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Wednesday 25 January 2017
Ninth Ward Heroin Dealer Pleads Guilty to Conspiracy ChargeRead the Press Release
U.S. Attorney Kenneth A. Polite announced that COREY CELESTINE, age 33, pled guilty today to participating in a heroin distribution conspiracy in the lower Ninth Ward of New Orleans. CELESTINE pled guilty to conspiracy to distribute one kilogram or more of heroin.
According to court documents, CELESTINE conspired with ULYESSE SANTIAGO, CLARENCE PETER SANTIAGO, DWAYNE SMOTHERS, and others to sell heroin near Bonart Park in New Orleans’ lower Ninth Ward. During the course of this investigation, agents performed several controlled purchases of heroin from CELESTINE, and he was subsequently arrested with $13,000 in cash. The investigation, led by the U.S. Drug Enforcement Administration, began in 2013 and resulted in the arrest of ten individuals in New Orleans, Terrebonne Parish, Jefferson Parish, and Texas.
CELESTINE faces a minimum of 10 years of imprisonment and a maximum of life imprisonment, a fine of up to $10,000,000 and at least five years of supervised release. His codefendants, ULYESSE SANTIAGO, CLARENCE PETER SANTIAGO, and DWAYNE SMOTHERS, have all previously entered guilty pleas in this matter. All three codefendants are scheduled for sentencing on February 22, 2017. U.S. District Judge Martin L.C. Feldman set sentencing for CELESTINE on May 17, 2017.
U.S. Attorney Polite praised the work of the DEA New Orleans Division Office, along with the assistance from the FBI New Orleans Field Office, the New Orleans Police Department, the Terrebonne Parish Sheriff’s Office, and the Louisiana State Police in investigating this matter. Assistant United States Attorney Matthew Payne is in charge of the prosecution.
New Orleans Man Sentenced for Conspiracy to Commit Federal Bribery and Honest Services Wire FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LESTER MORNAY, 68, of New Orleans, was sentenced today after previously pleading guilty to a one-count Bill of Information charging him with conspiracy to commit bribery and honest services wire fraud.
U.S. District Judge Martin L.C. Feldman sentenced MORNAY to one year of probation and a $100 special assessment. Additionally, MORNAY was ordered to participate in the Rise and Recovery Program.
According to court records, beginning in September 2013 and continuing until January 2015, MORNAY and several others participated in a conspiracy to commit bribery and honest services wire fraud. Court records indicate that IRA THOMAS, in his role as an Orleans Parish School Board (“OPSB”) Member, engaged in a scheme to defraud Orleans Parish and its citizens of his honest services through bribery and a kickback scheme, whereby THOMAS used his public office and official capacity to provide favorable treatment, including attempting to facilitate the awarding of a contract, that was designed to benefit the business and financial interest of an individual who provided him with a bribe and kickback in the form of cash payment disguised as a campaign contribution.
Additionally, court records show that in September 2013, a cooperating witness (“CW”) was approached by ARMER BRIGHT, an OPSB employee, who offered the CW a janitorial services contract that would soon be up for bid by the OPSB in exchange for a monetary payoff. During the fall of 2013, the CW, THOMAS, BRIGHT, and at times MORNAY, met to discuss this contract. These conversations were recorded by the CW with the assistance of the FBI. Ultimately, it was decided that the CW would pay $5,000 to THOMAS in the form of a “campaign contribution” in exchange for THOMAS’ and the OPSB employee’s assistance regarding the janitorial services contract. In December 2013, the CW delivered $5,000 in cash to MORNAY acting as a conduit for THOMAS, which was video recorded. This money was then delivered to THOMAS. During the fall of 2014, THOMAS and BRIGHT discussed over recorded telephone conversations how to alter the bid process so that the CW would be given an improper advantage in bidding for the janitorial services contract, which was valued over $5,000.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorney Sean Toomey was in charge of the prosecution.
New Bedford Gym Owner Sentenced for Heroin TraffickingRead the Press Release
BOSTON – The owner of a New Bedford gym was sentenced yesterday in U.S. District Court in Boston in connection with a wide-ranging conspiracy involving heroin distribution throughout Bristol County, Mass. and Providence, R.I.
Sharik Mendes, 39, of New Bedford, was sentenced by U.S. District Court Judge Douglas Woodlock to 30 months in prison. In October 2016, he pleaded guilty to one count of conspiracy to distribute and possess with the intent to distribute heroin.
In 2015 and 2016, Mendes, the owner and operator of the HEART gym in New Bedford, was receiving large quantities of heroin from two suppliers based in Rhode Island. Mendes then distributed the heroin to lower-level distributors in the New Bedford area. In total, Mendes accepted responsibility for conspiring to distribute between 600 and 700 grams of heroin.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Fall River Police Chief Daniel S. Racine; and New Bedford Police Chief Joseph C. Cordeiro, made the announcement. Assistant U.S. Attorney Eric S. Rosen of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
Minneapolis Man Sentenced for Human Trafficking of a MinorRead the Press Release
FARGO - US Attorney Christopher C. Myers announced that on January 24, 2017, Steven Edward Meierding, 50, Minneapolis, Minn., was sentenced before US District Judge Ralph R. Erickson to serve 10 years in prison for Sex Trafficking of a Child. Judge Erickson also sentenced Meierding to serve 15 years of supervised release and pay a $100 special assessment to the Crime Victims’ Fund, and must register as a sex offender.
This case came to the attention of law enforcement after the Fargo Police Department encountered a 17-year-old runaway during a traffic stop. Further investigation by Department of Homeland Security Investigators and a Fargo Police Department Detective revealed that Meierding transported the 17-year-old girl from Minneapolis, MN, to Fargo, ND, for the purpose of prostitution. Specifically, Meierding met the 17-year-old girl at a gas station in Minneapolis and subsequently took her to his residence where he took photos of her that were later used in Backpage.com advertisements for commercial sex. Sometime between May 2015 and June 15, 2015, Meierding then transported the underage girl to Fargo where he dropped her off at a residence where his co-defendant, Brenda Godoy, was residing. Meierding returned to Minneapolis, but before he could return to Fargo to pick up the underage girl, she was recovered by the Fargo Police Department during the above-mentioned traffic stop. Electronic evidence recovered during the investigation further revealed that Meierding and his co-defendant received a portion of the proceeds that the underage girl obtained as a result of engaging in commercial sex acts.
This case was investigated by the Department of Homeland Security-Homeland Security Investigations, Fargo Police Department, and the North Dakota Bureau of Criminal Investigation.
Assistant US Attorney Jennifer Puhl prosecuted the case.
This case was prosecuted with the assistance of the North Dakota Human Trafficking Task Force (NDHTTF), which includes regional response teams that consist of federal, state, and local law enforcement and victim service providers working together to identify and rescue human trafficking victims as well as investigate and prosecute human trafficking cases. Led by the U.S. Attorney’s Office, BCI, and the North Dakota Counsel on Abused Women Services (CAWS), the NDHTTF is dedicated to addressing the individualized needs of human trafficking victims and the apprehension, investigation, and prosecution of the perpetrators of human trafficking.
Middlesex County, New Jersey, Man Gets over Three Years in Jail for Particpating in International $200 Million Credit Card ScamRead the Press Release
TRENTON, N.J. – An Iselin, New Jersey, man was sentenced today to 46 months in prison for his role in one of the largest credit card fraud schemes ever charged by the U.S. Department of Justice, U.S. Attorney Paul J. Fishman announced.
Babar Qureshi, 63, previously pleaded guilty before U.S. District Judge Anne E. Thompson to Count One of an indictment charging him with conspiracy to commit bank fraud. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Qureshi was originally charged in February 2013 as part of a conspiracy to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a fraudulent credit profile with the major credit bureaus; pump up the credit of the false identity by providing false information about that identity’s creditworthiness to those credit bureaus; and finally, run up large loans.
The scope of the criminal fraud enterprise required Qureshi and other conspirators to construct an elaborate network of false identities. Across the country, the conspirators maintained more than 1,800 “drop addresses,” including houses, apartments and post office boxes, which they used as the mailing addresses of the false identities.
Qureshi’s role in the conspiracy was to take the phony cards and charge large amounts at complicit merchants, who would then pay him a portion of the charge. He used phony bank accounts to conceal his involvement and receive proceeds from the fraud, which he used for personal expenses, including his mortgage.
In addition to the prison term, Judge Thompson sentenced Qureshi to five years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing. He also thanked postal inspectors under the direction of Inspector in Charge James V. Buthorn, the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge Mark McKevitt, and the U.S. Social Security Administration, Office of the Inspector General, for their roles in the investigation.
The government is represented by Assistant U.S. Attorney Daniel Shapiro and Deputy Chief Zach Intrater of the U.S. Attorney’s Office’s Economic Crimes Unit, and Sarah Devlin of the Assert Forfeiture and Money Laundering Unit.
Defense counsel: Alexander Spiro Esq., New York
Marion County man pleads guilty to unlawful possession of a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Duane Jabbar Martin, 31, of Rivesville, West Virginia, was convicted for unlawful possession of a firearm, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Martin, who had previously been convicted of a felony offense in Marion County, is prohibited from possessing a firearm. He admitted to possessing a 9mm semi-automatic handgun in April 2016.
Martin pled guilty to one count of “Unlawful Possession of a Firearm.” He faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Marion County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Marine Pilot Sentenced for Possession of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 44-year-old Corpus Christi man has been sentenced to federal prison for possessing child pornography, announced U.S. Attorney Kenneth Magidson. Jason Michael Ehret, an active duty Marine Corps major serving as an aviation flight instructor, pleaded guilty Nov. 15, 2016.
Today, Senior U.S. District Judge Janis Graham Jack handed Ehret a sentence of 87 months in federal prison. He was further ordered to pay a $10,000 fine and will serve the rest of his life on supervised release, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
At the time of the plea, the court heard that authorities used peer-to-peer software and were able to successfully download various files containing child pornography from an IP address that was associated with Ehret.
In March 2016, agents executed a search warrant at Ehret’s residence, at which time they seized various electronic devices. Forensic analysis on those devices revealed more than 180 images and approximately four videos of child pornography. Authorities also discovered more than 570 images of child erotica.
Ehret was arrested on the federal charges in September 2016 and has been in custody since that time where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Naval Criminal Investigative Service and the Corpus Christi Police Department—Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, 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."
Manhattan U.S. Attorney Charges Two Individuals in $17 Million Real Estate ScamRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Patricia Tarasca, the Special Agent-in-Charge of the New York Region for the Federal Deposit Insurance Corporation Office of Inspector General (“FDIC-OIG”), announced the unsealing today of an indictment charging ISSAK ALMALEH, a/k/a “Issak Izrael,” and ANTOANETA IOTOVA with conspiracy to commit bank fraud, bank fraud, wire fraud, and making false statements to the FDIC, in connection with a wide-ranging scheme to falsely claim ownership of more than $17 million worth of property in New York and Florida. As alleged, ALMALEH and IOTOVA used forged documents to claim ownership of real estate in New York and Florida, and then used those real estate documents to victimize individuals and tenants. ALMALEH and IOTOVA were arrested today in Hollywood, Florida, and will be presented later today in federal court in Fort Lauderdale, Florida. The case is assigned to Chief U.S. District Judge Colleen McMahon.
Manhattan U.S. Attorney Preet Bharara said: “Issak Almaleh and Antoaneta Iotova allegedly forged documents to falsely claim ownership over $17 million of property in New York and Florida. As alleged, the defendants’ brazen scheme led to at least one victim being wrongfully evicted from the victim’s own home and others signing leases and paying deposits to the defendants for homes the defendants did not actually own. Thanks to the work of the FDIC Office of Inspector General, the defendants’ alleged frauds have now been foreclosed.”
FDIC Special Agent-in-Charge Patricia Tarasca said: “The FDIC Office of Inspector General is committed to investigating allegations of fraudulent activity that threatens to harm FDIC-insured financial institutions. Our office worked vigorously to uncover the details of this alleged real estate foreclosure scam to ensure integrity in the banking industry and hold guilty parties accountable.”
According to the allegations contained in the Indictment unsealed today in Manhattan federal court[1]:
The Scheme to Defraud Banks
From at least 2012, ALMALEH and IOTOVA have filed fraudulent and forged property deeds purporting to transfer ownership of more than 40 real properties located in New York City and the greater Miami, Florida, area, with a combined estimated market value in excess of $17 million, to entities controlled by ALMALEH and IOTOVA, specifically, New York Sport Foundation, New York Mortgage Corporation, and Women in International Relations, Inc.
ALMALEH and IOTOVA identified properties that had been subject to foreclosure, and were owned by financial institutions insured by the FDIC. ALMALEH and IOTOVA then filed fraudulent and forged warranty deeds that supposedly reflected the transfer of these properties from the financial institutions to entities controlled by ALMALEH and IOTOVA for a nominal sum. ALMALEH, who was a commissioned notary, would notarize the documents as genuinely signed by representatives of the financial institutions. IOTOVA would sign the documents on behalf of the entities controlled by the defendants.
In furtherance of their scheme, in 2015, ALMALEH and IOTOVA also submitted a false application for FDIC insurance and certification, seeking to have the FDIC certification of an FDIC-insured bank (“Bank-1”) transferred to their control.
The Scheme to Defraud Individuals
After ALMALEH and IOTOVA filed deeds purporting to transfer ownership of the properties, ALMALEH and IOTOVA used the deeds to victimize other individuals. On at least one occasion, in 2015, ALMALEH and IOTOVA evicted a bona fide purchaser (“Victim-1”) from a property in Hollywood, Florida (“Property-1”), that had been falsely claimed by ALMALEH and IOTOVA. Using a fraudulent deed indicating that Victim-1’s property belonged to New York Mortgage Corporation, ALMALEH, using the name “Issak Izrael,” and IOTOVA obtained the assistance of the local police in temporarily evicting Victim-1 from Victim-1’s residence. ALMALEH and IOTOVA proceeded to change the locks to the doors on Property-1, until an emergency court hearing permitted Victim-1 to remain in residence at Property-1.
On another occasion, in 2016, ALMALEH and IOTOVA used documents falsely claiming ownership of a property in Hallandale Beach, Florida (“Property-2”), in order to defraud consumers into falsely entering into lease agreements for Property-2. Two victims (“Victim-2” and “Victim-3”) separately responded to an online advertisement indicating that the units in Property-2 were available for rent. Victim-2 and Victim-3 met with IOTOVA and entered into lease agreements for the units in Property-2. The lease agreements were signed by ALMALEH. In addition to signing a lease agreement, Victim-2 provided IOTOVA with $2,000 in cash, and Victim-3 provided IOTOVA with $900 in cash. A few days later, however, the locks on the doors at Property-2 were changed, and Victim-2 and Victim-3 were notified by the financial institution that was the true owner of Property-2 (“Bank-2”) that their lease agreements were invalid and that they would have to vacate Property-2.
* * *
ALMALEH, 63, and IOTOVA, 51, of Hollywood, Florida, are each charged with one count of conspiracy to commit bank fraud, one count of bank fraud, and one count of making false statements to the FDIC, each of which carries a maximum sentence of 30 years in prison; and one count of wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the investigative work of the FDIC Office of Inspector General. Mr. Bharara also thanked the New York City Sheriff’s Office, the Hollywood, Florida, Police Department, the Broward County Sheriff’s Department, and the Broward County Property Appraiser’s Office for their assistance in the investigation. Mr. Bharara noted that the investigation remains ongoing.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to http://www.usdoj.gov/usao/nys/victimwitness.html.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys David W. Denton Jr. and Robert Sobelman 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.
Man Who Used Play Station 3 to Hide Child Pornography Trading Sentenced to 17 Years in Federal PrisonRead the Press Release
DENVER – Allen LeRoy Simons, III, age 36, of El Paso County was sentenced on January 25, 2017 by U.S. District Court Judge William J. Martinez to serve 204 months (17 years) in federal prison for possession of child pornography, followed by 30 years on supervised release, Acting U.S. Attorney Bob Troyer, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Denver Division Acting Special Agent in Charge John Eisert, and Internet Crimes Against Children (ICAC) Commander for Colorado Lieutenant Christina Sheppard of the Colorado Springs Police Department announced.
Because Simons served three years in the Colorado Department of Corrections, Judge Martinez gave the defendant credit for 36 months (3 years), reducing the federal sentence to 168 months (14 years) in federal prison. In addition, the judge ordered the defendant to pay $27,000 in restitution payable to victims whose pictures was actively traded by the defendant with other like-minded individuals.
Simons was indicted by a federal grand jury on May 3, 2016. He pled guilty on August 1, 2016, and was sentenced on January 25, 2017. At the time he was indicted by the federal grand jury, the defendant was on state probation for the sexual exploitation of a child.
According to court documents, including the stipulated facts in the defendant’s plea agreement, the defendant traded thousands of child pornography images via email. He also graphically discussed the sexual abuse of children in these emails. Law enforcement determined that Simons had over well over 10,000 images and videos of child pornography.
During sentencing, Judge Martinez noted the lengthy prison sentence was due to Simons large collection of child pornography, the fact that he had collected these images for a number of years, and that he took steps to hide his involvement. The defendant used a Play Station 3 to access the internet and trade child pornography, hiding his illegal conduct from state probation and other authorities.
This case was investigated by the Colorado Springs Police Department and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI).
Simons was prosecuted by Assistant U.S. Attorney Valeria Spencer.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Man Sentenced to 24 ½ Years in Prison on Kidnapping, Witness Tampering and Firearms OffensesRead the Press Release
CHARLOTTE, N.C. B Today, U.S. District Judge Robert J. Conrad, Jr. sentenced Lonnie Cecil Buchanan, Jr., 47, of Monroe, N.C. to 294 months in prison on kidnapping, witness tampering and firearms offenses, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Judge Conrad also ordered Buchanan to serve five years of supervised release after he completes his prison term. Buchanan pleaded guilty to the charges in April 2012, following nearly two days of trial testimony.
U.S. Attorney Rose is joined in making today’s announcement by C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, Chief J. Bryan Gilliard of the Monroe Police Department and Sheriff Jay L. Brooks of the Chesterfield County Sheriff’s Office in South Carolina.
According to filed court documents and evidence presented at trial, on February 26, 2012, Buchanan, while holding a firearm, approached a female victim at the Hilltop shopping center parking lot in Monroe, N.C. Witnesses at trial described the victim’s “blood curdling screams” as she ran to her vehicle in an attempt to get away from Buchanan. Buchanan chased the victim and jumped into her car. Witnesses testified at trial that Buchanan and the victim violently struggled in the car until the victim was knocked unconscious. Buchanan then dragged the victim to a van he had parked nearby. Witnesses at trial testified that Buchanan stood over the victim with his hand on her throat and when he noticed other people around him he told the victim that he “was going to take her to the hospital.”
Witnesses testified that Buchanan lifted the victim from the ground and placed her on the floor of the van. Witnesses also testified that Buchanan passed the hospital and drove the victim into Chesterfield County in South Carolina. According to trial evidence and witness testimony, Buchanan repeatedly hit the victim and told her he would kill her. After 30 hours of being held captive, law enforcement located the van at a vacant house in the woods, with both Buchanan and the victim inside. Buchanan was arrested and the victim was taken to the hospital for treatment.
According to filed court documents, in March 2012, a federal grand jury indicted Buchanan on kidnapping, possession of firearm by a convicted felon, and possession of a firearm in furtherance of kidnapping charges. Court records indicate that following his arrest and while in federal custody, Buchanan began to call the kidnapping victim in an attempt to persuade her to recant statements she made to law enforcement and the federal grand jury. As a result of that conduct, in December 2012, a federal grand jury added two charges of witness tampering in a superseding bill of indictment.
In announcing today’s sentence, Judge Conrad stated that the offense was “very serious,” it occurred “in broad daylight with a gun,” and that the defendant kept the victim “in captivity for over 24 hours, including assaulting her until she was unconscious.” Judge Conrad also stated that the defendant is “a danger to the community and has a disrespect for the law,” citing the seriousness of the offense, the need to promote respect for the law, and most importantly to protect the public from further crimes of the defendant as reasons for Buchanan’s lengthy prison term.
The defendant is currently in custody. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
ATF, the Monroe Police Department and the Chesterfield County Sheriff's Office led the investigation. Assistant United States Attorneys Jennifer Lynn Dillon and Dana Washington of the U.S. Attorney's Office in Charlotte prosecuted the case.
Las Vegas Felon Sentenced to Nearly 22 Years in Prison for Firearm and Drug OffenseRead the Press Release
LAS VEGAS, Nev.—A Las Vegas man was sentenced Tuesday by United States District Judge James C. Mahan to 260 months in prison and six years of supervised release for felon in possession of a firearm, possession of cocaine with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Daniel G. Bogden of the District of Nevada.
“The defendant is a recidivist, a convicted felon who unlawfully possessed an automatic pistol, ammunition, over 9.5 grams of cocaine, and drug paraphernalia,” said U.S. Attorney Bogden. “Along with our law enforcement partners, the U.S. Attorney’s Office is committed to fighting violent crime and keeping Nevada’s communities and streets safe.”
Tyrone Davis, 33, pleaded guilty to possession of a firearm by a convicted felon, possession of cocaine with intent to distribute, and possession of a firearm in furtherance of a drug trafficking offense. He was charged in a three-count superseding indictment on Aug. 13, 2013.
According to court documents, Davis has prior felony convictions in Henderson and Las Vegas. On July 19, 2012, detectives with the Las Vegas Metropolitan Police Department were conducting a robbery investigation involving Davis. During the execution of a search warrant of his apartment, the detectives found a Browning .22 caliber automatic pistol, a bullet-proof vest, ammunition, a pistol magazine, 9.6 grams of cocaine, and two digital scales with residue, along with small plastic bags.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; and prosecuted by Assistant U.S. Attorneys Lisa C. Cartier-Giroux and Phillip N. Smith, Jr.
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Lansing Pimp Pleads Guilty to Sex Trafficking A Minor, Becoming the Tenth Person Convicted Federally of Sex Trafficking in West MichiganRead the Press Release
GRAND RAPIDS, MICHIGAN – Nicko Ray Rush II, 26, of Lansing, Michigan, pled guilty on January 24, 2017, to sex trafficking a minor by force, threats of force, fraud, or coercion. A grand jury charged Rush in November 2016 with sex trafficking two girls, ages 15 and 16, and one adult in Ingham County and elsewhere. Rush admitted at the plea hearing that he took both teens from Lansing to Detroit to "walk the streets" when they were 15 and that he kept the proceeds from their commercial sex acts. He admitted to giving the girls drugs and cigarettes and instructing them on how to walk to attract johns in passing cars. He also admitted to posting ads online for commercial sex for one of the girls and being violent and threatening towards both her and the adult victim.
Rush faces a minimum of 15 years and up to 25 years in federal prison. The Honorable Robert J. Jonker, Chief U.S. District Judge, will sentence Rush on June 5, 2017. Rush has been held in custody since his arrest on December 8, 2016, and he will remain detained pending sentencing. The sentence could also include a fine of up to $250,000 and an order that he pay restitution to any of his sex trafficking victims, which can cover victims’ costs such as counseling and medical treatment related to the crime.
Rush is the tenth defendant to be convicted federally of sex trafficking in the Western District of Michigan, starting with Eddie Allen Jackson in 2014, who was convicted at trial of recruiting three Muskegon girls ages 14, 15, and 16 into commercial sex in Grand Rapids. (See https://www.justice.gov/usao-wdmi/pr/2014_0916_EJackson.html.) Since that case, the U.S. Attorney’s Office for the Western District of Michigan has successfully prosecuted nine additional sex trafficking defendants, including Rush. Together, these cases involved 13 victims under the age of 18 and five adult victims, all of whom were local West Michigan residents from cities including Grand Rapids, Lansing, Muskegon, and Battle Creek. The defendants – nine males and one female – ranged in age from 22 to 45 years old and were also all local to West Michigan. Some of the defendants had histories of significant drug and violent criminal offenses. These ten sex trafficking convictions resulted from collaborative investigations by multiple agencies in each case, including the FBI in Grand Rapids and Lansing; the FBI’s West Michigan Based Child Exploitation Task Force (WEBCHEX); the Department of Homeland Security; the Ingham County Sheriff’s Office; the Battle Creek Police Department; the Grand Rapids Police Department; the Muskegon Police Department; the Lansing Police Department; and various juvenile detention, probation, and rehabilitation facilities. Assistant U.S. Attorney Tessa K. Hessmiller is the Coordinator for Human Trafficking prosecutions at the U.S. Attorney’s Office for the Western District of Michigan and was the lead prosecutor for each of these ten cases.
"Sex trafficking isn’t something that only happens elsewhere to some other community’s minors and vulnerable adults," stated Acting U.S. Attorney Andrew Birge. "These are West Michigan defendants targeting West Michigan victims. We rely on the many good people in our community and the skilled law enforcement agencies we have in this District to notice and intervene in suspicious situations."
"The investigation and conviction of Nicko Rush II are a model of collaboration between investigators from the Lansing Police Department (LPD) and our federal, state, and local law enforcement partners," stated Lansing Police Chief Mike Yankowski. "LPD will continue to work with our law enforcement partners to ensure that those who are responsible for human trafficking crimes will be held accountable for their actions."
Community members can learn more about how to recognize and stop sex trafficking in West Michigan by contacting their local human trafficking task force, including the task forces in Kent County, Kalamazoo, and the Michigan Human Trafficking Task Force. Additionally, the U.S. Attorney’s Office offers human trafficking training upon request.
The first step to stopping sex trafficking in our community is recognizing the warning signs and reporting suspicious activity to police. Some of the warning signs that make children and teens vulnerable to potential recruitment include being unhappy in school, absent from school or home, suicidal or suffering from low self-esteem, defiant towards authority, drug use or curiosity, seeking quick sources of income, and craving independence. Warning signs of child sex trafficking include seeing an adult man with multiple teenagers – particularly girls – buying condoms, alcohol, cigarettes, clothing, hair/nail supplies, or prepaid gift or debit cards that can be used to make untraceable purchases such as online prostitution advertisements. Community members may encounter these suspicious situations anywhere, including supermarkets, parking lots, pharmacies, convenience stores, gas stations, bus depots, fast food restaurants, hotels, and casinos. Sometimes the pimp, who may be male or female, recruits victims through the promise of having someone to meet the victim’s basic needs for housing, food, cash, and "love" or "friendship"; the promise of drugs and alcohol; use of threats and violence; or any combination of these means. Pimps often use an intermediary – such as a young woman or teenage girl – to recruit victims into a "money-making opportunity" that turns out to be commercial sex.
"The sexual exploitation of minors and adults is a reoccurring menace to Michigan communities and has lasting damaging impacts on its victims," said David P. Gelios, Special Agent in Charge, FBI Detroit Division. "Drugs and physical violence were just some of the tools Mr. Rush utilized to coerce the victims in this investigation. Through the continuing efforts of the FBI and our law enforcement partners, we want victims of any form of trafficking to know there is hope, and we encourage you to contact the FBI or your local police department if you have information about any human trafficking activity."
If you suspect illegal activity involving child exploitation or sex trafficking, contact law enforcement immediately. If a person may be in imminent danger, call 911. To report suspicious activity involving possible sex trafficking, call: West Michigan Based Child Exploitation Task Force (WEBCHEX) at 616-456-5489; Homeland Security Investigations, Grand Rapids, at 616-235-3936 (x. 2215); 1-800-THE-LOST® (National Center for Missing and Exploited Children); or report tips anonymously to Silent Observer at 616-774-2345.
The Nicko Rush case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.
Kodiak Strip Boat Owner Sentenced to Probation and FineRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Darren Byler, 56, resident of Zachar Bay, Kodiak Island, Alaska, was sentenced on Monday by U.S. District Judge Sharon L. Gleason to five years’ probation and a fine of $10,000, for violating the Refuse Act and making false statements to Coast Guard officials.
Byler was convicted in December 2015 after an 11-day trial. According to the evidence at trial, Kimberly Riedel-Byler and Darren K. Byler were the owners of the Wild Alaskan, a floating strip club anchored in Kodiak Harbor between June 2014 and November 2014. On the Wild Alaskan was a customer bathroom for patrons and an employee bathroom for dancers and other staff. The United States established at trial that sewage from these bathrooms on board the Wild Alaskan was plumbed to flow directly overboard into the waters of Kodiak Harbor.
When asked to produce documentation about his sewage disposal from the Wild Alaskan, Darren Byler gave the United States Coast Guard Marine Safety Detachment Kodiak a false ship’s log. In the log, the defendant claimed to have disposed of 1,500 gallons of raw sewage from the Wild Alaskan at the Pier 2 sewage disposal facility in Kodiak Harbor on July 29 and 30, 2014. In his log, the defendant also reported that he disposed of 800 gallons of sewage on five additional occasions in September and October 2014, by transporting the sewage in his landing craft, the Gulf Coast Responder, and dumping it at sea beyond 3 nautical miles. The United States proved at trial that these statements were false.
Judge Gleason based her sentence on numerous factors, including the nature and circumstances of the defendant’s conduct, and the defendant’s history and characteristics. Judge Gleason also noted the need to deter others from committing similar environmental crimes, and then engaging in steps to hide those illegal discharges. “There is a need for the sentence to afford some degree of adequate deterrence to the many other mariners that are in our state,” said Judge Gleason.
The case was the product of an investigation by multiple law enforcement agencies, including the United States Coast Guard Investigative Service, the Federal Bureau of Investigation, and the Kodiak Police Department. Assistant U.S. Attorney Kyle Reardon and Special Assistant U.S. Attorney William George prosecuted the case.
Jury Convicts Local Man of Bank RobberyRead the Press Release
HOUSTON – A 24 year-old Houston man has been found guilty for the armed robbery of a Capital One Bank and for using a firearm during and in relation to a crime of violence, announced U.S. Attorney Kenneth Magidson. A Houston federal jury convicted Trent Davis today following two days of trial and approximately an hour of deliberation.
On April 26, 2016, Davis and co-defendant Derrick Muhammad, 28, of Houston, robbed the Capital One Bank located at 1514 West Sam Houston South in Houston. The men entered the facility, at which time Davis jumped the counter, pointed a pink gun at the teller and demanded he open the vault. Upon fleeing the bank, two dye packs exploded within the bag holding the money which was then thrown from the car. A witness in a nearby building saw the two masked men exiting the bank and photographed the vehicle as the dye pack exploded.
Davis used his sister’s car during the robbery. During trial, an FBI chemist testified that a substance found in that vehicle had chemicals found only in dye packs.
The lead teller on the date of the robbery told the jury how he was forced to empty the vault at gunpoint. He testified that the robbers were wearing hoodies and that one of them used a pink gun in the robbery.
Davis was apprehended approximately a month after the robbery in possession of a pink gun that had been painted black.
Two witnesses testified about jail house conversations they had with Davis and claimed Davis confessed to the crime, that he used his sister’s car and about the pink gun being painted. The jury also heard from Muhammad who testified about the details of the robbery. He previously pleaded guilty and will be sentenced in March 2017.
U.S. District Judge David Hittner presided over the trial and has set sentencing for April 19, 2017. At that time, Davis faces up to 25 years for the bank robbery as well as another seven years for the use and carrying of a firearm which must be served consecutively to any other prison term imposed.
The FBI Violent Crime Task Force conducted the investigation, which included agents and officers of the FBI, Harris County Sheriff’s Office and Houston Police Department Assistant U.S. Attorneys Celia Moyer and Jill Stotts are prosecuting the case.
Jury Convicts Local Doctor in $13 Million Health Care Fraud SchemeRead the Press Release
HOUSTON – The final defendant charged in a $13 million Medicare and Medicaid health care fraud case has been found guilty on all eight counts as charged, announced U.S. Attorney Kenneth Magidson. A federal jury convicted Dr. Faiz Ahmed, 64, of Houston, today following a six-day trial and approximately five hours of deliberations.
Ahmed and eight co-defendants engaged in a conspiracy to falsely bill Medicare and Medicaid for medically unnecessary diagnostic tests. At trial, the jury heard that Ahmed agreed to approve the testing and allowed his physician number to be used in the Medicare billing process to support the tests.
The lead defendant in the case - Mkrtich “Mike” Yepremian, 59, of Houston, paid marketers to bring patients to the clinics. He also, among others, paid the patients to submit to the tests. He pleaded guilty March 4, 2016, to conspiracy to commit health care fraud and paying kickbacks to marketers of Medicare and Medicaid patients.
Seven others have also pleaded guilty for their respective roles - Bompa Mbokoso Mompiere, 57, Michael Wayne Wilson, 47, Jermaine Doleman, 39, Harding Dudley Ross, 62, Eric Johnson, 62, Ann Marie Rocha, 49, and Eddie Wayne Taylor, 57, all of Houston. These defendants and Yepremian are set for sentencing in April 2017.
Yepremian ran several false clinics in Houston and Conroe. He paid marketers, including Wilson, Doleman, Johnson and Taylor, to bring patients to the clinics for a battery of diagnostic tests and blood work, regardless of medical need. Yepremian paid the marketers approximately $100 for each patient brought to his clinics. In turn, the marketers paid the patients approximately $50 each.
Ahmed approved the medically unnecessary diagnostic testing. He ordered testing for approximately 400 patients, 80 percent of which included an EKG and PFT (series of breathing tests). Ahmed was not even their regular treating physician. The jury heard that no one was referred to these clinics, there was no appointment book, they did not collect any copays and that the patients usually arrived all at the same time along with marketers.
The jury heard from some of the paid patients who testified they were paid to submit to the testing and knew it was wrong. The jury also heard testimony from the office manager – Rocha – and other co-conspirators about the overall scheme. The jury also saw video and heard phone calls, during which Ahmed had agreed to the scheme.
As a result of the overall conspiracy, Medicare and Medicaid were billed approximately $13 million and paid out approximately $9 million in false claims.
The defense attempted to convince the jury that Ahmed did not order unnecessary tests and said he had no idea the patients were paid. He argued that someone else must have added the tests and billed them to Medicare. The jury did not believe his claims and found him guilty for the underlying conspiracy and for committing health care fraud.
U.S. District Judge Gray Miller presided over the trial and has set sentencing for April 6, 2017. At that time, Ahmed faces up to 10 years imprisonment and a possible $250,000 fine on all eight counts of conviction. Previously released on bond, Ahmed was permitted to remain on bond pending his sentencing hearing.
The Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services - Office of Inspector General (Office of Investigations) and the FBI conducted the investigation. Special Assistant U.S. Attorney Suzanne Bradley and Trial Attorney Jason Knutson are prosecuting the case.
Jerome Man Sentenced to a Decade in Prison for Armed Stand Off with PoliceRead the Press Release
BOISE - Daniel Andrew Mills, 41, of Jerome, Idaho, was sentenced today to serve ten years in prison for unlawful possession of firearms and violating the conditions of his supervised release, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge sentenced Mills to 100 months imprisonment for unlawful possession of firearms and 24 months, to be served consecutively, for violating the terms of his supervised release on a prior unlawful possession of a firearm offense. Mills was convicted of possessing two firearms after a two-day trial in Boise in October of last year.
During the two-day trial, the jury heard evidence that Mills, a convicted felon who was wanted by the U.S. Marshals Service on a federal warrant for a supervised release violation, was driving through Jerome at 2:15 a.m. on January 11, 2016, when a Jerome County Sheriff’s Office deputy attempted to stop him for a broken taillight. Mills fled in his car, reaching speeds of more than 100 miles per hour. Mills’ car became disabled after he crashed through a fence and hit a parked vehicle. Mills refused all commands to exit the vehicle and repeatedly stuck the barrel of a shotgun outside of the driver’s window. The armed stand-off lasted several hours before a Twin Falls Sheriff’s Office hostage negotiator talked Mills out of the car and he was arrested without incident. Inside of the car, deputies found a loaded shotgun and a loaded .25 pistol. At the time Mills was in possession of the firearms, he was on supervised release for a prior federal conviction for unlawfully possessing a firearm. Mills has previously been convicted of assault with intent to commit a serious felony, aiding and abetting delivery of controlled substance, escape, forgery, eluding arrest, and possession of controlled substance.
At sentencing today, Judge Lodge noted the Mills posed a “significant danger to the community, lied under oath at trial, and this made it impossible to impose a sentence of less than ten years.”
The case was investigated by the Jerome County Sheriff’s Office, the Jerome City Police Department, the Twin Falls County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Illinois Man Who Illegally Accessed Email Belonging to More Than 300 People, including Many Celebrities, Sentenced to Federal PrisonRead the Press Release
LOS ANGELES – An Illinois man who admitted responsibility for a phishing scheme that gave him illegal access to over 300 Apple iCloud and Gmail accounts, including those belonging to members of the entertainment industry in Los Angeles, has been sentenced to nine months in federal prison.
Edward Majerczyk, 29, of Chicago, was sentenced yesterday in Chicago by United States District Judge Charles P. Kocoras, who said the defendant’s crime was “abhorrent.”
Majerczyk pleaded guilty in September to a felony violation of the Computer Fraud and Abuse Act, specifically, one count of unauthorized access to a protected computer to obtain information. Majerczyk was charged by federal prosecutors in Los Angeles, but the case was transferred to the Northern District of Illinois, where the defendant pleaded guilty and was sentenced.
“This defendant engaged in a computer hacking scheme that not only gave him access to his victims’ computers, it also gave him access to the most personal details of their lives,” said United States Attorney Eileen M. Decker. “This was a deep intrusion into the victims’ privacy and a violation of federal law.”
According to a plea agreement filed in this case, from November 23, 2013 through August 2014, Majerczyk engaged in a phishing scheme to obtain usernames and passwords for his victims. He sent e-mails to victims that appeared to be from security accounts of internet service providers that directed the victims to a website that would collect the victims’ usernames and passwords. After victims responded by entering information at that website, Majerczyk had access to victims’ usernames and passwords. After illegally accessing the iCloud and Gmail accounts, Majerczyk obtained personal information including sensitive and private photographs and videos.
“Mr. Majerczyk manipulated hundreds of victims by tricking them into providing access to their accounts, including high-profile victims whose information was specifically targeted,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The lasting harm this type of intrusion can cause to celebrities and non-celebrities alike cannot be overstated, and this case should serve as a necessary reminder to all of us that it is dangerous to respond to unsolicited e-mails in which our personal information is requested.”
Many of Majerczyk’s victims were members of the entertainment industry in Los Angeles. By illegally accessing the e-mail accounts, Majerczyk accessed at least 300 accounts, and at least 30 accounts belonging to celebrities.
The charge against Majerczyk stems from the investigation into the leaks of photographs of numerous female celebrities in September 2014 known as “Celebgate.” However, investigators have not uncovered any evidence indicating that Majerczyk was responsible for any of the postings of celebrity photographs.
In addition to the prison term, Judge Kocoras ordered Majerczyk to pay $5,700 in restitution to one victim whose photos were published on the Internet. Majerczyk was ordered to begin serving his sentence by February 27.
The case against Majerczyk is the product of an ongoing investigation by the Federal Bureau of Investigation. The case was filed by Assistant United States Attorneys Ryan White and Vicki Chou of the Cyber and Intellectual Property Crimes Section. The sentencing hearing was handled by Chicago-based Assistant United States Attorney Raj Laud.
Honduran National Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JUAN MANUEL URQULA-SEVILLA, age 35, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal reentry of removed alien.
According to court records, URQULA-SEVILLA was previously removed from the United States on or about April 4, 2005. URQULA-SEVILLA was later found in the Eastern District of Louisiana on or about October 11, 2015, and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
URQULA-SEVILLA faces a maximum term of imprisonment of two years and a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Eldon E. Fallon set sentencing for March 16, 2017.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Henderson County Man Sentenced for Child Pornography ViolationsRead the Press Release
TYLER, Texas — A 35-year-old Trinidad, Texas man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Mikael Johnson pleaded guilty on Oct. 11, 2016, to distributing child pornography and was sentenced to 140 months in federal prison by U.S. District Judge Ron Clark on Jan. 24, 2017.
According to information presented in court, on Dec. 14, 2015, Johnson knowingly sent another person child pornography by using the Internet, digital services that he owned and a social media application. Following an investigation, federal agents obtained and executed a search warrant at Johnson’s residence on Jan. 7, 2016. More than 600 images and videos containing child pornography were located and seized during the search. Johnson was arrested on that day and a federal grand jury returned an indictment on Jan. 20, 2016 charging him with federal child exploitation violations.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Marisa Miller and U.S. Department of Justice Criminal Division Trial Attorney Amy Larson.
Harrison County Resident Sentenced for Sex Trafficking MinorsRead the Press Release
Council Bluffs, IA - On January 25, 2017, John F. Thomsenheather Jean Reekr, a 47-year-old resident of Missouri Valley, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 235 months in prison for coersion and enticement of a minor for sex and for transporting a minor with intent to engage in sexual activity, announced United States Attorney Kevin E. VanderSchel. Thomsen will be required to serve 15 years of supervised release after his prison term. Thomsen pleaded guilty to the two counts on September 1, 2016.
The guilty pleas and sentencing were the result of an investigation into the transportation of minor females from Arkansas to Missouri Valley, Iowa, so the minors could engage in sexual acts. The investigation showed Thomsen had met a 14-year-old female while working at a group home in Arkansas. After leaving his group home employment, Thomsen used social media to keep in contact with the minor female and convince her to live with him, and his wife, Trudy Thomsen, in Missouri Valley, Iowa.
The Thomsens traveled to Arkansas and drove the minor to Missouri Valley, Iowa, where the Thomsens engaged in various sexual acts with the girl. After the minor was returned to the group home, John Thomsen again contacted her via social media and arranged to have her, and a second minor female, transported back to Missouri Valley, Iowa, for sexual activities.
Co-defendant Trudy Thomsen is pending sentencing in the Southern District of Iowa.
This investigation was conducted by the Federal Bureau of Investigation Child Exploitation Task Force, Arkansas State Police, Missouri Valley Police Department, Council Bluffs Police Department, Omaha Police Department, La Vista Police Department, and the Harrison County Attorney’s Office. 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 contacing Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected]
Hampton Man Sentenced to 16 Years for Child PornographyRead the Press Release
NEWPORT NEWS, Va. – Jerome Paul Frostman, 47, of Hampton, was sentenced today to 16 years in prison for receipt of child pornography.
Frostman pleaded guilty on Aug. 8, 2016. According to court documents, Frostman was distributing child pornography using a peer-to-peer network. After a search warrant was executed at his residence, Frostman acknowledged accessing child pornography from his laptop and stated he “gets a thrill” out of viewing child pornography. During an interview with law enforcement agents Frostman confessed to downloading and receiving over 1,000 images of child pornography, in addition to previously sexually assaulting a child on multiple occasions.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Mark S. Davis. Assistant U.S. Attorney Megan M. Cowles prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-cr-55.
Freeport Man Enters Guilty Plea to Three Child Pornography ChargesRead the Press Release
GALVESTON, Texas – A 21-year-old Freeport man has been convicted of distribution, receipt and possession of child pornography, announced U.S. Attorney Kenneth Magidson.
Miguel Jimenez Jr. came to the attention of authorities after they believed he was uploading and storing child pornography into a virtual storage account. A search warrant was executed at his residence, at which time law enforcement located and seized various computers and cellular phones. Forensic analysis of the phones, computers and virtual storage accounts revealed 658 child pornography images and 634 child pornography videos. The images and videos included minors under the age of 12 engaging in sexual activity, instances of sadism, masochism, bondage involving the penetration of the minor, as well as masturbation and the lewd and lascivious display of the children’s genitals.
Today, Jimenez admitted he possessed, received and distributed numerous images child pornography. Jimenez chatted with unidentified users who shared his sexual interest in children. Further, Jimenez used several different on-line applications to chat with underage girls all over the country. He had an online relationship with one minor female whom he had threatened by saying she had to continue the relationship or he would send naked pictures of her to her friends.
The forensic analysis results indicated that Jimenez searched the Internet using the phrase, “how much trouble can you be in for sending naked photos of ex.”
Jimenez has been detained since his arrest on May 5, 2016, at which time U.S. Magistrate John R. Froeschner found him to be a flight risk and danger to the community.
U.S. District Judge George C. Hanks accepted the plea and set sentencing for May 17, 2017. For distribution and receipt of child pornography, Jimenez faces a mandatory minimum sentence of five and up to 20 years in federal prison. He also faces another maximum term of 10 years for the possession conviction. All charges are also punishable by a $250,000 maximum possible fine. Upon completion of any prison term imposed, the court could impose any number of years and up to life on supervised release and he will also be required to register as a sex offender.
Immigration and Customs Enforcement’s Homeland Security conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Sherri Zack, 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."
Former Vice President of Maryland Bank Admits to Six-Year Scheme to Steal over $1.8 Million from Bank CustomersRead the Press Release
Baltimore, Maryland – Melissa Strohman, age 54, of Nottingham, Maryland, pleaded guilty in federal court today to wire fraud and bank embezzlement, arising from a six-year scheme to steal over $1.8 million from bank customers at the bank where she worked.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Patti Tarasca, Special Agent in Charge, New York Region, Federal Deposit Insurance Corporation (FDIC) Office of Inspector General; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to her plea agreement, from April 2010 through July 2016, Strohman was Senior Vice President at a federal savings bank in Maryland, which had branches in Pikesville and Highlandtown. Strohman was responsible for managing the bank’s savings department, including overseeing deposits and Individual Retirement Accounts for every customer. In addition, as the bank’s Bank Secrecy Officer, Strohman was responsible for filing Currency Transaction Reports and Suspicious Activity Reports for any transactions that were deemed to be suspicious or potentially illegal.
Strohman admitted that she used her position of trust at the bank to cause more than 200 unauthorized transfers and withdrawals of funds from six customers’ bank accounts to pay for mortgages, credit card bills and property tax bills associated with Strohman and her family members. Three of the six victim customers were at least 80 years old, and for two of the accounts the customers were deceased.
For example, Strohman used her supervisory override function on the bank’s electronic banking system to facilitate unauthorized transfers between the victim customers’ accounts to accounts associated with Strohman; forged the signature of one victim customer in order to complete an unauthorized transaction from that person’s bank account to an American Express account associated with Strohman; and caused unauthorized transfers of funds between the victim customers’ accounts to replace the monies Strohman stole and to conceal those thefts.
Strohman faces a maximum sentence of 20 years in prison for wire fraud, and a maximum of 30 years in prison for bank embezzlement. U.S. District Judge Richard D. Bennett has scheduled sentencing for Strohman on May 12, 2017, at 10:00 a.m.
United States Attorney Rod J. Rosenstein commended the FDIC Office of Inspector General and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Phil Selden and Evan Shea, who are prosecuting the case.
Former Energy Company Executives Convicted in Embezzlement SchemeRead the Press Release
HOUSTON - The former president of Chase Power Development has entered a guilty plea to conspiracy to commit mail and wire fraud, announced U.S. Attorney Kenneth Magidson. Kathleen Smith entered her plea today, while co-defendant and former CEO John Upchurch entered his plea earlier this month.
Houston-based Quintana Capital Group created Chase Power in order to head start an energy project in Corpus Christi. In July 2008, Upchurch was hired as CEO and Smith as president of that company.
From about June 2008 to about June 2012, Upchurch and Smith embezzled a significant amount of money from Chase Power. Throughout their employment with Chase Power, they submitted false invoices for fake projects in order to receive company funds for their own personal expenses, such as personal travel, hotels, country club memberships, personal car restoration, fishing equipment and a hunting trip. Smith and Upchurch either mailed the company checks upon issuance or personally took the checks to the merchants.
In addition, the defendants used their company American Express credit cards for their own personal purchases. Upchurch and Smith would segregate their illegitimate American Express expense account summaries and self-approve them for payment on personal items and expenditures.
U.S. District Judge Sim Lake accepted the pleas and has set sentencing for April 2017. At that time, both face up to five years in federal prison and/or a maximum possible $250,000 fine. They were permitted to remain on bond pending sentencing.
The FBI conducted the investigation. Assistant U.S. Attorney Suzanne Elmilady is prosecuting this case.
Former East Carondelet Man Sentenced for Distributing, Receiving and Possessing Child PornographyRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that on January 25, 2017, Richard Lee Doerr, III, 29, formerly of East Carondelet, Illinois, was sentenced for distribution of child pornography, three counts of receipt of child pornography, and possession of prepubescent child pornography. Doerr was sentenced to a term of imprisonment of 120 months on each count, to run concurrently, to be followed by a five-year term of supervised release on each count, also to run concurrently. Doerr was also ordered to pay a $500 special assessment. In addition, Doerr agreed to pay $4,500 in restitution to four of the victims identified from his collection of child pornography. Doerr had been detained since his arraignment on February 12, 2016.
On December 27, 2013, the National Center for Missing and Exploited Children received a cyber tipline report from Tumblr that an individual had uploaded approximately 34 images that appeared to be child pornography based on the hash values of the images. The FBI tracked the IP address to Doerr.
Doerr provided a voluntary statement, in which he admitted to downloading and sharing child pornography via Tumblr accounts. A forensic review of Doerr’s cellular telephone revealed that it contained 143 image and 28 video files of child pornography while a forensic review of his
Samsung Galaxy tablet, revealed that it contained eight video files of child pornography. More than half of the images contained on Doerr’s cellular telephone were of prepubescent children. In addition, the forensic review determined that, on or about December 27, 2013, Doerr distributed image files of child pornography. Moreover, the forensic review determined that, between July 11 and September 5, 2014, Doerr received image and/or video files of child pornography on several occasions.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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 Aresources.@
The case was investigated by the FBI’s Springfield Child Exploitation Task Force. The case is assigned to Assistant United States Attorney Angela Scott.
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Florida Man Sentenced to Prison for Tax Evasion of over $500KRead the Press Release
NORFOLK, Va. – Napoleon Robinson, 65, of Lauderhill, Florida, was sentenced today to 18 months in prison for charges of evasion of employment tax payment. Robinson was also sentenced to three years of supervised release and ordered to pay over $508,000 in restitution.
Robinson pleaded guilty on Sept. 28, 2016. According to court documents, between January 2000 and December 2013, Robinson owned and operated a series of ship welding and repair businesses in New York and Virginia. Beginning in 2005, Robinson began to fall habitually behind on paying the IRS the employment taxes he withheld from his employees. Rather than make arrangements to pay as required, Robinson simply closed down one ship repair company and opened a new one in the name of a nominee owner – including his sister, his teenaged niece, and a friend. Robinson himself, however, ran these companies, made all financial and personnel decisions, and controlled the businesses’ bank accounts. Eventually, the IRS caught on to Robinson’s employment tax “pyramiding” scheme and opened an investigation into his series of businesses. In the course of that investigation, Robinson made material false statements to the IRS Revenue Officer and otherwise attempted to impede IRS’s collection efforts. The total tax due and owing resulting from Robinson’s serial ownership of these ship repair companies is just over $500,000.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Thomas Holloman, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by Chief U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorney V. Kathleen Dougherty prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-111.
Florida Man Sentenced to 3½ Years for Credit Card Fraud and Identity TheftRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Ariel Perez-Calvo, 28, of Miami, Florida, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 3½ years in prison and three years of supervised release for credit card fraud and aggravated identity theft. He was also ordered to pay over $35,000 in restitution to the victims of his crime.
Court records show that in January 2016, Perez-Calvo and Roberto Lueje-Rodriguez used debit and credit card account numbers belonging to Maine bank customers located in Penobscot, Knox, Hancock, Piscataquis, Franklin, Somerset, Kennebec, and Androscoggin counties, to make unauthorized purchases totaling more than $48,000. The defendant engaged in similar conduct in Manchester and Concord, New Hampshire in November 2015 when he used debit and credit card account numbers belonging to New Hampshire bank customers to make unauthorized purchases totaling more than $1,000.
The name embossed on each fake card was “David Cuan,” which was not the name of any of the victims. Each fake card bore a unique account number and appeared to be an authentic debit or credit card, but their magnetic strips were encoded with the true account numbers of the victims.
At sentencing, Judge Woodcock noted: “The crimes you engaged in are insidious and destructive. First you steal private information and then you steal money.”
On July 8, 2016, Lueje-Rodriquez pleaded guilty to access device fraud and aggravated identity theft charges arising out of the same conduct and awaits sentencing.The investigation was conducted by the Maine State Police; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Bangor, Brewer, Dexter, Dover-Foxcroft, Ellsworth, Hampden, Lincoln, Millinocket, Newport, Pittsfield, Rockland, Saco, Waterville (Maine) and Londonderry (New Hampshire) Police Departments.
Federal Jury Convicts Montgomery County Man for Distributing Acetyl Fentanyl Resulting in DeathRead the Press Release
Greenbelt, Maryland – A federal jury today convicted Justin Larson, age 30, of Gaithersburg, Maryland, for distribution of acetyl fentanyl, which resulted in death; conspiracy to distribute narcotics; five counts of possession or attempted possession of a controlled substance and controlled substance analogue with intent to distribute; and one count of possession with intent to distribute and distribution of a controlled substance. The jury was not able to reach a verdict on a second count of distribution of acetyl fentanyl, resulting in death.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
According to the testimony at his three-week trial, from May 2014 through March 17, 2016, Larson conspired to distribute acetyl fentanyl, and furanyl fentanyl, a controlled substance analogue. The evidence showed that on May 9, 2014, Larson distributed acetyl fentanyl to an individual, resulting in the death of that individual.
Larson faces a mandatory minimum sentence of life in prison for distribution of acetyl fentanyl with death resulting; a maximum of 30 years in prison for the narcotics conspiracy; and a maximum of 20 years in prison for each of the six possession and distribution counts, and. U.S. District Judge Paula Xinis has scheduled sentencing for April 26, 2017, at 1:30 p.m. Larson remains detained.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, the FBI, Montgomery County Police Department, and Montgomery County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Kelly O’Connell Hayes and Erin Pulice, who are prosecuting the case.
Federal Grand Jury in El Paso Indicts Seven in Bank Fraud SchemeRead the Press Release
In El Paso today, a federal grand jury indicted seven individuals for allegedly defrauding multiple local banks and credit unions through applications for at least $237,000 in personal loans and lines of credit announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division.
The 16–count indictment charges 38–year-old former Michael Nedal Annabi of Santa Teresa, NM; his wife, 33-year-old Perla Maldonado Annabi; 33-year-old Basem Elgelda of Petaluma, CA; 25-year-old Terrance Yelder of El Paso; 29-year-old Miguel Munoz of Santa Teresa, NM; 23-year-old Jenzel Nash of El Paso; and, 20-year-old Daniel Munoz of Santa Teresa, NM, with one count of conspiracy to commit bank fraud. Michael Annabi and Basem Elgelda are also charged with four; Terrance Yelder and Jenzel Nash, with two; and, Perla Annabi, Miguel Munoz and Daniel Munoz with one, substantive counts of false statement on loan or credit application.
According to the indictment, the defendants conspired from July 31, 2013, to March 22, 2016, to defraud 21 financial institutions nationwide in connection with a loan scheme. Throughout the scheme the defendants would obtain loans and lines of credit after providing the financial institutions with fraudulent personal and income information.
Upon conviction, each charge calls for up to 30 years in federal prison.
This case was investigated by the Federal Bureau of Investigation with assistance from the El Paso Police Department. Assistant United States Attorneys Rifian S. Newaz and Debra Kanof are prosecuting this case on behalf of the Government.
Federal Grand Jury Indicts Former Dallas Resident Who Fled to Switzerland Instead of Appearing, as Ordered, in Federal Court in a Civil CaseRead the Press Release
DALLAS — A federal grand jury in Dallas returned an indictment yesterday charging fugitive Rudolf Suter, 66, formerly of Dallas, with two counts of making false statements under the penalty of perjury when he concealed in his voluntary bankruptcy filing in early 2014 that he had several open and recently closed bank accounts in both the United States and Europe, announced U.S. Attorney John Parker of the Northern District of Texas.
Suter, a citizen of Switzerland, failed to appear on March 9, 2016, for a hearing set in a civil case before U.S. District Judge David C. Godbey. That hearing was scheduled for Suter to show cause why he should not be held in contempt for violating post-judgment orders. The following day, Judge Godbey signed a contempt order and ordered that a civil contempt arrest warrant be issued. After remaining a fugitive for approximately nine months, on December 11, 2016, Suter was arrested on that civil contempt arrest warrant as he attempted to re-enter the U.S. at JFK International Airport. He remains in federal custody pursuant to a detention order signed by U.S. Magistrate Judge Irma C. Ramirez that noted his repeated failure to comply with orders of the U.S. District Court and the U.S. Bankruptcy Court, including his failure to appear at multiple court hearings.
On January 6, 2017, Suter was charged in a federal criminal complaint with making a false statement, under the penalty of perjury, in a bankruptcy case.
According to the affidavit filed with the criminal complaint and the indictment, in September 2011, counsel for plaintiffs Peter Denton and Harvest Investors, L.P., filed a civil complaint in order to collect a civil claim against in Suter. In August 2012, Judge Godbey issued a final judgment in that civil case in which he granted the motion for confirmation of a foreign arbitration award filed by plaintiffs Peter Denton and Harvest Investors, L.P. Judge Godbey ordered that Harvest have judgment against Suter for $1,025,430 and that Denton have judgment against Suter for $1,025,430. He also ordered Suter to pay interest on both money judgements from June 2009 until the date of payment, and he further ordered judgment against Suter to both plaintiffs to cover other expenses totaling more than $135,000, bringing the total money judgment against Suter to $2,187,055.
After the final judgment in August 2012, and continuing until March 2016, counsel for plaintiffs Denton and Harvest engaged in extensive post-judgment discovery attempts to identify and locate Suter’s property and assets in order to collect this more than $2.1 million judgment. However, from August 2012 through March 2016, Suter engaged in an ongoing pattern of concealing his financial information from the plaintiffs and the court. On January 17, 2014, Suter filed a voluntary bankruptcy petition in U.S. Bankruptcy Court for the Northern District of Texas.
In that bankruptcy petition, Suter concealed his true financial condition when he filed false statements in his Schedule B (Personal Property), his Statement of Financial Affairs, and in other bankruptcy-related documents. In fact, Suter’s efforts to conceal assets and financial information continued until he fled the jurisdiction of both the above-referenced civil case and his bankruptcy case.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. However, the maximum statutory penalty for the offenses charges is five years in federal prison and a $250,000 fine, per count.
This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas. Suter is the 26th defendant to have been charged as part of that initiative; 16 have been convicted, one resulted in a mistrial, and nine are pending trial.
Internal Revenue Service Criminal Investigation is leading the investigation in the Suter case. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
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Fairfield Country Landscaper Sentenced to 18 Months in Prison for Tax EvasionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DONALD BIAGI, JR., 55, of Fairfield, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 18 months of imprisonment, followed by one year of supervised release, for tax evasion.
According to court documents and statements made in court, BIAGI is the sole owner of Don Biagi Landscaping. BIAGI, through Don Biagi Landscaping, generated business income by providing landscaping and snowplowing services to commercial and residential customers in Fairfield County. BIAGI regularly negotiated client checks at banks for cash rather than depositing the checks into his business bank accounts. Between 2008 and 2010, BIAGI cashed approximately 574 client checks, ranging in amounts from $10.52 to $15,604.50, in the total amount of approximately $848,750.
BIAGI, who acted as his own bookkeeper, did not disclose to his tax return preparer the client checks he cashed and some of the client checks he deposited into his business account between 2008 and 2010. As a result, a total of $1,321,305 in business gross receipts were not reported on BIAGI’s federal tax returns for 2008, 2009, and 2010, resulting in his substantially under-reporting his taxable income. BIAGI failed to report approximately 62 percent of his business’s gross receipts in 2008, approximately 47 percent of the gross receipts in 2009, and approximately 60 percent of the gross receipts in 2010.
Judge Covello ordered BIAGI to pay $445,579 in back taxes, and additional penalties and interest that have accrued on his unpaid taxes. BIAGI made a $50,000 payment toward his restitution today.
On September 29, 2016, BIAGI pleaded guilty to one count of tax evasion. He was ordered to report to prison on April 1, 2017.
This matter was investigated by the Internal Revenue Service, Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
Eleven Defendants Charged in White Plains Federal Court with Narcotics Offenses in Sullivan CountyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York; William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”); James R. Farrell, the Sullivan County District Attorney; George Beach, the Superintendent of the New York State Police (“NYSP”); Michael A. Schiff, the Sullivan County Sheriff; Scott Kinne, the Chief of the Village of Liberty Police; and Robert Mir, the Chief of the Village of Monticello Police Department, today announced the unsealing of three Indictments charging 11 members of three separate drug trafficking organizations based in Sullivan County, New York, with conspiracy to distribute heroin and crack cocaine. In a coordinated operation earlier today, federal, state, and local law enforcement officers arrested seven defendants in Sullivan County. One of the charged defendants had already been arrested. Three defendants remain at large. Most of the defendants are expected to be presented in White Plains federal court today before U.S. Magistrate Judge Judith C. McCarthy.
Manhattan U.S. Attorney Preet Bharara stated: “Every day, in communities around the country, we witness the devastating effects of the heroin trade. With today’s charges, made possible by the work of the FBI and our local law enforcement partners, we seek to help stem the flow of heroin and crack cocaine in Sullivan County.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. stated: “This case is part of our continuing effort in the Hudson Valley area to eradicate the tragic loss of life that is so closely associated with those involved in the drug trade. Heroin is killing more people in this country than ever before, and the FBI Hudson Valley Safe Streets Task Force is doing everything we can to stop these dealers from using this potentially lethal drug so they can make money.”
Sullivan County District Attorney James R. Farrell stated: “Today’s arrests mark our sustained and continued joint law enforcement effort - federal, state and local - to disrupt, dismantle, and destroy heroin trafficking organizations in Sullivan County. Our joint commitment, with our federal law enforcement partners, will continue apace so that those who engage in this deadly trade are held accountable and responsible in a court of law. I want to thank U.S. Attorney Preet Bharara for his continued support of these efforts in Sullivan County, and all of the local police agencies in Sullivan County that have multiplied our impact in disrupting heroin trafficking by successfully partnering with the FBI Safe Streets Task Force.”
NYSP Superintendent George P. Beach II said: “Thanks to the hard work and partnership of law enforcement at the state, federal, and local level, we have arrested and charged these 11 individuals, who are allegedly responsible for trafficking heroin and cocaine throughout Sullivan County. These narcotics are dangerous for users, and threaten the safety and security of our neighborhoods. We will continue to work with our partners to aggressively pursue the criminals who profit at the expense of our communities.”
Sullivan County Sheriff Michael A. Schiff stated: “This is another significant step forward in our initiative to curtail gangs and drug sales in Sullivan County. I would like to thank all of the agencies involved in these arrests. We are much more effective working together than separately.”
Village of Liberty Police Chief Scott Kinne stated: “Heroin is poisoning our communities and our citizens, especially our youth. Targeting and arresting the dealers who choose to distribute heroin and cocaine into our communities will make our communities a safer place to work and raise our children.”
Village of Monticello Police Chief Robert Mir stated: “The Monticello Police Department, the United States Attorney for the Southern District of New York, the FBI, the Sullivan County District Attorney and our other partners in law enforcement have been investigating these drug organizations for a long time and today’s arrests were a culmination of that investigation. These arrests stem from a series of ongoing joint investigations that have been progressing for years. The unsealing of three federal indictments, and arrests, underscore our commitment to combat the ongoing drug trade in our community, which has so severely affected the youth of Sullivan County. We hope that these arrests will go a long way toward curbing the opiate epidemic in Sullivan County and thereby improving the quality of life. At the conclusion of our past operations, we warned drug dealers. Today we issue another warning: We have other ongoing investigations, we know who you are, where to find you and we will get you. We will not stop.”
As alleged in the Indictments unsealed today in White Plains federal court[1]:
ROSHEEN HILLIARD, a/k/a “Nyce,” a/k/a “Ghost,” a/k/a “Cutt,” a/k/a “Daddy,” 37, JERMAINE DRAYTON, a/k/a “Jerm,” 40, JESENIA FIELDS, 29, and LEON FOUNTAIN, a/k/a “Tiger,” 35, are charged in an indictment with conspiring to distribute and possess with intent to distribute one kilogram or more of heroin from at least 2013 through December 2016. This drug trafficking organization was led by HILLIARD and primarily operated in and around Sullivan County, New York.
AVERY AUBAIN, a/k/a “Dog,” 23, KATRINA BRIDGES, a/k/a “Trina,” 36, PAUL HERSHEWSKY, a/k/a “Hersh,” 38, TYRELL IVORY, a/k/a “Rell,” 23, JESSE KREBS, 27, and WILLIAM SOMERS, a/k/a “Billy,” 43, are charged in an indictment with conspiring to distribute and possess with intent to distribute one kilogram or more of heroin from at least 2013 through May 2016. AUBAIN and his alleged coconspirators distributed heroin in and around the Village of Liberty, New York, and other locations in Sullivan County, New York.
TERRY COVINGTON, 37, is charged in an indictment with conspiracy to distribute and possess with intent to distribute 28 grams or more of crack cocaine in and around Sullivan County, New York.
* * *
Charts containing the names of the defendants who were charged today, and the charges and maximum penalties they face, are attached. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the respective judges.
Mr. Bharara praised the outstanding investigative work of the FBI, the New York State Police, the Sullivan County Sheriff’s Department, the Village of Monticello Police Department, and the Village of Liberty Police Department. Mr. Bharara also thanked the Sullivan County District Attorney’s Office for its ongoing assistance in the case.
These cases are being handled by the Office’s White Plains Division. Assistant United States Attorneys Maurene Comey and Gillian Grossman are in charge of the prosecutions.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
CHARGE(S)
DEFENDANT(S)
MAXIMUM PENALTIES
Narcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin.)
ROSHEEN HILLIARD,
a/k/a “Nyce,”
a/k/a “Ghost,”
a/k/a “Cutt,”
a/k/a “Daddy,”
JERMAINE DRAYTON,
a/k/a “Jerm,”
JESENIA FIELDS, and
LEON FOUNTAIN,
a/k/a “Tiger”
Life in prison
Mandatory minimum:
10 years in prisonNarcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin.)
AVERY AUBAIN,
a/k/a “Dog,”
KATRINA BRIDGES,
a/k/a “Trina,”
PAUL HERSHEWSKY,
a/k/a “Hersh,”
TYRELL IVORY,
a/k/a “Rell,”
JESSE KREBS, and
WILLIAM SOMERS,
a/k/a “Billy”
Life in prison
Mandatory minimum:
10 years in prisonNarcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute 28 grams or more of crack cocaine.)
TERRY COVINGTON
40 years in prison
Mandatory minimum:
five years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictments and the descriptions of the Indictments set forth below constitute only allegations, and every fact described should be treated as an allegation.
Disbarred Winter Park Attorney Pleads Guilty to Defrauding Clients and Banks of $2.7 MillionRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Julie W. Kronhaus (52, Winter Park) has pleaded guilty to two counts of wire fraud and one count of bank fraud. She faces a maximum penalty of 20 years in federal prison for the wire fraud count and up to 30 years’ imprisonment for the bank fraud count. A sentencing date has not yet been set.
According to the plea agreement, from June 2009 to February 17, 2015, Kronhaus, who was a licensed attorney and Certified Public Accountant in Florida, defrauded her clients and banks of approximately $2.7 million. As part of her practice, Kronhaus would act as a trustee for her clients and also hold their money in various bank accounts depending on the purpose of trust. Instead of using the funds for the purpose intended by her clients, Kronhaus would divert the money into her law firm’s bank accounts and pay for her personal expenses.
In addition, Kronhaus engaged in a check kiting scheme where she would write checks with accounts that had insufficient funds. She would deposit the worthless checks into her trust account at another bank to give the appearance that there were sufficient funds in the account. She then issued checks from her trust account to her clients, taking advantage of the bank’s float time.
This case was investigated by the Seminole Financial Crimes Task Force and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney James D. Mandolfo.
Dewey Man Pleads Guilty to $8.2 Million K2 ConspiracyRead the Press Release
TULSA, OKLAHOMA – U.S. Attorney Danny C. Williams, Sr., announced today that John Ray James of Dewey, pleaded guilty before United States District Judge Claire V. Egan to his role in a conspiracy related to the purchase and sale of $8.2 million of synthetic cannabinoids, also known as K2, at three retail smoke shops in Tulsa, Owasso and Claremore.
At his change of plea hearing, James admitted that, from October 2011 to October 2014, he purchased for resale products falsely labeled as “potpourri,” “aromatherapy,” and “not for human consumption” which he knew contained synthetic drugs that customers purchased for human consumption.
“Synthetic drugs are a serious health threat that is especially dangerous to the young people of our communities,” said U.S. Attorney Williams. “These synthetic drugs are sold with harmless sounding names to impressionable youth who are typically unaware of the harmful chemicals they are ingesting. The chemicals in these drugs imported from China and Hong Kong are not approved for human consumption and have led to psychotic episodes, seizures and even death.”
IRS-CI Assistant Special Agent in Charge for the Dallas Field Office, Kelly Carpenter, stated, “Synthetic drugs represent a serious public health problem and are generally marketed toward teens and young adults. The consumption of these illegal substances endangers young people around the country and can result in serious health issues, including death. IRS-CI is committed to working with our law enforcement partners to protect the public and to dismantle the drug organizations that promote the use of these toxic chemicals for their own financial gain.”
DEA Assistant Special Agent in Charge Richard Salter stated, “The successful conclusion of this investigation represents what can be achieved when law enforcement, the medical community, educators and concerned parents come together for the welfare of our children. Synthetic cannabinoids are unpredictably dangerous and can be deadly.”
James will face a maximum penalty of five years in prison and a $250,000 fine. In addition, James agreed to the forfeiture of seized funds in the amount $1.7 million.
The investigation is part of the Organized Crime Drug Enforcement Task Force (OCDETF) and High Intensity Drug Trafficking Area (HIDTA) programs led by the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation and the Bureau of Indian Affairs. The case is being prosecuted by Assistant United States Attorney Catherine J. Depew.
Dallas, Texas Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that CHAD ANTHONY COX, age 27, of Dallas, Texas, pled guilty to FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by no more than 10 years imprisonment, and up to a$250,000.00 fine or both; and to POSSESSION OF A FIREARM IN FURTHERANCE OF A DRUG TRAFFICKING CRIME, in violation of Title 18, United States Code, Section 924(c)(1)(A), punishable by not less than 60 months imprisonment consecutive to any other sentence imposed.
The Indictment alleged that on or about October 6, 2016, within the Eastern District of Oklahoma, the Defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
The Indictment further alleged that on or about October 6, 2016, within the Eastern District of Oklahoma, the Defendant, did knowingly possess a firearm in furtherance of a drug trafficking crime for which he may be prosecuted in a court of the United States.
The charges arose from an investigation by the Chickasaw Nation Tribal Police, the Bureau of Indian Affairs, and the Drug Enforcement Administration.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant will remain in custody pending a sentencing hearing.
Assistant United States Attorney Dean Burris represented the United States.
Dallas County Man Sentenced for Jacksonville Bank BurglaryRead the Press Release
TYLER, Texas – A 33-year-old Dallas man has been sentenced to federal prison for burglarizing a bank in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Calvin Lee Browning pleaded guilty on Aug. 23, 2016, to bank burglary and was sentenced to 42 months in federal prison by U.S. Fifth Circuit Court of Appeals Judge Catharina Haynes. Browning was also ordered to pay restitution in the amount of $58,376.75.
According to information presented in court, on Feb. 9, 2016, Browning and three others broke into the Jacksonville branch of Austin Bank early in the morning before the bank had opened for business. Three of the individuals were dropped off at the bank while the other waited nearby with a getaway car. After disabling the bank’s surveillance cameras and security system, the defendants stole more than $30,000 from the bank’s automated teller machine cash drawers. They then left the bank, returned to the getaway car and left the area. A local patrol unit attempted a traffic stop and a high speed chase ensued. During the chase, all four men bailed out of the vehicle and attempted to flee on foot. One individual was apprehended at the scene and the others were arrested later
This case was investigated by the Federal Bureau of Investigation and the Jacksonville Police Department and prosecuted by Assistant U.S. Attorney Frank Coan.
Court Authorizes Service of John Doe Summons Seeking the Identities of U.S. Taxpayers Who Have Used Debit Cards in Furtherance of Tax EvasionRead the Press Release
Today a federal court in Montana unsealed an order authorizing the Internal Revenue Service (IRS) to serve a John Doe summons on Michael Behr of Bozeman, Montana, seeking information about U.S. taxpayers who may hold offshore accounts established by Sovereign Management & Legal LTD (SML), a Panamanian entity. Specifically, the IRS is seeking records of U.S. taxpayers who, during the years 2005 to 2016, had been issued a “Sovereign Gold Card” debit card that could be used to access the funds in those accounts in such a manner as to evade their obligations under internal revenue laws. The IRS uses John Doe summonses to obtain information about possible violations of internal revenue laws by individuals whose identities are unknown.
U.S. taxpayers seeking to hide their offshore assets often utilize the services of offshore trusts and corporate service providers that open bank accounts, create corporations and other entities, and serve as nominee officers. In its petition seeking the issuance of the John Doe summons, the United States alleges that SML advertises various “packages” to allow taxpayers to hide their assets offshore. These packages include corporations owned by other entities (to include fake charitable foundations), all held in the name of nominee officers provided by SML. SML then opens bank accounts for these entities and provides debit cards in the name of the nominee to the taxpayer. By using such cards, taxpayers seek to access their offshore funds without revealing their identities. U.S. District Court Judge Brian Morris found that there is a reasonable basis for believing that U.S. taxpayers may be using the Sovereign Gold Card to violate federal tax laws.
“The Department of Justice and the IRS are committed to stopping the use of foreign bank accounts to evade U.S. tax laws,” said Acting Assistant Attorney General David A. Hubbert, head of the Justice Department’s Tax Division. “This John Doe summons is yet another example of how we are using all available tools to identify, investigate and hold accountable those who cheat our nation’s tax system by hiding money offshore, as well as those individuals and entities facilitating U.S. taxpayers engaged in this conduct. The time to come forward and come into compliance is running short, and those who continue to violate U.S. tax and reporting laws will pay a heavy price.”
“In seeking this John Doe summons, the IRS wants to ensure that certain pre-paid payment card users are meeting their responsibilities to properly pay their taxes,” said IRS Commissioner John Koskinen. “We are taking this step as part of our longstanding efforts against the use of secret offshore accounts. This action will help ensure that pre-paid cards aren’t being inappropriately used to repatriate hidden income and avoid taxes.”
This case is part of an ongoing effort to stop U.S. taxpayers from using offshore financial accounts as a way to evade federal tax laws. The Justice Department previously obtained a similar order from the U.S. District Court for the Southern District of New York, authorizing issuance of eight separate John Doe summonses on bank and other entities for information related to SML and its customers in the United States. The evidence submitted in this request to issue a John Doe summons was built in part on information provided in response to the earlier summons.
Federal tax law requires U.S. taxpayers to pay taxes on all income earned worldwide. U.S. taxpayers must also report foreign financial accounts if the total value of the accounts exceeds $10,000 at any time during the calendar year. A deliberate failure to report a foreign account can result in a penalty of up to 50 percent of the amount in the account at the time of the violation. U.S. taxpayers are reminded that the IRS currently has in place an Offshore Voluntary Disclosure Program where U.S. taxpayers can come forward and disclose their offshore accounts and income. For more details, please go to the IRS’s website: www.irs.gov/uac/2012-Offshore-Voluntary-Disclosure-Program or https://www.irs.gov/individuals/international-taxpayers/options-available-for-u-s-taxpayers-with-undisclosed-foreign-financial-assets.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Columbia Tax Preparer Sentenced for Fraud Scheme, Failure to pay TaxesRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., tax preparer was sentenced in federal court today for defrauding his clients and failing to pay his personal income taxes, which totaled nearly $300,000.
David Lee Keithley, 63, of Columbia, was sentenced by U.S. District Judge Brian C. Wimes to two years in federal prison without parole. The court also ordered Keithley to pay $291,041 in restitution to his victims. Keithley must surrender on March 10, 2017, to begin serving his sentence.
On Aug. 2, 2016, Keithley pleaded guilty to one count of assisting in the filing of a false income tax return and one count of failing to file an income tax return.
Keithley owned and operated Keithley and Associates, offering tax preparation and payroll tax services in Columbia. Keithley was hired by his clients to prepare the proper tax returns as well as make the tax deposits to the government. After accepting funds from his clients, however, Keithley failed to make the clients’ tax deposits to the government. Instead, Keithley admitted, he used the money for his own personal benefit. When clients contacted Keithley after receiving letters from the IRS indicating these returns had not been filed or taxes had not been paid, he told his clients he would contact the IRS to correct it. The total amount of these misappropriated funds is $120,354.
Keithley also admitted that he willfully failed to file federal income tax returns for tax years 2009 through 2013. The total amount of tax owed by Keithley to the IRS for those years is $148,423. In addition, Keithley owes the state of Missouri $22,264 for state income taxes due for the years 2009-2013.
The total loss caused by Keithley’s criminal conduct is $291,041.
According to court documents, Keithley has a lengthy criminal history of theft and fraud, including three state felony convictions that involved, among other crimes, thefts from business clients and stealing funds that were supposed to be used for a client’s tax payment.
This case was prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by IRS-Criminal Investigation and the Missouri Department of Revenue.
Columbia Man Sentenced for Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Jordan Daniel Smith, 23, of Columbia, was sentenced by U.S. District Judge Brian C. Wimes to four years and nine months in federal prison without parole.
On July 5, 2016, Smith pleaded guilty to being a felon in possession of a firearm. Smith admitted that he was in possession of a Sig Sauer 9mm pistol and ammunition on Oct. 6, 2015.
Smith was arrested after he fled from Columbia police officers on Oct. 6, 2015. Smith, who was driving a 2000 Lincoln LS, was stopped for a traffic violation. When a police detective approached and instructed him to turn off his vehicle, Smith refused and sped away. Smith ran a stop sign, passed another car and drove at speeds between 70-80 mph on Columbia surface streets. Eventually Smith stopped again and was arrested.
A private citizen found the loaded handgun lying on the street along the route of the car chase.
The court found that Smith possessed the firearm in connection with another felony offense. Officers found a scale with cocaine residue in the center console of the car that Smith was driving. Officers also found marijuana and crumbs of cocaine in the vehicle.
Smith pleaded guilty in state court to resisting arrest by fleeing-creating a substantial risk of serious injury and was sentenced to four years’ custody on Aug. 22, 2016.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Smith has prior felony convictions for assault and armed criminal action.
This case was prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbia, Mo., Police Department.
Colorado Springs Man Who Used Identity of Internet Crimes Against Children Officer Sentenced to 30 Years in Federal Prison for Transportation of Child PornographyRead the Press Release
DENVER – Brandon Tyler Hill, age 31, of Colorado Springs, Colorado, was sentenced on January 19, 2017 by U.S. District Court Judge R. Brooke Jackson to serve 360 months (30 years) in federal prison, followed by a lifetime of supervision for transportation of child pornography, Acting U.S. Attorney Bob Troyer, Internet Crimes Against Children (ICAC) Commander for Colorado Lieutenant Christina Sheppard of the Colorado Springs Police Department, and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Denver Division Acting Special Agent in Charge John Eisert announced.
On May 6, 2015, a federal grand jury returned an Indictment charging Brandon Tyler Hill, of Colorado Springs, and Rhiannon Carnahan, of Woodland Park, Colorado, with child pornography related charges. Prior to the indictment, Hill and Carnahan were charged via Criminal Complaints. Hill pled guilty to an Information charging three counts of transportation of child pornography on March 31, 2016. Carnahan has pled guilty to child pornography charges and is scheduled to be sentenced on February 21, 2017.
According to court documents, the Colorado Springs Police Department initiated an investigation after a civilian witness reached out to law enforcement to report that Hill had sent unwanted child pornography images via email and was being extorted to produce more child pornography images. As part of the investigation, it was determined that the defendant utilized numerous identities, including that of an ICAC police officer, to extort the civilian witness to produce child pornography. The investigation revealed that Hill was also communicating online with co-defendant Rhiannon Carnahan, who he learned had access to a child who was 3 years old when the offense conduct began. Hill made numerous and repeated requests for images and videos depicting the 3 year old engaged in sexually explicit conduct. Hill also used various pseudonyms, including the identity of an ICAC police officer, to communicate with Carnahan. During the course of the communications and in response to Hill’s requests for child pornography depicting the 3 year old, Carnahan took sexually explicit images and videos of the child with her cell phone and sent them to Hill. Hill has a prior conviction for Criminal Attempt to Commit Sexual Exploitation of a Child in El Paso County, Colorado.
“This defendant earned his way to a 30-year sentence: he preyed on our most innocent and most vulnerable, and he pretended to be a cop at times while doing it,” said Acting U.S. Attorney Bob Troyer.
“This is a serious crime, and thanks to our officers and resources, the Colorado Internet Crimes Against Children (ICAC), working with law enforcement partners, were able to investigate and apprehend this individual,” ICAC Commander and Colorado Springs Police Department Lieutenant Christina Sheppard said. “This defendant is going to prison for a long time thanks to the work of law enforcement and civilians, and in partnership with the U.S. Attorney’s Office. This is an important fight to protect our children.”
“Our HSI special agents work closely with other law enforcement agencies to identify, investigate, and present for prosecution anyone who engages in producing, distributing or possessing child pornography,” said John Eisert, special agent in charge of HSI Denver. “The federal penalties for these heinous crimes against children are appropriately severe, as this 30-year prison sentence demonstrates.”
This case was investigated by the Colorado Springs Police Department and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), with support provided by the Woodland Park Police Department.
Hill was prosecuted by Assistant U.S. Attorney Alecia Riewerts, Project Safe Childhood Coordinator.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Colin Chisholm Pleads Guilty to Stealing More Than $2 Million from Investors in Television Network StartupRead the Press Release
United States Attorney Andrew M. Luger announced the guilty plea of COLIN ALEXANDER CHISHOLM, 67, for stealing more than $2.1 million from investors by lying to them about an investment in a purported television network startup. The defendant pleaded guilty yesterday before U.S. District Chief Judge John R. Tunheim in Minneapolis, Minn.
“Colin Chisholm is now facing the consequences for his long trail of lies as he ripped people off,” said Minnesota Commerce Commissioner Mike Rothman. “Chisholm lied to prospective investors about his personal and professional background. But most damaging for his victims, he lied about what he was doing with the money they had entrusted to him. Stopping this investment scam and bringing this white-collar criminal to justice demonstrate the strong partnership between the Commerce Fraud Bureau and federal authorities.”
“The U.S. Postal Inspection Service will continue to protect the integrity of the US Mail and aggressively investigate individuals such as Colin Chisholm who use the mail to defraud individuals or businesses of money and property,” said Craig Goldberg, Inspector in Charge of the Denver Division of the United States Postal Inspection Service, which covers Minnesota.
According to the defendant’s guilty plea, since 2004, CHISHOM used The Caribbean Television Network, Inc., (TCN) an entity he formed purportedly to broadcast satellite television throughout the Caribbean, to solicit funds from investors. Throughout the scheme, CHISHOLM told investors that TCN was on the verge of securing between $20 million and $100 million in funding to begin broadcasting, and that their investment would be used as interim financing for TCN.
According to the defendant’s guilty plea, as part of his scheme to obtain money from potential investors, CHISHOLM lied to them about the progress and viability of the main funding sources for TCN.
According to documents filed in court, CHISHOLM also lied to investors about his personal background. He told some investors that he was the grandson of Hugh J. Chisholm, Jr., and the son of William Chisholm, of the Oxford Paper Company. In falsely claiming this family lineage, CHISHOLM gave the false impression that he came from considerable family wealth. CHISHOLM also claimed to be a Scottish Chieftain of the Clan Chisholm and claimed to have close personal ties to members of the Bush family, specifically to Prescott S. Bush, Jr., the deceased brother of former President George H.W. Bush. CHISHOLM further claimed to provide scholarships to Bowdoin College, where Hugh J. Chisholm, Jr., received an honorary degree.
According to his guilty plea, CHISHOLM also lied about his professional background, most notably making the claim to potential investors that he had worked as Vice President for Turner Program Services, to have a relationship with Ted Turner, and to have participated in the development and launch of CNN and CNN Headline News, including writing the business plan for CNN.
According to his guilty plea, CHISOLM stole a total of more than $2.1 million from at least 38 investors.
This case is the result of an investigation conducted by the Minnesota Department of Commerce Fraud Bureau and the United States Postal Inspection Service.
The U.S. Attorney’s Office thanked the Hennepin County Attorney’s Office for its substantial assistance in this case.
This case is being prosecuted by Assistant United States Attorney Lola Velazquez-Aguilu.
Defendant Information:COLIN ALEXANDER CHISHOLM, 67
Minneapolis, Minn.Convicted:
• Mail fraud, 1 countCockeysville Man Facing Federal Indictment for Production and Receipt of Child Pornography and for CyberstalkingRead the Press Release
Baltimore, Maryland – A federal grand jury returned an indictment late on January 24, 2017, charging Kevin Graham Conlon, age 30, of Cockeysville, Maryland, with: production of child pornography; receipt of child pornography; and cyberstalking.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Chief James W. Johnson of the Baltimore County Police Department.
According to the indictment and court documents Conlon posed as an 18-year-old woman to obtain photos and videos of a minor victim engaged in sexually explicit conduct. Further, the indictment alleges that from April 13, 2016 through January 6, 2017, Conlon used electronic communication, including the internet and Facebook, to intentionally injure, harass, and cause substantial emotional distress to the victim and the victim’s family. Court documents allege that Conlon opened several Facebook profiles in the victim’s name, without her permission. These unauthorized accounts “friended” many of the victim’s friends and sent them the sexually explicit photos of the victim.
If convicted, Conlon faces a mandatory minimum sentence of 15 years and up to 30 years in prison for production of child pornography; a mandatory minimum sentence of five years and up to 20 years in prison for receipt of child pornography; and five years in prison for cyberstalking. Conlon is detained.
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.
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.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the federal case.
Co-owner of Chicago Medical Transport Company Sentenced to Five Years in Prison for Overbilling Illinois Medicaid $4.7 MillionRead the Press Release
SPRINGFIELD, Ill. – A Chicago man has been sentenced to five years in prison for fraudulent overbilling an estimated $4.7 million to Illinois’ Medicaid program for non-emergency medical transport. Gregory D. Toran, 68, of Hazel Crest, Ill., was also ordered to pay $4.7 million in restitution. U.S. District Judge Sue E. Myerscough, who sentenced Toran on Jan. 23, allowed Toran to remain on bond until the federal Bureau of Prisons directs him to self-report to a prison facility to begin his prison sentence.
Toran owned IBT Transportation, LLC., a non-emergency medical transport company, with Tina Kimbrough, 44, of Berwyn, Ill. In August, Kimbrough was sentenced to 30 months in prison for her role in the scheme. Kimbrough previously pled guilty to participating in the conspiracy with Toran. Kimbrough was also ordered to pay $4 million restitution, due jointly and severally with Toran.
As a result of the scheme, IBT fraudulently overbilled the state’s Medicaid program by an estimated $4.7 million for services not rendered, not rendered to the extent claimed, and for mileage well in excess of miles actually driven. During the period of the conspiracy, from December 2005 to June 2011, IBT billed and was paid claims totaling approximately $7.3 million.
The court found that IBT billed for deceased individuals and individuals who were not transported because they were in the hospital and billed based on dates individuals were approved for transportation, whether they rode or not. At times, IBT billed for more riders than it could physically transport. Further, the court found that although the handbook mileage rules were straightforward that transportation providers could only bill mileage for the first rider, Toran directed billers to incorrectly bill for mileage - from not billing mileage at all, to billing mileage for all riders, and later, every fourth rider.
The charges were investigated by the Illinois State Police Medicaid Fraud Control Bureau; the U.S. Department of Health and Human Services, Office of Inspector General, the Federal Bureau of Investigation; and the U.S. Postal Inspection Service. In addition, the Illinois Department of Health and Family Services, which administers Illinois’ Medicaid program, assisted in the investigation. Assistant U.S. Attorneys Gregory K. Harris and Timothy A. Bass prosecuted the case.
Clinical Psychologist and Owner of Psychological Services Centers Convicted in $25 Million Psychological Testing Scheme Carried Out Through Eight Companies in Four Gulf Coast StatesRead the Press Release
WASHINGTON –Two owners of psychological services companies, one of whom was a clinical psychologist, were convicted yesterday for their involvement in a $25.2 million Medicare fraud scheme carried out through eight companies at nursing homes in four states in the Southeastern United States.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Regional Office made the announcment.
Rodney Hesson, Psy.D, 47, of Slidell, Louisiana, licensed clinical psychologist and owner of Nursing Home Psychological Service of Louisiana LLC, Nursing Home Psychological Service of Mississippi LLC, Nursing Home Psychological Services of Florida LLC and Nursing Home Psychological Service of Alabama LLC (collectively NHPS), and Gertrude Parker, 63, of Slidell, Louisiana, owner of Psychological Care Services of Louisiana, Psychological Care Services of Mississippi, Psychological Care Services of Alabama and Psychological Care Services of Florida (collectively PCS), were convicted following a seven-day jury trial in the Eastern District of Lousiana. They were each convicted of one count of conspiracy to commit health care fraud and one count of conspiracy to make false statements related to health care matters. The jury verdict included a money judgment of $8,956,278, as well as forfeiture of Hesson’s home and at least $525,629 in seized currency. A sentencing hearing for both defendants is set for May 4, 2017, before U.S. District Court Judge Carl J. Barbier of the Eastern District of Louisiana.
According to evidence presented at trial, the defendants’ companies contracted with nursing homes in Alabama, Florida, Lousiana and Mississippi to allow NHPS and PCS clinical psychologists to provide psychological services to nursing home residents. Hesson and Parker caused these companies to bill Medicare for hours of psychological testing services that these nursing home residents did not need or in some instances did not receive. Between 2009 and 2015, NHPS and PCS submitted over $25.2 million in claims to Medicare, a significant amount of these claims being fraudulent. Medicare paid more than $13.5 million on the fraudulent claims.
The FBI and HHS-OIG investigated the case, which was brought by the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Louisiana. Senior Litigiation Counsel John Michelich and Trial Attorneys Katherine Raut and Katherine Payerle of the Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 3,000 defendants who collectively have billed the Medicare program for over $11 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.justice.gov/criminal-fraud/health-care-fraud-unit.
Clinical Psychologist and Owner of Psychological Services Centers Convicted in $25 Million Psychological Testing Scheme Carried Out Through Eight Companies in Four Gulf Coast StatesRead the Press Release
Two owners of psychological services companies, one of whom was a clinical psychologist, were convicted yesterday for their involvement in a $25.2 million Medicare fraud scheme carried out through eight companies at nursing homes in four states in the Southeastern United States.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Regional Office made the announcement.
Rodney Hesson, Psy.D, 47, of Slidell, Louisiana, licensed clinical psychologist and owner of Nursing Home Psychological Service of Louisiana LLC, Nursing Home Psychological Service of Mississippi LLC, Nursing Home Psychological Services of Florida LLC and Nursing Home Psychological Service of Alabama LLC (collectively NHPS), and Gertrude Parker, 63, of Slidell, Louisiana, owner of Psychological Care Services of Louisiana, Psychological Care Services of Mississippi, Psychological Care Services of Alabama and Psychological Care Services of Florida (collectively PCS), were convicted following a seven-day jury trial in the Eastern District of Louisiana. They were each convicted of one count of conspiracy to commit health care fraud and one count of conspiracy to make false statements related to health care matters. The jury verdict included a money judgment of $8,956,278, as well as forfeiture of Hesson’s home and at least $525,629 in seized currency. A sentencing hearing for both defendants is set for May 4, 2017, before U.S. District Court Judge Carl J. Barbier of the Eastern District of Louisiana.
According to evidence presented at trial, the defendants’ companies contracted with nursing homes in Alabama, Florida, Louisiana and Mississippi to allow NHPS and PCS clinical psychologists to provide psychological services to nursing home residents. Hesson and Parker caused these companies to bill Medicare for hours of psychological testing services that these nursing home residents did not need or in some instances did not receive. Between 2009 and 2015, NHPS and PCS submitted over $25.2 million in claims to Medicare, a significant amount of these claims being fraudulent. Medicare paid more than $13.5 million on the fraudulent claims.
The FBI and HHS-OIG investigated the case, which was brought by the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Louisiana. Senior Litigation Counsel John Michelich and Trial Attorneys Katherine Raut and Katherine Payerle of the Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 3,000 defendants who collectively have billed the Medicare program for over $11 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Clarion Man Pleads Guilty to Sexual Exploitation of a ChildRead the Press Release
A man who produced child pornography pled guilty today in federal court in Cedar Rapids.
Skyler Wyatt, age 25, from Clarion, Iowa, was convicted of one count of sexual exploitation of a child. At the plea hearing, Wyatt admitted that, in 2016, he knowingly used a child to produce child pornography.
Sentencing before United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Wyatt remains in custody of the United States Marshal pending sentencing. Wyatt faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 30 years’ imprisonment, $250,000 in fines, $5,100 in special assessments, and supervised release for 5 years to life following any imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Wright County Sheriff’s Office and the Webster County Sheriff’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 16-3045.
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Citizen of Togo Admits Misusing PassportRead the Press Release
ALBANY, NEW YORK – Koffi Roudolphe Sewoul, age 40, of Lome, Togo, pled guilty today to misuse of a passport.
The announcement was made by United States Attorney Richard S. Hartunian and Steven Bronson, United States Customs and Border Protection Port Director for the Champlain Port of Entry.
Sewoul admitted that on October 15, 2016, he attempted to enter the United States at the Champlain Port of Entry using his brother’s United States passport. Sewoul had successfully used the passport to travel from Togo to Accra, Ghana, on October 12, 2016 and then from Ghana to Montreal, Quebec, on October 13, 2016.
As a result of his conviction, Sewoul faces up to 10 years in prison and a fine of up to $250,000 when he is sentenced by U.S. Senior District Judge Lawrence E. Kahn. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by United States Customs and Border Protection and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.
Charlotte Pimp Sentenced to 40 Years for Sex Trafficking of A MinorRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Robert J. Conrad, Jr. sentenced Kenwaniee Vontorian Tate, 41, of Charlotte, to 40 years in prison for sex trafficking of a minor, sex trafficking by fraud, force and committing sex trafficking of a minor while being required to register as a sex offender, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Tate was also ordered to serve a lifetime under court supervision, to register as a sex offender, and to pay $42,100 as restitution to the victim of sex trafficking.
U.S. Attorney Rose is joined making today’s announcement by Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department (CMPD).
In making today’s announcement U.S. Attorney Rose stated, “Tate preyed upon a vulnerable young girl, lured her into a world of sex and violence and exploited her in the worst possible way. Sex trafficking and victimizing minors for financial gain is a reprehensible crime. My office will continue to work closely with our law enforcement partners to identify and prosecute sex traffickers who profit from prostituting minors.”
“Human traffickers strip victims of their humanity; treating them as little more than pieces of meat to generate cash,” said Special Agent in Charge Annan “The depravity of the subject in this particular case reaches its lowest form, by forcing underage girls into this dark underworld of abuse and victimization; the public should breathe a sigh of relief that this dangerous criminal is now safely behind bars.”
According to filed documents, statements at today’s sentencing hearing and evidence presented at Tate’s trial, between September 2014 and February 2015, Tate caused and forced a minor female to engage in prostitution. Tate met the victim when she was a 15-year-old runaway and became her pimp shortly after they met. Tate and the minor victim moved from hotel to hotel while she worked as a prostitute. Testimony at trial established that Tate controlled all of the profits from the prostitution of the minor victim and used it to support himself. He also controlled the victim, who Tate required to follow his rules and to ask for his permission to do anything. Tate advertised the minor victim for sex on an Internet website and arranged sexual encounters for her.
Testimony at trial also revealed that while she the was prostituting for him, Tate physically abused the minor victim. Specifically, Tate slapped the minor victim, punched her in the face, pulled her hair, threw her to the ground, and slammed her head into the wall when she did not do as Tate instructed. Testimony at trial also established that Tate was careful to only hit the victim in the face one time because visible bruises affected her ability to make money as a prostitute. Trial evidence showed that the sex trafficking came to an end when CMPD officers arrested Tate on February 17, 2015, while looking for a different missing minor and found the victim hiding in Tate’s hotel room closet.
Trial evidence also established that at the time that Tate caused the minor victim to engage in prostitution, Tate was registered as a sex offender in North Carolina based upon previous state convictions in Minnesota for criminal sexual conduct. Tate was also convicted previously in Minnesota federal court for conspiracy to commit sex trafficking of a minor for his involvement in a sex trafficking ring, whose members transported adult and juvenile females from Minnesota to Las Vegas, Nevada, to engage in commercial sex acts. The judge in that case ordered Tate to serve a 16-month sentence.
Tate has been in federal custody since his arrest in November 2015. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was led by HSI and CMPD. Assistant U.S. Attorney Kimlani M. Ford of the U.S. Attorney’s Office in Charlotte prosecuted the case.
California Man Sentenced to 37 Years for Attempted Bank Robbery, Discharging FirearmRead the Press Release
Jackson, TN – A California man who shot a woman twice during an attempted bank robbery has been sentenced to more than three decades in federal prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
"Dominic Williams’ greed and reckless disregard for human life led him to shoot a law-abiding citizen and attempt to rob a federal bank," said U.S. Attorney Stanton. "This stern sentence is a clear reminder that individuals who decide to commit violent acts in our community will face severe consequences."
According to information presented in court, Dominic Williams, 37, of Los Angeles, California, snuck into the carport of Pamela Janeice Frisbee on the morning of March 18, 2015. Frisbee, a manager of a BancorpSouth bank, was at her home in Humboldt, Tennessee, preparing to leave for her job. When she exited her house and walked to the carport to get into her car, Williams was hiding in front of the vehicle with a Glock .40 caliber pistol. He stood up and pointed the gun at Frisbee before asking her if "she wanted to die today?"
Williams forced Frisbee into the driver’s seat of her vehicle at gunpoint and demanded that she drive to BancorpSouth. Once at the bank, Williams forced her to open the doors — the establishment had not yet opened — and the two went inside. He had her disable an alarm, and demanded she obtain money from the tellers’ drawers. The victim responded there was no money in the drawers. Williams then demanded that she open vaults in the bank to obtain money. When the victim told him that she was unable to open the vaults, he fired multiple shots at her, striking her in the chest and arm. Frisbee subsequently fell to the ground and played dead. Williams then shot and kicked out the back windows of the bank and fled.
Independent witnesses and bank employees notified the Humboldt Police Department (HPD) of the incident. After arriving on the scene, HPD’s chief of police observed Williams stripping clothing off into a dumpster a block from the bank. The police chief was able to arrest him, and the Federal Bureau of Investigation (FBI) was notified.
After Frisbee was airlifted to a Memphis hospital, FBI investigators responded. Williams was advised of his Miranda rights which he agreed to waive. He provided a recorded statement, informing FBI agents of where he hid his firearm and admitted that he attempted to rob the BancorpSouth bank. FBI agents subsequently recovered the .40 caliber pistol used in the crime. And clothing consistent with witness descriptions of the robber was recovered, as well as a mask and a roll of duct tape.
Frisbee was able to testify in federal court that she was kidnapped, forced against her will, assaulted, and that a firearm was discharged inside the bank.
"This sentence should send a resounding message that violent crimes will not be tolerated, and that law enforcement will not rest until the offenders are caught, prosecuted and held accountable for their actions," said Assistant Special Agent in Charge Jeremy N. Baker of the Memphis Field Office of the FBI. "I commend the Humboldt Police Department for their immediate response to identify and arrest this bank robber, and the professionalism and partnership of all involved throughout the investigation to bring him to justice."
Humboldt Police Chief Rob Ellis said: "I am grateful that our victim is doing well after such a horrendous act committed against her. I pray this gives her some closure and wish her all the best after what she has overcome. I also appreciate the help from the FBI, Gibson County Sheriff's Department, 28th Judicial Drug Task Force, Humboldt Fire Department, Gibson County EmergencyMedical Services, Humboldt Area Rescue Squad, and all others that assisted during the incident."
In August 2016, Williams pleaded guilty before U.S. District Judge J. Daniel Breen to single counts of attempted bank robbery, possession of a firearm during a crime of violence, and felony possession of a firearm.
On Wednesday, January 25, 2017, Judge Breen sentenced Williams to 444 months in federal prison. He will also be required to pay $66,719 in restitution.
This case was investigated by the FBI; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and the HPD.
Assistant U.S. Attorney Matthew Wilson prosecuted this case on the government’s behalf.
California Drug Trafficker Sentenced to Federal PrisonRead the Press Release
FARGO - US Attorney Christopher C. Myers announced that on January 25, 2017, Francisco Torrez, 35, Carson, Cali., was sentenced before US District Judge Ralph R. Erickson to serve 20 years in prison after pleading guilty to Possession with Intent to Distribute a Controlled Substance. Judge Erickson also sentenced Torrez to serve five years of supervised release, and to pay a $100 special assessment to the Crime Victim’s Fund.
On February 26, 2016, the North Dakota Highway Patrol pulled over a vehicle driven by Torrez near Mapleton, North Dakota. A search of Torrez’s vehicle by the North Dakota Highway Patrol uncovered 17.8 pounds of methamphetamine and a large sum of cash. Upon further investigation it was determined that Torrez was working as a courier transporting methamphetamine from Las Vegas to Minneapolis.
This case was investigated by the North Dakota Highway Patrol Department.
Assistant US Attorney Jennifer Puhl prosecuted the case.