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Friday 27 January 2017
Man from Mexico pleads guilty to reentering the U.S. twiceRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that a citizen of Mexico pleaded guilty Thursday to illegally reentering the United States after having been previously removed.
Bertoldo Labra-Martinez, 33, of Mexico, pleaded guilty before U.S. District Judge Dee D. Drell to one count of illegal reentry of a removed alien. According to the guilty plea, the defendant was found in the United States on November 3, 2016, while incarcerated at the Calcasieu Parish Correctional Center. Records show that Labra-Martinez was previously removed from the United States in January of 2008 and March of 2015.
Labra-Martinez was previously convicted on October 23, 2014, in the U.S. District Court, Lake Charles Division, for the offense of possession with intent to distribute marijuana. As a result of that conviction, Labra-Martinez faces a maximum term of 20 years in prison, three year of supervised release and a $250,000 fine for the offense of reentry of a removed alien. A sentencing date of March 12, 2017 was set.
United States Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy is prosecuting the case.
Man Who Was Arrested During "Operation Protect the Powerless" Sentenced to 13 Years for Transporting Two Girls from Nevada to California to Work as ProstitutesRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man arrested in 2014 as part of “Operation Protect the Powerless,” a joint law enforcement operation to catch child predators in southern Nevada, was sentenced today by U.S. District Judge Andrew P. Gordon to 156 months in prison and lifetime supervised release, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
“The defendant and his co-defendant exploited two minor girls for their financial benefit by forcing the girls to travel from Nevada to California to work as child prostitutes,” said U.S. Attorney Bogden. “This case is a prime example of successful state and nationwide efforts by multi-agencies and our law enforcement partners to identify and prosecute sexual predators. We remain committed to protecting children from sexual exploitation and abuse.”
Sha-Ron Haines, 20, was convicted by a jury on Aug. 25, 2015, of one count of conspiracy to commit sex trafficking of a child, one count of sex trafficking of a child, one count of conspiracy to transport a minor for prostitution or other illegal sexual activity, and one count of transportation of a minor for prostitution. Haines and co-defendant Tyral Edward King, 21, were indicted by a federal grand jury on Aug. 6, 2014. King pleaded guilty on Aug. 14, 2015, to one count of transportation of an individual for the purpose of prostitution, and was sentenced on March 1, 2016, to 30 months in prison.
According to court records, the investigation commenced on June 24, 2014, when a Clark County probation officer notified a Las Vegas Metropolitan Police Department officer that a 15-year-old girl might be involved in prostitution. Further investigation revealed that in May 2014, Haines and King had driven the 15-year-old girl and a 17-year-old girl, from Las Vegas to Pomona, Calif. and Los Angeles, Calif., with the intent that they engage in prostitution. King’s name and credit card were used to purchase online advertisements on an internet site commonly used by prostitutes and pimps called, “Backpage,” to set up prostitution dates for the minors in California. In May, the girls then engaged in prostitution acts in California, and all of the money they earned was turned over to Haines and King. On May 22, 2014, the 17-year-old girl was arrested by an undercover Los Angeles police officer who had responded to one of the advertisements on “Backpage,” and had met her at a hotel for sex. The 15-year-old girl later returned home to Las Vegas on a bus.
In a separate pending federal case, Haines is charged with assaulting a Southern Nevada federal detention center officer on Feb. 9, 2015, by using his fist to strike the officer in the face, jaw and ear four times. The case is currently scheduled for trial on May 9, 2017.
Operation Protect the Powerless was organized and led by the Project Safe Childhood (PSC) Task Force in southern Nevada, and targeted child traffickers, persons who were coercing and enticing minors for sex, child pornographers, child molesters and child rapists. Members of the PSC Task Force include the FBI, the U.S. Immigration Customs Enforcement Homeland Security Investigations (ICE-HSI), the Las Vegas Metropolitan Police Department, Henderson Police Department, Clark County D.A.’s Office, and the U.S. Marshals Service. Operation Protect the Powerless occurred from June 1 to Dec. 31, 2014, and resulted in the prosecution and conviction of 219 persons, the execution of 100 search warrants, and the recovery of over 500,000 images and 2,700 videos of child rape and pornography. The surge also resulted in prosecutions being handled jointly by the U.S. Attorney’s Office and Clark County District Attorney’s Office, and resulted in distinct charges in federal and state court.
The case was prosecuted by Assistant U.S. Attorneys Lisa C. Cartier-Giroux and Susan Cushman.
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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
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Lee's Summit Man Sentenced for $3.7 Million Mortgage FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lee’s Summit, Mo., man was sentenced in federal court today for his role in a more than $3.7 million mortgage fraud scheme.
Albert William Roberts III, 68, of Lee’s Summit, was sentenced by U.S. District Judge Brian C. Wimes to four years in federal prison without parole. The court also ordered Roberts to pay $1,992,221 in restitution.
On May 13, 2016, Roberts was found guilty at trial of four counts of wire fraud. Roberts, a retired Kansas City, Mo., school teacher, obtained a total of $3,758,420 from mortgage lenders and title companies from 2002 to 2007 for the purchase of a dozen properties from Penrod Homes, Inc. – three properties in Lee’s Summit, six properties in Peculiar, Mo., and three properties in Greenwood, Mo. Most of the homes were priced in the upper $100,000 or lower $200,000 range; the most expensive was a home on about two acres for $1.3 million.
Although Roberts was found guilty of wire fraud specifically in connection with two of those transactions, evidence introduced during the trial indicated that Roberts’ fraud extended to 10 additional properties. Roberts obtained all 12 mortgage loans by material false and fraudulent representations and omissions of facts. He structured the purchases of the homes in such a way that he received $807,203 in kickbacks that were not disclosed to the lenders.
This case was prosecuted by Senior Litigation Consultant Gregg R. Coonrod and Assistant U.S. Attorney Kathleen Mahoney. It was investigated by the FBI.
Lebanon Sex Offender Sentenced to 15 Years for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a prior sex offender in Lebanon, Mo., was sentenced in federal court today for receiving and distributing child pornography over the Internet.
Christian Cannon, 44, of Lebanon, was sentenced by U.S. District Judge Stephen R. Bough to 15 years in federal prison without parole. Cannon, who has six prior state convictions in Washington for possessing child pornography (all from the same criminal case), was sentenced as a prior sex offender.
On July 28, 2016, Cannon pleaded guilty to receiving and distributing child pornography.
On April 18, 2014, a law enforcement officer conducting an investigation into the distribution of child pornography by suspects using peer-to-peer file-sharing software identified Cannon’s computer as sharing images of child pornography over the Internet. Officers executed a search warrant at Cannon’s residence and seized his computer. A forensic examiner located three videos and two images of child pornography on the computer.
This case was prosecuted by Assistant U.S. Attorneys Casey Clark and Patrick Carney. It was investigated by the Southwest Missouri Cyber Crime Task Force and the Missouri State Highway Patrol.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Leader of Illegal Online Pharmacy Sentenced to 8 Years in PrisonRead the Press Release
A former police officer who was the leader of an online pharmacy that illegally distributed hundreds of thousands of narcotic pills and other prescription drugs was sentenced to eight years in prison today, announced U.S. Attorney Annette L. Hayes. JUAN GALLINAL, 49, of Pembroke Pines, Florida is a former police officer from Virginia. GALLINAL was the organizer of the online pharmacy operation, turning a small brick and mortar drugstore into a massive online pill mill that spread addiction across the country. Highlighting the devastation of opioid abuse, U.S. District Judge Richard A. Jones noted that during his time as a police officer GALLINAL had “the opportunity to see the ravages and consequences of addiction to drugs.”
“This defendant is one of the ‘founding fathers’ of this internet pharmacy business that exploited the drug addiction of people across the country for his own gain,” said U.S. Attorney Annette L. Hayes. “Using a sham owner, shell corporations and databases hidden on a server in Switzerland, Mr. Gallinal tried to hide his business and his role from the law. I commend the Drug Enforcement Administration for their diligent work on this case that led to the shuttering of this criminal operation.”
Under the name ‘Discount Pharmacy’ and later ‘A-1 Pharmacy’, the internet operation distributed drugs to some 200 customers in Washington State between 2009 and 2012. The pharmacy shipped hundreds of thousands of pills of hydrocodone, phentermine, alprazolam (Xanax) and codeine (Tylenol 4) to thousands of people across the country who did not have valid prescriptions for the narcotics. The conspiracy brought in more than $9 million in revenue from the sale of pills during the three-year scheme. The pharmacy operated four internet sites through which the defendant and his co-conspirators solicited customers including those in Washington State. According to records in the case, the conspiracy filled prescriptions even if no valid prescription existed. At times the conspirators simply looked for a physician in the same geographic area as the customer, with a similar sounding name, and filled the prescription using the physician’s DEA number without the physician’s knowledge. The pharmacy charged as much as ten times the usual price for the medications.
In June 2012, the DEA seized the websites, computers, and drug inventory associated with the illegal pharmacy. In April 2015, GALLINAL pleaded guilty to conspiracy to distribute controlled substances, conspiracy to distribute controlled substances by means of the internet, conspiracy to introduce misbranded prescription drugs, conspiracy to commit money laundering, and destruction, alteration and concealment of records. He agreed to a forfeiture money judgment of more than $1.9 million.
GALLINAL is the final defendant to be sentenced. Judge Jones noted GALLINAL was the leader who drew his co-conspirators into his “web of deceit and greed…. You were the orchestrator, conductor, composer and chief engineer making this engine run.”
The other defendants include:
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Craig Greer, 43, of Hollywood, Florida, was sentenced to 60 months in prison;
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Kevin Kogan, 48, of Cedar Park, Texas, was sentenced to 30 months in prison;
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Jordan Truxell, 26, of Davie, Florida served as the registered agent for Discount Pharmacy dba frontierpharmacies.com. He was sentenced to a year in prison in June 2016;
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Thomas Brooke, 54, of Cooper City, Florida, the bookkeeper for Discount Pharmacy, was sentenced in March 2016 to 60 months in prison;
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Ali Lovins, 44, of Cooper City, Florida is a registered nurse and was the office manager for Discount Pharmacy. Lovins was sentenced in March 2016 to 36 months in prison.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The case was investigated by the Portland Tactical Diversion Squad which is comprised of the Drug Enforcement Administration (DEA) and the Portland Police Bureau. Substantial investigative assistance was provided by the Food and Drug and Administration (FDA), Office of Criminal Investigations, Miami Field Office, and DEA Miami Field Division.
The case was prosecuted by Assistant United States Attorneys Mike Lang, Francis Franze-Nakamura and Brian Werner.
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Leader of A Violent Brooklyn Robbery Crew and an Underling Sentenced to Life in Prison for Murder in Aid of RacketeeringRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, New York, Christian John, the leader of the “Hull Street Crew,” a violent criminal gang that operated in the Bushwick, Bedford-Stuyvesant, and East New York areas of Brooklyn for more than a decade, was sentenced to life imprisonment, following his conviction after trial in December 2014 on charges of racketeering, murder, attempted murder, murder-for-hire, armed robbery, murder-for-hire, narcotics distribution and gambling on dog fighting. Marvin Johnson, a member of John’s crew, was also sentenced to life imprisonment, following his conviction after trial on murder, robbery and narcotics distribution charges.
The sentences were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department.
U.S. Attorney Capers stated, “Today’s sentence marks a day of closure for the six families whose loved ones were senselessly murdered and for the Brooklyn communities where John and his violent crew wreaked havoc from more than a decade. These life sentences also provide notice to gang members and violent offenders that this Office and our law enforcement partners will be relentless in our efforts to make communities safe for their residents.” Mr. Capers extended his grateful appreciation to the FBI and the New York City Police Department for their outstanding assistance in this case.
As proven at trial, Christian John was found guilty of the 2000 murder of Charlemagne Lormand, the 2008 murder of Barry Haynes, the 2008 murder of Daquane Shelton and the 2011 murders of Jason Bostic and Aaron Formey. Both defendants were found guilty of the 2006 murder of Earle Kevin Obermuller. During the Obermuller murder, the defendants lured the victim to an abandoned building where they duct taped his entire head and watched him suffocate to death. The defendants then set his body on fire. During the 2011 murders of Jason Bostic and Aaron Formey, John ordered his crew members to bind the victims with duct tape and to kill them. Among his many other crimes, John was also found guilty of assaulting a crew member by tying him up and pouring scalding water over his body as retaliation for the crew member being disloyal to John.
The government’s case is being prosecuted by Assistant United States Attorneys Soumya Dayananda and Robert T. Polemeni.
The sentencing proceeding took place before United States District Judge Frederic Block.
The Defendants:
CHRISTIAN KESTON JOHN
Age: 32
Brooklyn, N.Y.
MARVIN JOHNSON
Age: 32
Brooklyn, N.Y.
E.D.N.Y. Docket No. 11-CR-00405
Kenmore Man Sentenced on Meth 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 John McNeill, 57, of Kenmore, NY, who was convicted of conspiracy to possess with intent to distribute methamphetamine, was sentenced to 57 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Thomas S. Duskiewicz, who handled the case, stated that the defendant, the former owner of Mixology Bar on Forest Avenue in Buffalo, received large shipments of methamphetamine from a source of supply in San Diego, CA. A package was intercepted by law enforcement officers on September 5, 2014, and a controlled delivery was made to McNeill’s Kenmore residence. The package contained ¼ kilogram of methamphetamine with a street value of approximately $38,000.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, the Cheektowaga Police Department, under the direction of Chief David Zack, and the Niagara Frontier Transportation Authority Police, under the direction of Chief George Gast.
KC Man Pleads Guilty to Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to possessing child pornography.
Donovan K. Munter, 21, of Kansas City, waived his right to a grand jury and pleaded guilty before U.S. District Judge Howard F. Sachs to a federal information that charges him with one count of possessing child pornography.
In February 2015, federal agents conducting an investigation of a peer-to-peer file-sharing network identified Munter’s computer as sharing images and videos of child pornography over the Internet. Agents executed a search warrant at Munter’s residence on June 4, 2015, and seized several computers and related items.
A forensic examiner located more than 1,200 images and more than 300 movies of child pornography on the computers and electronic media, including images of children as young as three years old.
Under federal statutes, Munter 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 David Luna. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Jamaican National Indicted in Federal Drug Case for Allegedly Supplying Flight Attendant with nearly 60 Pounds of CocaineRead the Press Release
LOS ANGELES – A federal grand jury has named a Jamaican man in an indictment that accuses him of supplying a Jet Blue flight attendant with nearly 60 pounds of cocaine that she attempted to smuggle on to a plane at Los Angeles International Airport.
Gaston Brown, 39, of Jamaica, was charged yesterday with one count of conspiracy to possess with intent to distribute cocaine, and one count of possession with intent to distribute cocaine.
Brown is currently serving a one-year-and-one-day federal prison sentence after being convicted in the Southern District of Florida of illegal re-entry after deportation. A federal judge yesterday issued a writ directing that Brown be brought to Los Angeles for an arraignment, which will likely be in mid-February.
Brown allegedly supplied the narcotics to Marsha Gay Reynolds, a former JetBlue flight attendant, who pleaded guilty last month to federal drug charges and admitted she attempted to bring the narcotics through a security checkpoint at LAX by using her “known crewmember” credentials.
“This case demonstrates law enforcement’s commitment to disrupting dangerous drug trafficking networks,” said United States Attorney Eileen M. Decker. “After making the large seizure of narcotics at LAX, investigators continued to look into this matter, which resulted in the indictment of a defendant who was trafficking a significant amount of cocaine.”
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If Brown is convicted of the drug trafficking charges, he would face a mandatory minimum sentence of 10 years in federal prison and a maximum possible sentence of life.
This investigation is being conducted by the Los Angeles International Airport Criminal Enterprise Task Force (LAACETF), an inter-agency task force based at LAX. The Task Force, which includes representatives of the FBI, the DEA, United States Customs and Border Protection, the Transportation Security Administration, the Los Angeles International Airport Police Department, the Los Angeles Police Department, and the Los Angeles Sheriff’s Department. The LAACETF provides a coordinated law enforcement effort to target airport/airline internal criminal enterprises that use the aviation system to transport large amounts of illicit drugs throughout the United States and various international destinations.
This matter is being prosecuted by Assistant United States Attorney Reema M. El-Amamy of the Organized Crime Drug Enforcement Task Force.
Indianapolis man sentenced to federal prison for local pharmacy robberiesRead the Press Release
Robbed or attempted to rob CVS and Walgreen’s stores
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler announced today that an Indianapolis man was sentenced to prison for his role in the robbery or attempted robbery of four Indianapolis pharmacies. Jensen Gayden, 20, was sentenced to 108 months (nine years) imprisonment by U.S. District Judge Tanya Walton Pratt, following his guilty plea to four counts of interference with commerce by threats of violence and one count of possession of a firearm during and in furtherance of a crime of violence.
“Pharmacy robberies are not only acts of violence that put our community in harm’s way, but they also contribute to the opioid abuse problem which has become such a scourge in Indiana and around the country,” said Minkler.
Gayden robbed the Walgreens pharmacy located at 3003 Kessler Boulevard North on June 22, 2015, and a CVS pharmacy located at 6290 North College Avenue on June 24, 2015. Also on June 24, 2015, Gayden attempted to rob a CVS pharmacy located at 3808 East Washington Street and the same Walgreens pharmacy located at 3003 Kessler Boulevard North that he had successfully robbed two days earlier. Indianapolis Metropolitan Police Department officers arrested Gayden after he attempted the Walgreens robbery on June 24, 2015.
According to United States Attorneys Bradley A. Blackington and MaryAnn T. Mindrum who prosecuted this case for the government, Gayden must pay a $1,000 fine and serve two years of supervised release following his sentence.
Huntington woman pleads guilty to federal heroin chargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman found with heroin after police responded to a shooting call at her residence in 2015 pleaded guilty today to a federal drug charge, announced United States Attorney Carol Casto. Amanda Mae Smith, 33, entered her guilty plea to possession with intent to distribute heroin.
On August 20, 2015, officers with the Huntington Police Department responded to a call of a shooting at Smith’s residence located on the 800 block of 26th Street in Huntington. When officers arrived, they located Smith and an individual who had been shot in the leg during what was reported as an attempted robbery. Officers subsequently obtained search warrants for Smith’s residence and vehicle. When officers searched the vehicle, they located approximately 70 grams of heroin. Smith provided a statement in which she admitted that she had received the heroin from a source for distribution. She further admitted that she and others had been using her residence to distribute heroin.
Smith faces up to 20 years in federal prison when she is sentenced on May 1, 2017.
The Huntington Police Department, the Cabell County Sheriff’s Department and the Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Honduran National Indicted for Illegal Re-EntryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that WILSON MAURICIO OSORTO-ESTRADA, age 35, was charged today in a one-count Indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a) & (b)(2).
According to the Indictment, OSOTROS-ESTRADA, reentered the United States after he was previously deported on January 17, 2013.
If convicted, OSOTRO-ESTRADA faces a maximum term of imprisonment of ten years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment.
U.S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Heber Springs Man Sentenced to 180 Months' Imprisonment for Production of Child PornographyRead the Press Release
LITTLE ROCK-Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Raymond R. Parmer, Special Agent in Charge of Homeland Security Investigations (HSI) New Orleans, announced today that Spencer Goudy, 23, of Heber Springs, was sentenced to 180 months’ imprisonment and five years of supervised release.
Goudy was originally indicted on July 7, 2015, with the sexual exploitation of five minors ranging in ages between 13 and 16 at the time of victimization. Goudy was charged with 4 counts of enticement of a minor to engage in a sex act, 2 counts of production of child pornography, and 1 count of possession of child pornography.
The investigation began in May 2014, when a 13-year-old female disclosed to investigators at the Arkansas State Police Crimes Against Children Division that she was having a sexual relationship with Spencer Goudy. Goudy was arrested and subsequently charged in Cleburne County with Rape of a minor less than 14 years of age, a violation of Arkansas Code Annotated 5-14-103(a)(3)(A). Goudy was also charged in White County with Rape of a minor less than 14 years of age, a violation of Arkansas Code Annotated 5-14-103(a)(3)(A).
Upon Goudy’s arrest, a cellular telephone was seized and later searched pursuant to a federal search warrant. The search of Goudy’s cellular telephone revealed that Goudy used it to entice multiple minor females to engage in sex acts and contained images of minors engaged in sexually explicit conduct.
“Forcing minors to engage in sex and sharing the assaults with others is an unconscionably heinous act,” said Raymond R. Parmer, Jr. “HSI will continue to work with our law enforcement partners to ensure people who prey on children are brought to justice.
On December 2, 2015, Goudy pled guilty to one count of production of pornography in exchange for the dismissal of the remaining counts of the Indictment, as well as dismissal of the state charges.
Today, Goudy was sentenced by Chief United States District Judge Brian S. Miller to 180 months’ imprisonment and five years of supervised release. He must also register as a sex offender.
“A sentence of 15 years will never undo the irreparable harm caused to the victims of Goudy,” said Thyer. “However, this sentence will hopefully deter those individuals who seek to destroy the innocence of Arkansas’ children.”
This investigation was conducted by the Heber Springs Police Department, Arkansas State Police, and Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Kristin Bryant.
Gospel Singer Sentenced for $4 Million Money Laundering ConspiracyRead the Press Release
ALEXANDRIA, Va. – Jacqueline Green-Morris, 41, of Woodbridge, was sentenced today to 63 months in prison for her role in a money laundering conspiracy which resulted in a loss of $4.1 million.
Green-Morris pleaded guilty on Aug. 30, 2016. According to court documents, Green-Morris was employed as a Quality Analyst/Training Manager for a federal government contractor based in Virginia. As part of her duties, Green-Morris paid invoices submitted by outside vendors for employee training and testing. In 2012, Green-Morris conspired with Amit Chaudhry, owner of an Ashburn based business, to submit inflated and fraudulent invoices for payment of information technology training and professional certification courses that were never provided. Green-Morris and the co-conspirator also created numerous “shell” companies and opened bank accounts in the names of the “shell” companies to facilitate the movement of the proceeds of the fraudulent payments through PayPal. Green-Morris used additional bank accounts held in the names of various entities she controlled, including Jacquie Green Music LLC and Sweet Lane Entertainment, companies used to facilitate her gospel singing career. The amount of loss in this case was at least $4.1 million and Green-Morris used the proceeds to purchase a home in Woodbridge, travel, gamble and purchase luxury items for herself and others.
Co-conspirator Amit Chaudhry pleaded guilty on Sept. 20, 2016, and is scheduled for sentencing on February 9.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Timothy R. Slater, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division; Thomas Holloman, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington; Joseph W. Cronin, Acting Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Christian Schurman, Acting Director of the Diplomatic Security Service (DSS), made the announcement after sentencing by U.S. District Judge Claude M. Hilton. Assistant U.S. Attorneys Kimberly R. Pedersen and Katherine L. Wong prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-190.
Fruitland Woman Pleads Guilty During Trial to Health Care Fraud and Aggravated IdentityRead the Press Release
BOISE – Cherie R. Dillon, 61, of Fruitland, Idaho, pleaded guilty today to 24 counts of health care fraud and 24 corresponding counts of aggravated identity theft for fraudulently billing dental services to health care benefit programs, U.S. Attorney Wendy J. Olson announced. Dillon was indicted on February 9, 2016, by a federal grand jury in Boise. Dillon’s plea came at the close of the government’s case after four days of trial in front of Chief U.S. District Court Judge B. Lynn Winmill.
Evidence at trial demonstrated that between January 1, 2010, and December 31, 2013, Dillon executed a scheme to defraud health care benefit programs, including Medicaid. Even though Dillon was only a dental hygienist, she performed and billed for dental treatments that may only be performed by a dentist. These treatments included fillings, extractions, and dentures. Dillon received payment for those treatments from health care benefit programs while fraudulently misrepresenting that the treatments had been performed by a dentist, and while using the name and provider number of a particular dentist who was not in the office and who was unable to practice at the time. During the scheme, Dillon was a licensed dental hygienist, not a dentist, and practicing in Payette, Idaho.
“Our federal and state health benefits programs rely on providers to be honest about the services they provide, and to only bill for covered services,” said Olson. “Those who seek to deceive not only about the services provided but also about who provided them undermine that system and undermine public faith in federal programs. This office and its law enforcement partners are committed to vigorously investigate and prosecute those who perpetrate this kind of fraud.”
Sentencing is set for May 9, 2017, before Chief U.S. District Judge B. Lynn Winmill.
The maximum sentence for health care fraud is up to ten years of imprisonment and a $250,000 fine. Aggravated identity theft carries a two-year mandatory minimum prison sentence and up to a $250,000 fine.
The case was investigated by Health and Human Services Office of Inspector General with assistance from the Idaho Attorney General’s Medicaid Fraud Control Unit.
Franklin Insurance Agent Sentenced to Prison for Stealing over $100,000 from Elderly ClientRead the Press Release
Scott Rolin, 56, of Franklin, Tenn., and former insurance agent, was sentenced today by U.S. District Judge Waverly D. Crenshaw, Jr., to 18 months in prison, followed by 3 years of supervised release, for stealing over $100,000 from his elderly client, announced United States Attorney David Rivera.
“Rolins used his position of trust to exploit a vulnerable woman and steal her life savings,” said United States Attorney Rivera. “It is my hope that the sentenced imposed today sends a clear message that victimization of elderly citizens will be thoroughly investigated, swiftly prosecuted and fairly punished.”
Evidence set forth during Rolin’s guilty plea and sentencing hearing established that he was a licensed insurance broker who owned and operated a Franklin, Tenn.-based insurance agency, Steele Rolin Co. In 2010, he sold two annuity policies worth over $175,000 to one of his existing clients, an elderly widow and former employee of the United States Postal Service.
The evidence also established that Rolin took numerous steps to engender the victim’s trust, including visiting her home, attending family events, referring to her as “mother” and sending her Mother’s Day cards.
Between 2011 and 2015, Rolin made numerous withdrawals from the victim’s accounts without her knowledge or authorization. In order to take the victim’s money, Rolin sent fraudulent disbursement requests to the company that issued the annuity policies, forged the victim’s signature on the resulting checks and deposited the money into his personal and business accounts. He used the embezzled funds to pay various personal expenses. In sum, Rolin stole over $100,000 of the victim’s money over a three-year period.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Henry C. Leventis.
Former RMBS Trader Convicted of Securities Fraud after RetrialRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal jury in New Haven has found JESSE C. LITVAK, 42, of Boca Raton, Fla., guilty of one count of securities fraud stemming from trading in residential mortgage-backed securities (RMBS).
The jury returned a verdict of guilty on one count of securities fraud, and a verdict of not guilty on nine counts of security fraud. The trial before Chief U.S. District Judge Janet C. Hall began on January 5 and the jury returned its verdict this morning.
“Once again, a jury of his peers has rejected Mr. Litvak’s claims that he engaged in acceptable sales practices, and determined that his lies were, in fact, criminal behavior,” said U.S. Attorney Daly. “I thank SIGTARP and the FBI for their outstanding work on this investigation and related cases. Our criminal investigation of individuals and institutions involved in fraudulent RMBS trading activities remains active and ongoing. We are confident that these prosecutions have acted as a forceful disincentive to market participants tempted to commit securities fraud.”
“The jury’s verdict confirms that Jeffries trader Jesse Litvak’s sales tactics are not merely distasteful negotiating practices but a crime,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “SIGTARP is sworn to protect taxpayer dollars and the jury found today that Litvak defrauded a customer trading in a TARP program. SIGTARP, partnering with U.S. Attorney Deirdre Daly and her dedicated team, uncovered that this Wall Street trader lied to customers, all to secretly profit at the expense of customers trading with taxpayer dollars. SIGTARP and U.S. Attorney Daly’s office uncovered the full extent of Litvak’s crime by looking deal by deal. In this mortgage backed securities market that has no transparency on current market prices, everyone should look at their own conduct and above all, be honest in their dealings. After Litvak’s indictment, some broker dealers changed practices to prevent this type of fraud. Those who did not should do so now. SIGTARP and U.S. Attorney Daly stand united in vigilance against crime in this market.”
“Mr. Litvak’s jury trial conviction today is yet again evidence that justice prevails over greed, deceit and criminal behavior,” said FBI Special Agent in Charge Ferrick.
According to the evidence introduced during the trial, in response to the 2008 financial collapse, the U.S. Department of Treasury introduced the Legacy Securities Public-Private Investment Program (PPIP), and used billions of dollars of bailout money from the Troubled Asset Relief Program (TARP) to restart the trading markets for many troubled securities, including certain kinds of RMBS. The program created nine PPIP funds, and more than 100 firms applied to manage the funds.
LITVAK was a senior trader and managing director at Jefferies & Co, Inc. (“Jefferies”), a global securities and investment banking firm headquartered in New York. Jefferies also had a trading floor in Stamford, Conn., where LITVAK and other members of its Mortgage and Asset-Backed Securities trading group worked.
The jury found that LITVAK engaged in a scheme to defraud. As a broker-dealer, only LITVAK – not the bond seller or buyer – knew the selling and asking prices of the parties. In the count of conviction, LITVAK exploited this information by misrepresenting to his PPIP fund victim the price Jefferies paid for a RMBS bond in order to increase Jefferies’ profit on the trade.
Securities fraud carries a maximum term of imprisonment of 20 years.
Chief Judge Hall scheduled sentencing for April 21, 2017, at which time LITVAK faces a maximum term of imprisonment of 20 years.
LITVAK has been released on bond since his arrest on January 28, 2013.
On March 7, 2014, LITVAK was convicted after trial of 10 counts of securities fraud, one count of TARP fraud and three counts of making false statements to the government. LITVAK appealed his conviction and, on December 8, 2015, the U.S. Court of Appeals for the Second Circuit reversed the judgment of conviction as to the TARP fraud and making false statement charges, and remanded the matter for a new trial on the securities fraud charges.
The investigation of this matter revealed that members of Jefferies’ management in the fixed income division became aware that Jefferies employees were making misrepresentations to customers and did nothing to stop it. Jefferies has cooperated with the federal criminal investigation and paid a total penalty of $25 million as part of a non-prosecution agreement with the government. The penalty included up to $11 million in restitution to victims and up to a $4,200,402 penalty to the U.S. Securities and Exchange Commission (SEC). Jefferies also addressed deficiencies in the compliance and ethics practices and policies of its Mortgage and Asset-Backed Securities Trading group. These measures included Jefferies’ agreement to retain an Independent Compliance Consultant to conduct a review of Jefferies’ policies and procedures for detecting and preventing fraud in connection with the purchase or sale of RMBS.
This matter has been investigated by SIGTARP and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Jonathan Francis, Heather Cherry and William Nardini.
Former College Professor Sentenced for Possessing Child PornographyRead the Press Release
CINCINNATI – Holt Parker, 59, of Cincinnati, was sentenced in U.S. District Court to 48 months in prison, 15 years of supervised release, and ordered to pay a $40,000 fine for possession of child pornography, admitting that he attempted to destroy a thumb drive containing nearly 1,000 video files, the majority of which depicted child pornography that he had downloaded from the Internet.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division announced the sentence handed down yesterday afternoon by U.S. District Judge Timothy S. Black.
According to court documents, FBI agents executed a search warrant at his home in the Clifton neighborhood on March 15, 2016. Agents seized a laptop computer and a damaged thumb drive. Parker told agents that when he realized law enforcement officers were searching his house, he attempted to destroy the thumb drive because he had recently downloaded hundreds of images and videos of child pornography. Forensic analysis confirmed that the drive contained video files and images, including an image of an infant.
Parker pleaded guilty to one count of possession of child pornography in October.
“Child pornography is not a victimless crime,” U.S. Attorney Glassman said. “These are real children being abused and possessing such explicit material will have real consequences in the court of law.”
U.S. Attorney Glassman commended the cooperative investigation by the FBI, as well as Assistant United States Attorney Kyle Healey, who is representing the United States in this case.
Former Citibank Employee Pleads Guilty to Credit Card FraudRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Marquise Dahryan Newman (25, Jacksonville) has pleaded guilty to access device (credit card) fraud. He faces up to 10 years in federal prison. As part of his plea agreement, Newman agreed to pay restitution to Citibank. A sentencing date has not yet been set.
According to the plea agreement, in 2014, Newman was an employee of Citibank. As part of his job, he had access to Citibank customers’ credit and debit card information. In late 2014, Newman improperly accessed the customer information for A.G. and obtained a debit card for the account. After successfully obtaining the debit card on that account, Newman then improperly accessed the credit and debit card information for 50 more customers. In an effort to cover his criminal conduct, Newman put false notes into customers’ accounts indicating that the customers had contacted Citibank and stated that they intended to make large purchases in the near future. Thereafter, Newman used the stolen information to make multiple online purchases of merchandise.
This case was investigated by the Jacksonville Sheriff’s Office and the United States Secret Service - Jacksonville Field Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Former Bank Employees Ordered to PrisonRead the Press Release
LAREDO, Texas – Two former employees of IBC Bank in Laredo have been ordered to federal prison for conspiracy to commit bank fraud and ordered to pay more than $200,000 in restitution, announced U.S. Attorney Kenneth Magidson. Antonieta De La Cruz, 36, and Anaiza Morales, 38, both of Laredo, pleaded guilty to the charges in December 2015 and February 2016, respectfully.
Today, U.S. District Judge Diana Saldaña, who accepted the guilty pleas, handed both De La Cruz and Morales 27-month-terms of federal imprisonment. Both were further ordered to pay restitution in the amount of $219,720.11 to IBC Bank. In handing down the sentences, the court noted that IBC Bank tries to promote from within and has an interest in their employees reaching their full potential which is why this (breach of trust) is such a shame.
From 2011 to July 2014, De La Cruz and Morales misused their positions as IBC Sales Associates to execute 31 unauthorized loans and loan advances by falsifying bank records, forging signatures and endorsements and pledging customers’ certificate of deposits as collateral without their knowledge or consent.
As a result of the scheme, IBC suffered a total loss of approximately $219,720.11.
Morales was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future. De La Cruz has been and will remain in custody.
The U.S. Secret Service conducted the investigation. Assistant U.S. Attorney Christopher S. Coker is prosecuting the case.
Ferndale, Washington Man Sentenced to Prison for Child Exploitation CrimeRead the Press Release
A 40-year-old resident of Ferndale, Washington was sentenced today in U.S. District Court in Seattle to six and a half years in prison after he tried to secretly cross the Canadian border to have sex with someone he thought was a 12-year-old girl, announced U.S. Attorney Annette L. Hayes. CHRISTOPHER DAVID JOHNSTON, was arrested in May 2016 when he tried to illegally cross the border into Canada near Sumas following a two-week period during which he communicated with an undercover agent posing as a 12-year-old child. At the sentencing hearing U.S. District Judge Richard A. Jones imposed a ten-year term of supervised release and recommended both sex offender treatment and drug treatment. “What concerns me is that your drug addiction puts you in a position to think this (criminal conduct) is o.k.,” Judge Jones said. “Had this child been a real person… the damage would have been life-long and serious.”
According to records filed in the case, JOHNSTON posted an ad in the “casual encounters” section of the Craigslist personal ad site. The ad used phrases leading law enforcement to believe JOHNSTON was seeking sex with minors. An undercover agent with U.S. Immigration and Custom Enforcement’s Homeland Security Investigation (HSI) responded to the ad posing as a 12-year-old girl. Over the next two weeks JOHNSTON sent increasingly sexualized communications and asked for explicit pictures of the “girl.” On May 20, 2016, JOHNSTON left his home and headed toward the Canadian border, intending to illegally cross the border and meet the “girl” for sex. He was under surveillance the entire time and was arrested before crossing into Canada.
At the time of his arrest JOHNSTON was facing various state charges in Whatcom County which would have prevented him from legally crossing the border. In asking for the prison sentence and 20-year term of supervised release, prosecutors noted that JOHNSTON was willing to go to great lengths to try to reach the fictional 12-year-old. “Even the fact that he had no means of legally crossing into Canada and his pending felony charges were not sufficient to deter him,” prosecutors wrote in their sentencing memo. JOHNSTON is required to register as a sex offender following his release from prison.
The case was investigated by U.S. Immigration and Custom Enforcement’s Homeland Security Investigation (HSI). The case was prosecuted by Assistant United States Attorney Matthew Hampton.
Federal Officials Destroy Drug Paraphernalia Valued at More than $220,000 with Assistance from the City of AlbuquerqueRead the Press Release
ALBUQUERQUE – Federal and City officials gathered this afternoon at the City of Albuquerque’s Cerro Colorado Landfill to witness the destruction of drug paraphernalia valued at more than $220,000. The drug paraphernalia was seized and forfeited in connection with several federal investigations into synthetic cannabinoid trafficking occurring in “smoke shops” in New Mexico and west Texas.
The destruction of the drug paraphernalia was coordinated by U.S. Marshal Conrad E. Candelaria and the U.S. Marshals Service, which serves as the primary custodian of seized and forfeited property for the Department of Justice’s Asset Forfeiture Program. “The federal asset forfeiture laws are used to remove financial incentives from crime by depriving criminals of the cash and other assets they rely upon to facilitate their illegal activity,” said Marshal Candelaria. “The money generated from the sale of forfeited assets is used to compensate victims, supplement funding for law enforcement crime fighting initiatives, and support community programs.”
Marshal Candelaria was joined by U.S. Attorney Damon P. Martinez, whose office prosecuted the criminal cases and litigated the civil forfeiture cases generated by the investigations, and Albuquerque Mayor Richard J. Berry, who made the resources of the City’s Solid Waste Management Department available to destroy and bury the drug paraphernalia. Also participating were DEA Assistant Special Agent in Charge Sean R. Waite and FBI Assistant Special Agent in Charge Derek A. Fuller, whose agencies conducted the investigations resulting in the seizure and forfeiture of the drug paraphernalia.
“When we forfeited the drug paraphernalia destroyed today, we took away the tools of the trade used by drug traffickers to perpetuate crime in our communities and we shut down businesses that served as fronts for drug trafficking,” said U.S. Attorney Martinez. “The asset forfeiture laws enable us to disrupt and dismantle criminal organizations that would continue to function if we only focused our efforts on prosecuting those arrested during our investigations.”
“The City of Albuquerque has a history of working on joint partnerships with our federal partners to create a net of security across our city,” said Mayor Richard J. Berry. “I am proud to, again, collaborate on this latest project to deter and stop illegal activity happening in our community.”
The drug paraphernalia destroyed today was seized pursuant to federal search and seizure warrants from smoke shops that operated in Albuquerque, Hobbs, Ruidoso and west Texas. The paraphernalia included thousands of bongs, “crack” pipes, and other glassware used to ingest illegal narcotics as well as packaging material. In addition to the drug paraphernalia, proceeds from the illegal sale of synthetic cannabinoids and drug paraphernalia were seized and forfeited to the United States. The locations from which the drug paraphernalia was seized included:
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The Snack & Smoke Shop, formerly located at 2118 Central Avenue SE in Albuquerque. Drug paraphernalia valued at more than $18,700 was seized during the execution of a search and seizure warrant in Sept. 2014.
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Just Smokes, formerly located at 216 University Blvd. in Lubbock, Texas. Drug paraphernalia valued at more than $37,500 was seized during the execution of a search and seizure warrant in June 2015.
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Just Smokes, formerly located at 2209 West 5th Street in Plainview, Texas. Drug paraphernalia valued at more than $33,800 was seized during the execution of a search and seizure warrant in June 2015.
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The Magic Mushroom, formerly located at 1407 Sudderth Drive in Ruidoso. Drug paraphernalia valued at more than $11,300 was seized during the execution of a search and seizure warrant in April 2015.
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Up in Smoke, formerly located at 220 East Marland Street in Hobbs. Drug paraphernalia valued at more than $53,800 was seized during the execution of a search and seizure warrant in June 2015.
The value of the drug paraphernalia destroyed today is exclusive of the value of other assets, currency and drugs seized and forfeited as a result of these investigations. For example, the investigation that targeted the smoke shops in Hobbs and west Texas resulted in the civil forfeiture of $2.8 million dollars in drug proceeds and assets in Nov. 2016.
Assistant U.S. Attorney Stephen R. Kotz is the Asset Forfeiture Coordinator for the U.S. Attorney’s Office, and was responsible for litigating the civil forfeiture cases and facilitating the administrative forfeiture processes resulting from these investigations. The criminal cases filed as a result of the investigations were prosecuted by Assistant U.S. Attorney Jennifer M. Rozzoni.
Synthetic cannabinoids are commonly referred to as “spice.” According to the DEA, over the past several years, there has been a growing use of synthetic cannabinoids. Smoke-able herbal blends marketed as being “legal” have become increasingly popular because they are easily available and, in many cases, are more potent and dangerous than marijuana. These products consist of plant material that has been coated with dangerous psychoactive compounds that mimic THC, the active ingredient in marijuana. These substances, however, have not been approved by the Food and Drug Administration for human consumption, and there is no oversight of the manufacturing process. Synthetic cannabinoids often are labeled as incense to mask their intended purpose.
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Federal Jury Convicts El Paso Drug TraffickerRead the Press Release
In El Paso, an El Paso man faces between ten years and life in federal prison after a federal jury convicted him on multiple drug trafficking charges announced United States Attorney Richard L. Durbin, Jr. and Drug Enforcement Administration Special Agent in Charge Will R. Glaspy, El Paso Division.
Following a week-long trial, the jury convicted 56–year-old David Lopez yesterday afternoon of one count of conspiracy to possess over 1,000 kilograms of marijuana and one count of possession of over 100 kilograms of marijuana. Evidence presented at trial revealed that David Lopez had been transporting marijuana from El Paso, Texas to cities in the United States from August 2001 until August 2015. Lopez utilized commercial tractor trailers driven by himself and other hired drivers. In total, the DEA was able to historically connect significant marijuana seizures in Sierra Blanca (TX), Abilene (TX), Alamogordo (NM), and Pratt County (KS), totaling over 3,300 kilograms of marijuana. Additional evidence was presented that Lopez attempted to hire a confidential source and an undercover officer to transport marijuana for him.
Furthermore, in 2010, Lopez was stopped in Clark County, KS. After a K-9 alerted to his vehicle, officers found $130,000 in his suitcase. Lopez denied any knowledge of the cash, though the cash was packaged similar to the $53,000 cash found in his safe after a search of his residence in 2015.
In a separate forfeiture trial which followed the trial on drug charges, the government presented additional testimony and documents showing that Lopez had acquired and utilized tractor trailers, personal vehicles, and his residence to operate his drug transportation business. Those assets, and others obtained from the money acquired from his illegal transportation of marijuana, were ordered forfeited to the government.
Lopez has remained in federal custody since his arrest on June 3, 2016. He is scheduled to be sentenced at 8:00am on April 6, 2017, before U.S. District Judge Philip R. Martinez.
“With this conviction, DEA and our law enforcement partners are working together to have a positive impact at the local level. We are sending a strong and unified message that drug dealing, at all levels, will not be tolerated, and, in turn, we are making our communities safer,” said Will R. Glaspy, DEA Special Agent in Charge.
This case resulted from an investigation conducted by DEA El Paso, DEA Kansas City, El Paso County Sheriff’s Office, El Paso Police Department, Anthony Police Department, United States Border Patrol, Kansas Highway Patrol, Clark County Kansas Sheriff’s Office, Kansas Bureau of Investigation, and Homeland Security Investigations with the assistance of The Document and Media Exploitation (DOMEX) El Paso Branch.
Erie Woman Sentenced to Prison for Concealing Felon from ArrestRead the Press Release
ERIE, Pa. -A former resident of Erie, Pennsylvania, was sentenced in federal court on Tuesday to serve 21 months in federal prison and three years of supervised release on her conviction of concealing a person from arrest, Acting United States Attorney Soo C. Song announced today.
United States District Judge David S. Cercone imposed the sentence on Damonique Shakara Henderson, 24.
According to information presented to the court, between February 26, 2015 and May 20, 2015, Henderson harbored and concealed Ricky Rashad Pullium, fully knowing that he was wanted on a federal charge of possession of a firearm by a convicted felon. Henderson transported Pullium out of the Erie area and attempted to conceal him from arrest. The U.S. Marshals Service, Western Pennsylvania Fugitive Task Force arrested Pullium and Henderson on May 20, 2015, in Erie, Pa., where they were found hiding in a crawl space in the attic.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the United States Marshals Services, the Federal Bureau of Investigation, and the Pennsylvania State Police for the investigation leading to the successful prosecution of Henderson.
Erie Man Sentenced to Prison for Conspiring to Traffic CocaineRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to serve 12 months in federal prison followed by three years of supervised release on his conviction of violating federal drug laws, Acting United States Attorney Soo C. Song announced today.
United States District Judge David S. Cercone imposed the sentence Tuesday on Nathanael Ortiz Andino, 30, of Erie, Pennsylvania.
According to information presented to the court, from June 2013 through February 2015, Andino engaged in a conspiracy to distribute and possess with intent to distribute cocaine which he obtained from other co-conspirators. The court was advised that the cocaine was distributed in Erie as part of a large network transporting cocaine from Mexico into Texas, and from Texas to Erie, Pennsylvania concealed in hidden compartments in vehicles. Andino was responsible for conspiring to distribute multiple ounces of cocaine in the Erie area.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
Acting U.S. Attorney Song commended the Homeland Security Investigations, the Drug Enforcement Administration, the Pennsylvania State Police, U.S. Border Patrol, the Internal Revenue Service, Criminal Investigation; the Pennsylvania Office of Attorney General Organized Crime Section, the U.S. Postal Inspection Service, the U.S. Marshals Service, and the Bureau of Alcohol Tobacco Firearms and Explosives, for the investigation leading to the successful prosecution of Andino.
E. Greenwich Resident Charged with Enticing a Minor for Sexual ActivityRead the Press Release
PROVIDENCE – Stephen Ferrante, 61, of East Greenwich, was ordered detained in federal custody following an initial appearance in U.S. District Court in Providence on Thursday before Magistrate Judge Lincoln D. Almond on a federal criminal complaint charging him with attempting to persuade, induce, entice or coerce an individual who has not attained the age of 18 years to engage in sexual activity.
It is alleged in court documents that Ferrante arranged to engage in sexual activity with an 8-year-old female during a series of emails, text messages and a telephone conversation with a person he believed to be the minor’s step-father. The person he was communicating with was a Rhode Island State Police detective assigned to the State Police Internet Crimes Against Children (ICAC) Task Force.
Ferrante’s arrest and the filing of a federal criminal complaint in this matter is announced by United States Attorney Peter F. Neronha; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations for New England.
According to court documents, it is alleged that on January 4, 2017, a State Police detective responded by email to a posting on Craigslist.com posted by Ferrante soliciting “open minded” parents of a daughter willing to allow their daughter to “be naked in a group setting.” Ferrante was led to believe that he was communicating with the step-father of an 8-year-old girl. Over the next 8 days, communications by email, text message and telephone became sexually explicit during which time Ferrante expressed a strong interest to engage in sexual activity with the 8-year-old female.
According to court documents, it is alleged that on January 12, 2017, Ferrante and the State Police detective agreed to meet in person in Warwick, at which time Ferrante believed the 8-year-old girl would be made available to him to engage in sexual activity. Upon meeting at an agreed upon location, Ferrante was arrested and charged with two counts of solicitation. He was released on bail following his arraignment in Rhode Island state court.
A federal criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. Attempting to persuade, induce, entice or coerce an individual who has not attained the age of 18 years to engage in sexual activity in punishable by statutory penalties of 10 years to life imprisonment followed by up to lifetime supervised release, and a fine of $250,000.
The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
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Duval County Man Pleads Guilty to Aggravated Identity TheftRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Jefferage Capice White (55, Jacksonville) has pleaded guilty to aggravated identity theft. He faces a mandatory minimum of two years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, in December 2015, White entered a Navy Federal Credit Union in Jacksonville and represented himself as J.F., an account holder at the credit union. He approached a teller, presented a counterfeit Florida driver license containing the personal identification information of J.F., and requested to make a cash withdrawal from J.F.’s account. Based on White’s suspicious behavior, the credit union employees notified the Jacksonville Sheriff’s Office (JSO). When approached by a JSO officer, White fled and was eventually apprehended after a physical struggle.
In a related case, Carlis Edward Williams (53, Jacksonville) pleaded guilty to aggravated identity theft on December 1, 2016. He faces a mandatory minimum of two years in federal prison for the aggravated identity theft charge. His sentencing is set for March 8, 2017.
These prosecutions are part of a broader investigation by law enforcement involving the manufacturing of counterfeit identification documents and identity theft.
This case was investigated by the Jacksonville Sheriff’s Office and the United States Secret Service - Jacksonville Field Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
District Man Sentenced to Seven Years in Prison for Shooting Man in Back on Northwest Washington StreetRead the Press Release
WASHINGTON – David Gore, 36, of Washington, D.C., was sentenced today to seven years in prison for firing 11 gunshots at a group of people in Northwest Washington, hitting one victim in the back, U.S. Attorney Channing D. Phillips announced.
Gore pled guilty in September 2016, in the Superior Court of the District of Columbia, to assault with intent to kill and carrying a pistol without a license. He was sentenced by the Honorable José M. Lopez. After his prison term, he will be placed on three years of supervised release.
According to the government’s evidence, on May 16, 2016, at approximately 2:40 p.m., Gore exited a car in the 3700 block of New Hampshire Avenue NW and began shooting at a group of people standing nearby. After he finished firing on the group, Gore returned to the vehicle and left the scene. One man, who tried to run away, was shot in the back. He was treated at a hospital for his wounds. Remarkably, no one else was hit. According to the government’s evidence, Gore launched the attack without any provocation. Gore was arrested June 10, 2016.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the assistance provided by the Crime Scene Sciences Unit of the District of Columbia Department of Forensic Sciences as well as Sorensen Forensics. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Criminal Investigator Nelson Rhone, Victim/Witness Advocate Jennifer Allen, and Assistant U.S. Attorneys Michael J. Roman and Josiah Bournes, who investigated and prosecuted the case.
District Man Sentenced to 22 Years in Prison for Slaying of Co-Worker in Northeast WashingtonRead the Press Release
WASHINGTON – Malik Bilal, 41 of Washington, D.C., was sentenced today to 22 years in prison on charges stemming from the murder of a co-worker during a confrontation that took place in broad daylight in July 2014, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Interim Chief of the Metropolitan Police Department (MPD).
Bilal was found guilty in November 2016, following a trial in the Superior Court of the District of Columbia, of second-degree murder while armed and carrying a dangerous weapon. He was sentenced by the Honorable Milton C. Lee. Upon completion of his prison term, Bilal will be placed on five years of supervised release.
According to the government’s evidence, on July 6, 2014, Bilal and the victim, Alonzo Gregory Beasley, 52, were assigned to a construction work crew in Northeast Washington. Throughout the day, the two men verbally argued over how to use the tools and the construction job itself. In mid-afternoon, Bilal got into his white pick-up truck and drove with two other workers to the work crew manager’s apartment complex at 22d and I Streets NE, while Mr. Beasley followed in another car. When they arrived, Bilal stayed in his truck while the rest of the crew sat across the street to wait for the manager.
At one point, according to the government’s evidence, Mr. Beasley walked over to Bilal’s truck to grab a beverage from the truck bed. Bilal got out and yelled at Mr. Beasley not to touch his truck. He then produced a knife and began stabbing Mr. Beasley, who was unarmed. Mr. Beasley tried to get away, repeatedly telling Bilal that he was sorry and “Don’t do this.” However, Bilal pursued Mr. Beasley and stabbed him multiple times before finally plunging the knife into Mr. Beasley’s neck. Bilal then walked back to his truck and drove away. Bystanders called 911 and the Metropolitan Police Department (MPD) and the District of Columbia Department of Fire and Emergency Medical Services immediately responded. Mr. Beasley was taken to a hospital, where he died soon afterward.
That evening, Bilal went to his neighborhood and parked his truck several blocks away from where he lived. Bilal shaved his head and beard, gathered a bag of clothes, and walked to his girlfriend’s house, where he spent the night. The next day, Bilal went back to his house to get more of his belongings and saw that his truck was gone. Bilal called 911 to report that his truck was stolen and that he last saw it on July 4th. However, seemingly unbeknownst to Bilal, MPD homicide detectives found the truck the night before, obtained a search warrant, and towed the truck to the District of Columbia Department of Forensics Sciences garage. Mr. Beasley’s DNA subsequently was found on the driver’s door armrest inside of the truck. The murder weapon was never found. Bilal was arrested on July 8, 2014, and has been in custody ever since.
In announcing the sentence, U.S. Attorney Phillips and Interim Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the Forensic Science Laboratory and the Crime Scene Sciences Divisions of the District of Columbia Department of Forensic Sciences, as well as Bode Cellmark Forensics and Signature Science, LLC. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney George A. Pace, who investigated the case; Victim/Witness Advocate Marcia Rinker; Paralegal Specialists Meridith McGarrity and Stephanie Gilbert; former Supervisory Victim/Witness Program Specialist Michael Hailey; Supervisory Victim/Witness Services Coordinator David Foster; Investigative Analyst Zachary McMenamin, and Litigation Technology Specialist Leif Hickling.
Finally, they commended the work of Assistant U.S. Attorneys Glenn Kirschner and Katherine Earnest, who investigated and prosecuted the case.
District Man Found Guity of Robbing, Assaulting Elderly Couple as They Were Walking in Northwest WashingtonRead the Press Release
WASHINGTON – Milton Hood, 51, of Washington, D.C., has been found guilty by a jury on charges of robbing and assaulting a senior citizen couple in Northwest Washington, U.S. Attorney Channing D. Phillips announced today
Hood was found guilty on Jan. 25, 2017, of one count of robbery of a senior citizen, and one count of assault with intent to commit robbery of a senior citizen. The verdict followed a two-week trial in the Superior Court of the District of Columbia. The Honorable Kimberley S. Knowles scheduled sentencing for April 7, 2017.
According to the government’s evidence at trial, at about 11:15 a.m. on May 29, 2015, a 75-year-old woman and her 81-year-old husband were walking south on 23rd Street NW, between Q and P Streets. Hood attacked the husband, knocking him to the ground, and forcibly removed his wallet from his back pocket. The female victim, afraid for her husband’s life, began striking Hood with her cane, hitting him repeatedly on the head and neck. Hood turned on her, striking back and knocking her head to the ground. Hood tried to grab her purse, but the female victim, bleeding from her head and her knees, did not let go. People in two cars driving by stopped to help the victims, and the defendant ran off. Based on descriptions provided by the victims and eyewitnesses, Hood was spotted by the Metropolitan Police Department (MPD) two hours later wearing the exact same clothing as he was at the time of the attack. The victim’s cane was swabbed for DNA, and subsequent testing revealed the presence of Hood’s DNA on it.
In announcing the guilty verdict, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Assistant U.S. Attorneys Sharon Donovan, Michael Spence, Chrisellen Kolb, and Stephen Rickard ; Paralegal Specialists Crystal Waddy, Stephanie Siegerist, Stephanie Gilbert, Donville Drummond, Lynda Randolph, Debra McPherson, and Benjamin Kagan-Guthrie; Litigation Technology Specialists Claudia Gutierrez, Jeanie Latimore-Brown, and Paul Howell, and Jennifer Clark, Katina Adams-Washington and LaJune Thames, of the Victim Witness Assistance Unit. Finally, he commended the work of Assistant U.S. Attorneys Gilead Light, Michael Romano, and Allessandra Stewart, who investigated and prosecuted the case.
Des Plaines Man Indicted, Charged with Possession of Heroin with Intent to DistributeRead the Press Release
PEORIA, Ill. – A Des Plaines, Ill., man, Arriba W. Lewis, 43, was arraigned in federal court today, after a grand jury returned an indictment that charges him with possession of heroin with intent to distribute. The indictment alleges that Lewis possessed with intent to distribute approximately 200 grams of heroin on Jan. 12, 2017.
Lewis appeared before U.S. Magistrate Judge Jonathan E. Hawley, who had previously ordered that Lewis remain detained in the custody of the U.S. Marshals Service pending trial. Lewis was previously charged in a criminal complaint filed on Jan. 13, 2017. According to the affidavit filed in support of the complaint, Illinois State Police stopped Lewis on Jan. 12, for a traffic violation on Interstate 55 in McLean County. Trial has been scheduled for April 3, 2017, before Chief U.S. District Judge James E. Shadid.
The investigation was conducted by the Illinois State Police and the Drug Enforcement Administration in cooperation with the McLean County State’s Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Adam C. Korn.
If convicted, the statutory penalty for the offense of distribution and possession with intent to distribute more than 100 grams of heroin is no less than five years and up to 40 years in prison. If a defendant has previously been convicted of a felony drug offense, the statutory penalty is no less than ten years and up to life in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Cranston Resident Pleads Guilty to Trafficking Fentanyl Laced HeroinRead the Press Release
PROVIDENCE, R.I. – Michael Bermudez, a/k/a Michael J. Morales, 35, of Cranston, pleaded guilty in federal court in Providence today to trafficking heroin laced with fentanyl and trafficking cocaine, announced United States Attorney Peter F. Neronha, Cranston Police Chief Colonel Michael J. Winquist, and Michael J. Ferguson, Special Agent in Charge of the DEA.
Appearing before U.S. District Court John J. McConnell, Jr., Bermudez pleaded guilty as charged in a federal indictment to one count each of possession of 100 grams or more of heroin with the intent to distribute and possession of cocaine with the intent to distribute.
According to court documents and information presented to the court, on October 6, 2016, Cranston Police Department detectives, with the assistance of agents from the Rhode Island DEA Drug Task Force, executed a court authorized search of Bermudez’s residence. The search resulted in the seizure of nearly 140 grams of heroin laced with fentanyl packed into approximately 6,600 packets, and approximately 153 grams of cocaine. The search warrant was authorized by the court during an investigation into Bermudez’s drug trafficking activities, which included multiple controlled purchases of heroin from Bermudez.
United States Attorney Peter F. Neronha commented, “This criminal conduct of this defendant, and others like him, is what is causing our opioid public health crisis. Fentanyl is a killer, plain and simple. Every one of those 6,600 fentanyl laced heroin packets was a potential fatal dose. Fortunately, they were intercepted before they reached unsuspecting heroin users. Cases like this won’t end our opioid overdose crisis, because prevention and treatment are also critically necessary. But they are a vital part of the solution, and thus need to be among our highest law enforcement priorities.”
According to court records, Bermudez was convicted in U.S. District Court in 2009 on fraud charges. At the time of his arrest in this matter, Bermudez was on state probation, having been convicted in Rhode Island Superior Court in September 2015 on drug trafficking charges.
Bermudez, who has been detained in federal custody since his arrest on October 6, 2016, is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on April 12, 2017.
Possession of 100 grams or more of heroin with the intent to distribute is punishable by statutory penalties of 40 years imprisonment, with a mandatory minimum term of 5 years imprisonment; a fine of up to $ 5,000,000; and a term of supervised release of up to life. Possession of cocaine with the intent to distribute is punishable by statutory penalties of up to 20 years imprisonment; a fine of $1,000,000; a term of supervised release of up to life, with a mandatory term of 3 years.
The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
Cedar Rapids Man Charged with Receipt and Possession of Child PornographyRead the Press Release
Donald Etheredge, age 51, of Cedar Rapids, Iowa, has been charged with receipt and possession of child pornography. The charges are contained in an Indictment unsealed today in United States District Court in Cedar Rapids.
The Indictment alleges that, between 2013 and 2015, Etheredge received child pornography and possessed it on a computer and a flash drive. The Indictment also alleges that Etheredge was convicted of shipment and transportation of child pornography in the Northern District of Iowa in 2004.
If convicted, Etheredge faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 80 years’ imprisonment, a $750,000 fine, $15,300 in special assessments, and at least five years and up to life on supervised release following any imprisonment.
Etheredge appeared today in federal court in Cedar Rapids and was held without bond. Etheredge’s next appearance for trial is set for March 27, 2017.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Iowa Division of Criminal Investigation and the Cedar Rapids Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 17-2.
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Buffalo Men Plead Guilty in Drug ConspiracyRead 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 Steven Martinez, 51, of Buffalo, NY, pleaded guilty to possession with intent to distribute more than 100 grams of heroin before U.S. District Judge Lawrence J. Vilardo. In addition, Jeffrey Coleman, 47, also of buffalo, pleaded guilty to conspiracy to possess with intent to distribute more than 100 grams of heroin. Both charges carry a mandatory minimum penalty of five years in prison, a maximum of 40 years in prison and a $5,000,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that Coleman was the courier of a heroin distribution conspiracy which brought heroin to Buffalo from New York City. Coleman was stopped on February 26, 2014, and found in possession of more than $65,000 in cash which was payment for the delivery of heroin. Within the currency was a note, written and signed by Martinez which served as a receipt for the delivery and an order for another delivery in the future. Martinez was also stopped and found in possession of more than $2000 and a small quantity of heroin.
Also on February 26, 2014, law enforcement officers executed a search warrant at a residence on West Delavan Avenue in Buffalo. During the search, officers recovered more than 100 grams of heroin, drug packaging paraphernalia, and $4,000 in cash.
The pleas are the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Coleman is scheduled to be sentenced on May 11, 2017, at 2:00 p.m.; Martinez is due to be sentenced on May 15, 2017, at 10:00 a.m., both before Judge Vilardo.
Buffalo Man Pleads Guilty to Conspiracy to Distribute MollyRead 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 Joshua Castro, 31, of Buffalo, NY, pleaded guilty to conspiracy to distribute controlled substances before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of 20 years in prison and a fine of $1,000,000.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that between February 2015 and January 28, 2016, the defendant conspired with others to possess and distribute “Molly,” a Scheduled I controlled substance. Castro sold “Molly” on three separate occasions (February 5, February 18, and March 25, 2015) to a confidential source.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly and the Border Enforcement Security Taskforce which includes the Ontario Provincial Police, Niagara Regional Police, Peel Regional Police and Toronto Police Services.
Sentencing is scheduled for April 20, 2017, at 10:30 a.m. before Judge Geraci.
Buffalo Man Indicted on Charges of Assaulting Federal Officers and Damaging Government PropertyRead 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 a federal grand jury has returned an indictment charging Kevin Allen, Jr, of Buffalo, NY, with assaulting federal officers and injuring government property. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that according to the indictment and a previously filed complaint, on November 1, 2016, the defendant, a fugitive, was driving a vehicle on Kilhoffer Street in Buffalo when two United States Deputy Marshals attempted to pull the vehicle over. Rather than comply, Allen rammed into the two vehicles being driven by the Deputy Marshals. The Marshals were not injured but the vehicles sustained extensive damage.
The indictment is the result of an investigation by the U.S. Marshals Service, under the direction of Marshal Charles Salina.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Binghamton Man Sentenced for Sex Trafficking and Prostitution of MinorsRead the Press Release
BINGHAMTON, NEW YORK - Antonio Ballard, 26, of Binghamton, New York, was sentenced to serve 210 months in federal prison to be followed by a twenty (20) year term of supervised release, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent-in-Charge of the Albany Division of the Federal Bureau of Investigation (FBI). Ballard will also be required to register as a sex offender once he has completed his federal prison term. Today’s sentence was in connection with Ballard’s conviction after trial in March of 2016 on eight (8) counts relating to operating a sex trafficking and prostitution business involving three minor girls.
The evidence at trial showed that Ballard, from August of 2014 through December of 2014, in Broome County, New York, knowingly persuaded, used, recruited, enticed, harbored, transported, provided, obtained, and maintained three minor girls for the purpose of engaging in commercial sex acts and prostitution with men. Ballard benefitted from prostituting these minors by receiving 50% of the proceeds, for which he provided physical security and an apartment where the minors met with clients. Ballard also photographed the three minor girls and assisted in posting advertisements on Backpage.com, an internet advertisement site.
The case was investigated by the FBI, New York State Police, and the Binghamton Police Department and was prosecuted by Assistant U.S. Attorney Miroslav Lovric.
This case was prosecuted 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 about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Arnoldo Rueda-Medina, aka “La Minsa,” Faces Federal Charges in Dallas for Role in Cocaine and Methamphetamine Distribution and Money Laundering ConspiraciesRead the Press Release
DALLAS — Arnoldo Rueda-Medina, known by several aliases including “La Minsa,” arrived in the United States today from Mexico to face criminal charges in connection with his top leadership roles in the “La Familia-Michoacan” Mexican drug cartel, announced U.S. Attorney John Parker of the Northern District of Texas and Special Agent in Charge Clyde E. Shelley, Jr. of the Drug Enforcement Administration’s Dallas Field Division.
Rueda-Medina, 47, made his initial appearance in federal court in Dallas this afternoon before U.S. Magistrate Judge David L. Horan on charges outlined in a second superseding indictment returned by a federal grand jury in the Northern District of Texas in September 2010. That indictment charges Rueda-Medina with one count of conspiracy to possess with intent to distribute and distribution of methamphetamine and cocaine and one count of conspiracy to launder monetary instruments.
On February 25, 2010, the U.S. Department of the Treasury sanctioned Rueda-Medina under the Foreign Narcotics Kingpin Designation Act (Kingpin Act) for his involvement in drug trafficking. The Kingpin Act blocks all property and interests in property, subject to U.S. jurisdiction, owned or controlled by significant foreign narcotics traffickers, as identified by the President. The act also prohibits U.S. citizens and companies from doing any kind of business activity with Rueda-Medina, and it virtually froze all of his assets in the United States.
"This case and others like it around the country demonstrate that, when we work together with our law enforcement partners both here and in Mexico, we can bring cartel leadership to justice,” said U.S. Attorney Parker. “That’s the whole point of the OCDETF program and it certainly worked here.”
“The tireless efforts given to capture and extradite this individual by the men and women of the DEA, the U.S. Attorney’s Office of the Northern District of Texas, as well as our law enforcement partners throughout the DFW area and in Mexico, are countless,” said Special Agent in Charge Shelley.
The indictment alleges that from approximately September 2008 to October 21, 2009, in the Dallas Division of the Northern District of Texas, Rueda-Medina and 13 co-conspirators arranged for the acquisition of cocaine and methamphetamine from supply sources affiliated with the “La Familia-Michoacan” Mexican drug cartel, arranged to transport these multi-kilogram quantities of cocaine and methamphetamine from Michoacan, Mexico, and other locations to North Texas and elsewhere, and transported U.S. currency representing drug proceeds to Michoacan, Mexico, to pay for these cocaine and methamphetamine shipments.
The indictment further alleges that during the same time, Rueda-Medina and the 13 co-conspirators coordinated the delivery of drug proceeds, used the drug proceeds to rent residences in North Texas that were subsequently used to store both drugs and drug proceeds, and disposed of the drug proceeds in a manner and with the intent to promote or assist the conspiracy.
A federal indictment is an accusation by a federal grand jury, and it is a formal charging document notifying the defendant of the charges. All persons charged in an indictment are presumed innocent until proven guilty. If convicted on the drug conspiracy, Rueda-Medina faces a statutory sentence of not less than 10 years and up to life in federal prison and up to a $4 million fine. If convicted on the money laundering conspiracy, Rueda-Medina faces a maximum statutory sentence of 20 years in federal prison and a fine of not more than $500,000 or twice the value of the property involved in the transaction, whichever is greater.
The case was investigated by the Drug Enforcement Administration, the Dallas Police Department and the Garland Police Department; the U.S. Marshals Service, U.S. Customs and Border Protection and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations provided special assistance. Department of Justice’s Office of International Affairs also provided assistance in bringing the defendant to the United States to face charges.
The Justice Department extends its gratitude to the Government of Mexico for their extensive cooperation and assistance in securing the extradition of Rueda-Medina to the United States.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
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Armed Career Criminal Sentenced to Fifteen Years for Possessing A FirearmRead the Press Release
Orlando, Florida – U.S. District Judge G. Kendall Sharp has sentenced Patrick Willie Smith (41, Daytona Beach) to 15 years in federal prison for being a felon in possession of a firearm. The Court also ordered him to forfeit an FEG (.45-caliber) pistol and seven rounds of .45-caliber ammunition. Smith pleaded guilty on September 21, 2016.
According to the plea agreement, in January 2016, Smith possessed a loaded pistol. At the time of the incident, he had 13 previous felony convictions and was therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Daytona Beach Police Department. It was prosecuted by Assistant United States Attorney Emily C. L. Chang.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violent crime in communities.
Apalachin Man Sentenced for Receiving Child PornographyRead the Press Release
NEW YORK - Brandon Kie, 31, of Apalachin, New York, was sentenced today to serve sixty months (5 years) imprisonment and a term of fifteen (15) years of supervised release, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent-in-Charge of the Albany Division of the Federal Bureau of Investigation (FBI). Kie is also required to register as a sex offender following his release from federal prison. Kie pled guilty in September of 2016 to receiving child pornography via the internet and a computer.
In pleading guilty, Kie admitted that in 2014 he used a computer to connect to several child pornography web sites via the internet using peer-to-peer file sharing software programs. On numerous occasions, Kie received and downloaded more than 500 digital images and more than 12 videos that depicted minors engaged in sexually explicit conduct, some of which included sadistic and masochistic acts.
This case was investigated by the FBI, and was prosecuted by Assistant U.S. Attorney Miroslav Lovric.
This case was prosecuted 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 about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Anderson County Man Sentenced for Tax Fraud/Identity Theft SchemeRead the Press Release
TYLER, Texas – A 39-year-old Palestine, Texas man has been sentenced to federal prison for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Jefferson Kincade pleaded guilty on Aug. 23, 2016 to fraudulent or false statements in a tax return, theft or conversion of money, and aggravated identity theft. Kincade was sentenced to 102 months in federal prison on Jan. 26, 2017, by U.S. District Judge Ron Clark. Kincade also agreed to a cash forfeiture of $110,919.54
According to information presented in court, Kincade prepared tax returns for individuals at a tax preparation business, EZ Tax, in Palestine, and devised a scheme to prepare false tax returns, steal clients' refunds, and use the clients' and other individuals' identities to accomplish the theft. Kincade's made false statements and representations in the tax returns that he submitted in order to increase the amount of tax refunds to which the taxpayer would be entitled. Kincade was able to intercept the government tax refunds for his own benefit by printing the refund checks, not giving them to his clients, and then cashing them with the assistance of two individuals who were not associated with EZ Tax.
“The U.S. Attorney’s Office is committed to vigorous enforcement of the internal revenue laws and especially those involving tax preparers such as the defendant in this case who included false statements in returns that he prepared, and then intercepted the inflated refunds,” said Acting U.S. Attorney Brit Featherston. “These actions caused significant problems for the actual taxpayers, many of whom found that they owed money back to the IRS because of the refund overpayments. IRS-Criminal Investigation worked diligently to investigate the actions of the defendant, determine the extent of his complex fraud activity, and bring him to justice.”
"The sentence handed down yesterday highlights the seriousness of the defendant's conduct" said Alfredo Vazquez, Assistant Special Agent in Charge of the Dallas Field Office of IRS, Criminal Investigation. "We will remain vigilant in identifying and investigating those who seek to defraud the American Taxpayers by filing false tax returns. Mr. Kincade defrauded his clients and the IRS for his own personal benefit; and yesterday he was held accountable for his criminal actions."
This case was investigated by the Internal Revenue Service Criminal Investigations and was prosecuted by Assistant U.S. Attorney Tom Gibson.
Albany Man Sentenced to 36 Months for Oxycodone ConspiracyRead the Press Release
ALBANY, NEW YORK – Salvatore Commisso, age 33, of Albany, New York, was sentenced today to serve 36 months in prison, to be followed by 3 years of supervised release, for conspiring to distribute the controlled substance oxycodone.
The announcement was made by U.S. Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA).
U.S. District Judge Mae A. D’Agostino also ordered Commisso to forfeit $16,523, and to pay a fine of $2,000.
As part of his September 26, 2016 guilty plea, Commisso admitted that from at least December 2015 through February 2016, he obtained oxycodone tablets from a co-conspirator for resale in the Northern District of New York.
This case was investigated by the DEA and was prosecuted by Assistant U.S. Attorney Jeffrey C. Coffman.
72-Year-Old Sentenced on Prescription and Heroin Drug Distribution, Witness Tampering, and Health Care Fraud ChargesRead the Press Release
Roanoke, VIRGINIA – A Roanoke man, who used a drug rehabilitation program in the Roanoke City jail to obtain sex partners in exchange for drugs, was sentenced today on federal drug distribution, witness tampering, and health care fraud charges, Acting United States Attorney Rick A. Mountcastle announced.
Gordon Reaves Parker, 72, of Roanoke, Virginia, previously waived his right to be indicted and pled guilty to one count of conspiracy to distribute controlled substances, one count of tampering with a witness and one count of health care fraud. Today in District Court, Parker was sentenced to 60 months in federal prison and 3 years of supervised release thereafter. In addition, Parker was ordered to pay a fine of $20,000, restitution to Medicare in the amount of $1,262 and $275,000 immediate payment in lieu of forfeiture.
“Putting a stop to predators like Parker, who exploit vulnerable victims and who corruptly use programs designed to help those victims, is one of our office’s priorities. As a result of this case, Parker can no longer abuse vulnerable, drug-addicted young women through his corrupt manipulation of the Alpha drug program,” Acting United States Attorney Rick A. Mountcastle said today. “I commend the Virginia State Police, the Drug Enforcement Administration Tactical Diversion Squad, and AUSAs Waering and Day for their diligence and hard work in bringing Parker to justice.”
According to evidence presented at previous hearings by Assistant United States Attorney Jennie L. M. Waering, Parker used the Alpha drug rehabilitation program in the Roanoke County Jail as a mechanism for obtaining sex partners in exchange for drugs. Parker initially met victim HW, then 28, when she was residing at the Roanoke Rescue Mission. Parker offered HW drugs in exchange for sex. HW was subsequently arrested and placed in the Roanoke City Jail in the Alpha drug intervention program. Parker kept in touch with HW by phone and put significant amounts of money in HW’s jail account.
Parker has admitted to asking HW to introduce him to other young Alpha drug program inmates who might be released from jail before HW. HW introduced Parker to JM, age 20 at the time. JM, in turn, introduced Parker to BH, age 25 at the time. JM and BH talked to Parker extensively on the telephone from jail. Parker put large amounts of money on the jail accounts of JM and BH. JM and BH subsequently introduced Parker to several other Alpha drug program inmates.
Evidence presented previously showed that Parker eventually made contact with at least 11 women, between the ages of 18-27, many of whom he met while they were in jail in the Alpha drug program. Parker talked extensively to many of the women on the phone in conversations recorded by the jail and put money on their jail accounts. Parker promised these young women a variety of monetary gifts and promised to pay fines, child support and other expenses. Parker discussed sexual activities with them on the phone, describing what they would do together when they were released. When the women were released from jail, these women visited him at his Wipledale Avenue home and at his Rockbridge Court home, where he offered the women drugs (hydromorphone, oxycodone, morphine, oxymorphone, hydrocodone and heroin) and large monetary gifts in exchange for sex. This activity was repeated with more than ten drug addicted or recovering women and the drugs given to the women were obtained from prescriptions written for his disabled wife by a pain management physician.
In addition, Parker previously admitted that he asked a medical technician that cared for his wife and was in charge of distributing her pain medication, to lie to the federal grand jury to account for his use of the stockpiled controlled substances that were prescribed to his wife.
The investigation of the case was initiated by the Virginia State Police Bureau of Criminal Investigation and jointly conducted with the Drug Enforcement Administration Tactical Diversion Squad. Assistant United States Attorneys Jennie L. M. Waering and Charlene R. Day prosecuted the case for the United States.
13 Individuals Charged with Drug TraffickingRead the Press Release
SAN JUAN, Puerto Rico – On January 25, 2017, a federal grand jury in the District of Puerto Rico returned an indictment against 13 defendants charged with conspiracy to distribute controlled substances in the municipality of San Sebastián, PR, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The FBI and the Puerto Rico Police Department (PRPD), Aguadilla Strike Force Unit, are in charge of the investigation.
The indictment alleges that beginning in or about June 2012, the organization distributed heroin, cocaine, crack, and marihuana, at the San Andrés Public Housing Project in San Sebastián, all for significant financial gain and profit.
The thirteen defendants acted in different roles in order to further the goals of their organization, to wit: leader who directed and supervised enforcers, runners, sellers, drug processors, and facilitators. Seven defendants are facing one charge of possession of firearms in furtherance of a drug trafficking crime.
The defendants are: Juan O. Vélez-Miranda, a.k.a. “Coski”; José Moreno-Díaz, a.k.a “Sicario”; Michael Rojas-Montalvo, a.k.a. “Fora”; Gabriel A. Ramos-Alers, a.k.a. “Gallo”; Alberto Cabrero-Cabrera; Jean Pierre De La Rosa-Pratts, a.k.a. “Jampi”; Ángel Rivera-Rivera, a.k.a. “Tato El Gordo”; Abisael Rivera-Rivera, a.k.a. “Avispa”; Gustavo A. Méndez-Báez, a.k.a. “Tavo”; Pablo E. Ríos-Cruz, a.k.a. “Kike”; Juan C. Arvelo-López, a.k.a. “Choky”; Kevin Molina-Noriega, a.k.a. “Baby Love”; and Carlos Bayrón-Ramos, a.k.a. “Harry”.
“Drug trafficking organizations must be aggressively attacked and dismantled at every level,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “The result of this operation is nothing short of significant and it underscores law enforcement’s main goal: to keep drugs out of our neighborhoods.”
Assistant U.S. Attorney Vanessa Bonhomme is in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Thursday 26 January 2017
‘Wife’ of Man Facing Charges of Conspiring with Shooter in San Bernardino Attack Pleads Guilty to Entering into Sham MarriageRead the Press Release
RIVERSIDE, California – Mariyah Chernykh today pleaded guilty to federal immigration fraud charges and admitted entering into a sham marriage with Enrique Marquez Jr., who is facing charges of conspiring with the male shooter in the December 2, 2015 attack in San Bernardino.
Chernykh, 26, of Ontario, pleaded guilty this afternoon before United States District Judge Jesus Bernal to charges of conspiracy, perjury, and false statements.
As a result of her guilty pleas, Chernykh faces a statutory maximum sentence of 20 years in federal prison and a fine of up to $1 million. Judge Bernal is scheduled to sentence the defendant on November 20, 2017.
Chernykh is the second person to plead guilty in the immigration fraud scheme. On January 10, Syed Raheel Farook, the brother of deceased San Bernardino attacker Syed Rizwan Farook, pleaded guilty to being part of the conspiracy.
The third defendant in the case – Tatiana Farook, the wife of Syed Raheel Farook – still faces charges contained in a grand jury indictment and is scheduled to go on trial on March 28.
The indictment alleges that, beginning in late 2014 and continuing through February 2016, the three defendants conspired with Marquez to obtain immigration benefits for Chernykh by arranging and carrying out a fraudulent marriage between Chernykh, a Russian citizen, and Marquez, a United States citizen. In court today, Chernykh admitted that she made false statements in immigration documents, that she paid Marquez for his participation in the scheme, and that she made additional material false statements during interviews with FBI special agents.
Marquez was charged in a separate federal indictment with participating in the marriage fraud scheme, as well as plotting with San Bernardino attacker Syed Rizwan Farook in 2011 and 2012 to carry out attacks in the Inland Empire. Marquez is also charged with supplying two firearms that Syed Rizwan Farook and his wife, Tashfin Malik, later used in the San Bernardino attack and during the shootout with law enforcement that ended in the couple’s death. Marquez is scheduled to go on trial before Judge Bernal on September 26.
“Two of the four defendants charged as a result of the investigation into the December 2 San Bernardino terrorist attack have now been convicted,” said United States Attorney Eileen M. Decker. “These convictions signify important progress in the ongoing investigation and prosecution of all those connected to the attack. Today’s guilty pleas are further proof that law enforcement has doggedly investigated all leads stemming from the tragic attack in San Bernardino as we continue our efforts to bring justice to the community.”
“The criminal activity by the defendants who entered into phony marriages was uncovered following the deadly terror attack that occurred in December 2015 in San Bernardino,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Mariyah Chernykh ultimately admitted to lying to FBI Agents who were urgently seeking answers immediately following the attack to ensure that there were no additional threats to public safety. The defendant’s admission to violating U.S. immigration laws and defrauding the United States government is a welcome step as we continue our investigation of the attack which left 14 dead and several others seriously wounded.”
“Today’s guilty plea and the broader circumstances of this case are a powerful reminder about the serious consequences that can result when people lie or use false information to obtain an immigration benefit,” said Joseph Macias, special agent in charge for HSI Los Angeles. “Not only do such actions corrupt the integrity of our nation’s legal immigration system, but they can directly or indirectly put the safety of the American people at risk.”
The investigation in this case was conducted by the Joint Terrorism Task Force in Riverside, which includes the Federal Bureau of Investigation; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the San Bernardino Police Department; the San Bernardino County Sheriff’s Department; and the United States Attorney’s Office.
These cases are being prosecuted by Assistant United States Attorneys Jay H. Robinson, Melanie Sartoris and Deirdre Z. Eliot of the Terrorism and Export Crimes Section with substantial assistance from Trial Attorney C. Alexandria Bogle of the Justice Department’s Counterterrorism Section.
Wethersfield Man Pleads Guilty to Heroin Distribution Charge Stemming from 19-Year-Old's Overdose DeathRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CARLOS CARRILLO, 19, of Wethersfield, waived his right to be indicted and pleaded guilty today in Hartford federal court to one count of distribution of heroin.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on July 16, 2016, Wethersfield Police and emergency medical personnel responded to a residence in Wethersfield and found an unresponsive 19-year-old female on a bed in a bedroom of the home. The victim was pronounced deceased at the scene. Investigators located a torn wax paper packet under the female’s body and another packet on the nightstand. Subsequent laboratory testing of the contents of the packets confirmed the presence of heroin.
The investigation revealed that earlier on July 16, 2016, the victim and a juvenile friend met with CARRILLO in the parking lot of a Wethersfield motel and purchased two bags of heroin from CARRILLO for 10 dollars.
CARRILLO was arrested on a federal criminal complaint on August 2, 2016.
CARRILLO is scheduled to be sentenced by Senior U.S. District Judge Alfred V. Covello on April 20, 2017, at which time he faces a maximum term of imprisonment of 20 years.
This matter is being investigated by the Drug Enforcement Administration and the Wethersfield Police Department. The case is being prosecuted by Assistant U.S. Attorneys Jennifer P. Laraia and Michael E. Runowicz.
West Virginia business owners sentenced to prison for failing to pay employment taxesRead the Press Release
WASHINGTON – Two Wayne County, West Virginia business owners were sentenced to prison today for failing to pay over employment taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Carol Casto for the Southern District of West Virginia.
Michael Taylor, 48, and his wife, Jeanette Taylor, 44, were sentenced to serve 21 months and 27 months in prison, respectively, by Chief U.S. District Judge Robert C. Chambers of the Southern District of West Virginia.
According to documents filed with the court, from 2000 through 2010, the Taylors owned and operated a construction business in Wayne, West Virginia, that transported steel and sold gravel and concrete throughout West Virginia and Kentucky. The Taylors changed the name of the business several times, though the operations of the business remained the same. From 1999 to 2004, the business was operated as Taylor Contracting & Taylor Ready-Mix LLC. In 2004, the name changed to Taylor Contracting/Taylor Ready-Mix LLC. In 2010, the name changed a third time to Bluegrass Aggregates.
Both Michael Taylor and Jeanette Taylor were responsible for collecting, accounting for, and paying over to the Internal Revenue Service (IRS) federal income taxes and social security and Medicare taxes that were withheld from the wages of their employees. From July 2007 through 2010, the Taylors withheld over $850,000 from their employees’ paychecks. Instead of paying over the withheld taxes to the IRS, the Taylors used the funds to purchase property and finance their horse farm. The Taylors also failed to pay over $490,000 in employment taxes for their prior business. The total tax loss for the Taylors’ conduct is $1.4 million.
On Oct. 18, 2016, Michael Taylor pleaded guilty to one count of conspiracy to defraud the United States for failing to fully pay over payroll taxes from mid-2007 through 2010, and Jeanette Taylor pleaded guilty to one count of failing to pay over payroll taxes for the last quarter of 2009.
In addition to the term of prison imposed, Michael Taylor was ordered to serve three years of supervised release and to pay $1,440,130 in restitution to the IRS. Jeanette Taylor was ordered to serve three years of supervised release and to pay $766,273 jointly and severally with Michael Taylor to the IRS.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Casto commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Mara Strier and Alexander Effendi of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
West Virginia Business Owners Sentenced to Prison for Failing to Pay Employment TaxesRead the Press Release
Two Wayne County, West Virginia business owners were sentenced to prison today for failing to pay over employment taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Carol Casto for the Southern District of West Virginia.
Michael Taylor, 48, and his wife, Jeanette Taylor, 44, were sentenced to serve 21 months and 27 months in prison, respectively, by Chief U.S. District Judge Robert C. Chambers of the Southern District of West Virginia.
According to documents filed with the court, from 2000 through 2010, the Taylors owned and operated a construction business in Wayne, West Virginia, that transported steel and sold gravel and concrete throughout West Virginia and Kentucky. The Taylors changed the name of the business several times, though the operations of the business remained the same. From 1999 to 2004, the business was operated as Taylor Contracting & Taylor Ready-Mix LLC. In 2004, the name changed to Taylor Contracting/Taylor Ready-Mix LLC. In 2010, the name changed a third time to Bluegrass Aggregates.
Both Michael Taylor and Jeanette Taylor were responsible for collecting, accounting for, and paying over to the Internal Revenue Service (IRS) federal income taxes and social security and Medicare taxes that were withheld from the wages of their employees. From July 2007 through 2010, the Taylors withheld over $850,000 from their employees’ paychecks. Instead of paying over the withheld taxes to the IRS, the Taylors used the funds to purchase property and finance their horse farm. The Taylors also failed to pay over $490,000 in employment taxes for their prior business. The total tax loss for the Taylors’ conduct is $1.4 million.
On Oct. 18, 2016, Michael Taylor pleaded guilty to one count of conspiracy to defraud the United States for failing to fully pay over payroll taxes from mid-2007 through 2010, and Jeanette Taylor pleaded guilty to one count of failing to pay over payroll taxes for the last quarter of 2009.
In addition to the term of prison imposed, Michael Taylor was ordered to serve three years of supervised release and to pay $1,440,130 in restitution to the IRS. Jeanette Taylor was ordered to serve three years of supervised release and to pay $766,273 jointly and severally with Michael Taylor to the IRS.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Casto commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Mara Strier and Alexander Effendi of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Virginia Man Convicted at Trial of Abusing Corporate Position to Defraud Employer and United States GovernmentRead the Press Release
Yesterday, a West Palm Beach jury convicted Brian Charles Tolley, 41, of Bedford, Virginia, of wire fraud, identity theft, aggravated identity theft, possession of counterfeit government seals with the intent to defraud, money laundering, making and subscribing false federal income tax returns, and failing to file federal income tax returns.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Southeast Field Office, Brian A. Hauck, Special Agent-in-Charge, North Central Fraud Field Office, United States Army Criminal Investigation Command, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Special Agent in Charge Wendell W. Palmer, United States Air Force Office of Special Investigations, Procurement Fraud Detachment Southeast, made the announcement.
U.S. Attorney Wifredo Ferrer stated, “Brian Tolley lived a life of luxury by abusing his corporate leadership position to defraud his employer and the United States government. All corporations and our American taxpayers deserve to have their financial pockets protected against illicit fraud schemes. The U.S. Attorney’s Office and our fraud enforcement allies will continue to target for prosecution those who put their own self-interests above lawful business and tax filing practices.”
“Mr. Tolley, as the President and Chief Information Officer of Partsbase, a large marketplace for aviation components, illegally enriched himself by submitting fraudulent expense reports for DoD procurement data to his employer," said Special Agent in Charge John F. Khin, Southeast Field Office, DCIS. "Mr. Tolley embezzled $1.6 million through this scheme, using the money to purchase vehicles, property, and expensive first class vacations for his family. Today's verdict sends a strong message that DCIS agents will vigorously pursue those who defraud and corrupt Defense programs and bring them to justice.”
“The jury’s verdict should stand as a deterrent to those who would engage in fraud and corruption for personal gain, and is a testament to the thorough and professional effort of our investigative and prosecutorial team," said Special Agent in Charge Brian Hauck, of the U.S. Army Criminal Investigation Command's North Central Fraud Field Office. "We will diligently continue our efforts to pursue those engaged in criminal activity that impacts the integrity of U.S. Government and Army programs and resources within our purview.”
Kelly R. Jackson, Special Agent in Charge, IRS-CI stated, "We are pleased with the guilty verdict rendered against Brian Tolley. He perpetuated a fraud scheme against his employer, and then willfully omitted the stolen proceeds from his tax returns. As we are at the beginning of another tax filing season, it is important to remember that all income (whether legal or illegal) must be reported to the IRS. Knowingly omitting income from tax returns and failing to file tax returns are crimes, and IRS-CI Special Agents will continue to provide their financial expertise in the investigation of these cases."
According to the evidence presented at trial, Tolley was employed by PartsBase, Inc., which is located in Boca Raton, Florida, as Vice President from 2001 through 2001, as Chief Information Officer from 2001 through January 2014, and President from 2010 until January 2014. Between June 2007 and September 2013, Tolley submitted to PartsBase forged documentation from various branches of the U.S. military and other government agencies. These documents purported to acknowledge Tolley’s orders of procurement data on PartsBase’s behalf, and purported to be signed by real federal employees. Tolley then requested reimbursement from PartsBase for charges he had purportedly incurred from the government agencies. In total, PartsBase paid Tolley approximately $1.6 million in reimbursements based on this fraudulent scheme. Tolley used the money he procured from the fraudulent scheme to purchase a 2011 Buick Enclave, a 2011 Lincoln Navigator, real estate in Bedford, Virginia and other items. In addition, Tolley failed to report the proceeds of his fraud scheme as income on the federal income tax returns he filed for tax years 2007 through 2011. Tolley failed to file returns for tax years 2012 or 2013.
Tolley faces a maximum statutory sentence of 20 years’ imprisonment on each count of wire fraud; 15 years’ imprisonment on each count of identity theft; 5 years’ imprisonment on each count of possession of counterfeit government seals; 10 years’ imprisonment on each count of money laundering; 3 years’ imprisonment on each count of making and subscribing false federal income tax returns; and 1 year in prison on each count of failing to file federal income tax returns. Tolley also faces a mandatory consecutive sentence of 2 years’ imprisonment for the aggravated identity theft conviction(s).
Mr. Ferrer commended the investigative efforts of DCIS, the U.S. Army Criminal Investigation Command Major Procurement Fraud Unit, IRS-CI, and the Air Force Office of Special Investigations Procurement Fraud Unit. This case is being prosecuted by Assistant U.S. Attorneys Marc Osborne and Mark Dispoto.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Virginia Beach Man Gets 10 Years for Child PornographyRead the Press Release
NORFOLK, Va. – Brandon Matthew Florin, 34, of Virginia Beach, was sentenced today to 10 years in prison and a lifetime of supervised release for receipt of child pornography.
Florin pleaded guilty on Sept. 20, 2016. According to court documents, Florin was first identified sharing child pornography on a peer-to-peer network by the Bedford County Sheriff’s Office and the Virginia Beach Police Department. After the execution of a search warrant at Florin’s residence, law enforcement forensically analyzed Florin’s computer media and found well over 5,000 videos of child pornography and child erotica.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Justice Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington; and James A. Cervera, Chief of Virginia Beach Police, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-100.