 2016, Begay pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the Albuquerque office of Homeland Security Investigations and the HIDTA Region II Narcotics Task Force. Assistant U.S. Attorney Elaine Y. Ramirez prosecuted the case.
The HIDTA Region II Narcotics Task Force is comprised of officers and investigators from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department, Aztec Police Department and HSI Albuquerque, and is part of the High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Nampa Man Sentenced for Accessing with Intent to View Child PornographyRead the Press Release
BOISE – Josiah Yeasley, 28, of Nampa, Idaho, was sentenced yesterday to 30 months in prison, followed by 10 years of supervised release, for accessing with intent to view child pornography, U.S. Attorney Wendy J. Olson announced. Yeasley was charged in an information.
According to the plea agreement, from 2010 through 2015, Yeasley knowingly accessed with intent to view visual depictions on the internet of minors engaged in sexually explicit conduct. He used email to request and receive images of child pornography. A forensic examination of Yeasley’s electronic devices revealed that he had affirmatively saved images and a video file containing child pornography. The plea agreement requires forfeiture of real and personal property associated with the offense.
The case was investigated by the Department of Homeland Security, Immigration and Customs Enforcement.
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.”
Mustang Woman Pleads Guilty to Making False Statement in Connection with the Bank of Union FailureRead the Press Release
Oklahoma City, Oklahoma – GWENDOLYN VAN HORN, 44, of Mustang, Oklahoma, pleaded guilty this week for submitting a falsified document to The Bank of Union, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
On November 1, 2016, a federal grand jury returned a two-count indictment charging Van Horn with making false statements to a federally-insured bank. At the change of plea hearing yesterday, Van Horn admitted that she submitted a fabricated letter to J.S., her loan officer at The Bank of Union, which falsely represented that Van Horn was to receive an inheritance distribution of approximately $3,000,000.00, in order to ensure her ongoing relationship with The Bank of Union.
At sentencing, Van Horn faces up to 30 years in prison, a $1,000,000 fine, and up to five years of supervised release. Per the terms of her plea agreements, Van Horn will also be ordered to pay restitution to the victim of her conduct in an amount to be determined by the court at the time of sentencing.
This case is the result of an investigation by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Julia E. Barry.
Mobridge Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mobridge, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Justin Jerome Howard, age 33, was indicted on January 19, 2017. He appeared before U.S. Magistrate Judge William D. Gerdes on January 27, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, a mandatory minimum period of at least 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between December 5, 2016, and December 14, 2016, Howard, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction, knowingly failed to register and update his registration as required by law.
The charge is merely an accusation and Howard is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Howard was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Missouri Man Indicted for Stealing Public School Employees’ IDs and Filing Fraudulent Tax Returns in Their NamesRead the Press Release
A federal grand jury sitting in St. Louis, Missouri, indicted a St. Louis resident on mail fraud and aggravated identity theft charges relating to a scheme to steal public school employees’ IDs and use them to file federal tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Richard G. Callahan for the Eastern District of Missouri.
According to the indictment returned on Feb. 1 and unsealed today, Kevin K. Williams stole public school employees’ IDs from a payroll company and used them to electronically file fraudulent federal income tax returns in the name of those employees. He also allegedly stole several tax preparation businesses’ Electronic Filing Identification Numbers (EFINs), which he used to secure bank products that allowed him to print refund checks and direct refunds to prepaid debit cards. The indictment alleges that Williams had printed refund checks issued in the names of the stolen IDs, and blank check stock and debit cards sent to his residence.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Williams faces a statutory maximum sentence of 20 years in prison for each mail fraud count and a mandatory minimum sentence of two years in prison for aggravated identity theft. Williams also faces a period of supervised release, restitution, monetary penalties and forfeiture.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Callahan commended special agents of Internal Revenue Service Criminal Investigation, FBI and the U.S. Postal Inspection Service as well as the Dothan Alabama Police Department and Alexander City Alabama Police Department, who conducted the investigation, and Trial Attorneys Michael C. Boteler and Charles M. Edgar, Jr. of the Tax Division, who are prosecuting the case with assistance from the U.S. Attorney’s Offices for the Eastern District of Missouri and Middle District of Alabama.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Mission Man Charged with Assaulting, Opposing, Resisting, and Impeding a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Assaulting, Opposing, Resisting, and Impeding a Federal Officer.
Donovan Siers, a/k/a Donovan Fast Dog, age 51, was indicted on September 13, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 7, 2016 and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on July 4, 2016, Siers did forcibly assault, resist, oppose, impede, intimidate, and interfere with an officer who was employed as a law enforcement officer by the Rosebud Sioux Tribe, and the said conduct did involve physical contact.
The charge is merely an accusation and Siers is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk W. Albertson is prosecuting the case.
Siers was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Military Man Sent to Prison for Human SmugglingRead the Press Release
CORPUS CHRISTI, Texas – An active duty Army soldier has been ordered to federal prison following his conviction for smuggling two illegal aliens through a U.S. Border Patrol (BP) checkpoint, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Mark Dawson of Immigration and Customs Enforcement's Homeland Security Investigations (HSI). Joseph Edmond Cleveland, 25, of El Paso, pleaded guilty Nov. 29, 2016.
Today, Senior U.S. District Judge Janis Graham Jack sentenced Cleveland to a 15-month-term of federal imprisonment. In handing down the sentence, Judge Jack noted an aggravating factor that Cleveland attempted to use his status as a serviceman to avoid detection. Cleveland will also be required to serve three years of supervised release following completion of his prison term.
Cleveland and co-defendant Marco Antonio Nava Jr., 20, also of El Paso, admitted they smuggled two Illegal aliens through the BP checkpoint in Falfurrias. They claimed they were approached by a man who offered to give them $1,500 if they came to the valley to drive two illegal aliens through the checkpoint. On June 19, 2016, the defendants approached the checkpoint with the two illegal aliens in the rear passenger seats of the vehicle. The BP agent asked one of the passengers if he had documents to be in the United States legally to which he said no. Both passengers were ultimately found to be aliens unlawfully present in the U.S. and taken into custody.
Upon questioning, the illegal aliens stated they crossed into the country eight days prior and had been moved to two different trailer homes. On the day of their arrest, they were told by a person in the trailer home that someone was going to come to pick them up and take them Houston. Nava was driving and told them to get into the vehicle. Once inside, the illegal aliens were told they were going to go through an immigration checkpoint and were coached as what to answer to the agent's questions at the checkpoint.
Cleveland was permitted to remain on bond and voluntarily surrender to the U.S. Marshals Service a date to be determined in the near future.
Nava also pleaded guilty for his role and will be sentenced at a later date.
HSI conducted the investigation. Assistant U.S. Attorney Jeffrey S. Miller is prosecuting the case.
McLaughlin Man Charged with Domestic Assault by an Habitual OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Domestic Assault by an Habitual Offender.
Kyle White Bull, age 29, was indicted on January 19, 2017. He appeared before U.S. Magistrate Judge William D. Gerdes on January 27, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund on each count. Restitution may also be ordered.
The Indictment alleges that on December 21, 2016, White Bull unlawfully committed a domestic assault. At the time of the assault, White Bull had at least two separate prior convictions for assaults that were against a spouse or intimate partner.
The charges are merely accusation and White Bull is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
White Bull was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
McLaughlin Man Charged with Domestic Assault by an Habitual OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Domestic Assault by an Habitual Offender.
Theron Wade Makes Him First, age 28, was indicted on January 19, 2017. He appeared before U.S. Magistrate Judge William D. Gerdes on January 27, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a fine of up to $500,000, 3 years of supervised release, and $200 to the Federal Crime Victims Fund on each count. Restitution may also be ordered.
The Indictment alleges that on June 28, 2016, Makes Him First unlawfully committed two domestic assaults. At the time of the assaults, he had at least two separate prior convictions for assaults that were against a spouse or intimate partner.
The charges are merely accusation and Makes Him First is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Makes Him First was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Manager of an Orlando-Area Heroin Trafficking Organization Sentenced to 20 Years in PrisonRead the Press Release
Orlando, Florida – United States District Judge Carlos E. Mendoza today sentenced Zuleyka Jeanette Colon-Rivera (25, Orlando) to 20 years in federal prison for conspiracy to distribute and possess with the intent to distribute heroin, and distributing and possessing with the intent to distribute heroin. Colon-Rivera was found guilty by a jury on October 26, 2016.
According to testimony and evidence presented at trial, Colon-Rivera was part of a drug trafficking organization called “La Compania” or “the Company” that operated primarily in the Orlando tourist district, near International Drive. Colon-Rivera’s responsibilities in the organization included controlling the telephone that was used to communicate with customers, supplying heroin to the organization’s street-level dealers, and collecting money from the dealers at the end of their shifts.
During the course of this investigation, Colon-Rivera sold large quantities of heroin to undercover agents on two separate occasions. In addition, on February 24, 2016, law enforcement agents seized 200 bags of heroin, two firearms, ammunition, and over $10,000 in cash from Colon-Rivera’s residence.
The organization distributed approximately one kilogram of heroin every two weeks. During the conspiracy, Colon-Rivera was responsible for the distribution of at least 10 kilograms of heroin.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation entitled “La Compania.” The investigation was conducted by the Drug Enforcement Administration, with assistance from the Orange County Sheriff’s Office, the Metropolitan Bureau of Investigation, the U.S. Marshals Service, the Federal Bureau of Investigation, the Orlando Police Department, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Kissimmee Police Department, the Osceola County Investigative Bureau, and the Virginia State Police. It was prosecuted by Assistant United States Attorney Andrew C. Searle.
The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation's drug supply.
Man Who Took $875,000 from Distressed Homeowners in Bogus Loan Modification Scheme Sentenced to Nearly Five Years in PrisonRead the Press Release
SANTA ANA, California – An Orange County man who deceived distressed homeowners with false promises that he could help them avoid foreclosure by obtaining modifications to their mortgages – or even completely eliminating their loans – was sentenced today to 57 months in federal prison.
Antonio Marquette, who went by "Alan Le" and "Anthony Le," 56, of Midway City, was sentenced and ordered to repay $875,000 to victims by United States District Judge Andrew J. Guilford.
Marquette was found guilty in September of nine counts of mail fraud, one count of wire fraud, and one count of money laundering. After the federal jury returned its verdicts, Judge Guilford remanded Marquette into custody.
According to the evidence presented at trial, Marquette operated Bolsa Marketing Group in Garden Grove in 2010 and 2011 and charged homeowners up to $100,000 in cash for services that the homeowners did not receive. Through Bolsa Marketing, Marquette ran a scheme that targeted distressed homeowners – most of whom were members of Vietnamese communities in Southern California, the Bay Area and Houston – and induced them to pay large up-front fees to obtain mortgage relief services.
"This defendant preyed upon vulnerable homeowners desperately trying to avoid foreclosure of their homes," said United States Attorney Eileen M. Decker. "He used false promises to extract significant fees from his victims, but he provided nothing in return."
The evidence showed that Marquette operated the scheme by "falsely promising homeowners mortgage loan modifications that would substantially reduce their mortgage payments, avoid foreclosure, or eliminate their mortgage loans entirely." The government contended at sentencing that Marquette took in more than $1.5 million from victim-homeowners.
As part of the scheme, Marquette made various promises to homeowners, including making guarantees that he could reduce their outstanding debt to 25 percent of the loan balance in only four months. Marquette also sent fraudulent checks to "pay off" mortgages and filed bogus documents with county recorders’ offices, according to court documents.
"Vulnerable homeowners are targeted by affinity schemes such as the one operated by Mr. Marquette, who made false promises via radio advertisements, a tactic which tends to add a veneer of legitimacy to any scheme," said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. "As I've stated previously, homeowners are encouraged to thoroughly research solicitations, including those advertised through the media, before placing their trust and their money with anyone in advance of receiving services."
The case against Marquette was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Greg Staples of the Santa Ana Branch Office.
Man Sentenced to 20 Years in Prison for “Sextortion” OffenseRead the Press Release
TUCSON, Ariz. – Today, Donald Macarthur, 39, of Lehi, Utah, was sentenced by U.S. Chief District Judge Raner C. Collins to 20 years in prison. Macarthur had previously pleaded guilty to two counts of production of child pornography in two separate cases. Macarthur’s term of imprisonment will be followed by lifetime supervised release, with stringent sex offender conditions, including the condition that he register as a sex offender.
Macarthur used the internet to meet young girls on modeling and pro-anorexia websites. Macarthur then communicated with the girls through email and text messages. Specifically, Macarthur communicated with a thirteen-year-old girl in Tucson and a fourteen-year-old girl in Mississippi. During their communications, Macarthur manipulated them by acting as an anorexia coach, encouraging them to starve themselves, and then requesting that they send him sexually explicit photos. If the girls did not comply with his requests, Macarthur threatened that he would no longer coach them and ridiculed them. It is suspected that Macarthur possibly had 51 other unidentified victims.
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, 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.
The investigation in this case was conducted by the Tucson Police Department and the Federal Bureau of Investigation, Tucson. The prosecution was handled by Carmen F. Corbin and Erica L. Seger, District of Arizona, Tucson.
CASE NUMBER: CR-14-2005-TUC-RCC / CR-16-0396-TUC-RCC
RELEASE NUMBER: 2017-012_ Macarthur
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Man Convicted of Smuggling Artifacts from Pakistan into United StatesRead the Press Release
ALEXANDRIA, Va. – Ijaz Khan, 42, of Sante Fe, New Mexico, was convicted today by a federal jury for multiple crimes, including his role in a conspiracy to smuggle ancient artifacts into the United States from Pakistan.
According to evidence presented at trial and court records, Khan was part of a conspiracy that smuggled ancient artifacts including pottery and bronze weapons, which were stolen from burial sites, and coins from a cave temple in Pakistan called the Kashmir Smast. Khan and Vera Lautt, 57, also of Santa Fe, New Mexico, used their business, Indus Valley, to sell the artifacts. One shipment of artifacts was stopped at Dulles International Airport in October 2013. Ijaz and others then attempted to obtain the shipment by submitting various false and fraudulent documents to U.S. Customs and Border Protection.
Khan was convicted of conspiracy to defraud the United States, procurement of citizenship or naturalization unlawfully, conspiracy to smuggle goods into the United States, smuggling goods into the United States, mail fraud, conspiracy to obstruct an official proceeding, and obstruction of an official proceeding. Lautt was convicted on charges of conspiracy to defraud the United States, and procurement of citizenship or naturalization unlawfully.
According to court records and evidence presented at trial, Khan and Lautt submitted fraudulent documents to the U.S. Department of State (DOS) and U.S. Citizenship and Immigration Services (USCIS), which enabled Khan to immigrate to the United States in 2003 and later become a naturalized U.S. citizen in 2009. In order to further the conspiracy, Ijaz and Vera concealed Ijaz Khan’s wife and children in Pakistan. The conspiracy included eleven separate attempts to obtain immigration benefits by fraud, five of which were successful and another five of which were still pending as of the date of indictment. According to court records, Ijaz Khan used his fraudulently-obtained U.S. citizenship to cause the fraudulent immigration and naturalization of his four oldest children. Khan also filed petitions on behalf of his brother, mother and two youngest children.
Khan faces a maximum penalty of 20 years in prison, while Lautt faces a maximum penalty of 10 years in prison. Both will be sentenced on May 5. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Steve A. Linick, Inspector General for the Department of State; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, made the announcement after the verdict was accepted by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Katherine L. Wong and Special Assistant U.S. Attorney Brian Harrison are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-130.
Lower Brule Man Charged with Assault and Firearm OffensesRead the Press Release
United States Attorney Randolph J. Seiler announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer, Assault with a Dangerous Weapon, and Brandishing of a Firearm During a Crime of Violence.
Philip Anthony Battese, age 36, was indicted on January 19, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 6, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $750,000 fine, up to life of supervised release, and $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on December 21, 2016, Battese forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with a Lieutenant from the Bureau of Indian Affairs, while that Lieutenant was engaged in the performance of his official duties. During the assault, Battese knowingly brandished a firearm at the officer during and in relation to this crime of violence.
The charges are merely accusations and Battese is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Battese was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Little Eagle Man Charged with Child Abuse and Assault with a Dangerous WeaponRead the Press Release
United States Attorney Randolph J. Seiler announced that a Little Eagle, South Dakota, man has been indicted by a federal grand jury for Child Abuse and Assault with a Dangerous Weapon.
Chavez Spotted Horse, age 40, was indicted on January 19, 2017. He appeared before U.S. Magistrate Judge William D. Gerdes on January 27, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 60 years in custody and/or a fine of up to $1,500,000, 3 years of supervised release, and $600 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between November 27, 2016, and November 30, 2016, Spotted Horse hit a juvenile victim on three separate occasions with a kitchen spoon, a rod, and a plastic hanger.
The charges are merely accusations and Spotted Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Spotted Horse was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney, Deborah R. Gilg, announced that on February 8, 2017, Julio Luis Rivera, 34, of Lincoln, was sentenced to 15 years and eight months, (188 months), for his role in a conspiracy to distribute and possess with the intent to distribute 500 grams or more of a substance containing methamphetamine between July 3, 2014, and November 11, 2015. He was also given a 14-month sentence for violating the terms of a supervised release order imposed after a prior drug conviction. That sentence will run concurrent with (at the same time as) the 188-month sentence. Following the prison term, Rivera will serve five years on supervised release. He was also ordered to pay a $100 special assessment.
Information obtained by law enforcement indicated that Rivera was responsible for the distribution of at least 500 grams, (approximately 18 ounces) of methamphetamine during that time. Rivera was contacted by Lincoln Police officers, and he was found in possession of a small amount of methamphetamine. On November 11, 2015, Rivera was stopped by Lincoln Police officers and arrested on an outstanding warrant for violating the terms of his supervised release order. At that time, officers found approximately two grams of methamphetamine in his possession. Rivera told officers he was intending to deliver the methamphetamine found in his possession to another person for $40. He said he was acquiring ½ ounce to one ounce of methamphetamine per week and that he had five to six regular methamphetamine customers.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Last of Four Illegal Aliens Involved in Home Invasion Plot Sentenced to Year in PrisonRead the Press Release
BIRMINGHAM – The last of four illegal aliens prosecuted in federal court for their roles in a March 2016 plot to invade a Calhoun County house, take a safe from it and deliver the residence’s occupants to a Dallas-based enforcer for drug organizations was sentenced today to one year and a day in prison, announced Acting U.S. Attorney Robert O. Posey, Homeland Security Investigations Special Agent in Charge Raymond R. Parmer Jr., and FBI Special Agent in Charge Roger Stanton.
U.S. District Judge R. David Proctor sentenced LUIS DIAZ-ZAVALA, 34, of Honduras, on one count of possessing a firearm by an alien illegally in the United States. Diaz-Zavala pleaded guilty to the charge in October. He is already in custody.
“Oxford Police and agents of ICE and the FBI are to be applauded for their cooperative work that prevented what could have been a violent home invasion at the behest of a drug-trafficker,” Posey said. “This office and our law enforcement partners continue our commitment to capture and prosecute people intent on violence who are in the country illegally.”
“Keeping our communities safe from violent criminals remains a priority for HSI,” Parmer said. “Together with our state and federal partners we will continue to target these criminal elements and ensure the safety of our citizens.”
"Thanks to the excellent work by the Oxford Police Department, a potentially deadly violent crime was thwarted,” Stanton said. “This case is an outstanding example of cooperation between local and federal partners, and I am proud of the work done by all involved on this investigation. Diaz Zavala deserves every day of this sentence.”
Diaz-Zavala is one of four men arrested in Oxford last March who have acknowledged they were hired by a putative security company to conduct the home raid in Alabama. Diaz-Zavala and his associates were provided gear for the job, which included firearms, according to his plea agreement with the government.
Diaz-Zavala’s associates, who all pleaded guilty last year to possessing firearms as aliens in the United States illegally, are CAMILO ANTONIO ESPINOZA-MEDRANO, 32, JOSUE LOPEZ-BENEGAS, 24, both of Honduras, and ENRIQUE ECHEVERRIA-BENITEZ, 28, of Mexico. All three men were sentenced last year to two years and three months in prison.
After completing their prison terms, all four men will be delivered to U.S. Immigration and Customs Enforcement to begin deportation proceedings.
According to Diaz-Zavala’s plea agreement and other court documents, Oxford Police stopped a vehicle carrying Espinoza-Medrano, Lopez-Benegas and Echeverra-Benitez on March 25 and recovered four pistols: a stolen Smith & Wesson SD9, a loaded Caspian Arms .45-caliber, a Smith & Wesson M&P 9mm, and a SIG Sauer SP2022 and loaded magazines. They also recovered a black Airsoft rifle, a tactical vest with attached Bowie knife and .45-caliber and 9mm ammunition in the pockets, handcuffs, a ski mask, rope and a machete.
Oxford Police stopped Diaz-Zavala in a separate vehicle on the same date and recovered a security guard badge, two shirts emblazoned with “FBI,” and a duty belt with handcuffs and a holster. Diaz-Zavala later told law enforcement officers that he had possessed one of the firearms recovered from the vehicle carrying his associates.
Lopez-Benegas told investigators after his arrest that a friend had called him in early March wanting him to travel to Alabama to do a “security job” that would pay him $60,000 once the job was completed, according to Lopez-Benegas’ arrest complaint. The job was supposedly arranged through a security company, owned by the friend's boss, who Lopez-Benegas knew as an enforcer and debt collector for drug organizations. The job involved taking a safe from occupants at an Alabama residence identified by GPS coordinates, and once the residence and safe were secured, Lopez-Benegas and his associates were to turn over the occupants to the boss, according to the arrest complaint.
ICE-HSI, the FBI and Oxford Police investigated the case, which Assistant U.S. Attorney Austin D. Shutt is prosecuting.
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Kaiser Permanente Pays $850,000 to Settle Allegations of Faulty Record KeepingRead the Press Release
FRESNO, Calif. — Kaiser Foundation Health System Inc. has paid $850,000 to settle allegations that a Kaiser Permanente pharmacy in Modesto violated the Controlled Substances Act (CSA) by improperly filling defective prescriptions and by failing to maintain accurate records, U.S. Attorney Phillip A. Talbert announced.
The settlement resolves allegations that a large percentage of prescriptions that the pharmacy filled were incomplete, lacking the patient and dosage information required by the CSA’s implementing regulations. Additionally, the settlement resolves allegations that the pharmacy failed to maintain accurate documentation of incoming and outgoing controlled substances. The investigation identified discrepancies in comparing the pharmacy’s purchase and dispensing records with the actual controlled substances on hand at the pharmacy. Kaiser cooperated with the investigation and has agreed to implement protocols to minimize the chance of future violations.
“One purpose of the CSA is to ensure that pharmacies maintain accurate records to minimize the chance of diversion of powerful and potentially addictive drugs, which wreak havoc on our communities and destroy lives,” U.S. Attorney Talbert said. “Large pharmacy chains and health care conglomerates like Kaiser dispense a high volume of controlled substances to customers and members. Strict compliance with the CSA’s recordkeeping provisions by these entities is imperative.”
“Health care providers and pharmacies that don’t fully comply with the CSA give the public the short end of the stick. DEA will hold entities dispensing controlled substances accountable for their actions to protect public health and safety,” stated DEA Special Agent in Charge John J. Martin.
This case was the product of an investigation by the Fresno DEA Diversion Group. Assistant U.S. Attorney Vincente A. Tennerelli represented the United States in this matter.
Joplin Woman Pleads Guilty to False Tax ReturnRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., woman pleaded guilty in federal court today to filing a false tax return as part of a scheme that resulted in at least $138,000 in refunds.
Tara F. Garrett, 36, of Joplin, waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges her with making a false claim upon the government.
By pleading guilty today, Garrett admitted that she prepared and electronically submitted at least 20 fraudulent federal income tax returns on behalf of herself and others from February 2010 through April 15, 2015. Garrett used Turbo Tax software on her computer to submit the returns, which included false wage and/or income information on each return for the purpose of increasing the earned income credit, which in turn increased the amount of the tax refund. Those refunds were electronically deposited into Garrett’s bank account or split between her account and the account of the individual for whom the return was prepared.
Garrett kept a significant portion of each refund as payment for preparing the fraudulent tax returns. The total amount of refunds claimed by Garrett, for herself and others, through these tax returns totaled at least $138,135.
Under federal statutes, Garrett is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Casey Clark and Steven Mohlhenrich. It was investigated by IRS-Criminal Investigation, the FBI and the Joplin, Mo., Police Department.
Joint Law Enforcement Operation Leads to Conviction of East Bay Counterfeit Drug ManufacturerRead the Press Release
SAN FRANCISCO – David Beckford was sentenced to more than 10 years in prison for his role in a conspiracy to manufacture counterfeit Xanax pills, for engaging in international money laundering, and for his use and possession of a firearm in furtherance of drug trafficking and in violation of the felon-in-possession statute, announced United States Attorney Brian J. Stretch; Drug Enforcement Administration Special Agent in Charge John J. Martin; Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf; and U.S. Food and Drug Administration Office of Criminal Investigations Special Agent in Charge Lisa L. Malinowski. The sentence was issued by the Honorable Jeffrey S. White, U.S. District Judge, following a guilty plea entered in November of 2016.
According to the guilty plea, Beckford, 28, of Oakland, Calif., admitted that from January 17, 2014, through December 12, 2015, he engaged in a scheme to import controlled substances from China and other foreign sources, obtain manufacturing equipment, including a press to make pills, and press fake Xanax pills at locations in the Northern District of California. Beckford acknowledged the pills he manufactured were designed to appear as close as possible to brand-name Xanax pills. Beckford further admitted to wiring money to China and other foreign countries to pay for the materials that he used to operate his illegal Xanax manufacturing business. In total, Beckford was found to be responsible for 161,474 counterfeit Xanax pills. Beckford further admitted to possessing firearms and ammunition.
This investigation is one example of law enforcement efforts to combat prescription pill abuse and counterfeit pill manufacturing. On May 12, 2016, a federal grand jury returned a thirty-three count superseding indictment charging Beckford and four co-defendants with various crimes related to the scheme. For his role, Beckford was charged with conspiracy to manufacture, distribute, and possess with intent to distribute a controlled substance, in violation of 21 U.S.C. § 846; three counts of substantive manufacture, distribution, and possession with intent to distribute a controlled substance, in violation of 21 U.S.C. § 841(a); being a felon in possession of a firearm and ammunition, in violation of 18 U.S.C. § 922(g)(1); possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c); sale of counterfeit drugs, in violation of 21 U.S.C. § 331(i)(3); conspiracy to engage in international money laundering, in violation of 18 U.S.C. § 1956(h); twenty-three counts of substantive international money laundering, in violation of 18 U.S.C. § 1956(a)(2)(A); and trafficking in a counterfeit drug, in violation of 18 U.S.C. § 2320(a)(4). Pursuant to his plea agreement, Beckford pleaded guilty to all but the substantive counts of money laundering and manufacture, distribution, and possession with intent to distribute a controlled substance.
“Prescription drug abuse threatens the very fabric of our society,” said U.S. Attorney Stretch. “David Beckford intentionally and illegally manufactured and distributed counterfeit prescription drugs. His plan to put more than 150,000 counterfeit pills into circulation presented a serious risk to public safety. This office is proud of the work done by our federal law enforcement partners to put an end to his scheme.”
“Mr. Beckford’s sentence reflects the seriousness of this crime,” said Michael T. Batdorf, Special Agent in Charge, IRS-Criminal Investigation. “The defendant was the mastermind of this elaborate scheme. He found international suppliers through the internet and solicited others, including his girlfriend, to handle the wire transfer payments of funds to the overseas suppliers. IRS CI is committed to following the money to the other side of the world and back so we can financially disrupt and dismantle narcotics trafficking organizations.”
“The FDA’s regulation of the production and distribution of prescription drugs is designed to ensure that they are safe and effective. Criminals who manufacture and sell drugs outside of FDA’s oversight put the health of U.S consumers at risk,” said Lisa L. Malinowski, Special Agent in Charge, FDA Office of Criminal Investigations, Los Angeles Field Office. “Our office will continue to pursue and bring to justice those who endanger the public’s health by distributing counterfeit, unapproved, and adulterated prescription medications.”
“Prescription drug misuse is a national epidemic affecting all segments of society. Sadly, individuals like David Beckford who produced counterfeit pills for personal gain, feed this problem,” stated Drug Enforcement Administration Special Agent in Charge John J. Martin. “As DEA continues an unprecedented dialogue with foreign counterparts to address the availability of pharmaceuticals and manufacturing equipment, we will simultaneously investigate traffickers operating in our own backyard.”
In addition to the 123-month prison term, Judge White also sentenced the defendant to a three-year period of supervised release and forfeiture of currency, firearms, ammunition, and custom jewelry. The defendant currently is in custody and will begin serving the sentence immediately. Also sentenced as part of the conspiracy were co-defendants Stephan Florida and Isaiah Clayton, whose sentences were for 14 months’ imprisonment and 36 months’ probation, respectively, for their roles in the scheme. In addition, co-defendant Beau Sankene has pleaded guilty to crimes related to her roles in the conspiracy and has not yet been sentenced.
Assistant U.S. Attorneys Sheila Armbrust and Marc Wolf prosecuted the case with the assistance of Ana Guerra and Yanira Osorio. The prosecution is the result of an investigation by the Drug Enforcement Administration, Internal Revenue Service, Criminal Investigation, and U.S. Food and Drug Administration Office of Criminal Investigations.
Jamestown Man Pleads Guilty to Child Pornogrpahy ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y.-Acting U.S. James P. Kennedy, Jr. announced today that Christopher Whitford, 45, of Jamestown, NY, pleaded guilty to distribution of child pornography before U.S. District Judge Elizabeth A. Wolford. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Mary C. Baumgarten, who is handling the case, stated that on May 1, 2016, the defendant, using a peer to peer file sharing program, shared files with an undercover law enforcement officer. On June 23, 2016, a federal search warrant was executed at the defendant’s residence at 42 West 13th Street, Jamestown, New York, during which several items of electronic media were seized, and forensic analysis revealed images and videos constituting child pornography were stored on those items. The images and videos that the defendant previously shared with the undercover officer were among those images. Whitford had approximately 2405 images and 1188 videos constituting child pornography.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Sentencing is scheduled for June 13, 2017 at 2:00 p.m. before Judge Wolford.
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Isleta Pueblo Man Sentenced to Prison for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Felipe Lucero, 25, an enrolled member of the Isleta Pueblo who resides in Los Lunas, N.M., was sentenced today in federal court in Albuquerque, N.M., to 33 months in prison followed by three years of supervised release for his conviction on an assault charge.
Lucero was arrested on May 12, 2016, on an indictment charging him with assault with a dangerous weapon, a vehicle, and assault resulting in serious bodily injury. According to the indictment, Lucero committed the crimes on Dec. 27, 2015, on the Isleta Pueblo in Valencia County, N.M.
On Nov. 14, 2016, Lucero pled guilty to assault with a dangerous weapon and admitted that on Dec. 27, 2015, he injured the victim by intentionally driving a motor vehicle towards the victim and hitting him with an open car door.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and the Pueblo of Isleta Tribal Police Department. Assistant U.S. Attorney Joseph Spindle prosecuted the case.
Hayward Resident Sentenced to over 17 Years’ Imprisonment for Trafficking CocaineRead the Press Release
SAN FRANCISCO – Leshawn Lawson was sentenced to 214 months in prison for possession with intent to distribute cocaine, announced United States Attorney Brian J. Stretch and Drug Enforcement Administration Special Agent in Charge John J. Martin. The sentenced was handed down yesterday by the Honorable Phyllis J. Hamilton, United States District Judge, who found Lawson guilty of the drug charge after a bench trial in July of last year.
According to court papers, Lawson, 41, of Hayward, Calif., acknowledged he was driving a white Bentley in Livermore, Calif., when he was pulled over by a Livermore police officer. The officer seized more than $10,000 in cash from Lawson and found packaging in the trunk of the car for ten kilograms of cocaine. Lawson admitted that at the time he was pulled over, he knew a controlled substance was in the trunk. Testing revealed that there were actually 9,957 grams of 87.6% pure cocaine in the trunk of the Bentley. A federal grand jury indicted Lawson on February 19, 2015, charging him with one count of possession with intent to distribute cocaine, in violation of 21 U.S.C. § 841(a)(1). Judge Hamilton found Lawson guilty of the charge after a bench trial on July 6, 2016.
In addition to the prison term, Judge Hamilton sentenced Lawson to a five-year period of supervised release. Lawson has been in custody since his arrest and will begin serving his sentence immediately.
Assistant U.S. Attorneys Sheila Armbrust and Aaron Wegner are prosecuting the case with the assistance of Michelle Alter and Yanira Osorio. The prosecution is the result of an investigation by the DEA and the Livermore Police Department.
Grand Jury Returns Indictment of Co-Conspirator in Scheme to Defraud Herman Miller IncRead the Press Release
Kevin Grimm of Coopersville Charged with Conspiracy and Money Laundering
GRAND RAPIDS, MICHIGAN — Acting U.S. Attorney Andrew Birge announced today that a federal grand jury handed down a two-count indictment against Coopersville, Michigan, resident Kevin John Grimm alleging that he conspired with Jerry Akers to defraud furniture manufacturer Herman Miller Inc. in a vendor invoicing scheme. Grimm also was charged with laundering proceeds of the fraud by making a $155,000 payment to a Florida yacht dealer toward the purchase of a 49-foot sailboat in 2015.
The indictment alleges that Grimm and Akers conspired with each other to devise and execute a scheme to defraud Herman Miller involving Grimm’s creation of a company, KJ Gas Transportation, LLC, to submit false and fraudulent invoices for payment. The indictment further alleges that Grimm’s company never provided any natural gas ordering or transportation services to Herman Miller as falsely represented in invoices that Grimm e-mailed to Herman Miller personnel. The indictment alleges that, between June 2010 and July 2015, the fraud scheme generated approximately $1,772,726 in payments to Grimm’s company, KJ Gas Transportation, LLC.
Akers pled guilty in December 2016 to a federal charge of conspiracy to commit mail fraud and wire fraud against Herman Miller for his role in the scheme. When Akers was charged, his alleged co-conspirator was known to the U.S. Attorney’s office but not identified in publicly-filed court documents. Akers has admitted to conspiring with Grimm to fraudulently invoice Herman Miller for natural gas transportation services never provided by Grimm’s company. United States District Judge Paul L. Maloney will sentence Akers on May 1, 2017, in Kalamazoo.
This matter is being investigated by the Grand Rapids office of the Federal Bureau of Investigation.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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Four Defendants Sentenced to Prison in Missoula Carjacking CaseRead the Press Release
MISSOULA - The United States Attorney’s Office announced today the sentencing results of four individuals for conspiracy to commit robbery, carjacking, kidnapping and other crimes. On or around May 27, 2016, in Missoula County, Thomas Earl Dempsey, Nick West, Carissa Lynn Kopp, and Hannah Nichole Parker robbed Deano’s General Store in Missoula. Kopp and Parker drove the “getaway” car, while Demspey and West entered the store and demanded money at gunpoint. They robbed Deano’s of $3,200. Meanwhile, Kopp and Parker had driven away and left Dempsey and West stranded. Dempsey and West hijacked the car of a family in the parking lot, as a member of that family was describing the heist to 911 Dispatch.
With the kidnapped family still in the car, Dempsey and West led the Missoula County Sheriff’s Office and Missoula Police Department on a high-speed chase. There were five victims in the car with the kidnappers, including a mother, father, grandmother, and two children. During the chase, Dempsey fired at the police. Eventually Dempsey and West stopped the car and ran. They were arrested a short time later.
Today, Dempsey was sentenced to 312 months in prison followed by 5 years supervised release for his plea of guilty to conspiracy to commit robbery affecting commerce, in violation of 18 U.S.C. § 1951(a), carjacking, in violation of 18 U.S.C. § 2119, kidnapping in violation of 18 U.S.C. § 1201(a)(1), and possessing and discharging of a firearm in furtherance of a crime of violence in violation of 18 U.S.C. § 924(c)(1)(A)(iii).
West was sentenced to 180 months in prison followed by 5 years supervised release for his plea of guilty to the crimes of conspiracy to commit robbery affecting commerce, in violation of 18 U.S.C. § 1951(a), carjacking, in violation of 18 U.S.C. § 2119, and possessing and brandishing of a firearm in furtherance of a crime of violence in violation of 18 U.S.C. § 924(c)(1)(A)(ii).
Kopp was sentenced to 108 months in prison followed by 3 years supervised release for the crime of conspiracy to commit robbery affecting commerce, in violation of 18 U.S.C. § 1951(a).
Parker was sentenced to 60 months in prison followed by 3 years supervised release for the crime of conspiracy to commit robbery affecting commerce, in violation of 18 U.S.C. § 1951(a).
Chief Judge Dana L. Christensen handed down the sentences in Missoula. Additionally, the defendants were jointly ordered to pay $14,891.98 in restitution.
United States Attorney Michael W. Cotter stated, “I want to thank all members of the task force, the federal agents and local law enforcement for their quick thinking and extraordinary efforts in apprehending these dangerous criminals, and ensuring that no further injuries occurred. The United States Attorney’s Office looks forward to a continued partnership with all of the state and local law enforcement agencies that support and participate on the Montana Regional violent Crime Task Force.”
FBI Special Agent Monte Shaide added, “This case is a result of the diligence of investigators and demonstrates the effectiveness of the Montana Regional Violent Crime Task Force. The FBI takes pride in our valuable partnerships with local law enforcement, who all work tirelessly to maintain the safety of our communities.”
The case was investigated by the Missoula County Sheriff’s Office, the Missoula City Police Department, and the FBI’s Montana Regional Violent Crime Task Force which consists of the agencies previously mentioned as well as the Federal Bureau of Investigation, Montana Division of Criminal Investigation, Lewis and Clark County Sheriff’s Office, and Montana Department of Corrections Probation and Parole, and prosecuted by Assistant United States Attorney Tara Elliott.
Former Tama Police Chief Pleads Guilty to Stealing Gun and Lying to Federal AgentRead the Press Release
The former police chief of the Tama Police Department, who stole and pawned a Tama police service weapon and then lied to a FBI Special Agent who was investigating that theft and other missing property, pled guilty today in federal court in Cedar Rapids.
Jeffrey Filloon, age 47, from Toledo, Iowa, was convicted of one count of possessing, selling, and disposing of a stolen firearm and one count of making false statements to a FBI Special Agent.
In a plea agreement, Filloon admitted that, while serving as the chief of the Tama Police Department, he took and sold property, including three guns and four vehicles that were in police impound, from the Tama Police Department for his own personal benefit. Filloon further admitted that he lied to a FBI Special Agent who was conducting an investigation into the missing property by claiming he had bought one of the impounded vehicles when, in fact, Filloon had not bought it from the individual he claimed sold it to him.
Sentencing before United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Filloon remains free on conditions of release previously set pending sentencing. Filloon faces a possible maximum sentence of 15 years’ imprisonment, a $500,000 fine, $200 in special assessments, and six years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Iowa Division of Criminal Investigation and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 16-CR-95.
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Former Jail Administrator Pleads Guilty to Civil Rights Violation for Depriving Inmate of Medical CareRead the Press Release
Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division and U.S. Attorney Mark A. Yancey of the Western District of Oklahoma jointly announced that a former McClain County, Oklahoma, Jail Administrator, Wayne Barnes, pleaded guilty today in federal court to a civil rights violation that resulted in the death of an inmate in his custody.
On October 4, 2016, a federal grand jury in the Western District of Oklahoma returned a one-count indictment charging Barnes with a civil rights violation arising out of the death of a detainee, K.W., who was housed at the Jail in June 2013. The indictment alleged that K.W. suffered from diabetes that he needed insulin to control, that K.W. did not have insulin at the Jail from the time of his arrival on June 16, 2013, and that K.W. was not evaluated or treated by a doctor, or taken to a hospital for evaluation or treatment until the afternoon of June 19, 2013. On that day, according to the indictment, Barnes observed K.W. lying on the floor of his cell, unresponsive. Only then did Barnes direct a corrections officer to call emergency medical services, who arrived to find K.W.’s pupils fixed and dilated. K.W. died on June 21, 2013, never having regained consciousness. The indictment alleged that Barnes knew that K.W. had a serious medical condition and willfully failed to provide him with necessary medical care, and that his failure to do so resulted in K.W.’s death.
At the change of plea hearing held today before U.S. District Judge Stephen P. Friot, Barnes admitted that he was made aware between June 16, 2013 and June 19, 2013 that K.W. had been booked into the McClain County Jail, and that K. W. represented that he was a Type-1 diabetic who required insulin. Barnes further admitted that Barnes failed to obtain medical care for K.W. and that, in so doing, he willfully denied K.W.’s Constitutional right to medical care. Barnes also admitted that his failure to obtain the required medical care resulted in K.W.’s death.
“Every person in this country, including inmates in our jails, is protected by the U.S. Constitution, which requires jailers to provide necessary medical care to all persons in their custody,” said Acting Assistant Attorney General Wheeler. “The Civil Rights Division will hold corrections officers like this defendant accountable for failing to uphold their oaths to enforce and defend our Constitution.”
“Inmates deserve and the law requires that adequate medical care be provided by penal institutions,” said U.S. Attorney Yancey. “Denying needed medical treatment to cut costs is inhuman and unconstitutional.”
At sentencing, Barnes faces a maximum sentence of life in prison. Sentencing for Barnes will be set by the court on a future date.
This case was investigated by the Oklahoma City Division of the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Julia Barry of the Western District of Oklahoma and Deputy Chief Kristy Parker of the Criminal Section of the Civil Rights Division of the Department of Justice.
Former Harris County Deputy Arrested on Federal Child Pornography ChargesRead the Press Release
HOUSTON, Texas – A 30-year-old man who was residing in Spring has been taken into federal custody on charges of production of child pornography, announced U.S. Attorney Kenneth Magidson. Andrew Craig Sustaita was previously a Harris County deputy sheriff, but is no longer employed there.
A federal grand jury indicted Sustaita Feb. 1, 2017, on charges of production of child pornography. He was taken into custody today and is expected to make his initial appearance before U.S. Magistrate Judge Dena Hanovice Palermo tomorrow at 10:00 a.m.
If convicted, he faces a mandatory minimum sentence of 15 and up to 30 years for producing child pornography. The charge is also punishable by a $250,000 maximum possible fine. Upon completion of any prison term imposed, Sustaita could also face up to life on supervised release during which the court can impose a number of special conditions designed to protect the children and prohibit the use of the Internet. Sustaita would also be required to register as a sex offender upon conviction.
The Harris County Sheriff’s Office and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorney Sherri Zack is prosecuting the case, which 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."
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Former Fort Eustis Soldier Sentenced to 30 Years for Child PornographyRead the Press Release
NEWPORT NEWS, Va. – Daniel Joseph Salgat, 39, of Bay City, Michigan, a former Army soldier stationed at Fort Eustis, was sentenced today to 30 years in prison for production of child pornography. Salgat was also sentenced to a lifetime of supervised release and ordered to pay $1,202.58 to a victim of his crimes.
Salgat pleaded guilty on July 14, 2016. According to court documents, Salgat portrayed himself on-line as a young female in order to obtain images and videos of other young females. In several cases, Slagat blackmailed and threatened the children into producing images and videos. Salgat was ultimately identified and arrested by law enforcement after an investigation into his attempt to persuade a 10-year-old child he met online to come out of her house and perform oral sex on him.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney Lisa R. McKeel prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Justice Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:15-cr-95.
Former Altus Bank President Sentenced to Four Years in Federal Prison for Bank Fraud and Ordered to Pay $10 Million in Restitution to FDICRead the Press Release
Oklahoma City, Oklahoma –PAUL HAROLD DOUGHTY, 67, of Edmond, Oklahoma, the former president and chairman of First State Bank of Altus ("FSB"), was sentenced today to 48 months in federal prison after a jury convicted him in July of 2016 of bank fraud, conspiracy to commit bank fraud, misapplication of bank funds, making a false bank entry, and unauthorized issuance of a bank loan in connection with FSB and various loan schemes, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma. At today’s sentencing, United States District Judge David L. Russell also ordered Doughty to pay $10,120,166.58 in restitution to the Federal Deposit Insurance Corporation ("FDIC"). On December 2, 2016, FRED DON ANDERSON, 67, of Eagle Point, Oregon, was sentenced to 18 months in federal prison after pleading guilty to conspiring with Doughty to commit bank fraud. Anderson partnered with Doughty in several businesses headquartered in Altus. In July 2009, state banking regulators closed FSB due to the bank’s loan losses, and the FDIC was appointed as the bank’s receiver.
In April 2015, a federal grand jury charged Doughty and Anderson with fraud related to three alleged loan schemes: (1) a series of FSB loans to finance a real estate development in Routt County, Colorado; (2) a series of "senior life settlement loans" from FSB to support an Altus aerospace company; and (3) a $2 million unauthorized loan from FSB to a company under Doughty and Anderson’s control.
On July 1, 2016, after hearing seven days of trial evidence, a federal jury returned a guilty verdict against Doughty on ten counts relating to the three loan schemes. The jury acquitted Doughty on three charges. The jury heard that in 2006 and 2007, Doughty and Anderson recruited buyers for 19 Colorado real estate lots priced at approximately $700,000 each. Doughty approved and issued 14 lot loans to buyers, totaling more than $10,000,000 in loan proceeds for the seller, Mountain Adventure Property Investments, LLC ("MAPI"). MAPI was a Colorado company that Anderson had an indirect ownership interest in and where he served as president and manager. Evidence at trial showed that each loan exceeded Doughty’s individual lending authority at FSB, and most of the loans were issued without approval of FSB’s loan committee, including a $580,000 loan to Anderson’s personal company. The jury heard that Doughty and Anderson presented lots to borrowers as “zero money down” investments, and that the down payments for the purchases were often advanced or refunded to the buyers by Anderson on behalf of MAPI. Doughty and Anderson also assured the buyers that MAPI would make all payments on the loans to the bank. The jury heard that on the few occasions when Doughty presented a Colorado loan to FSB’s loan committee, he misrepresented the source and amount of borrowers’ down payments and the borrowers’ responsibility for making payment on the loans. In connection with these Colorado lot loans, the jury convicted Doughty of one count of bank fraud conspiracy, four counts of bank fraud relating to separate lot loans, and one count of unauthorized issuance of a loan to Anderson’s personal company.
Trial evidence also showed that Doughty funded five so-called "senior life settlement" loans through FSB in 2008. Each loan was $2.5 million, and one of the loans went to Anderson’s personal company. Doughty and Anderson recruited borrowers to take out these "self-paying" loans to provide money for investments in Altus-based Quartz Mountain Aerospace, Inc. ("QMA"). Evidence at trial showed that a portion of the loan proceeds was invested in QMA, and another portion would pay the loan’s interest. The remaining proceeds on the loans would buy and maintain third-party life insurance policies, where the death benefits on the third parties were intended to repay the loan’s principal. The jury heard that each loan exceeded Doughty’s lending authority, and that he issued at least $10,000,000 in senior life settlement loans without FSB’s loan committee or board approval. With each loan, Doughty and Anderson directed $125,000.00 in "service fees" to Altus Ventures, a company under their control. The jury heard evidence that at the time the loans were issued, the fees to Altus Ventures were not disclosed to FSB or to the borrowers taking out those loans. In connection with the senior life settlement loans, the jury convicted Doughty of one count of misapplication of bank funds and one count of a false entry in bank records related to the concealment of the fees to Altus Ventures.
Finally, the jury heard evidence that in January 2008, Doughty arranged a $2 million loan from FSB to Ethanol Products Group, LLC (“EPG”), a startup company in which both Anderson and Doughty had ownership interests. Evidence showed that Doughty advanced the $2 million from FSB, above his individual lending authority, without approval by FSB’s loan committee or board. Soon before issuing the loan, Doughty e-mailed Anderson his "cash strategy" for two other companies they controlled; the "strategy" showed all the EPG loan proceeds would be directed to companies controlled by Anderson and Doughty, ultimately diverting $100,000.00 in "officer bonuses" to Anderson and Doughty. The jury found Doughty guilty of one count of unauthorized issuance of a loan and one count of misapplication of bank funds related to the EPG loan.
At today’s sentencing, United States District Judge Russell sentenced Doughty to 48 months in federal prison, followed by three years of supervised release. Judge Russell also ordered Doughty to pay $10,120,166.58 in restitution to the FDIC. Doughty must report to federal prison on Monday, April 3, 2017.
On December 2, 2016, Judge Russell sentenced Anderson to 18 months in federal prison, followed by three years of supervised release. Anderson was also ordered to pay $3,250,409.12 in restitution to the FDIC. On April 14, 2016, Anderson pleaded guilty to a one-count Information charging him with conspiring with Doughty to commit bank fraud. As part of the plea agreement, the government agreed to dismiss at sentencing the charges against him from the indictment. Anderson testified as a witness for the government at Doughty’s trial.
These convictions are the result of an investigation conducted by the Federal Bureau of Investigation and the Federal Deposit Insurance Corporation - Office of Inspector General. The case was prosecuted by Assistant U.S. Attorneys Chris M. Stephens and K. McKenzie Anderson.
Florence Woman Sentenced for Defrauding Farm Assistance ProgramRead the Press Release
Contact Person: Winston Holliday, Jr. (803) 929-3000
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Roselyn Goodrum, age 47, of Florence, has been sentenced to 27 months imprisonment after pleading guilty to Conspiracy, a violation of 18 U.S.C. § 371, regarding the administration of farm-related disaster benefits. She also was ordered to pay over $146,000 in restitution to the federal government. United States District Judge R. Bryan Harwell of Florence presided over the hearing. Goodrum pled guilty September 1, 2016.
Evidence presented to the court established that Roselyn Goodrum was in charge of the Farm Service Agency’s (FSA) Florence office from 2006 through 2014. In February 2014, Ice Storm Pax caused extensive damage to farms in the Pee Dee. As a result, farmers could make claims to the FSA for financial assistance to clean up their land. Goodrum filed multiple false applications in the names of family members who were not entitled to these benefits, enriching herself and others. After FSA employees discovered the theft and suspended her, Goodrum surreptitiously re-entered the office and shredded incriminating documents. Overall, she illegally obtained $146,401 that she was not entitled to in fraudulent benefits.
The case was investigated by agents of the United States Department of Agriculture and prosecuted by Assistant United States Attorney Winston Holliday.
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Five Eagle Butte Residents Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that five Eagle Butte, South Dakota, residents convicted of Conspiracy to Distribute a Controlled Substance have now been sentenced by U.S. District Judge Roberto A. Lange.
On April 13, 2016, all five defendants were indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance. All five defendants pled guilty to that same charge.
Kristina Rae Lofton, a/k/a Kristina Rae Moran, age 37, pled guilty on November 8, 2016, and was sentenced on January 30, 2017, to 132 months in custody, to be followed by 5 years of supervised release.
Robert Earlwin Lofton, Jr., a/k/a Robert Erwin Lofton, Jr., a/k/a Blue Lofton, age 35, pled guilty on September 27, 2016, and was sentenced on December 19, 2016, to 78 months in custody, to be followed by 5 years of supervised release.
Tyler James Peterson, age 36, pled guilty on November 7, 2016, and was sentenced on January 30, 2017, to 70 months in custody, to be followed by 3 years of supervised release.
Stephanie Fawn Lofton, a/k/a Stephanie Fawn Clark, age 39, pled guilty on November 14, 2016, and was sentenced on January 31, 2017, to 68 months in custody, to be followed by 4 years of supervised release.
Ashley Marie Peterson, age 34, pled guilty on October 24, 2016, and was sentenced on January 23, 2017, to 38 months in custody, to be followed by 2 years of supervised release.
All of the defendants were also ordered to pay a $1,000 fine, a special assessment to the Federal Crime Victims Fund in the amount of $100, and the forfeiture of United States currency, firearms, and ammunition seized by law enforcement.
March of 2014 and July of 2016, Kristina, Robert and Stephanie Lofton, and Tyler and Ashley Peterson, knowingly and intentionally conspired and agreed with each other, and with others, to distribute methamphetamine, a Schedule II Controlled Substance, in and around the Cheyenne River Sioux Tribe Reservation and elsewhere in South Dakota. Beginning in March of 2014, the defendants received distributable quantities of methamphetamine from individuals who knew that they intended to engage in further distribution of the methamphetamine. The defendants further distributed the methamphetamine to others within South Dakota.
Kristina Lofton admitted to being the organizer or leader in the conspiracy and distributed methamphetamine to numerous participants. The Court found that Kristina Lofton was responsible for distributing between 1.5 and 5 kilograms of methamphetamine. Robert Lofton was arrested with firearms, ammunition, and U.S. currency, which were seized by law enforcement. The Court found that Robert Lofton, Stephanie Lofton, Tyler Peterson, and Ashley Peterson distributed between 350 grams and 500 grams of methamphetamine.
This case was investigated by the Federal Bureau of Investigation, the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
The defendants were immediately turned over to the custody of the U.S. Marshals Service following sentencing.
Federal Grand Jury Indicts Five in Connection with International Scheme to Fraudulently Import and Sell Filipino-Made Jewelry as Native American-MadeRead the Press Release
ALBUQUERQUE – A federal grand jury sitting in Albuquerque, N.M., returned an indictment on Tuesday charging five individuals with violating the Indian Arts and Crafts Act (IACA) by conspiring to import and fraudulently sell Filipino-made jewelry as Native American-made. This is the second indictment filed as the result of a continuing federal investigation that began in Jan. 2015 and is led by the U.S. Fish and Wildlife Service, with the assistance of the FBI and Homeland Security Investigations (HSI). The investigation targeted an international scheme to violate the IACA and has included the execution of eight search and seizure warrants and investigative activity in New Mexico, California, Alaska, Kentucky, Nevada and the Philippines.
The new indictment, which was publicly posted on the federal court’s website yesterday evening, was announced by U.S. Attorney Damon P. Martinez, Nicholas E. Chavez, Special Agent in Charge for the U.S. Fish and Wildlife Service, Office of Law Enforcement for the Southwest Region, Terry Wade, Special Agent in Charge of the Albuquerque Division of the FBI, and Waldemar Rodriguez, Special Agent in Charge of HSI in El Paso, Tex.
“The indictments filed as a result of this continuing investigation are not only about enforcing the law, but also about protecting and preserving the cultural heritage of Native Americans,” said U.S. Attorney Damon P. Martinez. “The cultural heritage of American Indians is a precious national resource and it is critically important that we provide the proper respect to those whose creations are seen by some as simple retail commodities to be exploited for profit. Eliminating the flow of counterfeit Native American art and craftwork provides a level playing field for the highly talented, dedicated, and hard-working producers of genuine Native American art.”
“The indictment we announce today is the result of the largest investigation ever into fraudulent Native American jewelry sales under the IACA,” said U.S. Fish and Wildlife Service Special Agent in Charge Nicholas E. Chavez. “We hope the charges filed as a result of this continuing investigation will deter this criminal activity, and we thank the law enforcement agencies that supported us and partnered with us during this investigation. Through these investigations, the U.S. Fish and Wildlife Service endeavors to protect and preserve the authenticity of jewelry produced by our country’s Native American artisans as it fulfills the commitment of the Secretary of the Department of the Interior to enforce this important law.”
FBI Special Agent in Charge Terry Wade said, “The FBI is proud to have worked with the U.S. Fish and Wildlife Service and the other agencies involved in this important investigation. Protecting the rich cultural heritage of Native Americans and other groups in this country is not just a law enforcement responsibility, it is the right thing to do.”
“HSI’s role in this investigation is another example of our commitment to protecting the intellectual property and cultural patrimony of Native Americans,” said HSI Special Agent in Charge Waldemar Rodriguez. “We will continue to support and assist our federal, tribal and local partners through the use of our cross border authority.”
The three-count indictment charges the following four defendants with conspiring to violate the IACA and the federal fraudulent importation, money laundering, wire fraud and mail fraud laws:
Imad Aysheh, 41, formerly of Gallup, N.M., who is identified as the owner and operator of Imad’s Jewelry, a jewelry manufacturing business in the Philippines;
Iyad Aysheh, 45, of Lodi, Calif., who is identified as the CEO and agent for IJ Wholesale, Inc., a California corporation that imports jewelry into the United States;
Nedal Aysheh, 37, formerly of Gallup, N.M., and
Raed Aysheh, 39, of American Canyon, Calif., who is identified as the owner and operator of Golden Bear & Legacy, LLC, a retail store in Calistoga, Calif., that specializes in Native American-style jewelry.
According to the indictment, from March 2014 through Oct. 2015, these four defendants conspired, to violate the IACA by displaying and offering for sale jewelry that was manufactured in the Philippines in a manner that suggested that it was Indian produced and the product of American Indian tribes. The indictment also alleges that these four defendants conspired to defraud the United States and its people of money by using the U.S. mail and wire communications to promote the importation and sale of the Filipino-made jewelry as Indian-made, and to launder the proceeds of those unlawful sales.
The indictment alleges that Imad Aysheh manufactured Indian-style jewelry using Filipino labor for import into the United States, and that Nedal Aysheh provided source material and trained the Filipino laborers who manufactured the jewelry. It further alleges that Iyad Aysheh imported the Filipino-made jewelry into the United States; Iyad Aysheh and Raed Aysheh accepted shipments of the Filipino-made jewelry in the United States; and that Iyad Aysheh, Nedal Aysheh and Raed Aysheh distributed the Filipino-made jewelry through jewelry stores purportedly specializing in the sale of Indian-made jewelry.
The indictment identifies 40 specific acts allegedly taken by the defendants in furtherance of the conspiracy, including several sales of the Filipino-made jewelry to individuals who were told that they were purchasing Indian-made jewelry in jewelry stores in Albuquerque and Santa Fe, N.M. It also identifies more than 50 financial transactions allegedly conducted by the defendants between April 2014 and Oct. 2015, involving more than $300,000, in amounts ranging from $1,100 to $60,000, in furtherance of the conspiracy.
Iyad Aysheh separately is charged with violating the IACA in Santa Fe County in the summer of 2015, by selling jewelry valued at more than $1,000 that was represented as Indian-made while knowing that the jewelry was not an Indian product.
A fifth defendant, Nael Ali, 53, of Albuquerque, who is identified as the owner and operator of Gallery 8 and Galleria Azul, two arts and crafts retail stores in Albuquerque’s Old Town, also is charged with violating the IACA in Bernalillo County in Oct. 2015. Ali is not charged in the conspiracy count.
The indictment includes forfeiture provisions which seek to forfeit to the United States any proceeds used in or traceable to the defendants’ alleged criminal activities. The indictment also seeks forfeiture of $20,109 in cash, $6,723.04 in a bank account, and more than 1,000 pieces of Indian-style jewelry seized pursuant to search and seizure warrants during the investigation.
The five defendants will be served with summonses requiring them to appear in federal court in Albuquerque to be arraigned on the indictment. If convicted of the charges against them, the defendants each face a statutory maximum penalty of five years in prison and a $250,000.00 fine. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
Nael Ali previously was charged in the first indictment filed as a result of this continuing investigation. That first indictment, filed in Oct. 2015, charged Ali and Mohammad Abed Manasra, also of Albuquerque, with conspiracy to violate the IACA and three substantive violations of the Act. Ali and Manasra have entered not guilty pleas to the charges against them and are presumed innocent unless convicted. Both are awaiting trial, which is scheduled for April 24, 2017.
The case was investigated by the Office of Law Enforcement for the Southwest Region of the U.S. Fish and Wildlife Service with assistance from the FBI and HSI. U.S. Marshals Service, DEA and New Mexico Department of Game and Fish assisted with investigation in New Mexico. The U.S. Fish and Wildlife Service’s Office of Law Enforcement for Region Eight and California Department of Fish and Wildlife provided support in Calistoga, Calif., and HSI provided support in La Habra, Calif. The U.S. Fish and Wildlife Service Attaché for Southeast Asia and the Philippine National Bureau of Investigations provided support in Cebu City, Philippines. Assistant U.S. Attorneys Kristopher N. Houghton and Sean J. Sullivan are prosecuting the case.
The IACA prohibits the offer or display for sale, or the sale of any good in a manner that falsely suggests that it is Indian produced, an Indian product, or the product of a particular Indian and Indian tribe. The law is designed to prevent products from being marketed as “Indian made,” when the products are not, in fact, made by Indians. It covers all Indian and Indian-style traditional and contemporary arts and crafts produced after 1935, and broadly applies to the marketing of arts and crafts by any person in the United States. IACA provides critical economic benefits for Native American cultural development by recognizing that forgery and fraudulent Indian arts and crafts diminish the livelihood of Native American artists and craftspeople by lowering both market prices and standards.
Aysheh IndictmentFederal Correctional Officer Indicted and Arrested for Introducing Contraband into the Metropolitan Detention Center in Guaynabo, PRRead the Press Release
San Juan, Puerto Rico – Carlos Ernesto Ochoa-Rocafort, Correctional Officer at the Metropolitan Detention Center (MDC) in Guaynabo, PR, was indicted and arrested for providing contraband in prison, announced U.S. Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. The FBI is in charge of the investigation in collaboration with the Department of Justice – Office of the Inspector General (DOJ-OIG) and ATF.
Ochoa-Rocafort is facing three counts of providing contraband in prison, one count of bribery of public officials and two counts of sale of ammunition to a prohibited person. The indictment also charges Ochoa-Rocafort along with co-defendant José Guzmán-Marrero for attempting to aid and abet possession with intent to distribute cocaine and possession of firearms in furtherance of a drug trafficking crime.
According to the indictment, in or about November 10 and 11 and December 9, 2016, Ochoa-Rocafort knowingly and intentionally provided and attempted to provide four cellular telephones to an inmate housed at MDC. In exchange he demanded and agreed to receive $2,000. On or about December 2016, Ochoa-Rocafort sold a firearm and ammunition to felons; and participated as an armed escort for what he believed was a multi-kilo transportation of narcotics.
“The defendant was supposed to provide supervision of inmates and enforce the rules and regulations governing MDC and the inmates’ conduct. Instead, he behaved like one of them, and violated federal law,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez. “This case should send a clear message to those who attempt to smuggle illegal contraband into a federal facility. We will not tolerate these type of activities and will prosecute these offenders to the full extent of the law.”
This case was investigated by the FBI with the collaboration of the Department of Justice-Office of the Inspector General and ATF and prosecuted by Assistant United States Attorney Seth Erbe.
The maximum penalties for these offenses are: one year for providing cellular phones to inmates, 15 years for bribery, 10 years for selling ammunition and gun to felon, a mandatory minimum of 10 years on the drug charge, and a mandatory consecutive five-year sentence for carrying firearms in furtherance of a drug transaction. An indictment is a formal accusation of criminal conduct, not evidence. Defendants are presumed innocent unless and until convicted through due process of law.
El Paso Behavioral Health Facility Pays $860,000 to Resolve False Claims Act Allegations Under Civil Settlement with United StatesRead the Press Release
Today, University Behavioral Health of El Paso, LLC (“UBH”) paid $860,000 under a civil settlement with the Department of Justice to resolve allegations under the False Claims Act that the hospital paid unlawful remuneration under the Anti-Kickback Act and violated the Stark Law when it improperly paid a physician who made referrals to the hospital pursuant to a personal services agreement.
That announcement was made today by United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division.
The allegations resolved in the settlement include the submission of false claims to Medicare that were tainted by the payment of kickbacks to a physician under the guise of a professional services agreement, in return for the physician’s referral of patients to UBH. Specifically, the physician received payments above fair market value, or for services not rendered, and made improper referrals to the hospital for Medicare-reimbursed services.
Federal law, including the Anti-Kickback Act and the Stark Law, seeks to ensure that services reimbursable by federal healthcare programs are based on the best interests of patients rather than the personal financial interests of referring physicians.
The settlement covers certain claims submitted to Medicare by UBH for the period from February 1, 2010, through December 31, 2013. The professional services agreement at issue was entered into by a previous owner of UBH. In October 2012, University Health Services, Inc. (“UHS”) acquired UBH, which operated the hospital known as University Behavioral Health, now known as the El Paso Behavioral Health System. UHS terminated the professional services agreement effective December 31, 2013.
The settlement announced today was the result of an investigation by the U.S. Attorney’s Office for the Western District of Texas and the Federal Bureau of Investigation with assistance from the U.S. Department of Health and Human Services, Office of Inspector General. Assistant United States Attorney Susan Strawn handled the investigation for the United States Attorney’s Office.
Correctional Officer at Federal Prison in Victorville Agrees to Plead Guilty to Taking Bribe to Smuggle Contraband to PrisonerRead the Press Release
RIVERSIDE, California – A federal correctional officer who worked at the United States Penitentiary in Victorville has agreed to plead guilty to a federal bribery charge for taking a $1,000 bribe to smuggle contraband to a prisoner inside the facility.
Ignacio Adrian Sobers Jr., 31, of San Bernardino, entered into a plea agreement that was filed today in United States District Court. Sobers agreed to plead guilty to one count of acceptance of a bribe by a public official.
Sobers was arrested by federal authorities on January 21 after receiving a $1,000 payment and a gift-wrapped package filled with contraband in a parking lot of a fast food restaurant in San Bernardino.
The contraband that Sobers received for the purpose of smuggling to the inmate included MP3 players, pornographic magazines, pornographic movies, all of which were objects prohibited from delivery to an inmate at USP Victorville and which defendant knew to be prohibited objects according to the plea agreement.
“With the full knowledge that his conduct was illegal and posed a threat to the security of the prison, this defendant betrayed his oath to the United States by accepting a bribe in exchange for smuggling contraband to a prisoner,” said United States Attorney Eileen M. Decker. “Law enforcement officers have a special duty to uphold the law and to act in the public’s interest, and this defendant’s failure to act in the public’s interest both presented an immediate threat of harm to the security of the prison and undermines public confidence in law enforcement in general.”
According to a criminal complaint filed when Sobers was arrested last month, prison officials were investigating the inmate for suspected illegal activity inside the prison. The inmate provided information that Sobers had agreed to provide him with contraband in exchange for bribes.
The inmate’s contact outside the prison cooperated with law enforcement during the January 21 incident in which Sobers accepted $1,000 in cash to smuggle the package to the inmate.
Sobers made his initial court appearance in this case on January 23, at which time he was released on a $10,000 bond.
Sobers is scheduled to be arraigned on February 22 in United States District Court.
Once he pleads guilty, Sobers will face a maximum statutory sentence of 15 years in federal prison.
The investigation in this case was conducted by the Justice Department’s Office of the Inspector General, Investigations Division, Los Angeles Field Office.
The case is being prosecuted by Assistant United States Attorney Julius J. Nam of the Riverside Branch Office.
Company Owner Admits to Supplying Butane to Make Illegal Hash OilRead the Press Release
Assistant U.S. Attorney Andrew J. Galvin (619) 546-9721
NEWS RELEASE SUMMARY – February 9, 2017
SAN DIEGO – The owner of a large butane supply company pleaded guilty to a drug charge today, admitting that his company illegally sold thousands of butane canisters to smoke shops, knowing that some of the butane would be used to illegally manufacture hash oil.
Bosco Kwon, the owner of BK Power Imports, Inc., admitted in his plea agreement that he knew the manufacture of hash oil, a marijuana concentrate, poses a significant risk of fires and explosions.
As part of his plea agreement, Kwon agreed to forfeit $1,026,614 and over 94,152 canisters of butane. Sentencing is scheduled for April 28, 2017 at 9 a.m. before U.S. District Judge Janis L. Sammartino.
Kwon pleaded guilty to a single count of selling drug paraphernalia. The Los Angeles-based business, which sold Power-branded butane, was the nation’s largest supplier of butane specifically designed for use in making hash oil.
Butane Hash Oil (BHO) is a marijuana concentrate, which is a Schedule I controlled substance. The manufacture of BHO is a violation of federal law, Title 21, US Code, Section 841. The manufacture of BHO is also a violation of California state law, Health and Safety Code, Section 11379.6
BHO is similar in appearance to honey or butter. It contains extremely high levels of tetrahydrocannabinol, or THC, and can be up to four times more potent than high grade marijuana. BHO is commonly manufactured by packing marijuana into a glass, plastic, or metal tube. Butane is then sprayed into the top of the tube. The butane strips the marijuana of its cannabinoid-containing oils, which drip from the bottom of the tube, often through a filter and into a holding container. The end product is highly-profitable and can be ingested as an oil, consumed in edibles, or solidified to make concentrated forms of cannabis known as “wax.”
According to admissions in Kwon’s plea agreement, BK Power Imports sold its butane to wholesalers and retailers in San Diego County and throughout the United States, including smoke shops “Greener Side of Life,” “Marry Jane House of Glass Inc,” “Twilight Zone,” “Smoke Tokes Inc,” “Puff and Stuff,” “Cali Kulture-Magic Glass,” and “The Grow Shop.” The butane was sold under the brand names Power, Power 5x, Power 7x, Power 9x, and Power 11x. Kwon imported in excess of 350,000 canisters of butane into the United States every month.
During the manufacture of BHO, butane, a flammable gas that is odorless, colorless, and heavier than air, can evaporate out of the substance and collect on the floor, accumulating to explosive levels without proper ventilation. This process creates an invisible, but very real, risk of fires, explosions, and chemical burns.
Since 2011, the manufacture of hash oil using Power butane has caused at least 54 fires and explosions, 29 serious injuries, and four deaths in California, Oregon, Nevada, and Washington, according to Homeland Security Investigations agents. In 2015, BK Power Imports and Kwon were sued because of an explosion and fire that occurred while two individuals made hash oil using Power butane. One of the individuals died while the other suffered third-degree and full-thickness burns over 40 percent of his body that kept him in an intensive care unit for nearly two months. Despite this lawsuit, Kwon continued to sell Power butane.
“Whatever one believes about marijuana use, the manufacture of hash oil is an extremely dangerous process and puts lives in danger,” said U.S. Attorney Alana Robinson. “We will do everything we can to safeguard the public.”
“Hash oil manufactured with butane gas has led to an alarming number of explosions and fires in recent years,” said Dave Shaw, special agent in charge for HSI San Diego. “HSI is committed to targeting the supply chains where butane gas is sold on the black market for use in hash oil labs. By going after the supply chains and the illicit proceeds, we are able to dismantle the distribution networks, which is a critical step toward shutting down a dangerous epidemic that has put the public’s safety in harm’s way for too long.”
This investigation follows the successful prosecution of the owners of the Newport Beach-based business Puretane. In that case, Puretane’s Chief Executive Officer and Chief Financial Officer admitted that they conspired to launder the proceeds of their illegal butane business. With these prosecutions, Homeland Security Investigations and the U.S. Attorney’s Office for the Southern District of California have shut down the nation’s two leading suppliers of butane designed for use in making hash oil.
DEFENDANT: Case Number 17CR331-JLS
Bosco Kwon Age: 53 La Habra, CA
SUMMARY OF CHARGES
Sale of Drug Paraphernalia – Title 21, U.S.C., Section 863
Maximum penalty: Three years in prison and $250,000 fine
AGENCY
Homeland Security Investigations
*Reporters interested in interviews may contact Assistant U.S. Attorney Andrew Galvin, at (619) 546-9721, or ICE PAO Lauren Mack at 619 719 7921.
Clarion Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
A man who received child pornography pled guilty today in federal court in Cedar Rapids.
Jonathan Sebert, age 24, from Clarion, Iowa, was convicted of one count of receipt of child pornography. At the plea hearing, Sebert admitted that, between 2012 and 2015, he knowingly received child pornography.
Sentencing before Chief United States District Court Judge Linda R. Reade will be set after a presentence report is prepared. Sebert remains in custody of the United States Marshal pending sentencing. Sebert faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, a $100 special assessment, and supervised release for 5 years to life following any imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Wright County Sheriff’s Office and the Mason City Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 16-3054.
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Chicago Man Charged with Sex Trafficking for Recruiting Minors to Engage in Sex ActsRead the Press Release
CHICAGO — A Chicago man was arrested today on federal sex trafficking charges for allegedly using Facebook to recruit minors to participate in sex acts with him and others.
BRYAN OSBORNE, 27, posed as a woman named “Lonyae Johnson” to communicate via Facebook with more than 2,000 individuals, many of them minors, according to a criminal complaint and affidavit filed in federal court in Chicago. Osborne, as Johnson, enticed several children to agree to appear in films depicting child pornography, on the promise that they would be paid thousands of dollars, the complaint states. Osborne, however, told the minors that they would first need to have sex with a producer named “Trey,” purportedly so that Trey could make sure the minors were suitable for filming, according to the charges.
Several of the minors agreed to the arrangement and met with Trey, who turned out to be Osborne, the complaint states. Osborne, posing as Trey, engaged in sex acts with the minors inside and outside of a building in the Austin neighborhood on Chicago’s West Side, according to the complaint. He later fabricated various reasons for why the minors would not be paid, the complaint states.
The complaint charges Osborne with one count of sex trafficking and one count of enticing a minor to engage in a sex act. He appeared this afternoon before U.S. Magistrate Judge Michael T. Mason and was ordered to remain in federal custody. A detention hearing was scheduled for Feb. 16, 2017, at 9:00 a.m.
The complaint was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent in Charge of the Chicago office of the Federal Bureau of Investigation; Eddie Johnson, Superintendent of the Chicago Police Superintendent; James D. Robnett, Special Agent-in-Charge of the Chicago Office of the Internal Revenue Service Criminal Investigation Division; and Cook County Sheriff Thomas J. Dart. The Cook County State’s Attorney’s Office Investigations Bureau provided valuable assistance.
The government is represented by Assistant U.S. Attorneys Bethany Biesenthal, Michelle Petersen and Rebekah Holman.
According to the charges, Osborne used the Facebook handle “lonyae.gotafattie” to pose as Johnson. Osborne told some of the minors that they could be paid larger sums if they referred even younger children to Osborne for participation in child pornography, the complaint states. Osborne also enticed some minors on Facebook to engage in prostitution with other individuals he had recruited, according to the complaint.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count is punishable by a statutory minimum sentence of ten years in prison, and a maximum of life. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children at 1-800-843-5678. The hotline is available 24 hours a day, seven days a week.