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28 February 2017
E.D. Pa. U.S. Attorney Reaches Settlement for False Claims Act Violations on Project Management Oversight ContractRead the Press Release
PHILADELPHIA – Louis D. Lappen, Acting United States Attorney for the Eastern District of Pennsylvania, announced today that the United States had reached a civil settlement with CH2M Hill, Inc. (“CH2M”) resolving civil claims concerning CH2M’s improper billing under a Joint Venture Project Management Oversight Agreement (“PMO”) with Amtrak. To resolve the government’s civil claims against it, CH2M has agreed to pay the United States $1,500,000.00 pursuant to the settlement agreement.
CH2M and its joint venture partner performed project management functions on several Amtrak construction projects throughout the eastern United States. The PMO contract required that CH2M bill actual labor and overhead rates for the employees working the various projects. The United States contends that it has certain civil claims against CH2M arising from CH2M’s billing under the PMO contract during the period January 1, 2011 through December 31, 2014. This conduct included: a) continuing to bill overhead at a maximum rate listed in the Joint Venture PMO Contract without adjusting the overhead rate to actual costs incurred; b) billing employees of the lower overhead related company CH2M HILL Constructors, Inc. (“CCI”) as if they were employees of the higher overhead CH2M; and c) billing overhead rates of field employees that did not match the actual overhead rates of field employees.
The case arose when an audit of CH2M’s billing showed discrepancies. The case was investigated by Amtrak and the Department of Transportation’s Offices of Inspector General. For the United States Attorney’s Office for the Eastern District of Pennsylvania, this investigation and settlement was handled by Assistant United States Attorney Colin M. Cherico.
The claims settled by this settlement agreement are allegations only and there has been no determination of liability.Drug Trafficking Charges Filed Against Alleged Members of Violent Groups in Philadelphia Public Housing FacilityRead the Press Release
PHILADELPHIA – Two indictments[1] were unsealed today charging 24 people in violent drug trafficking groups that had operated out of the Norman Blumberg Apartment Complex, a public housing facility in Philadelphia, announced Acting United States Attorney Louis D. Lappen. The first indictment (Criminal No. 17-71) charges Edward Stinson, 27, Emmett Perkins, 29, Rondell Holloway, 27, Jamillah Bellamy, 35, Debra Baylor, 28, Jerry Lawrence, 27, Germel Perkins, 24, Carl Stinson, 21, Imere Stinson, 22, Daquian Brown, 22, Reginald Copper, 55, Terrance Jackson, 47, and Stephen Dawkins, Sr., 52, all of Philadelphia, with conspiracy to distribute 280 grams or more of crack cocaine, distribution of crack cocaine within 1,000 feet of public housing (a drug-free zone), and related crimes in 86 separate counts. The second indictment (Criminal No. 17-72) charges Juan Jarmon, 30, Damon Edwards, 31, Donta Edwards, 28, Raheen Butler, 33, Michael Ferrell, 25, Dottie Good, 30, Taft Harris, Jr., 27, Steven Thompson, 34, Derek Fernandes, 58, Anthony Staggers, 34, and Gene Wilson, Jr., 40, all of Philadelphia, as well as Edward Stinson and Dawkins, with conspiracy to distribute 280 grams or more of crack cocaine, distribution of crack cocaine within 1,000 feet of public housing (a drug-free zone), and related crimes in 48 separate counts.
It is alleged that members of these drug trafficking groups sold crack cocaine 24 hours a day, 7 days a week, in and around the public housing facility, employing a large network of supervisors, shift sellers, and lookouts, including juveniles. Members of these groups allegedly supplied millions of dollars of crack cocaine in the alleys, hallways, and residences of this public housing facility and to the streets of this neighborhood. It is further alleged that members of these groups used and carried firearms, robbed rival drug dealers, and used intimidation, threats, and violence to further the interests of the groups. For example, the second indictment (Criminal No. 17-72) alleges that when one female resident told others that the group sold drugs, Jarmon threatened her and then physically assaulted her, allowing the group to continue selling crack cocaine.
“These indictments charge the defendants with running large-scale, violent drug trafficking groups in a public housing facility that provided housing to low-income residents and families,” said Lappen. “Individuals who engage in drug trafficking, particularly those who prey on the financial weakness and vulnerability of persons, such as drug users and addicts, juveniles, and those living in poverty, should know that they will be prosecuted and held accountable for their crimes. We will continue to commit the federal resources necessary to combat these drug trafficking groups and give the many good residents in these areas an opportunity to reclaim their neighborhoods.”
“For years, this organization has maintained a stranglehold on the Blumberg Apartments complex and surrounding neighborhoods,” said FBI Special Agent in Charge Michael Harpster. “They’ve used intimidation and violence to maintain control of that area. The FBI and our law enforcement partners are determined to bring drug traffickers to justice, for the crimes committed and incalculable damage done to our communities.”
“These defendants terrorized the residents of the Norman Blumberg Apartment complex with their drug trafficking activities alleged in these indictments as well as the violence associated with their illegal trade,” said Gary Tuggle, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “The DEA, working with its law enforcement partners such as the FBI, PPD, Philadelphia Housing Authority Police Department, and the Philadelphia District Attorney’s Office will remain vigilant in pursuing cases against drug trafficking organizations that seek to hold residents of public housing communities hostage with their criminal activities.”
According to the indictments, Edward Stinson was a leader of both drug trafficking groups and conducted drug trafficking activities from both inside and outside of prison. As charged in the first indictment (Criminal No. 17-71), Edward Stinson and Emmett Perkins controlled drug sales in various areas of the public housing facility from 2010 to 2015. As charged in the second indictment (Criminal No. 17-72), Jarmon, Damon Edwards, and Edward Stinson controlled drug sales in various areas of the public housing facility from 2012 to 2014. These leaders allegedly obtained bulk crack and cocaine, cooked and packaged crack cocaine into bundles, hired, fired, and supervised shift sellers and lookouts, levied taxes on members and customers, and provided protection from other drug trafficking groups. It is alleged that the shift sellers were the daily workers employed by the leaders to sell crack cocaine in the locations controlled by the groups, while the lookouts assisted other members of the groups by alerting them to the presence of law enforcement and directing customers to the shift sellers.
If convicted of all charges, each defendant faces a maximum possible sentence of life in prison and a mandatory minimum of 10 years in prison.
This case was investigated by the United States Attorney’s Office, Federal Bureau of Investigation, and Drug Enforcement Administration in collaboration with the Philadelphia Police Department, the Philadelphia District Attorney’s Office and the Philadelphia Housing Authority Police. It is being prosecuted by Assistant United States Attorneys Jerome Maiatico and Katayoun Copeland.
[1] An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Denver Man Sentenced to Prison for Illegally Possessing Firearms Stolen from Colorado Gun StoreRead the Press Release
DENVER – Eric Michael Perez, age 20, of Denver, Colorado, was sentenced late last week by U.S. District Court Judge Philip A. Brimmer to serve 70 months (nearly 6 years) in federal prison for being a felon in possession of a firearm, Acting U.S. Attorney Bob Troyer and ATF Special Agent in Charge Debora Livingston announced. Following his prison sentence, Judge Brimmer ordered the defendant to serve 3 years on supervised release. The defendant, who appeared at the sentencing hearing in custody, was remanded at the conclusion.
Defendant Perez was indicted by a federal grand jury on July 27, 2016. He pled guilty to the charge in the indictment on November 23, 2016. He was sentenced by Judge Brimmer on February 23, 2017.
According to court documents, including the stipulated facts contained in the defendant’s plea agreement, on June 21, 2016, 35 guns were stolen from Colorado Gun Broker in Jefferson County during an after-hours burglary. While processing the scene, investigators discovered fresh blood on the price tag of a shotgun used to break glass display cases containing the stolen weapons. The blood sample and DNA profile were analyzed and matched the defendant.
On June 29, 2016, ATF agents and Aurora Police Department Officers, through investigative leads and databases, located the defendant a residence in Aurora, Colorado. He was taken into custody on outstanding state and federal warrants. Law enforcement received consent to search the residence and recovered two firearms in the defendant’s bedroom that were stolen in the Colorado Gun Broker burglary.
“Investigating the gun store burglaries and recovering the stolen firearms is a top priority for ATF in Denver,” said ATF Denver Field Division Special Agent in Charge Debora Livingston. “ATF is collaborating closely with all the affected police departments and neighboring jurisdictions to pool our intelligence and investigative resources. This is our first success, and it will not be the last.”
Perez was prohibited from possessing firearms after having been convicted of crimes punishable by more than one year in prison. He was also serving a 15-month consecutive sentence in the Colorado Department of Corrections for a probation violation related to an auto theft conviction out of Jefferson County.
The case was investigated by ATF, Aurora Police Department and Jefferson County Sheriff’s Office.
The defendant was prosecuted by Assistant United States Attorney Caroline Friedman.
Davenport Man Sentenced to Prison for Drug TraffickingRead the Press Release
DAVENPORT, IA - On February 27, 2017, Curtis Lee Dale, 44, of Davenport, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 300 months in prison for conspiracy to manufacture, distribute, and possess with intent to distribute 500 grams and more of cocaine, 28 grams and more of cocaine base, and 100 grams and more of heroin; and, for possession with intent to distribute 500 grams of cocaine, at least 28 grams of cocaine base, and 100 grams of heroin, announced United States Attorney Kevin E. VanderSchel. A concurrent sentence of 120 months in prison was also imposed for a felon in possession of a firearm charge. Dale committed these offenses while on federal supervised release for drug and gun convictions from 1997. At the conclusion of the sentencing hearing, Chief Judge Jarvey imposed a concurrent sentence of 60 months for violating supervised release in the 1997 case. Dale was also ordered to serve eight years of supervised release following the period of imprisonment, and pay $300 to the Crime Victims’ Fund.
On June 2, 2016, Dale was arrested after U. S. Drug Enforcement Administration agents and members of the Rock Island Police Department searched a storage unit accessed by Dale. The agents discovered more than a kilogram of cocaine, 5 ounces of cocaine base, and more than 100 grams of heroin in the unit along with a Ruger, 9mm pistol and ammunition. That same day, Dale was located and found with individually wrapped baggies of heroin in his pocket and approximately two ounces of cocaine in his residence.
On October 3, 3016, trial commenced in the U.S. Courthouse in Davenport, Iowa. On October 5, 2016, the jury returned a verdict of guilty conspiracy involving 28 grams and more of cocaine base, 500 grams and more of cocaine, and 100 grams and more of heroin, and guilty of the drug possession charge and the gun offense.
This matter was investigated by the U. S. Drug Enforcement Administration, the Rock Island Police Department, the Bettendorf Police Department, and the Iowa Division of Narcotics Enforcement. 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 calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected]
Columbus Bank Robber Pleads Guilty After Jury SelectedRead the Press Release
G.F. “Pete” Peterman, III, United States Attorney for the Middle District of Georgia, announces Christopher Belt, age 26, of Columbus, Georgia entered a plea of guilty on February 27, 2017 to bank robbery and possession of a firearm during the commission of a crime of violence in front of District Court Judge Clay D. Land. Mr. Belt entered the guilty plea after a jury had been selected to hear his case.
The evidence showed that Mr. Belt entered the Milgen Road branch of the Wells Fargo Bank on March 18, 2016, wearing a disguise and carrying a firearm. Mr. Belt approached a lone teller, demanded money, and was given $8,101 in bank proceeds. He then exited the bank and fled in a gold-colored Ford Fusion. The robbery lasted for less than a minute. An employee at the bank managed to write down the Fusion’s license plate number, and Columbus Police detectives were able to trace the car to a known associate of Mr. Belt’s. Mr. Belt was arrested in connection with the robbery on April 5, 2016. The stolen money and the firearm used during the robbery were not recovered.
Sentencing has been set for July 13, 2017. Bank robbery is punishable by a maximum of 20 years imprisonment. Possession of a firearm during the commission of a crime of violence is punishable by a maximum of five years imprisonment and must be served consecutive to any imprisonment due to the bank robbery charge. As a condition of his sentence, Mr. Belt will have to pay $8,101 restitution to Wells Fargo Bank.
The investigation primarily was worked by the Columbus Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Melvin E. Hyde is prosecuting the case on behalf of the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Broward County School District Employee Charged with Obstructing Drug InvestigationRead the Press Release
A Broward County School District employee has been charged with obstructing a drug investigation.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Porsha Session, 31, of Boynton Beach, Florida, was charged by Indictment with obstructing an official proceeding, in violation of Title 18, United States Code, Section 1512(c)(2). If convicted, Session faces a statutory maximum term of 20 years’ imprisonment of 20 and a fine up to $250,000.
According to the indictment, federal, state and local law enforcement agencies were investigating drug trafficking and other criminal offenses in Lauderhill, Florida. Session’s relative was one of the detectives from the Lauderhill Police Department assigned to the Lauderhill investigation. During the course of the Lauderhill investigation, law enforcement, including the defendant’s relative, received information, including details from a confidential informant, regarding individuals involved with drug trafficking, and vehicles used by and telephone numbers associated with, members of the criminal enterprise.
Session obtained information provided to her relative concerning the Lauderhill investigation. Session, while working as an employee of the Broward County School District, then made a series of telephone calls to a target of the drug trafficking investigation and warned the individual that he/she and other persons were being monitored by law enforcement. Session also warned the target that an inside source, an informant, was providing details of the criminal enterprise to law enforcement. As a result of Session’s disclosure, the target changed his/her telephone number in an attempt to avoid detection by law enforcement and the confidential informant was moved for his/her safety.
Mr. Ferrer commended the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Drug Enforcement Administration, Lauderhill Police Department, and Sunrise Police Department for their investigative assistance with this matter. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
An indictment is a formal charging document notifying the defendant of the criminal charges. All persons charged in an indictment are presumed innocent until proven guilty in a court of law.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Boston Man Pleads Guilty to Identity Theft in Scheme to Defraud Retirement AccountsRead the Press Release
BOSTON – A Boston man pleaded guilty today in connection with his role in a scheme to steal personal information and bank account numbers to withdraw money from retirement accounts.
Kevin Marseille, 26, pleaded guilty to identity theft, access device fraud, and conspiracy to commit those offenses. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for May 31, 2017.
In 2014, Marseille approached Jasmine Banks, who, at the time, worked as a customer service employee at Mercer, Inc., in Norwood, Mass. Marseille used Banks to obtain personally identifiable information and bank account information for individuals whose retirement accounts were administered by Mercer, a New York-based company, which provides consulting and related services for employers, including administration of retirement benefit plans.
From approximately February 2014 to April 2014, Banks accessed customer account information from her computer and provided this information to Marseille via email. Marseille obtained the names, addresses, and bank account and routing numbers for approximately 270 Mercer account holders. In many cases, he also obtained account holders’ dates of birth and social security numbers. He further sought and obtained detailed account access information, including usernames, answers to password-reset questions, and detailed instructions about how to access and withdraw funds from four retirement accounts with substantial balances.
The retirement account information was used to load a prepaid card with nearly $20,000 in fraudulently obtained funds. Marseille then used the prepaid card to purchase electronic goods and other products at retailers, including Target and Best Buy. Intervention by Mercer and law enforcement prevented further account access and withdrawals. Mercer has cooperated fully with the government’s investigation.
In March 2016, Banks pleaded guilty to conspiracy to commit access device fraud and identity theft and is scheduled to be sentenced on March 27, 2017.
The charge of identity theft provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charges of access device fraud and conspiracy each provide for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Stephen A. Marks, Special Agent in Charge of the United States Secret Service made the announcement today. Assistant U.S. Attorney David J. D’Addio of Weinreb’s Cybercrime Unit is prosecuting the case.
Attorney General Announces Crime Reduction and Public Safety Task ForceRead the Press Release
Attorney General Jeff Sessions today announced the formation of the U.S. Department of Justice Task Force on Crime Reduction and Public Safety.
The Task Force was formed pursuant to the President’s Executive Order on a Task Force on Crime Reduction and Public Safety and will be chaired by the Deputy Attorney General. Task Force members will be drawn from relevant Department components, and will include the Director of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Administrator of the Drug Enforcement Administration (DEA), the Director of the FBI and the Director of the U.S. Marshals Service (USMS).
“The President issued an executive order, and I feel strongly about it,” said Attorney General Sessions. “On my first day in office, I called in the heads of the four major law enforcement agencies to discuss this plan. Violent crime is on the rise, and we must always remember that crimes are committed against real people. The creation of this task force is a critical step toward confronting this crisis vigorously, effectively and immediately.”
The task force is central to the Attorney General’s commitment to combatting illegal immigration and violent crime, such as drug trafficking, gang violence and gun crimes, and to restoring public safety to all of the nation’s communities.
The task force is charged with developing strategies to reduce crime; identifying deficiencies in existing laws and policies that have made them less effective in reducing crime and proposing new legislation and policies to improve public safety and reduce crime; evaluating the availability and adequacy of crime-related data and identifying measures to improve it; and conducting any other relevant studies. In conducting its work, the task force will consult with federal, state, tribal and local law enforcement, law enforcement organizations and victims’ and community advocacy organizations, among others, to learn about successful local efforts and how they can best be supported at the federal level.
“For more than a hundred years the women and men of the FBI have worked to address threats to the American people,” said Director James Comey of the FBI. “I look forward to continuing and building upon the great partnerships with our federal, state, local, and tribal counterparts on this initiative to combat violent crimes, gang activities and drug trafficking – all of which exact a high toll on our country.”
“The safety and well-being of our communities and our citizens is a vital part of our mission,” said Acting Administrator Chuck Rosenberg of the DEA. “I look forward to our continued close work on the task force with our law enforcement partners on these crucial issues.”
“The men and women of the United States Marshals Service stand ready to work with our federal, state, local and tribal law enforcement partners to remove the underlying criminal element from our communities,” said Acting Director David L. Harlow of USMS. “In 2016, working with our task force partners, the USMS arrested over 106,000 violent fugitives. We look forward to finding innovative methods to further reduce violent crime across our nation.”
“ATF’s top priority is reducing violent crime,” said Acting Director Thomas Brandon of the ATF. “Across the nation, ATF focuses its resources on arresting and prosecuting violent criminals who use firearms to terrorize communities. ATF’s Crime Gun Intelligence Centers provide timely, actionable leads to our agents and our partner agencies so they can identify, investigate and apprehend trigger-pullers and those who illegally supply them with firearms. ATF looks forward to working with Attorney General Sessions and our federal, state, tribal and local law enforcement counterparts to further enhance our violent crime reduction strategies through the Task Force on Crime Reduction and Public Safety.”
Arkansas Man Arrested on Child Sex Tourism ChargesRead the Press Release
An Ashdown, Arkansas, resident has been arrested and charged by criminal complaint with traveling in foreign commerce with the purpose of engaging in illicit sexual conduct with a minor, in violation of Title 18, United States Code, Section 2423(b).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
According to allegations made in the criminal complaint, Daniel John Pye, 35, originally of Bradenton, Florida, traveled from the Southern District of Florida to Haiti on multiple occasions from the years 2008 through 2011 for the purpose of sexually abusing minors. Pye, who ran a missionary orphanage in Jacmel, Haiti, is alleged to have engaged in illicit sexual conduct with minor female children who resided at his orphanage.
Since leaving Haiti, Pye is believed to have resided in the Liberty Hill, Texas, Texarkana, Texas, and Ashdown, Arkansas, areas.
Law enforcement encourages the public to report suspected child predators and any suspicious activity to Homeland Security Investigations (HSI) through the toll-free Tip Line at 1-866-DHS-2-ICE or by completing the online tip form at https://www.ice.gov/webform/hsi-tip-form.
Mr. Ferrer commended the investigative efforts of ICE-HSI. Mr. Ferrer thanked the Florida Department of Law Enforcement for their assistance. The case is being prosecuted by Assistant U.S. Attorney Benjamin Widlanski.
A criminal complaint is only an accusation and a defendant is presumed innocent until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Area Man Charged with Evading Income TaxesRead the Press Release
HOUSTON – A local man is set to make an appearance in federal court for willfully attempting to evade or defeat his 2012 income taxes, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Rick Goss of IRS – Criminal Investigation (CI).
“Every person has a duty to pay their fair share of taxes,” said Goss. “This case represents IRS-CI's commitment to unravelling the most sophisticated ways that offenders try to evade paying their obligations.”
Daniel Bart Thedinger is charged by criminal information, filed Feb. 15, 2017. He is expected to make an initial appearance before U.S. Magistrate Judge Mary Milloy today at 10:00.
According to the charges, Thedinger reported joint taxable income of $355,322 for 2012, when the true amount was actually $649,613. Thedinger still owes a substantial additional income tax of $86,192 for 2012, according to the allegations.
If convicted, Thedinger faces up to five years in federal prison if convicted of tax evasion as well as a possible $250,000 maximum fine.
IRS-CI conducted the investigation. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.
A criminal information is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Amarillo Men Sentenced on Cocaine OffensesRead the Press Release
AMARILLO, Texas — Two defendants, who pleaded guilty in November 2016 to their respective roles in cocaine trafficking have been sentenced, announced John Parker, U.S. Attorney for the Northern District of Texas.
Yesterday, U.S. District Sidney A. Fitzwater sentenced Roberto Rodriguez, 32, to a 60-month term of imprisonment. Rodriguez pleaded guilty to one count of possession with intent to distribute 500 grams or more of cocaine and aiding and abetting. Co-defendant Emmanuel Hira Robles, 30, was sentenced to 71 months in federal prison. He also pleaded guilty to one count of possession with intent to distribute 500 grams or more of cocaine and aiding and abetting.
According to court documents, on August 11, 2016, a Texas Department of Public Safety Trooper stopped a SUV for speeding and following to close. The Trooper noticed that the driver, later identified as Robles, took an abnormal amount of time to stop once the Trooper initiated the traffic stop. Upon making contact with Robles and the passenger, who was later identified as Rodriguez, the Trooper noticed indicators of possible criminal activity.
While the Trooper was in the process of issuing Robles a warning for the two traffic violations, he noticed inconsistencies between Robles’ and Rodriguez’ stories about their trip. The Trooper asked Robles for consent to search his vehicle, and Robles refused. The Trooper then asked Robles and Rodriguez to wait on the roadside while he waited for a narcotics detection canine unit. The narcotics detection canine conducted a free-air sniff of Robles’ vehicle, and the canine alerted to the presence of narcotics in Robles’ vehicle. Based on the canine’s alert to the presence of narcotics, the Trooper searched the vehicle. During the search, the Trooper observed a carpeted box that, based on his training and experience, he knew to be used to smuggle narcotics and currency. Both Rodriguez and Robles were immediately handcuffed and placed under arrest. Robles told the Trooper how to open the compartment. Two bundles were located in the compartment. A field test of the substance in the bundles yielded a positive result for the presence of cocaine, a Schedule II controlled substance.
The suspected cocaine was confirmed to be cocaine with a net weight of 1,995 grams.
The Drug Enforcement Administration and Texas Department of Public Safety investigated. Assistant U.S. Attorney Joshua Frausto prosecuted the case.
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Amarillo Man Admits Possessing Prepubescent Child PornographyRead the Press Release
AMARILLO, Texas — James Kenny Crawley, 60, of Amarillo, Texas, appeared today in federal court before U.S. District Judge Sidney A. Fitzwater and pleaded guilty to one count of possession of prepubescent child pornography, announced John Parker, U.S. Attorney for the Northern District of Texas.
Crawley, who is on bond, faces a maximum statutory penalty of 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. Sentencing will be set at a later date.
According to documents filed in the case, Crawley used a laptop computer at his residence to search the Internet for images and videos of child pornography. In the course of searching for this material, Crawley located, downloaded and viewed approximately 5,000 images and over 100 videos constituting child pornography, and some of those images involved prepubescent minors engaging in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Ochiltree County Sheriff’s Office, Texas Rangers and Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Joshua Frausto is in charge of the prosecution.
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Aggravated Felon Sentenced for Attempting to Re-Enter United StatesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, announced today that Alfredo S. DePina, 27, who was convicted of attempting to reenter the United States after having been deported subsequent to a conviction for an aggravated felony, was sentenced to 16 months in prison by U.S. District Judge Lawrence J. Vilardo. DePina is a citizen of Cape Verde, an archipelago located about 400 miles off the western coast of Africa.
Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that on August 23, 2016, the defendant attempted to enter the United States from Canada at the Amtrak Train Station, Niagara Falls Port of Entry. DePina presented identification to a U.S. Customs and Border Protection Enforcement Officer who conducted a primary electronic name query. The query and a subsequent fingerprint match confirmed that the defendant had been previously deported from the United States in August 2010 and barred for life after he was convicted in Massachusetts of inducing a person under 18 to have sexual intercourse.
The sentencing is the result of an investigation by the United States Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
21 Defendants Plead Guilty to Racketeering Related to Murphy VillageRead the Press Release
Contact Person: Jim May (803) 929-3000
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Hannah Carroll, Rose M. Mulholland, Kim Mulholland, Caroline Sherlock, Catherine Carroll, Anthony Carroll, Johnny M. Sherlock, Mary Rita Sherlock, Jimmy Gorman, Leslie Gorman, Leslie Ann Sherlock, Jimmy J. Carroll, Mary Costello, Mary Gorman Carroll, Renee Carroll, Rose S. Mulholland, Susan Sherlock, Tommy Sherlock, William Carroll, and Johnny Mack, all of North Augusta, South Carolina, as well as Angela Askew, of Augusta, Georgia, have entered guilty pleas in federal court in Columbia, to Conspiracy to Commit Racketeering (RICO), a violation of 18 U.S.C. § 1962(d). United States District Judge J. Michelle Childs of Columbia accepted the guilty pleas and will impose sentences after she has reviewed the presentence reports which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that the defendants and others agreed, that a criminal enterprise operated in and around North Augusta, South Carolina. This criminal enterprise consists of both residents of an insular group known as Travelers, as well as outsiders that helped those residents. The Travelers live in a defined geographic location of North Augusta that is commonly known as Murphy Village. The Travelers have a particular lifestyle, including a unique language called “Cant,” and are funded largely by illegal schemes. The Travelers and certain outsiders (like car salesmen, insurance agents, and tax preparers) agreed to commit numerous racketeering activities that included mail and wire fraud related to life insurance applications, loan applications, as well as fraud related to government benefits such as food stamps, Medicaid, and tax refunds. Additionally, when the fraud was successful and money came into the group the money was laundered through numerous channels to include structured deposits and withdrawals to avoid reporting requirements.
Ms. Drake stated, “This cooperative investigation between federal, state and local authorities has effectively dismantled a significant component of the complex criminal element operating out of Murphy Village. However, the investigation continues. We want to recognize the tremendous commitment by the local, state and federal authorities to investigate the wide-spread fraud.” United States Attorney Drake thanked the FBI, the United States Marshals Service, IRS Criminal Investigations, the USDA Office of Inspector General-Investigations, the Postal Inspector’s Office, the South Carolina Attorney General’s Medicaid Fraud Unit, the Second Circuit Solicitor’s Office, Aiken County Sheriff’s Office and South Carolina Department of Social Services for all the work their agencies did in the investigation and prosecution.
FBI Special Agent in Charge Alphonso Norris stated: “Today’s pleas go a long way in dismantling a criminal organization that has affected citizens in several states. This was made possible with the cooperation of our federal, state and local partners.”
Kelvin Washington, U.S. Marshal for the District of South Carolina, stated: “Working with numerous federal and local agencies on this case has shown again how cooperation and dedication to protecting the citizens of South Carolina speaks volumes about our judicial system. This case produced many assets which will be forfeited and sold so the victims may receive payment for the fraud they endured. It is with immense appreciation to our partners for the success of this case, the U.S. Marshals are only a small piece of this case, but we know we can all work together to serve the citizens of South Carolina.”
South Carolina Attorney General, Alan Wilson stated “I am pleased with this outcome, but this is certainly not the end. We will continue to work closely with authorities at the local, state and federal levels to bring these individuals to justice and expose this extensive criminal enterprise.”
“Today’s pleas are another example of IRS-CI’s dedication to bringing individuals to justice who engage in helping taxpayers evade their tax obligations,” said Acting Special Agent in Charge Michael C. Daniels. “We will continue to vigorously pursue both taxpayers who avoid paying their fair share and the unscrupulous professionals who facilitate their actions.”
The maximum penalty for Conspiracy to Commit Racketeering is imprisonment for 20 years and/or a fine of $250,000.
The case was investigated by agents of the FBI, the United States Marshals Service, IRS Criminal Investigations, the USDA Office of Inspector General-Investigations, the Postal Inspector’s Office, the South Carolina Attorney General’s Medicaid Fraud Unit, the Second Circuit Solicitor’s Office, Aiken County Sheriff’s Office and South Carolina Department of Social Services. Assistant United States Attorneys Jim May and Jay Richardson of Columbia and Rhett Dehart of Charleston are prosecuting the case.
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27 February 2017
Wheeling Island man sentenced for heroin distributionRead the Press Release
WHEELING, WEST VIRGINIA – Sean David Burt, 33, of Wheeling, West Virginia, was sentenced today to 120 months incarceration for distributing heroin, Acting U.S. Attorney Betsy Steinfeld Jividen announced.
Burt sold heroin in Ohio County from June 15 to June 30, 2016. Burt pled guilty to one count of “Conspiracy to Distribute Heroin” in December 2016.
Assistant U.S. Attorney Randolph J. Bernard prosecuted the case on behalf of the government. The Ohio Valley Drug & Violent Crime Task Force, a HIDTA-funded initiative, and the Belmont County Drug Task Force investigated.
U.S. District Judge John Preston Bailey presided.
Waltham Man Pleads Guilty to Child PornographyRead the Press Release
BOSTON – A Waltham man pleaded guilty today in U.S. District Court in Boston to possession of child pornography.
Christopher J. Sullivan, 20, pleaded guilty to one count of possession of child pornography after being arrested and charged in May 2016. U.S. District Court Senior Judge Mark L. Wolf scheduled sentencing for May 23, 2017.
In January 2016, federal agents in Portland, Ore., received information that a minor boy had been engaging in online sexually explicit conversation with an adult man living in Waltham, Mass. Following an investigation, a federal search warrant was issued for a residence in Waltham in May 2016. During the execution of the search warrant, law enforcement officers recovered a number of devices, later determined to belong to Sullivan. These devices, which Sullivan later admitted to possessing, contained multiple images and videos depicting children engaging in sexually explicit conduct. A forensic analysis revealed that the majority of the children depicted in the pictures and videos were between the ages of 7 and 12 years old.
The charging statute provides for no greater than 20 years in prison, a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The Waltham Police Department assisted with the investigation. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit prosecuted the case.
U.S. Attorney Settles Civil Rights Lawsuit to Allow Tenant to Keep an Assistance AnimalRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States has simultaneously filed and settled a civil rights lawsuit against Friedman Residence, LLC, Breaking Ground, and The Actors Fund of America, for violating the Fair Housing Act. Specifically, the lawsuit alleges that Friedman Residence, LLC, Breaking Ground, and The Actors Fund of America discriminated against a tenant (the “Tenant”) of the Dorothy Ross Friedman Residence (the “Friedman Residence”), by failing to permit a reasonable accommodation of the Tenant’s psychiatric disability. The consent decree was approved on February 24, 2017, by U.S. District Court Judge P. Kevin Castel.
U.S. Attorney Preet Bharara said: “This is yet another lawsuit brought to enforce the rights of tenants with disabilities to live with assistance animals. Through this settlement, Friedman Residence, LLC, Breaking Ground, and The Actors Fund of America will improve housing accessibility for all residents of the Dorothy Ross Friedman Residence.”
As alleged in the Complaint filed in federal court:
Friedman Residence, LLC, Breaking Ground, and The Actors Fund of America are the owner, manager, and sponsor of the Friedman Residence, which provides supportive housing in shared and single-occupancy apartments to special low-income groups, including seniors, working professionals, and persons living with HIV/AIDS. The Friedman Residence has a “no pet” policy.
The Tenant shared an apartment at the Friedman Residence, and has a psychiatric disability. In February 2013, the Tenant asked that the Friedman Residence grant him a reasonable accommodation to live with an emotional support dog that alleviates the symptoms of his disability. The Tenant provided a letter from his long-time therapist explaining that the emotional support dog was a “necessary form of support” for him. Despite the Tenant’s request for a reasonable accommodation, the Friedman Residence served him with a Notice of Termination and a petition seeking a final judgment of eviction.
Under the consent decree approved on February 24, 2017, Friedman Residence, LLC, Breaking Ground, and The Actors Fund of America will adopt a new reasonable accommodation policy regarding assistance animals that is incorporated into the consent decree. Friedman Residence, LLC, Breaking Ground, and The Actors Fund of America have further agreed to comply with certain notice, training, and recordkeeping requirements to ensure that their employees are knowledgeable about and comply with the requirements of the Fair Housing Act, and to allow the United States to monitor compliance with the consent decree. In addition, Friedman Residence, LLC, Breaking Ground, and The Actors Fund of America have agreed to pay the Tenant $20,000 in compensatory damages and to place the Tenant on the waitlist for a single-occupancy apartment at the Friedman Residence.
Mr. Bharara thanked HUD for its efforts in the investigation.
The case is being handled by the Office’s Civil Rights Unit. Assistant United States Attorney Talia Kraemer is in charge of the case.
U.S. Attorney Olson resigns; acting U.S. Attorney appointedRead the Press Release
BOISE – Wendy J. Olson, United States Attorney for the District of Idaho, resigned effective Saturday, February 25, 2017. U.S. Attorney Olson had served in that office since June 2010. She had been an Assistant United States Attorney with the District of Idaho since 1997.
As of February 26, 2017, Rafael M. Gonzalez, Jr., assumed leadership of the office as Acting United States Attorney. Mr. Gonzalez has been the First Assistant United States Attorney since September of 2010. He had previously served as the office’s criminal chief. He has been with the office since March of 1995 and with the Department of Justice since September of 1991.
“As United States Attorney for the District of Idaho since 2010, Wendy Olson has been an indispensable and collaborative law enforcement partner in Idaho,” said Mr. Gonzalez. “Her efforts reflected the highest traditions of the Department of Justice and the U.S. Attorney community. We thank Wendy for her tireless work on behalf of the District of Idaho and the American people over the last 20 years, and we wish her the very best as she begins the next chapter of her distinguished career.”
Two Plead Guilty to Marijuana Cultivation in Giant Sequoia National MonumentRead the Press Release
FRESNO, Calif. — Audencio Pineda-Gaona, 37, and Candelario Jimenez-Ramirez, aka Candelario Rodriguez-Jimenez, 55, both of Mexico, pleaded guilty today to conspiring to manufacture, distribute and possess with intent to distribute and manufacturing marijuana in the Sequoia National Forest, U.S. Attorney Phillip A. Talbert announced.
According to court documents, the defendants and several other men were found trimming marijuana buds in the grow site in the Giant Sequoia National Monument in Tulare County. As the agents approached, the men fled. The defendants were apprehended, but the other men got away. Agents found 5,707 marijuana plants and 200 pounds of processed marijuana. They also found a large box of 9 mm ammunition, a holster and a shoulder rig for a 9 mm handgun.
The marijuana cultivation operation caused extensive damage to the land and natural resources. Native trees and shrubs had been cut down to make room for the marijuana plants. Water had been diverted from a tributary stream of the Kern River, which supports Kern River rainbow trout, a “Species of Special Concern” in the state of California due to habitat loss. Agents also found harmful banned pesticides and large amounts of trash. In pleading guilty, the defendants agreed to pay $5,252 in restitution to the U.S. Forest for the damage caused by their marijuana cultivation activities.
This case is the product of an investigation by the U.S. Forest Service, the California Department of Justice’s Campaign Against Marijuana Planting (CAMP), the California Department of Fish and Wildlife, and the Tulare County Sheriff’s Office. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
The defendants were previously ordered detained as a flight risk and danger to the community. The men are scheduled for sentencing on May 22, 2017. They face a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Two Men Sentenced for Cocaine ConspiracyRead the Press Release
SCRANTON-The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Ronald Drayton, age 48, of Wilkes-Barre, Pennsylvania and Marcal Fraction, age 36, of Hudson, Pennsylvania, were sentenced on February 23, 2017, by United States District Court Judge Malachy E. Mannion. Judge Mannion sentenced Drayton to 57 months’ imprisonment and Fraction to 120 months’ imprisonment for their roles in a conspiracy to distribute and possess with intent to distribute cocaine.
According to United States Attorney Bruce D. Brandler, Drayton and Fraction were indicted along with seven co-conspirators in November 2014, and both pleaded guilty to a charge of conspiracy. All seven co-conspirators charged in the case have pleaded guilty.
The investigation revealed that Drayton distributed between 500 grams and two kilograms of cocaine and Fraction distributed between 100 and 200 grams of cocaine in Northeastern Pennsylvania between January 2013 and November 2014. The cocaine was shipped to Pennsylvania from Puerto Rico.
The case was investigated by the Scranton Resident Office of the Drug Enforcement Administration with assistance from the Wilkes-Barre Police Department. Assistant United States Attorney Evan Gotlob prosecuted the case.
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Three Sentenced to Lengthy Federal Prison Sentences for Their Roles in a Child Sex Trafficking ConspiracyRead the Press Release
FORT WORTH, Texas — This morning, U.S. District Judge Reed C. O’Connor sentenced three defendants, with ties to the Polywood Crips street gang in Fort Worth, Texas, for their respective roles in a child sex trafficking conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Chad Johnson, a/k/a “Ocho Hood Fame,” 24, was sentenced to 300 months in federal prison. He pleaded guilty to one count of sex trafficking of children in November 2016.
Deon Bonner, a/k/a “Spanish Fly,” 26, was sentenced to 360 months in federal prison. He pleaded guilty to one count of conspiracy to commit sex trafficking of children in November 2016.
Stanley Johnson, a/k/a “Pee Wee,” 24, was sentenced to 168 months in federal prison. He pleaded guilty to one count of conspiracy to commit sex trafficking of children in October 2016.
All three defendants received lifetime sex offender registration.
Co-defendants Audry Lane, a/k/a “Spud,” 29, Diwone Nobles, a/k/a “Pooh,” 32, Katelyn Micelle Ward, a/k/a “KD,” 24, Jessica Arnold, 23, Serrah Arnold, a/k/a “Kristen,” 28 and Alvin Lane, a/k/a “Spank,” 32, have also pleaded guilty to varies offenses relating to their roles in the conspiracy and are awaiting sentencing.
According to documents filed in the case, in November 2015, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) learned that a 16-year-old runaway, Jane Doe 1, was being trafficked by a group of people in Fort Worth, Texas; that group included the defendants. The investigation revealed that from approximately October 1, 2013, through April 16, 2016, the members of this group facilitated the commercial sex acts of several minor and adult females.
Nobles, Bonner, Chad Johnson, Stanley Johnson, Audry Lane and Alvin Lane, acted as pimps for the girls and women they trafficked. They instructed them on how much to charge and they kept proceeds from transactions. They also provided the girls and women with condoms, cellular phones and hotel rooms. Some of the members of the group bought and sold the girls and women they were trafficking amongst themselves.
To locate commercial sex customers, Nobles, Bonner, Chad Johnson, Stanley Johnson, Audry Lane and Alvin Lane facilitated the placement of advertisements on various commercial websites, including Backpage.com. In many instances, rather than placing the Backpage.com advertisement themselves, sisters Serrah Arnold and/or Jessica Arnold, who acted as “bottom girls,” were told to post the advertisements using Backpage.com accounts belonging to the Arnolds.
On approximately October 10, 2015, friends Deon Bonner and Stanley Johnson met 17-year-old Jane Doe 2 and her 16-year-old friend Jane Doe 1 in Fort Worth. They took the girls to a motel on Meacham Street in Fort Worth. Shortly thereafter, Stanley Johnson told Jane Doe 2 that he wanted her to engage in commercial sex acts, and he sought help from Audry Lane and Alvin Lane to post commercial sex ads for her on Backpage.com. Stanley Johnson told Jane Doe 2 how much to charge and he bought condoms for her; he also kept the money she made from engaging in commercial sex acts.
While Stanley Johnson was causing Jane Doe 2 to engage in commercial sex acts at a Fort Worth motel, Bonner was causing Jane Doe 1 to engage in commercial sex acts in another nearby room. After several days, Bonner left the hotel, and then Chad Johnson caused Jane Doe 1 to engage in commercial sex acts. Next, Nobles began causing Jane Doe 1 to engage in commercial sex acts. Chad Johnson and Nobles eventually took both Jane Doe 1 and Jane Doe 2 to another hotel in Fort Worth where Chad Johnson continued to cause Jane Doe 2 to engage in commercial sex acts.
When an adult female victim engaged in commercial sex acts at Chad Johnson’s direction, he physically assaulted her if she did not follow his instructions. On one occasion, Chad Johnson punched her in the ear hard enough to cause her eardrum to burst and bleed. Chad Johnson also raped her, and when he believed she had attempted to “renegade,” he had several friends gang rape her as punishment. “Renegade” is a term used to describe attempting to engage in commercial sex acts for money outside the knowledge or control of a pimp.
Some of the six pimp’s Facebook pages contained online posts, visible to the public, that reference making a lot of money through criminal activity, namely “pimping.” Chad Johnson’s Facebook page contained photos of him posing with large sums of cash while referencing commercial sex. Several of Chad Johnson’s Facebook friends were females observed in Backpage.com ads for commercial sex.
Nobles, Bonner, Chad Johnson, Stanley Johnson, and Audry Lane had several photos on their Facebook pages in which they can be observed flashing gang signs referencing the “Polywood Crips” street gang.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, ICE HSI and the Fort Worth Police Department investigated. Assistant U.S. Attorney Cara Foos Pierce prosecuted.
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Three Rochester Residents Charged with Tax FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jason Jimenez, 38, Jessica Rosario, 36, and Ashley Walker, 32, all of Rochester, NY, were arrested and charged by criminal complaint with conspiracy to defraud the Internal Revenue Service and preparing fraudulent tax returns. The charges carry a maximum penalty of five years in prison and a $250,000.
Assistant U.S. Attorney Melissa Marangola, who is prosecuting the case, stated that according to the criminal complaint, between 2012 and 2015, defendant Jimenez oversaw the tax preparation service “Fast Cash Tax.” Defendants Rosario and Walker were employed as tax preparers. Law enforcement officers were notified by some customers of the defendants that information, including earnings income, included on their tax returns was fraudulent and inflated which resulted in a higher tax return.
The defendants made an initial appearance before U.S. Magistrate Judge Marian Payson. They were released and will return to court on March 24, 2017, for a status conference.
The arrest was the culmination of an investigation on the part of the Internal Revenue Service, Criminal Investigation Division, under the direction of Acting Special Agent-in-Charge Kathy A. Enstrom.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Three Luzerne County Men Indicted on Heroin ChargesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Edirso De Leon Frias, age 25, of Nanticoke, Pennsylvania, Nathaniel Murphy, age 41, and Roy Seabrook, age 43, both of Wilkes-Barre, Pennsylvania, were indicted on February 21, 2017, by a federal grand jury on drug trafficking charges.
The indictment was unsealed on February 24, 2017, following the arrests of defendants. The defendants were arraigned before United States Magistrate Judge Joseph F. Saporito, Jr. and were ordered detained pending a detention hearing.
According to United States Attorney Bruce D. Brandler, the indictment alleges that De Leon Frias, Murphy, and Seabrook conspired to distribute and possess with intent to distribute heroin. De Leon Frias was allegedly responsible for distributing over 100 grams of heroin (which is the equivalent of approximately 4,000 individual doses).
The case was investigated by the U.S. Drug Enforcement Administration. Assistant U.S. Attorney Sean A. Camoni is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Teller Pleads Guilty to Stealing from Bamberg BankRead the Press Release
Contact Person: Winston David Holliday, Jr. (803) 929-3000
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Jennifer Lyons Martin, age 34, of Ehrhardt, pled guilty in federal court in Columbia to Theft by a Bank Employee, a violation of Title 18, United States Code, § 656. United States District Judge J. Michelle Childs of Columbia accepted the guilty plea and will sentence her at a later date.
Evidence presented at the change of plea hearing established that Jennifer Lyons Martin worked for South State Bank in the Bamberg Branch as a vault teller. During an audit in 2015, over $100,000 was discovered missing. Martin was approached and confessed to taking almost $300,000 beginning in 2013 and lasting through September 2015. She had two personal checking accounts and four savings accounts at South State that she funneled the money into. She spent almost all of it on restaurants, shopping, travel, and living expenses.
Ms. Drake stated the maximum penalty for this offense is imprisonment for thirty years and a fine of $1,000,000.
The case was investigated by agents of the Federal Bureau of Investigation. Assistant United States Attorney Winston David Holliday, Jr. of the Columbia office is prosecuting the case.
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Technology Company Owner Admits Paying Bribes to Secure Contract with Medical Device CompanyRead the Press Release
NEWARK, N.J. – A Stamford, Connecticut, man today admitted paying bribes in order to secure a contract between his metallurgical technology company and a medical device company, U.S. Attorney Paul J. Fishman announced.
Eugene Ostrovsky, 56, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with violating the Federal Travel Act.
According to documents filed in this case and statements made in court:
Ostrovsky was a principal at a metallurgic technology company in New York. Ostrovsky admitted that he and others sought a multimillion-dollar supply contract with a medical device company in New Jersey. From 2012 through 2013, Ostrovsky and others paid approximately $70,000 in illicit bribes to an employee of the medical device company – Daniel Lawrynowicz, 47, of Monroe, New York – in return for Lawrynowicz’s assistance in securing the contract.
The count of violating the Federal Travel Act carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Ostrovsky must also forfeit $1.1 million as part of today’s guilty plea. Sentencing is scheduled for June 29, 2017.
On March 23, 2016, Lawrynowicz was charged by complaint with accepting the bribe payments. The charge and allegations against him are merely accusations, and he is presumed innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Danielle M. Corcione of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark and Assistant U.S. Attorney Jafer Aftab of the Office’s Asset Forfeiture and Money Laundering Unit.
Defense counsel: Paula M. Junghans Esq.
Takata Corporation Pleads Guilty, Sentenced to Pay $1 Billion in Criminal Penalties for Airbag SchemeRead the Press Release
Tokyo-based Takata Corporation, one of the world’s largest suppliers of automotive safety-related equipment, pleaded guilty to one count of wire fraud and was sentenced to pay a total of $1 billion in criminal penalties stemming from the company’s conduct in relation to sales of defective airbag inflators.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Barbara McQuade of the Eastern District of Michigan, Special Agent in Charge David Gelios of the FBI’s Detroit Field Office and Regional Special Agent in Charge Thomas J. Ullom of the U.S. Department of Transportation Office of Inspector General’s (OIG) Chicago Field Office made the announcement.
“For over a decade, Takata lied to its customers about the safety and reliability of its ammonium nitrate-based airbag inflators,” said Acting Assistant Attorney General Blanco. “Takata abused the trust of both its customers and the public by allowing airbag inflators to be put in vehicles knowing that the inflators did not meet the required specifications. Today’s sentence shows that the department will work tirelessly to hold responsible those who engage in this type of criminal conduct.”
“We hope that today's guilty plea and sentence will send a message to suppliers of consumer safety products that they must put safety ahead of profits,” said U.S. Attorney McQuade.
“The commission of fraudulent activity by the Takata Corporation to generate corporate profits jeopardized the safety of American consumers,” said Special Agent in Charge Gelios. “Today's guilty plea should reassure American consumers that the FBI and its federal law enforcement partners will aggressively pursue corporations and their employees when they violate federal laws.”
“Today’s sentencing of Takata Corporation for wire fraud related to sales of defective airbag inflators is a clear signal to all whose duty it is to protect the public: your most solemn obligation is to public safety,” said Regional Special Agent in Charge Ullom. “As is true for Secretary Chao and the Department of Transportation, safety is and will remain the highest priority for OIG, and we remain committed to working with our law enforcement and prosecutorial partners in pursuing those who commit criminal violations of transportation-related laws and regulations.”
Takata pleaded guilty before U.S. District Judge George Caram Steeh of the Eastern District of Michigan to a one count criminal information charging the company with wire fraud. After accepting Takata’s guilty plea, Judge Steeh, consistent with the terms of the plea agreement, sentenced Takata to pay a total criminal penalty of $1 billion, including $975 million in restitution and a $25 million fine, and three years’ probabtion. Under a joint restitution order entered at the time of sentencing, two restitution funds will be established: a $125 million fund for those individuals who have been physically injured by Takata’s airbags and who have not already reached a settlement with the company, and a $850 million fund for airbag recall and replacement costs incurred by those auto manufacturers who were victims of Takata’s fraud scheme. A court-appointed special master will oversee administration of the restitution funds. Takata will also implement rigorous internal controls, retain an independent compliance monitor for a term of three years and cooperate fully with the department’s ongoing investigation, including its investigation of individuals.
According to admissions made during the course of the guilty plea, from 2000 through and including 2015, Takata carried out a scheme to defraud its customers and auto manufacturers by providing false and manipulated airbag inflator test data that made the performance of the company’s airbag inflators appear better than it actually was. Even after the inflators began to experience repeated problems in the field – including ruptures causing injuries and deaths – Takata executives continued to withhold the true and accurate inflator test information and data from their customers.
The FBI and the U.S. Department of Transportation’s Office of Inspector General investigated the case. Trial Attorneys Brian K. Kidd, Christopher D. Jackson and Andrew R. Tyler of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys John K. Neal, Erin S. Shaw and Andrew J. Yahkind of the Eastern District of Michigan prosecuted the case. The Criminal Division’s Office of International Affairs also provided assistance.
Springfield Man Sentenced for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was sentenced in federal court today for receiving and distributing child pornography over the Internet.
Michael Greinke, 29, of Springfield, was sentenced by U.S. District Judge Beth Phillips to eight years in federal prison without parole. The court also ordered Greinke to pay $5,000 in restitution to one of his victims.
On May 16, 2016, Greinke pleaded guilty to receiving and distributing child pornography over the Internet between Jan. 1, 2014, and April 6, 2015.
On April 6, 2015, law enforcement officers executed a search warrant at Greinke’s residence after his computer was identified by investigators in Canada as having uploaded child pornography to an online social media platform. Officers seized a desktop computer, a laptop computer, two hard drives, three SD cards and a cell phone that were used to commit the offense.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Southwest Missouri Cyber Crime Task Force and the York Regional Police Service in Ontario, Canada.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
South Florida Tobacco Importer Sentenced to Seven Years in Prison for Violating Probation and Failing to Pay over $13 Million in Federal Excise TaxesRead the Press Release
Gitano Pierre Bryant, Jr., 56, of Palmetto Bay, was sentenced today to a consecutive term of 48 months’ imprisonment, by U.S. District Judge Cecilia M. Altonaga, for fraudulently evading $13 million in Federal taxes on imported cigars. Bryant, who was on probation at the time of the offense, was previously sentenced to 36 months’ imprisonment, by Chief U.S. District Judge K. Michael Moore, for violating the terms of his probation.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Tom Crone, Assistant Administrator for Field Operations, Alcohol and Tobacco Tax and Trade Bureau (TTB), and Thomas J. Holloman, Interim Special Agent in Charge, IRS Criminal Investigation (IRS-CI), Washington D.C. Field Office, made the announcement.
Bryant previously pled guilty to one count of mail fraud, in violation of Title 18, United States Code, Section 1341. According to court documents, Bryant unlawfully enriched himself by evading Federal Tobacco Excise Tax properly due and owing on imported cigars. According to court documents, Bryant lied about the price he paid for the cigars and the price for which he sold them.
According to the court record, including the factual proffer supporting his guilty plea, Bryant was the owner of Havana ’59 Cigar Company (“Havana 59”). Between 2008 and 2014, Havana 59 was a licensed importer of tobacco products, including cigars. Bryant consistently underpaid the Federal Tobacco Excise Tax due on imported cigars and, in an attempt to cover up the scheme, altered documents to conceal the price he paid for foreign-made cigars. Bryant continued to underpay taxes on imported cigars after May of 2015, when he was convicted and placed on Federal probation for evading Federal Tobacco Excise Tax due on cigarettes. Between January of 2012 and June of 2016, Bryant evaded over $13 million in Federal Tobacco Excise Tax.
In addition to the imposed prison sentence, Bryant was also ordered to pay over $9 million in restitution to U.S. Customs and Border Protection—the agency tasked with collecting excise tax on imported tobacco products.
Mr. Ferrer commended the investigative efforts of the TTB and IRS-CI. The case was prosecuted by Assistant United States Attorney Christopher B. Browne.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
San Francisco Resident Sentenced to More Than 10 Years in Prison for String of Armed Bank RobberiesRead the Press Release
SAN FRANCISCO – Yolanda Brown, AKA Yo-Yo, was sentenced today to 130 months in prison, and ordered to pay $19,285.00 in restitution, for five robberies of Bay Area banks and credit unions, the unlawful possession of a firearm, and distribution of methamphetamine, announced United States Attorney Brian J. Stretch, Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett, and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jill Snyder.
Brown, 48, of San Francisco, pleaded guilty to the charges on November 21, 2016. According to the plea agreement, Brown admitted to robbing the following banks and credit unions:
Date
Bank / Credit Union
Location
January 11, 2016
Wells Fargo
2055 Chestnut Street, San Francisco, CA
January 13, 2016
Patelco Credit Union
1358 Fairmont Drive, San Leandro, CA
February 19, 2016
Patelco Credit Union
1358 Fairmont Drive, San Leandro, CA
June 9, 2016
Citibank
2400 19th Avenue, San Francisco, CA
June 16, 2016
Wells Fargo
3365 Deer Valley Road, Antioch, CA
In her plea agreement, Brown also admitted to being a convicted felon in possession of a firearm and possessing with intent to distribute and distributing more than fifty grams of methamphetamine.
On October 20, 2016, a federal grand jury indicted Brown for the robberies and unlawful possession of a firearm. The indictment charged her with five counts of bank or credit union robbery, in violation of 18 U.S.C. § 2113(a), and one count of being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1). Further, on September 15, 2015, Brown was indicted for distribution of methamphetamine, in violation of 21 U.S.C. § 841(a)(1). Under the plea agreement, Brown pleaded guilty to all charges in both indictments.
The sentence of 130 months’ imprisonment was handed down by the Honorable Thelton E. Henderson, U.S. District Judge, in San Francisco. Judge Henderson also sentenced the defendant to a five-year period of supervised release. The defendant was immediately remanded into custody.
Assistant U.S. Attorney Scott D. Joiner prosecuted the case with the assistance of Lance Libatique and Linda Love. The prosecution is the result of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the San Francisco Police Department, the San Leandro Police Department, and the Antioch Police Department.
San Antonio Man Charged with Kidnapping ChildRead the Press Release
BROWNSVILLE, Texas – A 36-year-old man has been arrested on charges of international parental kidnapping, announced U.S. Attorney Kenneth Magidson.
Ismail Khaleel Al Gebory was arrested in Mexico City, Mexico, on Feb. 24, 2017. He is set to make his initial appearance before U.S. Magistrate Judge Mary Milloy at 10:00 a.m. in Houston today.
The criminal complaint filed in Brownsville alleges Al Gebory had taken the child after a weekend visitation and fled to Mexico.
The mother had sole custody of the child, but Al Gebory had regular visitation. He would travel from his residence in San Antonio to Brownsville on Friday evenings and would return the child to the mother on Sundays, according to the charges. On Friday, Feb. 17, Al Gebory allegedly picked up the child but did not return her that weekend.
The mother contacted authorities and told them Al Gebory had relatives in Iraq, according to charges. The criminal complaint further alleges that while in Mexico, Al Gebory attempted to obtain an Iraqi passport for the minor child.
At the time of the arrest, the child was with him, but has since been returned to the mother.
The FBI, Department of State and the Brownsville Police Department conducted the investigation with the assistance of Mexican Customs. Assistant U.S. Attorney Jose A. Esquivel Jr. is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Palm Beach Resident Sentenced to 51 Months in Prison for Her Participation in a Fraud Scheme that Targeted Nursing StudentsRead the Press Release
On February 24, 2017, Marie M. Jean-Francois, 31, of Boca Raton, was sentenced to 51 months in prison, to be followed by three years of supervised release, for her involvement in a scheme to obtain unauthorized loans for students in a licensed practical nurse (“LPN”) program by defrauding the Department of Education.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Yessyka Santana, Special Agent in Charge, Department of Education, Office of Inspector General (ED-OIG), made the announcement.
Jean-Francois, previously pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343 and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, Jean-Francois engaged in a scheme to defraud the Department of Education by submitting fraudulent student loan applications on-line. Jean-Francois was an employee/director of the Coral Ridge Training School, an institution that offers a licensed practical nurse training program. Jean-Francois falsely told students that they would receive a grant that would cover the costs of the program. One evening, during a training class, Jean-Francois demanded that the students provide their personal identification numbers (PIN), identification information that is issued to students when they file a Free Application for Federal Student Aid form. Jean-Francois then used the students’ PINs and other personal information to electronically sign promissory loan notes without the students’ consent or authorization. Many students did not learn that the unauthorized loans had been taken out in their names until they began receiving letters from the loan servicing companies.
Mr. Ferrer commended the investigative efforts of the ED-OIG. The case was prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Orange County Man Sentenced to 190 Years in Federal Prison for Traveling to Philippines to Molest Young Girls and Filming the AbuseRead the Press Release
SANTA ANA, California – A onetime school teacher who traveled to the Philippines to engage in sex with two girls and produced videos of the abuse was ordered today to serve 190 years in federal prison.
Robert Ruben Ornelas, 66, of Santa Ana, who has a long history of abusing children, received the 2,280-month sentence from United States District Judge Cormac J. Carney.
During today’s hearing, Judge Carney said Ornelas molested children in a “cruel manner” and the defendant demonstrated a complete disregard for his victims’ humanity.
Ornelas was found guilty in November by a federal jury of seven counts – two counts of engaging in sexual conduct in a foreign place, three counts of producing child pornography, and two counts of possessing child pornography.
The evidence presented during a six-day trial showed that Ornelas traveled to the Philippines on multiple occasions. He was convicted in relation to three specific trips – in 2006, 2008 and 2012 – where he sexually assaulted two girls who were as young as approximately eight. During all three trips, Ornelas took videos of the molestation and brought the images with him when he returned the U.S.
The two victims travelled to the United States to testify during the trial about the sexual assaults, and made statements at today’s hearing. One of the victims said: “Why did I meet this person? He destroyed my dreams.”
“Today’s sentence ensures life imprisonment for this predator whose history of abusing minors began a half-century ago,” said United States Attorney Eileen M. Decker. “For seven years, this defendant repeatedly travelled to the Philippines, where he paid family members for sexual access to little girls who were living in poverty. The defendant claimed to be an attorney and promised to help the victims by funding their educations, but he brought trauma and anguish to their lives for which no amount of money could compensate.”
The investigation into Ornelas began in 2013 when federal authorities received a tip that he possessed a large quantity of child pornography. During the execution of a search warrant, investigators found images, videos and information on Ornelas’ computer and digital media.
In sentencing papers filed with the court, prosecutors pointed out that Ornelas’ history of sexually abusing minors extended back to the 1960s.
The federal charges are the product of an investigation by the Orange County Child Exploitation Task Force, which includes special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Federal Bureau of Investigation, the Newport Beach Police Department and the Orange County Sheriff’s Department.
“This sentence should serve as a powerful deterrent to child predators who mistakenly believe the internet and a plane ticket will enable them to indulge their perverse desires with impunity,” said Joseph Macias, special agent in charge of Homeland Security Investigations in Los Angeles. “HSI will continue to work closely with its law enforcement partners here in the U.S. and around the world to hold these dangerous sexual predators accountable for their actions. There can be no place for the abuse of foreign children by our citizens.”
“Defendant Ornelas took advantage of impoverished children in a foreign country, away from the scrutiny of the United States, where his past involved abusing children,” said Deirdre Fike, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “His young victims demonstrated tremendous bravery by traveling to a foreign country to testify about the crimes perpetrated against them, and we owe them a debt of gratitude for assisting the government in putting Ornelas away for the rest of his life.”
This case was prosecuted by Assistant United States Attorneys Sandy N. Leal and Anne C. Gannon of the Santa Ana Branch Office.
Ohio man pleads guilty to identity theftRead the Press Release
CLARKSBURG, WEST VIRGINIA – Tyree Skipper, 44, of Euclid, Ohio, was convicted for aggravated identity theft, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Skipper admitted to obtaining identifying information of individuals to file fraudulent tax returns in Ohio, South Carolina and Hawaii from December 2012 to May 2013 in Gilmer County, West Virginia. He pled guilty to two counts of “Aggravated Identify Theft.” He faces a mandatory two years in prison for each count.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The Internal Revenue Service and the Special Investigative Services Unit of the Bureau of Prisons investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Notice of Court ProceedingsRead the Press Release
Contact Person: Jim May (803) 929-3000
Columbia, South Carolina---------Change of plea hearings have been scheduled for some 22 defendants who were previously indicted on racketeering charges arising from a criminal enterprise that operates in the North Augusta area of South Carolina.
WHEN: Tuesday, February 28, 2017, at 10:00 a.m., 12:00p.m. and 3p.m.
WHERE: Matthew J. Perry, Jr., Courthouse
901 Richland Street, Courtroom # 3
Columbia, SC 29201
#####New Haven Man Sentenced to 41 Months in Prison for Trafficking CocaineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CARLOS PEREZ, also known as “Carlito,” 43, of New Haven, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 41 months of imprisonment, followed by three years of supervised release, for trafficking cocaine.
According to court documents and statements made in court, in the fall of 2015, the DEA New Haven Task Force initiated an investigation into a cocaine trafficking organization headed by Halby “Harv” Lopez. The investigation revealed that Lopez, and his associates, Omar Polanco-Mendez and Bernardo “Benny” Roman-Rolan, were obtaining bulk quantities of cocaine from multiple suppliers and redistributing the cocaine to a network of New Haven-area street-level dealers, including PEREZ. The investigation included court-authorized wiretaps, controlled purchases of drugs and the seizure of multiple kilograms of cocaine.
On March 24, 2016, a grand jury in New Haven returned a 13-count indictment charging PEREZ, Lopez, Polanco-Mendez, Roman-Rolan and six other individuals with various narcotics offenses. All of the defendants pleaded guilty.
PEREZ has been detained since his arrest on March 16, 2016. On September 27, 2016, he pleaded guilty to one count of conspiracy to distribute between 200 and 300 grams of cocaine.
On February 24, 2017, Polanco-Mendez was sentenced to 120 months of imprisonment. Lopez and Roman-Rolan await sentencing.
The DEA New Haven Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden and Derby Police Departments, and the U.S. Marshals Service.
This matter is being prosecuted by Assistant U.S. Attorneys Patrick Caruso and Jennifer Laraia.
Missouri Resident Sentenced for Committing Two Bank Robberies in IllinoisRead the Press Release
Brendon M. Collier, 39, of St. Louis, MO, was sentenced on February 24, 2017, on two counts of bank robbery, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today. Collier was sentenced to a term of imprisonment of 36 months on each count, to run concurrently to each other but consecutively to the sentence he is currently serving in Missouri for a bank robbery. He was also sentenced to a three-year term of supervised release on each count, also to run concurrently. Finally, Collier was ordered to pay a $200 special assessment. Collier has been held without bond since his arraignment on July 16, 2015.
On January 28, 2015, Collier, aided and abetted by another individual, went to a US Bank branch located inside of a Schnuck’s grocery store in Edwardsville, Illinois. Collier entered the bank and approached the teller claiming that he needed to make a withdrawal. Collier then handed the teller a note written on the back of a used envelope that demanded loose bills that were $20s or over, and said "no alarm."
On February 10, 2015, Collier and his accomplice went to a second US Bank branch located inside of a Schnuck’s grocery store, this time in Fairview Heights, Illinois. During the second robbery, Collier again told a teller that he needed to make a withdrawal. Collier handed
the teller a note written on a deposit slip hidden under an envelope that said something to the effect of, "give me all the money out your top drawer, tens and up, do it quick and no one gets hurt."
Collier was apprehended after the pair robbed a third US Bank branch located inside of a Schnuck’s grocery store in St. Peters, Missouri. Collier confessed to the St. Peters robbery as well as the two bank robberies in Illinois, claiming that the robberies were motivated by his need to buy heroin, hotel rooms and food. Collier also admitted using his accomplice’s car to commit the robberies.
The case was investigated by the Edwardsville Police Department, the Fairview Heights Police Department, the Illinois State Police Metro-East Forensic Laboratory, the St. Peters, Missouri, Police Department, and the Federal Bureau of Investigation. The case was assigned to Assistant United States Attorney Angela Scott.
Medical Doctor Charged in Manhattan Federal Court for Fentanyl-Related Overdose DeathRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of a complaint charging AVINOAM LUZON with selling fentanyl that resulted in the death of an Upper West Side man.
The complaint alleges that, on or about October 22, 2016, LUZON distributed fentanyl that resulted in the death of Gabriel Tramiel, age 32, of Manhattan. LUZON was arrested this morning and will be presented today before United States Magistrate Judge Sarah Netburn.
Manhattan U.S. Attorney Preet Bharara said: “As a medical doctor and graduate student in public health, Avinoam Luzon was supposed to help the sick get healthy, but instead he allegedly helped fuel the nation’s most serious health crisis, the opioid abuse epidemic. As an alleged drug dealer with a medical degree, Luzon sold fentanyl to Gabriel Tramiel, a 32-year-old New Yorker, and it allegedly killed him.”
NYPD Commissioner James P. O’Neill said: “We will continue to investigate every single overdose across this city and to make arrests like this. Our goal: to protect life and deter those who peddle these deadly opioids.”
According to the allegations in the Complaint[1] filed in federal court:
Gabriel Tramiel was found dead by his wife in the early morning hours of October 23, 2016. Tramiel was transported to the hospital and was examined by a medical examiner from the New York City Office of the Chief Medical Examiner who determined that a fentanyl overdose was the cause of Tramiel’s death. Text messages recovered from Tramiel’s phone show a conversation with LUZON the evening of October 22, 2016, in which LUZON requested payment from Tramiel for narcotics and the two arranged a meeting to exchange narcotics for payment. Surveillance video recovered from the apartment building where Tramiel died shows Tramiel inhaling the contents of a nasal spray bottle in the building elevator several hours before he was found dead.
* * *
LUZON, 32, of New York, New York, has been charged with one count of narcotics distribution resulting in the death of another, which carries a maximum sentence of life in prison, and a mandatory minimum sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentence for the defendant will be determined by the judge.
Mr. Bharara praised the outstanding work of the NYPD for its investigative efforts and ongoing support and assistance with the case. He also thanked the New York State Department of Health’s Bureau of Narcotics Enforcement for their assistance with this investigation.
The prosecution of this case is being overseen by the Office’s Narcotics Unit. Assistant U.S. Attorney Karin Portlock is in charge of the case.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the descriptions of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Martinsburg doctor pleads guilty to illegal distribution of alprazolam and lorazepamRead the Press Release
MARTISNBURG, WEST VIRGINIA – Dr. Christopher J. Murphy, 53, of Martinsburg, West Virginia, was convicted of unlawfully distributing alprazolam and lorazepam, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Murphy pled guilty to one count of “Distribution of Aplrazolam” and one count of “Distribution of Lorazepam.” The crime took place in Berkeley County in August 2016. He faces up to five years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Drug Enforcement Administration and the West Virginia State Police investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Luzerne County Man Charged with Bank FraudRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Scott Capparell, age 46, of Drums, Pennsylvania, the former administrator of Heritage Mills Personal Care, Inc. (“HMPC”), was charged in a criminal information on February 23, 2017, with committing bank fraud.
According to United States Attorney Bruce D. Brandler, Capparell worked from April 2013 through July 2016 as the administrator of HMPC, which provides personal care services to its residents. During that time period, it is alleged that Capparell diverted $394,517 worth of HMPC residents’ monthly rent checks to an account at PNC Bank under Capparell’s control, instead of to the HMPC account at Mid Penn Bank. Capparell allegedly withdrew all of the diverted funds for his use and the use of other unnamed individuals. To conceal the scheme, Capparell allegedly lied to HMPC owners and managers, and falsified HMPC’s books and records.
The government also filed a plea agreement which is subject to approval of the court. A date for Capparell’s initial appearance has not been set.
The investigation was conducted by special agents with the Federal Bureau of Investigation. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the charge is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Jury Convicts Mims Man of Drug Trafficking and Firearm OffensesRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Benjamin Jenkins (36, Mims) guilty of distributing and possessing cocaine with the intent to distribute it, possessing a firearm in furtherance of that drug-trafficking crime, and using a telephone in committing the drug offense. He faces a minimum mandatory penalty of 5 years, up to life, in federal prison. His sentencing hearing is scheduled for May 15, 2017. Jenkins was indicted on November 22, 2016.
According to testimony and evidence presented at trial, on October 11, 2015, Jenkins, who was a Titusville High School football coach and Brevard County teacher’s aide at the time, sold 28 grams of cocaine to a confidential informant for $1,300 in the parking lot of a Titusville Wal-Mart. While Jenkins sat in his car and counted the money for the cocaine, he had a Springfield Arms .40 caliber semi-automatic pistol in his lap. The transaction was arranged over Jenkins’s cellphone.
This case was investigated by the Drug Enforcement Administration and the Titusville Police Department. It is being prosecuted by Assistant United States Attorney E. Jackson Boggs Jr.
Judge Sentences Johnstown Heroin Dealer to PrisonRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., has been sentenced in federal court to 24 months in prison and three years’ supervised release on his conviction of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
United States District Judge Kim R. Gibson imposed the sentence on Vantroy Godboat, 45.
According to information presented to the court, on Jan. 27, Feb. 2, and Feb. 4, 2016, Godboat distributed less than 100 grams of heroin on each of those dates, and on Feb. 5, 2016, Godboat possessed with the intent to distribute less than 100 grams of heroin.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Ms. Song commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Cambria County Drug Task Force for the investigation leading to the successful prosecution of Godboat.
Hartford Man Pleads Guilty to Heroin Distribution Charge Stemming from Middletown Overdose DeathRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that, on February 24, 2017, YACOV OCASIO, also known as “Little,” 21, of Hartford, waived his right to be indicted and pleaded guilty before U.S. District Judge Alvin W. Thompson in Hartford to one count of possession with intent to distribute, and distribution of, heroin.
This prosecution is part of an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on August 26, 2016, Middletown Police and emergency medical personnel responded to a Middletown apartment on the report of a possible overdose and found an unresponsive 28-year-old male lying in a bed. Medical intervention was unsuccessful and the victim was pronounced dead. Officers located and seized one torn baggy, commonly used to package heroin, from the victim’s pants pocket. Officers also seized the victim’s iPhone.
The Office of the Chief Medical Examiner for the State of Connecticut subsequently determined that the victim died from acute heroin and fentanyl toxicities.
The investigation revealed that, on August 25, 2016, the victim arranged to purchase heroin from OCASIO, and then drove to Hartford to complete the purchase.
In November 2016, investigators conducted a controlled purchase of heroin from OCASIO.
OCASIO was arrested on a federal criminal complaint on January 18, 2017.
Judge Thompson scheduled sentencing for May 24, 2017, at which time OCASIO faces a maximum term of imprisonment of 20 years. OCASIO is released on a $50,000 bond.
This matter is being investigated by the Drug Enforcement Administration’s Tactical Diversion Squad and the Middletown Police Department. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police.
The case is being prosecuted by Assistant U.S. Attorneys Robert Spector and Jocelyn Kaoutzanis, and Senior Assistant State’s Attorney Eugene Calistro, who is cross-designated as a Special Assistant U.S. Attorney in this matter.
Harrison County man indicted for heroin distribution and firearms violationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Christopher C. Cozad, of Mount Clare, West Virginia, has been indicted for distributing heroin and illegal possession of a firearm, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Cozad, age 32, was indicted by a federal grand jury sitting in Wheeling on February 7, 2017 for three counts of “Distribution of Heroin” and one count of “Unlawful Possession of a Firearm.” The crimes are alleged to have occurred in March and April 2016 in Harrison County.
Cozad faces up to twenty years in prison and a fine of up to $1,000,000 for each heroin count. He faces up to ten years in prison and a fine of up to $250,000 for the firearm violation. 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 is prosecuting the case on behalf of the government. The Bureau for Alcohol, Tobacco, Firearms and Explosives and the Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Gloucester County, New Jersey, Man Sentenced to 37 Months in Prison for 2015 South Jersey Bank Robbery SpreeRead the Press Release
CAMDEN, N.J. – A Deptford, New Jersey, man was sentenced today to 37 months in prison for robbing five New Jersey banks and one Pennsylvania bank between June 2015 and September 2015, U.S. Attorney Paul J. Fishman announced.
Michael A. Fanelli, a/k/a “Michael Carducci,” 37, previously pleaded guilty before U.S. District Judge Reneé Marie Bumb to an information charging him with six counts of bank robbery. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court, Fanelli robbed the following banks on the dates set forth below:
Bank
Location
Date
Cornerstone Bank
West Deptford, New Jersey
June 2, 2015
Fulton Bank
Mullica Hill, New Jersey
June 5, 2015
Malvern Federal Savings Bank
Concordville, Pennsylvania
July 22, 2015
Susquehanna Bank
Mullica Hill, New Jersey
July 28, 2015
Susquehanna Bank
Mullica Hill, New Jersey
Aug. 21, 2015
National Penn Bank
Florence, New Jersey
Sept. 24, 2015
Fanelli typically robbed each bank by approaching a teller, displaying what appeared to be a firearm, and demanding money.
Fanelli robbed the same Susquehanna Bank on July 28, 2015 and August 21, 2015. Immediately following his robbery of National Penn Bank on Sept. 24, 2015, Fanelli was followed by law enforcement officers to his residence, where he was taken into custody.
In addition to the prison term, Judge Bumb sentenced Fanelli to three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster in Philadelphia, with the investigation. He also thanked the West Deptford, Harrison Township, and Florence Township police departments, as well as the Gloucester County Prosecutor’s Office and the Pennsylvania State Police for their assistance.The government is represented by Assistant U.S. Attorney Justin C. Danilewitz of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Lisa Lewis Esq., Assistant Federal Public Defender
Glen Carbon Retirement Center Employee Admits to Embezzlement, Making a False Bankruptcy Declaration and Filing False Federal Tax ReturnsRead the Press Release
Danielle D. Clark, a/k/a Danielle D. Markiewicz, a/k/a Danielle D. Cantrall, 37, of Edwardsville, Illinois, entered pleas of guilty to an Information charging two counts of wire fraud in a scheme to defraud the Eden Village Care Center, a not-for-profit retirement community in Glen Carbon, Illinois, and one count of making a false bankruptcy declaration, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Clark faces a statutory maximum prison sentence of up to 45 years, a fine of up to $750,000, and up to 3 years of supervised release. Sentencing is scheduled for June 20, 2017. As part of the plea, Clark admitted to filing a false 2015 federal income tax return and agreed to plead also to that charge in the future.
Clark was the Director of Human Resources and the Accounts Payable Clerk for the Eden Village Care Center. As the Director of Human Resources and the Accounts Payable Clerk, she was in a position of trust to act for the benefit of the Eden Village Care Center. As part of the plea, Clark admitted engaging in a scheme to defraud from 2011 continuing through May of 2016 where she made unauthorized credit transactions using an Eden Village Care Center credit card issued through the Bank of Edwardsville and a Sam’s Club/Walmart credit card, causing a loss to Eden Village Care Center in excess of $700,000. As part of the scheme Clark prepared fake credit card statements to cover up and continue her embezzlement, forged signatory names on Eden Village Care Center checks to pay for the unauthorized charges using Eden Village Care Center funds, and manipulated the accounting books and created fake invoices for Eden Village Care Center to hide the expenses for the credit card transactions.
The prosecution is the result of an investigation by the Glen Carbon Police Department, the Federal Bureau of Investigations and the Internal Revenue Service/Criminal Investigations. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Gans Man Pleads Guilty to Methamphetamine Distribution, Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that JAMES WESLEY JACOBS, age 38, of Gans, Oklahoma, pled guilty to POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), and Title 18, United States Code, Section 2, punishable by no more than 40 years imprisonment, and up to a $5,000,000.00 fine or both; and to FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that on or about August 30, 2016, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Indictment further alleged that on or about August 30, 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, firearms which had been shipped and transported in interstate and foreign commerce.
The charges arose from an investigation by the District 27 Drug Task Force, and the Drug Enforcement Administration.
The Honorable Kimberly E. West, 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 Timothy Hammer represented the United States.
Former Titusville Football Coach and Teacher’s Aide Sentenced to Prison for Drug Trafficking OffenseRead the Press Release
Orlando, Florida – U.S. District Judge Gregory A. Presnell today sentenced Leonard Charles Agee Jr. (40, Titusville) to 36 months in federal prison for conspiracy to distribute and to possess with the intent to distribute marijuana, heroin, and cocaine. At the time of his arrest on June 29, 2016, Agee was a Titusville High School football coach, a teacher’s aide, and an employee of the Brevard County Schools. He pleaded guilty on November 9, 2016.
According to his plea agreement, in January 2015, the Drug Enforcement Administration and the Titusville Police Department began investigating Agee. In September 2015, officers made controlled purchases of heroin from him. Agee had also obtained marijuana from Colorado for redistribution in Florida and sold cocaine obtained from South Florida for redistribution in Central Florida. He was responsible for the possession and/or distribution of over 100 grams of heroin, more than two kilograms of cocaine, and over 75 pounds of marijuana.
This case was investigated by the Titusville Police Department and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney E. Jackson Boggs Jr.
Former NASA Employee Sentenced to Serve Ten Years in Federal Prison for Coercion of a MinorRead the Press Release
CHATTANOOGA, Tenn. - Thomas de Matteis, 54, of Hazel Green, Ala., was sentenced on Feb. 27, 2017, by the Honorable Harry S. Mattice, Jr., U.S. District Court Judge, to serve 10 years in federal prison for coercing or enticing a minor to engage in sexual activity. Matteis pleaded guilty to this charge in November 2016.
At the time of his offenses, Matteis was employed by NASA in Alabama. An investigation started by the Tennessee Bureau of Investigation (TBI) and U.S. Homeland Security Investigations (HSI) revealed that he communicated online, both from his home and office in Alabama, with a law enforcement agent posing as a 14-year old girl. Matteis drove to Chattanooga, Tenn., expecting to meet the 14-year old and engage in sexual activity with her.
In addition to the TBI and HSI, once it was discovered that some of the criminal activity occurred in Alabama using his office computer, the NASA Office of Inspector General joined the investigation. Assistant U.S. Attorney Terra L. Bay represented the United States.
This case was brought as part of Project Safe Childhood (PSC), 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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC 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 PSC, 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.”
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Former Deputy Attorney General Selected as Corporate Monitor over Pacific Gas and Electric CompanyRead the Press Release
SAN FRANCISCO— Former Acting Attorney General and Deputy Attorney General of the U.S. Department of Justice Mark Filip, now a Chicago-based partner with the law firm Kirkland & Ellis, has been jointly selected by the U.S. Attorney’s Office for the Northern District of California and Pacific Gas and Electric Company (PG&E) to serve as Compliance and Ethics Monitor of PG&E. On January 26, 2017, the Honorable Thelton E. Henderson, Senior United States District Judge, ordered PG&E to submit to a five-year period of monitorship as a condition of the company’s probation following its five felony convictions for willful violations of the Natural Gas Pipeline Safety Act. The jury also convicted PG&E of corruptly obstructing the federal investigation of the 2010 gas transmission line explosion in San Bruno. Mr. Filip previously served as a federal judge in the U.S. District Court for the Northern District of Illinois, as well as an Assistant United States Attorney in the United States Attorney’s Office for the Northern District of Illinois.
Former Bayonne Official Sentenced to 21 Months Prison for Accepting $65,000 in Bribes for Awarding HUD Grant FundsRead the Press Release
TRENTON, N.J. – A Hudson County, New Jersey, man, who served as the senior accountant of the City of Bayonne Department of Community Development (CBDCD) was sentenced today to 21 months in prison for accepting $65,000 in bribe payments in exchange for his assistance in awarding projects funded by U.S. Department of Housing and Urban Development grants, U.S. Attorney Paul J. Fishman announced.
Anselmo Crisonino, 56, of Bayonne, previously pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to a four-count information charging him with one count of accepting bribe payments totaling approximately $65,000 from Joseph Arrigo, the owner of a contracting company in Bayonne. Crisonino also pleaded guilty to one count of theft and conversion of federal funds ($422,360), one count of conducting an illegal gambling business, and one count of submitting a false tax return for tax year 2011.
According to documents filed in this case and statements made in court:
The CBDCD was an agency that received funds from the U.S. Department of Housing and Urban Development (HUD) under a federal program that provided grants up to $20,000 to low income families to rehabilitate their homes and to repair conditions affecting health and safety, accessibility, energy efficiency or code compliance. The CBDCD also provided these HUD funds under the same federal program to nonprofit organizations. Crisonino was responsible for reviewing applications and awarding such funds to qualified applicants.
In September 2010, Crisonino solicited cash bribe payments from Arrigo in exchange for Crisonino’s assistance in awarding HUD grant funds from the CBDCD to Arrigo as the owner of Shadow Contracting LLC. From September 2010 to February 2013, Crisonino received cash payments from Arrigo totaling approximately $65,000 in exchange for Crisonino’s assistance in awarding HUD grant funds from the CBDCD to Arrigo that totaled approximately $426,000.
Between September 2010 and February 2013, Crisonino awarded HUD grant funds to several contractors and plumbers in Bayonne through the CBDCD, despite the fact that Crisonino knew that the submitted bids for the projects were fraudulent and were the result of collusion by the contractors and plumbers. Crisonino also approved change orders on projects where little to no legitimate work had been done by the contractors and plumbers at the job sites. The approved change orders allowed the CBDCD to disperse additional HUD grant funds to the projects that had already reached the maximum $20,000 grant allotment.
Crisonino also pleaded guilty to conducting an illegal gambling business in northern New Jersey. The illegal gambling business was administered and managed through a website that Crisonino and others accessed through usernames and passwords.
He admitted making and subscribing a U.S. Individual Tax Return, Form 1040, for tax year 2011 filed with the IRS, which he did not believe to be true and correct as to every material matter, including approximately $65,000 in unreported income through the bribe payments.
In addition to the prison term, Judge Sheridan sentenced Crisonino to three years of supervised release and ordered him to pay restitution of $439,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark: special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark, with the investigation leading to today’s sentencing plea.
The government is represented by Assistant U.S. Attorney Jacques S. Pierre of the Special Prosecutions Division.
Defense counsel: Daniel J. Welsh Esq., Jersey City, N.J.