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23 March 2017
Altoona Man Admits Possessing Child PornographyRead the Press Release
JOHNSTOWN, Pa. – A Blair County resident pleaded guilty in federal court to a charge of possession of child pornography, Acting United States Attorney Soo C. Song announced today.
Timothy Hufford, 56, of Altoona, Pa., pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on August 18, 2015, Hufford knowingly possessed pictures and videos in individual computer graphic files which were produced using prepubescent minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
Judge Gibson scheduled sentencing for July 6, 2017, at 10 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, Pennsylvania State Police and Altoona Police Department conducted the investigation that led to the prosecution of Hufford.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better 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.
Acting Manhattan U.S. Attorney Announces Settlement with American University of Beirut, Resolving Claims It Provided Material Support to Three Entities Designated Prohibited Parties Under U.S. LawRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Jonathan Schofield, Special Agent in Charge of the Office of Inspector General for the U.S. Agency for International Development (“USAID-OIG”), announced today the settlement of a civil fraud lawsuit against AMERICAN UNIVERSITY OF BEIRUT (“AUB”), a teaching-centered research university located in Beirut, Lebanon, that receives funding from USAID. The settlement resolves claims that during the period December 2007 through March 2016 (the “Covered Period”), AUB violated the federal False Claims Act (the “FCA”) by providing material support to three entities that had been included on the U.S. Office of Foreign Assets Control’s (“OFAC”) Specially Designated Nationals and Blocked Persons List (the “SDN List”). The SDN List is a list of individuals and entities, such as terrorists and narcotics traffickers, that have been identified as engaging in conduct antithetical to U.S. interests. The three SDN List entities at issue here are al Nour Radio, al Manar TV, and Jihad al-Binaa. Al Nour Radio and al Manar TV have been on the SDN List since March 2006, while Jihad al-Binaa has been on the SDN List since February 2007, and thus all three are prohibited parties under U.S. law. The Government’s Complaint alleges that AUB provided material support to those three SDN List entities by (1) providing specialized training on a variety of media topics to representatives of al Nour Radio and al Manar TV, and (2) including Jihad al-Binaa in a database that AUB maintained on its public website (the “NGO database”) for the stated purpose of connecting Non-Governmental Organizations (“NGOs”) with students and others interested in assisting them.
Today, U.S. District Court Judge J. Paul Oetken approved a settlement agreement to resolve the Government’s claims against AUB. Under the settlement, AUB is required to pay $700,000 to the United States and has revised its internal policies to ensure that, going forward, it complies with applicable U.S. laws. In addition, in connection with the settlement, AUB has admitted to and accepted responsibility for (1) holding journalism training workshops that were attended by representatives of entities that were prohibited parties under U.S. law, and (2) including in the NGO database an entity that was a prohibited party under U.S. law.
Acting Manhattan U.S. Attorney Joon H. Kim said: “For years, the American University of Beirut accepted grant money from USAID, but failed to take reasonable steps to ensure against providing material support to entities on the Treasury Department’s prohibited list. Without such proper safeguards, the University ended up providing training to entities that were prohibited parties under U.S. law. With today’s settlement, the University is being made to pay a financial penalty for its conduct, and importantly, it has admitted to its conduct and agreed to put proper precautions in place to ensure that it does not happen again.”
USAID-OIG Special Agent in Charge Jonathan Schofield said: “USAID OIG thanks the Southern District of New York for partnering so effectively to ensure the programs of USAID are executed safely and effectively. Implementers executing USAID’s critical programs around the world, regardless of the context, must remember that all contract regulations and applicable laws still apply to them. Too often, implementers and funding recipients report to USAID that they have taken necessary precautions or requisite steps – such as checking the SDN List – when in fact those actions were not undertaken or done properly. Today, we see once again that there are consequences for those who fail to live up to their obligations while executing their award or mandate under a USAID program.”
As alleged in the Government’s Complaint and set forth in the parties’ settlement agreement, both of which have been filed in Manhattan federal court:
Since at least 2007, AUB has received monetary grants from USAID to fund various university projects and programs. As a condition of receiving those grants, AUB submitted certifications to USAID each year in which it represented, inter alia, that it “has not provided, and will take all reasonable steps to ensure that it does not and will not knowingly provide, material support or resources to any individual or entity that commits, attempts to commit, advocates, facilitates, or participates in terrorist acts, or has committed, attempted to commit, facilitated, or participated in terrorist acts.” In these annual certifications, AUB further represented that “[b]efore providing any material support or resources to an individual or entity, [it] will verify that the individual or entity does not appear . . . on the [SDN List].” The annual certifications defined “material support and resources” to include, among other things, “training, expert advice or assistance, . . . [and] personnel.”
Notwithstanding the above-referenced certifications, during the Covered Period, AUB provided specialized training to al Nour Radio and al Manar TV. Specifically, AUB held three multi-day training workshops (in 2007, 2008 and 2009) during which it provided specialized training on a variety of media topics to a group of journalists that included representatives of al Nour Radio and al Manar TV. For example, one of the training workshops, titled “Citizen/Online Journalism,” was conducted over five days in December 2007, and consisted of two Internet and news media experts providing training to the attendees – one of whom was from al Nour Radio – on various topics, including the creation of online blogs; photo, audio and video editing and production; linking to other websites; podcasting; packaging stories for multimedia and different platforms; and presentation of final products. The three training workshops provided the two SDN List entities with knowledge and insight they could use to more effectively communicate their desired message and reach their target audience. At the time the three training workshops were conducted, AUB was on notice that they were being attended by representatives of al Nour Radio and al Manar TV.
In addition, during the Covered Period, AUB allowed Jihad al-Binaa to be included in the NGO database. This was also contrary to the above certifications, as it provided a mechanism for this SDN List entity to recruit persons interested in assisting it.
Because AUB provided specialized journalism training to representatives of two SDN List entities and included a third SDN List entity in the NGO database, its certifications to USAID during the Covered Period that it had not provided and would take all reasonable steps to ensure that it did not knowingly provide material support or resources to SDN List entities were false. As a result of those false certifications, AUB induced USAID to provide it with monetary grants that but for the false certifications, USAID would not have provided.
As part of the settlement, AUB admitted, acknowledged, and accepted responsibility for the following conduct:
- During the period 2007 through 2009, as part of its Journalism Training Program, AUB held on-campus workshops taught by experienced journalists, highly-regarded academics, and representatives from government organizations. The workshops were full-day events which typically took place over the course of several days.
- Three of the Journalism Training Program workshops that AUB held during the period 2007 through 2009 were conducted in a manner that was inconsistent with AUB’s certifications to USAID, in that they were attended by representatives of entities that were prohibited parties under U.S. law.
- During the Covered Period, AUB maintained a public website that included a database of NGOs. The purpose of this database was to connect students interested in engaging in social work with relevant NGOs.
- During the Covered Period, AUB included information in the NGO database that was inconsistent with its certifications to USAID. Specifically, AUB included in the NGO database an entity that was a prohibited party under U.S. law, along with contact information for that entity.
In connection with the settlement, AUB has also agreed to revise its internal policies to ensure that it complies with applicable U.S. laws and the terms of the grants it receives. Such revisions include revisions to its USAID Grant Compliance Policy and its Policy on Compliance with U.S. Economic Sanctions Programs to provide for additional training of AUB administrative and academic staff on compliance with applicable U.S. laws and grant terms; regular audits by an external auditor of AUB’s compliance with applicable U.S. laws and grant terms; and periodic reviews for purposes of making appropriate updates to relevant AUB internal policies and procedures. Moreover, upon request by USAID or any other U.S. agency that provides AUB with grants or any other type of funding, AUB shall provide such agency with, inter alia, a list of the administrative and academic staff who received the above-referenced training, together with a description of the training they received, as well as a written report, prepared by the external auditor, of the results of each of the above-referenced audits, and a description of any actions taken by AUB in response to such audits.
In connection with the filing of the lawsuit and settlement, the Government joined a private whistleblower lawsuit that previously had been filed under seal pursuant to the False Claims Act.
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Mr. Kim thanked USAID-OIG for its investigative efforts and assistance with the case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Christopher B. Harwood is in charge of the case.
22 March 2017
“Protecting Our Tribal Communities: Responding to Gun Violence and Its Victims” Conference to be held in Pine Ridge on April 6Read the Press Release
United States Attorney Randolph J. Seiler announced that a half-day conference addressing gun violence in Indian country will be held in Pine Ridge, South Dakota, on Thursday April 6, 2017. The event will be held in conjunction with National Crime Victim’s Rights Week and is hosted by the U.S. Attorney’s Office, the Oglala Sioux Tribe, and the Bureau of Alcohol, Tobacco, Firearms & Explosives.
On the agenda is Nikki Munholand, a Tribal Administrator who survived a mass shooting which took place during a tribal council meeting in which four tribal members, including the Tribal Chairman, were killed. Sheriff Michael Poindexter was one of the responding officers who worked closely with the victims. They will share their story of survival and the effect of the shooting on the community.
Representatives from several local victim service providers will have a display/information booth. Following the conference, a ceremony will be held honoring four individuals who have provided outstanding services to victims of crime in Indian country.
The events will be held at the SuAnn Big Crow Center in Pine Ridge, located at 1 Positive Place. The conference will run from 10:00 am – 1:00 pm, followed by the National Crime Victims’ Rights Week presentations. The public is welcome and a free lunch will be served.
Save The Date FlyerZTE Corporation Pleads Guilty for Violating U.S. Sanctions by Sending U.S.-Origin Items to IranRead the Press Release
ZTE Corporation pleaded guilty today to conspiring to violate the International Emergency Economic Powers Act (IEEPA) by illegally shipping U.S.-origin items to Iran, obstructing justice and making a material false statement.
Attorney General Jeff Sessions of the U.S. Department of Justice, Acting Assistant Attorney General Mary B. McCord for National Security, U.S. Attorney John R. Parker for the Northern District of Texas and Assistant Director Bill Priestap for the FBI’s Counterintelligence Division made the announcement today. The plea was entered before U.S. District Judge Ed Kinkeade.
Specifically, ZTE pleaded guilty to one count of conspiring to unlawfully export in violation of the IEEPA, one count of obstruction of justice and one count of making a material false statement. ZTE agreed to pay a fine in the amount of $286,992,532 and a criminal forfeiture in the amount of $143,496,266, and submit to a three-year period of corporate probation, during which time an independent corporate compliance monitor will review and report on ZTE’s export compliance program.
As previously announced on March 7, at the time that ZTE agreed to plead guilty, the Corporation simultaneously reached settlement agreements with the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) and the U.S. Department of the Treasury’s Office of Foreign Assets Control. In total ZTE has agreed to pay the U.S. Government $892,360,064. The BIS has suspended an additional $300,000,000, which ZTE will pay if it violates its settlement agreement with the BIS.
The plea agreement ended a five-year joint investigation into ZTE’s export practices, which was handled by the DOJ’s National Security Division, the U.S. Attorney’s Office for the Northern District of Texas, the FBI, the BIS, the Department of Homeland Security and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
According to plea documents filed in the case, between January 2010 and January 2016, ZTE, either directly or indirectly through a third company, shipped approximately $32,000,000 of U.S.-origin items to Iran without obtaining the proper export licenses from the U.S. government. In early 2010, ZTE began bidding on two different Iranian projects. The projects involved installing cellular and landline network infrastructure. Each contract was worth hundreds of millions of U.S. Dollars and required U.S. components for the final products.
In December 2010, ZTE finalized the contracts with Iranian customers. The contracts were signed by four parties: the Iranian customer, ZTE, Beijing 8 Star and ZTE Parsian (ZTE’s subsidiary in Iran). Court documents explain that ZTE identified Beijing 8 Star (8S) as a possible vehicle for hiding its illegal shipments of U.S. items to Iran. It intended to use 8S to export U.S.-origin items from China to ZTE customers in Iran. As part of this plan, ZTE supplied 8S with necessary capital and took over control of the company.
Under the terms of the Iran contracts, ZTE agreed to supply the “self-developed equipment,” collect payments for the projects and manage the whole network. ZTE Parsian was to provide locally purchased materials and all services. 8S was responsible for “relevant third-party equipment,” which primarily meant parts that would be subject to U.S. export laws. ZTE intended for 8S to be an “isolation company,” that is, ZTE intended for 8S (rather than ZTE) to purchase the embargoed equipment from suppliers and provide that equipment under the contract in an effort to distance ZTE from U.S. export-controlled products, and insulate ZTE from U.S. export violations. However, 8S had no purchasing or shipping history and no real business reputation.
Ultimately, although 8S was a party to the contracts, ZTE itself purchased and shipped the embargoed goods under the contract. In its shipping containers, it packaged the U.S. items with its own self-manufactured items to hide the U.S.-origin goods. ZTE did not include the U.S. items on the customs declaration forms, though it did include the U.S.-origin items on the packing lists included inside of the shipments.
In early 2011, when ZTE determined that the use of 8S was insufficient to hide ZTE’s connection to the illegal export of U.S.-origin goods to Iran, senior management of ZTE ordered that a company-level export control project team study, handle and respond to the company’s export control risks. In September 2011, four senior managers signed an Executive Memo, which proposed that the company identify and establish new “isolation companies” that would be responsible for supplying U.S. component parts necessary for projects in embargoed countries. The isolation companies would conceal ZTE’s role in the transshipment scheme and would insulate ZTE from export control risks.
In March 2012, Reuters published an article regarding ZTE’s sale of equipment to Iran. In response, ZTE made a decision to temporarily cease sending new U.S. equipment to Iran. By November 2013, however, ZTE had resumed its business with Iran. Beginning in July 2014, ZTE began shipping U.S.-origin equipment to Iran once again without the necessary licenses.
Instead of using 8S, however, ZTE identified a new isolation company. ZTE signed a contract with the new isolation company, which in turn signed contracts with the two Iranian customers. According to the new scheme, ZTE purchased and manufactured all relevant equipment – both U.S.-origin and ZTE-manufactured – and prepared them for pick-up at its warehouse by the new isolation company. The new isolation company then shipped all items to the Iranian customers. Shipments to Iran continued from January 2014 through January 2016.
Despite its knowledge of an ongoing grand jury investigation into its Iran exports, according to plea documents, ZTE took several steps to conceal relevant information from the U.S. government. It further took affirmative steps to mislead the U.S. government. In the summer of 2012, ZTE asked each of the employees who were involved in the Iran sales to sign nondisclosure agreements in which the employees agreed to keep confidential all information related to the company’s U.S. exports to Iran.
During meetings throughout late 2014, late 2015 and early 2016, outside counsel for ZTE, unaware that the statements ZTE had given to counsel for communication to the U.S. Government were false, represented to the DOJ and federal law enforcement agents that ZTE had stopped doing business with Iran and therefore was no longer violating U.S. export laws. Similarly, on July 8, 2015, in-house counsel for ZTE accompanied outside counsel in a meeting with the DOJ and federal law enforcement agents and reported that ZTE was abiding by U.S. laws. That statement was also false.
ZTE also hid data related to its resumed illegal sales to Iran from a forensic accounting firm hired by defense counsel to conduct an internal investigation into the company’s Iran sales. ZTE knew the forensic accounting firm was reviewing its systems and knew that the analysis was being reported to the DOJ and U.S. law enforcement. To avoid detection of its 2013-2016 resumed illegal sales to Iran, ZTE formed the “contract data induction team” (“CDIT”). The CDIT was comprised of approximately 13 people whose job it was to “sanitize the databases” of all information related to the 2013-2016 Iran business. The team identified and removed from the databases all data related to those sales. ZTE also established an auto-delete function for the email accounts of those 13 individuals on the CDIT, so their emails were deleted every night – a departure from its normal practices – to ensure there were no communications related to the hiding of the data.
The case is being prosecuted by Deputy Chief Elizabeth Cannon of the National Security Division’s Counterintelligence and Export Control Section and Assistant U.S. Attorney Mark Penley of the Northern District of Texas.
Woman from Peru Charged with Identity TheftRead the Press Release
WICHITA, KAN. – A woman from Peru who came to the United States in 2005 on a visitor’s visa and stayed has been charged in federal court here with identity theft and document fraud, U.S. Attorney Tom Beall said today.
The woman, Jennifer Leyva, 35, who has lived in Wichita since at least 2013, is alleged to have used at least three different identities to get jobs at several Wichita-area businesses. She was arrested Tuesday by agents of the Kansas Department of Labor and Homeland Security Investigations, who investigated the case, and she was scheduled to make an initial court appearance Wednesday before U.S. Magistrate Judge Gwynne E. Birzer.
A federal grand jury indicted Leyva March 16 on 10 counts, including two counts of aggravated identity theft, two counts of identity document fraud, two counts of lying of an I-9 Employment Eligibility Verification form, and four counts of misuse of a Social Security number. The charges relate to the defendant’s employment at health care-related businesses in Wichita.
If convicted, the defendant faces up to five years in prison and a $250,000 fine on each count. Assistant U.S. Attorney Brent Anderson is prosecuting. As in any criminal case, defendants are presumed innocent until and unless proven guilty.
Woman Pleads Guilty to Conspiracy to Commit Bank FraudRead the Press Release
Contact Person: Jamie L. Schoen
Greenville, South Carolina---- United States Attorney Beth Drake stated that Katie Marie Reavely, age 26, of Minneapolis, Minnesota, entered a guilty plea in federal court in Greenville to Conspiracy to Commit Bank Fraud, in violation of Title 18 U.S.C. § 1349. United States District Judge Bruce H. Hendricks of Charleston accepted the guilty plea and will impose the sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that on April 29, 2015, Reavely used counterfeit identification at a SunTrust Bank branch in Anderson to withdraw $9,000 in cash and $40,000 in checks made payable to co-conspirators from a bank account that did not belong to her. Shortly thereafter, co-conspirators entered other SunTrust Bank branches in upstate South Carolina to attempt to cash the checks.
On May 22, 2015, Reavely attempted to use counterfeit checks at a Cedartown, Georgia Suntrust Bank branch. On June 23, 2015, in East Ridge, Tennessee, Reavely again attempted to withdraw funds from a bank account that did not belong to her using counterfeit identification. Law enforcement apprehended Reavely, and she confessed to attempting to defraud banks on numerous occasions.
Ms. Drake stated that the maximum penalty Reavely could receive is 30 years imprisonment and a fine of $1,000,000 dollars. The case was investigated by agents of the United States Secret Service, Anderson Police Department, Greenville City Police Department, Conyers Police Department, Cedartown Police Department, and East Ridge Police Department. Assistant United States Attorney Jamie Lea Schoen of the Greenville office prosecuted the case.
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Windsor Woman Charged with Mail and Wire FraudRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Brenda Hilton, age 59, of Windsor, Pennsylvania, was indicted by a federal grand jury on mail and wire fraud charges.
According to United States Attorney Bruce D. Brandler, Hilton worked as a claims specialist responsible for managing and authorizing payments relating to workers’ compensation claims at an insurance company that provides commercial property-casualty insurance to companies throughout North America. The indictment alleges that in 2012, Hilton submitted three fraudulent claims of approximately $27,728 for processing. The fraudulent claims that Hilton submitted directed all payments be sent to Hilton’s home address. Two of the three checks were deposited into Hilton’s personal bank account.
This case was investigated by the United States Postal Inspection Service. Assistant U.S. Attorney Chelsea Schinnour is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for each count under federal law is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Westminster Man Pleads Guilty to Child Porn ChargesRead the Press Release
Contact Person: Lance Crick (864) 282-2105
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Vern McPherson, age 53, of Westminster, pled guilty in federal court in Greenville, to possession and transporting child pornography, a violation of Title 18, United States Code, Section 2252A. United States District Judge Bruce H. Hendricks of Charleston accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that law enforcement received an investigative lead from HSI Cyber Crimes Center that a server in Switzerland (which had been seized by the Swiss Federal Police) revealed McPherson’s IP address as having accessed child pornography from the server.
After reviewing material from the Swiss case, a federal search warrant was obtained for McPherson’s home. A forensic exam of his computer revealed 693 images and 2 videos of child pornography.
Ms. Drake stated the maximum penalty McPherson can receive is a fine of $250,000 and/or imprisonment for no more than 20 years, plus a special assessment of $100.
The case was investigated by agents of ICE-Homeland Security Investigations. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
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West Monroe Man Sentenced to 262 Months in Prison for Distributing Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Richard S. Buffham, 49, of West Monroe, New York, was sentenced today to serve 262 months in prison for distributing child pornography, announced United States Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI). The conviction was the result of a joint investigation by HSI, the New York State Police Troop D Computer Crime Unit, and the New York State Police, Bureau of Criminal Investigation (BCI-Pulaski).
As part of his guilty plea, Buffham admitted that he distributed images of child pornography in an online chat group on September 23, 2015, September 24, 2015, and September 27, 2015. A search warrant of the defendant’s home and computer was executed on June 16, 2016, leading to the recovery of evidence.
Senior United States District Judge Norman A. Mordue also imposed a lifetime term of supervised release, which will start after Buffham is released from prison, and ordered payment of a $300 special assessment. As a result of his conviction, Buffham will be required to register as a sex offender upon his release from prison. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was prosecuted by Assistant United States Attorney Geoffrey Brown.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Virginia Man Sentenced for International Parental KidnappingRead 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 Philip Zodhiates, 61, of Waynesboro, Virginia, who was convicted by a federal jury of international parental kidnapping and conspiracy to commit international parental kidnapping, was sentenced to 36 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorneys Paul Van de Graaf and Michael DiGiacomo, who handled the prosecution of the case, stated that beginning in 2009, the defendant conspired with Lisa Miller to take Miller’s then seven-year-old daughter from Virginia to Nicaragua. Zodhiates transported Miller and the child to the Buffalo area where the two crossed over the Rainbow Bridge Port of Entry into Canada. Miller and the child then flew from Toronto, Ontario to Nicaragua. After arriving in Nicaragua, Miller was sheltered and assisted by others who had been recruited by Zodhiates. Miller and the child have not been seen since.According to evidence presented by the Government, the kidnapping was an attempt to obstruct the parental rights of Miller’s former partner from a civil union that took place in the State of Vermont. The child was born during the period of the civil union and the State of Vermont accordingly governed the parental rights of both Miller and her former partner.
Lisa Miller is also charged with international parental kidnapping and conspiracy to commit international parental kidnapping but remains a fugitive. Also charged in this case is Timothy Miller (no relation) from Nicaragua. He was recently arrested after being deported by Nicaragua and is due to appear at a later date in the Western District of New York.
A fourth defendant, Kenneth Miller (also not related) from Virginia, was charged and convicted of international parental kidnapping in the District of Vermont in 2012. Kenneth Miller is currently serving a 27-month prison sentence.
The sentencing is the culmination of an investigation by the Vermont Office of the United States Marshal’s Service, under the direction of David Damag, and the Vermont Office of the Federal Bureau of Investigation, under the direction of Andrew Vale, Special Agent-in-Charge.
Utica Man Sentenced for Possessing Firearm and Ammunition as a Convicted FelonRead the Press Release
SYRACUSE, NEW YORK – Harold Jones, 23, of Utica, New York, was sentenced today to serve thirty (30) months in prison for being a felon in possession of a firearm and ammunition, announced United States Attorney Richard S. Hartunian and Special Agent in Charge Ashan M. Benedict of the New York Field Office of the United States Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
As part of his previous guilty plea, Jones admitted that on April 20, 2016, he possessed and sold a Smith & Wesson model .40 caliber pistol and twelve (12) rounds of .40 caliber ammunition for $600. Jones was prohibited from possessing the pistol and ammunition because he was convicted of prior felony offenses.
Senior U.S. District Judge Frederick J. Scullin, Jr. also imposed a three (3) year term of supervised release, which will start after Jones is released from prison, and ordered him to pay a $100 special assessment.
This case was investigated by ATF (Syracuse Resident Office) and prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.
Upstate Couple Sentenced for Drug ChargesRead the Press Release
Contact Person: Jamie L. Schoen (864) 282-2100
Greenville, South Carolina---- United States Attorney Beth Drake stated today that Norman W. Jefferson, age 51, of Greenville, South Carolina, and Roshaundra A. Griffin, age 46, of Anderson, South Carolina were sentenced today in federal court in Greenville, South Carolina, for Conspiracy to Possess With Intent to Distribute Cocaine Base, in violation of 21 U.S.C. § 841. Jefferson was also sentenced for one count Possession of a Firearm During a Drug Trafficking Crime, in violation of 18 U.S.C. § 924(c). United States District Judge Bruce H. Hendricks of Charleston sentenced Jefferson to one day imprisonment and Griffin to five years’ probation on the drug conspiracy charge, and sentenced Jefferson to sixty months for Possession of a Firearm During a Drug Trafficking Crime.
Evidence presented at the change of plea hearing established that in January and February of 2016, Griffin and Jefferson conducted multiple sales of crack cocaine from their residence. In March of 2016, Greenville Police Department obtained and executed a search of their residence. Officers located Jefferson in possession of a loaded Ruger .380 caliber pistol and both individuals in close proximity to crack cocaine. Drug paraphernalia was located throughout the house.
The case was investigated by agents of ATF and the Greenville Police Department. Assistant United States Attorney Jamie Lea Schoen of the Greenville office prosecuted the case.
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University Law Professor Charged in Multi-Million Dollar Corporate Fraud SchemeRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced a federal indictment charging EDWARD S. ADAMS, an attorney and university law professor, with orchestrating an elaborate fraud scheme to embezzle millions of dollars of investors’ funds. ADAMS is expected to make his initial appearance in U.S. District Court in Minneapolis later this week.
“The defendant’s brazen theft of millions of dollars of investor’s funds over the course of several years is compounded by the fact that he holds positions of public trust as an attorney and law school faculty member,” said FBI Special Agent in Charge for the Minneapolis Division Richard T. Thornton. “The FBI remains committed to working with our law enforcement partners to detect corporate crime in all its forms and bring those responsible to justice.”
“The U.S. Postal Inspection Service vigorously pursues prosecution of criminals who callously defraud our citizens using the U.S. Mail. Postal Inspectors are committed to ensuring public confidence in the U.S. Mail. Fraud of this magnitude is not a victimless crime. Honest, hardworking Americans pay the price when fraudsters wrongfully steal their hard-earned money.” said Postal Inspector in Charge, Craig Goldberg.
“IRS Criminal Investigation Special Agents are proud to work with our law enforcement partners and the U.S. Attorney’s Office to investigate and prosecute individuals, such as Edward Adams, who attempt to enrich themselves by fraudulent means,” stated Shea Jones, Special Agent in Charge of the St. Paul Field Office. “IRS Criminal Investigation is committed to using our financial investigative expertise to stop investment fraud schemes and other types of white collar crime."
According to the indictment and documents filed in court, Apollo Diamond, Inc. (“Apollo Diamond”) and Apollo Diamond Gemstone Corporation (“Apollo Gemstone”) (collectively, “Apollo”) was a privately held company that produced lab-grown diamonds. ADAMS, a Minneapolis lawyer and law professor, became involved with Apollo through familial relations and held various managerial titles with the company such as CFO, Secretary, EVP, and General Counsel.
According to the indictment, in 2003, at the direction of ADAMS, Apollo retained ADAMS’ financial services firm, Equity Securities, Inc., to provide investment banking services and to raise money for Apollo. Equity Securities raised more than $25 million for Apollo, for which Equity Securities received approximately $4 million in commission. Following the fundraising efforts, ADAMS continued to handle the ongoing financial matters for Apollo with minimal oversight from the Board of Directors.
According to the indictment, from 2006 through 2009, ADAMS opened multiple bank accounts with various titles including “RL Investments,” “DL Investments,” “ADR Investments,” “Apollo Diamond, Inc.,” and “Apollo Diamond Gemstone Corporation,” none of which were authorized by Apollo or its Board of Directors. ADAMS was the sole signatory and the only person with access to the accounts and the account statements, which were mailed to his personal addresses.
According to the indictment, ADAMS told investors that they could purchase shares in Apollo by making their checks payable to the accounts he controlled. He promised that their money would be used for Apollo’s operations, including working capital, funding additional diamond growing equipment, and research and development, when, in reality, ADAMS was embezzling the money. For example, ADAMS deposited approximately $2,400,000 of investors’ funds into the RL Investments account and then surreptitiously diverted more than $1,200,000 for his own personal use, an additional $101,500 to his law firm’s bank account, and distributed the remainder of the funds to various individuals as determined by ADAMS.
According to the indictment, in 2010, due in part to ADAMS’ embezzlement, Apollo could no longer meet its financial obligations and was on the brink of insolvency. To prevent his theft from being uncovered through bankruptcy litigation, ADAMS devised a scheme to appease shareholders by convincing them to convert their worthless Apollo stock into stock in a new company, which ADAMS secretly controlled. In March 2011, ADAMS and his law partner (identified in the indictment as “M.M.”) created a privately held company called Scio Diamond Technology Corporation (“Private Scio”), of which ADAMS and his partner were the sole shareholders and board members. ADAMS and his partner then notified shareholders that Private Scio would acquire the assets of Apollo for approximately $2,000,000 and that shareholders, without expending any additional money, would receive the same number of shares in the new entity. However, Private Scio was not yet capitalized and did not have the funds to complete the asset purchase. To further this scheme, ADAMS orchestrated a “reverse merger” transaction between Private Scio and Krossbow Holding Corporation, a publicly traded shell company, which resulted in a new publicly traded company, also called Scio Diamond Technology Corporation (“Public Scio”).
According to the indictment, ADAMS used Public Scio to raise the $2,000,000 necessary to complete the Apollo asset purchase, leading the former Apollo investors to believe that their investments were safe and that they now held shares in a publicly traded, operational company. However, ADAMS used Public Scio’s acquisition of Apollo as yet another opportunity for personal profit and funneled the majority of the $2,000,000 into bank accounts controlled by ADAMS. In total, from 2006 through 2013, ADAMS stole from investors more than $4.38 million and paid to his own law firm more than $2.54 million.
This case is the result of an investigation conducted by the FBI, United States Postal Inspection Service, and the Criminal Investigation Division of the IRS.
Assistant U.S. Attorneys David M. Maria and John E. Kokkinen are prosecuting the case.
Defendant Information:
EDWARD S. ADAMS, 64,
Minneapolis, Minn.
Charges:
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Mail fraud, 8 counts
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Wire fraud, 6 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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U.S. Attorney's Office and SCDC Continue Partnership for "Real-Time Reentry"Read the Press Release
Contact Person: Lance Crick (864) 282-2105
Columbia, South Carolina-----The United States Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) are continuing their partnership with the South Carolina Department of Corrections (SCDC) to keep guns out of the hands of former offenders.
The project is called “Real-Time Reentry” and focuses on violent offenders and gang members who re-offend with firearms while still under SCDC’s Intensive Supervision Services after being released. Assistant United States Attorneys (AUSAs) and law enforcement officials visit with Youthful Offenders in prison to educate them about the opportunities and resources they have to lead productive and successfully rehabilitated lives upon release. If caught with a firearm or ammunition, however, the individual will be taken into custody immediately and their case will be referred to ATF and the U.S. Attorney’s office in “real time” for federal review and prosecution in federal court, where firearms-related sentences for repeat-offenders are more considerable.
AUSAs and representatives of SCDC were at Trenton Correctional Institution yesterday, Tuesday, March 21, at 11am, for their regularly scheduled “Real-Time Reentry” visit with Youthful Offenders.
“Because of their criminal records, Youthful Offenders in the state system have created future exposure for themselves, in the federal system, if they are ever found in possession of a firearm,” said Beth Drake, United States Attorney for the District of South Carolina. USA Drake further observed, “We want these young South Carolinians to know that they are prohibited as felons from possessing firearms, and to further incentivize good choices and lawful behavior.”
The “Real-Time Reentry” partnership, which began in December 2015, is an iteration of Project Real Time, an initiative launched in the upstate in August 2015 under the U.S. Attorney’s Office’s Project Cease Fire program. Project Cease Fire brings together local, state, and federal law enforcement with the community. The collective efforts of this partnership encourage cooperation in a shared goal to make South Carolina safer by reducing gun violence, arrests, and incarceration.
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U.S. Army Employee at Picattiny Arsenal Charged with Conspiracy to Defraud the United States and to Accept BribesRead the Press Release
NEWARK, N.J. – A Pennsylvania man was charged today with abusing his position as an employee of the U.S. Army Contracting Command New Jersey by accepting bribes in connection with renovation projects at Picattiny Arsenal (PICA) and at the Joint Base McGuire-Dix Lakehurst (Ft. Dix), Acting U.S. Attorney William E. Fitzpatrick announced.
Kevin Leondi, 56, of Stroudsburg, Pennsylvania, was arrested today at PICA. He is charged by complaint with knowingly and intentionally conspiring to defraud the United States and to demand, seek, receive, accept, and agree to accept bribes in return for being influenced in the performance of his official duties. He is scheduled to appear this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to the complaint:
Leondi represented the Army as a liaison with contractors on renovation projects at PICA and Ft. Dix. A contractor (Contractor No. 1) owned and operated a construction company in Pennsylvania that had subcontracts with a business (Company No. 1) that operated as a prime contractor with respect to various construction projects at PICA and Fort Dix. From December 2010 through August 2015, Leondi demanded and accepted more than $125,000 in bribes from Contractor No. 1 in return for assisting Contractor No. 1 obtain and retain subcontracts and other favorable assistance at PICA and Fort Dix. The bribes included direct payments by Contractor No.1 to Leondi, Contractor No. 1’s purchase of unneeded equipment from Leondi at inflated prices, and Contractor No. 1’s payment for construction work done by another contractor at Leondi’s personal property. Leondi also demanded and accepted more than $30,000 in bribes from someone who managed large-scale construction projects (Project Manager No. 1) for Contractor No. 1. The bribes included cash payments as well as the purchase by Leondi of a truck from Contractor No. 1 at a significantly discounted price.
Leondi also directed Contractor No. 1 to perform free construction work at Project Manager No. 1’s home in Pennsylvania and to pay Project Manager No. 1 approximately $50,000 to help Project Manager No. 1 pay his mortgage.
The conspiracy count with which Leondi is charged carries a maximum potential penalty of five years in prison and a $250,000 fine.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh Barzey; and the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge Larry Scott Moreland, with the investigation leading to today’s charges.
The government is represented by Senior Litigation Counsel Leslie Faye Schwartz, of the U.S. Attorney’s Office’s Special Prosecutions Division, and Assistant U.S. Attorney Barbara Llanes, Deputy Chief, General Crimes Unit, of the U.S. Attorney’s Office’s Criminal Division, in Newark.
Defense counsel: Ernest D. Preate, Jr. Scranton, Pennsylvania
Two Physicians Found Guilty for Distributing OxycodoneRead the Press Release
Dr. Anthony Conrardy, age 61, and Dr. William McCutchen, III, age 46, were found guilty yesterday of unlawfully distributing Schedule II narcotics by a federal jury in Detroit, MI, acting United States Attorney Daniel L. Lemisch announced today. Dr. Anthony Conrardy was convicted of five counts of unlawfully distributing Oxycodone and Dilaudid, and Dr. William McCutchen, III was convicted of four counts of unlawfully distributing Oxycodone.
Lemisch was joined in the announcement by Special Agent in Charge Timothy J. Plancon, of the Drug Enforcement Administration, Special Agent in Charge David P. Gelios of the Federal Bureau of Investigation’s Detroit Division, Lamont Pugh, Special Agent in Charge of the Inspector General of the Department of Health and Human Services, and Manny Muriel, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation.
The jury deliberated for 8 days before returning the verdict, concluding a four-week trial before United States District Judge Arthur J. Tarnow.
Their convictions at trial follow the earlier guilty pleas of Dr. Shardchandra Patel, age 72, to conspiracy, and Lillian Meghnot, age 86, to conspiracy, healthcare fraud, and money laundering. The criminal activity of Dr. Anthony Conrardy, Dr. William McCutchen, III, Dr. Sharadchandra Patel, and Lillian Meghnot stemmed from the operation of the Meghnot Comprehensive Center for Hope, a purported medical clinic formerly located on the Ann Arbor-Ypsilanti border. Federal agents executed a search warrant and arrests at the Meghnot Clinic in March of 2015. The Meghnot Clinic was owned and operated by Lillian Meghnot, who hired staff and others to give the Meghnot Clinic the false appearance of a legitimate medical center, when in reality the Meghnot Clinic was a pill mill supplying narcotics to drug-seeking customers.
The evidence presented at trial demonstrated that Dr. Anthony Conrardy and Dr. William McCutchen, III wrote Schedule II narcotic prescriptions to individuals outside the course of professional medical practice and for no legitimate medical purpose in exchange for compensation. The Meghnot Center charged its purported patients $250.00 in cash for a thirty-day supply of narcotics.
The guilty pleas of Lillian Meghnot and Dr. Sharadchandra Patel acknowledged that from approximately September of 2011 to March of 2015, the Meghnot Clinic ostensibly operated as a pain management center that, in reality, wrote medically unnecessary prescriptions for Oxycodone, Dilaudid, Vicodin, and other narcotics and benzodiazepines to drug-seeking individuals purporting to be patients. The Meghont Clinic’s unlawful practices generated roughly $4.5 million dollars in revenue. And the Clinic’s physicians prescribed over 1.5 million oxycodone pills, among other drugs.
Each of the counts on which Dr. Conrardy and Dr. McCutchen were convicted carry a penalty of up to 20 years in prison and a fine of up to $1,000,000.
The jury trial and convictions followed a multi-year investigation by the United States Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the United States Department of Health and Human Services Office of the Inspector General (HHS-OIG), and the United States Internal Revenue Service Office of Criminal Investigations (IRS-CI). Assistant United States Attorneys Charles J. Kalil II and Patrick J. Hurford prosecuted the case.
Two Detroit Men Plead Guilty to Robbing Springfield Jewelry StoreRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that two Detroit, Mich., men have pleaded guilty in federal court to robbing a Springfield, Mo., jewelry store.
Mark Anthone Pitts, 32, of Detroit, pleaded guilty today before U.S. Magistrate Judge David P. Rush to the charge contained in a Dec. 6, 2016, federal indictment. Co-defendant Justin B. Anderson, 32, of Detroit, pleaded guilty to the same charge on March 9, 2017.
Pitts and Anderson each admitted to robbing Maxon’s Diamond Merchants, 2622 S. Glenstone Ave., Springfield, on Sept. 1, 2016.
According to Pitts’s plea agreement, an unknown African-American male was buzzed through the secured front door of the jewelry store. When the male entered the store, he refused to close the front door. Employees approached the male, telling him to close the door. When the individual refused to shut the door, the employees attempted to push him out of the store. The male then physically shoved an employee as he kept the front door open.
Pitts and Anderson then entered the store. They pulled out small sledgehammers, causing employees to retreat from the front of the store out of fear of being harmed. Pitts and Anderson used the sledgehammers to break the glass counters and display cases that contained Rolex watches. Pitts and Anderson then grabbed several Rolex watches and fled from the store. Officers later determined that 11 Rolex watches, valued at a total of $118,000, were stolen in the robbery.
Cell phone video from a store employee showed the getaway car – a 2000 Dodge Stratus that had been stolen from a local Target department store earlier that day – waiting for the three men. Pitts and Anderson, however, failed to escape in the getaway car, which left the scene without them. Pitts was arrested after store employees who followed him took police officers to his location.
Pitts told officers that he did not specifically threaten an employee of Maxon’s Diamond Merchants, but if they had actively resisted the robbery, he would have used his sledgehammer to physically assault the employees.
Under federal statutes, Pitts and Anderson are each subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Patrick Carney and Nhan D. Nguyen. It was investigated by the FBI and the Springfield, Mo., Police Department.
Texas Business Owner Pleads Guilty to Not Paying Approximately $18 Million in Employment TaxesRead the Press Release
Kept Withholdings and Social Security and Medicare Contributions – Spent Funds on Personal Travel and Ranch
A Houston, Texas business owner pleaded guilty today to one count of failing to pay over employment taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Abe Martinez for the Southern District of Texas.
According to documents filed with the court, Richard Floyd Tatum Jr., 57, owned Associated Marine & Industrial Staffing Inc. (AMI), an industrial staffing company that provided temporary labor to businesses in Texas and other states. Tatum employed approximately 1,000 people to include internal employees, who worked for AMI, and external employees, who AMI assigned to work on-site at client locations. Tatum was responsible for collecting, accounting for and paying over to the Internal Revenue Service (IRS) the payroll taxes withheld from AMI’s employees’ wages. Tatum exercised significant control over AMI’s finances to include entering into contracts, signing checks, to include payroll, and deciding which creditors to pay. Tatum also signed and filed AMI’s employment tax returns.
From March 2008 through December 2009, Tatum filed false and untimely employment tax returns for AMI that did not report AMI’s external employees. In May 2013, Tatum filed untimely returns for the quarters ending in March 2010 through December 2012, reporting AMI’s external employees but failing to make any payments. Tatum withheld approximately $12 million in payroll taxes from March 2008 through December 2012, which he did not pay over to the IRS. Tatum also failed to pay $6 million of AMI’s contributing share of social security and Medicare taxes during the same quarters. Instead, he used the money for his personal benefit, including making payments on his ranch and traveling to Las Vegas, Hawaii and France. Tatum admitted that he caused a tax loss of more than $18 million.
“Rather than pay over to the IRS his employees’ withholdings and social security and Medicare contributions, Richard Tatum diverted the funds to his personal benefit,” said Acting Deputy Assistant Attorney General Goldberg. “Employment taxes are not a source of funding for ranches or premium travel -- those who keep these funds and use them as a personal piggybank will be prosecuted and face incarceration.”
“Failure to pay over employment taxes taken from employee wages is a serious criminal offense,” said Chief Richard Weber of IRS Criminal Investigation. “It not only harms the employees’ future social security and Medicare benefits, it’s stealing from honest taxpayers and the U.S. Treasury. IRS Criminal Investigation will continue to track down those who collect these taxes and use the funds for personal gain.”
Sentencing is scheduled for June 1. Tatum faces a statutory maximum sentence of five years in prison, a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Martinez commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Grace Albinson and Mara Strier of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Stilwell Woman Sentenced to 46 Months for Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that AMBER RENE CLAPHAN, age 34, of Stilwell, Oklahoma, was sentenced to 46 months imprisonment and 5 years of supervised release for DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(A).
The Superseding Indictment alleged that from in or about July 2015, the exact being unknown, until January 27, 2016, the Defendant, conspired with other members of a drug conspiracy to distribute 500 grams or more of a methamphetamine mixture, a Schedule II controlled substance.
The charge arose from a joint investigation entitled “Home of the Brave”, coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney. The agencies involved in the investigation were the Oklahoma Bureau of Narcotics, the McAlester Police Department, the Tahlequah Police Department, the Muskogee Police Department, the Cherokee County Sheriff’s Department, Districts 13, 18, 25 and 27 District Attorney’s Drug Task Forces and Violent Crime Task Forces, the Muskogee County District Attorney’s Office, the Seminole Nation Lighthorse Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the McAlester, and Tulsa Offices of the Drug Enforcement Administration.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Shannon Henson represented the United States.
Steelton Man Indicted on Drug and Firearms ChargesRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Johnnie Spriggs, age 29, of Steelton, Pennsylvania, was indicted by a federal grand jury for conspiracy to possess and possession with the intent to distribute heroin, possession of a firearm in furtherance of drug trafficking, and possession of a firearm by a felon.
According to United States Attorney Bruce D. Brandler, the indictment alleges that on November 12, 2015, a Rossie Arms, .357 caliber Magnum revolver handgun and over 100 grams of heroin were found in Spriggs’ Steelton residence. One hundred grams of heroin is the equivalent of approximately 4,000 individual doses of heroin.
The case was investigated by the Steelton Borough Police Department and the U.S. Drug Enforcement Administration. Assistant U.S. Attorney Scott Ford is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case was also brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is up to life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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St. Francis Woman Charged with Possession with Intent to Distribute a Controlled SubstanceRead the Press Release
United States Attorney Randolph J. Seiler announced that a St. Francis, South Dakota, woman has been indicted by a federal grand jury for Possession with Intent to Distribute a Controlled Substance.
Mary Left Hand Bull, age 26, was indicted on November 9, 2016. She appeared before U.S. Magistrate Judge Mark A. Moreno on March 20, 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, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on March 7, 2016, Left Hand Bull and her co-defendant, Lloyd One Star, knowingly and intentionally possessed with intent to distribute methamphetamine, a Schedule II controlled substance.
The charge is merely an accusation and Left Hand Bull is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Left Hand Bull was released on bond pending trial, which has been set for April 25, 2017.
South Florida Resident Sentenced in Connection with Lottery Fraud Scheme Based in JamaicaRead the Press Release
A Broward County, Florida woman was sentenced in Miami, Florida for her role in connection with the operation of a Jamaican-based fraudulent lottery scheme, the Department of Justice announced today.
Cassandra Althea Palmer, 33, was sentenced by U.S. District Judge Marcia G. Cooke to serve 24 months in prison and three years of supervised release. The court scheduled a hearing on May 3, 2017 to determine the amount of restitution that Palmer will pay to the victim.
Palmer pleaded guilty on Dec. 7, 2016, to one count of conspiracy to commit mail and wire fraud. As part of her guilty plea, Palmer acknowledged that from February through April 2014, she was a member of a conspiracy that defrauded a Maryland resident.
“Lottery scammers tied to Jamaica continue to prey on victims in the United States, promising large winnings in a lottery to trick victims into sending money to a member of the scheme, with no return to the victim,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice is committed to prosecuting those who participate in international lottery schemes, which frequently target elderly or vulnerable Americans.”
Palmer was charged with the conspiracy to commit mail and wire fraud on Oct. 26, 2016. As part of her guilty plea, Palmer agreed that, had the case gone to trial, the United States would have proved the following facts beyond a reasonable doubt: In February 2014, a woman from Worcester County, Maryland, was contacted by an individual in Jamaica and told that she had won a multi-million dollar lottery prize, and that in order to collect her lottery prize, she first had to pay taxes and fees. The victim did not win a lottery prize and would not collect any winnings. Palmer knew about the fraud scheme and agreed with her co-conspirator in Jamaica to participate in the scheme. Palmer participated in the fraudulent scheme in a number of ways. Among other things, she worked with her co-conspirator in Jamaica, to recruit a friend in Maryland to receive $7,500 of the victim’s money. She and her friend kept a portion of the money, and Palmer wire transferred the rest to her Jamaican co-conspirator.
The fraudulent scheme ended when law enforcement officials learned of the fraud. Officials set up a sting, in which an undercover police officer posed as the victim and met Palmer’s friend at a fast food restaurant parking lot in Maryland. The purpose of the meeting was for the victim to hand over $32,500 in cash to Palmer’s friend in order for the victim to claim her purported lottery winnings. Law enforcement arrested Palmer’s friend on the spot, after she received $32,500 in cash from the officer.
“The Postal Inspection Service seeks to end fraud on American citizens, many of whom are vulnerable or older, by those engaged in international lottery schemes,” said Inspector in Charge Daniel B. Brubaker of the U.S. Postal Inspection Service’s Philadelphia, Pennsylvania Division. “Today’s sentencing demonstrates there are no safe havens for those who participate in these types of fraud schemes.”
This prosecution is part of the Department of Justice’s effort to work with federal and local law enforcement to combat fraudulent lottery schemes in Jamaica that prey on U.S. citizens.
Acting Assistant Attorney General Readler commended the investigative efforts of the U.S. Postal Inspection Service, the U.S. Department of Homeland Security, and the Maryland State Police. The case was prosecuted by Trial Attorney David A. Frank of the Civil Division’s Consumer Protection Branch.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Florida, visit its website at https://www.justice.gov/usao-sdfl.
South Florida Man Pleads Guilty to Mail Fraud in Connection with Jamaican-Based Fraudulent Lottery SchemeRead the Press Release
A South Florida resident pleaded guilty for his role in a Jamaican-based fraudulent lottery scheme, the Department of Justice announced today.
Claude Shaw, 49, pleaded guilty in the Southern District of Florida to one count of mail fraud. Shaw was charged in connection with a fraudulent lottery scheme based in Jamaica that induced victims in the United States to send Shaw over $100,000 to cover purported fees for lottery winnings that victims had not won and never received. Sentencing is scheduled on May 31, 2017.
“This case demonstrates the Justice Department’s commitment to combating international lottery fraud schemes based in Jamaica targeting potentially vulnerable individuals,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Financial fraud schemes directed at unsuspecting victims will be prosecuted to the fullest extent of the law.”
This prosecution is part of the Department of Justice’s effort working with federal and local law enforcement to combat fraudulent lottery schemes preying on American citizens.
Shaw pleaded guilty to one count of mail fraud. As part of his guilty plea, Shaw agreed that if this case proceeded to trial, the United States would have proved beyond a reasonable doubt that, from in or around September 2013, through in or around August 20l5, Shaw participated in a scheme to defraud victims in the United States and unlawfully enrich himself. Victims throughout the United States received telephone calls in which they were falsely informed that they had won over a million dollars in a lottery and needed to pay money in advance to claim their winnings. The victims were instructed on how, and to whom, to send their money.
As part of the scheme, victims were instructed to send their money to Shaw. Victims sent over $100,000 to Shaw, who then forwarded a portion of the money to Jamaica. Victims never received any lottery winnings.
“The Postal Inspection Service is committed to investigating fraudulent lottery schemes based in Jamaica directed at ripping off individuals in the United States,” said Inspector in Charge Antonio Gomez of the U.S. Postal Inspection Service’s Miami, Florida Division. “Lottery fraud scams tied to Jamaica are targeting victims in the United States, and we will not allow them to use the U.S. mail to commit their crime.”
Acting Assistant Attorney General Readler commended the investigative efforts of the U.S. Postal Inspection Service. The case is being prosecuted by Trial Attorney Arturo DeCastro of the Civil Division’s Consumer Protection Branch.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Florida, visit its website at https://www.justice.gov/usao-sdfl.
Social Security Administrative Law Judge Sentenced to Prison for Accepting Sexual Gratuity, Stealing SSA Records & ObstructionRead the Press Release
BIRMINGHAM – A federal judge today sentenced a former administrative law judge for the Social Security Administration to one year and a day in prison for crimes including engaging in a sex act with a Social Security beneficiary whose case he presided over, announced Acting U.S. Attorney Robert O. Posey, SSA-Office of Inspector General Special Agent in Charge Margaret Jackson and FBI Special Agent in Charge Roger Stanton.
U.S. District Court Judge Virginia Emerson Hopkins sentenced PAUL STRIBLING CONGER JR., 74, of Akron, Ala., for obstructing justice, accepting a gratuity for an official act of a public official and stealing government property. Conger pleaded guilty to the charges in October. The judge also ordered Conger to pay a $4,000 fine. He must report to prison July 24.
Conger served as an administrative law judge for the Social Security Administration from May 1999 to April 2014, presiding over hearings to determine whether someone who applied for disability or other SSA benefits qualified to receive them. Conger’s judicial chambers were in the federal courthouse in Tuscaloosa.
According to court records:
In July 2013, Conger presided over the claims hearing of a woman identified in court documents as T.M., who subsequently was approved for SSI benefits, including future monthly payments and retroactive benefits. In November 2013, T.M. discussed Conger with a mutual acquaintance of theirs and was given information that led her to approach the judge about receiving her retroactive SSI benefits in a lump sum of about $10,000.
On Nov. 19, 2013, T.M. met Conger in his chambers at the Tuscaloosa federal courthouse, seeking the lump sum benefits payment. Conger illegally received a gratuity from T.M. when the two engaged in sexual activity in his chambers. Over ensuing weeks, they remained in contact through phone calls and text messages.
Conger stole government property when he took T.M.’s records from the SSA database to learn more about her. The information included medical records and identifiers such as her Social Security number.
Conger obstructed justice by attempting to obtain T.M.’s cell phone and destroy it after learning that he was the subject of a workplace complaint and a SSA Office of Inspector General investigation. According to the court records, Conger paid someone, “Individual B,” to obtain the phone and provided the individual with material from T.M.’s SSA file to help that person find her.
Conger falsely told federal agents that he never had any physical or sexual contact with a claimant, including T.M., even after he was notified that he was the target of a federal grand jury investigation.
SSA-OIG and FBI investigated the case, which Assistant U.S. Attorney Tamarra Matthews Johnson prosecuted.
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Slidell Man Sentenced for Defrauding InvestorsRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that JOHN GIBSON, age 32, of Slidell, was sentenced today after previously pleading guilty to a one-count Bill of Information charging him with mail fraud.
U.S. District Judge Sarah S. Vance sentenced GIBSON to 18 months incarceration, and ordered restitution in the amount of $213,597.35. Upon release from prison, GIBSON will have to serve three years of supervised release.
According to court documents, GIBSON admitted that from 2008 to 2014, he solicited funds from individuals by falsely representing that he would use their funds to establish investment accounts. GIBSON admitted that he defrauded his investors by diverting their investment funds for his own personal use and benefit.
Acting U.S. Attorney Evans praised the work of the United States Postal Inspection Service in investigating this matter. Assistant United States Attorney Sean Toomey was in charge of the prosecution.
Six Aliens Indicted on Immigration, Firearm, and Fraud ViolationsRead the Press Release
RALEIGH – John Stuart Bruce, United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging RAYMUNDO BARRIOS-JIMENEZ, age 35, of Mexico, JAIME CARBAJAL-SANCHEZ, age 36, of Mexico, JESUS CERVANTEZ-RUIZ, age 47, of Guatemala, OMAR VASQUEZ-ROMAN, age 37, of Mexico with Illegal Reentry of a Deported Alien. Further, a federal grand jury in Raleigh has returned indictments charging TAMER AHMED QAID SAID RABEH, age 36, of Egypt, with Illegal and Unlawful Alien in Possession of a Firearm, and MAXIMO ORLANDO RODRIGUEZ, age 53, of the Dominican Republic, with Passport Fraud, False Representation of a Social Security Account Number, and Aggravated Identity Theft.
If convicted of Illegal Reentry of a Deported Alien, BARRIOS-JIMENEZ, and CARBAJAL-SANCHEZ would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
VASQUEZ-ROMAN is alleged to have been previously deported subsequent to two felony convictions (both for illegal reentry of a deported alien). Therefore, if convicted, he faces a maximum imprisonment term of ten years.
CERVANTEZ-RUIZ is alleged to have been previously deported subsequent to an aggravated felony conviction (assault with a deadly weapon inflicting serious injury). Therefore, if convicted, he faces a maximum imprisonment term of twenty years.
If convicted of Illegal and Unlawful Alien in Possession of a Firearm, RABEH faces a maximum imprisonment term of ten years. Additionally, if convicted of Passport Fraud, False Representation of a Social Security Account Number and Aggravated Identity Theft, RODRIGUEZ faces a mandatory term of imprisonment of two years consecutive to a ten-year term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by the Department of Homeland Security, Department of State, North Carolina Division of Motor Vehicles, and Pender County Sheriff’s Office.
Sioux Falls Man Sentenced for CyberstalkingRead the Press Release
United States Attorney Randolph J. Seiler announced that a Sioux Falls, South Dakota, man convicted of Cyberstalking was sentenced on March 22, 2017, by U.S. District Judge Karen E. Schreier.
Eugene Ogden, age 55, was sentenced to 30 months in custody, and three years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Ogden was indicted for Cyberstalking by a federal grand jury on August 9, 2016. He pled guilty on November 21, 2016.
In July 2016, the victim in this case contacted the Sioux Falls Police Department reporting that strange men were coming to her home, indicating they were responding to a Craigslist ad for sex. Further investigation revealed that Ogden posted eight ads on the personal section of Craigslist that invited men to the victim’s home for sex. Each of the ads provided the victim’s address, along with a photo of the victim.
“This is Cyberstalking at its ugliest,” said U.S. Attorney Randy Seiler. “This type of dangerous, vindictive behavior is hard to comprehend, but unfortunately this type of malicious stunt is easy to execute in the cyber world. The sentence handed down serves as a reminder that these cases will be prosecuted to the full extent of the law.”
This case was investigated by Sioux Falls Police Department and the Department of Homeland Security Investigations. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Ogden was immediately turned over to the custody of the U.S. Marshals Service.
Schuele Boys Gang Associate Sentenced on Drug ChargeRead 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 Jerome Grant, 36, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute and to distribute cocaine, was sentenced to 188 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that between June of 2013 and July 23, 2014, Grant conspired with other Schuele Boys Gang members to distribute cocaine in the City of Buffalo. The defendant purchased cocaine from other Schuele Boys Gang members and broke it down into smaller packages for redistribution to customers.
The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine, and marijuana.
Grant is one of 28 Schuele Boys Gang members, associates, and other individuals arrested in this case. To date, 18 of the 28 charged have been convicted.
Today’s sentencing is the culmination of an investigation on the part of the FBI's Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen.
Roswell Man Sentenced to 108 Months for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Cipriano Anaya, 35, of Roswell, N.M., was sentenced today in federal court in Las Cruces, N.M., to 108 months in prison followed by three years of supervised release for his conviction on methamphetamine trafficking charges.
Anaya is one of 41 individuals charged in Sept. 2015, with drug trafficking offenses as a result of an eight-month multi-agency investigation by the FBI, the DEA, Chaves County Metro Narcotics Task Force, Roswell Police Department, Chaves County Sheriff’s Office and New Mexico State Police. Twenty-one of the defendants were charged with federal offenses and the remaining 20 with state crimes.
The investigation, which was designated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) program, initially targeted a drug trafficking organization (DTO) led by Joseph Ray Mendiola, 35, of Roswell, that allegedly distributed methamphetamine in Chaves County. It later expanded to include drug traffickers who allegedly supplied methamphetamine to the Mendiola DTO and other drug traffickers operating in Chaves County. The OCDETF program combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Anaya and 15 other federal defendants were charged in a 24-count indictment filed on Sept. 22, 2015. Count 1 of the Indictment charged 15 of the 16 defendants with conspiracy to distribute methamphetamine between June 2015 and July 2015. Count 2 charged three defendants with conspiracy to distribute cocaine in July 2015. Counts 3, 4, 5, 6 and 7 charged certain defendants with possession of methamphetamine with intent to distribute in July 2015. Counts 8 through 24 charged certain defendants with using communications devices (telephones) to facilitate drug trafficking crimes. All crimes charged in the federal indictment occurred in Chaves County.
During the course of the investigation, law enforcement officers executed 14 federal search warrants for 10 residences in Roswell, one residence in Dexter, N.M., and three vehicles. During the execution of those search warrants, the officers seized approximately 5600 grams of methamphetamine, $35,960.00 in cash, and multiple firearms including two assault rifles.
On Aug. 26, 2016, Anaya pled guilty to participating in a methamphetamine trafficking conspiracy and to using a communication device to facilitate a drug trafficking crime. In entering the guilty plea, Anaya admitted conspiring with his co-defendants to distribute methamphetamine in Chaves County from June 2015 through July 31, 2015. Anaya further admitted that on July 26, 2015, he used a telephone to further the drug trafficking conspiracy.
To date, 12 of Anaya’s co-defendants have entered guilty pleas and are awaiting sentencing. Three co-defendants have yet to be arrested and are considered fugitives. Charges in indictments and criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
The federal cases were investigated by the Roswell office of FBI’s Albuquerque Division, the Las Cruces office of DEA, Roswell Police Department, Chaves County Sheriff’s Office, the Chaves County Metro Narcotics Task Force, the New Mexico State Police and the U.S. Marshals Service. Assistant U.S. Attorneys Randy M. Castellano and John Balla are prosecuting the federal cases.
The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Ringgold man sentenced for possessing 11 firearmsRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Ringgold man was sentenced to 63 months in prison for possessing 11 firearms and ammunition after being convicted of a felony.
Brady D. Alsup, 44, of Ringgold, La., was sentenced by U.S. District Judge Elizabeth E. Foote on one count of possession of a firearm by a convicted felon. He was also sentenced to three years of supervised release and must pay a $10,000 fine. According to the October 11, 2016 guilty plea, after receiving information that firearms were present on Alsup’s property, law enforcement agents conducted a search of his residence on October 14, 2015 and found six rifles, four shotguns, a revolver and assorted ammunition. The defendant was previously convicted in 2007 of a felony and is not allowed to possess a firearm.
This investigation and prosecution is part of Project Safe Neighborhoods, a Department of Justice initiative to promote firearm safety and to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm.
The ATF conducted the investigation. Assistant U.S. Attorney James G. Cowles Jr. prosecuted the case.
Restaurant Owner Pleads Guilty to Illegal FirearmsRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that an Auxvasse, Mo., man pleaded guilty in federal court today to illegally possessing 21 firearms and three firearm silencers.
Billy Bush Owen, 54, of Auxvasse, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to the charge contained in a Feb. 10, 2016, federal indictment.
Owen is the owner of Panhead Billy’s BBQ in Kingdom City, Mo. By pleading guilty today, Owen admitted that he was in possession of 21 firearms on Dec. 9, 2015, including handguns, rifles and shotguns, as well as three silencers. Under federal law, it is illegal for anyone who has been convicted of a felony to possess any firearms (including silencers) or ammunition. Owen has prior felony convictions for transporting a controlled substance and possession of a dangerous weapon by an addict.
Owen was being investigated by MUSTANG (the Mid-Missouri Unified Strike Team and Narcotics Group) when officers executed a search warrant at this residence on Dec. 9, 2015. Officers found 21 firearms, three silencers and 9,337 rounds of ammunition in the residence. Three of the firearms and 3,610 rounds of ammunition were in the bedroom, and the remaining firearms and the suppressors were in a safe in the garage. Officers also seized $35,109, digital scales, a drug ledger and marijuana from the residence.
Under federal statutes, Owen is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Callaway County, Mo., Sheriff’s Department and MUSTANG (the Mid-Missouri Unified Strike Team And Narcotics Group).
Rapid City Man Indicted for Possession with Intent to Distribute a Controlled SubstanceRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Possession with Intent to Distribute a Controlled Substance.
Jonah Burning Breast, a/k/a Jonah Jarrett Burning Breast, a/k/a Jonah Jared Burning Breast, a/k/a Jonah Jared Big Crow, age 23, was indicted on February 15, 2017. He appeared before U.S. Magistrate Judge Mark Moreno on March 17, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years in custody and/or a $1,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about the 2nd day of September 2016, in Todd County, South Dakota, Burning Breast knowingly and intentionally distributed a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charges are merely accusations and Burning Breast is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Burning Breast was remanded to the custody of the U.S. Marshals Service pending trial, which is set for May 2, 2017.
Prior Felon from Albuquerque Pleads Guilty to Unlawfully Possessing Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Jesus Rodriguez, 32, of Albuquerque, N.M., pled guilty today in federal court to being a felon in possession of a firearm and ammunition. The guilty plea, which was entered without the benefit of a plea agreement, was announced by Acting U.S. Attorney James D. Tierney, Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Bernalillo County Sheriff Manuel Gonzales, III.
Rodriguez was arrested in April 2016, on a criminal complaint charging him with unlawfully possessing a firearm and ammunition in Bernalillo County, N.M., on Jan. 29, 2016. Rodriguez subsequently was indicted on the same charge on May 10, 2016. According to the indictment, Rodriguez previously had been convicted of several felony offenses including aggravated assault against a household member with a deadly weapon, auto burglary, aggravated battery against a household member causing great bodily harm, child abuse, conspiracy to commit auto burglary, and battery on a peace officer.
During today’s proceedings, Rodriguez pled guilty to the indictment charging him with being a felon in possession of a firearm and ammunition. At sentencing, Rodriguez faces a maximum penalty of ten years in federal prison. If the Court determines that Rodriguez is an armed career criminal, Rodriguez faces an enhanced sentence of a statutory mandatory minimum penalty of 15 years in prison and a maximum of life imprisonment.
This case was investigated by the Albuquerque office of ATF and the Bernalillo County Sheriff’s Office. Assistant U.S. Attorney Presiliano Torrez is prosecuting this case as part 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 work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Prince George’s County Heroin Dealer Sentenced to 14 Years in Federal Prison for Drug Distribution ConspiracyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Olden Minnick, a/k/a “O,” age 55, of Clinton, Maryland, on March 21, 2017, to 14 years in prison, followed by five years of supervised release, on charges connected to a conspiracy to distribute heroin. Judge Chuang also ordered Minnick to forfeit $571,640, including high-end watches and jewelry.
The sentence 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; Assistant Director in Charge Andrew W. Vale of the Federal Bureau of Investigation - Washington Field Office; 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.
According to the evidence presented at Minnick’s four-week trial, from June 2012 to December 3, 2014, Minnick conspired with Terrance Stanback, Sean Wilson, Christian Byrd, and others to distribute heroin. From at least June 1, 2014 to December 3, 2014, Minnick used residences in Clinton, Maryland and Capitol Heights, Maryland, for the distribution and storage of heroin and other controlled substances. Over the course of the conspiracy Minnick used cellular telephones to arrange for the distribution of heroin and was intercepted on several occasions in 2014 arranging to provide distribution quantities of heroin to Stanback and others.
Terrance Stanback, age 52, of Clinton, Maryland, pleaded guilty to his role in the conspiracy and was sentenced to 30 months in prison, and ordered to forfeit $53,000 recovered during a search of his residence. Sean Wilson, age 46, of Randallstown, Maryland previously pleaded guilty to conspiracy to distribute and possess with the intent to distribute heroin and was sentenced to 11 years in federal prison. Christian Byrd, age 45, of Laurel, Maryland, pleaded guilty to possession with intent to distribute heroin and was sentenced to 15 years in federal prison. Judge Chuang also ordered Byrd to forfeit $440,000, as the proceeds of his drug distribution.
United States Attorney Rod J. Rosenstein commended the DEA, FBI, and the Prince Georges County, Baltimore County, and Baltimore City Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Thomas P. Windom, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Previously Deported Alien Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Isidro Aguilar-Mendoza, age 43, of Mexico, was indicted by a federal grand jury with illegal re-entry into the United States by a previously deported alien.
According to United States Attorney Bruce D. Brandler, Aguilar-Mendoza was previously deported from the United States to Mexico in March 2004, December 2009, and May 2009. He is alleged to have illegally re-entered the United States sometime after December 2009, and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers. In 2009, he was convicted in the Southern District of Texas of illegal re-entry, an offense which subjects him to enhanced penalties in the current case.
This case was investigated by the U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Special Assistant United States Attorney Brian G. McDonnell is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Because of Aguilar-Mendoza’s previous conviction, under federal law he faces a maximum penalty of 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Parmelee Man Indicted on Assault ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that a Parmelee, South Dakota, man has been indicted by a federal grand jury for Assault With a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Dace Lunderman, age 32, was indicted on February 15, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 20, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction for each charge is up to 10 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 January 6, 2017, Lunderman assaulted two individuals with a knife with intent to do bodily harm, and that one of the said assaults resulted in serious bodily injury.
The charge is merely an accusation and Lunderman is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Lunderman was released on bond pending trial. A trial date has not been set.
Owner of Solid Designs Sentenced for Possession of Child PornographyRead the Press Release
Contact Person: Jamie L. Schoen (864) 282-2100
Greenville, South Carolina---- United States Attorney Beth Drake stated today that Kevin Ray Stephenson, age 44, of Greenville, South Carolina was sentenced in federal court in Greenville, South Carolina, for Possession of Child Pornography, in violation of 18 U.S.C. § 2252A. Senior United States District Judge Henry M. Herlong, Jr., of Greenville sentenced Stephenson to 18 months imprisonment, $5,100.00 special assessment, and 5 years supervised release. Stephenson will be required to register as a sex offender.
Evidence presented at the change of plea hearing established that Stephenson used a child pornography website to access child pornography. The FBI conducted a search of Stephenson’s business, Solid Designs, and located numerous images of child pornography on Stephenson’s computer.
The case was investigated by agents of the FBI, ICE-Homeland Security Investigations, and the Greenville County Sheriff’s Office. Assistant United States Attorney Jamie Lea Schoen of the Greenville office prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
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Owner of New England Compounding Center Convicted of Racketeering Leading to Nationwide Fungal Meningitis OutbreakRead the Press Release
Outbreak was the largest public health crisis ever caused by a pharmaceutical product
Barry Cadden, the owner and head pharmacist of New England Compounding Center (NECC), was convicted today by a federal jury of racketeering and mail fraud in connection with the 2012 nationwide fungal meningitis outbreak, the Justice Department announced.
After a nine-week trial, the jury convicted Cadden, 50, of Wrentham, Massachusetts, of racketeering, racketeering conspiracy, mail fraud and introduction of misbranded drugs into interstate commerce with the intent to defraud and mislead. U.S. District Court Judge Richard G. Stearns scheduled sentencing for June 21, 2017.
In 2012, 753 patients in 20 states were diagnosed with a fungal infection after receiving injections of preservative-free methylprednisolone acetate (MPA) manufactured by NECC. Of those 753 patients, the U.S. Centers for Disease Control and Prevention (CDC) reported that 64 patients in nine states died. The outbreak was the largest public health crisis ever caused by a pharmaceutical product.
Specifically, Cadden directed and authorized the shipping of contaminated MPA to NECC customers nationwide. In addition, he authorized the shipping of drugs before test results confirming their sterility were returned, never notified customers of nonsterile results, and compounded drugs with expired ingredients. Furthermore, certain batches of drugs were manufactured, in part, by an unlicensed pharmacy technician at NECC. Cadden also repeatedly took steps to shield NECC’s operations from regulatory oversight by the FDA by claiming to be a pharmacy dispensing drugs pursuant to valid, patient-specific prescriptions. In fact, NECC routinely dispensed drugs in bulk without valid prescriptions. NECC even used fictional and celebrity names on fake prescriptions to dispense drugs such as “Michael Jackson,” “Freddie Mae” and “Diana Ross.”
Cadden faces a statutory maximum sentence of up to 20 years in prison on each of the mail fraud and racketeering counts. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney William D. Weinreb; Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division; Special Agent in Charge Jeffrey Ebersole of the U.S. Food and Drug Administration, Office of Criminal Investigations’ New York Field Office; Special Agent in Charge Harold H. Shaw of the FBI, Boston Field Division; Special Agent in Charge Leigh-Alistair Barzey of the Defense Criminal Investigative Service, U.S. Department of Defense, Office of Inspector General, Northeast Field Office; Special Agent in Charge Donna Neves of the Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; and Inspector in Charge Shelly Binkowski of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorneys George P. Varghese and Amanda P.M. Strachan of Weinreb’s Health Care Fraud Unit and Trial Attorney John W.M. Claud of the Justice Department’s Consumer Protection Branch are prosecuting the case.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Massachusetts, visit its website at https://www.justice.gov/usao-ma.
Owner of New England Compounding Center Convicted of Racketeering Leading to Nationwide Fungal Meningitis OutbreakRead the Press Release
BOSTON – Barry Cadden, the owner and head pharmacist of New England Compounding Center (NECC), was convicted today by a federal jury of racketeering and mail fraud in connection with the 2012 nationwide fungal meningitis outbreak.
After a nine-week trial, the jury convicted Cadden, 50, of Wrentham, Mass., of racketeering, racketeering conspiracy, mail fraud and introduction of misbranded drugs into interstate commerce with the intent to defraud and mislead. U.S. District Court Judge Richard G. Stearns scheduled sentencing for June 21, 2017.
In 2012, 753 patients in 20 states were diagnosed with a fungal infection after receiving injections of preservative-free methylprednisolone acetate (MPA) manufactured by NECC. Of those 753 patients, the U.S. Centers for Disease Control and Prevention (CDC) reported that 64 patients in nine states died. The outbreak was the largest public health crisis ever caused by a pharmaceutical product.
Specifically, Cadden directed and authorized the shipping of contaminated MPA to NECC customers nationwide. In addition, he authorized the shipping of drugs before test results confirming their sterility were returned, never notified customers of nonsterile results, and compounded drugs with expired ingredients. Furthermore, certain batches of drugs were manufactured, in part, by an unlicensed pharmacy technician at NECC. Cadden also repeatedly took steps to shield NECC’s operations from regulatory oversight by the FDA by claiming to be a pharmacy dispensing drugs pursuant to valid, patient-specific prescriptions. In fact, NECC routinely dispensed drugs in bulk without valid prescriptions. NECC even used fictional and celebrity names on fake prescriptions to dispense drugs such as “Michael Jackson,” “Freddie Mae” and “Diana Ross.”
Cadden faces a maximum sentence of 20 years in prison on each of the mail fraud and racketeering counts. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney William D. Weinreb; Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division; Jeffrey Ebersole, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations’ New York Field Office; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Leigh-Alistair Barzey, Special Agent in Charge of the Defense Criminal Investigative Service, U.S. Department of Defense, Office of Inspector General, Northeast Field Office; Donna Neves, Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorneys George P. Varghese and Amanda P.M. Strachan of Weinreb’s Health Care Fraud Unit and Trial Attorney John W.M. Claud of the Justice Department’s Consumer Protection Branch are prosecuting the case.
Osage Beach Woman Indicted for Stolen Mail, Bank Fraud, Identity TheftRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that an Osage Beach, Mo., woman was indicted by a federal grand jury today for a scheme to open fraudulent bank accounts in order to cash checks stolen from the mail.
Chrystal Lynn Bernstein, 27, of Osage Beach, was charged in a 21-count indictment returned by a federal grand jury in Jefferson City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Bernstein on Feb. 17, 2017.
The federal indictment charges Bernstein with eight counts of possessing stolen mail on separate occasions from Dec. 15, 2016, to March 14, 2017. Bernstein allegedly possessed checks that were stolen from the victims’ mailboxes.
Bernstein is also charged with 10 counts of bank fraud related to her scheme to use stolen identity information to open bank accounts in Boone and Camden Counties in order to cash or deposit the stolen checks. Bernstein allegedly obtained stolen mail, including checks, and altered the payee on the checks in order to cash or deposit them into the fraudulent accounts.
The federal indictment also charges Bernstein with three counts of aggravated identity theft related to her use of stolen identities to open the bank accounts.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the U.S. Postal Inspection Service, the Columbia, Mo., Police Department, Booneville, Mo., Police Department, the Camdenton, Mo., Police Department, the Lake Ozark, Mo., Police Department and the Osage Beach, Mo., Police Department.
Operation Results in Federal Indictment Against 18 Defendants in Heroin Drug Trafficking ConspiracyRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey Amundson announced today the unsealing of a 39-page federal indictment charging 18 defendants in Operation Dirty Bird, an extensive federal, state, and local investigation aimed at dismantling a large scale heroin trafficking network based in Ascension Parish, Louisiana, and Houston, Texas.
The indictment charges significant drug trafficking, racketeering, firearm, and conspiracy charges. To date, investigative efforts have resulted in the seizure of over one and a half kilograms of heroin, substantial amounts of methamphetamine, crack cocaine, and oxycodone, seven firearms, over $314,000 in drug proceeds, and three vehicles allegedly used in the drug trafficking venture: a 2013 Porsche 911, a Mercedes CLS550, and a GMC Hummer.
The charged defendants are listed below. They face significant terms of imprisonment, fines, and the forfeiture of proceeds from the illegal activity.
- Jason Muse, age 37, formerly of Prairieville, Louisiana, is charged with conspiracy; distribution of heroin; possession with intent to distribute 500 grams or more of heroin; felon in possession of a firearm; possession of a firearm in furtherance of a drug trafficking crime; unlawful use of communications facilities; and forfeiture.
- Santos Mosquera-Candelo, age 63, formerly of Columbia, is charged with conspiracy; unlawful use of communications facilities; and forfeiture.
- Alexis Alberto Vener, age 32, of Houston, Texas, is charged with conspiracy; unlawful use of communications facilities; and forfeiture.
- Aron Winter Mosquera-Castro, age 22, of Houston, Texas, is charged with conspiracy; unlawful travel in aid of a racketeering enterprise, unlawful use of communications facilities; and forfeiture.
- Fabio Zuniga-Caicedo, age 37, of Houston, Texas, is charged with conspiracy; unlawful travel in aid of a racketeering enterprise, unlawful use of communications facilities; and forfeiture.
- Marshall Ann Muse, age 31, formerly of Prairieville, Louisiana, is charged with conspiracy; unlawful use of communications facilities; and forfeiture.
- Darwin A. Elphage, age 38, of Gonzales, Louisiana, is charged with conspiracy; distribution of heroin; possession with intent to distribute heroin and cocaine base; felon in possession of a firearm; unlawful use of communications facilities; and forfeiture.
- Herman Jimmerson III, age 33, of Gonzales, Louisiana, is charged with conspiracy; unlawful use of communications facilities; and forfeiture.
- Kevin Boudreaux, age 47, of Baton Rouge, Louisiana, is charged with conspiracy; unlawful use of communications facilities; and forfeiture.
- Anthony Gerrod Miller, age 38, of Geismar, Louisiana, is charged with conspiracy; unlawful use of communications facilities; and forfeiture.
- Nicholas Sean Fobbs, age 28, of Gonzales, Louisiana, is charged with conspiracy; unlawful use of communications facilities; and forfeiture.
- Raymond Gerard Comeaux, Jr., age 26, of Donaldsonville, Louisiana, is charged with conspiracy; unlawful use of communications facilities; and forfeiture.
- Jablonski Hankton, age 35, of Gonzales, Louisiana, is charged with conspiracy; unlawful use of communications facilities; and forfeiture.
- Jermaine Christopher Pleasant, age 36, of Donaldsonville, Louisiana, is charged with conspiracy; unlawful use of communications facilities; and forfeiture.
- Michael L. Williams, age 45, of Geismar, Louisiana, is charged with conspiracy; unlawful use of communications facilities; and forfeiture.
- Larry Earl Miles, age 27, of Donaldsonville, Louisiana, is charged with conspiracy; unlawful use of communications facilities; and forfeiture.
- Derrick Christopher Mills, age 27, of St. James, Louisiana, is charged with conspiracy; unlawful use of communications facilities; and forfeiture.
- Denmond L. Smith, age 38, of St. James, Louisiana, is charged with conspiracy; unlawful use of communications facilities; and forfeiture.
Acting U.S. Attorney Amundson stated, “This indictment is aimed squarely at the heart of a drug trafficking organization allegedly responsible for spreading significant amounts of heroin and other illegal drugs throughout our district. Every community and every person deserves peace, security, and freedom from the tyranny of armed drug traffickers. This indictment seeks to advance that goal. The combined federal, state, and local effort, which resulted in the indictment, reflects once again the unified front against crime in this district. I greatly appreciate the tremendous dedication and hard work by the agents and prosecutors working on this important matter.”
Brad L. Byerley, Assistant Special Agent-in-Charge of the Drug Enforcement Administration’s Baton Rouge District Office stated, “The abuse of heroin and other opioids is a serious problem in our community. All too often, this abuse leads to addiction, shattered lives, and even death. For the health and safety of our citizens, DEA and our law enforcement partners pursued this organization who preyed on the weak and addicted through the distribution of heroin. The resulting arrests further our efforts to prevent heroin trafficking from taking hold in our community.”
Ascension Parish Sheriff Jeff Wiley stated, “This case represents best practices in law enforcement which is utilizing all assets - federal and local. It is our hope that all of these heroin dealers are dealt with in the federal judicial system with the strongest of consequences.”
Antonio Pittman, Resident Agent-in-Charge of the Bureau of Alcohol, Tobacco, and Firearms’ Baton Rouge Field Office stated, “The Bureau of ATF is proud to work with federal, state, and local law enforcement, as well as the Middle District of Louisiana U.S. Attorney's Office on Operation Dirty Bird. Through successful collaborations such as this one, law enforcement continues to ensure the safety of our communities.”
This operation is being handled by the U.S. Attorney’s Office, the U.S. Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Baton Rouge City Police Department, the Ascension Parish Sheriff’s Office, the Iberville Parish Sheriff’s Office, the West Baton Rouge Parish Sheriff’s Office, the East Baton Rouge Parish Sheriff’s Office, the Louisiana State Police, and the Gonzales Police Department. This matter is being prosecuted by Assistant United States Attorney Jennifer Kleinpeter, who also serves as a deputy criminal chief.
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program that was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
NOTE: An indictment is an accusation by the Grand Jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Ocean Springs Man Pleads Guilty to Accessing Child Pornography with Intent to ViewRead the Press Release
Gulfport, Mississippi. – Kristopher Michael Brumfield, 38, of Ocean Springs, pled guilty on March 21, 2017 to one count of access with intent to view child pornography, announced Acting U.S. Attorney Harold Brittain and Special Agent in Charge Raymond R. Parmer, Jr. of Homeland Security Investigations (HSI).
In August 2014, HSI identified three user profiles contained within a foreign photo sharing website which contained child pornography. The HSI investigation that followed identified Brumfield as the individual who knowingly accessed the website and viewed the uploaded images of minors engaged in sexually explicit conduct. It was further determined that via email, Brumfield corresponded with other users of the website, and subsequently traded numerous videos of children engaged in sexually explicit conduct via his email accounts.
Brumfield will be sentenced on June 20, 2017 at 1:30 p.m. by Chief U. S. District Judge Louis Guirola, Jr. He faces a maximum sentence of 10 years in prison and a $250,000 fine.
This case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorneys Andrea Jones and Glenda Haynes.
North Carolina Man Sentenced to 52 Months in Federal Prison for Drug TraffickingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANTONIO FREELAND, also known as “Frezzie,” 27, of Burlington, North Carolina, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 52 months of imprisonment, followed by three years of supervised release, for drug trafficking.
According to court documents and statements made in court, this matter stems from an investigation headed by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, Stamford Police Department, Norwalk Police Department and Connecticut State Police into a drug trafficking organization led by Wilfredo Gutierrez, also known as “Bean” and “Big Pun,” and his brother, Bobby Gutierrez, also known as “B.O.” The investigation included court-authorized wiretaps, controlled purchases of narcotics and physical surveillance.
On three occasions in 2016, FREELAND and Michael Lundy, of Raleigh, N.C., traveled from to Connecticut to acquire distribution quantities of drugs, including heroin, cocaine and marijuana, from Bobby Gutierrez. On May 3, 2016, FREELAND and Lundy drove to Connecticut with approximately $13,000 in cash to purchase drugs.
On May 4, 2016, FREELAND and Lundy met Gutierrez at B&B Deli at 988 State Street in Bridgeport, which was owned by the Gutierrez family and served as a hub for their drug dealing. After FREELAND and Lundy left B&B Deli, at approximately 12:30 p.m., Connecticut State Police attempted to stop FREELAND and Lundy’s vehicle on I-95 South in the vicinity of Exit 10. FREELAND failed to obey the order to stop and engaged police in a high-speed chase that reached speeds in excess of 110 miles per hour, weaving in and out of traffic and utilizing the center median and right shoulder. At one point, FREELAND’s car sideswiped a car in the left lane. FREELAND exited on Exit 2 and rammed the back of a minivan that was waiting at a stop sign at the bottom of the exit, injuring the occupant who was taken to the hospital. FREELAND and Lundy were then taken into custody. A search of the chase route revealed a bag containing approximately 370 grams of cocaine that had been thrown from the vehicle.
As part of this investigation, law enforcement officers executed several federal search warrants on May 26 and May 27, 2016. A search of Bobby Gutierrez’s Stamford residence revealed a quantity of cocaine, $25,916 in cash and other items used in the trafficking of narcotics; a search of Gutierrez’s girlfriend’s residence revealed $47,316 in cash, more than three kilograms of cocaine, and two firearms, and a search B & B Deli revealed two digital scales, two large ziplock bags containing what appeared to be cutting agents, and five cellphones.
FREELAND has been detained since his arrest. On October 13, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine.
Nine individuals were charged as a result of the investigation. All pleaded guilty. On March 16, 2017, Wilfredo Gutierrez was sentenced to 180 months of imprisonment. Lundy and Bobby Gutierrez are detained while awaiting sentencing.
The DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force includes members from the Bridgeport, Stamford, Stratford, Norwalk, Milford and Trumbull Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorneys Anthony Kaplan and Heather Cherry.
Newark Man Pleads Guilty to StructuringRead the Press Release
WILMINGTON, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware, announced that Matthew Czap, age 68, formerly of Newark, Delaware, entered a plea of guilty to a one-count Felony Information charging him with structuring financial transactions to avoid currency reporting requirements. The defendant faces up to 10 years in prison and a $500,000 fine.
The Information alleges that between November 2, 2015 and March 30, 2016, defendant made eighteen separate cash deposits, totaling $163,460, each in an amount of less than $10,000. Defendant made many of the deposits on successive days, in amounts approaching, but under, $10,000. At the time he made these deposits, defendant was aware of the currency transaction reporting regulations that required the financial institution where he made these deposits to file a report with the government, documenting any cash transactions over $10,000. Defendant structured these cash deposits in order to avoid triggering the reporting requirement. In his guilty plea, defendant further admitted to structuring, in total, approximately $1.2 million dollars between 2013 and 2016.
Defendant’s wife was charged in December 2016 with wire fraud, identity theft, money laundering, and tax offenses. That case, United States v. Roberta Czap, 16-cr-96-LPS remains pending.
Acting U.S. Attorney Weiss gave the following comment, “The currency transaction reporting requirements serve to protect the U.S. banking system from those who attempt to launder cash. We are committed to prosecuting those who evade these safeguards in such a deliberate and egregious way.”
"Structuring financial transactions to avoid currency reporting requirements is a criminal violation of federal law under the Bank Secrecy Act,” said IRS Criminal Investigation Acting Special Agent in Charge Gregory Floyd. “Deliberately avoiding BSA requirements is a form of money laundering that will be vigorously investigated by IRS Criminal Investigation."
“Today’s guilty plea announcement is significant and highlights the FBI’s collaboration with our partner agencies as we hold this defendant accountable for structuring financial transactions to avoid currency reporting requirements,” said Special Agent in Charge Gordon B. Johnson of the FBI’s Baltimore Division. “The FBI and the IRS will continue to use all available tools to detect illegal money laundering and structuring activity.”
This case is the result of an investigation conducted by the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation. The prosecution is being handled by Assistant United States Attorney Lesley Wolf.
New York Man Admits Assault with the Intent to Stalk on AirplaneRead the Press Release
NEWARK, N.J. – A Monsey, New York, man admitted today that he assaulted with the intent to stalk a woman on a flight from Israel to Newark Liberty International Airport, Acting U.S. Attorney William E. Fitzpatrick announced.
Yoel Oberlander, 36, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to a superseding information charging him with assault with intent to commit stalking.
According to the Superseding Information:
While on an El Al flight from Tel Aviv to Newark on May 29, 2016, Oberlander knowingly and intentionally assaulted an adult female victim with the intent to harass and intimidate her, and such conduct caused or could be reasonably expected to cause the victim substantial emotional distress.
Oberlander admitted that he assaulted the female victim, who was seated next to him on the plane, that he touched her in the area of her chest, upper thigh, and hand without her consent, and that he did so with the intent to harass and intimidate her.
Oberlander faces a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for June 28, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and the Port Authority of New York-New Jersey, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Melissa M. Wangenheim and Joyce M. Malliet of the U.S. Attorney’s Criminal Division in Newark.
Defense counsel: Eric Kanefsky Esq., Newark
Muscle Shoals Man Sentenced to Nearly Eight Years in Prison as Three-Time Convicted Felon Possessing a GunRead the Press Release
BIRMINGHAM – A federal judge on Tuesday sentenced a Muscle Shoals man to nearly eight years in prison as a three-time convicted felon in possession of a gun, announced Acting U.S. Attorney Robert O. Posey and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Steven L. Gerido.
U.S. District Judge Abdul K. Kallon sentenced JERRY ADAM CROCKER, 33, to seven years and eight months in prison on one count of being a convicted felon in possession of a firearm. Crocker pleaded guilty to the charge in December. He already is in custody.
Cullman Police arrested Crocker in June 2016 after he traded a Romarm/Cugir 7.62 x 39mm rifle and a Sig Sauer .40-caliber pistol for an ounce of methamphetamine and $100 from a confidential informant for the police department’s narcotics unit. Crocker had stolen the firearms in a home burglary, according to his plea agreement.
Crocker’s prior felony convictions, which increased his sentence, were burglary, third degree, in Cullman County Circuit Court in February 2012, burglary, third degree, in Cullman County Circuit Court in August 2009, and burglary, first degree, in Cullman County Circuit Court in March 2002.
ATF and the Cullman Police Department investigated the case, which Assistant U.S. Attorney Brad Felton prosecuted.
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Moore Man Pleads Guilty to Child Porn ChargesRead the Press Release
Contact Person: Lance Crick (864) 282-2105
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Harold Blackwell, age 40, of Moore, pled guilty in federal court in Greenville, to possession of child pornography, a violation of Title 18, United States Code, Section 2252A. United States District Judge Bruce H. Hendricks of Charleston accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that undercover law enforcement agents engaging in child exploitation investigations were approached by Blackwell on a “KIK” messaging application. Blackwell sent an undercover officer videos and images of child pornography. Blackwell was approached by law enforcement and admitted to sending child pornography using his cell phone.
Ms. Drake stated the maximum penalty Blackwell can receive is a fine of $250,000 and/or imprisonment for no more than 20 years, plus a special assessment of $100.
The case was investigated by agents of the Federal Bureau of Investigation. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
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Mission Man Pleads Guilty and Sentenced for Simple AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man charged with Simple Assault pled guilty and was sentenced on March 15, 2017, by U.S. Magistrate Judge Mark A. Moreno.
Paris James Bordeaux, age 27, was sentenced to 6 months in custody, and $10 to the Federal Crime Victims Fund. Restitution is being left open for 90 days. Bordeaux’s conviction will count as a domestic violence offense.
The conviction stems from an incident that took place on July 24, 2016, when officers with the Rosebud Sioux Tribe Law Enforcement Services responded to a call regarding domestic abuse occurring at a home in Okreek, in Todd County. Bordeaux admitted to assaulting the victim, who was an intimate partner of Bordeaux.
The investigation was conducted by Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorneys Carrie G. Sanderson and Jeremy R. Jehangiri.
Bordeaux was ordered to report to the custody of the U.S. Marshals Service on April 18, 2017.
Milford Psychiatrist Sentenced to 26 Months for Illegal Drug Distribution, Health Care Fraud OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LJUDMIL KLJUSEV, M.D., 52, of Fairfield, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 26 months of imprisonment, followed by three years of supervised release, for distributing controlled substances outside of the scope of professional practice, and health care fraud. Judge Thompson also ordered KLUSEV to pay a $17,500 fine.
According to court documents and statements made in court, KLJUSEV, who operated a psychiatry practice in Milford, was a high-volume prescriber of Adderall and Xanax to patients, many of whom paid for office visits and prescriptions in cash.
Adderall, which is classified as a Schedule II drug by the DEA, is the brand name for a drug containing a combination of amphetamine and dextroamphetamine, both of which are central nervous system stimulants. This combination of drugs is used to treat narcolepsy and attention deficit hyperactivity disorder (“ADHD”). Xanax, which is classified as a Schedule IV drug by the DEA, is a brand name for a drug containing Alprazolam, a benzodiazepine drug. Alprazolam is commonly used to treat anxiety disorders or panic disorders.
The investigation, which included the use of confidential witnesses and an undercover officer posing as patients, revealed that KLJUSEV prescribed the drugs without a full medical examination of the patient, provided prescriptions without confirming conditions that would medically require treatment using these drugs and dispensed prescriptions in exchange for cash to patients who display substance abuse and addiction behaviors. KLJUSEV also directed non-physician employees to write prescriptions signed by KLJUSEV when he was out of the country.
In 2014 and 2015, KLJUSEV improperly billed private health insurers approximately $76,983 for medical services rendered when he was out of the country.
KLJUSEV has been detained since his arrest on November 12, 2015. On November 30, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute narcotics, and one count of health care fraud.
As part of the resolution of this case, KLJUSEV has agreed to forfeit a property located at 227 Naugatuck Avenue in Milford, where his practice was based, $173,095.20 in cash that was seized from his office on the day of his arrest, and $117,431.13 that was contained in his business checking account.
Judge Thompson also ordered KLJUSEV to pay restitution in the total amount of $31,081.05 to two victim health insurers.
This investigation was conducted by the DEA’s New Haven Tactical Diversion Squad, Federal Bureau of Investigation and Milford Police Department. The DEA Tactical Diversion Squad includes officers from the Bristol, Greenwich, Hamden, Milford, New Haven, Shelton, Vernon and Wilton Police Departments. This case was prosecuted by Assistant U.S. Attorneys Sarah Karwan and Avi Perry.
Metairie Man Pleads Guilty in Methamphetamine Trafficking ConspiracyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that STEVEN LYONS, age 40, pled guilty today to participating in a methamphetamine distribution conspiracy throughout the New Orleans area. Specifically, LYONS acknowledged responsibility for trafficking between 15 and 45 kilograms of methamphetamine in furtherance of the conspiracy.
According to court documents, in 2016, LYONS was a New Orleans area drug trafficker who was receiving parcels containing various amounts of methamphetamine from sources including codefendants TRUNG PHAM, CARLOS MARIO CANTU-COX, and CHRISTOPHER CANTU-COX. LYONS’s suppliers shipped methamphetamine to New Orleans from out of state using the U.S. Postal Service, Greyhound Package Express, and other services.
LYONS faces a mandatory minimum of 20 years of imprisonment and a maximum of life imprisonment, a fine of up to $20,000,000 and at least ten years of supervised release. U.S. District Judge Ivan L.R. Lemelle set sentencing for LYONS on June 21, 2017. Codefendants TRUNG PHAM, CARLOS MARIO CANTU-COX and CHRISTOPHER CANTU-COX are scheduled for trial on June 5, 2017.
Acting U.S. Attorney Evans praised the work of the United States Postal Inspection Service, Louisiana State Police, DEA New Orleans Division Office, and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Brandon Long is in charge of the prosecution.