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Friday 6 January 2017
New York Man Pleads Guilty to Drug Trafficking Conspiracy and Firearms ChargesRead the Press Release
Contact: Daniel J. Perry
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Malcolm Cowart, a/k/a “Prince”, 37, of Harlem, New York, pleaded guilty today in U.S. District Court to conspiracy to possess with intent to distribute a kilogram or more of heroin, cocaine base, and oxycodone and to discharging a firearm during and in furtherance of that drug trafficking conspiracy.
According to court records, from about November 2011 until March 2014, Cowart conspired with others to distribute heroin, cocaine base, and oxycodone in Portland. The drugs were brought from the New York area by managers of the drug conspiracy. The managers stayed with Portland residents who were paid drugs and money for allowing the conspirators to use their apartments to distribute drugs. Managers dispatched runners to distribute the drugs throughout the Portland area.In March 2013, Cowart had a falling out with Wayman Sparrow that led to the two of them engaging in a shootout inside the Lafayette Arms Apartments in Portland. In March 2014, agents with the U.S. Drug Enforcement Administration (“DEA”) and the Maine Drug Enforcement Agency (“MDEA”) searched an apartment in Portland, encountered a manager fleeing out the back door, and seized about $25,000 in drug proceeds from him. Later that day, agents apprehended another manager traveling by bus from New York and seized about 400 grams of heroin from her.
Cowart faces between 20 and 25 years in prison, up to five years of supervised release and a $10,000,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
This is the ninth federal conviction arising from this investigation; numerous state convictions of other individuals have also arisen from this investigation.
This joint investigation was conducted by the DEA, the MDEA and the Portland Police Department, with valuable assistance provided by Maine State Police Crime Laboratory and the Cumberland County District Attorney’s Office.
Neopit Man Indicted for Drug Trafficking and Firearm Offenses on Menominee Indian ReservationRead the Press Release
Gregory J. Haanstad, United States Attorney, announced that on January 4, 2017, a federal grand jury returned a three-count indictment against a man involved in drug trafficking on the Menominee Indian Reservation. The indictment named Joseph Komanekin, Jr. (age: 33) of Neopit. Count One of the indictment charged Komanekin with Possession with Intent to Distribute a Schedule I Controlled Substance in violation of 21 United States code, Section 841. Count Two charged Komanekin with Possession of a Firearm in Furtherance of a Drug Trafficking Offense in violation of 18 United States Code, Section 924(c). Count Three charged Komanekin with Possession of a Short-Barreled Shotgun in violation of 26 United States Code, Section 5861(d). On Count One Komanekin faces a maximum sentence of up to 20 years’ imprisonment, up to a $1,000,000 fine, and between 3 years and a lifetime of Supervised Release. On Count Two Komanekin faces a mandatory 10-year consecutive sentence and up to life in prison, up to a $250,000 fine and up to 5 years of Supervised Release. On Count Three Komanekin faces a maximum sentence of up to 10 years’ imprisonment, up to a $10,000 fine and up to 3 years of Supervised Release.
According to the indictment, the defendant possessed just under 40 grams of a substance containing a Schedule I analogue called AB-FUB, which is a synthetic cannabinoid known locally as “Ish.” The synthetic drugs were discovered along with shotgun ammunition and a short-barreled shotgun during the February 6, 2016 execution of a search warrant at Komanekin’s residence.
The case was investigated by the Menominee Tribal Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Andrew J. Maier.
An indictment is only a charge and not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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For additional information contact:
Acting Public Information Officer Elizabeth Makowski at 414 297-1700
More Than Fifty Pounds of Methamphetamine Seized During Four Drug Interdiction InvestigationsRead the Press Release
ALBUQUERQUE – Seven defendants are facing federal methamphetamine trafficking charges in four cases involving seizures last week of more than 52 pounds of methamphetamine. Three of the cases are the result of interdiction investigations at the Greyhound Bus Station and Amtrak Train Station in Albuquerque, N.M. The fourth case arose out of a traffic stop on Interstate 40 in Bernalillo County, N.M.
Four men were arrested on Dec. 28, 2016, and charged with methamphetamine trafficking offenses after the DEA and New Mexico State Police (NMSP) seized a total of 10.75 kilograms (23.7 pounds) of methamphetamine during two interdiction investigations at the Greyhound Bus Station. The methamphetamine was allegedly concealed in various bundles inside luggage and a locked safe. Alvan Raylon Tillman, 26, of Phoenix, Ariz., is charged with possession of more than two pounds of methamphetamine in one case, while Lewayne Deray Jennings, 28, of Dayton, Ohio, Jerell Leveine Whitman-Crutcher II, 29, of Warren, Mich., and Marcus Bernard Harris, Jr., 21, of Southfield, Mich., are jointly charged with possession of more than 21 pounds of methamphetamine in a separate case.
Also on Dec. 28, 2016, Mario Sanchez-Ceja, 27, was arrested and charged with possessing approximately 8.28 kilograms (18.25 pounds) of methamphetamine in Bernalillo County. According to the criminal complaint, Sanchez-Ceja was arrested after law enforcement agents allegedly seized the methamphetamine from Sanchez-Ceja’s vehicle following a routine traffic stop on Interstate 40.
On Dec. 30, 2016, April Luna-Contreras, 21, and Esthela Contreras-Luna, 44, both of San Diego, Calif., were arrested on methamphetamine trafficking charges after the DEA and NMSP seized approximately 4.75 kilograms (10.47 pounds) of methamphetamine from them during an interdiction investigation at the Amtrak Train Station in Albuquerque. The methamphetamine was allegedly contained in bundles concealed under Luna-Contreras and Contreras-Luna’s clothes.
If convicted, each of the seven defendants faces a statutory mandatory minimum of ten years to a maximum of life imprisonment.
The cases against Tillman, Jennings, Whitman-Crutcher and Harris were investigated by the Albuquerque office of the DEA and the NMSP and are being prosecuted by Assistant U.S. Attorney Kimberly A. Brawley. The case against Sanchez-Ceja was investigated by the Albuquerque office of Homeland Security Investigations and the NMSP and is being prosecuted by Assistant U.S. Attorney Paul H. Spiers, and the case against Luna-Contreras and Contreras-Luna was investigated by the Albuquerque office of the DEA and NMSP and is being prosecuted by Assistant U.S. Attorney Rumaldo R. Armijo.
Mission Woman Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, woman has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Heather DuBray, age 45, was indicted on December 13, 2016. She appeared before U.S. Magistrate Judge Mark A. Moreno on January 6, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about November 7, 2016, DuBray did forcibly assault, resist, oppose, impede, intimidate, and interfere with two corrections officers from the Rosebud Sioux Tribe while they were engaged in the performance of their official duties.
The charge is merely an accusation and DuBray is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
DuBray was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mescalero Apache Woman Sentenced for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Corinne Delphine Kinzhuma, 31, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to 30 months in prison followed by three years of supervised release for her conviction on federal assault charges.
Kinzhuma was arrested on Feb. 26, 2015, on a criminal complaint charging her with assaulting a Mescalero Apache man on Dec. 12, 2014, by stabbing him repeatedly in neck, chest, arm and cheek. The assault occurred on the Mescalero Apache Indian Reservation in Otero County, N.M. As a result of the assault, the victim required a chest tube and admission to the surgical intensive care unit for continuous monitoring of his neck wound; he also suffered a fracture of the left radius.
Kinzhuma was subsequently indicted on June 17, 2015, and charged with assault with a dangerous weapon, a knife, with intent to do bodily harm and assault resulting in serious bodily injury on Dec. 12, 2014, in Indian Country in Otero County. On March 9, 2016, Kinzhuma entered a guilty plea to the indictment without the benefit of a plea agreement.
This case was investigated by the Las Cruces office of the FBI and the Mescalero Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
Marrero Men Indicted on Firearms and Drug ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that HECTOR MATA, JR., age 30, and FERNANDO ORDONEZ, age 38, both of Marrero, were indicted today for charges of conspiracy to distribute cocaine, heroin, and marijuana, possessing of a firearm during a drug trafficking crime, and other offenses.
According to the Indictment, on December 15, 2016, MATA JR. and ORDONEZ conspired to possess 500 grams or more of cocaine, 100 grams or more of heroin, and a quantity of marijuana, along with other drug offenses. MATA JR. and ORDONEZ are also each charged with possessing two firearms during a drug trafficking crime: a .38 caliber Smith and Wesson revolver and a .223 caliber Olympic Arms model MFR assault rifle. MATA JR. is separately charged with possessing an additional firearm during a drug trafficking crime: a .40 caliber Smith and Wesson handgun.
In connection with their possession of firearms, MATA JR. is also charged with being a felon in possession of a firearm, and ORDONEZ is charged with being an illegal alien in possession of a firearm. Finally, MATA JR. is charged with obstruction of justice for attempting to bribe a Detective from the Jefferson Parish Sheriff’s Office.
If convicted on the drug conspiracy, MATA JR. and ORDONEZ are facing a minimum of 5 years to a maximum of 40 years imprisonment. On the weapons charge, each defendant is facing a minimum of 5 years to a maximum of life imprisonment. Additionally, MATA JR. faces up to 20 years for the obstruction of justice charge.
U.S. Attorney Polite reiterated that the Indictment is merely an allegation and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the U.S. Homeland Security Investigations and the Jefferson Parish Sheriff’s Office in investigating this case. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
Man from Many sentenced to 30 months in prison for firearm chargeRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a man from Many was sentenced to 30 months in prison for illegally possessing a shotgun.
John Michael Murphy, 30, Many, La., was sentenced by U.S. District Judge Elizabeth E. Foote on one count of possession of a firearm and ammunition by a convicted felon. He was also sentenced to three years of supervised release. According to the September 14, 2016 guilty plea, Many police initiated a traffic stop on a vehicle Murphy was riding in on January 9, 2016. Once the police activated their patrol car’s overhead lights, a shotgun was thrown from the vehicle. When the vehicle came to a stop, Murphy exited and fled into a wooded area. Police retrieved the firearm, which was determined to be a 12-gauge shotgun loaded with ammunition. The defendant was later arrested at his residence in Many.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to promote firearm safety and to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm.
The ATF, Many Police Department and Zwolle Police Department conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Maine Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A Westbrook, Maine, man was sentenced yesterday in U.S. District Court in Springfield for failing to register as a sex offender.
Phillip Jordan, 51, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 25 months in prison and five years of supervised release. In October 2016, Jordan pleaded guilty to one count of failure to register as a sex offender.
Jordan was convicted in 1984 of rape with a knife, gross sexual misconduct, and kidnapping in York County Superior Court in Maine. He was sentenced to 17 years in prison and required to register as a sex offender for the rest of his life. In August 2015, Jordan traveled from Maine to Springfield, Mass., and remained in the Springfield area until October 2015. Jordan failed to register as a sex offender in Massachusetts despite knowing his obligation to do so.
United States Attorney Carmen M. Ortiz and John Gibbons, U.S. Marshal for the District of Massachusetts made the announcement. Assistant U.S. Attorneys Alex J. Grant and Katharine A. Wagner of Ortiz’s Springfield Branch Office prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Lisbon man sentenced to eight years in prison for defrauding investors out of $1 millionRead the Press Release
A Lisbon man was sentenced to more than eight years in prison for defrauding people out of more than $1 million and using the money to pay for luxury cars and expensive vacations, said U.S. Attorney Carole S. Rendon and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Paul L. Shockley, 24, was found guilty last year of three counts of mail fraud.
“This defendant lived the high life by stealing the fruits of other peoples’ labor,” Rendon said. “His days of fleeing responsibility for his actions are over.”
Shockley operated multiple fraud schemes.
He established several companies, known collectively as D’Legato, that was a purported start-up venture that would operate an assisted living center. Neither Shockley nor any of his associates had operated an assisted-living center before. Shockley defrauded four New York residents between 2013 and 2015 by causing them to invest in D’Legato through false and fraudulent misrepresentations, according to court documents.
Shockley persuaded one of the victims to use part of her retirement savings to make payments on unauthorized credit card transactions, falsely telling the victim the payments would be credited as investments in D’Legato.
The combined loss to victims in the D’Legato fraud scheme was approximately $563,000, according to court documents.
Shockley also induced victims to provide him with credit card information, which he used to make more than $308,000 in unauthorized purchases on at least 17 different credit cards, according to court documents.
In 2015, Shockley and others defrauded two other people by enticing them to invest in We Love Snobs, which purported to be an online luxury consignment store. Shockley routinely misled investors and told them investments would result in high returns, when in fact he used the money to pay personal expenses, unreasonably high salaries and luxury shopping sprees. The combined losses of the We Love Snobs scheme is $280,000, according to court documents.
Shockley also removed his ankle monitor and fled Ohio while out on bond after pleading guilty, according to court documents.
This case was prosecuted by Assistant U.S. Attorney Paul M. Flannery following an investigation by the FBI, with assistance from the US Postal Inspection Service.
Lincoln Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney, Deborah R. Gilg, announced that on January 6, 2017, Tiffany Alice Wolfe, 33, of Lincoln, was sentenced to 10 years and three months (123 months) for her role in a conspiracy to distribute and possess with the intent to distribute 500 grams or more of a substance containing methamphetamine between September of 2013, and December of 2015. Information obtained by law enforcement indicated that Wolfe was responsible for the distribution of at least 1.5 kilograms, (approximately three pounds) of methamphetamine during that time. In September of 2015, Wolfe was contacted by Lincoln Police officers and told officers she had been selling methamphetamine for two years. In December of 2015, she was found in possession of over ten grams of methamphetamine outside the Lancaster County Jail. At that time, Wolfe said she had five to ten customers, at least three of whom were reselling methamphetamine purchased from her to other persons.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney, Deborah R. Gilg, announced that on January 6, 2017, Ryan Homer Dittmer, 40, of Lincoln, was sentenced to eight years and one month (97 months) for his role in a conspiracy to distribute and possess with the intent to distribute 50 grams or more of a substance containing methamphetamine between October of 2013, and February of 2016. Information obtained by law enforcement indicated that Dittmer was responsible for the distribution of at least 1.5 kilograms, (approximately three pounds) of methamphetamine during that time. In January of 2016, Dittmer was contacted by Lincoln Police officers, and he was found in possession of approximately 1 ⅔ ounces of methamphetamine. At that time, he told officers that he had been selling quantities of methamphetamine of one ounce or more for over a year, and the majority of his customers were buying quantities large enough to sell to other persons.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Leaders of an Orlando-Area Heroin Trafficking Organization Sentenced to Federal PrisonRead the Press Release
Orlando – United States District Judge Carlos E. Mendoza today sentenced Angel Manuel Fontanez (32, Clermont) and his brother, Alexis Fontanez Nieves (29, Orlando), to 17 years and 2 months and 14 years in federal prison, respectively, for conspiracy to distribute and possession with the intent to distribute heroin. Fontanez pleaded guilty on October 12, 2016, and Nieves pleaded guilty on October 21, 2016.
According to court documents and sentencing testimony, Fontanez and Nieves were leaders of an Orlando-based drug trafficking organization whose members referred to themselves as “La Compania” or “The Company.” The organization used a telephone number (“the heroin line”) that frequently changed to sell heroin to customers primarily in the Orlando tourist district, near International Drive. Customers would call the heroin line and arrange to purchase heroin from a member of the organization. The line changed hands from one member of the organization to the next, as heroin was sold during two 12-hour shifts, seven days a week.
Fontanez was the leader of the organization, and he traveled out-of-state to acquire kilograms of heroin that he transported back to the Orlando area and then repackaged into smaller, street-level quantities for distribution. He also managed and directed the activities of the organization’s street dealers.
Nieves helped Fontanez run the organization by repackaging bulk heroin into smaller baggies and supplying both heroin and cocaine to the street-level sellers. After Fontanez was arrested, Nieves directed the organization’s day-to-day activities by recruiting individuals to work for the organization, controlling the heroin line, providing heroin to the organization’s low-level sellers, and collecting money from the sellers at the conclusion of their shifts. The organization distributed approximately one kilogram of heroin every two weeks. During the time of the conspiracy, Fontanez was responsible for distributing at least 30 kilograms of heroin and Nieves was responsible for distributing at least 10 kilograms of heroin.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation entitled “La Compania.” The investigation was conducted by the Drug Enforcement Administration, with assistance from the Orange County Sheriff’s Office, the Metropolitan Bureau of Investigation, the United States Marshals Service, the Federal Bureau of Investigation, the Orlando Police Department, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Kissimmee Police Department, the Osceola County Investigative Bureau, and the Virginia State Police. It was prosecuted by Assistant United States Attorney Andrew C. Searle.
The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation's drug supply.
Keshena Man Indicted for Domestic Abuse Offenses on Menominee Indian ReservationRead the Press Release
Gregory J. Haanstad, U.S. Attorney, announced that on January 4, 2017, a federal grand jury returned a two-count indictment against a man involved in habitual domestic violence offenses on the Menominee Indian Reservation. The indictment named Jeffrey Matchopatow (age: 22) of Keshena. Count One of the indictment charged Matchopatow with Domestic Assault by a Habitual Offender in violation of 18 United States Code, Section 117. Count Two of the indictment charged Matchopatow with Assault Resulting in Serious Bodily Injury in violation of 18 United States Code, Section 113. On each count Matchopatow faces a maximum sentence of up to 10 years’ imprisonment, up to a $250,000 fine, and up to 3 years of supervised release.
According to the indictment, on September 11, 2016, the defendant assaulted a person with whom he lived, resulting in a facial laceration requiring sutures and a fractured jaw. Prior to September 11, 2016, Matchopatow had been convicted in Menominee Tribal Court of at least two cases involving domestic violence, which according to the indictment makes him a habitual offender under federal law.
The case was investigated by the Menominee Tribal Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Andrew J. Maier.
An indictment is only a charge and not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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For additional information contact:
Acting Public Information Officer Elizabeth Makowski at 414 297-1700
Justice Department Announces Department-Wide Procedures for Eyewitness IdentificationRead the Press Release
Deputy Attorney General Sally Q. Yates announced today that the Justice Department is issuing, for the first time, department-wide procedures on eyewitness identification, which will apply to agents at FBI, Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the U.S. Marshals Service, and which will guide federal prosecutors when deciding whether to charge a case involving an eyewitness identification. The new procedures were outlined in a memo from Yates to the heads of the department’s law enforcement agencies. The procedures address the use of “photo arrays,” the most common methods used by law enforcement to determine whether a witness can identify the perpetrator of a crime, and are designed to ensure that law enforcement personnel do not suggest to a witness, even unintentionally, that they know which photograph contains the image of the suspect.
“Eyewitness identifications play an important role in our criminal justice system, and it’s important that we get them right,” said Deputy Attorney General Yates. “With today’s procedures, we’re taking one more step to ensure that law enforcement officers obtain the most reliable evidence possible during a criminal investigation and that all Americans can have confidence in the fairness of our criminal justice system.”
The memo issued today establishes a department-wide policy directing that, except in exceptional circumstances, agents should administer photo arrays using either “blind” procedures (where the administrator is not involved in the investigation and does not know what the suspect looks like) or “blinded” procedures (where the administrator takes steps to ensure he or she cannot see the order or arrangement of the photographs viewed by the witness). In addition, the new policy stresses the importance of documenting a witness’s self-reported confidence at the moment of the initial identification, reflecting a growing body of research that such confidence is often a more reliable predictor of eyewitness accuracy that a witness’s confidence at the time of trial. The department’s new procedures call on agents to document the identification either by video- or audio-recording the test, or by having the administrator transcribe the witness’s statement as close to verbatim as possible.
In the memorandum, Yates directed the heads of the department’s law enforcement agencies to update their internal policies to reflect the new guidance and called on all department prosecutors to review the procedures prior to making a decision about whether to charge a suspect who was identified in part through the use of a photo array, whether obtained by federal, state, or local law enforcement officers.
DAG Memo - Procedures for Photo ArraysInstitutional Pharmacy Solutions to Settle Civil Penalty Claims Acknowledging Violations of Controlled Substances ActRead the Press Release
NORFOLK, Va. – Institutional Pharmacy Solutions, LLC (IPS), headquartered in Montgomery, Alabama, has agreed to pay $500,000 to settle civil penalty claims involving controlled substances being dispensed by IPS’s Virginia Beach Retail Pharmacy.
In a parallel administrative proceeding, IPS will surrender its DEA registration for the Virginia Beach Retail Pharmacy, which will foreclose that pharmacy location from dispensing controlled substance medications.
IPS fills prescriptions for patients in long term care facilities and operates pursuant to a certificate of registration issued by the DEA. Through its Virginia Beach Retail Pharmacy, IPS uses Automated Dispensing Systems (ADS) to provide prescription drugs, including controlled substance medications, to residents at long-term care facilities.
In accordance with the DEA’s regulatory authority over registered pharmacies, DEA Diversion Investigators conducted a two-year investigation that examined the controlled substances prescriptions filled by IPS’s Virginia Beach Retail Pharmacy. This investigation revealed numerous instances where IPS’s Virginia Beach Retail Pharmacy violated the Controlled Substance Act (CSA). The failure to comply with prescription and recordkeeping requirements can cause the potential for unauthorized persons to access controlled substances and compromise effective accountability for controlled substances.
Under the terms of a parallel administrative proceeding, IPS will surrender its DEA registration for the Virginia Beach Retail Pharmacy, which will foreclose that pharmacy location from dispensing controlled substance medications on January 12, 2017. Until January 12, 2017, IPS will be allowed to continue to dispense prescribed controlled substances to its ADS from the IPS Virginia Beach Retail Pharmacy. The extended surrender deadline is to provide the long-term care facilities with adequate time to make alternative arrangements to address their controlled substance medication needs.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia and the DEA’s Washington Division. Assistant U.S. Attorneys Richard Sponseller and Clare Wuerker handled the CSA civil penalty matter. The resolution also resolves a parallel administrative action, In the Matter of Institutional Pharmacy Solutions, LLC, Docket No. 16-35 (Drug Enforcement Admin. August 2016). The administrative action was handled by Scott Levin and Krista Tongring of the DEA Diversion & Regulatory Litigation Office of Chief Counsel.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Indianapolis man charged in child pornography caseRead the Press Release
Alleged to have sexually exploited four children under the age of seven
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler, announced today that Indianapolis resident Christopher A. Abraham, 38, was charged with sexually exploiting four children, all under the age of seven years old, and with possessing child pornography.
“Protecting trusting children from predators who would sexually exploit them continues to be a top priority in my office,” said Minkler. “In this office, child victims will always have an advocate to hold their abusers accountable.”
On January 2, 2017, detectives from the Indianapolis Metropolitan Police Department received information that Abraham had images of child pornography on his computer at his residence on the Eastside of Indianapolis. Law enforcement officials obtained search warrants for computers, external drives and other electronic devices at Abraham’s residence and found thousands of images of child pornography.
Investigators learned that, in addition to commercially produced child-pornography, Abraham’s collection contained images that Abraham is alleged to have produced of minor children which whom he had contact. The images, alleged to have been produced by Abraham, are of victims ranging in age from two to seven years old.
This case was investigated by the Indianapolis Metropolitan Police Department, Indiana State Police, and the Indiana Crimes Against Children Task Force.
Assistant United States Attorney Kristina Korobov who is prosecuting this case for the government said Abraham’s maximum sentencing exposure would be 140 years imprisonment if convicted of all charges contained in the complaint.
Abraham had his initial appearance earlier this week and remains in the custody of the United States Marshal’s Service.
A complaint is only a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
Independence Man Pleads Guilty to Distributing Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man pleaded guilty in federal court today to distributing child pornography.
Eric A. Jackson, 53, of Independence, pleaded guilty before U.S. District Judge Stephen R. Bough to the charge contained in a Nov. 17, 2015, federal indictment.
By pleading guilty today, Jackson admitted that he sent images of child pornography to a 16-year-old female in Illinois. According to today’s plea agreement, an aunt discovered the images on her niece’s cell phone and made a report to the Schuyler County, Ill., Sheriff’s Department. Among the pornographic images sent by Jackson was a 10-year-old female who was “hog tied.”
The 16-year-old to whom Jackson sent the child pornography images told investigators they had been communicating via social media for approximately a year, and had exchanged nude photos of each other.
Law enforcement officers executed a search warrant at Jackson’s residence and seized a Samsung tablet and a Samsung cell phone. Examiners found 1,028 photos and 130 videos of child pornography on the devices. Examiners also found evidence that Jackson had sent more than 70 attachments, which included both adult and child pornography.
Under federal statutes, Jackson is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney David Luna. It was investigated by the FBI Child Exploitation Task Force and the Schuyler County, Ill., Sheriff’s Department.
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."
Haitian National Charged with International Narcotics and Money Laundering ConspiracyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Adolphus P. Wright, Special Agent in Charge, United States Drug Enforcement Administration (DEA), Miami Field Division, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office announced that the indictment against Guy Philippe, 48, of Haiti, was unsealed this morning in the Southern District of Florida.
Philippe was indicted in 2005 on one count of conspiracy to import narcotics; one count of conspiracy to launder monetary instruments and engage in monetary transactions in property derived from unlawful activity; and one substantive count of engaging in monetary transactions derived from unlawful activity. This afternoon, Philippe was ordered held without bond during an initial hearing before U.S. Magistrate Judge Barry L. Garber of the Southern District of Florida. Philippe’s arraignment hearing is scheduled for January 13, 2017.
According to the indictment, from approximately 1997 through 2001, Philippe conspired with others to import more than five kilograms of cocaine into the United States. From approximately June 1999 through April 2003, Philippe also allegedly conspired with others to engage in money laundering to conceal their participation in criminal activity, including narcotics trafficking. The indictment alleges that in 2000, Philippe transferred a $112,000 check through a financial institution, affecting interstate and foreign commerce, that included monies derived from the illicit drug trafficking enterprise.
An indictment is merely an allegation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The DEA and IRS-CI investigated the case. The Criminal Division’s Office of International Affairs, U.S. Marshals Service Fugitive Task Force, U.S. Customs and Border Protection’s Miami Office of Field Operations and the Haitian Government, including the Haitian Ministry of Justice, Haitian National Police and La Brigade de Lutte contre le Trafic de Stupéfiants (BLTS), provided assistance in this matter. Assistant U.S. Attorneys Lynn M. Kirkpatrick and Andy R. Camacho of the Southern District of Florida and Senior Trial Counsel Mark A. Irish of the Criminal Division’s Asset Forfeiture and Money Laundering Section are prosecuting the case.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
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.
Haitian National Charged with International Narcotics and Money Laundering ConspiracyRead the Press Release
An indictment was unsealed today in connection with the arrest of a Haitian national charged with conspiracy to import narcotics and money laundering offenses.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Adolphus P. Wright of the Drug Enforcement Administration’s (DEA) Miami Field Division and Special Agent in Charge Kelly R. Jackson of Internal Revenue Service – Criminal Investigation’s (IRS-CI) Miami Field Office made the announcement.
Guy Philippe, 48, of Haiti, was indicted in 2005 on one count of conspiracy to import narcotics; one count of conspiracy to launder monetary instruments and engage in monetary transactions in property derived from unlawful activity; and one substantive count of engaging in monetary transactions derived from unlawful activity. This afternoon, Philippe was ordered held without bond during an initial hearing before U.S. Magistrate Judge Barry L. Garber of the Southern District of Florida. Philippe’s arraignment hearing is scheduled for Jan. 13, 2017.
According to the indictment, from approximately 1997 through 2001, Philippe conspired with others to import more than five kilograms of cocaine into the United States. From approximately June 1999 through April 2003, Philippe also allegedly conspired with others to engage in money laundering to conceal their participation in criminal activity, including narcotics trafficking. The indictment alleges that in 2000, Philippe transferred a $112,000 check through a financial institution, affecting interstate and foreign commerce, that included monies derived from the illicit drug trafficking enterprise.
An indictment is merely an allegation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The DEA and IRS-CI investigated the case. The Criminal Division’s Office of International Affairs, U.S. Marshals Service Fugitive Task Force, U.S. Customs and Border Protection’s Miami Office of Field Operations and the Haitian Government, including the Haitian Ministry of Justice, Haitian National Police and La Brigade de Lutte contre le Trafic de Stupéfiants (BLTS), provided assistance in this matter. Senior Trial Counsel Mark A. Irish of the Criminal Division’s Asset Forfeiture and Money Laundering Section and Assistant U.S. Attorneys Lynn M. Kirkpatrick and Andy R. Camacho of the Southern District of Florida are prosecuting the case.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Guatamalan man charged with citizenship violationRead the Press Release
A one-count information was filed charging Alonso Ramos Ciprian, 20, of Guatamala, with false claim to U.S. citizenship, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
The information charges that from on or about November 16, 2015, through on or about November 16, 2016, Ciprian, a citizen of Guatemala and therefore an alien in the United States, falsely and willfully represented himself to be a citizen of the United States.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the information was conducted by the Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations and the Salem Police Department. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Greenfield Man Agrees to Plead Guilty to Child Pornography ChargesRead the Press Release
BOSTON – Derek Lecompte, 26, agreed to plead guilty yesterday in U.S. District Court in Springfield to three counts of sexual exploitation of a child. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for March 30, 2017.
Lecompte admitted that he befriended a 10-year-old boy, took sexually explicit pictures of him, and posted the pictures on the internet.
The charging statute provides a mandatory minimum sentence of 15 years and no greater than 30 years in prison, five years of supervised release, a fine of $250,000. If the Court accepts the plea agreement, Lecompte will be sentenced to 15 years in prison, and 10 years of supervised release. 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.
United States Attorney Carmen M. Ortiz; Northwestern District Attorney David Sullivan; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Greenfield Police Chief Robert H. Haigh Jr., made the announcement today. Assistant U.S. Attorney Alex J. Grant of Ortiz’s Springfield Branch Office is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Four-Time Felon Sentenced to 68 Months for Possessing 26 FirearmsRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick Miles announced that 43-year-old Khamdeng Sam Phanthourath, of Holland, was sentenced recently to 68 months in prison, following his conviction for possessing firearms and ammunition as a felon. He also received a $1,500 fine. A three-year term of supervised release will follow Phanthourath’s prison term.
The U.S. Attorney brought charges against Phanthourath after the West Michigan Enforcement Team (WEMET) executed a search warrant at his home on June 15, 2016. At the sentencing hearing before Chief U.S. District Judge Robert Jonker, the U.S. Attorney’s Office introduced evidence that investigating officers found 26 firearms, muzzle loader guns, thousands of rounds of ammunition, a homemade silencer, body armor, marijuana, more than 800 pills (including narcotics, suboxone, and methylphenidate), more than $9,000 cash, and a police scanner set to the Ottawa County Sheriff’s Frequency. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) determined that at least one of the firearms was stolen. Phanthourath had previously been convicted of, among other things, breaking and entering a building with intent and being a felon in possession of a firearm.
"The U.S. Attorney’s Office is dedicated to the mission of keeping firearms out of the hands of dangerous felons and drug dealers," said U.S. Attorney Patrick Miles. "The U.S. Attorney’s Office and ATF work closely with local law enforcement to investigate, identify, and prosecute individuals who pose a threat to our community."
"Holland Township residents can sleep better tonight knowing another dangerous criminal is behind bars," said Special Agent in Charge Robin Shoemaker. "ATF will continue to partner with local and state law enforcement agencies to bring criminals to justice and restore peace in our neighborhoods."
"The West Michigan Enforcement Team has shared a great relationship with the U.S. Attorney’s Office for the Western District of Michigan for several years," said Detective First Lieutenant Andrew Fias, Section Commander of WEMET. "It is a partnership that has led to successful prosecutions at the federal level. We are also very fortunate to have excellent relationships with ATF and our other federal law enforcement partners. WEMET has investigated numerous cases in the Holland area with ATF, curbing violent crime that has plagued this community. This case is a great example of many."
The case was investigated by WEMET and ATF. Assistant U.S. Attorney Sally Berens prosecuted the case.
END
Four Defendants Sentenced to Prison for Stolen Identity Tax Fraud SchemeRead the Press Release
Four defendants were sentenced to federal prison for their participation in a stolen identity tax fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Steve Steinberg, Chief, Aventura Police Department, made the announcement.
Wolf Obin, 32, of Miami-Dade, was sentenced to 64 months in prison, to be followed by 3 years of supervised release. Stanley Moscova, 28, of Miami-Dade, was sentenced to 60 months in prison, to be followed by 3 years of supervised release. Rosny Muller, 29, of Broward County, was sentenced to 33 months in prison, to be followed by 3 years of supervised release. These three defendants were previously convicted at trial of one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286, and one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3). Obin and Moscova were also convicted of three counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to evidence presented at trial, beginning in October 2011, Obin, Moscova, and Muller fraudulently obtained Electronic Filing Identification Numbers (EFINs) in the names of other individuals who acted as “straw” EFIN holders which allowed the defendants to submit tax returns in the names of other individuals. The defendants then used those EFINs, as well as EFINs in their own names, to file fraudulent federal income tax returns with the IRS using the stolen personal identifying information (PII) of other individuals without their knowledge and authority. During a search warrant of the defendants’ Aventura apartment, law enforcement discovered the PII of more than 1,600 individuals. Through their tax filings, the defendants claimed approximately $2,300,000 in fraudulent federal tax refunds from the IRS.
In a separate but related case, defendant Leonard Rosalvo Obin (Case Number 16CR20525), was sentenced to 30 months in prison, to be followed by 3 years of supervised release. Leonard Obin previously pled guilty to one count of possession of fifteen or more unauthorized access devices, and one count of aggravated identity theft. During the search warrant, law enforcement found a phone and flash drive in Leonard Obin’s pants pockets. The phone and flash drive contained the names, dates of birth, and Social Security numbers of 86 and 91 individuals, respectively.
Mr. Ferrer commended the investigative efforts of the IRS-CI and the Aventura Police Department. These cases were prosecuted by Assistant U.S. Attorneys Matthew J. Langley and Luis M. Perez.
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.
Former Vice President of Publicly Traded Company Charged with Orchestrating $100 Million Securities Fraud SchemeRead the Press Release
A former vice president of U.S. operations at a now-defunct publicly traded Canadian oil-services company was indicted with orchestrating a scheme to fraudulently inflate the company’s reported revenue by approximately $100 million.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Inspector in Charge Terrence P. McKeown of the U.S. Postal Inspection Service’s (USPIS) Washington, D.C., Division made the announcement.
Joseph A. Kostelecky, 55, of Dickinson, North Dakota, was charged in an indictment filed yesterday in the District of North Dakota with five counts of wire fraud and one count of securities fraud for his alleged role in the scheme. Kostelecky, who previously worked at Poseidon Concepts Corporation’s field office in Dickinson, made his initial appearance earlier today before U.S. Magistrate Judge Charles S. Miller Jr. of the District of North Dakota.
“The defendant is charged with a $100 million fraud that led to the collapse of an entire company and harm to thousands of individual investors,” said Assistant Attorney General Caldwell. “Today’s indictment again makes clear the department's commitment to protecting the investing public against those who manipulate the markets to enrich themselves.”
“Postal Inspectors will continue to aggressively protect the U.S. mail from being used by fraudsters to further their stock market manipulation schemes,” said Inspector in Charge McKeown.
The indictment alleges that between November 2011 and December 2012, Kostelecky, the sole executive in Poseidon Concepts Corporation’s U.S. division, engaged in conduct that caused the company to falsely report approximately $100 million in revenue from purported contracts with oil and natural gas companies. Kostelecky’s alleged misconduct included fraudulently directing the company’s accounting staff at the U.S. corporate headquarters in Denver to record revenue from such contracts and then assuring management that the associated revenue was collectable, when he knew that such contracts either did not exist or that the associated revenue was not collectable.
When the inflated revenue came to light at the end of 2012, the company’s stock fell precipitously, with shares losing close to $1 billion in value, and the company was forced into bankruptcy. The indictment alleges that Kostelecky perpetrated the scheme in order to inflate the value of the company’s stock price and to enrich himself through the continued receipt of compensation and appreciation of his own stock and stock options.
An indictment is merely an allegation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the USPIS Washington, D.C. Division. Trial Attorneys Anna G. Kaminska and Henry P. Van Dyck of the Criminal Division’s Fraud Section are prosecuting the case. The Securities and Exchange Commission and the U.S. Attorney’s Office of the District of North Dakota provided assistance in this matter.
The Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country. Today’s indictment is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Former E.P.I.S.D. Associate Superintendent Pleads Guilty to Fraud SchemeRead the Press Release
In El Paso today, 50–year-old former El Paso Independent School District (EPISD) Associate Superintendent Damon Murphy admitted to defrauding the U.S. Department of Education (DOE) by artificially inflating state and federal student accountability scores announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division; and, U.S. Department of Education Inspector General Kathleen S. Tighe.
Appearing before Senior United States District Judge David Briones, Murphy pleaded guilty to one count of conspiracy to defraud the United States. By pleading guilty, Murphy admitted that he and others implemented a scheme between February 2006 to September 2013 to violate the No Child Left Behind (NCLB) portion of the federal Elementary and Secondary Education Act (ESEA) in order to keep EPISD compliant with program requirements. Fraudulent misrepresentations regarding EPISD's Federal Adequate Yearly Progress standards (AYP) were submitted to the Texas Education Agency and the DOE in order to make it appear as though EPISD was meeting and exceeding AYP standards. In the 2008/2009 school year, Murphy, admittedly, gave EPISD high school principals “marching orders” to “put up barriers” to prevent 9th grade Limited English Proficiency (LEP) students and others who they perceived would perform poorly on the TAKS test from going on to the 10th grade. Later, Murphy and others implemented a plan using partial course credits for the 10th grade to reclassify and promote those held-back students to the 11th grade thereby circumventing all mandated testing/accountability procedures including the 10th grade TAKS test.
Murphy, who remains on bond pending sentencing, faces up to five years in federal prison. No sentencing date has been scheduled.
All five of Murphy’s co-defendants remain under a six-count federal grand jury indictment unsealed in April 2016. They are: 41-year-old former EPISD Assistant Superintendent James Anderson; 52-year-old former Austin High School (AHS) Principal John Tanner; 52-year-old former AHS Assistant Principal Mark Phillip Tegmeyer; 53-year-old former AHS Assistant Principal Diane Thomas; and, 48-year-old former AHS Assistant Principal Nancy Love. Jury selection is scheduled for February 13, 2017, before Judge Briones in El Paso.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Department of Education Office of Inspector General. Assistant United States Attorneys Debra Kanof, Robert Almonte and Rifian Newaz are prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. Anderson, Tanner, Tegmeyer, Thomas and Love are presumed innocent until proven guilty in a court of law.
Former Bank Employee Re-Sentenced for TheftRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza today re-sentenced Ane Plate (60, DeLand) to 27 months in federal prison for theft by a bank employee. As part of her sentence, the Court also entered a money judgment in the amount of $176, 079.70, the proceeds of the charged criminal conduct.
Plate pleaded guilty on May 20, 2015. On August 19, 2015, she was initially sentenced by U.S. District Judge Kendall G. Sharp to 27 months’ imprisonment. Plate appealed that sentence, and on October 5, 2016, the Eleventh Circuit Court of Appeals remanded the case for re-sentencing.
According to court documents, between October 8, 2013, and continuing through May 3, 2014, Plate, who was an officer and employee of Wells Fargo Bank, stole $176,079.70 in bank deposits. Specifically, she induced an elderly couple, who had been her clients for several years, to sign an ACH Authorization Agreement allowing Plate to transfer funds from the couple’s Wells Fargo Trust Account to their personal checking account. Plate then manipulated the elderly couple into writing checks to her from that account. Plate would replenish the funds in the couple’s personal account by selling off their securities, without authorization, and transferring the proceeds into the couple’s personal account. Plate then used the stolen money to make improvements to her home, pay her mortgage, and make large cash withdrawals. At the time of the offense, the elderly victims, who were in their nineties, had diminished mental capacities and were living in an assisted living facility.
This case was investigated by the U.S. Secret Service. It was prosecuted by Assistant United States Attorney Kara M. Wick.
Florida Man Sentenced to Prison for Scheming to Collect Compensation for Active-Duty Military Members Who Suffer Foreclosure LossesRead the Press Release
WASHINGTON – David Bernier, 52, of Fort Lauderdale, Fla., was sentenced today to six months in prison on a federal charge stemming from a scheme in which he forged military records and made false statements in an attempt to collect over $700,000 under a federal law meant to protect active duty military members from suffering losses through mortgage foreclosures.
The sentence was announced by Channing D. Phillips, U.S. Attorney for the District of Columbia, Lewe F. Sessions, Special Agent in Charge of the Department of Justice Office of the Inspector General’s Fraud Detection Office, and James Springs, Inspector General for the National Archives and Records Administration.
Bernier pled guilty on June 20, 2016, in the U.S. District Court for the District of Columbia to making a false statement. He was sentenced by the Honorable Colleen Kollar-Kotelly. Following his prison term, Bernier will be placed on two years of supervised release.
The scheme involved Bernier’s claims that he was entitled to protection under the Servicemembers Civil Relief Act, a law that provides protections for military members as they enter active duty. Among other things, the law prohibits non-judicial foreclosures against service members who are in military service or within the applicable post-service period, as long as they originated their mortgages before their period of military service began.
In 2012, the United States settled two lawsuits against financial institutions accused of improperly foreclosing on mortgages of active duty military service personnel. The court agreements led to the creation of settlement funds out of which payments would be made to qualified individuals whose homes had been wrongfully foreclosed upon.
Bernier filed two such claims in 2014, involving foreclosures that took place in 2008 and 2009 of two condominiums he owned in Fort Lauderdale. In both claims, Bernier stated that the properties were foreclosed upon while he was on active duty in the U.S. Air Force in Iraq. He also provided documentation claiming he had received the Defense Meritorious Service Medal and Citation for conduct in Iraq from July 2008 to March 2010. Under the settlement agreements, if the claims were valid, Bernier could have received a total of $730,000.
However, the financial institutions were unable to substantiate Bernier’s claims, leading him to submit follow-up documents and make statements attesting to his service. In fact, an investigation determined that the documents Bernier had submitted were forgeries. At the time that Bernier supposedly was in Iraq, he was in fact working in the state of Washington. No money was paid to Bernier, whose actions became the subject of a criminal investigation.
“This defendant went to great lengths in his brazen attempts to defraud financial institutions of $730,000 that was meant to protect veterans from foreclosures while they were in service to our country,” said U.S. Attorney Phillips. “Fortunately, the banks and the Department of Justice fully vetted the defendant’s many forgeries on documents and he was never paid. We will continue to hold people accountable for attempting to cash in on benefits meant for others.”
“By falsely claiming mortgage relief benefits reserved for those on active duty, the defendant not only sought to defraud the government, his actions resulted in a delay of payments to those who actually deserved to receive them -- the brave men and women who lost their homes to foreclosure while serving their country overseas,” said Special Agent in Charge Sessions. “We will continue to investigate all those who try to cheat the system in this manner.”
In announcing the sentence, U.S. Attorney Phillips, Inspector General Horowitz, and Inspector General Springs commended those who investigated the case from the Offices of Inspector General for the Department of Justice and the National Archives and Records Administration. They also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Peter C. Lallas, who prosecuted the matter.
Five More Defendants Plead Guilty to Crimes Charged in Shrimp Boy IndictmentRead the Press Release
SAN FRANCISCO- Gary Kwong Yiu Chen, Anthony John Lai, and Xiu Ying Ling “Elaine” Liang pleaded guilty to money laundering charges; Tong Zao Zhang pleaded guilty to dealing in contraband cigarettes; and Bryan Tilton pleaded guilty to conspiracy to transport stolen goods in interstate commerce announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The five plea agreements, accepted Wednesday by the Honorable Charles R. Breyer, U.S. District Judge, resulted from charges leveled against the defendants in the same original indictment that eventually led to the trial and conviction of Raymond “Shrimp Boy” Chow.
According to their plea agreements, Chen and Lai, both of San Francisco, admitted that from October through December of 2013, they facilitated eight separate financial transactions for the purpose of disguising the proceeds of illegal drug sales. The defendants admitted they engaged in drug trafficking from which the profits were obtained and that the purpose of the financial transactions was to promote ongoing criminal activity. The defendants also acknowledged that part of their objective was to transport profits from the East Coast to the West Coast and to conceal and disguise the funds from law enforcement. Chen and Lai each acknowledged that the amount of money involved in the transactions was over $635,000. They both pleaded guilty to two counts of money laundering, in violation of 18 U.S.C. § 1956(a)(1)(A)(i). Elaine Liang pleaded guilty, without a written agreement, to a single count of money laundering related to arranging the transactions that were carried out by Chen and Lai.
In addition, Zhang, of Brooklyn, N.Y., pleaded guilty to dealing in contraband cigarettes. According to his plea agreement, Zhang admitted that in July of 2013, he received more than 10,000 Marlboro cigarettes that he knew were contraband. He transported the cigarettes, none of which bore evidence of the payment of applicable New York state taxes, and delivered them to another location for resale and distribution as contraband cigarettes. Zhang acknowledged the amount of taxes avoided because of the transaction was approximately $292,500. Zhang was charged in a Superseding Information filed January 3, 2017, with one count of dealing in contraband cigarettes, in violation of 18 U.S.C. § 2342(a) and 2344. Pursuant to Wednesday’s plea agreement, he pleaded guilty to the charge.
Tilton, of San Francisco, admitted that between December of 2011 and March of 2013, he agreed with others including Chow and George Nieh, to purchase stolen Hennessy XO cognac alcohol. On March 9, 2012, Tilton met in San Francisco with Nieh and others, including an undercover FBI agent, for the purpose of making arrangements for the purchase of purportedly stolen Hennessey XO. Tilton provided the undercover agent with a purple bag containing $30,000 in cash, tasted a sample of the liquor to confirm that it was not counterfeit, and arranged for the liquor to be unloaded from the undercover agent’s van. Tilton admitted he later delivered an envelope containing $5,000 to Chow in exchange for Chow’s involvement in arranging the purchase of the purportedly stolen liquor. Tilton pleaded guilty to one count of conspiracy, in violation of 18 U.S.C. § 371.
Chen, Lai, Liang, Zhang, and Tilton all were named in an indictment filed April 3, 2014. The indictment was amended several times and eventually led to the trial and January 8, 2016, conviction of Raymond Chow, 55, of San Francisco, for racketeering, murder, money laundering, and conspiracy. Among the crimes with which Chow was charged and convicted were arranging the murder of Allen Leung and conspiring with others to murder Jim Tat Kong. The jury found Chow guilty of every one of the 162 charges leveled against him.
The maximum statutory sentence for money laundering is 20 years in prison and $250,000 or twice the value of the property laundered, whichever is greater. The maximum statutory sentence for dealing in contraband cigarettes is five years in prison and a $250,000 fine. The maximum statutory sentence for a violation of 18 U.S.C. § 371 is five years in prison and $250,000. In each case, additional terms of supervised release, restitution, and forfeiture may apply. However, any sentence would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. Judge Breyer is scheduled to sentence the defendants on the following dates: Zhang—April 12, 2017; Chen, Lai, and Liang—May 10, 2017; Tilton—June 7, 2017.
Assistant U.S. Attorneys William Frentzen, Susan Badger, S. Waqar Hasib, and David Countryman prosecuted the case with the assistance of Rosario Calderon, Kurk Kosek, Ana Guerra, Marina Ponomarchuk, Victoria Etterer, Lance Libatique, and Bridget Kilkenny. The prosecution is the result of an investigation by Federal Bureau of Investigation; the U.S. Marshal Service, San Francisco Police Department Gang Task Force; Oakland Police Department; Internal Revenue Service, Criminal Investigation; New York Police Department; Mercer County New Jersey Sheriff's Office; and the San Francisco and Alameda County Sheriff’s Departments.
Federal Officials Close Review into the Death of Jeremy McDoleRead the Press Release
WASHINGTON -- The Justice Department announced today that there is insufficient evidence to pursue federal criminal civil rights charges against the Wilmington Police Department (WPD) Corporals involved in the fatal shooting of 28-year-old paraplegic Jeremy McDole on Sept. 23, 2015.
Officials from the U.S. Attorney’s Office of the District of Delaware, the Justice Department’s Civil Rights Division and the FBI met today with representatives of the McDole family to inform them of this determination. The department makes this decision based on the determination that the evidence does not indicate that the corporals willfully used excessive force in shooting McDole.
Federal authorities devoted significant time and resources to reviewing the events surrounding McDole’s death. This involved reviewing detailed and lengthy analysis of voluminous materials, including police reports, law enforcement accounts, witness statements, dispatch logs, physical evidence reports, the autopsy report and an enhanced cell phone video of the incident.
The team of experienced federal prosecutors from the Civil Rights Division Criminal Section and the U.S. Attorney’s Office reviewed thousands of pages of documents and other evidence to determine whether the subject corporals violated federal law. Under the applicable federal criminal civil rights statute, prosecutors must establish, beyond a reasonable doubt, that a law enforcement officer willfully deprived an individual of a Constitutional right. To establish willfulness, federal authorities must show that the officer acted with the deliberate and specific intent to do something the law forbids. This is the highest standard of intent imposed by law. Mistake, misperception, negligence or poor judgment are not sufficient to establish a federal criminal civil rights violation.
The evidence developed during the investigation revealed that corporals Thomas Silva, James MacColl, Thomas Lynch and Joseph Dellose were dispatched pursuant to a 911 call reporting that a male suspect in a wheelchair, later identified as McDole, was armed with a handgun and may have sustained self-inflicted gunshot wounds. Silva arrived first at the scene, and the 911-caller pointed out McDole and said McDole was still in possession of a gun. Silva commanded McDole to show his hands and drop the gun, but McDole instead rolled his wheelchair into the street and reached into his waistband. MacColl arrived next and saw that McDole was not responding to Silva’s commands. Dellose arrived and immediately approached McDole from the opposite direction of Silva and MacColl. Dellose also ordered McDole to show his hands; however, McDole continued to reach into his waistband. Dellose stated that he observed the handle of a gun, so he fired a round at McDole from his shotgun. Lynch arrived immediately after Dellose fired.
After the shotgun blast, McDole continued moving his hands around his lap and waistband. McDole then reached into the right side of his waistband as if to grab something and began withdrawing his right hand, in which he held what the corporals believed to be a handgun. Silva, MacColl and Lynch each fired four shots at McDole from their service pistols. McDole fell to the ground and a responding officer approached him and removed from his waistband a handgun.
The incident was recorded in a cell phone video, which was enhanced at the FBI Laboratory. The video shows McDole continuously moving his hands around his waistband as WPD officers yell for him to show his hands and drop the gun. The camera pans away from McDole the instant before the shotgun blast. Toward the end of the video, McDole reaches into his waistband with his right hand, then begins pulling his right hand upward. A volley of shots is heard, but the camera pans away from McDole for a moment while the shots are being fired. Several law enforcement officers and civilians witnessed the shooting and the events leading up to it. These witnesses corroborated the claim of the corporals who fired at McDole that McDole failed to respond to law enforcement commands and continued moving his hands around his waistband when the shots were fired. The investigation also revealed that McDole’s DNA was located on the grip of the handgun recovered from his waistband and that there was gunshot residue was on McDole’s right palm and shirt sleeve.
There is insufficient evidence to disprove the corporals’ claims that they shot McDole in self-defense and in defense of nearby civilians and fellow officers. Other witnesses also corroborate Dellose’s claim that McDole was reaching into his side immediately before Dellose fired his shotgun, even though the video does not capture that precise moment. Accordingly, the government cannot disprove that Dellose saw a handgun or believed he saw a handgun. When Silva, MacColl and Lynch fired their weapons a few moments later, they had reason to believe that McDole had a gun that he had recently fired. They also knew that McDole had not responded to repeated commands to show his hands and drop the gun, was reaching into his waistband and was at that moment pulling his hand upward. The testimonial, video and physical evidence corroborates the corporals’ version of the events.
Accordingly, after extensive investigation into this incident, the federal review of this incident has been closed without prosecution. This decision is limited strictly to an application of the high legal standard required to prosecute the case under the federal civil rights statute; it does not reflect an assessment of any other aspect of the incident that led to McDole’s death.
The U.S. Attorney’s Office of the District of Delaware and the Civil Rights Division are committed to investigating allegations of civil rights violations by law enforcement officers and will continue to devote the resources required to ensure that all allegations of serious civil rights violations are fully and completely investigated. The department will aggressively prosecute criminal civil rights violations whenever there is sufficient evidence to do so.
Federal Jury Convicts Fort Hall Man of Second Degree MurderRead the Press Release
POCATELLO – Demetrius Gomez, 29, of Fort Hall, Idaho, was convicted yesterday by a federal jury in Pocatello of second degree murder, U.S. Attorney Wendy J. Olson announced. Gomez was charged by indictment on May 24, 2016.
to the evidence presented at trial, on May 9, 2016, Gomez shot and killed his cousin at a residence in Fort Hall, Idaho. The evidence showed that Gomez murdered the victim deliberately and intentionally at close range by a shotgun.
Sentencing is set for March 21, 2017, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello. Gomez faces up to life in prison, a maximum fine of $250,000, and up to three five of supervised release.
The case was investigated by the Federal Bureau of Investigation (FBI), Fort Hall Tribal Police and the Pocatello Police Department.
Dupree Man Sentenced for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Dupree, South Dakota, man convicted of Assault by Striking, Beating, and Wounding was sentenced on January 4, 2017, by U.S. Magistrate Judge Mark A. Moreno.
Kelly Gene Clown, age 41, was sentenced to 6 months in custody, 1 year of supervised release, and a $25 special assessment to the Federal Crime Victims Fund.
Clown was indicted by a federal grand jury on March 15, 2016, for Assault With a Dangerous Weapon. He pled guilty to Assault by Striking, Beating, and Wounding on October 4, 2016.
The conviction stemmed from an incident that took place near Thunder Butte on May 23, 2015, when Clown assaulted the victim by hitting and kicking him in the face.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Clown was ordered to self-report to the U.S. Marshals Service by January 20, 2017, to begin serving his sentence.
Doctor Sentenced to Probation, Community Service for Illegally Distributing Controlled Substance and Health Care FraudRead the Press Release
PITTSBURGH - A resident of Hermitage, Pennsylvania has been sentenced in federal court to three years’ probation, ordered to pay restitution in the amount of $15,695, a $6,000 fine and to serve 150 hours of community service focused on the amelioration of the opioid epidemic, on his conviction of possession with intent to distribute and distribution of Tramadol, a Schedule IV controlled substance, and health care fraud, Acting United States Attorney Soo C. Song announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Dr. Anthony Rossi, 66, of Hermitage, Pennsylvania.
According to information presented to the court, Rossi, a medical doctor, illegally distributed a controlled substance, Tramadol, for cash. Further, Dr. Rossi submitted false claims to Medicaid for health care services, including injections, which were never provided.
Assistant United States Attorney Robert S. Cessar prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Federal Bureau of Investigation, the Drug Enforcement Administration and the U.S. Department of Health and Human Services – Office of Inspector General for the investigation leading to the successful prosecution of Rossi.
District Man Sentenced to Eight Years in Prison for Shooting and Assault in Downtown WashingtonRead the Press Release
WASHINGTON – Ryan Matthews, 28, of Washington, D.C., was sentenced today to eight years in prison on charges stemming from an incident in which he shot one person and assaulted two others in downtown Washington, U.S. Attorney Channing D. Phillips announced.
Matthews pled guilty in October 2016, in the Superior Court of the District of Columbia to one count of assault with intent to kill, one count of possession of a firearm during a crime of violence, and two counts of assault. He was sentenced by the Honorable Michael Ryan.
According to the government’s evidence, on Sept. 10, 2016, at about 3:15 a.m., Matthews approached a complete stranger in the 1300 block of Connecticut Avenue NW and punched him in the abdomen; the victim fell to the ground. Two of the victim’s friends, who were standing nearby, confronted Matthews and asked why he had punched their friend. At this point, Matthews said words to the effect of, “Do you want a piece, too?” and swung at one of the men with his fist, striking him in the neck. A man who was nearby approached Matthews to ask about what happened and Matthews declared words to the effect of, “I guess you want to fight, too.”
Matthews then beckoned the man to approach him, and the man told Matthews to come to him instead. At this point, Matthews drew a semi-automatic pistol, walked toward the man, and shot him once at close range in the right side of the chest. Other individuals, who were nearby at the time of the shooting, pursued Matthews and flagged down police officers. Matthews, meanwhile, discarded his shirt as he ran away and threw his gun into a dumpster in an alley off 18th Street NW. Police apprehended him and recovered the weapon. The shooting victim was taken to a hospital and is continuing to recover from his injuries.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who responded to the crime and investigated the case from the Metropolitan Police Department’s Second District. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Diana Lim and Assistant U.S. Attorney Michael J. Romano, who investigated and prosecuted the matter.
District Man Sentenced to 18 Months in Prison for Stealing Package Off Doorstep, Violating Court OrderRead the Press Release
WASHINGTON – A man with a history of theft convictions was sentenced today to 18 months in prison for stealing a package last summer from a residence in the DuPont Circle area of Northwest Washington and then violating a court order to stay out of the neighborhood pending trial, U.S. Attorney Channing D. Phillips announced.
Wayne Bridgeforth, 60, of Washington, D.C., pled guilty in October 2016, in the Superior Court of the District of Columbia, to charges of second-degree theft, with a felony enhancement, and felony contempt. He was sentenced by the Honorable Neal E. Kravitz, who also ordered that Bridgeforth get drug and mental health treatment. Following his prison term, Bridgeforth will be placed on three years of supervised release, during which time he must stay away from the area where his crimes took place.
Bridgeforth has a history of stealing mail since at least 1984 and has nine previous convictions for theft-related offenses.
According to the government’s evidence, on July 25, 2016, at about 4:45 p.m., a man who was walking his dog saw an individual, later identified as Bridgeforth, take a package off of the stoop of a residence in the 1500 block of Q Street NW. The man followed Bridgeforth and told him to drop the package or he would call the police. Bridgeforth dropped the package and ran. The package contained a camera, which was not damaged in the incident.
Officers with the Metropolitan Police Department later determined that Bridgeforth had been seen in the neighborhood for the past seven months. On Aug. 10, 2016, officers observed Bridegeforth in the 1600 block of Church Street NW and placed him under arrest. Bridgeforth admitted to stealing packages and also wrote a letter of apology to the victim of the July 25 theft. Following his arrest, Bridgeforth was released from custody pending further court proceedings, with an order to stay away from the neighborhood including DuPont Circle. He violated that order and was once again in the area on Sept. 7, 2016, leading to the contempt charge.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the efforts of those who handled the case for the U.S. Attorney’s Office, including Assistant U.S. Attorney Alysa Kociuruba, who prosecuted the matter.
Corpus Christi Man Convicted of Production of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 29-year-old Corpus man has entered a guilty plea to two counts of production of child pornography, otherwise known as sexual exploitation of a child, announced U.S. Attorney Kenneth Magidson.
Authorities identified Mark Anthony Hamauei as the perpetrator of a sexual assault of two juvenile females in July 2016.
A search warrant was executed at his residence and in his vehicle, at which time authorities seized various electronic devices. A forensic analysis on those devices led to the discovery of two videos of the young victims that were sexually explicit in nature. Law enforcement also located more than 1,400 images and 230 videos of child pornography.
U.S. Magistrate Judge B. Janice Ellington accepted the guilty plea today. Sentencing is set before U.S. District Judge Nelva Gonzales Ramos on May 3, 2017. At that time, Hamauei faces a minimum of 15 and up to 30 years in federal prison and a possible $250,00 maximum fine on each count. Upon completion of any prison term imposed, Hamauei also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
Hamauei was arrested on federal charges in October 2016 and has been in custody since that time where he will remain pending his sentencing hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Corpus Christi Police Department—Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Cleveland man indicted on child pornography chargesRead the Press Release
Brian C. Keeling, 34, of Cleveland, charged with advertising, receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said U.S. Attorney Carole S. Rendon.
Keeling knowingly made and caused to be made a notice and advertisement seeking and offering to receive, exchange, display and distribute any visual depiction of a real minor engaged in sexually explicit conduct, and such notice and advertisement were transported using any means and facility of interstate and foreign commerce and in and affecting interstate and foreign commerce by any means including by computer. Keeling also knowingly received and distributed, using any means and facility of interstate and foreign commerce, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct, and which files had been shipped and transported in and affecting interstate and foreign commerce, according to the indictment.
The indictment also charges that on or about December 6, 2016, Keeling possessed a ZTE cellular phone and a Samsung Galaxy Tablet, each of which contained child pornography.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan following an investigation by the Cleveland office of the Department of Homeland Security, Homeland Security Investigations.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cheektowaga Man Pleads Guilty to Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Robert Acker, 34, of Cheektowaga, NY, pleaded guilty to possession of child pornography before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that on September 1, 2016, the Federal Bureau of Investigation’s Violent Crimes Against Children Task Force executed a search warrant at the defendant’s residence and seized several electronic devices and DVD’s. Forensic examination determined that Acker was in possession of more than 7,000 images of child pornography, some of which depict prepubescent children less than 12 years of age, and some of which depict images of violence.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Sentencing is scheduled for April 20, 2017, at 9:00 a.m. before Judge Vilardo.
Career Offender from Clovis Sentenced to 77 Months for Selling 20 Grams of Heroin to Undercover AgentsRead the Press Release
ALBUQUERQUE – Shannon Lamont Jackson, 38, of Clovis, N.M., was sentenced yesterday to 77 months in federal prison followed by three years of supervised release for his heroin trafficking conviction.
Jackson, a career offender whose criminal history includes felony convictions for drug trafficking and violent crimes, was prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior felony convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible
Jackson was arrested on Dec. 3, 2015, on an indictment charging him with distributing heroin on Sept. 6, 2015, in Bernalillo County, N.M. On Oct. 19, 2016, Jackson pled guilty to the indictment and admitted that in Sept. 2015, he negotiated the sale of approximately 20 grams of heroin with undercover FBI agents.
This case was investigated by the Albuquerque office of the FBI and the Bernalillo County Sheriff’ Office. Assistant U.S. Attorney Shana B. Long prosecuted the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Canton woman indicted for stealing $100,000 from Tennessee man through bogus sweepstakes schemeRead the Press Release
A Canton woman was indicted on charges that she defrauded a Tennessee man out of more than $100,000 after falsely telling him he won a $3 million sweepstakes but had to pay taxes and fees up front, U.S. Attorney Carole S. Rendon said.
Lashell Patton, 42, was indicted on one count of conspiracy to commit wire fraud.
Patton and others falsely told a Tennessee man that he won $3 million in a sweepstakes. They convinced the victim that he needed to pay taxes and fees associated with the sweepstakes up front, and instructed the victim to wire money to Patton in Canton, according to the indictment.
The victim sent 15 Western Union money wires to Patton totaling $11,615 and 111 MoneyGram money wires to Patton totaling $90,090. This took place between July 2015 and April 2016, according to the indictment.
“This defendant preyed upon a vulnerable victim and took advantage of his trust,” Rendon said. “She now will be held accountable for her actions.”
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Henry F. DeBaggis following an investigation by the Internal Revenue Service.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
California Heroin and Fentanyl Traffickers SentencedRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan today sentenced Luis Sandoval (34, Los Angeles, CA) and Miguel Sandoval (35, Inglewood, CA) to six years and three months in federal prison for conspiracy to distribute a kilogram or more of heroin. Miguel Sandoval pleaded guilty on August 22, 2016, and Luis Sandoval pleaded guilty on September 19, 2016.
According to court documents, during January 2016, a task force comprised of narcotics detectives from the Jacksonville Sheriff’s Office (JSO) and special agents from the Drug Enforcement Administration (DEA) and the Federal Bureau of Investigation (FBI) began investigating a significant heroin supplier based in Jacksonville. Agents and detectives intercepted and arrested the supplier, who had flown to Los Angeles and returned to Jacksonville aboard a Greyhound bus. The supplier was transporting one kilogram of heroin in his luggage, which was seized during the operation. As a result, law enforcement contacted the Sandoval brothers and arranged for the purchase of a kilogram of heroin and fentanyl in Los Angeles.
On April 20, 2016, JSO detectives, DEA and FBI agents from Jacksonville, and law enforcement officers from Los Angeles arrested the Sandoval brothers near Miguel’s home in Inglewood. A search warrant was executed at the home and law enforcement officers located more than a kilogram of fentanyl and a kilogram of heroin.
This case was investigated by the JSO, the DEA, and the FBI. It was prosecuted by Assistant United States Attorney Frank Talbot.
Brunswick man indicted for having child pornographyRead the Press Release
Scott M. Wroten, 53, of Brunswick, was charged with receiving and possessing visual depictions of minors engaged in sexually explicit conduct, said Carole S. Rendon, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about May 20, 2011 through on or about August 29, 2016, Wroten knowingly received numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct. The indictment also charges that on or about April 19, 2016, Wroten possessed a Lenovo computer which contained child pornography. The indictment also charges that on or about August 29, 2016, Wroten possessed a Dell computer, seven USB storage devices and nine external hard drives, each of which contained child pornography.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan following an investigation by the Cleveland office of the Department of Homeland Security, Homeland Security Investigations, the Ohio Internet Crimes Against Children Task Force, the Wickliffe Police Department and the Brunswick Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Barbour County woman pleads guilty to methamphetamine distributionRead the Press Release
ELKINS, WEST VIRGINIA – Geniece Pancake, 36, of Belington, West Virginia, was convicted of methamphetamine distribution today, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Pancake pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Methamphetamine.” She faces up to twenty years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crime Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Baltimore Felon Exiled to 8 Years in Federal Prison for Illegal Possession of a Gun and Heroin DistributionRead the Press Release
Baltimore, Maryland – Late yesterday, U.S. District Judge George L. Russell III sentenced Adrian Donte McFadden, age 23, of Baltimore, Maryland, to eight years in prison, followed by three years of supervised release, for possession with intent to distribute heroin and for possession of a firearm by a convicted felon.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore Police Commissioner Kevin Davis; and Baltimore City State’s Attorney Marilyn Mosby.
According to his guilty plea, on August 12, 2015, McFadden was selling heroin in the courtyard of a public housing area owned by Baltimore City. The area was marked as a “no trespassing” area, and there was a playground near the courtyard. McFadden had a plastic bag with 106 gel capsules of heroin hidden in a hollowed fencepost near the playground at the intersection between May Court and North Spring Court. McFadden kept a .38 caliber, loaded with 5 hollow point .38 caliber bullets, approximately 60 feet away from the heroin stash. He hid the gun on the ground at the base of a tree near the playground. On at least two occasions, McFadden left the courtyard to walk to the tree where he hid the revolver, bending down to check that the revolver was still there. Baltimore Police officers saw McFadden sell two gelcaps of heroin to an individual in exchange for cash. After recovering the gelcaps from the individual, the officers arrested McFadden.
Baltimore City Police arrested McFadden and recovered 3 Oxycontin pills from McFadden’s pants pocket. Police also recovered 106 gelcaps of heroin, weighing 15.38 grams, from the fencepost. After being advised of his rights, McFadden directed officers to the tree where he had hidden the .38 caliber revolver, which police recovered.
As a result of McFadden’s previous felony convictions, it was illegal for him to possess a firearm or ammunition.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Matthew J. Maddox, who prosecuted the case.
Apex Man Sentenced to 21 Years for the Manufacture of Child PornographyRead the Press Release
NEW BERN – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court on January 4, 2017, United States District Judge Louise W. Flanagan sentenced ANGEL GUERRERO-URIEL, 24, from Apex, N.C., to 252 months in prison and 5 years of supervised release for the Manufacture of Child Pornography (CP). GUERRO-URIEL pled guilty to the charge on July 13, 2015.
In October 2015, the Federal Bureau of Investigation Child Exploitation Task Force (FBICETF) in Raleigh, North Carolina, received a cybertip from the National Center for Missing and Exploited Children (NCMEC) which indicated that images of child sexual exploitation had been uploaded on a social networking website which allows users to share photos, videos, and music. Additionally, the email address and Internet Protocol address (IP address) for the suspect was captured and provided to authorities. The subscriber to that IP address was identified.
Between September 20, 2015, and October 1, 2015, the suspect uploaded 47 files that portrayed child erotica and child sexual exploitation.
On December 15, 2015, the Apex Police Department in Apex, North Carolina, and the FBICETF executed a search warrant at the residence. Agents made contact with ANGEL GUERRERO-URIEL at the residence at which time he provided a statement and consented to a preliminary examination of his cellular phone. Specifically, GUERRERO-URIEL indicated that he lived at the address. Agents subsequently located GUERRERO-URIEL’s phone and a preliminary examination revealed a video of two minor males taking a shower; however, the video did not rise to the level of child pornography (CP). Nonetheless, the defendant acknowledged surreptitiously recording Victim 1, age 7, and Victim 2, age 8, in the shower on December 4, 2015. GUERRERO-URIEL advised that the victims frequently visited his residence because he was a longtime friend of their mothers. However, the defendant acknowledged maintaining iCloud and Dropbox accounts linked to his phone which contained images of CP, as well as the shower video he produced. As the preliminary examination of GUERRERO-URIEL’s phone continued, agents located a video which depicted the molestation of a child. The defendant acknowledged producing the video. GUERRERO-URIEL acknowledge producing two videos which depicted the sexual molestation of Victim 1.
A complete forensic examination of the defendant’s phone, computer equipment, and media storage accounts uncovered at least 85 images and 29 videos depicting CP; however, these images and videos were not manufactured by the defendant. Based on the investigation, GUERRERO-URIEL manufactured CP by filming himself sexually molesting Victim 1, a 7-year-old child, while acting as the child’s baby sitter/guardian. Furthermore, GUERRERO-URIEL produced child pornography on at least three occasions and engaged in prohibited sexual acts with Victim 1 on at least two occasions.
The case was investigated by the Federal Bureau of Investigation Child Exploitation Task Force (FBICETF) in Raleigh and the Apex Police Department. The federal prosecution was handled by Assistant United States Attorney Ethan A. Ontjes.
Amherst man indicted for November bank robberyRead the Press Release
A federal grand jury indicted Adam Carson, 34, of Amherst, on bank robbery charges, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
The indictment alleges that on or about November 21, 2016, Carson, by force, violence, and intimidation, took approximately $5,590 from the person and presence of a teller at Chemical Bank, 1977 Cooper Foster Park Road in Amherst.
The Amherst Police Department and the Federal Bureau of Investigation conducted the investigation. The case is being prosecuted by Assistant U.S. Attorney Ranya Elzein.
If convicted, the court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Albuquerque Resident Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Francisco Garcia, 19, of Albuquerque, N.M., pled guilty today in federal court to violating the federal firearms laws under a plea agreement with the U.S. Attorney’s Office.
Garcia was arrested during an ATF-led investigation that resulted in the filing of 59 federal indictments and one federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. The investigation began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Garcia was arrested on July 8, 2016, and charged by indictment with firearms and drug trafficking offenses. The indictment was subsequently superseded on July 28, 2016, and charged Garcia with distribution of methamphetamine on May 10, 2016 and May 12, 2016, and using and carrying a firearm in relation to a drug trafficking crime. The indictment included forfeiture provisions requiring Garcia to forfeit $1,440 to the United States.
During today’s proceedings, Garcia pled guilty to using and carrying a firearm in relation to a drug trafficking crime. In entering the guilty plea, Garcia admitted that on May 12, 2016, he possessed a firearm during the sale of methamphetamine to an undercover law enforcement agent. Garcia further admitted carrying the firearm for protection and to assist him in his drug trafficking crimes. At sentencing, Garcia faces a statutory minimum penalty of five years in federal prison. A sentencing hearing has yet to be scheduled.
To date, 20 of the 104 defendants have entered guilty pleas and one has been sentenced. The remaining defendants have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The case was investigated by the Albuquerque offices of ATF. Assistant U.S. Attorney Rumaldo R. Armijo is prosecuting the case.
Thursday 5 January 2017
Utah Businessman Indicted for Tax EvasionRead the Press Release
A federal grand jury sitting in Salt Lake City, Utah, returned an indictment yesterday charging Peter N. Nordberg, a former resident of Draper, Utah, with tax evasion, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney John W. Huber for the District of Utah.
According to the indictment, Nordberg was the Chief Executive Officer of Max International, a company that produces and markets nutritional supplements directly and through independent associates and distributors. As an employee of Max International, Nordberg earned a salary and commissions equal to a percentage of sales. The indictment alleges that during 2009 and 2010, Nordberg used a nominee entity that he registered in Delaware to conceal his receipt of commissions from Max International and filed false individual income tax returns that failed to report his commission income.
If convicted, Nordberg faces a statutory maximum sentence of five years in prison for each count, as well as a period of supervised release, restitution and monetary penalties.
An indictment is not a finding of guilt. It merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Huber thanked agents of Internal Revenue Service–Criminal Investigation, who conducted the investigation, and Trial Attorney Matthew R. Hoffman of the Tax Division and AUSA Ruth Hackford-Peer of the District of Utah, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
U.S. Attorney Patrick Miles Announces Departure at End of Obama AdministrationRead the Press Release
GRAND RAPIDS — Patrick A. Miles, Jr., U.S. Attorney for the Western District of Michigan, today announced his resignation effective noon on January 20, 2017. He informed President Barack Obama and Attorney General Loretta E. Lynch of his decision yesterday Wednesday, January 4. “I am extremely blessed and grateful for the opportunity to serve the public in this capacity over the past four and a half years,” Miles, 49, said in a statement. “It’s been an honor and a privilege to lead such an outstanding team of crime-fighters and people who work hard every day to protect the interests of America and its citizens.”
“Since 2012, Patrick A. Miles, Jr. has served the Western District of Michigan -- and the American people -- with distinction and honor,” said Attorney General Loretta E. Lynch. “Under his leadership, the district successfully stepped up its efforts to prosecute those who exploit the most vulnerable members of our society, commit violent crimes, or defraud taxpayers. Patrick also asserted leadership in reducing recidivism through programs that help returning citizens find jobs and obtain social services. During his term, Patrick's office hosted the first-ever job fair for returning citizens. And Patrick worked hard to strengthen his community -- from forging strong channels of communication between community members and law enforcement officers, to educating local parents and physicians about prescription drug and opioid abuse. I want to thank Patrick for his tireless devotion to the cause of justice, and I wish him the very best in the next chapter of his career.”
Miles became U.S. Attorney for the Western District of Michigan on July 9, 2012 after 21 years in private law practice in Grand Rapids as a business attorney. He assessed the strengths and potential of the office through individual meetings with each of the 37 assistant U.S. attorneys and federal judges in Michigan’s Western District as well as meetings with the U.S. Attorney’s Office’s 45 staff members. After those meetings, Miles took the following first-ever actions for the Office:
- Reorganized the Office’s Criminal Division into four sections -- Organized Drug Crimes, Violent Crimes, Financial Crimes, and National Security -- to streamline management and prosecutorial decisions;
- Created several new task forces for his federal prosecutors to team with law enforcement agents and officers to develop cases proactively;
- Placed each Assistant U.S. Attorney in at least one proactive task force or unit handling reactive cases; and
- Implemented an annual strategic planning process at each level in the office that established specific goals and accountability.
“We get tremendous results in this Office and every day it feels like we make a positive difference,” Miles stated. “From the start of my tenure as U.S. Attorney I focused on protecting the vulnerable and taxpayers. That is why we put more emphasis on preventing and prosecuting cases of children being exploited through pornography or sex trafficking, seniors being targeted by financial scammers, and those who commit fraud against the government and our health care system.” Some criminal prosecution highlights during his tenure include the following:- The Western District’s first-ever child sex trafficking federal prosecution occurred in 2014 against Eddie Jackson. Jackson was convicted of sex trafficking three teenage girls and received a 30-year federal sentence. Since then, Miles’s office has prosecuted 11 defendants for sex trafficking minors.
- Over the past four years Miles’s child exploitation prosecution team obtained 106 convictions involving the sexual exploitation of children using the internet, resulting in over 1,700 aggregate years of federal sentences.
- Evan Knoll received a 17-year federal sentence in 2012 for defrauding over $82 million from the U.S. government and banks.
- Kim Mulder, the former CEO of Kentwood Pharmacy, conspired to commit a $79 million healthcare fraud based on billing Medicare Part D plans, Medicaid and private insurance plans for misbranded and adulterated drugs and received a 10-year federal prison sentence in 2015.
Combating Gang and Group Violence
Miles also said he prioritized addressing violent crime with locally-tailored strategies. “We changed our approach to reducing violent crime in our seven urban cities of Battle Creek, Benton Harbor, Holland, Grand Rapids, Kalamazoo, Lansing, and Muskegon Heights by forming violent crime reduction task forces in 2013 to work with federal, state and local law enforcement to continuously identify and prioritize for federal prosecution the people, groups, and gangs causing the most neighborhood shootings and disruptions,” Miles stated.
Miles said he was particularly satisfied by the 2013 federal indictment against 31 members and associates of the Holland Latin Kings gang wiping out the criminal enterprise that had caused many problems for over a decade in Holland, Michigan. His office obtained 31 convictions for a range of offenses, including conspiring to engage in racketeering, possessing firearms and conspiring to distribute cocaine and marijuana which resulted in a total of 340 years of federal prison sentences.
Effective Prisoner Re-Entry
Miles highlighted the emphasis he placed on effectively returning citizens from prison to their community as a crime reduction strategy. “Nationally, two-thirds of those released from prison will be re-arrested within three years. In Michigan, we have about a 30 percent rate of recidivism. With 800,000 Americans being released from prison annually, we must get that recidivism rate lower.” In 2014, Miles introduced the “Facing Choices” program where he and the County Prosecutor, Sheriff, a Federal Bureau of Alcohol, Tobacco, and Firearms agent, and local Chief of Police in each of the seven urban cities in the Western District address a group of recent Michigan Department of Corrections parolees and give them a “tough love” speech of warning and encouragement and steer them to social services agencies for assistance.
Miles’s U.S. Attorney’s Office hosted its first-ever job fair in September 2016 where approximately 200 returning citizens connected with about 20 employers in Grand Rapids. “Employment is crime prevention,” Miles noted. “If a prison sentence results in a life-time ban on employment, then people will likely return to criminal activity. I’m not calling for a preference to hire those with a criminal record, I’m just asking employers not to rule someone out automatically if the past offense is not related to the job opening.”
Police-Community Relations
“Improving the relationship between law enforcement and community members was very important to me from the outset as U.S. Attorney,” Miles noted. Since becoming U.S. Attorney Miles co-chaired the Grand Rapids chapter of Advocates & Leaders for Police and Community Trust (ALPACT) group which started in 2012 and consists of local community leaders from different backgrounds who meet regularly with federal, state, and local law enforcement agents and officers to discuss a variety of topics. He also helped form and supported ALPACT groups in Battle Creek, Benton Harbor, Holland, Kalamazoo, and Lansing. “We need trust between community and law enforcement to prevent and address shared problems. It’s difficult to develop trust in a crisis situation. It takes communication for a relationship, and it takes a relationship to develop trust,” Miles noted.
In the fall of 2014 Miles began meeting with law enforcement leaders in Berrien, Calhoun, Ingham, Kalamazoo, Kent, Muskegon, and Ottawa Counties to discuss their protocols and best practices before, during, and after an officer-involved shooting. “We are blessed overall with very professional police departments. I encourage police community outreach at the top and on the streets not only to influential community leaders from the Generation X and Baby Boom generations, but also to those in the Millennial Generation who have significant local social media followings.”
Hiring Veterans
The first prosecutor Miles hired in 2012 as U.S. Attorney was a Major in the U.S. Army who served in Baghdad, Iraq and Guantanamo Bay, Cuba. As U.S. Attorney, Miles also hired the Office’s Administrative Officer, Human Resources Officer, Budget Officer, and his executive assistant who are all U.S. Army or National Guard veterans. Miles received a 2013 Patriot Award from the Employer Support of the Guard and Reserve Committee for his hiring and support of reservists and veterans.
Miles’s Office hosted the local ceremony in 2012 where four members of the Montford Point Marines, who were not able to travel to Washington, DC for their award, received their Congressional Gold Medals. Montford Point Marines were the first African American Marines and served in World War II.
Community Outreach and Education
In 2015, Miles and his Office developed and launched an educational program called Justice Scholars at Gerald R. Ford Middle School in Grand Rapids for 7th grade students to learn about the American criminal justice system from law enforcement agents and officers, prosecutors, defense attorneys, judges, and probation and parole officers. For one hour each month during the school year the class receives a lesson from a professional about each step in the criminal justice process as well as that career. In the final session, the class conducts a mock trial with instruction from attorneys in a federal courtroom with a judge presiding. Justice Scholars expanded to Lansing Middle Schools in 2016.
Miles, along with the U.S. Attorney for the Eastern District of Michigan and the State Attorney General, organized Michigan’s first-ever Prescription Drug Awareness Summit in 2013 which was held in Lansing. Widely attended by law enforcement, education and medical professionals, the Summit raised awareness of prescription pain killer drug diversion and addiction and of various programs and initiatives responding to the epidemic. The increasing use of opioid pain killers is also feeding the heroin epidemic so Miles and his Office are actively educating parents, physicians, and the public about those risks and dangers as well as prosecuting healthcare providers who prescribe drugs illegally in addition to prosecuting illegal drug trafficking organizations.
Background
President Obama nominated Grand Rapids native Miles to serve as U.S. Attorney for the Western District of Michigan on March 29, 2012, and Miles was confirmed unanimously by the U.S. Senate on June 29, 2012. Prior to his presidential appointment Miles, a 1991 Harvard Law School graduate, was a partner based in Grand Rapids with a large, national law firm. Miles, who served as president of the Grand Rapids Bar Association from 2004 to 2005, was the Democratic nominee for Michigan’s Third District Congressional seat in 2010. He did not announce his future career plans, only stating, “I’m looking forward to the next challenge, whatever that may be.”
The U.S. Attorney’s Office for the Western District of Michigan has 38 attorneys and a total staff of 83 with offices in Grand Rapids, Lansing, and Marquette. The district covers 49 counties, including Michigan’s entire Upper Peninsula. The Office’s immediately prior presidentially-appointed U.S. Attorney was Margaret Chiara who was appointed by President George W. Bush and served from October 2001 until March 2007.
For additional information on the accomplishments of the U.S. Attorney’s Office for the Western District of Michigan under the direction of U.S. Attorney Miles, please refer to the Year in Reviews for years 2012, 2013, 2014 and 2015:
https://www.justice.gov/usao-wdmi/year-review
END
Two defendants plead guilty for roles in Boone County heroin conspiracyRead the Press Release
CHARLESTON, W.Va. – A Detroit man and a Boone County woman pleaded guilty today to federal drug crimes, announced United States Attorney Carol Casto. Daymeon Damar Johnson, 31, entered his guilty plea to conspiracy to distribute heroin. Joyce Ann Zornes, 33, of Seth, pleaded guilty to aiding and abetting the distribution of heroin.
Johnson and Zornes admitted that they both took part in a conspiracy to distribute heroin in Boone County. Johnson admitted that from 2013 to August 2016, he ordered heroin from his supplier, arranged to get the drugs to Boone County, and distributed the heroin to drug users and other drug dealers. Zornes admitted that from May 2015 to August 2016, she transported heroin from Detroit to Boone County for distribution. Zornes additionally admitted that she used her residence in Seth to distribute heroin.
Johnson also admitted that he traded drugs for guns. One such gun was a KBI, Inc. SKS-45, 7.62 x 39 caliber semiautomatic rifle, which Johnson agreed to sell on March 25, 2016, in order to raise bail money for Zornes, who had been arrested in Jackson County. Johnson gave the gun to an individual who sold the firearm to an informant working with the U.S. 119 Task Force.
Johnson and Zornes further admitted that on August 1, 2016, they worked together to sell heroin to an informant working with the U.S. 119 Task Force. Zornes admitted that the drug deal took place at her residence, and that she took the informant’s money while Johnson distributed the heroin. On August 3, 2016, the U.S. 119 Task Force executed a search warrant at Zornes’ residence. Johnson and Zornes were both present when agents seized heroin, prescription drugs, cash, scales, and ammunition. On August 9, 2016, the U.S. 119 Task Force executed another search warrant at Zornes’ residence based on information from a phone call Zornes had placed from South Central Regional Jail. Agents recovered additional heroin, prescription drugs, and cash that included $90.00 in prerecorded buy money from the August 2, 2016, controlled purchase of heroin.
Johnson and Zornes each face up to 20 years in federal prison. Johnson is scheduled to be sentenced on April 4, 2017. Zornes is scheduled to be sentenced on March 30, 2017.
The U.S. 119 Task Force conducted the investigation. Assistant United States Attorney Joshua C. Hanks is in charge of these prosecutions. The plea hearings were held before United States District Judge Joseph R. Goodwin.
These cases are part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Two Members of Taos County-Based Heroin Trafficking and Money Laundering Ring Enter Guilty PleasRead the Press Release
ALBUQUERQUE – Two more members of a Taos County-based heroin and money-laundering ring have entered guilty pleas in federal court in Albuquerque, N.M. Elena Carabajal, 26, of Taos County, N.M., entered a guilty plea yesterday to a heroin trafficking charge, and Wilma Romero, 66, of Arroyo Hondo, N.M., pled guilty today to heroin trafficking and money laundering charges. Carabajal and Wilma Romero are two of nine defendants charged with heroin trafficking and money laundering offenses as the result of a 15-month DEA-led multi-agency investigation into a heroin trafficking organization led by Ivan Romero, 40. To date, six of the nine defendants have entered guilty pleas.
Wilma Romero and seven co-defendants initially were charged with heroin trafficking and money laundering offenses in an eight-count indictment filed in Dec. 2015. The indictment was superseded in Feb. 2016 to add Carabajal as a ninth defendant and five additional charges. The superseding indictment charged Carabajal, Wilma Romero, Ivan Romero, Ricco Romero, 29, and five other defendants with conspiring to distribute heroin from at least June 2012 through Dec. 2015. It also charged Ivan Romero, Ricco Romero, Melissa Romero, 37, and Wilma Romero with conspiring to launder heroin trafficking proceeds. The superseding indictment also included substantive heroin trafficking and firearms charges against specific defendants including Carabajal, as well as forfeiture provisions seeking forfeiture to the United States of any and all assets and property derived, either directly or indirectly, from proceeds obtained from the criminal activities charged.
Carabajal pled guilty yesterday to possessing heroin with intent to distribute, and admitted helping Ricco Romero distribute heroin. She also acknowledged that on Dec. 18, 2015, law enforcement agents seized $69,752 in cash and approximately 95.8 grams of heroin while executing a federal search warrant at the residence she shared with Ricco Romero, the couple’s vehicles and safes. Under the terms of her plea agreement, Carabajal will be sentenced to not more than 30 months in prison followed by a term of supervised release to be determined by the court. A sentencing hearing has yet to be scheduled.
Today Wilma Romero entered a guilty to the money laundering conspiracy charge and a heroin trafficking charge. Under the terms of her plea agreement, Wilma Romero will be sentenced to not more than 24 months in prison followed by a term of supervised release to be determined by the court.
Four of their co-defendants previously entered guilty pleas in the case. On Dec. 5, 2016, Ivan Romero pled guilty to Counts 1 and 2 of the superseding indictment, charging him with participating in a heroin trafficking conspiracy and a money laundering conspiracy. Ricco Romero also pled guilty on Dec. 5, 2016, to participating in a heroin trafficking conspiracy and a money laundering conspiracy, and to possessing firearms in furtherance of his drug trafficking activities. Melissa Romero entered a guilty plea on Dec. 8, 2016, to Count 2 of the superseding indictment, charging her with participating in a money laundering conspiracy. Tyler Baker, 45, of Taos County, N.M., entered a guilty plea in October 2016.
According to the admissions contained in the plea agreements of the defendants who have entered guilty pleas as well as other court filings, Ivan Romero was the leader of a heroin trafficking organization based in Taos County. Ivan Romero and his brother Ricco Romero were responsible for purchasing quantities of heroin from suppliers in Albuquerque and Los Lunas, N.M. Other members of the organization acted as couriers and regularly transported large quantities of heroin to Ivan Romero and Ricco Romero in Taos County. Upon receiving the bulk heroin, Ivan Romero and Ricco Romero prepared the heroin for distribution by mixing or “cutting” it with other substances, repackaged it in smaller portions, and distributed it both directly and through a network of other drug dealers.
On April 2, 2015, law enforcement officers executed a state search warrant at Ivan Romero’s residence where they seized drug paraphernalia, 461 grams of marijuana, 30 grams of hashish, more than 300 grams of heroin and $64,920 in cash. Ivan Romero was arrested on state charges that day, and Ricco Romero subsequently assumed a greater managerial role in the heroin trafficking organization at that time.
Following Ivan Romero’s arrest on April 2, 2015, a state court set his bond at $90,000. Wilma Romero, Ricco Romero and Melissa Romero conspired to launder $90,000 in heroin proceeds to post that bond and secure Ivan Romero’s release from state custody. Ivan Romero soon violated the conditions of his release, was remanded back to state custody and a second bond was set at $150,000. In May 2015, Wilma Romero, Ricco Romero and Melissa Romero again conspired to launder an additional $150,000 in heroin proceeds to post that bond
On June 29, 2015, law enforcement agents executed a federal search warrant at Wilma Romero’s residence. In the course of that search, agents seized approximately 97.5 grams of heroin, a small amount of marijuana, drug paraphernalia, $73,288 and gold coins.
On Nov. 17, 2015 and Dec. 1, 2015, Ricco Romero distributed heroin to an individual working with law enforcement agents. Thereafter, on Dec. 18, 2015, law enforcement agents obtained and executed a federal search warrant at Ricco Romero and Carabajal’s residence and Wilma Romero’s residence as well as at another residence where Ricco Romero and Carabajal maintained a safe. During those searches, agents seized 96.8 grams of heroin, $70,562 in cash, and two firearms.
If the plea agreements are accepted by the court, Ivan Romero will be sentenced to a prison term within the range of 120 to 144 months, Ricco Romero will be sentenced to a 120-month prison term, and Melissa Romero will be sentenced to a term of probation. Pursuant to their plea agreements, Ivan Romero, Ricco Romero, Melissa Romero and Carabajal have agreed to forfeit $431,870 in heroin proceeds and firearms to the United States.
The investigation leading to the indictment was conducted by the Albuquerque office of the DEA, the HIDTA Region III Drug Task Force, New Mexico State Police, Taos Police Department, Taos County Sheriff’s Office and the Bureau of Alcohol Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Timothy S. Vasquez is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.