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Thursday 26 January 2017
Gretna Woman Pleads Guilty to Theft of Federal FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DANIELLE RANDALL, 42, of Gretna, pled guilty today to Count One of an Indictment charging her with theft of federal funds.
According to court documents, on or about August 29, 2012, Hurricane Isaac struck southeastern Louisiana and shortly thereafter, the Federal Emergency Management Agency (“FEMA”) declared a major disaster in parts of southeastern Louisiana, including the Eastern District of Louisiana. To assist individuals in coping with damage to their personal property and primary residences, FEMA established an application process for temporary disaster assistance. RANDALL submitted an application for Disaster Assistance for damage to her apartment and personal property. After she received an initial disbursement of approximately $3,000, RANDALL continued to apply for housing assistance while falsely representing her rental address and housing expenses. In total, RANDALL’s false submissions to FEMA allowed her received four U.S. Treasury checks totaling $10, 953 to which she was not entitled.
RANDALL faces a maximum penalty of 10 years imprisonment, a maximum fine of $250,000 and a special assessment of $100. Additionally, RANDALL also faces mandatory restitution of at least $10,953. U.S. District Judge Carl J. Barbier set sentencing for May 4, 2017.
U.S. Attorney Polite praised the work of the Department of Homeland Security, Office of Inspector General in investigating this matter. Assistant U. S. Attorney Sharan E. Lieberman is in charge of the prosecution.
Grand Rapids Man to Spend Five Years in Prison for Trafficking FirearmsRead the Press Release
GRAND RAPIDS, MICHIGAN - Donte Timothy Bacon, 31, of Grand Rapids, was sentenced to 60 months’ imprisonment, Acting U.S. Attorney Andrew Birge announced today. In August, Bacon pled guilty to selling a firearm to a prohibited person and possession of a firearm with an obliterated serial number. Charles Lee Samuels, 28, earlier was sentenced to 18 months in prison for his lesser role in the crimes.
On five different occasions in August and September 2014, Bacon sold a firearm to a person who was not permitted to possess it under federal law. One of the firearms was sold with a high-capacity magazine. Two of those firearms had been purchased by Bacon and Samuels and were sold after Bacon removed the serial numbers. During the final transaction, Bacon and Samuels used a hand-grinder to remove the serial number at the time of sale.
In his final sentencing before retiring from the bench, U.S. District Judge Robert Holmes Bell observed the seriousness of trafficking firearms. Judge Bell ordered Bacon to serve three years of supervised release following his term of custody and expressed his hope that Bacon will return as a productive member to his community.
"The diversion of firearms for unlawful purposes or to those who cannot legally possess them endangers each and every member of our society," said Acting U.S. Attorney Birge. "The U.S. Attorney’s Office will prosecute those who willfully circumvent federal firearms laws designed to protect the public."
"Selling firearms to prohibited individuals contributes to the cycle of gun violence plaguing our neighborhoods," said Special Agent in Charge Robin Shoemaker of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. "ATF will continue to use all available resources to put a stop to illegal gun sales. Let this conviction stand as a warning to others willing to put profit before public safety."
The ATF conducted the investigation, with assistance from the Grand Rapids Police Department. Assistant U.S. Attorneys Justin M. Presant and Alexis M. Sanford prosecuted the case.
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Gainesville Pharmacy Technician Found Guilty of Attempted Online Enticement of A Minor and Pornography OffensesRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that a federal jury in Jacksonville has found Matthew Bryan Caniff (33, Gainesville) guilty of attempted online enticement of a minor child to engage in illegal sexual activity, online solicitation of child pornography, and attempted production of child pornography. On the attempted online enticement count, Caniff faces a mandatory minimum penalty of 10 years, up to life, in prison. He also faces a minimum of 15 years, up to 30 years’ imprisonment each on the solicitation and the attempted production charges. Prior to his arrest, Caniff had worked as a pharmacy technician at UF Health Shands Hospital in Gainesville. A sentencing hearing is scheduled for April 26, 2017.
According to testimony and evidence introduced during the trial, from March 31, 2016, through April 1, 2016, Caniff engaged in a series of text conversations over the Internet with a person he believed to be a 13-year-old child. Unbeknownst to Caniff, this "child" was actually an undercover FBI agent. During the course of these online conversations, Caniff discussed his desire to have sex with the “child” in detail. He also made several requests for the “child” to send him images engaging in sexually explicit conduct.
In the early morning hours of April 1, 2016, Caniff drove his vehicle from his residence in Gainesville to a residence in St. Johns County to meet the “child” for sex. He was arrested at the meeting location by St. Johns County Sheriff's deputies. A search of his person revealed that Caniff had brought a plastic bag containing several prescription pills that he had taken from UF Health Shands Hospital and had intended to share with the “child” during their planned sexual encounter.
This case was investigated by the St. Johns County Sheriff’s Office and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Four School Bus Company Owners Convicted for Bid Rigging and Mail Fraud Conspiracies Involving Puerto Rico Public School Bus ServicesRead the Press Release
Following a week-long trial, a federal jury in Puerto Rico convicted four individuals for participating in bid rigging and fraud conspiracies at an auction for public school bus transportation services in Puerto Rico’s Caguas municipality, the Department of Justice announced.
Gavino Rivera Herrera, Luciano Vega Martínez, Alfonso Gonzalez Nevarez and René Garay Rodríguez were found guilty today in the U.S. District Court of the District of Puerto Rico, in San Juan, for conspiring to rig bids and allocate the market for public school bus transportation contracts in the municipality of Caguas from approximately August 2013 until May 2015. Each individual was also found guilty of conspiracy to commit mail fraud and four counts of mail fraud for defrauding the municipality of Caguas to fraudulently obtain contracts for school bus transportation services. Sentencing is set for May 30, 2017.
“These defendants enriched themselves at the expense of Puerto Rico schools and have been held accountable by a jury of their peers,” said Acting Assistant Attorney General Brent Snyder of the Department of Justice’s Antitrust Division. “The division will continue to work with our law enforcement partners to ensure that school districts and other consumers benefit from competitive markets.”
“These convictions should serve as a reminder that Federal law enforcement agencies intend to vigorously prosecute those who manipulate government bidding processes to enrich themselves illegally,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico. “Federal law enforcement agencies will continue their ongoing efforts to investigate and prosecute these crimes, in order to promote and protect free and fair competition in the marketplace.”
“The defendants’ actions in depriving the citizens of Caguas of the right to choose what is best for the transportation of their schoolchildren, while also putting the defendants’ own financial interests above those of equally deserving Puerto Rican business owners, were particularly harmful during these difficult economic times.” said Special Agent in Charge Douglas A. Leff of the FBI’s San Juan Division. “The FBI is grateful for its partnership with the Antitrust Division and the U.S. Department of Education Office of Inspector General for their endless dedication to protecting the rights of all businesses, large and small, to compete in a fair marketplace.”
“Today's action demonstrated that these business owners willfully and intentionally sought to enrich themselves at the expense of students and taxpayers. That is unacceptable,” said Special Agent in Charge Yessyka Santana of the U.S. Department of Education Office of Inspector General’s Southeastern Regional Office. “The Office of Inspector General will continue to work with our law enforcement partners to aggressively pursue anyone who games the system for their own selfish purpose and protect these vital funds from this type of calculated plunder.”
According to evidence presented at trial, the four school bus company owners and other co-conspirators carried out the conspiracy by agreeing during meetings and communications to allocate contracts for transportation routes awarded by the municipality of Caguas. Trial evidence showed that the conspirators submitted fraudulent certifications and received award letters by certified mail in connection with their conspiracy to defraud the Municipality of Caguas.
The defendants were convicted of bid rigging and market allocation in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine. They were also convicted of one count of conspiracy to commit mail fraud and four counts of mail fraud. Each count of mail fraud, and conspiracy to commit mail fraud, carries a maximum sentence of 20 years in prison and a $250,000 fine.
Today’s conviction arose from a federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in Puerto Rico’s school bus transportation services industry. This investigation is being conducted by the Antitrust Division’s Washington Criminal I Section, the District of Puerto Rico U.S. Attorney’s Office, the FBI’s Puerto Rico Field Office and the U.S. Department of Education Office of Inspector General. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal I Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Puerto Rico Field Office at 787-754-6000.
Former Washington Area Man Sentenced to Prison for False Statements to a Financial InstitutionRead the Press Release
DAVENPORT, IA - On January 26, 2017, Thomas D. Gretter, 66, formerly of Washington, Iowa, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 13 months in federal prison for two counts of making a false statement to a financial institution, announced United States Attorney Kevin E. VanderSchel. The 13-month sentences were ordered to be served at the same time. Gretter was also ordered to serve five years of supervised release following his prison term, pay $200 to the Crime Victims’ Fund, and pay a total of $1,185,704.77 in restitution to Hills Bank & Trust Company (“Hills Bank”).
Gretter pleaded guilty to these charges on September 20, 2016. According to the plea agreement, on or about December 18, 2013, and October 6, 2014, Gretter obtained loans from Hills Bank. As security for each of these loans, Gretter pledged multiple items of collateral that he knew included false statements, and were unavailable to Hills Bank as security. Specifically, Gretter forged the signatures of multiple people on items of pledged collateral and provided those documents to Hills Bank in order to influence Hills Bank to make the loans.
This matter was investigated by the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by contacting Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected]
Former Shelby County Man Agrees to Plead Guilty to Illegally Accessing Women's Computers to Obtain Explicit PhotographsRead the Press Release
BIRMINGHAM – Federal prosecutors today charged a former Shelby County resident with illegally accessing e-mail and cloud storage accounts of at least 50 women to obtain personal data, including explicit photographs, announced acting U.S. Attorney Robert O. Posey and FBI Special Agent in Charge Roger C. Stanton.
In a one-count information filed in U.S. District Court, the U.S. Attorney’s Office charges KEVIN M. MALDONADO, 35, now living in North Carolina, with intentionally accessing the Gmail account of K.M., and the documents and images therein, without her permission in order to invade her privacy. Maldonado has agreed to plead guilty to the charge. Prosecutors filed a plea agreement, under seal, in conjunction with the charging document.
The information charges that Maldonado was able to get into the accounts of K.M. and the other women by obtaining their logins and passwords through a “phishing” attack, or by using open-source information or information obtained from the victims to determine their login and password information, or to answer security questions necessary to reset their login and password information. Maldonado knew some, but not all of the women victimized, according to the charges.
“Predators use the internet to target innocent victims,” Posey said. “We continue to work with our law enforcement partners to track and prosecute online criminals, but anyone who has an e-mail or other online account should protect themselves by protecting their login and password information. Don’t share it with friends or acquaintances or respond to unsolicited requests for that, or other personal information.”
“This case is a good reminder for all of us to maintain good computer security practices,” Stanton said. “Always be cautious of unsolicited telephone calls, e-mails and text messages, especially those asking you to supply account information. If you feel you have been a victim of a computer crime, please report it to the FBI’s Internet Crime Complaint center, www.IC3.gov.”
Maldonado phished for some of the victims’ login and password information by creating fictitious e-mail addresses and posing as an administrator for an e-mail provider, according to the information. Using the fictitious e-mail addresses, he sent the victims e-mails telling them their accounts may have been compromised and requesting their passwords.
Once the defendant accessed the victims’ accounts, he downloaded their data, including personal identifying information and personal photographs and videos, including images of the victims nude, partially nude, or engaged in sexual activity, according to the information.
In at least one instance, Maldonado responded to an e-mail from a victim’s contact, posing as the victim, and requested explicit photographs, according to the information. Maldonado organized and catalogued, by victim, the information he obtained through unauthorized computer access and stored the information on an external hard drive, the information charges.
The maximum penalty for unauthorized computer access in furtherance of an invasion of privacy is five years in prison and a $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney Erica Barnes is prosecuting.
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Former Inmate at FCI-Berlin Pleads Guilty to Drug PossessionRead the Press Release
CONCORD, N.H. – United States Attorney, Emily Gray Rice, announced today that Jason Ponder, 36, an inmate who had been at the Federal Correctional Institution in Berlin, New Hampshire, pleaded guilty today to possessing contraband in the prison. Ponder possessed a quantity of the synthetic cannabinoid known as AB-Fubinaca, a controlled substance. Ponder was transferred to another federal prison after the incident.
On March 12, 2016, Ponder was visited by his girlfriend and a minor child. While the three were in the prison’s Visitation Room, the girlfriend passed three small white packages to Ponder. The correctional staff monitoring the visitation room saw the activity and it was captured on the prison’s security cameras. Ponder’s visit was immediately terminated and the girlfriend surrendered two packages of material to prison officials. Laboratory analysis of the material confirmed it was a AB-Fubinaca.
Synthetic cannabinoids are green leafy materials that have been sprayed with chemicals. These products (commonly referred to as “spice” or “K2”) are often marketed as incense or potpourri. Although the products are often sold in packages labeled as “not for human consumption,” the products are smoked in order to obtain a high. The chemicals that are sprayed on the products to produce the high are often illegal controlled substances or analogues of illegal controlled substances. The ingestion of these types of illegal products has caused some users to experience a variety of medical side effects and has led to numerous hospitalizations.
A sentencing hearing has been scheduled for May 8, 2017 at 2:00 p.m. Ponder has agreed to serve an eight-month sentence that will be begin after he completes his current sentence.
The case was investigated by the Federal Bureau of Prisons and was prosecuted by AUSA Don Feith.
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Former Fort Leonard Wood Man Pleads Guilty to Sexually Abusing a ChildRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Brattleboro, Vt., man pleaded guilty in federal court today to aggravated sexual abuse of a 6-year-old child at Fort Leonard Wood, Mo.
Paul Kickery, Sr., 67, of Brattleboro, formerly of Fort Leonard Wood, pleaded guilty before U.S. District Judge M. Douglas Harpool to aggravated sexual abuse of a child.
According to court documents, the victim’s father contacted the Brattleboro, Vt., Police Department, to report that his daughter had been sexually assaulted by Kickery over the course of approximately a year. During the time of the sexual assaults, between July 1, 2013, and July 31, 2014, both Kickery and the then-6-year-old victim were residing in the same residence at the U.S. Army Military Base at Fort Leonard Wood. The child victim disclosed the abuse to a family member about a year later.
Under federal statutes, Kickery is subject to a mandatory minimum sentence of 30 years, up to a life term of imprisonment 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 Ami Harshad Miller. It was investigated by the FBI and the Brattleboro, Vt., Police Department.
Former Davenport Man Sentenced to Prison for ArsonRead the Press Release
DAVENPORT, IA – On January 26, 2017, Gramann Richard Barnes, 44, formerly of Davenport, Iowa, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 84 months in prison after pleading guilty to arson, announced United States Attorney Kevin E. VanderSchel. Barnes was ordered to serve three years of supervised release following his prison term, and pay $100 to the Crime Victims’ Fund.
On March 15, 2016, the Davenport Fire and Police Departments were dispatched to a duplex on Locust Street in Davenport. A victim reported earlier in the day, Barnes had assaulted the victim, injured a child, and caused the victim and child to flee the residence. The victim called 911 from a friend’s residence, and later returned to the residence to discover a strong gas odor and heat coming from the kitchen. When the victim entered the kitchen, the oven was glowing, the gas stove burners were on, and all the knobs were removed; inside the oven was a roll of burning paper towels.
The victim located the knobs and turned off the stove and oven. Additionally, the victim observed the inside of the apartment had been trashed with broken dishes, broken household items, and glass shattered throughout the residence. The victim also later discovered a number of jewelry items were missing. The victim left the residence and again called 911. The Davenport Fire and Police Departments arrived and cleared the apartment.
A fire department investigator found a makeshift wick consisting of a paper towel rolled tightly and placed down inside the oven, where the flame for the gas burner was located. Investigators concluded the knobs on the stove were removed and combustible materials consisting of paper towels were intentionally placed in the oven for the purpose of causing ignition, which would have likely resulted in a fire or explosion. The investigation also determined at the time the stove and oven were turned on, two upstairs neighbors were home, heard an argument, the sound of breaking dishes, and detected a gas odor.
When Barnes left the scene at the apartment, he stole a pick-up truck belonging to the victim’s father and fled to Texas. Barnes was arrested in Texas on April 5, 2016. After returning for a court appearance in Iowa, Barnes admitted he had rigged the apartment to explode.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Davenport Fire Department, and the Davenport Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by contacting Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected]
Fmr. Providence Plan Finance Director to Plead Guilty to FraudRead the Press Release
PROVIDENCE – According to signed documents filed in U.S. District Court in Providence, Charles F. Denno, 66, of East Providence, a former finance director for the Providence Plan, has agreed to plead guilty to devising and executing a scheme in which he fraudulently converted more than $500,000 of Providence Plan funds for his own use.
Providence Plan is a non-profit educational entity which receives federal, state and private grant funds, including funds from the United States Department of Education and the Bloomberg Family Foundation. These grant funds are to be used to support educational and other programs for adults and children in Rhode Island. Annually, the federal grant funds awarded to the Providence Plan totaled in excess of four million dollars.
United States Attorney Peter F. Neronha; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; Brian Hickey, Special Agent in Charge of the U.S. Department of Education Office of Inspector General; and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division announced the filing today of an Information charging Denno with wire fraud.
United States Attorney Peter F. Neronha commented, “The Providence Plan receives a tremendous amount of federal, state and private funds each year for a laudable purpose: to provide educational and other programs to children and adults who would otherwise not have access to them. Every dollar the defendant stole – and he stole an outlandish amount – could have served someone who really needed it. It is precisely this type of conduct that gives rise to unwarranted public cynicism regarding such worthy programs. I want to thank the Providence Plan for their assistance and cooperation in this matter, once the defendant’s criminal conduct was discovered.”
According to court documents, from 2012 through July 2016, Denno used his authority to cause the U.S. Department of Education and the Bloomberg Family foundation to deposit funds into Providence Plan bank accounts and fraudulently converted those funds to his own personal use. The total amount of funds fraudulently converted from the Providence Plan to Denno’s personal use was more than $500,000.
In addition, according to court documents, Denno fraudulently prepared and issued Providence Plan checks made payable to CMG Enterprises, an entity he owned. The payments issued to CMG and deposited into a CMG bank account were not authorized and contained a forgery of the authorized check signing official at the Providence Plan. Denno subsequently made multiple withdrawals from the CMG bank account in various forms, including credit card payments, check payments and ATM cash withdrawals at Twin River Casino.
An information 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.
Wire fraud is punishable by statutory penalties of up to 20 years imprisonment; 3 years supervised; and a fine of up to $250,000.
The matter, being prosecuted by Assistant U.S. Attorney John P. McAdams, was investigated by the Rhode Island State Police Gaming Enforcement Unit, the U.S. Department of Education Office of Inspector General and the FBI.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Federal Jury Finds Roswell Felon Guilty of Illegally Possessing Firearms and AmmunitionRead the Press Release
ALBUQUERQUE – A federal jury sitting in Las Cruces, N.M., returned a verdict yesterday evening finding Michael Dalton, 34, of Roswell, N.M., guilty of unlawfully possessing firearms and ammunition after a three-day trial. The verdict was announced by U.S. Attorney Damon P. Martinez, 5th Judicial District Attorney Dianna Luce, Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Phil Smith of the Roswell Police Department (RPD).
Dalton, who has seven prior felony convictions, is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Dalton was arrested on a federal criminal complaint in June 2016, after he was transferred to federal custody from state custody where he was detained on related state charges. The state charges subsequently were dismissed in favor of federal prosecution.
The complaint charged Dalton with illegally possessing firearms and ammunition on Aug. 28, 2015, in Chaves County, N.M. Dalton was indicted on the same charge on June 30, 2016. The indictment was superseded on Oct. 25, 2016, to add a second offense charging Dalton with being a drug addict unlawfully in possession of firearms and ammunition on Aug. 28, 2015, in Chaves County. According to court documents, Dalton was prohibited from possessing firearms or ammunition because he had prior felony convictions for burglary, breaking and entering, forgery, aggravated fleeing from a law enforcement officer, possessing burglary tools, tampering with evidence, larceny, and possession of a controlled substance.
Dalton’s trial on the two-count superseding indictment began Jan. 23, 2017 and concluded yesterday evening when the jury returned a guilty verdict on both counts. The evidence at trial established that on Aug. 28, 2015, officers of the Roswell Police Department responded to Dalton’s residence after receiving a call from Dalton’s neighbor. The neighbor reported hearing Dalton threaten to shoot his girlfriend in the head during a fight between the couple that occurred outside Dalton’s residence. The neighbor also reported witnessing Dalton attempt to run over his girlfriend with his car before going into his residence with his three-year-old child. The neighbor then heard gunshots coming from Dalton’s residence.
Dalton barricaded himself in his residence, requiring a SWAT team to be dispatched to coax Dalton out of the residence. After an hour-long standoff, came out of the residence and he was identified as a convicted felon, leading the officers to obtain a search warrant for his residence. While executing the search warrant, the officers seized two rifles, a handgun and approximately 240 rounds of ammunition from ’s residence.
The evidence at trial also established that in addition to being a convicted felon, Dalton was a methamphetamine addict.
The jury deliberated approximately two hours before returning a guilty verdict.
Dalton has been in federal custody since his arrest in June 2016, and will remain detained pending a sentencing hearing which has yet to be scheduled. At sentencing, Dalton faces a statutory maximum penalty of ten years in prison on each of the two offenses.
This case was investigated by the Las Cruces office of the ATF and the Roswell Police Department. Assistant U.S. Attorneys Alexander B. Shapiro and Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case.
Fairfield Man to Be Arraigned Today for Tax Refund Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Brandon Anderson-Lacy, 29, of Fairfield, is scheduled to be arraigned today for a tax refund fraud scheme, U.S. Attorney Phillip A. Talbert announced.
On January 12, 2017, a federal grand jury returned a nine-count indictment charging Anderson‑Lacy with conspiring to submit false claims for tax refunds to the Internal Revenue Service.
According to court documents, from February 2011 through March 2012, Anderson-Lacy and others participated in a conspiracy to submit false tax returns to the IRS by obtaining personal identifying information of others, and then submitting returns seeking refunds to which the people listed on the returns were not entitled. To pursue the refunds, false statements were placed on the tax returns regarding income, withholding from income, dependent care, and education expenses, among other things. In addition to the conspiracy charge, Anderson-Lacy is charged with making false claims in connection with eight returns filed in January 2012, each of which falsely listed $18,909 in wages and sought thousands of dollars in refunds. More than $319,000 in refunds were claimed in connection with the conspiracy.
This case is the product of an investigation by the IRS Criminal Investigation with the assistance from the Vacaville Police Department. Assistant U.S. Attorney Christopher S. Hales is prosecuting the case.
If convicted of conspiracy to submit false claims, Anderson-Lacy faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. If convicted on the false claims counts, Anderson-Lacy faces a maximum statutory penalty of five years in prison and a $250,000 fine for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Esteban Santiago Ruiz Indicted on Federal Charges in Connection with Shooting at Fort Lauderdale-Hollywood International AirportRead the Press Release
A federal grand jury sitting in Broward County returned a twenty-two count indictment against Esteban Santiago Ruiz (Santiago) in connection with the mass-shooting at Fort Lauderdale-Hollywood International Airport on January 6, 2017. Santiago’s arraignment on the charges has been scheduled for Monday, January 30, 2017 at 10:00 a.m., before United States Magistrate Judge Barry L. Seltzer in Fort Lauderdale, Florida.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO) made the announcement.
Santiago is charged in a federal indictment with eleven counts of performing an act of violence against a person at an airport serving international civil aviation that caused death or serious bodily injury, in violation of Title 18, United States Code, Section 37(a)(1); six counts of use and discharge of a firearm during and in relation to a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A); and five counts of causing the death of a person through the use of a firearm in the course of a violation of Title 18, United States Code, Section 924(c), in violation of Title 18, United States Code, Section 924(j). The statutory charges authorize a maximum penalty, upon conviction, of death or imprisonment for life or any term of years.
According to the criminal complaint previously filed in court, shortly before 1 p.m. on January 6, 2017, Santiago carried out an armed attack on newly-arrived passengers retrieving their luggage in the Terminal 2 baggage claim area of the Fort Lauderdale-Hollywood International Airport in Fort Lauderdale, Florida. Santiago pulled out a handgun and started shooting at numerous victims, aiming at the victims’ heads and bodies until he was out of ammunition. Santiago killed five people and wounded six more. Moments later, Santiago was confronted by a BSO deputy. He dropped his handgun on the ground and was arrested by BSO deputies.
The case is being prosecuted by Assistants United States Attorney Ricardo A. Del Toro and Lawrence LaVecchio, with assistance from Department of Justice Trial Attorney Larry Schneider.
An indictment is a formal charging document notifying the defendant of the criminal charges. All persons charged in an indictment are presumed innocent until proven guilty in a court of law. Court documents and information related to this case may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Energy Scientest Settles Allegations That He Improperly Double-Billed Government for His TimeRead the Press Release
DENVER – Dr. Miguel A. Contreras, a senior scientist at the National Renewable Energy Lab located in Golden, Colorado, has paid the United States $80,000 to settle allegations that he violated the False Claims Act by knowingly double-billing his work-time and submitting false timesheets and false travel reimbursement forms to his employer while he privately consulted for three energy companies.
The National Renewable Energy Lab (“NREL”) is a Department of Energy-owned facility and is managed and operated by The Alliance for Sustainable Energy under contract to the Department of Energy.
According to the Government, Dr. Contreras improperly used his NREL work-time, the work-time of other NREL employees, NREL-owned equipment, and NREL-owned resources for his own personal financial gain while consulting with three private energy companies. The United States found that Dr. Contreras knowingly submitted false timesheets and travel reimbursement claims to fraudulently “double-bill” his time without seeking the proper approvals from his NREL supervisors. This conduct occurred on numerous occasions during 2008 through 2009.
In the settlement agreement, Dr. Contreras acknowledges that had this matter gone to trial, the United States would be able to prove these facts by a preponderance of the evidence.
The government further asserted that Dr. Contreras also misled his supervisors and investigators about the nature of his private consulting work. As a result of these acts, the United States claimed that Dr. Contreras committed up to thirty-seven separate violations of the False Claims Act.
This matter was investigated by the Department of Energy’s Office of the Inspector General, in conjunction with the United States Attorney’s Office, District of Colorado.
Assistant U.S. Attorneys Jacob Licht-Steenfat and Chris Larson handled this matter on behalf of the government.
Eleven Defendants Plead Guilty to Drug Trafficking and Money Laundering ConspiracyRead the Press Release
St. Thomas, USVI – On January 26, 2017, five defendants pleaded guilty before District Court Judge Curtis V. Gomez to drug trafficking and money laundering conspiracy, United States Attorney Ronald W. Sharpe announced. Dellana Magner, 23, and Kinia Blyden, 23, both of St. Thomas, pleaded guilty to possession with intent to distribute cocaine. Rasheem Morton, 36, of St. Thomas; Monique David, 40, of St. Thomas, and Te’Nae George, 23, of St. Thomas, pleaded guilty to money laundering conspiracy.
The following individuals also pleaded guilty to cocaine possession on January 23, 2017, before Judge Gomez: Nilda Morton, 32, of St. Thomas; Vanier Murraine, 34, a native of St. Thomas and resident of Detroit; Christopher Butler, 30, and Drue Williams, III, 35, of Twinsburgh, Ohio; and Taheeda George, 37, and Roniqua Hart, 24, of St. Thomas. All defendants were remanded to the custody of the United States Marshals pending sentencing on June 1, 2017.
According to the plea agreements filed with the court, from October 2015 through July 2016, Nilda Morton, the leader of the drug trafficking organization, supplied cocaine to Vanier Murraine utilizing Delta Airlines employees Taheeda George and Roniqua Hart. The Delta employees then used their security clearances at the Cyril E. King Airport to smuggle cocaine to Dellana Magner, Kanya Tirado, Kinia Blyden, and Jerrisha Rawlins after they had completed their pre-boarding security clearances, but before they boarded their commercial flights to the U.S. mainland.
On three occasions between June and July 2016, airport security surveillance footage captured the defendants in the public restroom removing vacuum-sealed packages of cocaine from their bodies and placing them in the couriers’ carry-on bags before they boarded their flights. After the cocaine was sold stateside, Nilda Morton arranged for her brother, Rasheem Morton, Dellana Magner, Te’Nae George, Kinia Blyden, Jerrisha Rawlins, Roniqua Hart and Monique David to transport the cash proceeds back to St. Thomas, where she took possession of the money. The investigation culminated on July 1, 2016, with the arrest of Dellana Magner after she smuggled three kilograms of cocaine onboard an American Airlines flight destined for Miami.
This case is the result of a joint investigation by the Federal Bureau of Investigations in Pittsburgh, New York, Cleveland, Detroit, and St. Thomas. It was prosecuted by Assistant United States Attorney Delia L. Smith.
District of Montana Collects $4.5 Million in Civil and Criminal Actions in FY 2016Read the Press Release
HELENA - U.S. Attorney Michael W. Cotter announced today that the Montana United States Attorney’s Office collected $4.5 million in Fiscal Year (FY) 2016 related to criminal and civil actions. In some cases, the U.S. Attorney’s Office worked in conjunction with litigating components of the U.S. Department of Justice.
Attorney General Loretta E. Lynch announced on December 14, 2016 that the Justice Department collected $15.3 billion in civil and criminal actions in the fiscal year ending September 30, 2016. The $15.3 billion in collections in FY 2016 represents more than five times the approximately $3 billion appropriated budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period. Collections in Montana totaled $55.3 million for the past five fiscal years combined, more than twice the operating budget for Montana’s U.S. Attorney’s Offices for those years.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
“The collections program illustrates an important aspect of the USAO’s public service mandate that is often overlooked,” said U.S. Attorney Michael W. Cotter. “It is important to all of us in the U.S. Attorney’s Office that we maintain a positive balance sheet. This office, like the Department of Justice overall, pays for itself. Considering the many things we do, from defending torts and environmental lawsuits on the one hand, to prosecuting violent crime on our six American Indian reservations of the other hand, the American taxpayers are getting value for their money.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid directly to the victim, criminal fines and felony assessments are paid to the departments Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
Occasionally, assets from criminals are forfeited by court action. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes. Forfeited assets include currency or bank accounts, real property and cars purchased with illegal proceeds or used to facilitate crimes, guns held by convicted felons, and computers used for child pornography.
Those who regularly follow the news are aware of the function of the United States Attorney’s Office (USAO) regarding federal criminal prosecution. Equally important, but perhaps not as well known, is the mission, function and success of the Montana USAO in recovering money for the benefit of victims of crime and the U.S. Treasury. This critical mission is accomplished in large part by the Financial Litigation Unit (FLU). The FLU collects criminal restitution, fines, and penalties ordered to be paid to federal agencies when federal programs are defrauded. In addition the FLU Unit helps federal prosecutors identify and forfeit assets that represent the proceeds of or that were used to facilitate federal crimes.
Cuban National who had Attempted to Flee the Country Sentenced for Conspiring to Steal Credit Card Numbers, Aggravated Identity TheftRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JULIET ESTRADA PEREZ, 24, a Cuban national, was sentenced today after previously pleading guilty to conspiracy to commit access device fraud and aggravated identity theft. ESTRADA PEREZ had resided in Florida before traveling to the New Orleans area to steal credit card information.
U.S. District Judge Nannette Jolivette Brown sentenced ESTRADA PEREZ to 36 months imprisonment to be followed by 3 years of supervised release. As part of sentencing, ESTRADA PEREZ was ordered to pay restitution of $7,873.97 jointly and severally with her codefendants and a $100 special assessment.
According to court records, in April 2016, while on bond in this case, ESTRADA PEREZ and a codefendant were arrested in the Southern District of Florida on new state charges of committing credit card fraud. She and two other codefendants were later found in the Florida Strait between Florida and Cuba by the United States Coast Guard and subsequently arrested. In total, six defendants have pleaded guilty in the case to conspiring among themselves and with others to with possessing fifteen or more unauthorized and counterfeit access devices, as well as producing, possessing, and trafficking device-making equipment. Additionally, court records indicate the defendants traveled from Florida in late July, 2015 and agreed to place card skimming devices on gas pumps in the New Orleans area. They also admitted to, among other things, possessing a card encoding machine, a card embossing machine, and a laptop computer containing stolen credit card information.
U.S. Attorney Polite commended the work of Jefferson Parish Sheriff’s Office, the United States Secret Service, and Homeland Security Investigations, who investigated the case. Assistant Attorney Hayden Brockett was in charge of the prosecution.
Convicted Felon Sentenced to Prison After Taking Law Enforcement Official’s GunRead the Press Release
LAREDO, Texas – A Laredo man has been sentenced to federal prison after he took a firearm from a Webb County Sheriff’s officer inside her home in the course of a domestic dispute, announced U.S. Attorney Kenneth Magidson. Jose Genaro Contreras pleaded guilty Oct. 6, 2016, admitting to being a felon in possession of a firearm.
Today, U.S. District Judge Diana Saldana handed Contreras a 60-month sentence. He was further ordered to serve a three-year-term of supervised release following completion of the prison term. In handing down the sentence, Judge Saldana noted the defendant’s “horrible record” and described his conduct as “egregious.”
On May 29, 2016, Contreras became angry at his girlfriend, who was then a deputy with the Webb County Sheriff’s Office. Contreras pushed the woman to the floor, took the .40 caliber gun out of her purse and, according to her written statement, took her into a back restroom and locked the door. Two children were also inside the home.
Authorities later responded to a 911 call from the woman’s sister who stated that Contreras had a gun and she was worried he was going to kill her sister. When police arrived and questioned Contreras, he denied that any firearms were inside the residence. At the time Contreras possessed the firearm, he was a convicted felon who was prohibited from possessing any firearms.
Contreras will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Laredo Police Department. Assistant U.S. Attorney Chris Howard is prosecuting the case.
Columbus, Ohio woman sentenced for her role in a smash and grab schemeRead the Press Release
WHEELING, WEST VIRGINIA – Jolisha McDonald, 25, of Columbus, Ohio, was sentenced today to 30 months incarceration for transporting stolen goods across state lines. Acting United States Attorney Betsy Steinfeld Jividen made the announcement.
McDonald conspired to steal smart phones, tablets, head phones, game stations, and computers from Walmart, Target, and Meijer stores in eight different states, including West Virginia and Ohio. The value of the stolen goods are estimated to be in excess of $500,000. She pled guilty to one count of “Conspiracy to Transport Stolen Goods in Interstate Commerce” in November 2016.
Assistant U.S. Attorney Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Columbus Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Columbia Man Sentenced to 360 months for Aggravated Sexual Assault on a ChildRead the Press Release
Contact Person: J.D. Rowell (803) 929-3036
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Ricardo Favela (age 44) was sentenced yesterday in federal court in Columbia, South Carolina, for two counts of aggravated sexual abuse on a child and one count of abusive sexual contact with a child. Senior United States District Judge Cameron McGowan Currie of Columbia sentenced Favela to 360 months (30 years) incarceration. The defendant was also sentenced to a term of supervised release, sex offender rehabilitation, and will be required to register with the South Carolina Sex Offender register upon his release.
Evidence presented at the trial established that beginning sometime in early 2015 through April of 2016, Favela was the primary care taker of the child. Trial testimony included a videotaped confession conducted by the FBI, wherein Favela admitted to allowing the child to perform sexual acts on himself multiple times from early 2015 through 2016. Favela was convicted in October of 2016 on three of the four counts contained in his indictment.
United States Attorney Beth Drake noted that the US Attorney’s Office prosecutes sexual assault cases when they occur in areas of federal jurisdiction (military bases, national parks, etc.), and that the sexual assault cases receive the full focus of the capable investigators and prosecutors that work them. “This sentence reflects the repugnant nature of the offense and serves as a significant deterrent to all sex offenders.”
The case was investigated by agents of the Federal Bureau of Investigation and Fort Jackson Criminal Investigation Division. Assistant United States Attorneys JD Rowell and Jay Richardson of the Columbia office prosecuted the case.
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Columbia Man Pleads Guilty to Hoax Bomb ThreatRead the Press Release
Contact Person: Stacey D. Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Karry Max Taylor, III, age 21, of Columbia plead guilty in federal court yesterday to making a hoax bomb threat, in violation of Title 18, United States Code, Section 1038(a). Senior United States District Judge Cameron McGowan Currie of Columbia accepted the plea and will impose sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented in court established that on January 4, 2016, three individuals, two in South Carolina and one in New York, each received a text message from an unknown South Carolina telephone number advising them that someone had placed a bomb in the parking lot of the Veterans Affairs Medical Center on Garners Ferry Road. One of the texts stated, “Hey Montana, this is Sosa. Omar said he put a bomb in the parking lot or something…in the VA hospital on Garners Ferry Road. I am scared and I don’t know what to do.” The three individuals each notified law enforcement authorities, who were able to discern that the texts were referring to the Veterans Affairs Medical Center in Columbia. As a result, the Columbia Police Department, the Columbia Fire Department, and the Veterans Affairs Medical Center Police Department responded and placed the Veterans Affairs Medical Center in lock-down and swept the parking area for explosives. Law enforcement was on the scene for three hours and ultimately determined that the texts were a hoax as no explosive was located. Thereafter, the Federal Bureau of Investigation, through investigative means, was able to link the texts back to a cellular telephone and email account belonging to Taylor. Agents approached Taylor, a volunteer with the Columbia Fire Department, and he admitted to sending the texts to random numbers in an effort to draw other fire engines to the Veterans Affairs Medical Center in hopes that his fire station would then be called to respond to any other calls that occurred during that time frame.
Taylor faces a statutory maximum of five years imprisonment and/or a fine of $250,000, in addition to three years of supervised release. The statute also requires that Taylor reimburse the state and local agencies who responded to the incident on January 4, 2016. The case was investigated by the FBI Joint Terrorism Task Force in Columbia. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Colombian National Extradited to North Dakota from PanamaRead the Press Release
FARGO - US Attorney Christopher C. Myers, along with US Attorney Billy J. Williams, District of Oregon, announced on January 26, 2017, that Daniel Vivas Ceron, 36, of Colombia, was extradited to the United States after Panamanian authorities authorized the extradition of Vivas Ceron. Vivas Ceron arrived in North Dakota on January 25, 2017, and is scheduled to appear before Magistrate Judge Alice Senechal on January 26, 2017 at 3:15pm in Fargo, N.D.
Vivas Ceron was taken into custody in Panama City, Panama, on July 17, 2015, pursuant to the arrest warrant in connection with an Indictment out of the District of North Dakota charging him with: (1) Conspiracy to Distribute Controlled Substances and Controlled Substance Analogues Resulting in Serious Bodily Injury and Death; (2) Conspiracy to Import Controlled Substances and Controlled Substance Analogues into the United States Resulting in Serious Bodily Injury and Death; (3) Aiding and Abetting the Distribution of a Controlled Substance Resulting in Death; (4) Money Laundering Conspiracy, and (5) Continuing Criminal Enterprise. Since Vivas Ceron’s arrest in July of 2015, the United States Attorney’s Office, working with the Office of International Affairs of the Department of Justice, has been working diligently to extradite Vivas Ceron.
The arrest comes as part of “Operation Denial,” an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation into the international trafficking of fentanyl and other lethal drugs, and was significantly aided by the national and international coordination led by the multi-agency Special Operations Division (S.O.D.) near Washington D.C. as part of
“Operation Deadly Merchant.” The investigation started in North Dakota on January 3, 2015,
with the overdose death in Grand Forks of 18-year-old Bailey Henke.
Additional defendants charged in Federal court in this investigation include:
District of North Dakota
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Jameson Robert Sele, 20, Grand Forks, ND – Pled guilty to Conspiracy to Distribute Controlled Substances and was sentenced on 7/27/15 to 36 months’ in federal prison.
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Ryan Jon Jensen, 20, Grand Forks, ND – Pled guilty on 2/27/15 to: Conspiracy to Distribute Controlled Substances Resulting in Serious Bodily Injury and Death; two Counts of Distribution of a Controlled Substance Resulting in Death; and Distribution of a Controlled Substance Resulting in Serious Bodily Injury and Money Laundering Conspiracy. Sentenced on 2/2/2016 to 20 years in federal prison.
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David Todd Noye Jr., 18, Grand Forks, ND – Pled guilty on 5/4/15 to Conspiracy to Distribute Controlled Substances. Sentenced on 1/25/2016 to serve 3 years and 3 months in federal prison.
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Joshua Tyler Fulp, 20, Grand Forks, ND – Pled guilty on 6/23/15 to Conspiracy to Distribute Controlled Substances Resulting in Serious Bodily Injury and Death and was sentenced to 12 years in federal prison.
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Kain Daniel Schwandt, 19, Grand Forks, ND - Pled guilty on 7/24/15 to Conspiracy to Distribute Controlled Substances. Sentenced on 1/25/2016 to serve 3 years and 6 months in federal prison.
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Brandon Corde Hubbard, 40, Portland, OR - Indicted on charges of: Conspiracy to Distribute Controlled Substances Resulting in Serious Bodily Injury and Death; Distribution of a Controlled Substance Resulting in Death; and Money Laundering Conspiracy. Sentenced on 07/13/2016 to serve life in federal prison.
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Ronnie Lee Helms, 30, Acworth, GA - Indicted on charges of: Conspiracy to Possess with Intent to Distribute and Distribution of a Controlled Substance and Controlled Substance Analogues Resulting in Serious Bodily Injury and Death. Jury trial is set for 3/7/2017.
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Braden James Foley, 28, Olympia, WA - Pled guilty on 8/11/2016 to Conspiracy to Possess with Intent to Distribute and Distribution of a Controlled Substance and was sentenced to 30 months in in federal prison on 11/21/2016
District of Oregon
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Steven Fairbanks Locke – Charges with: Conspiracy to Distribute and Possess with Intent to Distribute a Controlled Substance. Trial pending.
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Channing Lacey – Charged with: Conspiracy to Distribute a Controlled Substance Resulting in Serious Bodily Injury; Distribution of a Controlled Substance Resulting in Death; Possession of a Controlled Substance with Intent to Distribute. Trial pending.
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Carissa Marie Laprall – Charged with: three Counts of Distribution of a Controlled Substance Resulting in Serious Bodily Injury and Possession of a Controlled Substance with the Intent to Distribute. Trial pending.
This case is being investigated by the Department of Homeland Security - Homeland Security Investigations, Drug Enforcement Administration, United States Postal Inspection Service, Grand Forks Narcotics Task Force, Royal Canadian Mounted Police, Portland Oregon Police Bureau – Drugs and Vice Division, Portland HIDTA Interdiction Task Force, Oregon State Police, and the Grand Forks Police Department.
United States Attorney Christopher C. Myers is prosecuting the cases in North Dakota; Assistant U.S. Attorney Scott Kerin is prosecuting the cases in the District of Oregon and will be assisting as a Special Assistant U.S Attorney (SAUSA) in North Dakota as the investigation moves forward.
The Indictment and Order of Extradition in this case are not evidence of guilt. The defendant is presumed innocent unless or until proven guilty beyond a reasonable doubt at trial.
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Businessman Pleads Guilty to Federal Charge for Conspiring to Take and Sell State Department VehiclesRead the Press Release
WASHINGTON – The manager of an auto restoration and collision center pled guilty today to charges that he conspired with others to sell vehicles that were brought to the business by the U.S. Department of State, announced U.S. Attorney Channing D. Phillips, Steve A. Linick, Inspector General for the U.S. Department of State, and Timothy R. Slater, Special Agent in Charge of the Criminal Division of the FBI’s Washington Field Office.
James Ratcliffe, 67, of Fairfax Station, Va., pled guilty in the U.S. District Court for the District of Columbia to a charge of conspiracy to commit theft of government property and wire fraud. The charge carries a statutory maximum of five years in prison and potential financial penalties. Under federal sentencing guidelines, he faces a potential range of 18 to 24 months of incarceration and a fine of $4,000 to $40,000. The plea agreement calls for Ratcliffe to pay $416,020 in restitution and an equal amount in a forfeiture money judgment.
The Honorable Amit P. Mehta scheduled sentencing for May 3, 2017.
According to a statement of offense, signed by the defendant as well as the government, Ratcliffe is the manager of the Car Collision Center, located in Springfield, Va. He and the owner of the Collision Center, who is identified in court documents as “Person A,” also have a license to sell automobiles in Virginia under the name of Collector’s Auto Restoration.
Through the Car Collision Center, Ratcliffe and others performed legitimate work on vehicles for government agencies, including the U.S. Department of State. Vehicles that came to the Collision Center from the State Department were delivered by State Department employees. The Collision Center provided estimates for the work requested, and, if approved, employees of the Collision Center prepared work tickets, performed the work, and billed the State Department.
Apart from legitimate work for the State Department, Ratcliffe admitted in the statement of offense that he conspired with a State Department employee, identified in court documents as “Person B,” who worked in the Defensive Equipment and Armored Vehicle Division, to misappropriate and sell vehicles and other State Department property. This employee was responsible for the acquisition, repair, and maintenance of armored vehicles. “Person B” also was involved in record-keeping with respect to the State Department’s armored vehicles.
According to the statement of offense, on at least two occasions in 2011 and 2012, “Person B” caused truckloads of State Department tires and wheels to be delivered to the Collision Center. “Person B” told Ratcliffe that he could sell them and keep the proceeds. Ratcliffe kept the full proceeds of his sales, which amounted to at least $7,500.
Also, beginning in or before June 2011, and continuing through at least November 2013, “Person B” and Ratcliffe took a Hummer and 12 Chevrolet Suburbans from the State Department motor pool; these vehicles were unarmored. They agreed that Ratcliffe would sell the vehicles and split the proceeds with “Person B.” Ratcliffe typically sold the misappropriated vehicles for at or near market prices. The total sales price of the misappropriated vehicles was $408,520, according to the statement of offense. Ratcliffe and “Person A” kept the majority of these proceeds for their personal benefit and the remainder went to “Person B.” Additionally, in 2015, “Person B” provided Ratcliffe with two unarmored Suburbans that Ratcliffe kept at his place of business or home. The base price of these vehicles was $48,200 each, for a total of $96,400. The two vehicles were recovered during a law enforcement investigation of the criminal activities.
All told, the value of the property that Ratcliffe misappropriated through the schemes was at least $512,420.
In announcing the plea, U.S. Attorney Phillips, Inspector General Linick, and Special Agent in Charge Slater commended the work of those who are investigating the case from the U.S. Department of State, Office of the Inspector General, as well as the FBI’s Washington Field Office. They also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Andrea L. Hertzfeld, Special Assistant U.S. Attorney Vesna Harasic-Yaksic, and Paralegal Specialist Jessica Mundi. Finally, they commended the work of Assistant U.S. Attorney John P. Marston, who is prosecuting the matter.
Bridgeport Man Sentenced to Prison for Distributing Fentanyl-Laced Heroin to Overdose VictimsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ERICK DELGADO, 39, of Bridgeport, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 13 months of imprisonment, followed by three years of supervised release, for distributing fentanyl-laced heroin that led to overdoses in April 2016.
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, in the morning of April 25, 2016, Bridgeport Police and medical personnel responded to a location on Washington Avenue on a report of a possible drug overdose. The overdose victim was revived with two doses of Narcan and was transported to the hospital. A friend of the victim, who was with the victim at the time and contacted medical professionals after the overdose, told investigators that he and the victim purchased heroin from an individual he knew as “Eric” in the area of Brooks Street and Ogden Street in Bridgeport. The victim subsequently identified DELGADO as the source of the heroin he used.
In the evening of April 25, 2016, Monroe Police and emergency medical personnel responded to a report of an unresponsive 48-year-old male at a residence in Monroe. The victim was pronounced dead at the scene. A subsequent interview with an acquaintance of the victim revealed that, on April 25, the victim and his acquaintance traveled to the area of Brooks Street and Ogden Street where the victim purchased heroin from DELGADO.
The Office of the Chief Medical Examiner subsequently determined the victim’s cause of death to be acute fentanyl intoxication.
On May 3, 2016, an individual working with law enforcement contacted DELGADO to arrange the purchase of heroin. When the individual and an undercover officer arrived in the area of Brooks Street and Ogden Street, they were met by DELGADO’s brother, Anoris Delgado, who subsequently provided them with 20 bags of heroin. The undercover officer purchased another 20 bags of heroin from Anoris Delgado on May 20.
DELGADO has been detained since his arrest on June 21, 2016. On October 27, 2016, he pleaded guilty to one count of distribution of heroin.
On October 25, 2016, Anoris Delgado pleaded guilty to the same charge. He awaits sentencing.
This matter was investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, and the Monroe and Bridgeport Police Departments. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Boise Man Sentenced to 20 Years for Sex Trafficking of a MinorRead the Press Release
BOISE – Michael Wayne Wade, 31, of Boise was sentenced today in United States District Court to 240 months in prison followed by 10 years of supervised release for sex trafficking of a minor, U.S. Attorney Wendy J. Olson announced. Wade pleaded guilty on August 16, 2016.
According to the plea agreement, agents with the Idaho Department of Probation and Parole arrested Wade for a felony probation violation in July of 2014. A Nokia Lumina cell phone was seized from Wade and examined by a detective with the Boise Police Department. The cell phone contained texts with a minor and images of the minor, including one that was sexually explicit. The detective conducted open-source internet searches on Backpage.com and discovered that the images of the minor on Wade’s phone had been posted in an ad for “escort services” in Boise in July and November of 2014. The postings were made using a Backpage.com account for another individual, J.K.
J.K. was arrested by the Boise Police Department in December of 2014, and admitted she worked as a prostitute in Boise, and that Wade was the “boss” who “pimped her.” She admitted Wade asked her to use the minor for a two-girl “date,” which she refused. She admitted posting the minor as an escort on Backpage.com, using the images sent to her by Wade. She further admitted that Wade spoke to her about taking the minor “under her wing,” assisting her in “escorting,” and ensuring that she was “working.” J.K. admitted that she took the minor on at least two “dates” where the minor engaged in commercial sex acts, and that she received money from the minor in exchange for posting the ad and transporting her.
The minor was interviewed and admitted that she participated in a prostitution enterprise with J.K. She stated she sent the images of herself to Wade for the purpose of being posted on Backpage.com as an escort. The minor stated that J.K. posted her images on Backpage.com, and drove her on at least two “calls” where she engaged in a commercial sex act when she was sixteen years old.
“This defendant callously victimized a minor,” said Olson. “This sentence demonstrates that such conduct will be punished severely, and that the law protects our children from those who seek to exploit and profit from them. This office and its law enforcement partners in Idaho are unwavering in our commitment to seek justice on behalf of vulnerable victims and to hold sex traffickers accountable.”
Further investigation by the Boise Police Department and the FBI revealed recorded phone calls and text messages from Wade to J.K. and the minor. The text messages revealed that Wade knew the minor was sixteen years old, that he told her she would be a “star by the time I’m done with you,” encouraged her to “hustle all day,” and told her that J.K. would teach her “the tricks of the trade” and “how to hustle.” Wade also told the minor that she had “mad potential,” could “turn tricks,” and that J.K. would “buy you a room” and “have you get to work this weekend.” Wade then told J.K. that the minor was “all open” and “down to work for the team.”
The case was investigated by the Boise Police Department, the FBI, and the Idaho Department of Probation and Parole, and was prosecuted with assistance from the Ada County Prosecutor’s Office. The 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.”
Birmingham Man Indicted on Counterfeiting and Firearms ChargesRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Birmingham man on counterfeiting and firearms charges, announced Acting U.S. Attorney Robert O. Posey and U.S. Secret Service Special Agent in Charge Michael Williams.
A three-count indictment filed in U.S. District Court charges HOLLIS NIKIA BULLARD, 22, with making counterfeit $100 bills, dealing in counterfeit $100 bills and possessing a Smith & Wesson Model 10 revolver as a convicted felon, all on Jan. 4.
According to the indictment, Bullard was convicted of a felony burglary offense in Jefferson County Circuit Court in August 2015, and of felony receipt of stolen property in February 2014.
Police arrested Bullard on the federal counterfeiting and firearm possession charges on Jan. 4 at his apartment on Center Point Parkway in Birmingham, where they found counterfeited $100 bills, according to a Jan. 5 arrest complaint filed in U.S. District Court. Secret Service agents recovered counterfeit bills totaling more than $15,000 in the course of the investigation, according to the complaint.
The maximum penalty for both making counterfeit U.S. currency and dealing in counterfeit currency is 20 years in prison and a $250,000 fine. The maximum penalty for being a convicted felon in possession of a firearm is 10 years in prison and a $250,000 fine.
The Secret Service and the Jefferson County Regional Fraud Task Force investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Berkeley County woman pleads guilty to heroin distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Danielle Ey, 29, of Hedgesville, West Virginia, admitted to assisting in heroin distribution in federal court in Martinsburg today, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Ey pled guilty to one count of “Aiding and Abetting Possession with the intent to Distribute Heroin.” She faces up to twenty years in prison and a fine up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Anna Z. Krasinski and Special Assistant U.S. Attorney Stephanie S. Taylor prosecuted the case on behalf of the government. The Federal Bureau of Investigation, along with Eastern Panhandle Drug and Violent Crime Task Force, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Belarus Native Involved in Credit Card Processing ‘Scareware’ Scheme Sentenced to 4 Years in PrisonRead the Press Release
A 37-year-old citizen of Belarus was sentenced today in U.S. District Court in Seattle to four years in prison for conspiracy to commit wire fraud, announced U.S. Attorney Annette L. Hayes. ALEXANDER MIHAILOVSKI was indicted in August 2012 for his role as a payment processor in a $71 million cybercrime scheme. He was arrested in Vienna, Austria in late 2015. MIHAILOVSKI was extradited to the U.S. to face charges a year ago. He pleaded guilty in August 2016. At the sentencing hearing U.S. District Judge Thomas S. Zilly said, “You provided an important part of the total scheme… by making it appear legitimate…. People who commit these crimes will be apprehended and will be punished.”
“Just like a bank robber needs a get-away driver, cyber fraudsters need people to turn their electronic scams into cash,” said U.S. Attorney Annette L. Hayes. “This defendant ran a credit card processing company that was essentially ripping off nearly $71 million dollars from unsuspecting computer users. Like so many others, he thought he would get away with his crimes. Instead, close cooperation with our worldwide law enforcement partners allowed us to track him down and get him back to the United States to face justice.”
According to records in the case, MIHAILOVSKI operated a credit card payment processing company called Mystique Enterprises, LTD, doing business as PSBILL, Smart Systems, and Failsafe Payments. MIHAILOVSKI and his company were part of an international cybercrime ring that netted $71 million by infecting victims’ computers with “scareware” and selling fraudulent antivirus software that was supposed to secure victims’ computers but was, in fact, useless.
The prosecution of MIHAILOVSKI is part of Operation Trident Tribunal, a coordinated enforcement action targeting international cybercrime rings that caused more than $71 million in total losses to more than one million computer users through the sale of fraudulent computer security software known as “scareware.” The scareware used in this scheme was malicious software that posed as legitimate computer security software. The scareware caused popup notices to appear on the victims’ computers with false warnings that the computers had been infected and prompted the victims to purchase fake anti-virus software with a credit card at a cost of up to $129. The scareware would often disable legitimate anti-virus software and lock-down other features of the computers, effectively preventing the victims from using their computers until they purchased the fake anti-virus software or reformatted their computers. An estimated 960,000 users were victimized by this scareware scheme, leading to $71 million in actual losses.
MIHAILOVSKI is the second foreign national prosecuted in this particular scareware scheme. In December 2012, Mikael Patrick Sallnert, 40, a citizen of Sweden, was also sentenced to four years in prison and was ordered to pay $650,000 in forfeiture. Sallnert also served as a credit card payment processor for the crime ring.
This case is being investigated by the FBI Seattle Division Cyber Task Force and other FBI entities. The case is being prosecuted by Assistant U.S. Attorneys Norman Barbosa and Francis Franze-Nakamura. Substantial assistance was provided by the Criminal Division’s Office of International Affairs and the Computer Crime and Intellectual Property Section.
Critical assistance in the investigation was provided by the Security Service of Ukraine, German Federal Criminal Police, Netherlands National High-Tech Crime Unit, London Metropolitan Police, Latvian State Police, Lithuanian Criminal Police Bureau, Swedish National Police Cyber Unit, French Police Judiciare, Royal Canadian Mounted Police, Romania’s Directorate for Combating Organized Crime, Cyprus National Police in cooperation with the Unit for Combating Money Laundering, the Danish National Police, and the Austrian Federal Ministry of Justice.
Bay Area Resident Pleads Guilty to Concealing Assets in A Bankruptcy ProceedingRead the Press Release
SAN JOSE – Steve McVay pleaded guilty to concealing assets in a bankruptcy proceeding announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The plea was accepted yesterday by the Honorable Lucy H. Koh, United States District Judge.
According to the plea agreement, McVay, 68, whose last known address was in Morgan Hill, Calif., admitted he filed a voluntary petition for bankruptcy in the United States Bankruptcy Court for the Northern District of California, on February 9, 2010, through which he sought relief for approximately $1.5 million in debts. McVay acknowledged that in connection with the petition, he signed documents under penalty of perjury that he knew contained false and fraudulent information. Further, McVay acknowledged he signed the documents with the intent to hide assets from his creditors, the United States Trustee, the court, and other persons charged with control or custody of the bankruptcy estate. Information about the false and fraudulent information in McVay’s bankruptcy filings is contained in the plea agreement. For example, as part of the agreement McVay admitted that prior to filing for bankruptcy, he had opened a bank account in his wife’s name, without either her knowledge or consent, and that he had been using the account to receive and transmit monies under his exclusive control; McVay further admitted he failed to disclose the account in his bankruptcy filings. Further, McVay admitted he knowingly concealed multiple additional bank accounts that he was required to disclose as part of his filings.
McVay was indicted on April 28, 2016, and charged with two counts of concealing assets in bankruptcy proceedings, in violation of 18 U.S.C. § 152(1), and one count of false testimony in bankruptcy proceedings, in violation of 18 U.S.C. § 152(2). Pursuant to his plea agreement, McVay pleaded guilty to one count of concealing assets in bankruptcy proceedings.
McVay is scheduled to appear before Judge Koh for sentencing on May 17, 2017. The maximum statutory penalty for a violation of 18 U.S.C. § 152(1) is five years in prison and $250,000 or twice the amount of gain or loss resulting from the scheme. In addition, a term of supervised release and restitution may be imposed. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Timothy J. Lucey is prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by the FBI.
Ambulance Company Owner Sentenced for Health Care FraudRead the Press Release
CINCINNATI – Terry Johnson, 43, of Hamilton Ohio, was sentenced in U.S. District Court to 24 months in prison for health care fraud and money laundering in a scheme to defraud Medicare and Medicaid.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Troy N. Stemen, Acting Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office, Lamont Pugh, Special Agent in Charge, Health and Human Services Office of Inspector General (HHS-OIG), and Ohio Attorney General Mike DeWine announced the plea sentence handed down today by U.S. District Judge Michael R. Barrett.
According to court documents, Johnson is the owner and operator of Community Angels Ambulance Service, LLC, which provided medical transportation to dialysis patients from at least 2007 through 2012. He also operated the ambulance company Starlite Transportation.
For approximately seven years, Johnson fraudulently billed Medicare and Medicaid for ambulance and ambulette transports. Approximately $1.1 million was fraudulently billed to Medicare for Community Angels. The loss to Medicaid from both companies totaled more than $354,000.
In addition, Johnson was ordered to file amended personal and corporate (Community Angels Ambulance) income tax returns with the IRS for the 2008-2011 income tax years.
U.S. Attorney Glassman commended the cooperative investigation by the IRS, HHS-OIG and the Ohio Attorney General’s Medicaid Fraud Control Unit, as well as Assistant United States Attorney Timothy Mangan, who is representing the United States in this case.
Alton Man Sentenced to 10 Years for Possession of Child PornographyRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that James Allen Ridder, 34, of Alton, Illinois, was sentenced in federal court today to ten years’ imprisonment, ten years’ supervised release, and a $100 special assessment, following his plea of guilty to possession of child pornography – that is, still images and video images of two minors, ages 15 and 17. The minor victims were children known to Ridder.
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."
The case was investigated by the Madison County Sheriff’s Office, which has a detective assigned to the Federal Bureau of Investigations Metro East Cybercrime Task Force. The case was prosecuted by Assistant United States Attorneys Ali Summers and Stephen Clark.
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Alleged Prison Escapee Charged with Attempted Bank RobberyRead the Press Release
BOSTON – A former Army Reservist who was previously charged with the theft of military weapons, and then later escaped while in federal custody, has now been charged with two counts of attempted bank robbery.
James W. Morales, 35, of Cambridge, was first arrested in November 2015 on federal weapons charges arising from the theft of military weapons from a U.S. Army Reserve facility in Worcester, Mass. Morales then escaped from federal custody while detained at the Donald W. Wyatt Detention Facility in Central Falls, Rhode Island on Dec. 31, 2016.
On the morning of Jan.5, 2017, at approximately 9:21 a.m., it is alleged that Morales entered a branch of Bank of America in Cambridge and passed the teller a note that read, “I WANT ALL OF THE LARGE DENOMINATIONS W/BAND’S FROM THE 2ND (BOTTOM) TILL NOW BE CALM – BE COOL – NO DYE PACKS.” The teller was able to flee to the back of the bank behind a locked door, and Morales exited the bank without any money. The bank’s video surveillance system recorded Morales’ attempted robbery.
Later that same day, at approximately 3:11 p.m., Morales allegedly entered a branch of Citizen’s Bank in Somerville and passed the teller a note that read “I WANT THE MONEY IN THE TILL NOW!! 100’s 50’s 20’s Be Calm, Be Cool, be Quick.” When the teller stated, “I can’t,” Morales wished the teller a nice day and exited the bank. The bank’s video surveillance system recorded Morales’ attempted robbery.
At approximately 3:40 p.m., Massachusetts State Police troopers responding to the report of the bank robbery observed Morales who had fled. After a foot pursuit, Morales was apprehended.
The charge of bank robbery provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 and restitution on each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge bases upon the US Sentencing guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; United States Marshal John Gibbons for the District of Massachusetts; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Cambridge Police Commissioner Brent Larabee; and Somerville Police Chief David Fallon, made the announcement today. Assistant U.S. Attorneys Mark Grady of Weinreb’s Worcester Branch Office and Kelly Lawrence of Weinreb’s Major Crimes Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Wednesday 25 January 2017
Wife of Former Supervisory Customs and Border Protection Officer Pleads Guilty to Alien Smuggling ConspiracyRead the Press Release
In El Paso today, the wife of former Supervisory Customs and Border Protection Officer Lawrence Madrid who failed to appear for trial last year pleaded guilty to her role in an alien smuggling and bribery scheme announced United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Assistant Special Agent in Charge Jeff Mayfield, (ASAC) Las Cruces; and, Department of Homeland Security-Office of Inspector General Special Agent in Charge Javy Pedroza.
Appearing before Senior United States District Judge David Briones, 39-year-old Odet Madrid-Corchado pleaded guilty to one count of conspiracy to commit alien smuggling for financial gain, one substantive count of alien smuggling for financial gain and one count of bribery of a public official. Odet Madrid-Corchado, who has remained in custody following her arrest on November 29, 2016, faces not more than ten years imprisonment on the conspiracy charge, between three and ten years imprisonment for the substantive alien smuggling charge, and not more than 15 years imprisonment for the bribery charge. Sentencing is scheduled for 9:30am on April 5, 2017.
According to court records, from August 2010 to September 2011, Odet Madrid-Corchado conspired with her husband and others to encourage/induce undocumented aliens to come to, enter, and reside in the United States without proper authorization. Specifically, Odet Madrid-Corchado facilitated the crossing of aliens through ports of entry and collected the smuggling fees. During the conspiracy, Lawrence Madrid accepted money for using his official position to allow undocumented aliens to be smuggled through the ports of entry in El Paso.
An arrest warrant was issued for Odet Madrid-Corchado after she failed to appear with her husband for trial. Her $10,000 appearance bond has been forfeited to the Government. On May 26, 2016, a federal jury in El Paso found Lawrence Madrid guilty of conspiracy to commit alien smuggling for financial gain, aiding and abetting alien smuggling for financial gain, and two substantive counts of accepting a bribe. Lawrence Madrid is currently serving a 90-month federal prison sentence handed down on September 9, 2016,
A third defendant in this case, 46-year-old undocumented alien Maria Guadalupe Jaime-Hernandez, is also considered a fugitive after failing to appear for sentencing in September 2016. On May 5, 2016, Jaime-Hernandez pleaded guilty to one count of conspiracy to commit alien smuggling for financial gain. Her $10,000 appearance bond has been forfeited to the Government and a warrant has been issued for her arrest.
This case was investigated by the Homeland Security Investigations (HSI) Las Cruces Office together with the Department of Homeland Security-Office of Inspector General Investigations. Assistant United States Attorneys Greg McDonald and Robert Almonte are prosecuting this case on behalf of the Government.
Website Operator Charged with Defrauding More Than 2,000 Victims in New York City Apartment Search ScamRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced today the filing of a criminal complaint charging ROBERT GUZMAN with mail fraud in connection with a fraudulent apartment rental scheme that claimed more than 2,000 victims. As alleged, GUZMAN posted apartments supposedly available for rent in New York City on websites he operated, amazingapartmentrentals.com and www.equityproject.net (the “Websites”), that charged a fee to view the apartments on the Website. Between 2013 and 2016, victims paid GUZMAN (who has no real estate licenses) more than $100,000, but were never able to view the apartments purportedly available for rent on the Websites, some of which were not, in fact, in New York City, and others of which were not, in fact, available for rent. GUZMAN was arrested this morning and will be presented before the Honorable James C. Francis IV later today.
Manhattan U.S. Attorney Preet Bharara said: “Robert Guzman allegedly defrauded more than 2,000 victims who were searching for a place to live in New York City. He allegedly created websites that took advantage of these victims’ desire to find affordable housing in New York city, taking fees from victims to view apartments, when in fact some of the apartments were not even in New York or available for rent. Thanks to the work of the U.S. Postal Inspection Service, Guzman’s alleged scam has been put to an end.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “Mr. Guzman took advantage of the need for affordable housing by allegedly devising a scheme to defraud those who could least afford to lose their hard-earned funds to a scam. Today’s arrest by Postal Inspectors, exemplifies our Agency’s commitment to bring individuals to justice whose greed overshadows honesty and decency.”
According to the Complaint[1]:
From 2013 through the present, GUZMAN would post on the Websites apartments supposedly available for rent in New York City, and would charge a fee to view the apartments (the “Application Fee”). The Website included listings for apartments that were not, in fact, in New York City, as well as some that were, in fact, listed for sale, not for rent, by actual real estate companies. After the victims mailed the Application Fee to a P.O. box GUZMAN provided on the Website, the victims would never be able to view the apartments purportedly available for rent. Between 2013 and 2016, GUZMAN defrauded more than 2,000 victims of over $100,000.
* * *
GUZMAN, 42, of the Bronx, New York, was arrested this morning in the Bronx. GUZMAN was charged with mail fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the efforts of the USPIS in this investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Jacob Warren is in charge of the prosecution.
The charge contained in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint forth herein constitute only allegations, and every fact described should be treated as an allegation.
Waltham Financial Advisor to Plead Guilty to Securities FraudRead the Press Release
BOSTON – A Waltham-based financial advisor has agreed to plead guilty in connection with defrauding his clients by engaging in a multi-year “cherry-picking” scheme.
Michael J. Breton, 50, the managing partner of an investment advisory firm, Strategic Capital Management, LLC (SCM), was charged in an Information with securities fraud.
It is alleged that from 2011 through at least July 2016, Breton, using a master brokerage account, regularly purchased shares in publicly-traded companies the day that those companies announced earnings from the previous quarter. Breton allegedly purchased shares in those companies shortly before the earnings announcements and then allocated the shares after the earnings announcements. Thus, Breton allocated the shares to one of his accounts or to the client accounts after knowing whether the company had announced positive or negative news about its earnings, which determined whether the trade was likely to be profitable in the short term. Throughout the scheme, Breton allocated more profitable trades to himself and allocated unprofitable trades to his clients, thereby stealing more than $1.3 million in potential profits from his clients.
“Investment advisory clients, by necessity, entrust their advisors with great discretion over their life savings,” said Acting United States Attorney William D. Weinreb. “As today’s charges demonstrate, when advisors abuse that trust—by stealing from their very own clients—they will be held criminally accountable.”
“Motivated by greed, Mr. Breton used his clients’ trust against them,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “By making the conscious decision to place his own interests above theirs, his behavior undermined the financial security of hard-working individuals. The FBI will do everything it can to protect investors, while rooting out fraud like this.”
The securities fraud statute provides for a sentence of no greater than 25 years in prison, five years of supervised release and a fine of $5 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Breton has agreed to plead guilty to securities fraud and pay forfeiture of $1,326,696. The U.S. Attorney’s Office has agreed to recommend a sentence of no greater than three years in prison.
The Securities and Exchange Commission today filed a parallel civil action. Breton has agreed to partially resolve the SEC’s claims by, among other things, agreeing to the entry of an SEC order permanently barring him from working in the securities industry.
Acting U.S. Attorney Weinreb and FBI SAC Shaw made the announcement today. The U.S. Attorney’s Office received valuable assistance from the Securities and Exchange Commission. Sarah E. Walters, Chief of Weinreb’s Economic Crimes Unit, is prosecuting the case.
Wallingford Woman Sentenced to Prison for Distributing Heroin to Overdose VictimRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BRITTANY ESPOSITO, 28, of Wallingford, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to six months of imprisonment, followed by three years of supervised release, for distributing heroin. Judge Covello also ordered ESPOSITO to pay a $1,000 fine.
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 May 14, 2016, Old Saybrook Police and emergency medical personnel responded to a report of a suspected overdose at an apartment on Main Street in Old Saybrook. The victim, a 26-year-old male, was pronounced deceased at the scene. Investigators seized the victim’s iPhone, one empty wax paper fold and several syringes.
The investigation, which included the analysis of numerous text messages, revealed that ESPOSITO purchased heroin for the victim on credit and then provided the heroin to the victim on May 13, 2016.
ESPOSITO was arrested on June 16, 2016. On November 17, 2016, she pleaded guilty to one count of distribution of heroin.
This matter was investigated by the DEA’s New Haven Tactical Diversion Squad and the Old Saybrook Police Department, with support and assistance of the Middlesex State’s Attorney’s Office. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police.
This case was prosecuted by Assistant U.S. Attorney Robert M. Spector.
U.S. Attorney Settles ADA Complaints with Connecticut Department of Developmental ServicesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached an Americans with Disabilities Act (“ADA”) settlement with the Connecticut Department of Developmental Services (“DDS”) to ensure that DDS provides effective communication for individuals with disabilities.
The settlement agreement resolves three ADA complaints filed by the State’s Office of Protection and Advocacy for Persons with Disabilities on behalf of two individuals who are hearing impaired. The complaints allege that DDS failed to provide effective communication during certain programs and meetings by failing to make available sign language interpreters or appropriate auxiliary aids. DDS is working with the U.S. Department of Justice to develop and amend its policies and practices to ensure compliance with the ADA and the Department’s implementing regulations.
“Individuals who have disabilities must not be denied equal access to the services offered by the State of Connecticut because of their disability,” said U.S. Attorney Daly. “We commend DDS for voluntarily agreeing to enter this settlement agreement, and to ensure they are providing effective communication to persons who are hearing impaired.”
The ADA requires “public entities,” including local governments and state agencies, to ensure effective communication with qualified individuals with disabilities. Under this agreement, a person who is deaf or hard of hearing will be able to benefit from the same services as every other person. For individuals who are deaf or hard of hearing, auxiliary aids include qualified sign language or oral interpreters, use of relay services, computer-assisted real time transcription, and, for simple communications, the exchange of written notes.
The settlement agreement specifically requires DDS to:
- Conduct a detailed audit of its services to make sure individuals who are deaf or hard of hearing are being provided with effective communication during all programs and services;
- Ensure that appropriate auxiliary aids and services, including qualified interpreters, and specifically tactile interpreters, are made available to all individuals who are deaf or hard of hearing;
- Set aside funding to ensure that auxiliary aids and services are timely provided to clients;
- Ensure its policies and practices are nondiscriminatory, and provide effective communication for people with communication disabilities, including the provision of sign language interpreters;
- Post a notice of the policy in public areas;
- Train staff on the policies.
This matter was handled by Assistant U.S. Attorneys Ndidi N. Moses and Vanessa Roberts Avery, with the assistance of the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Individuals who believe that they may have been victims of discrimination can file a complaint with the U.S. Attorney’s Office at 203-821-3700. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Additional information about the ADA can be found at www.ada.gov, or by calling the Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD).
Two Newark, New Jersey, Men Sentenced to More Than 14 Years in Prison for Carjacking and Other ChargesRead the Press Release
NEWARK, N.J. – Two Newark men who collectively carried out two armed carjackings and one attempted carjacking in September 2013 were each sentenced to prison today, U.S. Attorney Paul J. Fishman announced.
Dion Hines, 23, and Roosevelt Robinson, 25, were sentenced to 192 and 171 months in prison, respectively. Hines previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with one count of attempted carjacking, two counts of carjacking, and one count of using a firearm during a crime of violence. Robinson previously pleaded guilty to an information charging him with one count of attempted carjacking, one count of carjacking, and one count of using a firearm during a crime of violence. Judge Hayden imposed both sentences today in Newark federal court.
According to documents filed in this case and statements made in court:
On Sept. 22, 2013, Hines, Robinson, and another male individual approached a Mercedes Benz sedan that was parked in a residential driveway in Newark. Hines brandished a handgun and ordered the driver to get out of the vehicle. The victim eventually got out of the car and Robinson sat in the driver’s seat. After Hines and the other male individual fled on foot, the victim fought Robinson, pulled him from the Mercedes Benz, and got back into the vehicle. Hines returned and fired two shots at the Mercedes Benz. Afterwards, Hines, Robinson, and the other male individual fled the scene.
On Sept. 26, 2013, Hines approached two individuals at a parking lot in Newark, threatened them with a handgun, and demanded the keys to their vehicles. After one of the victims gave Hines the keys to a 2009 Acura sedan, he got into the car and fled.
On the morning of Sept. 27, 2013, Hines was traveling in a dark-colored SUV driven by another individual. The SUV pulled in front of a Range Rover stopped at an intersection in Belleville, New Jersey, blocking the Range Rover’s path. Hines got out of the SUV and pointed a handgun at the driver of the Range Rover. Robinson, who followed the SUV in a separate vehicle, pulled over and stood watch. Hines pulled the driver out of the Range Rover, got into the vehicle and fled, followed by the SUV and Robinson’s vehicle.
In addition to the prison terms, Judge Hayden sentenced both Hines and Robinson to five years of supervised release.
U.S. Attorney Fishman credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; and the Newark, Elizabeth, and Belleville police departments with the investigation.
The government is represented by Assistant U.S. Attorney J. Jamari Buxton of the U.S. Attorney’s Office Organized Crime/Gangs in Newark.
Defense Counsel:
Hines: John Yauch Esq., Assistant Federal Public Defender, Newark
Robinson: Paul Condon Esq., Jersey City, New Jersey
Two Individuals Indicted on Cocaine ChargesRead 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 Tyrone Pennick, 40, of Amherst, NY, and Geneva Smith, 30, of Buffalo, NY, with conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of cocaine. The charge carries a minimum penalty of five years in prison and a maximum of 40 years.
Defendant Pennick is currently charged in a separate federal indictment for his role as the leader of a large-scale cocaine trafficking organization. In June 2014, Pennick was released under the condition of home incarceration.
Assistant U.S. Attorneys Joel L. Violanti and Laura A. Higgins, who are handling the case, stated that according to the indictment, on November 17, 2016, the Erie County Sheriff’s Office conducted surveillance in the area of Pennick’s residence at 489 Emerson Drive in Amherst. Investigators observed a female, later identified as defendant Smith, leaving the residence carrying an open-top, tote style bag and entering a bronze colored Ford Flex.
Investigators continued to monitor the vehicle and noted that Smith began watching the surveillance vehicle closely in the rearview mirror. Smith subsequently began driving in an erratic manor at which point the defendant was observed reaching to the backseat area and moving the tote bag to the front seat. Investigators activated their emergency lights and conducted a traffic stop of the vehicle. Smith was detained and investigators removed what appeared to be two containers containing suspected cocaine from the tote bag.
A search warrant was then executed at Pennick’s residence at 489 Emerson Drive. Investigators recovered a metal press, digital scale, packaging material, a box of rubber gloves, a plastic bag containing disposable dust masks, a vacuum sealer, a vacuum sealed bag containing $49,990 in U.S. currency concealed in the dishwasher and a plastic bag containing suspected cocaine weighing approximately one ounce concealed in a box of oatmeal. Pennick was then arrested.
The indictment is the result of an investigation by the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
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.
Two Former Army Officials and Contractor Indicted for Bribery Scheme Involving Contracts at Aberdeen Proving GroundRead the Press Release
Baltimore, Maryland – A federal grand jury has returned a superseding indictment charging John Kays, age 42, his wife, Danielle N. Kays, age 41, both of Bel Air, Maryland, and Matthew Barrow, age 42, of Toledo, Ohio, with conspiracy and bribery charges related to contracting at the U.S. Army Communications-Electronics Command headquartered at Aberdeen Proving Ground (APG), in Harford County, Maryland. The superseding indictment adds Danielle Kays as a defendant, and charges John and Danielle Kays with making false statements on their government ethics forms. The superseding indictment was returned on January 17, 2017, and unsealed today.
The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge L. Scott Moreland, Mid-Atlantic Fraud Field Office, Major Procurement Fraud Unit, U.S. Army Criminal Investigation Command; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
In March 2006, the U.S. Army Contracting Command at APG awarded a 10-year, $19.2 billion contract to seven prime contractors to provide technology services to support the integrated engineering, business operations, and logistics needs for the Army. John and Danielle Kays each had leadership positions related to this contract. From September 2006 through April 2011, a series of task orders for services pursuant to the contract were placed.
According to the seven-count superseding indictment, John and Danielle Kays were civilian employees who represented the Army on these types of multi-year contracts. From January 2011 until his resignation from government service in July 2014, John Kays held the position of Deputy Project Manager for Mission Command, in effect the number two position for Mission Command. From June 2009 through June 2012, Danielle Kays was the Deputy Director of the Technical Management Division, and from 2012 until her resignation from government employment in October 2015, Danielle Kays was the Product Director of Common Hardware Systems. Barrow was the President and owner of MJ-6, LLC, a company which he and his wife formed in Ohio in 2008 to obtain military subcontracts. From June 2008 through August 2010, Barrow was also employed as a procurement manager by a glass company in Ohio.
The superseding indictment alleges that from August 2008 to June 2014, John and Danielle Kays agreed to take official actions favorable to Barrow and MJ-6 in return for Barrow paying them a total of approximately $800,000. Specifically, the Kays used their official positions to add MJ–6 as a subcontractor acceptable to the Army, to steer potential employees for government contractors to work for MJ-6, to approve MJ-6 employees to work on various TOs, and to approve the pay rates, status reports, and travel reimbursements for MJ-6 employees. The indictment alleges that the Kays steered subcontracts worth approximately $21 million to MJ-6.
In order to conceal their corrupt relationship Barrow caused the glass company he worked for to purportedly enter into contracts and make payments to Transportation Logistics Services, LLC, a company incorporated by John Kays; and later made payments to the Kays in cash, which Barrow allegedly withdrew from his personal accounts and from MJ-6 accounts. According to the superseding indictment, Barrow withdrew the money in amounts less than $10,000 to avoid bank reporting requirements. To further conceal the scheme, the superseding indictment alleges that John and Danielle Kays made false statements on the government ethics forms that they were required to file by failing to disclose the cash payments received from Barrow. According to the superseding indictment, the Kays used the cash for their personal benefit, including: purchasing two new vehicles; a power boat, jewelry, a pool party at their country club, and to pay credit card bills.
John Kays, Danielle Kays, and Barrow each face a maximum sentence of five years in prison for conspiracy, and a maximum of 15 years in prison for bribery, $250,000 per count in criminal fines or three times the value of whatever the Kays were illegally paid, plus forfeiture of the proceeds of the offense. John and Danielle Kays both face a maximum of five years in prison for each of two counts of making false statements. The court has entered an order restraining assets of the Kays in Harford County including real estate, a Nissan Armada, a 2012 BMW, a 2012 Yamaha power boat and a pair of diamond earrings. An order has also been entered restraining the assets of Barrow in Toledo, including, two pieces of real estate, a 2016 GMC Yukon, 2015 Buick Enclave, a 2011 GMC Yukon Denali, a power boat, a Wave Runner and funds in three bank accounts.
Kays will have her initial appearance in U.S. District Court in Baltimore on Friday, January 23, 2017, at 11 a.m. before U.S. Magistrate Judge A. David Copperthite. No court appearance has been scheduled yet for John Kays and Matthew Barrow.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrates the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein thanked the DCIS, Army Criminal Investigation Command, and FBI for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Joyce K. McDonald and Harry M. Gruber, who are prosecuting the case.
Three Individuals Arrested and Charged for Drug-Related Murder in the BronxRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced today charges against three individuals, SEAN PETER, a/k/a “Huggie,” JASON CAMPBELL, a/k/a “Holiday,” a/k/a “Fish,” and STEVEN SYDER, a/k/a “Esteban,” in connection with the drug-related murder of 19-year-old Brian Gray in the Bronx on October 2, 2012. PETER, CAMPBELL, and SYDER were arrested today and will be presented before Magistrate Judge James C. Francis IV. The case has been assigned to United States District Judge Naomi Reice Buchwald.
Manhattan U.S. Attorney Preet Bharara stated: “The defendants are charged with shooting and killing a young man on the streets of the Bronx to further their alleged narcotics business. Drug-related violence threatens the safety and security of all New Yorkers, and we will continue to make our streets and neighborhoods safe. We commend our partners at the FBI and NYPD for the exemplary work that led to the charges brought today.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. stated: “Drug dealers use violence and intimidation to assert their dominance over others they see as potential rivals in their territory. That violence often results in someone being shot and killed, and the community more fearful that the violence won’t stop. The FBI/NYPD Violent Crimes Task Force works day after day to prevent these criminals from returning to the streets, and to stop the cycle of crime.”
NYPD Commissioner James P. O’Neill stated: “I commend the efforts of the detectives and prosecutors whose hard work resulted in the arrest of three defendants, charged in this homicide. The NYPD will continue to target those who mar our communities with drugs and violence, ensuring that those responsible are brought to justice.”
As alleged in the Indictment unsealed today in Manhattan federal court[1]:
In 2012, PETER, CAMPBELL, and SYDER conspired to distribute and possess with intent to distribute marijuana. On October 2, 2012, PETER, CAMPBELL, and SYDER participated in the killing of Brian Gray by shooting him in furtherance of that marijuana distribution conspiracy. The murder took place in the vicinity of 3309 Barker Avenue in the Bronx, New York.
Count One charges PETER, CAMPBELL, and SYDER with conspiring to distribute and possess with intent to distribute marijuana, which carries a maximum sentence of five years in prison.
Count Two charges PETER, CAMPBELL, and SYDER with using a firearm to murder Gray in connection with the marijuana distribution conspiracy, which carries a maximum sentence of death, or life in prison.
Count Three charges PETER, CAMPBELL, and SYDER with brandishing and discharging a firearm in connection with the marijuana distribution conspiracy, which carries a maximum sentence of life in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the Court.
* * *
PETER, 33, CAMPBELL, 30, and SYDER, 33, are all of the Bronx, New York.
Mr. Bharara praised the outstanding investigative work of the FBI-NYPD Joint Bank Robbery/Violent Crimes Task Force. He also thanked the Teaneck, New Jersey, Police Department for all of their assistance and support in the ongoing investigation.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Sagar K. Ravi, Michael Gerber, and Hadassa Waxman are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
St. Anthony Man Indicted for Unlawful Distribution of TramadolRead the Press Release
POCATELLO – Paul Allen, 61, of St. Anthony, Idaho, was indicted January 24, 2017, by a federal grand jury in Pocatello on three counts of unlawful distribution of a controlled substance, U.S. Attorney Wendy J. Olson announced.
The indictment alleges that on or about March 12, 2016, March 19, 2016, and April 2, 2016, Allen distributed Tramadol, a Schedule IV controlled substance, without lawful authorization.
A charge of unlawful distribution of a controlled substance is punishable by up to 20 years in prison, a maximum fine of $1,000,000, and at least three years of supervised release. The government also is seeking forfeiture of the proceeds involved in the offense.
The case was investigated by the Fremont County Sheriff’s Office, and the Drug Enforcement Administration.
An indictment is a means of charging a person with criminal activity. It is not evidence. A person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
South Carolina Man Sentenced to Federal Prison for Drug Dealing, Shooting Police OfficerRead the Press Release
Contact Person: Nick Bianchi (843) 727-4381
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Tray Jabari Graves, age 29, of Garnett, South Carolina was sentenced today in federal court in Charleston, South Carolina, for conspiracy to distribute crack cocaine and cocaine, and discharging a firearm in furtherance of a drug trafficking crime. Senior United States District Judge Margaret B. Seymour of Charleston sentenced Graves to twenty-eight years imprisonment, to be followed by ten years supervised release.
Evidence presented at the change of plea hearing established that law enforcement conducted multiple undercover crack and cocaine purchases from Graves and other co-conspirators. On June 17, 2015, federal agents executed search warrants at Graves’ residence, as well as his mother’s residence which Graves used to conduct drug trafficking. When the Beaufort County Sheriff’s Office SWAT team made entry into Graves’ residence, Graves shot Sgt. Mark Cobb of the SWAT team in the shoulder as officers opened Graves’ bedroom door. After Graves was apprehended, agents recovered approximately 33 grams of crack cocaine, a kilogram of cocaine, three firearms, a drum magazine loaded with eighty-one rounds of ammunition, a money counter and over $6,500 from Graves’ bedroom. Agents also recovered approximately 73 grams of crack cocaine, 214 grams of cocaine and 4 firearms from Graves’ mother’s residence.
Following Graves’ sentencing, United States Attorney Beth Drake stated, “Drug dealers armed with firearms put our community and our officers at risk as this case demonstrates. Fortunately, Sgt. Cobb has recovered physically. We extend our most sincere thanks to the officers who protect and serve, most particularly Sgt. Cobb and the Beaufort County Sheriff’s Office SWAT team that made the arrest in this case.” Jason Sandoval, Resident Agent in Charge of the Drug Enforcement Administration (“DEA”) Charleston Office added, “violence in our community is often perpetrated by the same organizations distributing drugs. The Tray Graves case is a telling and unfortunate example of a young man who made a choice to be a violent criminal. Most disturbing among his felonious actions, Mr. Graves’ conduct could have cost a dedicated and honorable law enforcement officer his life. Rule of law and justice have prevailed, however. As a consequence, Mr. Graves will spend most of the next three decades in federal prison for violence and poison sown by his hand in the community.”
The case was investigated by agents of the DEA and the Beaufort County Sheriff’s Office. Assistant United States Attorney Nick Bianchi of the Charleston office prosecuted the case.
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Smith County Man Sentenced for East Texas Drug TraffickingRead the Press Release
TYLER, Texas – A 46-year-old Tyler, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston.
Chad Hollowell pleaded guilty on Sep. 24, 2015, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 151 months in federal prison today by U.S. Fifth Circuit Court of Appeals Judge Catharina Haynes. Hollowell was also ordered to forfeit approximately $10,000 cash and multiple firearms.
According to information presented in court, in 2014, Hollowell and others trafficked more than 500 grams of methamphetamine through the Eastern District of Texas. Hollowell was indicted by a federal grand jury on Mar. 18, 2015 and charged with drug trafficking crimes.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Canton Police Department and was prosecuted by Assistant U.S. Attorney Frank Coan.
Sedalia Man Sentenced for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Sedalia, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Darrick Thomas Brown, 38, of Sedalia, was sentenced by U.S. District Judge Brian C. Wimes to seven years in federal prison without parole.
On Aug. 10, 2016, Brown pleaded guilty to being a felon in possession of a firearm. Brown admitted that he was in possession of a Hi-Point .40-caliber pistol on Feb. 28, 2016.
According to court documents, Pettis County Sheriff’s deputies were called to a Super 7 Motel in Sedalia on Feb. 28, 2016, in response to a report that shots were fired. Deputies encountered Brown coming out of a motel room and observed a gun lying on the floor inside the bedroom. Deputies found evidence indicating that a gun had been fired twice inside the room. One bullet travelled through a microwave oven and entered the bedroom wall; the other bullet struck the top of the entertainment center. Brown’s girlfriend’s two young children occupied the adjacent room.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Brown has prior felony convictions for distributing controlled substances, failure to appear in court, leaving the scene of an accident, resisting/interfering with an arrest, assault, possessing a controlled substance and endangering the welfare of a child.
Brown was on state parole when he committed this federal offense. According to court documents, Brown has ties with a Sedalia street gang and is an active member of that gang. Brown has a history of substance abuse, including extensive use of marijuana, cocaine and methamphetamine.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pettis County, Mo., Sheriff’s Department.
Rusk County Man Sentenced for East Texas Drug TraffickingRead the Press Release
TYLER, Texas – A 32-year-old Laneville, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Joshua Lyle Harned pleaded guilty on Mar. 15, 2016, to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking crimes. Harned was sentenced to 147 months in federal prison today by U.S. Fifth Circuit Court of Appeals Judge Catharina Haynes.
According to information presented in court, on Oct. 16, 2014, law enforcement officers went to Harned’s residence in Rusk County t the request of Texas Child Protective Services and found him in possession of a pistol. Harned admitted to being in possession of methamphetamine. A search of the residence revealed 214 grams of methamphetamine, drug paraphernalia and multiple additional firearms. Harned had $2,657 in cash on him at the time. Harned admitted to making at least $20,000 from the delivery of methamphetamine between January 2014 and May 2015. Harned was arrested by the U.S. Marshals Service on July 20, 2015 in Bear Creek, AL. At the time of his arrest, Harned was in possession of methamphetamine and firearms. Harned was indicted by a federal grand jury on Aug. 19, 2015 and charged with drug trafficking crimes.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Rusk County Sheriff’s Office and the U.S. Marshals Service and prosecuted by Assistant U.S. Attorney Jim Noble.
Ranking Nashville Gang Member Pleads Guilty to Gun and Robbery ChargesRead the Press Release
Deunta Finch aka LT, 27, of Nashville, Tennessee, pleaded guilty yesterday in U.S. District Court to being a felon in possession of a firearm and ammunition; attempting to commit a robbery affecting interstate commerce; and to possessing and discharging a firearm in that attempted robbery, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
According to the statement of facts, Finch was a ranking member of the Athens Park Bloods street gang and had multiple, previous state felony convictions, including two convictions for being a felon in possession of firearms, a conviction for robbery and a conviction for reckless endangerment with a weapon. As a convicted felon, Finch was prohibited from possessing firearms or ammunition.
The statement of facts outlines that on June 21, 2015, Finch brandished a firearm and stole another firearm from a juvenile, while in the J.C. Napier public housing development. Two days later, Finch was riding in a car with another juvenile and became involved in a shootout with the occupants of another vehicle. Finch was injured in the shootout, but left the scene and was later located and transported to a local hospital for treatment. After treatment, he was arrested on outstanding state warrants and then bonded out of custody. Finch failed to appear in court as required and was arrested by Metro Nashville SWAT officers in another car on November 12, 2015. A 9mm pistol was recovered from the glove compartment of that car during this arrest. Ballistics evidence revealed that the recovered firearm had been used one week earlier, on November 5, 2015, in a drug related shooting, in which Finch robbed a drug dealer in the Lexington Garden Apartments in Madison, Tennessee. His intended victim resisted, and Finch shot and severely wounded the victim. Finch then left the area with a quantity of cocaine which he took from his victim.
The plea agreement calls for Finch to be sentenced to 15 years in prison, to be followed by five years of supervised release. Finch will be sentenced on May 15, 2017.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Metropolitan Nashville Police Department, Gang Division. The case is being prosecuted by Assistant United States Attorney Sunny A.M. Koshy.
Owner of Offshore Brokerage Firm Sentenced to Prison for Role in International Money LaunderingRead the Press Release
A Canadian citizen and permanent resident of Costa Rica was sentenced today to 48 months in prison for his role in an international money laundering conspiracy in connection with international “pump and dump” securities fraud scheme.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Special Agent in Charge Timothy Slater of the FBI’s Washington Field Office Criminal Division made the announcement.
Michael J. Randles, 49, was sentenced by U.S. District Judge Anthony J. Trenga of the Eastern District of Virginia. In October 2016, Randles pleaded guilty to one count of money laundering conspiracy.
According to admissions made in connection with his plea agreement, Randles controlled and operated an offshore brokerage and money laundering platform located in San Jose, Costa Rica, that went by various names, including Moneyline Brokers, Sandias Azucaradas, and Trinity Asset Services (collectively Moneyline) with his co-conspirator Harold Bailey Gallison II. Randles admitted that the purpose of Moneyline was to trade securities, primarily microcap or “penny stocks,” through U.S. and offshore accounts. While managing Moneyline’s Costa Rica office, Randles exercised authority over banking and financial transactions; operated Moneyline’s unregistered securities business in Europe; and opened U.S. and offshore brokerage and bank accounts, including in Europe and elsewhere, that were used to facilitate the conspiracy. Randles admitted that Moneyline often did business under the names of various shell companies to conceal both the true source and ownership of the securities and the flow of the funds.
Further, in connection with his plea, Randles admitted that Moneyline laundered approximately $1 million in proceeds from the pump and dump of the Colorado-based company Bryn Resources Inc. While Bryn Resources purported to be engaged in the mining and exploration of precious metals in Canada, in reality, Bryn was a shell company with no or nominal operations or assets. During the promotion of Bryn Resources, over 3.5 million shares of the company were liquidated through Moneyline accounts, generating the proceeds that were laundered through Moneyline accounts in the United States and overseas.
Three of Randles’s co-conspirators, Gallison, Ann Marie Hiskey and Roger G. Coleman, previously pleaded guilty in the case. Gallison was sentenced to serve 216 months in prison; Hiskey and Coleman were each sentenced to two years’ probation.
FBI’s Washington Field Office investigated the case. Senior Trial Attorney N. Nathan Dimock and Trial Attorney Michael O’Neill of the Criminal Division's Fraud Section and Assistant U.S. Attorney Grace L. Hill of the Eastern District of Virginia prosecuted the case. The Securities and Exchange Commission, the Financial Industry Regulatory Authority and the Criminal Division’s Office of International Affairs also provided significant assistance.
Owner of Offshore Brokerage Firm Sentenced for Money LaunderingRead the Press Release
ALEXANDRIA, Va. – Michael J. Randles, 49, a Canadian citizen and permanent resident of Costa Rica, was sentenced today to 48 months in prison for his role in an international money laundering conspiracy in connection with international “pump and dump” securities fraud scheme.
This sentence takes into account 11 months of detention Randles served in Spain while contesting extradition to the United States, for which Randles will receive no further credit. The Court also ordered a 3-year term of supervised release, full restitution, and forfeiture.
According to admissions made in connection with his plea agreement, Randles controlled and operated an offshore brokerage and money laundering platform located in San Jose, Costa Rica, that went by various names, including Moneyline Brokers, Sandias Azucaradas, and Trinity Asset Services (collectively Moneyline) with his co-conspirator Harold Bailey Gallison II. Randles admitted that the purpose of Moneyline was to trade securities, primarily microcap or “penny stocks,” through U.S. and offshore accounts. While managing Moneyline’s Costa Rica office, Randles exercised authority over banking and financial transactions; operated Moneyline’s unregistered securities business in Europe; and opened U.S. and offshore brokerage and bank accounts, including in Europe and elsewhere, that were used to facilitate the conspiracy. Randles admitted that Moneyline often did business under the names of various shell companies to conceal both the true source and ownership of the securities and the flow of the funds.
Further, in connection with his plea, Randles admitted that Moneyline laundered approximately $1 million in proceeds from the pump and dump of the Colorado-based company Bryn Resources Inc. While Bryn Resources purported to be engaged in the mining and exploration of precious metals in Canada, in reality, Bryn was a shell company with no or nominal operations or assets. During the promotion of Bryn Resources, over 3.5 million shares of the company were liquidated through Moneyline accounts, generating the proceeds that were laundered through Moneyline accounts in the United States and overseas.
Three of Randles’s co-conspirators, Gallison, Ann Marie Hiskey and Roger G. Coleman, previously pleaded guilty in the case. Gallison was sentenced to serve 216 months in prison; Hiskey and Coleman were each sentenced to two years’ probation.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Kenneth A. Blanco, Acting Assistant Attorney General of the Justice Department’s Criminal Division; and Timothy Slater, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorney Grace L. Hill and Senior Trial Attorney N. Nathan Dimock and Trial Attorney Michael O’Neill of the Criminal, Division’s Fraud Section prosecuted the case. The Securities and Exchange Commission, the Financial Industry Regulatory Authority and the Criminal Division’s Office of International Affairs also provided significant assistance.
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. 1:15-cr-178.
Ohio Woman Sentenced to Five Years in Prison for Conspiring to Exploit Foreign Workers at Minnesota FarmRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of SANDRA LEE BART, 69, to five years in prison for requiring foreign workers on temporary H-2A work visas to pay illegal fees and kickbacks. BART was found guilty by a jury of conspiring with others to commit fraud.
Co-defendant WILIAN SOCRATE CABRERA pleaded guilty on July 14, 2016, to conspiracy to commit fraud in foreign labor contracting, and co-defendant JOHN JAMES SVIHEL pleaded guilty on June 16, 2016, to conspiracy to commit fraud in foreign labor contracting and agreed to pay more than $974,000 in restitution, unpaid wages, and a forfeiture money judgment.
“The Diplomatic Security Service is pleased with the success of this case. This shows the positive outcome when federal agencies work together to stop criminals from exploiting U.S. visas and foreign workers for illegal profit,” said Diplomatic Security Service’s Minneapolis Resident Agent-In-Charge Daniel Bleakmore. “We’re committed to investigating U.S. business operators who cause criminal visa applications at overseas U.S. Embassies and Consulates.”
As proven at trial, from 2008 to May of 2015 BART and CABRERA operated an unregistered business called “Labor Listo,” which they used to recruit employers like SVIHEL, who ran Svihel Vegetable Farm in Foley, Minn., to hire seasonal workers from the Dominican Republic on temporary work visas. The visa programs require employers to pay for workers’ housing and travel expenses to and from their home country, and forbid employers from collecting recruitment fees or wage kickbacks. BART, CABRERA, and SVIHEL violated all of these rules.
As proven at trial, CABRERA charged the workers a one-time recruitment fee of between $420 and $2,385, as well as an annual fee of $374, which he split with BART. The workers were told that if they didn’t pay the fees they would not be allowed to return for the following growing season. At the end of each season, SVIHEL collected a percentage of the workers’ wages along with full reimbursement from the workers for their flights. BART, CABRERA, and SVIHEL were clearly using the program to profit from the workers. “Costs – pass on to applicant,” was written on a business plan from a 2008 Labor Listo meeting between BART and CABRERA.
As proven at trial, BART and CABRERA recruited SVIHEL in 2010 to hire four Dominican workers using the H-2A visa program, which provides temporary visas to agriculture workers, falsely telling him that a church in the Dominican Republic would pay for workers’ airfares for the first year. When the wage Svihel was required to pay the workers was increase from $9.75 per hour to $10.62 per hour in 2011, SVIHEL expressed hesitation in continuing to use the program. BART told SVIHEL that the workers would be willing to pay wage and airfare kickbacks to make up the difference. Over three farming seasons, SVIHEL kept a total of more than $200,000 in kickbacks and spent it on travel and leisure expenses.
As proven at trial, when BART learned there was an investigation into the working conditions at Svihel Farm, she tried to have CABRERA talk the workers into signing a document retracting any statements they made to the Department of Labor about illegal fees. SVIHEL and BART exchanged a list of workers, labeling the workers “G” for good or “B” for bad, based on which workers they thought had spoken to the Department of Labor. The workers labeled “bad” were sent back to the Dominican Republic first in the 2014 season and were not invited back in 2015.
This case is the result of an investigation conducted by the U.S. Department of State Diplomatic Security Service, U.S. Department of Labor Wage and Hour Division, U.S. Department of Labor Office of the Inspector General, and the Homeland Security Investigations Document and Benefit Fraud Task Force.
This case is being prosecuted by Assistant United States Attorneys and Manda Sertich and David Maria.
Defendant Information:SANDRA LEE BART, 69
Seven Hills, OhioConvicted:
• Conspiracy to commit false swearing in an immigration matter, 1 count
• Conspiracy to commit fraud in foreign labor contracting, 1 count
• Conspiracy to commit wire and mail fraud, 1 countSentenced:
• Five years in prisonWILIAN SOCRATE CABRERA, 44
Dominican RepublicConvicted:
• Conspiracy to commit fraud in foreign labor contracting, 1 countSentenced:
• 26 months in prisonJOHN JAMES SVIHEL, 53
Foley, Minn.Convicted:
• Conspiracy to commit fraud in foreign labor contracting, 1 countSentenced:
• Six months in prison