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Monday 6 February 2017
CMU Student Sentenced to Probation for Causing Damage to Others’ ComputersRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to three years’ probation, with 300 hours of community service and computer monitoring, on his conviction of attempting and conspiring to cause damage to others’ computers, Acting United States Attorney Soo C. Song announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Morgan Culbertson, 22, of Pittsburgh, Pa.
According to information presented to the court, Culbertson, known as “Android” on the online computer hacking forum known as Darkode, developed and sold malware known as Dendroid, which was used to infect victims’ Google Android phones. Once infected, Dendroid would allow Culbertson and his conspirators to steal information stored on the cell phones and to remotely use features on the phones.
Assistant United States Attorney James T. Kitchen prosecuted this case on behalf of the government.
Acting United States Attorney Soo C. Song commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Culbertson.
Buffalo Man Pleads Guilty to Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Robert Pritchett, 21, of Buffalo, NY, pleaded guilty to production of child pornography, before U.S. District Judge Lawrence J. Vilardo. The charge carries a mandatory minimum penalty of 15 years in prison and a maximum of 30 years.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that in October of 2015, Robert Pritchett, utilizing the name “Jess Allen,” began communicating with Victim 1, a 17-year-old female from New Jersey, via text messages and chat messages over the internet. The defendant convinced her to travel to New York to live with him. Pritchett misrepresented his identity and made fraudulent promises regarding where she would live upon her arrival. On November 6, 2015, after picking up Victim 1 at the bus station, the two engaged in sexual activities, and then traveled to a motel in Tonawanda, NY. While at the motel, Pritchett had Victim 1 engage in prostitution services and engaged in additional sexual activities with Victim 1. During the sexual activity, the defendant used Victim 1’s Apple iPhone to record some of the activity.Pritchett also engaged in online sexual communications and/or sexual contact with three other minor females. In June of 2014, using Kik, the defendant sent sexually explicit photographs by a 14-year-old female (Victim 2) from Buffalo. This then lead to communications with a 15-year-old female friend of Victim 2, also from Buffalo (Victim 3). Victim 3 went with the defendant to the Galleria Mall on July 3, 2014, in an effort to get the defendant to delete the pictures he had of Victim 2. While at the mall, Pritchett engaged in repeated sexual acts with Victim 3 inside a movie theater and near a loading dock of a department store.
Between November, 2013 and March, 2014, the defendant communicated with a 15-year-old female from East Aurora (Victim 4), using ooVoo, a video and instant messaging chat application. During those communications, Victim 4 engaged in sexually explicit conduct while video chatting with the defendant. During the video chat, Pritchett created two screen shots that depicted Victim 4 engaged in sexually explicit conduct, and saved those screen shots to his cellular telephone.
The plea is the culmination of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Adam s. Cohen, Special Agent-in-Charge, along with Detectives from the Cheektowaga Police Department, under the direction of Chief David Zack.
Sentencing is scheduled for May 17, 2017 at 1:00 p.m. before Judge Vilardo.
Avon Man Pleads Guilty to Federal Charges Stemming from Hartford Soccer Stadium ProjectRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MITCHELL ANDERSON, 52, of Avon, pleaded guilty today before U.S. District Court Judge Stefan R. Underhill in Bridgeport to fraud and money laundering charges stemming from a scheme involving the redevelopment of Dillon Stadium in Hartford and a plan to bring a professional soccer team to the city.
According to court documents and statements made in court, in September 2014, the City of Hartford entered into a professional services agreement with ANDERSON’s company, Premier Sports Management Group (“PSMG”), to secure a professional soccer team and to develop a new, 9,000 seat facility at the Dillon Stadium location. Under the terms of the agreement, PSMG was entitled to receive $775,000 for serving as the project manager for the $12 million plan. In February 2015, ANDERSON joined with a business partner who agreed to be the majority owner of the professional soccer team. ANDERSON and his business partner represented to various city officials that PSMG and the partner’s consulting company had merged for purposes of completing the Dillon Stadium project and securing the professional soccer team.
Beginning in approximately March 2015, ANDERSON submitted invoices to the city for reimbursement to PSMG sub-contractors working on the project. However, rather than pay the total amounts owed to PSMG’s subcontractors, ANDERSON and his business partner directed more than $1 million that PSMG received from the city to themselves, their businesses and other entities not related to the Dillon Stadium project. ANDERSON and his business partner also secured invoices from subcontractors who had not performed work for the project, which ANDERSON caused to be submitted to the city as if the work had been performed. ANDERSON then illegally used the proceeds of the fraud in a series of bank transactions to pay individuals and companies for expenses unrelated to the Dillon Stadium project.
ANDERSON pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud, an offense that carries a maximum term of imprisonment of 20 years, and one count of conducting illegal monetary transactions, an offense that carries a maximum term of imprisonment of 10 years. Judge Underhill scheduled sentencing for May 1, 2017.
ANDERSON has agreed to make restitution in the total amount of $1,134,595.37 to the City of Hartford and two subcontractors of the Dillon Stadium project.
ANDERSON was arrested on June 23, 2016, as is released on a $100,000 bond.
This matter is being investigated by the Connecticut Public Corruption Task Force, notably the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division. The Task Force also includes members from the U.S. Department of Housing and Urban Development- Office of Inspector General, the U.S. Department of Health and Human Services – Office of Inspector General, U.S. Postal Inspection Service. The Hartford Police Department is also assisting the investigation.
The case is being prosecuted by Assistant U.S. Attorneys Sarah Karwan and Douglas Morabito.
Citizens are encouraged to report corruption to the Connecticut Public Corruption Task Force by calling 203-238-0505.
Arizona Man Sentenced to Prison for Trafficking in Pet Products with Counterfeit LabelsRead the Press Release
An Arizona man was sentenced today to serve 37 months in prison for trafficking in pet products with counterfeit labels into the United States.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; U.S. Attorney Kenneth Magidson of the Southern District of Texas; Special Agent in Charge E. Spencer Morrison of the Food and Drug Administration – Office of Criminal Investigations (FDA-OCI) Kansas City, Kansas, Field Office and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Houston Office made the announcement.
Allen Smith, 50, of Phoenix, Arizona, was sentenced today by U.S. District Judge David Hittner of the Southern District of Texas. In addition to his prison term, Smith was ordered to pay $867,150 in restitution and to forfeit $42,269 worth of illicit proceeds.
According to admissions made in connection with his plea, Smith was responsible for aiding and abetting the trafficking of over $1 million worth of veterinary products that were not manufactured for the U.S. market into the United States for distribution under false labels, including Frontline and Frontline Plus products manufactured by Merial Pharmaceutical Company (Merial) and Advantage and K9 Advatix products manufactured by Bayer. Smith intentionally trafficked in the products to deceive retail stores and consumers into believing that the products had received necessary Environmental Protection Agency (EPA) authorization to be manufactured for and approved for sale in the United States.
The FDA-OCI, HSI and the EPA investigated the case. Assistant Deputy Chief John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Jennifer Lowery of the Southern District of Texas are prosecuting the case. The U.S. Attorney’s Office of the Central District of California and the CCIPS Cybercrime Lab provided significant assistance.
Arizona Man Sentenced for Trafficking in Pet Products with Counterfeit LabelsRead the Press Release
HOUSTON - An Arizona man was sentenced today to serve 37 months in prison for trafficking in pet products with counterfeit labels into the United States.
U.S. Attorney Kenneth Magidson, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Special Agent in Charge E. Spencer Morrison of the Food and Drug Administration – Office of Criminal Investigations (FDA-OCI) Kansas City, Kansas, Field Office and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Houston Field Office made the announcement.
U.S. District Judge David Hittner of the Southern District of Texas sentenced Allen Smith, 50, of Phoenix, Arizona, today. Smith was also ordered to pay $867,150 in restitution and to forfeit $42,269 worth of illicit proceeds.
According to admissions made in connection with his plea, Smith was responsible for aiding and abetting the trafficking of more than $1 million worth of veterinary products that were not manufactured for the U.S. market into the United States for distribution under false labels. These included Merial Pharmaceutical Company (Merial) manufactured-products Frontline and Frontline Plus and others Bayer manufactured, such as Advantage and K9 Advantix. Smith intentionally trafficked in the products to deceive retail stores and consumers into believing that the products had received necessary Environmental Protection Agency (EPA) authorization to be manufactured and approved for sale in the United States.
The FDA-OCI, HSI and the EPA investigated the case. Assistant U.S. Attorney Jennifer Lowery of the Southern District of Texas and Assistant Deputy Chief John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) are prosecuting the case. The U.S. Attorney’s Office of the Central District of California and the CCIPS Cybercrime Lab provided significant assistance.
Architect of Offshore Fraud Haven and Orchestrator of More Than 40 Pump and Dump Schemes Sentenced to 6 and 12 Years in Prison, Respectively, for Executing A $250 Million Money Laundering SchemeRead the Press Release
BROOKLYN, N.Y. – Earlier today, Robert Bandfield, a U.S. citizen and resident of Belize, and Gregg R. Mulholland, a dual U.S. and Canadian citizen, were sentenced to 6 and 12 years in prison, respectively. In May 2016, Bandfield pleaded guilty to money laundering conspiracy for setting up an elaborate and fraudulent structure of shell companies and brokerage firms in Belize and the West Indies that enabled his clients to fraudulently manipulate the stocks of dozens of U.S. publicly-traded companies. That same month, Mulholland, the secret owner of Legacy Global Markets S.A. (Legacy), an offshore broker-dealer and investment management company based in Panama City, Panama and Belize City, Belize, pleaded guilty to money laundering conspiracy for fraudulently manipulating the stocks of more than 40 U.S. publicly-traded companies and then laundering more than $250 million in fraudulent proceeds through at least five offshore law firms. As part of the sentences, Bandfield was ordered to forfeit, among other things, $1 million and all his rights and interests in three corporate entities -- IPC Management Services LLC, IPC Corporate Services Inc. and IPC Corporate Services LLC (collectively, “IPC Corp”) -- that he founded and controlled in Belize, whereas Mulholland was ordered to forfeit, among other things, a Dassault-Breguet Falcon 50 aircraft, a Range Rover Defender vehicle, two real estate properties in British Columbia, and funds and securities on deposit at more than 25 bank and brokerage accounts.
The sentences were announced by Robert L. Capers, United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Kathy A. Enstrom, Acting Special Agent-in-Charge, United States Internal Revenue Service, Criminal Investigation, New York (IRS-CI); and Angel M. Melendez, Special Agent-in-Charge, New York, Homeland Security Investigations (HSI).
In addition to the agencies that led the investigation, Mr. Capers thanked the Securities and Exchange Commission (SEC), the Department of Justice’s Office of International Affairs (OIA), the Department of State’s Diplomatic Security Service (DSS) and the Financial Industry Regulatory Authority, Inc., Criminal Prosecution Assistance Group (FINRA CPAG) for their cooperation and assistance in the investigation.
According to the court filings and facts presented at the plea and sentencing hearings, between January 2009 and September 2014, Bandfield, Mulholland and their co-conspirators engaged in three interrelated schemes: (1) to induce U.S. investors to purchase stock in various thinly-traded U.S. public companies through fraudulent promotion of the stock, concealment of their ownership interests in the companies, and fraudulent manipulation of artificial price movements and trading volume in the stocks of those companies; (2) to circumvent the payment of capital gains taxes and the IRS’s reporting requirements under the Foreign Account Tax Compliance Act (FATCA); and (3) to launder the fraudulent proceeds from the stock manipulation schemes to and from the United States through debit cards and attorney escrow accounts. Between 2010 and 2014, Mulholland controlled a group of individuals (the Mulholland Group). Through these schemes, Bandfield helped his corrupt clients -- who included Mulholland and more than 100 others -- launder more than $250 million in fraudulent proceeds.
To facilitate these interrelated schemes, Bandfield and his co-conspirators created shell companies in Belize and the West Indies for the corrupt clients and placed nominees at the helm of these companies. This structure was designed to conceal the clients’ ownership interest in the stock of U.S. public companies, in violation of U.S. securities laws, and enable the corrupt investors to engage in trading under the nominee’s names through brokerage firms also set up in Belize. For example, this structure enabled the Mulholland Group to manipulate the stock of Cynk Technology Corp, which traded on the U.S. OTC markets under the ticker symbol CYNK. Using aliases such as “Stamps” and “Charlie Wolf,” Mulholland was intercepted on a court-authorized wiretap on May 15, 2014, admitting to his ownership of “all the free trading” or unrestricted shares of CYNK. Prior to this conversation between Mulholland and his trader at Legacy, there had been no trading in CYNK stock for 24 trading days. Over the next two months, the stock of CYNK rose from $0.06 per share to $13.90 per share, a more than $4 billion stock market valuation for a company that had no revenue and no assets.
Mulholland used the services of a U.S.-based lawyer to launder the more than $250 million generated through his stock manipulation of CYNK and other U.S. companies – directing the fraud proceeds to five law firm accounts and transmitting them back to members of the Mulholland Group and its co-conspirators. Other clients used unidentifiable debit cards to freely transfer their fraudulent proceeds back into the United States.
Bandfield’s scheme also enabled the U.S. corrupt clients evade reporting requirements to the IRS by concealing the proceeds generated by the manipulated stock transactions through the shell companies and their nominees. For example, in response to a request received by a U.S. corrupt client from a U.S. transfer agent who had to determine whether the proceeds from manipulative stock trading transaction were taxable under U.S. law, Bandfield forwarded an IRS Form signed by co-defendant Andrew Godfrey as the nominee for the shell company which had been set up at the request of the client. At one point during the government’s investigation, Bandfield boasted to an undercover law enforcement agent that he had specifically designed this “slick” corporate structure to counter then-President Barack Obama’s new laws, a reference to FATCA.
* * *
Today’s proceeding took place before United States District Judge I. Leo Glasser.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Jacquelyn Kasulis, Winston Paes and Michael Keilty are in charge of the prosecution, with assistance from Assistant United States Attorney Brian Morris of the Office’s Civil Division, who is responsible for the forfeiture of assets.
The Defendants:
ROBERT BANDFIELD
Age: 72
Belize City, Belize
GREGG R. MULHOLLAND
Age: 47
San Juan Capistrano, California
Vancouver, Canada
EDNY Docket No. 14-CR-476 (S-2) (ILG)
Albuquerque Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Manuel Boydston, 36, of Albuquerque, N.M., pled guilty today in federal court to a methamphetamine trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Boydston and his co-defendant Thomas Montoya, 40, also of Albuquerque, were arrested during an ATF-led investigation that resulted in the filing of 59 federal indictments and one federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. The investigation began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Boydston and Montoya were charged in a three-count indictment filed on June 30, 2016. The indictment charged Montoya with distribution of methamphetamine on June 6, 2016, and Montoya and Boydston with conspiracy and distribution of methamphetamine on June 14, 2016. According to the indictment, the offenses took place in Bernalillo County.
During today’s proceedings, Boydston pled guilty to Count 3 of the indictment charging him with distributing methamphetamine. In entering the guilty plea, Boydston admitted that on June 14, 2016, he sold approximately 118 grams of methamphetamine to an undercover law enforcement agent.
At sentencing, Boydston faces a statutory minimum penalty of five years and a maximum of 40 years in federal prison. A sentencing hearing has yet to be scheduled.
To date, 26 of the 104 defendants have entered guilty pleas and two have been sentenced. The remaining defendants, including Montoya, have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The case was investigated by the Albuquerque office of ATF. Assistant U.S. Attorney Jacob Wishard is prosecuting the case.
Acting U.S. Attorney Weinreb Highlights Obligations of Cities and Towns Under Religious Anti-Discrimination LawRead the Press Release
BOSTON – Acting U.S. Attorney William D. Weinreb sent a letter to cities and towns across Massachusetts highlighting the obligations of cities and towns under a federal law that prohibits religious discrimination. The Religious Land Use and Institutionalized Persons Act (RLUIPA) protects against substantial burdens on religious exercise, unequal treatment, and unreasonable limitation for religious assemblies and institutions such as churches, mosques, and synagogues.
The U.S. Attorney’s Office is charged with ensuring that religious institutions and organizations have an equal opportunity to buy and develop land free from unreasonable and burdensome restrictions. To aid in this effort, the U.S. Attorney’s Office recently sent the attached letter to cities and towns highlighting their obligation to comply with RLUIPA.
RLUIPA, which was enacted in 2000, ensures that religious institutions are protected from unduly burdensome, unreasonable, and discriminatory zoning and landmarking. The protections apply widely to religious schools, religious camps, religious retreat centers, and religious social service facilities such as group homes, homeless shelters, and soup kitchens. Among other things, RLUIPA prevents municipalities from placing restrictions or burdens on land use by religious organizations that are not applied to comparable secular institutions.
“All Americans have the right to come together and worship in accordance with their religious beliefs, free from unreasonable burdens,” said Acting U.S. Attorney William D. Weinreb. “This letter will help cities and towns throughout Massachusetts understand the requirements of the law and ensure that they do not unintentionally discriminate against religious individuals and institutions.”
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
Saturday 4 February 2017
Two California Men Sentenced for CounterfeitingRead the Press Release
United States Attorney Randolph J. Seiler announced that two California men convicted of Trafficking in Counterfeit Goods or Services were sentenced on January 30, 2017, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Mohamed Elkady, age 30, and Fady Youssef Abdelmalek, age 34, were each sentenced to time served, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. They were also ordered to pay $50,000 in restitution jointly, which they paid in full, prior to sentencing.
Elkady and Abdelmalek were charged on June 6, 2015. The conviction stems from them manufacturing and selling counterfeit goods at kiosks in the Rushmore Mall in Rapid City, South Dakota, and the Empire Mall in Sioux Falls, South Dakota, between November 2014 and June 2015. The victims included the National Football League, various motor vehicle manufacturers, and television show producers.
This case was investigated by the Department of Homeland Security, Bureau of Immigration and Customs Enforcement. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
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 Failure to Register as a Sex Offender was sentenced on January 30, 2017, by U.S. District Judge Roberto A. Lange.
Allen Good Shield, age 27, was sentenced to 20 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.
Good Shield was indicted by a federal grand jury on August 23, 2016. He pled guilty on November 8, 2016.
Good Shield was convicted of Sexual Abuse of a Minor in federal court in November 2010, and sentenced to 27 months in prison, followed by 5 years supervised release. As a result of this conviction, he is required to register as a sex offender and to update his registration within three business days of relocating or changing employment. In July 2016, Good Shield registered with an address in Rapid City. Good Shield subsequently absconded from supervised release and an arrest warrant was issued. He was arrested in Rapid City on August 11, 2016. Good Shield did not update his sex offender registration between August 2, 2016, and August 11, 2016, as required by law.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Good Shield was immediately turned over to the custody of the U.S. Marshals Service.
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 Failure to Register as a Sex Offender was sentenced on January 31, 2017, by U.S. District Judge Roberto A. Lange.
Patrick Black Spotted Horse, age 27, was sentenced to 18 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.
Black Spotted Horse was indicted by a federal grand jury on January 21, 2016. He pled guilty on November 8, 2016.
Black Spotted Horse was convicted of Sexual Abuse of a Minor in federal court in March 2010, and sentenced to 40 months in prison followed by 5 years of supervised release. As a result of this conviction, he is required to register as a sex offender and to update his registration within three business days of relocating or changing employment. In October 2015, Black Spotted Horse updated his registration using an address in Rapid City. In December 2015, Black Spotted Horse absconded from supervised release, and a warrant was issued for his arrest. Black Spotted horse did not update his sex offender registration between December 3, 2015, and January 20, 2016, as required by law.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Black Spotted Horse was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on January 30, 2017, by U.S. District Judge Roberto A. Lange.
Lonnie Ray Erickson, age 51, was sentenced to 132 months in custody, 5 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Erickson was also ordered to forfeit U.S. currency, firearms, and ammunition seized by law enforcement.
Erickson was initially indicted by a federal grand jury on August 11, 2015. A Superseding Indictment was filed on December 8, 2015, and a second Superseding Indictment was filed on May 7, 2016. Erickson pled guilty on November 8, 2016.
Between March of 2015 and May of 2016, Erickson knowingly and intentionally conspired with others to distribute more than 500 grams of methamphetamine, a Schedule II Controlled Substance, in South Dakota. Erickson received distributable quantities of methamphetamine and distributed it to others within South Dakota. The individuals who provided Erickson with methamphetamine knew that he intended to engage in further distribution. It was reasonably foreseeable to Erickson that more than 500 grams of methamphetamine would be distributed during the course of the conspiracy.
On July 26, 2015, and October 15, 2015, cash, firearms, and ammunition were seized by law enforcement from Erickson. Methamphetamine, marijuana, and drug paraphernalia were also seized from Erickson on October 15, 2015.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Erickson was immediately turned over to the custody of the U.S. Marshals Service.
Manderson Man Indicted for Sexual ContactRead the Press Release
United States Attorney Randolph J. Seiler announced that a Manderson, South Dakota, man has been indicted by a federal grand jury for Abusive Sexual Contact.
Lorne Michael Thunder Horse, age 34, was indicted on January 24, 2017, and appeared before U.S. Magistrate Judge Daneta Wollmann on January 31, 2017. He pleaded not guilty to the charge.
The penalty upon conviction is any term of years up to life imprisonment, and/or a $250,000 fine, any term of years or lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Thunder Horse engaging in sexual contact with a young child. The charge is merely an accusation and Thunder Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Thunder Horse was detained pending trial. A trial date has not been set.
Ellsworth Air Force Base Man Indicted for Illegal Use of InternetRead the Press Release
United States Attorney Randolph J. Seiler announced that an Ellsworth AFB, South Dakota, man has been indicted by a federal grand jury for Attempted Sexual Exploitation of a Minor, Attempted Enticement of a Minor Using the Internet, and Transfer of Obscene Material to a Minor.
Rickey Lee Crain, age 27, was indicted on January 24, 2017, and appeared before U.S. Magistrate Judge Daneta Wollmann on January 27, 2017. He pleaded not guilty to the Indictment.
The penalty upon conviction is a minimum of 5 years up to life imprisonment, a $250,000 fine, a minimum of 5 years up to lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Crain using a cell phone and a computer to send obscene material to a minor, and to engage in sexually explicit conduct with a female he believed to be 13-years old.
The charges are merely an accusation and Crain is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah Collins is prosecuting the case.
Crain was released pending trial.
Eagle Butte Woman Charged with Conspiracy and Distribution of MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance and Distribution of a Controlled Substance.
Donni DaRae Traversie, a/k/a Donna Dupris, age 26, was indicted on January 19, 2017. She appeared before U.S. Magistrate Judge Mark A. Moreno on January 24, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction, on each count, is up to 20 years in custody and/or a $1,000,000 fine, up to life on supervised release, and $500 to the Federal Crime Victims Fund. Restitution may also be ordered.
It is alleged that between April 1, 2012, and January 19, 2017, Traversie conspired to manufacture and distribute methamphetamine in the District of South Dakota. It is further alleged that on four occasions between June 14 and July 1, 2016, Traversie distributed methamphetamine.
The charges are merely accusations and Traversie is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Traversie was released on bond to a third party custodian pending trial. Trial is set for April 4, 2017.
Eagle Butte Man and Utah Man Sentenced for RobberyRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man and an Ogden, Utah, man convicted of Robbery were sentenced by U.S. District Judge Roberto A. Lange.
Ryker Talbot, age 20, from Ogden, Utah, was sentenced on January 30, 2017, to 84 months in custody, to be followed by 3 years of supervised release. Dominic Houston, age 18, from Eagle Butte, South Dakota, was sentenced on December 19, 2016, to 46 months in custody, followed by 2 years of supervised release. Both were ordered to pay $1,743.20 in restitution to the Eagle Stop Convenience Store and Gas Station in Eagle Butte, on a joint and several basis, and a special assessment to the Federal Crime Victims Fund in the amount of $100.00 each.
Talbot and Houston were indicted by a federal grand jury on July 26, 2016. Talbot pled guilty on November 8, 2016, and Houston pled guilty on September 27, 2016.
The conviction stems from an incident on July 2, 2016, when Talbot and Houston discussed committing a robbery. Ultimately, the decision was made to rob the Eagle Stop. Shortly before 1:00 a.m. on Saturday, July 2, 2016, Talbot and Houston traveled to the vicinity of the Eagle Stop. Houston remained outside of the store and served as a lookout. Talbot entered the Eagle Stop, carrying a Maverick 12-gauge shotgun. Talbot pointed the shotgun at the clerk and demanded money. Talbot then racked the shotgun and repeated his demand to be given money. The clerk gave Talbot money from the cash registers in the store. Talbot then demanded the clerk to give him two cartons of cigarettes, and the clerk complied. Talbot exited the store with the cash and cartons of cigarettes, and Talbot and Houston then left the scene. They later split up the proceeds acquired in the robbery.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services, and the Division of Criminal Investigation. Assistant U.S. Attorney Jay Miller prosecuted the case.
Talbot and Houston were immediately turned over to the custody of the U.S. Marshals Service.
Eagle Butte Man Charged with Assault of a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, Opposing, and Impeding a Federal Officer.
Thomas James Shan Looking Horse, a/k/a TJ. Shan Looking Horse, age 31, was indicted on January 19, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 31, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on December 19, 2016, Looking Horse forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with a Police Sergeant and a Correctional Officer from the Cheyenne River Sioux Tribe, while they were performing their official duties.
The charges are merely accusations and Looking Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Looking Horse was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Friday 3 February 2017
“Pimp” Sentenced to 216 Months in Federal Prison in Child Sex Trafficking CaseRead the Press Release
DALLAS — Edric Norvell Robinson, Sr., 46, of Dallas, was sentenced by U.S. District Judge Ed Kinkeade to 216 months in federal prison, following his guilty plea in April 2016 to one count of sex trafficking of children related to his pimping a 16-year-old girl in Dallas and Wichita Falls, Texas, announced U.S. Attorney John Parker of the Northern District of Texas.
In addition, at Wednesday’s sentencing hearing, Judge Kinkeade ordered that Robinson must serve a 15-year term of supervised release after serving his custody sentence. He must also register as a lifetime sex offender.
According to documents filed in his case, from approximately April 7, 2014, through August 19, 2014, Robinson knowingly recruited, enticed, harbored and transported a 16-year-old minor female, whom he caused to engage in a commercial sex act.
Project Safe Childhood (PSC) is a Department of Justice initiative that aims to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
The Texas Department of Public Safety and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), both members of the North Texas Anti-Trafficking Taskforce (NTATT), investigated the case.
Assistant U.S. Attorneys Cara Foos Pierce was in charge of the prosecution.
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United States Postal Employees Prosecuted for Conspiracy to Defraud the United States and TheftRead the Press Release
Jacksonville, Florida – U.S. Attorney A. Lee Bentley, III announces the arrest of U.S. Postal employee Badi Mohamed (30, Jacksonville) on January 31, 2017, for conspiracy to defraud the United States, theft of government money, and theft of mail. If convicted, he faces up to 10 years’ imprisonment, and he could be ordered to pay at least $20,741 in restitution to the Internal Revenue Service.
In addition, U.S. District Judge Brian J. Davis yesterday sentenced U.S. Postal employee Veronica Skrine (54, Jacksonville) to two years’ probation in a related case, which includes a one-month term of home confinement, for conspiracy to defraud the United States and theft of government property. She also was ordered to pay $44,334.23 in restitution to the Internal Revenue Service. Skrine pleaded guilty on November 18, 2016.
According to court documents, Skrine conspired with another individual, Lorne Jordan, to cash stolen United States Treasury checks in the names of others. She and Jordan entered into an arrangement in 2013, and again in 2015, to use her employment at a U.S. Post Office to accept Treasury checks in other persons’ names and to cash them using funds held by the U.S. Postal Service. Skrine was paid $100 per $1,000 of the face value of each check.
On August 23, 2016, Jordan was sentenced to four years and three months in federal prison for conspiracy to defraud the United States, theft of government funds, and aggravated identity theft. She also was ordered to pay restitution to the Internal Revenue Service in the amount of $120,713.09.
These cases were investigated by the Internal Revenue Service - Criminal Investigation, the U.S. Postal Inspection Service - Office of Inspector General, the Florida Department of Law Enforcement, and the North Florida Financial Crimes Task Force. The cases are being prosecuted by Assistant United States Attorney Kelly S. Karase.
United States Attorney Eric Miller Submits His ResignationRead the Press Release
United States Attorney Eric Miller has announced his resignation, effective February 10, 2017. In 2015, Miller was appointed to his position by President Barack Obama on the recommendation of Senator Patrick Leahy and was confirmed unanimously by the United States Senate. Since then, he has led the United States Attorney’s Office for the District of Vermont, which has 45 employees, including 20 attorneys, who enforce all federal criminal and civil laws in the state.
In announcing his departure, Mr. Miller said, “Serving as Vermont’s United States Attorney has been the highest honor of my career, and I am grateful for the trust placed in me by President Obama, Senator Leahy, and the people of Vermont.” Miller praised his colleagues at the United States Attorney’s Office and commended the work they do on behalf of the people of Vermont. “This is an amazing group of lawyers and staff. The single greatest joy of this job has been supporting their skilled advocacy on positions I am passionate about and which also make life better for Vermonters.”
During Miller’s tenure, the United States Attorney’s Office increased its focus on a statewide, collaborative approach to confronting Vermont’s heroin crisis. Through its Vermont Heroin Initiative, the office partnered with federal, state, and local law enforcement agencies, healthcare providers, and non-profits to encourage the most effective mix of prosecution, treatment, and education to stem the flow of opiates into the state. Over the past two years, the United States Attorney’s Office has successfully prosecuted scores of significant heroin trafficking conspiracies. The office prioritized the pursuit of human trafficking charges in association with its drug prosecutions. It also produced an award-winning public service announcement and informational campaign designed to increase public awareness of the danger of human trafficking and to provide trafficking victims and survivors with appropriate services. Miller expressed special thanks to the FBI, DEA, ATF, Vermont State Police, HSI, Border Patrol, Secret Service, USMS, CBP, and all of the other federal, state, local law enforcement agencies working closely with his office and with one another to accomplish their joint mission.
Under Miller’s leadership, the United States Attorney’s Office also expanded its civil rights enforcement program, adding a Civil Rights Outreach Specialist and an Assistant United States Attorney dedicated to identifying, investigating, and remedying federal civil rights violations in Vermont. Together with the office’s Civil Rights Coordinator, they engage in outreach designed to build trust and relationships between the United States Attorney’s Office and the communities it serves.
Islam Hassan, the Imam of the Islamic Society of Vermont, said, “Eric and his colleagues have worked to build bridges between their office and the Islamic Society of Vermont. They have become familiar faces at our mosque, and we deeply appreciate their commitment to building relationships with our community.” Through these efforts and others, the office has established itself as a statewide leader in protecting Vermonters’ civil rights.
Throughout his time in office, Mr. Miller has been a visible presence in Vermont’s communities, championing the criminal justice initiatives promoted by President Obama and Attorney General Loretta Lynch through working groups, panel discussions, speeches, and one-on-one meetings with Vermont’s elected leaders, local police departments, and residents.
Rutland’s Mayor, Christopher Louras, said, “Eric and his office have invested enormous energy in Rutland. They have worked with the City to transform former drug houses into safe, affordable, owner-occupied homes that grow our neighborhoods. And when I announced Rutland’s plans to welcome Syrian refugees to our community, Eric publicly voiced his strong support and committed the resources of his office to protecting all Rutland residents, including the newest among us.”
Summing up his thoughts on the Department he is leaving, Miller said, “Whenever I think about the core mission of this place, I always return to a formulation I first heard from Deputy Attorney General Sally Yates: Although much or our most important work involves prosecuting people who break the law, we are not just the Department of Prosecutions, or even the Department of Public Safety. We are the Department of Justice. And I know the men and women of this office will continue to work every day to deliver on the promise of justice for all Vermonters.”
Miller has not yet determined his future professional plans.
U.S. Attorney Statement on Opening of Unity Center for Behavioral Health PortlandRead the Press Release
PORTLAND, Ore. – Billy J. Williams, United States Attorney for the District of Oregon, provided the below statement on the opening of the Unity Center for Behavioral Health in Northeast Portland.
“We are pleased to learn of the opening of the Psychiatric Emergency Service at the Unity Center on February 2, 2017 to walk-ins and transfers. This is a much needed service for people in crisis. This facility incorporates a calming environment with peer and community-based services designed to maximize favorable outcomes. The United States Department of Justice identified the need for such a facility over five years ago and we are pleased to see the culmination of efforts of private and public stakeholders, committed to making these services a reality through the Unity Center. While there is much work to be done to address the gaps in community-based mental health services throughout Oregon, we applaud the efforts made to achieve this important step towards closing that gap.”
The Unity Center for Behavioral Health is a 24-hour behavioral and mental health services center providing immediate psychiatric care for people experiencing mental health crises in the greater Portland metropolitan area. To learn more about the Unity Center, please visit www.unityhealthcenter.org.
Topeka Woman Sentenced for Sex Trafficking of 17-Year-OldRead the Press Release
TOPEKA, KAN. – A Topeka woman was sentenced Friday to 34 months in federal prison for the sex trafficking of a 17-year-old girl, U.S. Attorney Tom Beall said.
Tiara Jade Newman, 23, Topeka, pleaded guilty to one count of conspiracy to commit sex trafficking. In her plea, she admitted that on March 21, 2015, she and her husband, co-defendant Reginald Newman, 30, Topeka, Kan., took a 17-year-old girl from Topeka to Junction City, Kan., for the purpose of prostitution.
The Newmans rented two rooms at a Value Place motel in Junction City. They used one room for performing commercial sex acts and slept in the other room. Newman and the girl met a solder from Fort Riley at the Value Place motel. The soldier paid $250 to have sex with both of them.
Tiara Newman took the girl along on an “out call” to the Fairfield Inn in Manhattan, Kan. Newman told a customer there that the girl was new and she was showing her the business. The customer noticed that the girl was nervous and gave her a tip.
Reginald Newman kept all the money from the commercial sex acts. He pleaded guilty and is awaiting sentencing.
Beall thanked Assistant U.S. Attorney Christine Kenney and the following agencies for their work on the case: The Topeka Police Department, Homeland Security Investigations, the Riley County Police Department, the Junction City Police Department, the Kansas Department of Revenue, the Fort Riley Police Department, the Ottawa Police Department, the Shawnee County District Attorney’s Office, the Pottawatomie County Attorney, the Riley County Attorney and local human trafficking victim specialists.
Three Men Plead Guilty to Charges Related to Armed Robberies of West Haven Post Office and Hamden BankRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that three men have pleaded guilty in Hartford federal court to charges related to the armed robberies of the Allingtown Post Office in West Haven and the Wells Fargo Bank in Hamden on April 21, 2016.
On February 2, MALCOLM HAYNES, also known as “Black,” 26, of New Haven, pleaded guilty to one count of armed robbery of a postal employee and one count of armed bank robbery. On January 25, DERRICK WHITE, also known as “Fly,” 52, of Hamden, pleaded guilty to one count of armed bank robbery. On January 30, HOWARD BOOKERT, 19, of Hamden, pleaded guilty to one count of armed robbery of a postal employee.
According to court documents and statements made in court, on the morning of April 21, 2016, HAYNES, WHITE, BOOKERT and another male drove in WHITE’s vehicle to the vicinity of the Allingtown Post Office located at 75 Farwell Avenue in West Haven. HAYNES, who was armed with a .22 caliber rifle, WHITE and BOOKERT then entered the post office. HAYNES pointed the rifle at individuals who were in the lobby and the clerk behind the counter and directed them to stay away from the door. WHITE then hopped over the counter, waved the postal clerk away from her station, removed the cash drawer from the counter and handed it to BOOKERT. The robbers then fled with the drawer, which contained approximately $491.
In the afternoon of April 21, 2016, the four individuals drove to a branch of Wells Fargo Bank located at 1647 Whitney Avenue in Hamden. HAYNES, again armed with the rifle, WHITE and the other male entered the bank. HAYNES pointed the rifle in the direction of various employees as WHITE went behind the counter and removed approximately $9,287 from teller drawers. During the robbery, the other male brandished what appeared to be a small black semi-automatic pistol.
WHITE and BOOKERT were apprehended in New Haven on April 21, 2016. HAYNES was arrested on May 23, 2016.
HAYNES, WHITE and BOOKERT, who have been detained since their arrests, are scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on May 3, April 19 and May 4, respectively.
Each of the charges carries a maximum term of imprisonment of 25 years.
The fourth male was charged in state court and his case remains pending.
This matter has been investigated by the West Haven Police Department, Hamden Police Department, New Haven Police Department, Federal Bureau of Investigation, and U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Anastasia E. King.
Tampa Bay Man Sentenced to Twenty Years for Production of Child PornographyRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Honeywell today sentenced Paul Dale Pollitt, III (40) to 20 years in federal prison for production of child pornography. The Court also ordered him to forfeit the cellphone he had used to commit the offense. Pollitt pleaded guilty on November 15, 2016.
According to court documents, an undercover police detective working as part of a multi-jurisdictional Child Exploitation Task Force posted an online advertisement on a site frequented by individuals that have a sexual interest in children. In November 2015, Pollitt reached out to this undercover officer, believing him to be a man similarly interested in this type of activity.
Pollitt chatted with the undercover officer for several days and traded multiple images of a child, including an image of child pornography. Pollitt told the undercover officer that he would be seeing the child the following weekend, and intended to take additional photographs of her. Law enforcement officers then engaged in an effort to identify and locate Pollitt before he would again have access to the victim.
Ultimately, Pollitt was arrested and his electronic devices were seized. A review of those devices revealed that Pollitt had been chatting with anonymous men online about molesting the victim for over a year. Several additional photographs were found of the victim, including several additional images of child pornography.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Rachel K. Jones and Stacie B. Harris.
It is another case 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.justice.gov/psc.
Soper-Wheeler Company to Pay $1.7 Million in Settlement for Plumas National Forest FireRead the Press Release
SACRAMENTO, Calif. — Soper-Wheeler Company LLC has agreed to pay $1.7 million to settle a lawsuit brought by the United States for damages resulting from a 2009 wildfire that burned 307 acres of national forest land, U.S. Attorney Phillip A. Talbert announced today.
The fire, known as the “Silver Fire,” ignited on September 19, 2009, on a steep hillside along Silver Creek, near the community of Spanish Ranch. The lawsuit alleged that a chainsaw being used by Soper-Wheeler’s employees to clear a blockage in a water pipeline struck rocks, causing sparks that ignited dry vegetation. By the time the fire was suppressed, 307 acres of the Plumas National Forest had been burned.
Soper-Wheeler is a timber company that conducts logging operations throughout Northern California. It is based in Strawberry Valley, California. Soper-Wheeler had a Special Use Permit, which allowed it to use or occupy lands in the Plumas National Forest. Settlement documents filed with the court require payment of $1.7 million to resolve the lawsuit.
“We are very pleased with this settlement, which goes a long way toward compensating the public for the expense of fighting the fire and restoring these public lands,” U.S. Attorney Talbert said. “Those who use public lands in California must be vigilant. We will continue to aggressively pursue compensation from those who are responsible for wildfires that damage our precious national resources.”
“Burned areas frequently require some restoration work in order to return them to a resilient state. These settlement funds help us reach our ecological restoration goals in these areas,” said U.S. Forest Service Pacific Southwest Regional Forester Randy Moore.
In the last five years, the U.S. Attorney’s Office has secured settlements in 20 different cases involving wildfire damage to federal lands, with settlements valued at nearly $200 million.
This case was the product of an investigation by the U.S. Forest Service. Assistant U.S. Attorney Colleen M. Kennedy handled the case.
San Francisco Sheriff’s Deputy and A Former San Francisco Jail Inmate Arrested on Gun and Fraud ChargesRead the Press Release
SAN FRANCISCO – Agents of the Federal Bureau of Investigation and investigators from the San Francisco Public Corruption Task Force arrested San Francisco Sheriff’s Deputy April Myres and a former San Francisco Jail inmate, Antoine Fowler, on gun and fraud charges, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
A criminal complaint was filed in federal court against Fowler, 32, yesterday afternoon. An amended complaint was filed against Myres, 52, earlier today.
According to the complaints, Myres gave her Sheriff’s Department-issued firearm, a Glock 17 9mm pistol, to Fowler and later claimed that it had been stolen in a burglary of her home. The gun was located yesterday by FBI agents under the front driver-side console of Fowler’s car after Fowler was pulled over in Oakland by FBI SWAT agents.
According to the criminal complaints, Myres made a claim to her insurance company that numerous items, including her Sheriff’s Department-issued firearm, body armor, and handcuffs (as well as a mink jacket and a number of Louis Vuitton, Chanel, and Versace handbags, and Manolo Blahnik, Gucci, and Christian Louboutin shoes) were stolen from her home in San Francisco on March 25, 2016. The FBI conducted a search of Myres’ residence on February 2, 2017, and found a number of the items Myres claimed had been stolen. The amended criminal complaint against Myres charges her with mail fraud, wire fraud, and conspiracy, in violation of 18 U.S.C. §§ 1341, 1343, and 1349, as well as disposing of a firearm by providing it to a convicted felon, in violation of 18 U.S.C. § 922(d).
Fowler, who was released from the San Francisco Jail on January 11, 2016, is alleged to have had a romantic relationship with Myres before his release. According to the complaints, when Fowler was arrested on February 2, Myres’ service firearm, which she had reported stolen to the insurance company, was in his car. The criminal complaint against Fowler charges him with being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g).
The charges and successful recovery of the firearm were the result of close cooperation and coordination by members of the San Francisco Public Corruption Task Force, including the FBI, the San Francisco Police Department Internal Affairs Unit, the San Francisco District Attorney’s Office, and the San Francisco Sheriff’s Department Investigative Services Unit. The investigation began shortly after Myres claimed the firearm and other items were stolen from her house in March 2016.
Defendants Myres and Fowler were arrested on February 2, 2017, and made their initial appearances in San Francisco on February 3, 2017, before U.S. Magistrate Judge Laurel Beeler. Fowler is being detained pending further hearings now scheduled for February 7, 2017, at 9:30 am before Magistrate Judge Beeler. Myres was released on a $1 million secured bond and is scheduled to appear before Magistrate Judge Beeler on February 15, 2017.
If convicted, the maximum statutory penalty Fowler faces for being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g), is 10 years in prison. If convicted, the maximum statutory penalty Myres faces for each count of mail fraud, wire fraud, and conspiracy is 20 years in prison, and the maximum statutory penalty for a violation of 18 U.S.C. § 922(d), is 10 years. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
A criminal complaint merely alleges there is probable cause to believe crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The case is being prosecuted by the Special Prosecutions and National Security Unit of the United States Attorney’s Office.
Salem Man Sentenced on Federal Drug and Gun ChargesRead the Press Release
Roanoke, VIRGINIA – A Salem man, who previously pled guilty to being part of a federal drug conspiracy, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke, Acting United States Attorney Rick A. Mountcastle announced.
Marvis Maurice Johnson, 31, of Salem, Va., previously pled guilty to one count of conspiracy to distribute more than 280 grams of cocaine and one count of illegally possessing a firearm by a previously convicted felon. Today in District Court, Johnson was sentenced to 112 months in federal prison.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Roanoke County Police Department. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Randolph County man pleads guilty to unlawful possession of a firearmRead the Press Release
ELKINS, WEST VIRGINIA – Tre Plaugher, 22, of Elkins, West Virginia, was convicted for illegally possessing a firearm, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Plaugher pled guilty to one count of “Possession of a Firearm in Furtherance of a Drug Crime” and admitted to possessing a 9mm caliber pistol in January 2016. He faces up to five years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Steven D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crime Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Pocatello Man Sentenced for Possession with Intent to Distribute Methamphetamine and HeroinRead the Press Release
POCATELLO – Kasey Ray Converse, 32, of Pocatello, Idaho, was sentenced today to 18 months in prison for possession with intent to distribute methamphetamine and heroin, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Converse to serve three years of supervised release and forfeit a firearm and as well as all drug proceeds.
According to court documents, on December 17, 2015, Converse was stopped by the Idaho State Police in Oneida County, Idaho. Law enforcement found both methamphetamine and heroin in his possession, as well as a firearm. Converse knowingly possessed the methamphetamine and heroin intending to distribute it to another person.
The conviction is result of a joint operation of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Idaho State Police, the Pocatello Police Department, and the Oneida County Sheriff’s Office, Mini-Cassia Drug Task Force, Cassia County Sheriff’s Office, and the Minidoka County Sheriff’s Office.
Pittsburgh Man Sentenced to Probation for Ticket Fraud SchemeRead the Press Release
PITTSBURGH – A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to a term of three years probation on his conviction of conspiracy and wire fraud, Acting United States Attorney Soo C. Song announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Michael F. Schoedel, 27, of Pittsburgh, PA.
According to information presented to the court, from on or about March 1, 2014 to March 17, 2014, Schoedel falsely represented that he had tickets to entertainment events to potential purchasers on Craigslists. He would then have potential purchasers wire money for these tickets, but Schoedel did not provide any tickets.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Schoedel.
Philadelphia Attorney Convicted for Money Laundering Conspiracy Involving the Proceeds of a Major Drug Distribution Organization, Witness Tampering and Tampering with Official ProceedingsRead the Press Release
Greenbelt, Maryland – Late on February 2, 2017, a federal jury convicted Philadelphia attorney James Michael Farrell, age 63, of Wenonah, New Jersey, of money laundering, witness tampering, and obstruction of official proceedings, related to his activities on behalf of members of an extensive drug trafficking operation.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration – Philadelphia Field Office; Acting Special Agent in Charge Thomas J. Holloman of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Hank Stawinski of the Prince George’s County Police Department; Chief Terrence B. Sheridan of the Baltimore County Police Department; and Commissioner Kevin Davis of the Baltimore Police Department.
“The evidence proved that James Farrell went far across the line between representing a criminal defendant and joining a criminal conspiracy,” said U.S. Attorney Rod J. Rosenstein. “He ordered witnesses to lie, filed forged affidavits, concealed criminal proceeds, and laundered financial transactions to avoid detection.”
According to the evidence presented at his 14-day trial, Farrell was admitted to practice law in Pennsylvania and New Jersey, and maintained a law office in Philadelphia, Pennsylvania. Matthew Nicka, Gretchen Peterson, David D’Amico, and others were part of an extensive drug trafficking operation which was discovered by the DEA when they executed a search warrant at a residence in the 3500 block of Hickory Avenue in Baltimore on March 18, 2009. The residence was a center of operation for the group. Agents seized more than 80 pounds of marijuana, 30 cell phones, and tally sheets showing over $14 million in marijuana sales, among other items.
Trial testimony showed that beginning in 2009 and continuing through at least April 2013, Farrell conspired with Nicka, D’Amico, Peterson and others to conduct financial transactions using the proceeds of the Nicka Organization in order to conceal the source and control of the drug proceeds. A witness testified that the drug conspirators would deliver to Farrell drug proceeds in the form of cash. Farrell then deposited some of the cash into his commercial bank accounts, recording the deposits as payments in the names of individuals who had not provided the cash to Farrell. The evidence showed that, using the drug proceeds, Farrell wrote checks and disbursed cash to pay for the legal representation of grand jury witnesses and individuals under investigation in connection with the activities of the Nicka Organization, which included payments to two Baltimore area attorneys. Evidence presented at trial demonstrated that Farrell also used drug proceeds to purchase money orders, which he directed to be sent to the inmate account of an incarcerated individual who was part of the Nicka organization.
According to trial evidence, in February 2011, Farrell met with a member of the Nicka organization to discuss filing a claim with the DEA to seek the return of certain property DEA had seized upon arrest. Farrell advised that individual not to disclose to the DEA that another member of the Nicka organization had given him one of the items of property. On February 28, 2011, Farrell caused four affidavits in support of the forfeiture of the property to be filed with DEA that contained the forged signature of this individual and the forged signature of the notary public.
According to witness testimony, on July 11, 2012, Farrell met with another member of the Nicka organization, knowing that person was represented by other counsel. Farrell directed that member of the Nicka organization to meet with federal law enforcement officers and federal prosecutors, but to only tell them what they already knew, rather than sharing all the information about the drug and money laundering conspiracy, and the fact that Farrell had previously handed that person $10,000 cash in exchange for a $10,000 check. Farrell then agreed to try to obtain $25,000 to assist with that person’s legal expenses.
Farrell faces a maximum sentence of 20 years in prison for conspiracy to engage in money laundering and for each of six counts of money laundering; a maximum of 20 years in prison for each of two counts of tampering with an official proceeding; and a maximum of 20 years in prison for tampering with a witness. Farrell was acquitted of one count each of tampering with an official proceeding and tampering with a witness. U.S. District Judge Roger W. Titus has scheduled sentencing for Farrell on May 15, 2017, at 1:00 p.m.
U.S. District Judge Roger W. Titus previously sentenced: David D’Amico, age 52, of Baltimore, to 10 years in prison; Matthew Nicka, age 46, of Baltimore, to 188 months in prison; and Gretchen Peterson, age 37, of Kennett Square, Pennsylvania, to seven years in prison. D’Amico, Nicka and Peterson pleaded guilty on January13, 2016, to conspiracy to distribute at least 1,000 kilograms of marijuana and conspiracy to commit money laundering. D’Amico, Nicka and Peterson were fugitives from the time the indictment was returned in December 2010, until Nicka and Peterson were arrested in Canada in early August 2013, and D’Amico was extradited from Colombia, South America. Judge Titus also entered forfeiture orders requiring Nicka to pay a money judgment of $15 million; and D’Amico to pay a money judgment of $1 million, which represents the proceeds of the offense.
Twelve other defendants were convicted in this investigation and sentenced to up to 121 months in prison.
United States Attorney Rod J. Rosenstein praised the DEA Washington and Philadelphia Field Offices, IRS-CI, and the Montgomery County, Prince George’s County, Baltimore County and Baltimore City Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Deborah A. Johnston, Leah J. Bressack, and Mara Zusman Greenberg, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Pharmacist Pleads Guilty in Pill Mill CaseRead the Press Release
DALLAS — A registered pharmacist who owned, operated and served as the pharmacist in charge of GenPharm Pharmacy on Wheatland Road in Desoto, Texas, Ndufola Kigham, appeared in federal court this morning before U.S. District Judge Sidney A. Fitzwater and pleaded guilty to federal felony offenses stemming from her involvement in a “pill mill” operation, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Kigham, 45, of Arlington, Texas, pleaded guilty to two counts of misprision of a felony. She faces a maximum statutory penalty of three years in federal prison, on each of the two counts. In addition, according to the terms of her plea agreement, she agrees to pay a $9,500 fine prior to sentencing. She will remain on bond pending sentencing, which is set for May 26, 2017.
After their arrests in January 2016, Kigham, along with another co-defendant pharmacist, Kumi Frimpong, and Dr. Richard Andrews, a doctor of osteopathy who supervised the McAllen Medical Clinic on South Hampton in Dallas, were ordered to surrender their Drug Enforcement Administration (DEA) registration numbers, preventing Kigham and Frimpong from dispensing controlled substances and Dr. Andrews from issuing prescriptions for controlled substances. Kigham also surrendered the stock of controlled substances that she had in her pharmacy to DEA.
Dr. Andrews, 64, of Dallas, pleaded guilty in mid-January 2016 to one count of conspiracy to distribute controlled substances (oxycodone) and one count of conspiracy to launder monetary instruments. According to the plea agreement filed in his case, if the Court accepts the plea, the parties agree that a sentence of at least 48 months but no more than 96 months in federal prison is the appropriate disposition of his case. He has agreed that he will not apply for another DEA Certificate of Registration, and he further agreed never to seek or retain employment, including consulting, in or related to the pain management industry. He also agreed not to obtain or maintain, directly or indirectly, a financial ownership interest in a pain management clinic or home healthcare service. He remains on bond pending sentencing, which is set for April 28, 2017.
Frimpong, 56, of Dallas, who owned, operated, and was the pharmacist in charge at Cornerstone Pharmacy, on Bolton Boone Drive in Desoto, pleaded guilty in September 2016 to one count of conspiracy to illegally distribute oxycodone. He also agreed to surrender $41,112 to the U.S. that constituted proceeds from dispensing oxycodone during the conspiracy. He faces a maximum statutory penalty of 20 years in federal prison and is scheduled to be sentenced on March 17, 2017.
According to plea documents filed in Kigham’s case, between approximately January 2013 and August 2014, several individuals conspired to distribute 30mg oxycodone, a Schedule II controlled substance. Kigham admitted that she knew of the conspiracy and failed to notify any authority of it. Instead, she committed affirmative acts to conceal the conspiracy, such as filling prescriptions for 30mg oxycodone written for multiple different individuals and dispensing the filled prescriptions to a single individual, and not to the individuals named on the prescription. By filling these prescriptions while the conspiracy was ongoing, Kigham dispensed more than 70,000 30mg oxycodone pills based on legitimate prescriptions.
Another co-conspirator in the case, Muhammad Faridi, 40, who is not a physician but who was the owner of the McAllen Medical Clinic, pleaded guilty in August 2016 to one count of conspiracy to launder monetary instruments and is scheduled to be sentenced in March 2017.
In February 2015, a federal grand jury in Dallas indicted 23 individuals on offenses related to their participation in the prescription drug distribution conspiracy. That indictment alleged that from at least May 2013 through July 2014, the defendants participated in a scheme to illicitly obtain prescriptions for pain medications, such as oxycodone and hydrocodone, and then distribute those controlled substances for profit. As part of the conspiracy, individuals, often homeless or of limited means, were recruited and paid to pose as patients at medical clinics, including the McAllen Medical Clinic, to obtain prescriptions to fill those prescriptions at designated pharmacies.
Superseding indictments were returned in December 2015 and in January 2016, and a total of 31 individuals were charged. Many of those defendants have pleaded guilty and are awaiting sentencing. Eleven have been sentenced to date. Trial for the one remaining defendant, Carolina Berrio, is set for April 10, 2017.
This Organized Crime Drug Enforcement Task Force (OCDETF) investigation is being conducted by the Drug Enforcement Administration and Internal Revenue Service Criminal Investigation, with assistance from the Texas Department of Public Safety, the Louisiana State Police, the Grand Prairie Police Department, the Dallas Police Department, the Houston Police Department, the Arlington Police Department, the Greenville Police Department, the Parker County Sheriff’s Office, the U.S. Marshal’s Service, the U.S. Postal Inspection Service, and the Diplomatic Security Service.
Assistant U.S. Attorney Mary Walters is in charge of the prosecution.
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Oklahoma City Woman to Serve 27 Months in Prison for Committing Health Care Fraud and Food Stamp FraudRead the Press Release
Oklahoma City, Oklahoma – Mark A. Yancey, United States Attorney for the Western District of Oklahoma, and Scott Pruitt, Attorney General for the State of Oklahoma, jointly announce that SHALONDA SUGGS, 36, of Oklahoma City, was sentenced by Chief United States District Judge Joe Heaton to serve 27 months in federal prison for submitting false claims to Medicaid for behavioral health counseling services and for stealing Supplemental Nutrition Assistance Program benefits (SNAP benefits, formerly known as food stamps). Suggs was also ordered to pay restitution to Medicaid in the amount of $204,334.24 and to the Supplemental Nutrition Assistance Program in the amount of $4,959.00.
On April 5, 2016, Suggs was indicted on sixteen counts of health care fraud and one count of theft of government funds. The Indictment alleged that in July 2013, Suggs opened a behavioral health counseling agency called Focus Pointe Counseling, LLC. It was alleged Suggs obtained a contract with the Oklahoma Health Care Authority (OHCA), which allowed Focus Pointe to receive reimbursement from Medicaid for providing behavioral health counseling services to Medicaid-eligible children. It was alleged that Suggs then submitted Medicaid claims for behavioral health counseling services that were purportedly provided by four counselors supposedly employed by Focus Pointe. It was alleged that the counselors were never actually employed by Focus Pointe and never provided any of the counseling services claimed by Focus Pointe. It was alleged that the OHCA paid Focus Pointe for the false claims and that Suggs used the proceeds for her personal benefit. It was further alleged that during the time period Suggs was fraudulently receiving funds from the OHCA, she was receiving SNAP benefits by making false statements to the Oklahoma Department of Human Services that she was unemployed and had a negligible source of income.
On June 30, 2016, Suggs pled guilty to two counts of the Indictment. Suggs admitted that she used Focus Pointe Counseling to submit a claim to the OHCA using the name and Medicaid provider number of a certain counselor for a behavioral counseling session. Suggs admitted that the counselor was not in fact employed by Focus Pointe and that the counseling session never actually occurred. She also admitted that from August 2014 through May 2015, she was receiving SNAP benefits that she obtained by making false statements about her lack of income.
Medicaid and SNAP are programs that are funded and administered jointly by the federal government and the State of Oklahoma. This case is the result of a cooperative federal and state investigation by the Federal Bureau of Investigation, the Oklahoma Attorney General’s Office, and the United States Department of Agriculture, Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Amanda Maxfield Green and Oklahoma Assistant Attorney General Lory Dewey.
North Carolina drug dealer sentenced to federal prison for heroin crimeRead the Press Release
CHARLESTON, W.Va. – A North Carolina heroin dealer was sentenced today to a year and a half in federal prison for a drug crime, announced United States Attorney Carol Casto. Adam Denson, 29, of Gastonia, previously pleaded guilty to distribution of heroin.
Denson admitted that on May 14, 2015, he sold heroin to a confidential informant working with law enforcement. The drug deal took place at Little Page Terrace in Charleston. Denson further admitted that he sold heroin to a confidential informant on three additional occasions in May 2015.
The Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Haley Bunn is in charge of the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
This case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Nigerian Man Sentenced to Prison for DoD Contract Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – Babatunde Aniyi, 33, of Lagos, Nigeria, was sentenced today to 33 months in prison for a conspiracy to defraud United States defense contractors and impersonation of United States officers. Aniyi was also ordered to pay $1,515,524.18 in restitution to his victims.
Aniyi pleaded guilty on Oct. 21, 2016. According to court documents, Aniyi and a co-conspirator in Nigeria impersonated U.S. Department of Defense (DOD) officials using fake DOD email accounts and websites. Aniyi and his co-conspirator would order computers and smart phones in the name of DOD officials and divert the packages to Nigeria, with the help of two of the U.S.-based co-conspirators, Solomon Oyesanya and Oludayo Edgal. Oyesanya and Edgal pleaded guilty to conspiracy charges last year and were sentenced to 60 and 27 months in prison, respectively. According to court documents, the conspiracy caused more than $1.5 million in losses.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Jeffery Thorpe, Special Agent in Charge of the Defense Criminal Investigative Service Cyber Field Office; and Gordon B. Johnson, Special Agent in Charge of the FBI’s Baltimore Field Office, made the announcement after sentencing by U.S. District Judge Claude M. Hilton. Assistant U.S. Attorneys Kellen S. Dwyer and Maya D. Song prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-311.
Newport News Man Sentenced to 20 Years for Tidewater RobberiesRead the Press Release
NEWPORT NEWS, Va. – Sylvester Lipscombe, 49, of Newport News, was sentenced to 20 years in prison his role in a string of commercial robberies in Suffolk, Hampton, and Newport News in 2015.
Lipscombe was pleaded guilty on Sept. 22, 2016. According to court documents, Lipscombe completed multiple commercial robberies from September 29 to Dec. 28, 2015. Over the 90 day period Lipscombe completed the following five robberies: 1) Burger King in Suffolk, Sept. 29, 2015; 2) Krispy Kreme in Hampton, Oct. 18, 2015; 3) Hampton Health Mart in Hampton, Dec. 1, 2015; 4) Checksmart in Hampton, Dec. 4, 2015; 5) Metro PCS in Newport News, Dec. 23, 2015. At sentencing Lipscombe was ordered to pay $8,816.22 in restitution, and was sentenced to an additional two years in prison for violating the terms of his federal supervised release.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; Richard W. Myers, Chief of Newport News Police; Terry L. Sult, Chief of Hampton Police Division; and Thomas E. Bennett, Chief of Suffolk Police, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Special Assistant U.S. Attorney Amy E. Cross prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-cr-40.
Monroe County Man Sentenced to 100 Months for Possession of Firearm by Felon and Possession of Stolen Motor VehicleRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that Todd O. Sweet, 51, of Monroe County Illinois, was sentenced in federal court today to 100 months’ imprisonment, three years’ supervised release, and a $100 special assessment, following his plea of guilty to possession of a firearm by a felon in possession and possession of a stolen motor vehicle.
At the time of commission of these crimes, Sweet was living in a tent in heavy woods located in Monroe County, having absconded from supervised release following his conviction in the Eastern District of Missouri for Possession of Body Armor by a Violent Felon. The owner of the land where Sweet kept his tent called the Monroe County Sheriff’s Office when he discovered Sweet trespassing on his land. Deputies discovered a GPS device in Sweet’s backpack; the device led deputies to Sweet’s tent location, and inside the tent they found a stolen firearm. Nearby, they also found a truck that had been previously stolen in Missouri.
The case was investigated by the Monroe County Sheriff’s Office and was prosecuted by Assistant United States Attorneys Ali Summers and Stephen Clark.
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Mongols Motorcycle Club Member Sentenced to Seven Years in Prison for Use and Possession of Firearm in Connection with KidnappingRead the Press Release
SAN FRANCISCO– Eric Lundin was sentenced today to 84 months in prison for use and possession of a firearm in furtherance of a crime of violence announced United States Attorney Brian J. Stretch and FBI Special Agent in Charge John F. Bennett. The sentence follows a guilty plea entered November 10, 2016, in which Lundin admitting using the weapon to enhance or maintain his status with the racketeering enterprise of the Mongols Motorcycle Club.
According to his guilty plea, Lundin, 67, of Arcadia, Calif., admitted that on April 22, 2013, he used a Colt .38 caliber revolver and a semi-automatic handgun to instill fear in, intimidate, and detain a female kidnapping victim. Lundin admitted that he targeted the victim at least in part because he believed his daughter and his home had been robbed by an associate of a relative of the victim. Lundin believed it was important to maintain respect for the Mongols, and his status as a member, by responding to the robbery. Lundin acknowledged that during the course of the kidnapping, his victim was trapped in the vehicle and he stated “Mongols don’t leave witnesses.”
The sentence was handed down by the Honorable Jon S. Tigar, U.S. District Judge. In addition to the prison term, Judge Tigar also imposed a term of three years of supervised release during which time he may not associate with any members of the Mongols. The defendant currently is in custody and will begin serving the sentence immediately.
Assistant United States Attorneys William Frentzen and Zinzi Bonilla are prosecuting the case with the assistance of Bridget Kilkenny. The prosecution is the result of an investigation by the Federal Bureau of Investigation, the Arcada Police Department, and the Humboldt County Sherriff’s Office.
Mississippi Corrections Officers Plead Guilty to Inmate Assault and Cover-UpRead the Press Release
WASHINGTON – The Justice Department announced that Mississippi corrections officer, Lawardrick Marsher, pleaded guilty today in federal court to beating an inmate in Mississippi’s Parchman prison. A second officer, Robert Sturdivant, pleaded guilty to helping conceal the beating of the inmate.
According to his guilty plea, Marsher, 29, used excessive force in punching and kicking the victim, identified as K.H., who suffered a broken orbital bone, permanent vision loss and severe blood loss. The assault occurred on March 9, 2014. Marsher also admitted to submitting a false report and lying to the FBI. Sturdivant, 47, Marsher’s supervisor, admitted that he also punched and kicked K.H. and urged fellow officers to submit false statements to their department and to lie to the FBI.
“Every American, including those who are incarcerated, is protected by the U.S. Constitution,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “When officers who we expect to uphold those rights willfully violate them, and lie to cover it up, the Justice Department will vigorously enforce the laws prohibiting this misconduct.”
“The defendant abused his authority, violated the law and the public trust,” said U.S. Attorney Felicia C. Adams of the Northern District of Mississippi. “The U.S. Attorney’s Office for the Northern District of Mississippi is committed to aggressively prosecuting those correctional officers who break the law and violate an individual’s constitutional rights.”
“Occasionally, incarceration can lead to an emotionally charged atmosphere, but we lose credibility and moral authority when prison guards are guilty of violating the civil rights of those they are sworn to protect,” said Special Agent in Charge Christopher Freeze of the FBI Jackson Division. “While incarcerated individuals have relinquished their right to freedom, they have not renounced their civil rights.”
On June 21, 2016, Marsher and Sturdivant were indicted by a grand jury. Two other officers, Deonte Pate, 23, and Romander Nelson, 44, pleaded guilty to charges in connection with the beating. Pate admitted to conspiring to cover up the beating, and Nelson pleaded guilty to a misdemeanor charge of failing to protect K.H.
Marsher faces a statutory maximum sentence of 10 years in prison; Sturdivant faces a statutory maximum sentence of five years in prison. Sentencing for Marsher and Sturdivant is tentatively scheduled for June 9 and 8, respectively. Pate’s sentencing is scheduled for March 16; Nelson’s sentencing is scheduled for April 6.
This case was investigated by the FBI’s Jackson Division, with cooperation from the Mississippi Department of Corrections. It was prosecuted by Assistant U.S. Attorney Robert Coleman of the Northern District of Mississippi and Trial Attorneys Rebekah Bailey and Dana Mulhauser of the Civil Rights Division.
Miami-Dade Police Detective Convicted of Civil Rights Offenses for Stealing Property from Motorists and Obstructing JusticeRead the Press Release
The Justice Department announced today that a federal jury convicted former Miami-Dade Police Detective William Kostopoulos, 49, with using his law enforcement authority to violate the civil rights of two motorists as well as obstructing justice.
Acting Assistant Attorney General Thomas Wheeler of the Justice Department’s Civil Rights Division, U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida, and Special Agent in Charge George L. Piro of the Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.According to evidence presented during the two week trial, in 2013, Kostopoulos stopped two separate motorists in order to steal their money, in violation of the motorists’ rights under the Fourth Amendment of the U.S. Constitution to be free from unreasonable seizures of their property. Kostopoulos subsequently obstructed justice by making misleading statements in order to prevent the communication of information about his crimes to federal law enforcement officers.
“The defendant abused the power granted to him as a law enforcement officer to prey upon unsuspecting motorists for personal gain and then lied about his criminal actions to investigating detectives,” said Acting Assistant Attorney General Thomas Wheeler of the Justice Department’s Civil Rights Division. “He violated not only the law, but also the public trust.”
“The U.S. Attorney’s Office, the Department of Justice and the FBI stand committed to holding those who betray the public trust accountable for their criminal actions, while supporting the overwhelming majority of men and women who proudly uphold their duties to serve and protect the community as law-abiding police officers,” said U.S. Attorney Ferrer.
“This officer's abuse of authority will not be tolerated,” said Special Agent in Charge Piro. “His actions do not represent all other law enforcement officers who are diligent, hard working professionals.”
Kostopoulos faces a statutory maximum sentence of 22 years in prison on these charges. Sentencing is scheduled for April 19 before U.S. District Court Judge Marcia G. Cooke in Miami, Florida.
This case was investigated by the FBI, with assistance from the Homestead Police Department and the Miami-Dade Police Department. The matter is being prosecuted by Assistant U.S. Attorneys Edward N. Stamm and Tonya R. Long of the Southern District of Florida and Samantha Trepel of the Civil Rights Division.Miami-Dade Police Detective Convicted of Civil Rights Offenses for Stealing Property from Motorists and Obstructing JusticeRead the Press Release
The Justice Department announced today that a federal jury convicted former Miami-Dade Police Detective William Kostopoulos, 49, with using his law enforcement authority to violate the civil rights of two motorists as well as obstructing justice. Kostopoulos is scheduled to be sentenced before United States District Judge Marcia G. Cooke, in Miami, on April 19, 2017 at 9:30 a.m.
United States Attorney for the Southern District of Florida Wifredo A. Ferrer, Acting Assistant Attorney General Thomas Wheeler of the Justice Department’s Civil Rights Division, and Special Agent in Charge George L. Piro of the Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
According to evidence presented during the two-week trial, in 2013, Kostopoulos stopped two separate motorists in order to steal their money, in violation of the motorists’ rights under the Fourth Amendment of the U.S. Constitution to be free from unreasonable seizures of their property. Kostopoulos subsequently obstructed justice by making misleading statements in order to prevent the communication of information about his crimes to federal law enforcement officers.
U.S. Attorney Ferrer said, “The U.S. Attorney’s Office, the Department of Justice and the FBI stand committed to holding those who betray the public trust accountable for their criminal actions, while supporting the overwhelming majority of men and women who proudly uphold their duties to serve and protect the community as law-abiding police officers.”
“The defendant abused the power granted to him as a law enforcement officer to prey upon unsuspecting motorists for personal gain and then lied about his criminal actions to investigating detectives,” said Acting Assistant Attorney General Thomas Wheeler of the Justice Department’s Civil Rights Division. “He violated not only the law, but also the public trust.”
“This officer's abuse of authority will not be tolerated,” said FBI Special Agent in Charge George L. Piro. “His actions do not represent all other law enforcement officers who are diligent, hard working professionals.”
Kostopoulos faces a statutory maximum sentence of 22 years in prison on these charges. Sentencing is scheduled for April 19 before U.S. District Court Judge Marcia G. Cooke in Miami, Florida.
This case was investigated by the FBI, with assistance from the Homestead Police Department and the Miami-Dade Police Department. The matter is being prosecuted by Assistant U.S. Attorneys Edward N. Stamm and Tonya R. Long of the Southern District of Florida and Samantha Trepel of the Civil Rights Division.
Miami-Dade Police Detective Convicted of Civil Rights Offenses for Stealing Property from Motorists and Obstructing JusticeRead the Press Release
The Justice Department announced today that a federal jury convicted former Miami-Dade Police Detective William Kostopoulos, 49, with using his law enforcement authority to violate the civil rights of two motorists as well as obstructing justice. Kostopoulos is scheduled to be sentenced before United States District Judge Marcia G. Cooke, in Miami, on April 19, 2017 at 9:30 a.m.
United States Attorney for the Southern District of Florida Wifredo A. Ferrer, Acting Assistant Attorney General Thomas Wheeler of the Justice Department’s Civil Rights Division, and Special Agent in Charge George L. Piro of the Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
According to evidence presented during the two-week trial, in 2013, Kostopoulos stopped two separate motorists in order to steal their money, in violation of the motorists’ rights under the Fourth Amendment of the U.S. Constitution to be free from unreasonable seizures of their property. Kostopoulos subsequently obstructed justice by making misleading statements in order to prevent the communication of information about his crimes to federal law enforcement officers.
U.S. Attorney Ferrer said, “The U.S. Attorney’s Office, the Department of Justice and the FBI stand committed to holding those who betray the public trust accountable for their criminal actions, while supporting the overwhelming majority of men and women who proudly uphold their duties to serve and protect the community as law-abiding police officers.”
“The defendant abused the power granted to him as a law enforcement officer to prey upon unsuspecting motorists for personal gain and then lied about his criminal actions to investigating detectives,” said Acting Assistant Attorney General Thomas Wheeler of the Justice Department’s Civil Rights Division. “He violated not only the law, but also the public trust.”
“This officer's abuse of authority will not be tolerated,” said FBI Special Agent in Charge George L. Piro. “His actions do not represent all other law enforcement officers who are diligent, hard working professionals.”
Kostopoulos faces a statutory maximum sentence of 22 years in prison on these charges. Sentencing is scheduled for April 19 before U.S. District Court Judge Marcia G. Cooke in Miami, Florida.
This case was investigated by the FBI, with assistance from the Homestead Police Department and the Miami-Dade Police Department. The matter is being prosecuted by Assistant U.S. Attorneys Edward N. Stamm and Tonya R. Long of the Southern District of Florida and Samantha Trepel of the Civil Rights Division.
Mexican National Facing Federal Charge Arising Out of Seizure of Ten Pounds of MethamphetamineRead the Press Release
ALBUQUERQUE – Earlier this week, a U.S. Magistrate Judge sitting in Albuquerque, N.M., found probable cause to support a methamphetamine trafficking charge against Juan Carlos Corral-Garcia. Today the Magistrate Judge ordered Corral-Garcia, 28, a Mexican national illegally in the United States, detained pending trial based on findings that he poses a risk of flight and danger to the community.
Corral-Garcia is charged by criminal complaint with possessing methamphetamine with intent to distribute. The criminal complaint alleges that Corral-Garcia committed the crime on Jan. 27, 2017 in Bernalillo County, N.M. According to the complaint, a New Mexico State Police officer allegedly found 10.03 kilograms (22.12 pounds) of methamphetamine in Corral-Garcia’s vehicle during a routine traffic stop. The methamphetamine allegedly was contained in four clear packages each of which contained 20 smaller packages of methamphetamine.
If convicted of the charge against him, Corral-Garcia faces a statutory minimum penalty of ten years and a maximum of life in federal prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by Homeland Security investigations and the New Mexico State Police. Assistant U.S. Attorney Samuel A. Hurtado is prosecuting the case.
Manhattan U.S. Attorney and NYPD Commissioner Announce Arrest of Narcotics Dealer Responsible for Heroin Overdose DeathRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of a complaint charging FABRICE DIAZ, 24, with narcotics dealing that resulted in the overdose death of a 25-year-old man.
The complaint alleges that DIAZ participated in a conspiracy to distribute heroin, and that heroin distributed by DIAZ resulted in the death of Robert Vivolo, age 25, of the Bronx, New York, on October 21, 2016. DIAZ was arrested this morning and will be presented later today in Manhattan federal court before United States Magistrate Judge Katharine H. Parker. DIAZ faces a mandatory minimum term of 20 years in prison.
U.S. Attorney Preet Bharara stated: “Once again, we are confronted with the lethal effects of the opioid abuse epidemic. As alleged, Fabrice Diaz sold the heroin that sadly killed Robert Vivolo. Thanks to the outstanding partnership with the New York City Police Department, we seek to combat the deadly opioid crisis one alleged drug dealer at a time.”
According to the Complaint[1]:
From at least in or about October 2016 up to January 2017, in the Southern District of New York and elsewhere, FABRICE DIAZ and others conspired to sell heroin. As part of that conspiracy, on or about October 21, 2016, DIAZ exchanged text messages with Robert Vivolo, a 25-year-old heroin addict who lived on City Island, in the Bronx, New York. In those messages, DIAZ arranged to sell heroin to Vivolo, and DIAZ delivered heroin to Vivolo’s home. A short time later, Vivolo overdosed on that heroin and died.
After Vivolo’s death, DIAZ was arrested on separate charges in New Rochelle, New York, on or about January 11, 2017, in possession of 17 envelopes of heroin.
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DIAZ faces a maximum sentence of life in prison, and a mandatory minimum sentence of 20 years in prison.
The statutory maximum sentence is prescribed by Congress and is provided here for information purposes only, as any sentencing of the defendant would be determined by a judge.
Mr. Bharara praised the investigative work of the NYPD. Mr. Bharara also thanked the Westchester County District Attorney’s Office and the New Rochelle Police Department for their assistance in the investigation. Mr. Bharara noted that the investigation remains ongoing.
This matter is being handled by the Office’s Narcotics Unit. Assistant United States Attorney David W. Denton Jr. is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Manhattan Man Sentenced to More Than 6 Years in Prison for Child Pornography OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that PAAL KLYKKEN, 35, was sentenced to 78 months in prison and supervised release for seven years for distributing and receiving child pornography. KLYKKEN pled guilty on September 1, 2016, before U.S. District Judge Valerie E. Caproni, who also imposed today’s sentence.
U.S. Attorney Preet Bharara stated: “Paal Klykken admitted to serially taking advantage of and victimizing his minor neighbor. Today, he has been sentenced to prison for his predatory criminal behavior.”
According to documents filed in this case and statements made in related court proceedings:
From at least early 2015 up to and including January 2016, KLYKKEN communicated by email and a social messaging app with a minor girl (the “Minor Victim”) who lived in a neighboring apartment. Because of the relative positions of their respective apartments, KLYKKEN was able to view inside the Minor Victim’s bedroom from his own apartment window while they communicated. The communications were often sexual, and KLYKKEN repeatedly enticed the Minor Victim to pose in sexual positions and engage in sexually explicit conduct while KLYKKEN watched from his home, often with the aid of a camera.
On March 18, 2016, KLYKKEN was arrested in Manhattan. After his arrest, KLYKKEN admitted, among other things, that, in addition to the conduct with the Minor Victim, for approximately 18 years, he had live-streamed and downloaded child pornography.
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Mr. Bharara praised the efforts of the Federal Bureau of Investigation and expressed deep appreciation for the contribution of the New York City Police Department Vice Major Case Squad to this investigation.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Jonathan Rebold is in charge of the prosecution.
Long Island Investment Adviser Sentenced to 42 Months in PrisonRead the Press Release
CENTRAL ISLIP, N.Y. – Earlier today, Daniel Winston LaMarco, a Huntington, New York investment adviser, was sentenced to 42 months in prison and three years of supervised release following his August 2016 guilty plea to wire fraud and commodities fraud. As part of the sentence, LaMarco was also ordered to pay $872,600 in restitution to the investors in a commodity pool he ran which invested in the Foreign Exchange Market. The sentencing proceeding was held before United States District Judge Arthur D. Spatt.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York. Mr. Capers thanked the criminal investigators in the United States Attorney’s Office for their excellent work on this investigation.
Beginning in approximately January 2011, LaMarco began to solicit investors to fund a commodity pool he ran which invested in the Foreign Exchange Market. LaMarco made false claims regarding his investment performance, and touted the safety of his investment strategy. Among his victims, LaMarco encouraged two individuals to invest proceeds from a home equity loan with him. As part of his fraud scheme, LaMarco sent false monthly statements to investors representing that their investments were growing, inducing new investments from the investors, and discouraging them from withdrawing their investments with him. The monthly statements claimed the investments had more than doubled in value and were worth as much as $1,796,126.22. In truth, LaMarco had lost almost all of the investors’ money, which totaled more than $872,000, in the Foreign Exchange Market.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Mark E. Bini is in charge of the prosecution.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
The Defendant:
DANIEL WINSTON LAMARCO
Age: 51
Huntington, New York
E.D.N.Y. Docket No. 16-CR-433 (ADS)
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney, Deborah R. Gilg, announced that on February 3, 2017, Travis John Haas, 37, of Lincoln, was sentenced to 10 years in prison, (120 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 April 17, 2015, and November 12, 2015. Following the prison term, Haas will serve five years on supervised release. He was also ordered to pay a $100 special assessment.
Information obtained by law enforcement indicated that Haas was responsible for the distribution of at least 500 grams, (approximately 18 ounces) of methamphetamine during that time. In August of 2015, Haas was contacted by Lincoln Police officers, and he was found in possession of a small amount of methamphetamine. On November 12, 2015, cleaning staff at a Lincoln motel found approximately ¾ ounce of methamphetamine in a make-up bag left behind in a room after Haas and a companion checked out. Haas was contacted by Lincoln Police officers in the motel parking lot after he returned to the motel in an effort to retrieve the methamphetamine. At that time, Haas told officers that he had been selling large quantities of methamphetamine for six to seven months.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Leader of Interstate Pill-Distribution Conspiracy Sentenced to 17 Years in PrisonRead the Press Release
Benjamin Edward Henry Bradley, 33, of Detroit, Michigan, has been sentenced to 17 years in prison, for his role as the primary supplier of tens of thousands of diverted prescription pills that were shipped from the Detroit area into Middle Tennessee, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
Bradley and 17 co-defendants were indicted on March 11, 2015, and charged with conspiracy to distribute, and possess with intent to distribute, Schedule II controlled substances, including Oxycodone and Oxymorphone. Bradley and two co-defendants were also charged with conspiracy to commit money laundering.
The charges stemmed from a multi-year investigation conducted by local, state, and federal law enforcement agencies. That investigation, which included the use of wiretap interceptions, revealed that Bradley, who worked at a hospital in Detroit, regularly bought up large quantities of diverted pills from a variety of sources, and sent them to Tennessee through the mail or by paying co-conspirators to deliver them. The conspirators then laundered the proceeds by making cash deposits in Tennessee into bank accounts controlled by Bradley in Detroit.
On June 8, 2016, Bradley pleaded guilty to both charges. At the sentencing hearing on February 1, 2017, U.S. District Judge Aleta A. Trauger found that Bradley was a leader of a drug-trafficking organization that dated back to 2009 and involved the distribution of tens of thousands of pills. Bradley’s 17-year prison sentence will be followed by three years of supervised release.
This extensive investigation was conducted by the Drug Enforcement Administration; the IRS-Criminal Investigation; the Bureau of Alcohol, Tobacco, Firearms & Explosives; the FBI; the Tennessee Bureau of Investigation; the Rutherford County, Tenn. Sheriff’s Dept.; the Smyrna, Tenn. Police Dept.; the Mt. Juliet, Tenn. Police Dept.; the 20th Judicial District Drug Task Force; the Michigan State Police; the Brighton, Mich. Police Dept.; and the Clinton township, Mich. Police Dept. Assistant United States Attorneys Cecil VanDevender and Brent Hannafan prosecuted the case.
Largo Man Sentenced to Almost 13 Years for Trafficking MethamphetamineRead the Press Release
Tampa, Florida – U.S. District Judge Charlene E. Honeywell has sentenced Zhenya Bulgakov (40, Largo) to 12 years and 11 months in federal prison for possessing with the intent to distribute 50 grams or more of methamphetamine. The Court also ordered him to forfeit a Hummer limousine that is traceable to the proceeds of the offense. Bulgakov pleaded guilty on September 19, 2016.
According to court documents, on April 29, 2016, Bulgakov was driving with a passenger in his truck in the Clearwater Beach area. During a traffic stop and search of that vehicle, law enforcement officers located a hidden safe containing more than $113,000 in cash and approximately 360 grams of 99% pure methamphetamine. Prior to that date, Bulgakov had purchased, transported, and sold 14 pounds of methamphetamine and had arranged to purchase a similar amount in the near future.
This case was investigated by the FBI. It was prosecuted by Assistant United States Attorney Gregory T. Nolan.
Judge Sentences Washington County Man to 3 Years’ Probation for Ticket Fraud SchemeRead the Press Release
PITTSBURGH – A resident of Washington, Pennsylvania, has been sentenced in federal court to a term of three years probation, of which two months will be on home detention, for his conviction of conspiracy and wire fraud, Acting United States Attorney Soo C. Song announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Jamie McNamara, 32, of Washington, PA.
According to information presented to the court, from on or about March 1, 2014 to March 17, 2014, McNamara falsely represented that he had tickets to entertainment events to potential purchasers on Craigslists. He would then have potential purchasers wire money for these tickets, but McNamara did not provide any tickets.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of McNamara.