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22 February 2017
Orlando Woman Sentenced to Federal Prison for Scheme to Evade Workers’ Compensation Requirements for Undocumented Aliens Working in Construction IndustryRead the Press Release
Jacksonville, Florida – U.S. District Judge Henry Lee Adams, Jr. has sentenced Orquidea Quezada (48, Orlando) to 18 months in federal prison for wire fraud and for operating as an unlicensed money transmitter. The Court ordered her to forfeit $136,886 in cash that was seized when she was arrested, $60,178.91 that was seized from her bank accounts, and a 2013 Honda Accord, valued at $11,500, that she had used while committing the offenses. The Court also entered a money judgment against Quezada in the amount of $584,435.09, representing the proceeds of the criminal conduct less the amount previously seized, and she was further ordered to pay restitution to AIG Insurance in the amount of $18,603.24.
Quezada pleaded guilty on September 28, 2016.
According to court documents, between May 2013 and May 2016, Quezada, doing business as Orquicely Construction, LLC, applied for workers’ compensation insurance policies to cover two to seven employees and an annual payroll of approximately $100,000. The insurance companies issued the policies for annual premiums based on the payroll information disclosed in the applications.
Under Florida law, any business that engages in construction work must secure and maintain workers’ compensation insurance and the failure to do so is a felony. Construction contractors must require subcontractors to provide proof that they have workers’ compensation insurance.
Quezada then “rented” the insurance policies to numerous construction subcontractors who employed hundreds of workers, many of whom were undocumented aliens. To do so, she directed her insurance agent to e-mail the subcontractors a certificate of insurance that the insurance would cover their workers. The subcontractors wrote payroll checks to Orquicely Construction for work performed by their employees. Quezada then cashed those checks and paid the subcontractors’ employees in cash, through work crew leaders. Quezada kept five percent of each check as a fee for her services. Between May 2013 and November 2015, Quezada funneled about $17.4 million through her company to the subcontractors’ employees.
Neither Orquicely Construction nor the subcontractors deducted state or federal taxes, such as for Medicare and Social Security, from the workers’ pay. The scheme allowed the subcontractors to avoid these taxes and workers’ compensation taxes, and to conceal their employment of undocumented aliens that were working illegally in the United States.
“This sentencing is the result of HSI’s combined investigative expertise in financial crimes and worksite enforcement,” said Susan L. McCormick, special agent in charge of HSI Tampa. “HSI special agents will continue to identify, disrupt, and eliminate the criminal schemes used to exploit our financial industry and to garner profit from the labor of undocumented aliens. HSI’s continued partnership with agencies such the Florida Department of Financial Services, Division of Investigative & Forensic Services greatly enhances our ability to successfully identify and prosecute these criminal organizations.”
"Employers who attempt to evade the law and fail to provide workers' compensation coverage leave their employees vulnerable to extraordinary costs in the event of an on-the-job injury," said Florida Chief Financial Officer Jeff Atwater. "Not only are employees left at risk, but when bad actors save thousands by not paying for insurance policies, they can skew the competitive market by bidding on projects at a much cheaper rate—making it difficult for the law-abiding employers to win job contracts. I applaud the collaborative efforts of our federal, state, and local law enforcement partners who work day in and day out to ensure the bad actors within the construction industry are held accountable for their crimes."
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (Jacksonville and Orlando), the Internal Revenue Service – Criminal Investigation, and the Florida Department of Financial Services Division of Investigative and Forensic Services. It was prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Northern Michigan Woman Sentenced to 70 Months in Prison in Multi-Million Dollar Investment SchemeRead the Press Release
Sarah Bolhuis Ordered to Repay $5,225,854.41 to 53 Victims
GRAND RAPIDS, MICHIGAN — Acting U.S. Attorney Andrew Birge announced today that Sarah Frances Bolhuis, 70, of Ellsworth, in Antrim County, Michigan, was sentenced to nearly six years in federal prison and ordered to repay $5.2 million to 53 victims of her investment fraud scheme. The Honorable Paul L. Maloney, U.S. District Judge, imposed the sentence, and further ordered her to serve three years of court supervision upon her release from prison.
Bolhuis pled guilty in September 2016 to wire fraud and money laundering charges, and admitted making numerous false and fraudulent misrepresentations and promises concerning financial services she claimed to provide for many years under the name American Financial ("AMFI") and Tri-Logic. Bolhuis admitted that she did not use the victims’ money as promised. Instead, Bolhuis made payments to a business partner, made return-of-principal and other payments to "investors," and paid "finder fees" to individuals who successfully recruited new "investors." In truth, there were no real investments made, as she had promised. Additionally, Bolhuis admitted laundering proceeds of the fraud. In one instance, she admitted depositing into a bank account money that she obtained from one victim and withdrawing $27,500 from the same account to make a payment to another victim in what amounted to a Ponzi-style scheme.
The U.S. Attorney’s Office noted in its sentencing memorandum that several of the victims suffered substantial financial hardship as a result of their losses. Although the scheme netted more than $7.5 million, only $2.3 million in repayments were traced due in large part to the extensive use of U.S. currency in the scheme. Bolhuis went to extraordinary lengths to hide the scheme, including having one of her victims pretend to be another person to (unbeknownst to that victim) corroborate one of the many lies she told others to convince them that she was using their money as promised. The government also outlined a new "real estate rescue" fraud Bolhuis perpetrated on one of her victims even after her Ponzi-style scheme had unraveled and she knew she was under investigation by state and federal law enforcement.
Acting U.S. Attorney Birge stated, "Fraudulent investment schemes that cause significant financial harm to individual investors will always be a priority for the U.S. Attorney’s Office. And we will work as hard as we can to get money back for the victims and to make sure the net return for those who spin the web of lies will be prison time, as Ms. Bolhuis has learned."
Special Agent in Charge Manny Muriel, IRS - Criminal Investigation, stated: "Ponzi schemes can thrive for a time on false claims about how the money is being invested and where the returns are coming from. But as demonstrated by today’s sentencing, that time has gone in this case and one who preyed on investors for their personal gain has been held accountable. It is always important to keep in mind that investment schemes that seem too good to be true should be a signal to investors to stay clear."
David P. Gelios, Special Agent in Charge, Detroit Division of the FBI, stated: "The defendant in this investment scheme stole millions of dollars from over 50 investors causing life altering and damaging financial harm. Today’s sentence demonstrates that those responsible for predatory investment fraud schemes like the one orchestrated by Bolhuis will be held to account for their crimes."
IRS Criminal Investigation and the Federal Bureau of Investigation continue to investigate this matter. Assistant U.S. Attorney Christopher O’Connor prosecuted the case.
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Norridgewock Man Pleads Guilty to Distributing OxycodoneRead the Press Release
Contact: Jody Mullis
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Brandon Lancaster, 21, of Norridgewock, Maine, pleaded guilty today in U.S. District Court to distributing oxycodone.
According to court records, on August 31, 2016, in a Pittsfield, Maine parking lot, Lancaster sold eleven 30 mg oxycodone pills for $500 to a person working with law enforcement.
Lancaster faces up to 20 years in prison, a $1,000,000 fine, and between three years and a life on supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
This case was investigated by the U.S. Drug Enforcement Administration and investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Nine Defendants Charged with Conspiracy to Distribute Heroin and Oxycodone in Staten Island, New YorkRead the Press Release
An indictment and two complaints were unsealed today in the United States District Court for the Eastern District of New York charging nine defendants with conspiring to distribute heroin and/or oxycodone in Staten Island, New York.
Eight defendants were arrested earlier today in Staten Island and Brooklyn and are scheduled to be arraigned before Magistrate Judge James Orenstein in Brooklyn this afternoon. One additional defendant was arrested earlier today in Arizona, and her initial appearance is scheduled this afternoon before United States Magistrate Judge David K. Duncan at the federal court house in Phoenix, Arizona. The government will seek to remove to New York for prosecution the defendant arrested out of state.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division, Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York, and Commissioner James P. O’Neill of the New York City Police Department (NYPD).
“These defendants allegedly pushed heroin and oxycodone for months, contributing to the opioid plague that has caused great suffering on Staten Island,” stated United States Attorney Capers. “Today’s arrests demonstrate this Office’s commitment to marshal all available resources necessary to investigate and prosecute those who peddle these highly addictive narcotics in our communities.” Mr. Capers expressed his appreciation to the Richmond County District Attorney's Office for its participation in today's arrests.
DEA Special Agent in Charge Hunt stated, “Since the millennium, statistics show a steady rise of drug overdoses in New York City with fatalities skyrocketing these past five years. Throughout that time, Staten Islanders weathered the storm termed by many as the ‘opioid epidemic’, with users transitioning from abusing diverted prescription medication, to heroin, to heroin mixed with fentanyl. By collaborating resources with our state, local and federal law enforcement partners, we arrested nine dealers responsible for fueling opioid addiction on Staten Island.”
“America’s addiction to opioids is dependent on drug-pushing organizations like this. Selling rock and prescription drugs out of their front door, in their own community, is inexcusable,” said Melendez, Special Agent-in-Charge for HSI New York. “These arrests demonstrate the collaborative and continuing endeavor to attack the persistent problem of drug trafficking in New York and the surrounding communities.”
“As alleged, these individuals distributed heroin and oxycodone in their own community, and by doing so they endangered the lives of those who live and work around them by contributing to the supply of highly addictive narcotics that have led to numerous overdoses and deaths. The NYPD is committed to holding accountable those who are responsible for this deadly flow of poison and ensuring they are brought to justice,” said Police Commissioner O’Neill.
As alleged in the indictment and complaints unsealed today, as part of its investigation of narcotics trafficking by defendant Michael Calabria, DEA agents uncovered a narcotics distribution ring involving the defendants Joseph Calabria, Stephen Delpriore, Devida Lombardo, Ugo Gallo, Carol Monforte, Vincent Maniscalco, Glenn DePaolo and Maria DePaolo. As alleged in the court filings, the defendants conspired to distribute heroin and/or oxycodone from September 2016 to January 2017.
These arrests were the result of a long-term investigation by the U.S. Drug Enforcement Administration’s New York Organized Crime Drug Enforcement Strike Force, which is comprised of agents and officers of the DEA, the New York City Police Department, Immigration and Customs Enforcement – Homeland Security Investigations (HSI), the New York State Police, the U. S. Internal Revenue Service Criminal Investigation Division, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Federal Bureau of Investigation, U.S. Secret Service, the U.S. Marshal Service, New York National Guard, the New York Department of Taxation and Finance, the Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department and New York State Department of Corrections and Community Supervision. The Strike Force is partially funded by the New York/New Jersey High Intensity Drug Trafficking Area (HIDTA), which is a federally funded crime fighting initiative.
The charges in the indictment and complaints are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of the most serious offense, the defendants face up to 20 years of imprisonment.
The government’s case is being prosecuted by Assistant United States Attorneys Karthik Srinivasan and Alicia N. Washington.
The Defendants:
MICHAEL CALABRIA
Age: 49
Staten Island, NY
JOSEPH CALABRIA
Age: 52
Staten Island, NY
STEPHEN DELPRIORE
Age: 55
Staten Island, NY
DEVIDA LOMBARDO
Age: 46
Staten Island, NY
UGO GALLO
Age: 46
Staten Island, NY
CAROL MONFORTE
Age: 57
Staten Island, NY
VINCENT MANISCALCO
Age: 55
Brooklyn, NY
GLENN DEPAOLO
Age: 59
Staten Island, NY
MARIA DEPAOLO
Age: 55
Staten Island, NY
E.D.N.Y. Docket Numbers:
United States v. Michael Calabria, et al, 17-CR-91
United States v. Carol Monforte et al, 17-MJ-170
United States v. Ugo Gallo, 17-MJ-171
Nine Defendants Arrested for Operating an International Steroid Distribution RingRead the Press Release
A complaint was unsealed yesterday in the United States District Court in Brooklyn charging ten defendants with operating an international steroid manufacturing and distribution ring. Seven defendants will be arraigned today at the United States Courthouse in Miami, Florida. Two defendants will be arraigned at the United States Courthouse in Phoenix, Arizona, and one remaining defendant is being sought in Phoenix.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Carl J. Kotowski, Special Agent in Charge, Drug Enforcement Administration (DEA), New Jersey Division.
As set forth in the complaint and other publicly filed documents, the charges against the defendants stem from an investigation into a Miami-based company named Wellness Fitness Nutrition, LLC (“WFN”). WFN’s founder and CEO, Richard Rodriguez, purported that WFN was an “FDA compliant” pharmacy and laboratory licensed to distribute anabolic steroids, which are controlled substances under federal law. In fact, the investigation revealed that WFN was not licensed by the DEA to distribute steroids and routinely dispensed steroids to customers without the requisite medical prescriptions. WFN marketed and sold its wide array of anabolic steroids through its website www.wellnessfitnessnutrition.com.
During the year-long investigation which began in 2015, led by the New Jersey DEA Tactical Diversion Squad, Special Agents and Task Force Officers were able to track the purchase of raw steroid materials by WFN from various companies in China. This raw steroid powder was shipped to a clandestine laboratory in Phoenix, Arizona where it was subsequently manufactured by the defendants into both liquid and pill-form steroids. The finished steroid product was then sent back to Miami where it was labeled, packaged and shipped to WFN’s domestic and international customers. Over the course of the investigation, undercover New Jersey DEA special agents and Task Force Officers made undercover purchases of over $30,000 worth of illicit anabolic steroids from the WFN defendants. A review of WFN customer lists revealed that WFN shipped steroids to at least 50 customers in the Eastern District of New York.
Additionally, the financial investigation into WFN revealed that the company laundered over a million dollars in illicit proceeds back into the operation of its national distribution ring and moved at least ten million dollars in illicit proceeds through various WFN and related entities’ bank accounts.
Today, in connection with the arrests, Task Force Officers executed search warrants at the clandestine lab in Phoenix, Arizona and at the WFN offices and shipping facility located in Miami, Florida.
“As alleged, the defendants made millions of dollars through the illicit online sales of anabolic steroids while operating under the guise of an ‘FDA-compliant’ health and wellness business,” stated United States Attorney Capers. “This case serves as a message that my Office and our law enforcement partners will not allow the widespread illegal distribution of anabolic steroids to go unchecked.” Mr. Capers expressed his appreciation to the DEA Arizona Division, DEA Miami Division, Homeland Security Investigations New Jersey Division, Customs and Border Protection Port of New York/Newark, and U.S. Postal Service Inspection Service New Jersey Division for their assistance during the course of this year-long investigation.
“The results of this investigation send a clear message to the public. It doesn’t matter if you are peddling heroin, cocaine or steroids. If you break the law, we will dedicate the necessary resources to put an end to this type of distribution,” stated DEA Special Agent in Charge Kotowski.
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of the offense, the defendants face a maximum sentence of twenty years’ imprisonment.
The government’s case is being prosecuted by Assistant United States Attorneys Michael T. Keilty and Kaitlin T. Farrell. Assistant United States Attorney Claire Kedeshian of the Office’s Civil Division is responsible for the seizure and forfeiture of assets.
The Defendants:
RICHARD RODRIGUEZ
Age: 37
Miami, Florida
JOHN FERRELL
Age: 36
Miami, Florida
NANCY MELO-RODRIGUEZ
Age: 39
Miami, Florida
EDWARD JACOB LIFF
Age: 34
Phoenix, Arizona
XZAVIER APODACA
Age: 30
Phoenix, Arizona
BYRON OLIVER
Age: 37
Phoenix, Arizona
ERICK VITTITOW
Age: 29
Miami, Florida
BADER ALASKARI
Age: 34
North Bay Village, Florida
BERNARD DURAN
Age: 43
Miramar, Florida
JONATHAN GONZALEZ
Age: 37
Miami, Florida
E.D.N.Y. Docket No. 17-MJ-154
New York Man Pleads Guilty to Heroin Charge Stemming from Overdose Death in GreenwichRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that ISAIAH HART, 21, of Brooklyn, N.Y., pleaded guilty yesterday before U.S. District Judge Michael P. Shea in Hartford to one count of conspiracy to possess with intent to distribute, and to distribute, heroin. The charge stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, in the afternoon of December 8, 2015, Greenwich Police officers and emergency medical personnel responded to a Greenwich residence on the report of an unresponsive man. The man, who was 26, was pronounced dead. Within the residence, officers located and found opened and unopened wax folds (“bags”) with a green colored label “Emerald City” stamped on them.
The Connecticut Department of Emergency Services and Public Protection’s Division of Scientific Services later analyzed the unopened bags and determined the powder contained heroin, and according to the Connecticut Chief Medical Examiner’s Office, the victim’s death was caused by acute heroin toxicity.
Investigators determined that the victim had contacted “Tony” to order heroin in response to a Craig’s List advertisement for “dog food.” On December 7, 2015, the victim drove from Greenwich to Brooklyn and purchased two bundles (20 bags) of heroin from HART for $185.
HART was arrested on a federal criminal complaint on April 14, 2016. He has related drug charges pending in Brooklyn stemming from his selling heroin, in bags stamped “Emerald City,” to an undercover law enforcement officer on December 8, 2015.
Judge Shea scheduled sentencing for May 18, 2017, at which time HART faces a maximum term of imprisonment of 20 years. HART is released on bond pending sentencing.
This matter is being investigated by the DEA’s New Haven Task Force and the Greenwich Police Department. The Task Force includes DEA agents and task force officers from the North Haven, East Haven, West Haven, New Haven, Hamden, Branford, Ansonia, Derby and Meriden Police Departments. U.S. Attorney Daly also acknowledged the significant assistance of the New York Police Department in this investigation.
This case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed with the assistance of Law Student Intern William Kukin.
New London Man Pleads Guilty to Federal Child Enticement OffenseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BRYAN WHITE, 39, of New London, pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to attempting to entice a minor to engage in illegal sexual activity.
According to court documents and statements made in court, in June and July 2016, WHITE used a cellular phone and Chat Bazaar, a video chatting service, to communicate with a 13-year-old female in New Jersey. In text messages, the minor victim repeatedly told WHITE her age. WHITE responded by saying that “age is just a number to deny u things” and that he is a “child lover.” The text exchanges with the victim were sexually explicit, and WHITE requested that the victim travel from New Jersey to Connecticut to engage in sexual activity with him.
On June 16, 2016, the victim’s father discovered the texts with WHITE on the victim’s phone and reported it to local police. A law enforcement officer then assumed the minor’s identity to continue to correspond with WHITE. Between June 29 and July 5, 2016, WHITE repeatedly asked the undercover officer, posing as the victim, to come to Connecticut and described the sexual activity he wanted to engage in with the victim. The undercover officer agreed to take a bus from New Jersey to Connecticut. WHITE explained that he would be at the bus terminal wearing a yellow “MICHIGAN” shirt and that he would bring condoms and pina colada wine coolers to the bus station.
On July 5, 2016, WHITE was arrested at the New London bus station at the designated time wearing the clothes that he said he would be wearing. At the time of his arrest, WHITE was in possession of a condom and two bottles of alcoholic beverages.
WHITE pleaded guilty to one count of attempted enticement of a minor to engage in unlawful sexual activity, an offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of life imprisonment. Judge Thompson scheduled sentencing for May 23, 2017.
WHITE has been detained since his arrest.
This matter is being investigated by Homeland Security Investigations, the Burlington County (N.J.) Prosecutor’s Office, the Florence (N.J.) Township Police Department, the New London Police Department and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Multiple Local, State, and Federal Law Enforcement Agencies to Hold Press Conference in North Charleston on Wednesday, February 22, 2017Read the Press Release
Contact Person: A. Lance Crick (843) 282-2105
The press conference will be held at 4pm in the lobby of North Charleston’s City Hall, located at 2500 City Hall Lane, North Charleston, South Carolina 29406
Columbia, South Carolina --- United States Attorney Beth Drake announced this morning that federal, state, and local law enforcement agencies have conducted a joint enforcement operation today involving multiple defendants located in Charleston County and Dorchester County. A press conference will be held this afternoon (Wednesday, February 22, 2017) at 4:00pm in the lobby of North Charleston’s City Hall, located at 2500 City Hall Lane, North Charleston, South Carolina 29406.
Participating in the press conference will be member(s) of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), ICE-Homeland Security Investigations, the North Charleston Police Department, the Charleston Police Department, the Charleston County Sheriff’s Office, the Ninth Circuit Solicitor’s Office, and the U.S. Attorney’s Office.
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Multiple Local, State and Federal Law Enforcement Agencies to Hold Press Conference in Conway on Thursday Morning, February 23, 2017Read the Press Release
Contact Person: Andy Moorman (864) 282-2140
The press conference will be held at 9:30am at the M.L. Brown Building, located at 2560 Main Street, Conway, South Carolina 29526
Columbia, South Carolina --- United States Attorney Beth Drake announced that federal and state law enforcement agencies have conducted a joint enforcement operation today involving multiple defendants located in Horry County, Florence County, and Charleston County. A press conference will be held on Thursday, February 23, 2017, at 9:30 A.M. at the M.L. Brown Building, located at 2560 Main Street, Conway, South Carolina 29526.
Participating in the press conference will be member(s) of the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the Horry County Sheriff’s Office, the Horry County Police Department, the Myrtle Beach Police Department, the North Myrtle Beach Police Department, the 15th Circuit’s Drug Enforcement Unit, the Georgetown Police Department, and the U.S. Attorney’s Office.
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Mississippi Businessman Sentenced to One Year in Prison for Failing to File His Income Tax ReturnRead the Press Release
A Gulfport, Mississippi businessman was sentenced to 12 months in prison today for failing to file a 2009 individual income tax return, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to information provided to the court, Samuel Frazier, owned two companies in the Gulfport area: Frazier Fire Systems LLC and EZ Haul Demolition and Construction LLC. In 2011, Internal Revenue Service Criminal Investigation (IRS-CI) special agents contacted Frazier, because he had not filed a tax return since 1997. Frazier failed to file a 2009 individual income tax return despite earning gross income of $618,253.53, an amount well above the threshold triggering the requirement to file. For tax years 2007 through 2010, Frazier caused a tax loss of $210,589.
In addition to the term of prison imposed, Frazier was ordered to serve one year of supervised release and to pay restitution in the amount of $210,589 to the IRS.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS-CI, who conducted the investigation, and Trial Attorney Nathan Brooks of the Tax Division, who prosecuted this case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office for the Southern District of Mississippi for their assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Media AdvisoryRead the Press Release
On March 2, 2017, at 9:00 a.m., Gervais (Ken) Ngombwa will be sentenced in federal district court in Cedar Rapids, Iowa, following his convictions for naturalization fraud and lying to federal agents and the district court’s finding that he participated in the Rwandan genocide.
Following the sentencing hearing, at approximately 10:00 a.m., the United States Attorney’s Office and the Department of Homeland Security will hold a press conference at the United States Attorney’s Office in Cedar Rapids, Iowa.
Press releases and interview opportunities will be available.
Follow us on Twitter @USAO_NDIA.
Marshall County man sentenced for failing to register as sex offenderRead the Press Release
WHEELING, WEST VIRGINIA – Thomas Hammerstone, 34, of McMechen, West Virginia, was sentenced in federal court to six months incarceration for failing to register as a sex offender, Acting United States Attorney Betsy Steinfeld Jividen announced.
Hammerstone admitted to traveling in interstate commerce and failing to register and update his registration as a sex offender from November 2015 to October 2016.
Hammerstone is required to register under the Sex Offender Registration and Notification Act by reason of a conviction under state law.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The United States Marshals Service investigated.
U.S. District Judge John Preston Bailey presided.
Man pleads guilty to threatening to damage government buildingsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jeremy E. Smith, 37, an incarcerated individual at the United States Penitentiary at Hazelton, pled guilty to threatening to destroy government buildings, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Smith mailed threats to destroy buildings in Philadelphia, Boston, Washington, D.C., New York, and Chicago on November 26, 2015. He was convicted on one count of “Threat to Damage Buildings by Use of Explosives.”
He faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah W. Montoro prosecuted the case on behalf of the government. The United States Secret Service and the Special Investigative Services at USP Hazleton investigated.
U.S. District Judge Irene M. Keeley presided.
Man Posing as a “Coyote” Sentenced to 6.5 Years in Prison for Scheme to Defraud Undocumented Immigrants and Their RelativesRead the Press Release
FRESNO, Calif. — Martin Carranza-Sanchez, 45, of Mexico, was sentenced today by U.S. District Judge Dale A. Drozd to a six years and six months in prison and three years of supervised release for conspiracy to commit wire fraud in a scheme to defraud Mexican citizens seeking to enter the U.S. without documentation and their relatives living in the United States, U.S. Attorney Phillip A. Talbert announced.
According to his plea agreement and other court documents, between January 2010 and January 21, 2016, Carranza-Sanchez posed as an undocumented immigrant smuggler (also known as a “coyote”) who falsely promised undocumented immigrants and their U.S.‑resident relatives that he would deliver the immigrants into the United States for a fee. Carranza-Sanchez directed the U.S. residents to wire the fee to various bank accounts in the Eastern District of California, which he and his co-conspirators ultimately collected.
Carranza-Sanchez, however, never intended to help the immigrants enter the United States without being detected. In fact, on multiple occasions, after the immigrants arrived at the Mexico location designated by Carranza-Sanchez, his co-conspirators detained them against their will until their relatives wired Carranza-Sanchez’s fee. Also, on multiple occasions, Carranza-Sanchez and his co-conspirators told the U.S. residents that the immigrants would be harmed if the U.S. residents did not pay immediately. In many instances, once the relatives wired the fee, Carranza-Sanchez instructed the immigrants to cross the border without him, at which point the immigrants were immediately apprehended by U.S. Border Patrol.
The investigation revealed that Carranza-Sanchez and his co-conspirators defrauded U.S. residents of approximately $95,000 as a result of their scheme. He was ordered today to repay that amount to the victims of his crimes.
U.S. Attorney Talbert stated, “While smuggling undocumented immigrants is a crime, falsely claiming to do so in order to obtain payments from relatives in the United States is also a crime—fraud. Carranza-Sanchez’s fraud scheme targeted the immigrants’ relatives living in the United States, and he exploited them further by threatening to harm the immigrants if the fee wasn’t paid immediately. This criminal conduct is unacceptable, and we will continue to investigate and prosecute those who engage in it.”
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Angela L. Scott prosecuted the case.
Lockport Man Pleads Guilty in Methamphetamine Trafficking ConspiracyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALLEN GAUTREAX, age 36, of Lockport, pled guilty today to one count of conspiring to distribute and to possess with intent to distribute methamphetamine.
According to court documents, GAUTREAUX conspired to distribute between 30 grams and 40 grams of a mixture or substance containing methamphetamine throughout the New Orleans area.
GAUTREAUX is facing a maximum sentence of 20 years’ imprisonment, a possible fine of up to $1,000,000, and at least three years of supervised release upon his release from prison. U.S. District Judge Sarah S. Vance set sentencing on June 28, 3017.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration (DEA), the Louisiana State Police (LSP), and the U.S. Marshals Service (USMS) in investigating this matter. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
Lawrence County Man Sentenced to 4 Years in Prison for Possessing Child PornographyRead the Press Release
PITTSBURGH - A former Lawrence County resident has been sentenced in federal court to 48 months imprisonment, followed by 12 years of supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, Acting United States Attorney Soo C. Song announced today.
United States District Judge Mark R. Hornak imposed the sentence on Sean J. Barner, 38, formerly of New Bedford, Pennsylvania.
According to information presented to the court, Barner unlawfully possessed thousands of photographs and videos depicting minors engaged in sexually explicit conduct. Barner obtained the files through a peer-to-peer file sharing network, where he also made files available for others to download.
Assistant United States Attorney Lee J. Karl prosecuted this case on behalf of the government.
The Pennsylvania State Police conducted the investigation leading to the successful prosecution of Barner.
Laveen Man Sentenced to Federal Prison for Assault Resulting in Serious Bodily InjuryRead the Press Release
PHOENIX – On Feb. 21, 2017, James Flippen Lewis, 28, of Laveen, Ariz., and a member of the Gila River Indian Community, was sentenced by U.S. District Judge Neil V. Wake to 84 months in prison, followed by a term of three years of supervised release. Lewis had previously pleaded guilty to three counts of assault resulting in serious bodily injury.
During 2013, 2014, and 2015, within the Gila River Indian Community, Lewis assaulted three different female victims causing them to sustain serious bodily injuries. All three victims were members of the Gila River Indian Community.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-14-1409-PHX-NVW
RELEASE NUMBER: 2017-017_Lewis
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Kansas Tax Preparer Sentenced to Prison for Preparing Fraudulent Tax ReturnsRead the Press Release
WASHINGTON – A Kansas City, Kansas return preparer was sentenced to serve 27 months in prison today, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Thomas Beall for the District of Kansas.
According to documents filed with the court, Antoine Dorsey owned and operated Day-1 Tax Service, a tax preparation business in Kansas City. From 2009 through 2012, Dorsey reported fictitious business income on his clients’ returns to qualify them for the earned income tax credit, and claim refunds to which they were not entitled. Dorsey caused a tax loss to the Internal Revenue Service (IRS) of approximately $74,487.
In addition to the prison term imposed, Dorsey was ordered to serve one year of supervised release and to pay restitution in the amount of $88,467 including $74,487 to the IRS. On April 6, 2016, Dorsey pleaded guilty to aiding and assisting in the preparation of a fraudulent tax return.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Beall commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Scott C. Rask and Trial Attorney John T. Mulcahy of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Kansas Return Preparer Sentenced to Prison for Preparing Fraudulent Tax ReturnsRead the Press Release
A Kansas City, Kansas return preparer was sentenced to serve 27 months in prison today, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Thomas Beall for the District of Kansas.
According to documents filed with the court, Antoine Dorsey owned and operated Day-1 Tax Service, a tax preparation business in Kansas City. From 2009 through 2012, Dorsey reported fictitious business income on his clients’ returns to qualify them for the earned income tax credit, and claim refunds to which they were not entitled. Dorsey caused a tax loss to the Internal Revenue Service (IRS) of approximately $74,487.
In addition to the prison term imposed, Dorsey was ordered to serve one year of supervised release and to pay restitution in the amount of $88,467 including $74,487 to the IRS. On April 6, 2016, Dorsey pleaded guilty to aiding and assisting in the preparation of a fraudulent tax return.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Beall commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Scott C. Rask and Trial Attorney John T. Mulcahy of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Kansas Men Sentenced for Roles in Federal Hate Crime Against Somali MenRead the Press Release
Armando Sotelo, 24, was sentenced to two years of supervised release today for a hate crime offense arising from his assault of a black Somali man on June 19, 2015, in Dodge City, Kansas. Omar Cantero Martinez, 32, was sentenced to 26 months imprisonment and two years of supervised release today for committing perjury during a hate crimes prosecution arising from the same assault. Martinez also pleaded guilty today to an illegal reentry charge.
On November 29, 2016, Sotelo pleaded guilty to one count of a hate crime violation. During his plea hearing, he admitted that he assaulted the victim, identified as M.H.D., because of M.H.D.’s race and national origin. Sotelo admitted that he and two other men approached M.H.D., who is black and from Somalia, while M.H.D. was sitting on a bench with two other Somali men outside an African market. The defendant approached the bench from one side, while the two men with him approached the bench from the other. Sotelo and the others all yelled racial and anti-Somali slurs at M.H.D. and the two other Somali men on the bench. The defendant then punched M.H.D. in the head without any justification, causing M.H.D. bodily injury. Following the assault, Sotelo fled the scene and directed another person to wash his clothing, which was bloody from the assault.
Also on November 29, 2016, Martinez pleaded guilty to one count of perjury for providing materially false testimony during an October 2016 federal criminal jury trial related to the hate crime assault. During his plea hearing, Martinez admitted that on the night of June 19, 2015, he had used a broken glass bottle to stab victim S.A.M. and slash victim A.M.A. without justification. Martinez also admitted that racial and anti-Somali slurs were used during the attack and that he and Sotelo instigated the attack. He further admitted that he provided false testimony about the incident during a federal jury trial in which he and Sotelo were charged with hate crimes offenses for the attack; that he knew his testimony was false at the time that he gave it; and that his false testimony was material to the hate crimes charges.
“Hate violence not only harms individuals but also threatens the diversity of our society and the well-being of our communities,” said Acting Assistant Attorney General Tom Wheeler for the Justice Department’s Civil Rights Division. “In this case, Sotelo attacked the victim because of the color of his skin and his country of origin, inflicting bodily injury during the assault. Martinez participated in the assault and lied about it to a federal jury. The Justice Department will continue to vigorously prosecute hate crimes so that all people can live their lives with the security, protection and freedom they deserve.”
This case was investigated by the FBI’s Garden City Resident Agency with assistance from the Dodge City Police Department and the Ford County, Kansas, Sheriff’s Department. The case is being prosecuted by Trial Attorney Risa Berkower and Special Litigation Counsel Jared Fishman of the Civil Rights Division’s Criminal Section with assistance from Assistant U.S. Attorney Mona Furst of the District of Kansas.
Kansas Men Sentenced for Roles in Federal Hate Crime Against Black Somali MenRead the Press Release
Armando Sotelo, 24, was sentenced to two years of supervised release today for a hate crime offense arising from his assault of a black Somali man on June 19, 2015, in Dodge City, Kansas. Omar Cantero Martinez, 32, was sentenced to 26 months imprisonment and two years of supervised release today for committing perjury during a hate crimes prosecution arising from the same assault. Martinez also pleaded guilty today to an illegal reentry charge.
On November 29, 2016, Sotelo pleaded guilty to one count of a hate crime violation. During his plea hearing, he admitted that he assaulted the victim, identified as M.H.D., because of M.H.D.’s race and national origin. Sotelo admitted that he and two other men approached M.H.D., who is black and from Somalia, while M.H.D. was sitting on a bench with two other Somali men outside an African market. The defendant approached the bench from one side, while the two men with him approached the bench from the other. Sotelo and the others all yelled racial and anti-Somali slurs at M.H.D. and the two other Somali men on the bench. The defendant then punched M.H.D. in the head without any justification, causing M.H.D. bodily injury. Following the assault, Sotelo fled the scene and directed another person to wash his clothing, which was bloody from the assault.
Also on November 29, 2016, Martinez pleaded guilty to one count of perjury for providing materially false testimony during an October 2016 federal criminal jury trial related to the hate crime assault. During his plea hearing, Martinez admitted that on the night of June 19, 2015, he had used a broken glass bottle to stab victim S.A.M. and slash victim A.M.A. without justification. Martinez also admitted that racial and anti-Somali slurs were used during the attack and that he and Sotelo instigated the attack. He further admitted that he provided false testimony about the incident during a federal jury trial in which he and Sotelo were charged with hate crimes offenses for the attack; that he knew his testimony was false at the time that he gave it; and that his false testimony was material to the hate crimes charges.
“Hate violence not only harms individuals but also threatens the diversity of our society and the well-being of our communities,” said Acting Assistant Attorney General Tom Wheeler for the Justice Department’s Civil Rights Division. “In this case, Sotelo attacked the victim because of the color of his skin and his country of origin, inflicting bodily injury during the assault. Martinez participated in the assault and lied about it to a federal jury. The Justice Department will continue to vigorously prosecute hate crimes so that all people can live their lives with the security, protection and freedom they deserve.”
This case was investigated by the FBI’s Garden City Resident Agency with assistance from the Dodge City Police Department and the Ford County, Kansas, Sheriff’s Department. The case is being prosecuted by Trial Attorney Risa Berkower and Special Litigation Counsel Jared Fishman of the Civil Rights Division’s Criminal Section with assistance from Assistant U.S. Attorney Mona Furst of the District of Kansas.
KC Man Sentenced for Illegal Firearm at Truman Medical CenterRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man who carried a pistol into Truman Medical Center was sentenced in federal court today for illegally possessing a firearm.
Charles Eugene Glasgow, Jr., 42, of Kansas City, was sentenced by U.S. District Judge Stephen R. Bough to five years and four months in federal prison without parole.
On Nov. 14, 2016, Glasgow pleaded guilty to being a felon in possession of a firearm.
Glasgow was in possession of a Soc.it.F.lli 6.35mm pistol when he walked into Truman Medical Center on Jan. 4, 2016. Glasgow said he wanted to visit a person at the hospital, but when told there was no one by that name in the hospital, began to change the last names of the person he wanted to visit. Glasgow was told he would not be granted access to the hospital floors and was instructed to leave.
Glasgow became belligerent and refused to leave the property. Security officers attempted to take him into custody for trespassing. As several officers attempted to restrain Glasgow to arrest him, Glasgow refused to take his hand out of his pocket and ignored repeated orders to show his hands. One of the security officers was able to see part of a gun and at that time three other security officers jumped on Glasgow and took him to the ground, where they were able to remove the gun from his pocket and place him in handcuffs.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Glasgow has a 2002 federal felony conviction for being a felon in possession of a firearm, for which he was sentenced to 57 months in federal prison without parole. According to court documents, Glasgow also has a prior felony conviction for robbery, prior to his first federal firearm conviction, as well as felony convictions for terrorist threats and assault since his release from federal prison. Glasgow’s prior criminal history spans 25 years and includes 30 adult municipal, misdemeanor and felony convictions for an assortment of offenses in 10 different city, state and federal jurisdictions in four different states.
This case was prosecuted by Assistant U.S. Attorney Alison D. Dunning. It was investigated by the Kansas City, Mo., Police Department.
Justice Department and Sterling Heights, Michigan, Resolve Lawsuit over Denial of Zoning Approval for a MosqueRead the Press Release
The Justice Department today announced a settlement with the city of Sterling Heights, Michigan to resolve allegations that the city violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) in denying approval to allow the American Islamic Community Center, Inc. (AICC) to build a mosque in the city.
The settlement, which must still be approved by the U.S. District Court for the Eastern District of Michigan, resolves a lawsuit the department filed in December 2016. A separate settlement resolving a similar lawsuit brought by the AICC against the city has also been submitted to the court for approval.
The United States alleged that Sterling Heights discriminated against the AICC on the basis of religion when it denied the application to build a mosque. It further alleged that the denial imposed a substantial burden on the AICC’s religious exercise. The AICC, currently located in Madison Heights, Michigan, sought to build in Sterling Heights because the location is more convenient for its members and its current space has become inadequate for its religious, educational and social needs.
As part of the settlement, the city has agreed to permit the AICC to construct a mosque in the city. The city has also agreed to publicize its non-discrimination policies and practices, undergo training on the requirements of RLUIPA, and report periodically to the Justice Department.
“Federal law protects the right of faith communities to build places of worship without discrimination or unreasonable burdens on their religious exercise,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “We commend the city of Sterling Heights for agreeing to approve the AICC’s mosque, so that it can serve its members and contribute to the surrounding community.”
“The law protects people of all religions from discrimination or unnecessary obstacles when they seek to build a place of worship,” said U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan. “Thanks to this settlement, the AICC will be able to build a mosque where its members can gather for religious and community events. I grew up in Sterling Heights, and I am proud that the city is taking steps to protect the religious rights of all of its residents.”The case was handled by the department’s Civil Rights Division and the U.S. Attorney’s Office of the Eastern District of Michigan.
RLUIPA, enacted in 2000, prohibits religious discrimination and protects against unjustified burdens on religious exercise in, among other things, land use and zoning decisions. People who believe they were subjected to religious discrimination in land use or zoning may contact the Housing and Civil Enforcement Section at 1-800-896-7743 or the U.S. Attorney’s Office of the Eastern District of Michigan’s Civil Rights Hotline at (313) 226-9151 or [email protected].
More information about RLUIPA, including a report on the department’s enforcement, may be found at www.justice.gov/crt/religious-land-use-and-institutionalized-persons-act.
Sterling Heights Consent OrderJustice Department and Sterling Heights Resolve Lawsuit over Denial of Zoning Approval for a MosqueRead the Press Release
The Justice Department today announced a settlement with the city of Sterling Heights, Michigan to resolve allegations that the city violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) in denying approval to allow the American Islamic Community Center, Inc. (AICC) to build a mosque in the city.
The settlement, which must still be approved by the U.S. District Court for the Eastern District of Michigan, resolves a lawsuit the department filed in December 2016. A separate settlement resolving a similar lawsuit brought by the AICC against the city has also been submitted to the court for approval.
The United States alleged that Sterling Heights discriminated against the AICC on the basis of religion when it denied the application to build a mosque. It further alleged that the denial imposed a substantial burden on the AICC’s religious exercise. The AICC, currently located in Madison Heights, Michigan, sought to build in Sterling Heights because the location is more convenient for its members and its current space has become inadequate for its religious, educational and social needs.
As part of the settlement, the city has agreed to permit the AICC to construct a mosque in the city. The city has also agreed to publicize its non-discrimination policies and practices, undergo training on the requirements of RLUIPA, and report periodically to the Justice Department.
“Federal law protects the right of faith communities to build places of worship without discrimination or unreasonable burdens on their religious exercise,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “We commend the city of Sterling Heights for agreeing to approve the AICC’s mosque, so that it can serve its members and contribute to the surrounding community.”
“The law protects people of all religions from discrimination or unnecessary obstacles when they seek to build a place of worship,” said U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan. “Thanks to this settlement, the AICC will be able to build a mosque where its members can gather for religious and community events. I grew up in Sterling Heights, and I am proud that the city is taking steps to protect the religious rights of all of its residents.”
The case was handled by the department’s Civil Rights Division and the U.S. Attorney’s Office of the Eastern District of Michigan.
RLUIPA, enacted in 2000, prohibits religious discrimination and protects against unjustified burdens on religious exercise in, among other things, land use and zoning decisions. People who believe they were subjected to religious discrimination in land use or zoning may contact the Housing and Civil Enforcement Section at 1-800-896-7743 or the U.S. Attorney’s Office of the Eastern District of Michigan’s Civil Rights Hotline at (313) 226-9151 or [email protected].
More information about RLUIPA, including a report on the department’s enforcement, may be found at www.justice.gov/crt/religious-land-use-and-institutionalized-persons-act.
Joplin Man Sentenced to 15 Years for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man was sentenced in federal court today for possessing and distributing child pornography over the Internet.
Ernest W. Haney, 51, of Joplin, was sentenced by U.S. District Judge Roseann Ketchmark to 15 years in federal prison without parole.
On Oct. 20, 2016, Haney pleaded guilty to possessing and distributing child pornography. Haney used peer-to-peer file-sharing software on his computer to download and to share images and videos of child pornography over the Internet.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cyber Crime Task Force.
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."
Jicarilla Apache Man Sentenced to Prison for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Tyson Atole, 31, an enrolled member of the Jicarilla Apache Nation who resides in Dulce, N.M., was sentenced today in federal court in Albuquerque, N.M., for a conviction on assault charges arising out of two separate incidents during which he attacked Native American women. Atole will serve a 71-month term of imprisonment followed by three years of supervised release.
Atole was arrested in Feb. 2016, on an indictment charging him with assault with a dangerous weapon, a bottle, and assault resulting in serious bodily injury. Atole committed the crimes on May 2, 2015, on the Jicarilla Apache Indian Reservation in Rio Arriba County, N.M.
On May 16, 2016, Atole pled guilty to one count of the indictment charging him with assault with a dangerous weapon and admitted assaulting a woman with a bottle on May 2, 2015. Atole also plead guilty to a felony information charging him with assault resulting in serious bodily injury, and admitted assaulting another woman and causing her to sustain serious bodily injury by intentionally striking her with his fist on Jan. 28, 2016. Atole admitted committing both crimes on the Jicarilla Apache Indian Reservation.
This case was investigated by the Jicarilla Apache Tribal Police Department and was prosecuted by Assistant U.S. Attorney Joseph Spindle.
This case was brought as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Houston Resident Guilty of Federal Drug Trafficking Following $1.2 Million Dollar Cash SeizureRead the Press Release
Samuel Dewayne Monroe, 39, of Houston, Texas, pled guilty on February 22, 2017, in United States District Court to conspiracy to distribute cocaine, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
On February 18, 2016, a federal grand jury returned an indictment alleging that eight Houston residents participated in a conspiracy to distribute more than 5 kilograms of cocaine into the Southern District of Illinois. In addition to the drug crimes, the United States also sought forfeiture of $1,212,934 in United States Currency that was seized on December 2nd and 3rd of 2015, along with jewelry appraised at $72,000. As part of his plea, Monroe agreed to forfeit any interest he has in the property that was seized.
As charged in this case, conspiracy to distribute cocaine is punishable by a mandatory minimum sentence of 10 years’ imprisonment and up to life imprisonment. Monroe also faces a fine of up $10,000,000, and not less than 5 years supervised release. However, the United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing. Monroe is scheduled to be sentenced on June 9, 2017. The 7 co-defendants in the case, Astin Allison, Nahum Shibeshi, Terrance Miles, Victor Johnson, Jamie Green, Rodney Smith and Dan E. Bell, have all pled guilty and are awaiting sentencing.
The investigation is being conducted by agents from the Drug Enforcement Administration as part of the OCDETF program. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Hartford Man Charged with Sex Trafficking of 3 MinorsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury in New Haven returned an indictment today charging TONEY KELSEY, also known as “Blaze,” 25, of Hartford, with one count of conspiracy to commit sex trafficking of a minor and three counts of sex trafficking of minors.
The indictment charges KELSEY with trafficking a minor victim in May and June 2015, a second minor victim in May 2016, and a third minor victim in November 2016. The indictment also charges KELSEY with conspiring to traffic these individuals and others.
Each charge carries a minimum term of imprisonment of 10 years and a maximum term of life imprisonment.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
KELSEY has been detained since his arrest by the Wethersfield Police Department on related state charges on November 30, 2016.
The case has been assigned to Chief U.S. District Judge Janet C. Hall in New Haven.
This matter is being investigated by the Federal Bureau of Investigation, Connecticut State Police, Homeland Security Investigations, Wethersfield Police Department and Hartford Police Department, through the Connecticut Human Trafficking Task Force. The case is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala.
Garden City Man Arrested for Child Pornography OffensesRead the Press Release
BOISE – Nickolas James Parnell, 37, of Garden City, Idaho, was arrested yesterday in Garden City on a three-count federal indictment in the District of Idaho charging him with transportation of child pornography, possession of child pornography, and access with intent to view child pornography. A federal grand jury sitting in Boise returned the indictment on February 14, 2017. Parnell made his initial appearance this morning at the federal courthouse in Boise, Idaho and pleaded not guilty. Trial in this case is scheduled for April 24, 2017, before Chief U.S. District Judge B. Lynn Winmill.
According to allegations in the indictment, between August 1, 2014 and May 12, 2016, Parnell transported child pornography to the District of Idaho, and possessed and accessed with intent to view child pornography using two laptop computers and two DVDs containing digital files.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Transportation of child pornography carries not less than five, and up to twenty years of imprisonment. Possession and access with intent to view child pornography carries up to twenty years of imprisonment. All three crimes also carry not less than five years, and up to a lifetime term of supervised release, up to a $250,000 fine, and a $5,100 special assessment.
The case is being investigated by the Federal Bureau of Investigation, with assistance from the Garden City Police Department and the Idaho Internet Crimes Against Children (ICAC) Task Force. The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Four Men Sentenced for Armed Robbery Spree in Virginia and North CarolinaRead the Press Release
RICHMOND, Va. – Four men were sentenced this week for their roles in several armed robberies of commercial establishments in Virginia and North Carolina.
Each of the four men listed below pleaded guilty on November 14, 2016 to robbery affecting interstate commerce and using a firearm during a crime of violence:
Name
Age
Hometown
Sentencing Details
Dikembwe Jahaan Akil Jones
25
Newport News, VA
Sentenced to 324 months
Dallas Cogdell, III
24
Hampton, VA
Sentenced to 360 months
Tyquan Demario MacCutcheon
24
Hampton, VA
Sentenced to 324 months
Armand Devon Mullen
26
Hampton, VA
Sentenced to 324 months
According to court documents, from May 6, 2016 through May 12, 2016, all four defendants robbed four Walgreens Pharmacy stores and one CVS Pharmacy in the Eastern District of Virginia, including in Williamsburg, Chesterfield, Henrico, Mechanicsville and Woodbridge. Subsequently, the four defendants traveled to North Carolina, where they robbed two Walgreens stores in Apex and Durham on May 16, 2016.
Immediately following the May 16 robbery in Durham, law enforcement performed a traffic stop on the vehicle the defendants traveled in and found evidence from the North Carolina robberies. From subsequent investigation, law enforcement linked the defendants to the robberies in the Eastern District of Virginia. Defendants Cogdell, Jones and Mullen were also found to have participated in several more commercial robberies occurring in Hampton, Virginia, from October 2015 through April 2016.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Assistant U.S. Attorneys Stephen E. Anthony and David V. Harbach, II, prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-103.
Four Aliens Indicted on Immigration ViolationsRead the Press Release
RALEIGH – John Stuart Bruce, United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging JOSE MANUEL CARDONA-RODRIGUEZ, age 31, of Mexico, LUIS MIGUEL CURIEL-ACUNA, age 34, of Mexico, HOMERO SIERRA-VILLA, age 47, of Mexico, and IGNACIO VENTURA-MENDOZA, age 33, of Mexico, with Illegal Reentry of a Deported Alien.
If convicted of Illegal Reentry of a Deported Alien, CARDONA-RODRIGUEZ, SIERRA-VILLA, and VENTURA-MENDOZA would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
CURIEL-ACUNA is alleged to have been previously deported subsequent to an aggravated felony conviction (conspiracy to deliver cocaine). Therefore, if convicted, he faces a maximum imprisonment term of twenty years.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by the Department of Homeland Security, specifically, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Former correctional officer charged with using force to punish detainees and submitting a false incident reportRead the Press Release
ELKINS, WEST VIRGINIA - Adam Joseph Neal Graham, 26, of Elkins, West Virginia, was charged in a three-count indictment with violating the rights of two pretrial detainees at the Tygart Valley Regional Jail (TVRJ) and obstructing justice, Acting United States Attorney Betsy Steinfeld Jividen announced.
The indictment charges that Graham, while serving as a TVRJ correctional officer, assaulted and injured two pretrial detainees, and then submitted a false incident report to cover up his use of unlawful force. The indictment alleges that Graham assaulted a detainee on February 15, 2015, and assaulted a second detainee on March 9, 2015.
If convicted of assaulting a pretrial detainee, Graham faces up to 10 years for each violation. Graham also faces up to 20 years for allegedly submitting a false incident report.
Special Litigation Counsel Gerard Hogan and Trial Attorney Olimpia E. Michel of the Civil Rights Division’s Criminal Section, and Assistant U.S. Attorney Sarah W. Montoro of the Northern District of West Virginia are prosecuting the case on behalf of the government. The Federal Bureau of Investigation is investigating the case.
An indictment is merely an accusation and the defendant is presumed innocent until proven guilty.
Former U.S. Postal Carrier Pleads Guilty to Detaining and Delaying MailRead the Press Release
CHARLOTTE, N.C. – Gary Wayne Collins, 53, of Forest, City, N.C., appeared before U.S. Magistrate Judge Dennis Howell on Tuesday, February 21, 2017, and pleaded guilty to detaining and delaying U.S. mail in Cleveland and Rutherford Counties, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
Paul L. Bowman, Area Special Agent in Charge of the United States Postal Service, Office of Inspector General (USPS-OIG) joins U.S. Attorney Rose in making today’s announcement.
According to filed court documents and the plea hearing, on April 15, 2014, a witness observed Collins placing several tubs of mail behind a dumpster in Shelby, N.C. The witness notified the local Postmaster and the tubs of mail were recovered. The Postmaster determined that the recovered tubs contained deliverable mail for addresses on Collins’ delivery route, who at the time was a U.S. Postal Service Rural Carrier. Court records indicate that when postal agents interviewed Collins two days later, Collins told the agents that he had never intended to dump any mail and that he had left the tubs near the dumpster only temporarily, intending to return later to pick them up. Collins also told the agents that he had never thrown away any mail or stored it at his residence. The mail recovered on April 15, 2014, comprised 1,513 pieces, including 628 pieces of First-Class mail and three parcels.
According to court documents, in May 2014, postal agents discovered more than 1,800 pieces of undelivered mail hidden in Collins’ residence and his vehicle. The undelivered mail included 134 pieces of First-Class mail dating as far back as April 2000. Court records indicate that postal agents also found additional pieces of undelivered mail inside a partially-collapsed outbuilding located on Collins’ property. to court records, the Postal Service used a backhoe to remove two full-sized dump truck loads of mail from the outbuilding. That mail could not be salvaged due to extensive weather damage and had to be destroyed. Collins admitted in court yesterday that for approximately ten years he had been bringing to his residence the mail that he had not delivered.
Collins pleaded guilty to one count of unlawfully destroying, detaining and delaying U.S. mail, a charge that carries a maximum penalty of five years in prison and a $250,000 fine. Collins was released on bond following his plea hearing. A sentencing date has not been set yet.
The investigation was led by USPS-OIG. Assistant U.S. Attorney Richard Edwards, of the U.S. Attorney’s Office in Asheville, is prosecuting the case.
Former Rochester Postal Employee Arrested for Stealing Smartphones from the MailRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
ROCHESTER, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Bobby Bullard, Jr., 35, of Rochester, NY, was arrested and charged in a criminal complaint with theft by a government employee. The charge carries a maximum sentence of 10 years in prison and a fine of $250,000.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that according to the complaint, the defendant used to work as a Mail Handler Associate at the U.S. Mail Processing and Distribution Center in Rochester. While employed, Bullard was seen rifling through packages that he was supposed to be sorting. Special Agents from the Postal Service’s Office of Inspector General conducted surveillance on three separate occasions and recorded Bullard taking packages containing smart phones off the sorting conveyor belt. Agents watched as the defendant covertly opened the packages, removed the smart phones inside, put them in his pocket, and then threw the empty packaging materials away. Agents recovered several cell phones from Bullard at the time of contact and also recovered the discarded packages. Bullard is no longer a Postal Service employee.
The criminal complaint is the culmination of an investigation by Special Agents of the United States Postal Service, Office of Inspector General, under the direction of Special Agent-in-Charge is Monica Weyler.
Bullard made an initial appearance today before U.S. Magistrate Judge Marian W. Payson and was released to the Irondequoit Police Department to answer outstanding traffic warrants. The defendant will return to Federal Court on March 21, 2017, at 9:00 a.m.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #
Former KC Woman Sentenced for Fraud Scheme to Steal Victim's Lottery WinningsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Kansas City, Mo., woman was sentenced in federal court today for engaging in a fraud scheme in which she stole $440,000 in lottery winnings from her victim as part of a scheme that resulted in a total loss of more than $640,000.
Freya Pearson, 44, of Conyers, Ga., formerly of Kansas City, was sentenced by U.S. District Judge Beth Phillips to five years in federal prison without parole. The court also ordered Pearson to pay $640,667 in restitution to her victims.
On Oct. 27, 2016, Pearson was found guilty at trial of three counts of wire fraud, four counts of money laundering, one count of tax evasion and one count of making false statements to the Department of Housing and Urban Development (related to her application for federal housing benefits).
According to evidence presented during the trial, Pearson convinced her 61-year-old victim to transfer $480,000 into the bank account of an organization called Recidivism at Work (RAW), a nonprofit entity Pearson established, which was opened the day before her victim made the first wire transfer. This victim, who had been working as a housekeeper at Research Hospital before going on disability and who lived in public housing, won $2.4 million in the Missouri Lottery in 2008. After setting money aside for taxes then purchasing a home for herself, a home for a daughter and a car for another daughter, she established an annuity to provide approximately $30,000 per year for the rest of her life. As a result of Pearson’s fraud scheme, however, she is now financially insolvent and had to take a reverse mortgage in order to keep her home.
Pearson convinced her victim she was a friend and falsely represented herself as a financial advisor. Pearson instructed the victim to withdraw her lottery winnings from the annuity account. The victim made three wire transfers in April, May and June 2010 to deposit the funds into Pearson’s RAW checking account. Whether the money was an investment or a business loan, Pearson materially omitted to disclose to the victim that she would use the money to gamble and for her own personal expenses. A partial summary of Pearson’s gambling expenses, which began the day after the first wire transfer, was over $96,000. Pearson also spent $12,000 on travel, purchased three vehicles (a Cadillac Escalade, a Pontiac Sunfire and a Chevrolet Tahoe) and spent money on restaurants, shopping and other personal expenses while she lived in the St. Louis, Mo., metropolitan area. Pearson made payments to her victim of approximately $1,200 per month for a little over a year before she quit paying her altogether – a total of approximately $38,000. No identifiable money was used for the nonprofit entity, and little for any business purpose.
When she met the victim in 2010, Pearson was unemployed and her only income came from child support and Social Security benefits for one of her children. While she was receiving hundreds of thousands of dollars from her victim’s lottery winnings, Pearson applied for and received federally subsidized housing benefits under the Section 8 program meant to assist low income residents. In March 2010, Pearson applied with the Weston Housing Authority (in Platte County, Mo.) for Section 8 benefits – claiming that she was unemployed and homeless. Based on these representations, the Weston Housing Authority arranged for the rental of a duplex in Kansas City-North, with housing authority paying $875 per month and Pearson paying $200 per month. Although Pearson didn’t actually live in the Kansas City residence, she continued to receive federal benefits after moving to Orange County, Calif., in March 2012, until she was terminated from program for fraud in 2014. Pearson received a total of $76,837 in federal housing benefits over four years. In 2011, Pearson also began receiving welfare and/or food stamp benefits.
Pearson filed for Chapter 7 bankruptcy protection on Dec. 2, 2010, but did not disclose the RAW bank accounts, which had total balances of $56,506. Pearson received a discharge of her debts (totaling more than $90,000) on March 15, 2011.
Pearson filed no tax return for tax year 2010, and thus did not pay income taxes of $122,000 that would have been due on the $441,830 of taxable income Pearson received as a result of defrauding her victim.
Pearson defrauded the victim of a total of $441,830. Pearson evaded $122,000 in federal income tax. Pearson defrauded the Weston Housing Authority of $76,837 in housing benefits. Pearson thus caused a total loss of at least $640,667.
According to court documents, while on bond awaiting trial in this case, Pearson also made false statements on a credit application at a Conyers, Ga., car dealership in order to purchase a vehicle. Pearson listed a false address and false employment and income on her credit application.
This case was prosecuted by Assistant U.S. Attorneys Kathleen D. Mahoney and Jane Pansing Brown. It was investigated by the Kansas City, Mo., Police Department, IRS-Criminal Investigation and the Dept. of Housing and Urban Development, Office of Inspector General.
Former High School Photographer Pleads Guilty to Internet StalkingRead the Press Release
LITTLE ROCK— Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Raymond R. Parmer, Jr., special agent in charge of Homeland Security Investigations, New Orleans, announced today the guilty plea of Christian Trey Ashcraft, 41, of White Hall. Ashcraft is the owner of Ashven photography and a former high school photographer in the Pine Bluff, Arkansas, area.
On January 5, 2016, Ashcraft was charged with one count of lying to a federal agent and one count of internet stalking. Wednesday, before United States District Court Judge Kristine G. Baker, Ashcraft pleaded guilty to internet stalking in exchange for the dismissal of the count charging him with lying to a federal agent. Judge Baker will sentence Ashcraft at a later date.
The charges in the Indictment are based on an investigation that began in August 2014, when a minor disclosed to the Maumelle Police Department that Seth Ganahl had previously asked her to engage in illicit sexual activity on multiple occasions. A search of Ganahl’s email account revealed that he was emailing with the user of [email protected], who was purporting to be a 15-year-old minor female.
During the email exchange, Ganahl repeatedly asked the user of [email protected] to send him sexually explicit photographs. Agents then developed information that led them to believe that Christian Trey Ashcraft was the real user of [email protected]. Agents interviewed Ashcraft on December 30, 2014, and he denied being the user of [email protected].
On April 15, 2016, Judge Baker sentenced Ganahl to 240 months’ imprisonment for production of child pornography.
On January 13, 2015, agents obtained a federal search warrant for [email protected]. In analyzing the contents of the email account, agents learned that Ashcraft communicated with multiple individuals while posing as different young teenage girls.
Agents also observed that Ashcraft, using [email protected], sent sexually explicit photographs of an adult female, referred to in the Indictment as J.D., pretending to be her to several individuals over a significant period of time. Agents discovered the identity of J.D. and subsequently interviewed her.
During the interview, J.D., who is now in her mid-twenties, disclosed that she met an individual who identified himself as “Chad Reynolds” on a website known as hotornot.com when she was 15-years-old. Between the time J.D. was 15- and 18-years-old, “Chad Reynolds” and J.D. engaged in an online relationship without J.D. ever seeing “Chad Reynolds” in person.
J.D. explained to investigators that after she turned 18, “Chad Reynolds” asked her to take part in a photo shoot at a local hotel. Upon arrival at the hotel, “Chad Reynolds” was not there, but Ashcraft, posing as a photographer friend of “Chad Reynolds,” told J.D. that “Chad” wanted her to start the photo shoot without him there. During the photo shoot the photographer had J.D. take multiple sexually explicit photographs. J.D. identified a photograph of Christian Trey Ashcraft as the photographer.
Soon after the photo shoot, J.D. ended her online relationship with “Chad Reynolds.” After J.D. ended her online relationship, the sexually explicit photographs taken from the hotel room were sent to J.D.’s acquaintances from an individual purporting to be J.D via the [email protected] account.
Ashcraft later admitted to being the user of [email protected] and sending the sexually explicit images of J.D., while pretending to be her. A search of Ashcraft’s computer revealed approximately 800 images of J.D., many of which were sexually explicit.
“As Mr. Ashcraft has learned, you cannot commit crimes and hide behind apparent anonymity on the internet,” Thyer said. “These type of stalking crimes are serious, and can ruin people’s lives. We will continue to seek out and punish those who prey on the innocent and vulnerable on the internet, and continue to ask all parents to closely monitor their children’s internet use.”
Internet stalking, a violation of 18 U.S.C. § 2261A(2)(B), carries a penalty of not more than five years’ imprisonment, not more than three years of supervised release, and a fine of up to $250,000. This investigation was conducted by the Arkansas State Police and HSI. It is being prosecuted by Assistant United States Attorney Kristin Bryant.
Former Detroit Police Lieutenant, Officer Sentenced for Conspiracy to Obtain Property by ExtortionRead the Press Release
A former lieutenant and crew chief from the now-disbanded Narcotics Unit of the Detroit Police Department were sentenced today following their convictions for conspiring to rob drug dealers and to steal drugs and money obtained in police searches, announced U.S. Attorney Barbara L. McQuade.
Joining McQuade in the announcement were Special Agent in Charge David P. Gelios of the Federal Bureau of Investigation’s Detroit Division, Chief James E. Craig of the Detroit Police Department, Manny Muriel, Special Agent in Charge of the Detroit office of the Internal Revenue Service – Criminal Investigation and Special Agent in Charge Timothy Plancon, Drug Enforcement Administration, Detroit Field Division.
Lt. David Hansberry, 35, was sentenced to 12 ½ years in prison and Officer Bryan Watson, 47, was sentence to 9 years in prison. Both Defendants were also ordered to serve two year terms of supervised release upon completion of their prison sentences. Watson was also ordered to pay a $2,000 fine. The two were convicted on charges of conspiracy to interfere with commerce by extortion and robbery following a five-week trial conducted before U.S. District Judge Stephen J. Murphy.
According to the evidence presented at trial, the defendants arranged drug transactions with civilians, including confidential sources, so that they could rob and extort them. The defendants allegedly carried out traffic stops and fake arrests, and then stole drugs, money and personal property from their victims. Hansberry and Watson used their status as law enforcement officers to assist in their scheme, by driving police vehicles, activating lights on their police vehicles, wearing police-issued attire, displaying official badges and carrying firearms. Hansberry and Watson also identified themselves as police officers to coerce their victims into complying with their demands and to encourage their victims to flee, leaving behind illegal drugs, money and personal property.
In addition, the evidence showed that Hansberry, who was a sergeant at the time, and Watson failed to log into evidence money and drugs seized during searches of homes. Instead, they split the proceeds and arranged for the sale of the drugs, sharing the proceeds generated by the sales. In one instance in July 2010, Hansberry and Watson participated in a drug seizure that netted more than $3 million, the largest cash seizure by the Detroit Police Department at that time. Only $2.2 million, however, was placed in the evidence room.
“Police officers who abuse their positions of trust must be held accountable so that they do not tarnish the badges of all of the thousands of police officers who serve with honor," McQuade said.
"While an unfortunate reminder that sometimes those in public service squander the trust placed in them by the public, today's sentences should not taint the outstanding work conducted every day by the Detroit Police Department to combat crime in city of Detroit,” said David P. Gelios, Special Agent in Charge, FBI Detroit Division. "The conclusion of this case highlights the continued importance of the work of the FBI-led Public Corruption Task Force, in coordination with our law enforcement partners, to aggressively investigate allegations of public officials who abuse their positions for personal gain."
The case was investigated by the FBI Detroit Area Public Corruption Task Force, in collaboration with the Detroit Police Department’s Office of Internal Affairs and the Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Attorneys Sheldon Light and J. Michael Buckley.
Former Correctional Officer in West Virginia Charged with Using Force to Punish Detainees and Submitting a False Incident ReportRead the Press Release
Adam Joseph Neal Graham, 26, of Elkins, West Virginia, was charged in a three-count indictment with violating the rights of two pretrial detainees at the Tygart Valley Regional Jail (TVRJ) and obstructing justice. The indictment charges that Graham, while serving as a TVRJ correctional officer, assaulted and injured two pretrial detainees, and then submitted a false incident report to cover up his use of unlawful force. The indictment alleges that Graham assaulted a detainee on February 15, 2015, and assaulted a second detainee on March 9, 2015.
An indictment is merely an accusation and the defendant is presumed innocent until proven guilty. If convicted of assaulting a pretrial detainee in violation of 18 U.S.C. § 242, Graham faces up to 10 years in federal prison for each violation. Graham also faces up to 20 years in federal prison for submitting a false incident report in violation of 18 U.S.C. § 1519.
The case is being investigated by the FBI’s Pittsburgh Division. Special Litigation Counsel Gerard Hogan and Trial Attorney Olimpia E. Michel of the Civil Rights Division’s Criminal Section, and Assistant U.S. Attorney Sarah W. Montoro of the Northern District of West Virginia are prosecuting the case.
Federal and Local Authorities Caution New Mexicans Against Falling Victim to Tax ScamsRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez and Ismael Nevarez, Jr., Special Agent in Charge of IRS Criminal Investigation, in New Mexico and Arizona, held a press conference today to highlight schemes to steal taxpayers’ personal information and scam them out of their hard-earned money. They were joined by Chief Gorden E. Eden, Jr., of the Albuquerque Police Department and Undersheriff Greg Rees of the Bernalillo County Sheriff’s Department, whose agencies support IRS’s efforts to combat these fraudulent schemes and to educate taxpayers on how to avoid falling victim to con artists.
During the press conference, the federal and local officials discussed the three most common tax scams – phone scams, phishing and email scams, and identity theft – that taxpayers need to guard against:
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Phone Scams. Scams involving phone calls from criminals impersonating IRS agents continue to be an ongoing threat to taxpayers. The IRS has seen a surge in phone scams, which have become increasingly aggressive and threatening with con artists threatening taxpayers with arrest, deportation and license revocation. Scammers often demand money from victims to pay bogus tax bills and con the victims into sending cash, usually through wire transfers, or prepaid debit cards and gift cards. The IRS does not call taxpayers who owe taxes; it generally will mail bills to those taxpayers.
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Phishing/Email Scams. Scams involving fake emails and websites that appear to be from the IRS and are used to steal personal information. Criminals use fake emails and websites that appear legitimate but contain phony login pages in the hope that victims will provide money, passwords, Social Security numbers and other information that can be used to engage in identity theft. Scam emails can also be used to infect a taxpayer’s computer with malware that gives criminals access to the device, enabling them to access sensitive files. The IRS will never initiate contact with taxpayers by email about a bill or refund. Taxpayers should not click on an email claiming to be from the IRS.
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Identity Theft. Tax-related identity theft occurs when a criminal uses a stolen Social Security number or Individual Taxpayer Identification Number (ITIN) to file a tax return claiming a fraudulent refund. Undoing the damage caused by identity thieves is frustrating and complicated for victims, who often learn from the IRS that their identities have been stolen and misused. Identity thieves often use personal and financial information obtained through phone scams and phishing scams.
Although taxpayers encounter these fraudulent schemes throughout the year, scamming activity often peaks during tax-filing season, and taxpayers need to be constantly on their guard against these ploys, which continue to evolve and become increasingly sophisticated.
The harm to which taxpayers are exposed is illustrated by the losses suffered by victims of phone scams. The Treasury Inspector General for Tax Administration (TIGTA) reports that between Oct. 2013 and Jan. 3, 2017, over 100,000 known victims have collectively paid more than $54 million as a result of phone scams. This includes 58 known victims in New Mexico who lost a total of $172,167. These numbers, however, do not include individuals who have not reported their victimization because they are embarrassed about falling for scams; they do not know that they have been victimized; or they fail to report because they have no expectation of getting their money back.
“We want to put New Mexicans on notice about the types of tax scams out there so they can take measures to protect themselves,” said U.S. Attorney Damon P. Martinez. “We also want to put these unscrupulous scammers on notice that what they are doing is criminal and we will make every effort to prosecute them and hold them accountable.”
“Don’t be fooled by phone calls or emails by criminals impersonating IRS agents with threats or promises of a big refund if you provide them with your private information,” said Special Agent in Charge Ismael Nevarez, Jr., of IRS Criminal Investigation. “If you are surprised to get a call or email from the IRS, it almost certainly is not the real IRS. It is almost certainly a scam. The IRS generally contacts taxpayers by mail.”
“It is tax season and that means tax scam season,” said Chief Gorden E. Eden, Jr., of the Albuquerque Police Department. “Scams can occur over the phone but more are occurring through your own email. Always safeguard your personal information.”
“The Bernalillo County Sheriff’s Department fully supports the IRS’s efforts to identify, investigate and prosecute the criminals who prey on unsuspecting taxpayers,” said Undersheriff Greg Rees of the Bernalillo County Sheriff’s Department.
Taxpayers can report tax-related schemes, scams, identity theft and fraud by contacting the Treasury Inspector General for Tax Administration at: https://www.treasury.gov/tigta/ or 800-366-4484. Additional information about tax scams is available at IRS.gov and on IRS social media sites, including YouTube http://www.youtube.com/irsvideos and Tumblr http://internalrevenueservice.tumblr.com, where you can search “scam” to find all the scam-related posts.
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Federal Jury Returns Guilty Verdicts in 39’ers Racketeering TrialRead the Press Release
U.S. Attorney Kenneth A. Polite announced the conviction of defendants JASMINE PERRY, age 26; LEROY PRICE, age 31; ASHTON PRICE, age 25; ALONZO PETERS, age 27; MCCOY WALKER, age 26; TERRIOUES OWNEY, age 30; EVANS LEWIS, age 25; CURTIS NEVILLE, age 24; SOLOMON DOYLE, age 31; and, DAMIAN BARNES, age 28, all of New Orleans, following a six-week trial.
COUNT
CHARGE
DEFENDANTS
PENALTIES
1
Conspiracy to violate the Racketeer Influence and Corrupt Organization Act (RICO)
All defendants guilty of RICO
PERRY – Guilty in murders of
Kendall Faibvre, and Gregory Keys;
Not guilty in murders of Anthony Charles Brown, Jr., Terrance Dennis, and Littlejohn Haynes,
LEROY PRICE – Guilty in murders of Lester Green, Donald Daniels, Elton Fields, and Michael Marshall
ASHTON PRICE – Guilty in murders of Kendall Faibvre, and Michael Marshall
Not guilty in murders of Rayshon Jones, Anthony Charles Brown, Jr., and Terrance Dennis
PETERS – Not guilty in murder of Kendall Faibvre
WALKER – Guilty in murders of Lester Green, Jerome Hampton, and Renetta Lowe
OWNEY – Guilty in murders of Lester Green, Donald Daniels, Elton Fields, Jerome Hampton, and Renetta Lowe
LEWIS –Guilty in murder of Littlejohn Haynes;
Not guilty in murders of Lester Green and Anthony Brown, Jr.
NEVILLE – Guilty in murder of Littlejohn Haynes;
Not guilty in murder of Hansel Picard
DOYLE – Not guilty in murder of Littlejohn Haynes
BARNES – Not guilty in murder of Floyd Moore
Maximum sentence of life imprisonment;
3 years of supervised release; maximum $250,000 fine; $100 special assessment
(if special finding that defendant committed a murder)
Otherwise,
Maximum sentence of 20 years imprisonment, 3 years supervised release; maximum $250,000 fine; $100 special assessment
2
Conspiracy to distribute controlled substances
Below defendants are all guilty of 1 kilogram or more of heroin and 280 grams or more of cocaine base
LEROY PRICE, ASHTON PRICE, PETERS, WALKER, NEVILLE and
BARNES
10 years to life imprisonment;
minimum of 5 years supervised release;
maximum $10,000 fine; $100 special assessment
3
Conspiracy to use and carry and to possess firearms
Guilty: PERRY, LEROY PRICE, ASHTON PRICE, PETERS, WALKER, OWNEY, NEVILLE, and BARNES
Not guilty: DOYLE
Maximum of 20 years imprisonment;
maximum of 5 years supervised release;
maximum fine of $250,000; $100 special assessment
4
Murder in aid of racketeering
(Kendall Faibvre)
Guilty: PERRY and ASHTON PRICE
Not Guilty: PETERS
Mandatory life imprisonment
5
Causing death through the use of a firearm
(Kendall Faibvre)
Guilty: PERRY and ASHTON PRICE
Not guilty: PETERS
Maximum sentence of life imprisonment;
maximum 5 years supervised release;
maximum $250,000 fine; $100 special assessment
6
Assault with a dangerous weapon in aid of racketeering
(Jasmine Jones)
Guilty: PERRY and ASHTON PRICE
Not guilty: PETERS
Maximum 20 years imprisonment; 3 years of supervised release; maximum $250,000 fine; $100 special assessment
7
Use and carrying of a firearm during and in relation to a crime of violence and a drug trafficking crime
(Jasmine Jones)
Guilty: PERRY and ASHTON PRICE
Not guilty: PETERS
Not less than 10 years consecutive;
maximum 5 years supervised release; maximum $250,000 fine; $100 special assessment
8
Assault with a dangerous weapon in aid of racketeering
(Elton Williams)
Not guilty: WALKER
Maximum 20 years imprisonment; 3 years of supervised release; maximum $250,000 fine; $100 special assessment
9
Assault with a dangerous weapon in aid of racketeering
(Quiniece Noble)
Not guilty: WALKER
Maximum 20 years imprisonment; 3 years of supervised release; maximum $250,000 fine; $100 special assessment
10
Use and carrying of a firearm during and in relation to a crime of violence and a drug trafficking crime
(Elton Williams)
Not guilty: WALKER
Maximum of life imprisonment; 5 years supervised release; $250,000 fine; $100 special assessment
11
Use and carrying of a firearm during and in relation to a crime of violence and a drug trafficking crime
(Quiniece Noble)
Not guilty: WALKER
Maximum of life imprisonment; 5 years supervised release; $250,000 fine; $100 special assessment
12
Murder in aid of racketeering
(Rayshon Jones)
Not guilty: ASHTON PRICE
Mandatory life
13
Causing death through the use of a firearm
(Rayshon Jones)
Not guilty: ASHTON PRICE
Maximum sentence of life imprisonment;
maximum 5 years supervised release;
maximum $250,000 fine; $100 special assessment
14
Murder in aid of racketeering
(Lester Green)
Guilty: LEROY PRICE, WALKER, and OWNEY
Not guilty: LEWIS
Mandatory life
15
Causing death through the use of a firearm
(Lester Green)
Guilty: OWNEY
Not Guilty: LEROY PRICE, WALKER, and LEWIS
Maximum sentence of life imprisonment;
maximum 5 years supervised release;
maximum $250,000 fine; $100 special assessment
16
Assault with a dangerous weapon in aid of racketeering
(Jamal Smith)
Guilty: LEROY PRICE, WALKER, and OWNEY
Not guilty: LEWIS
Maximum 20 years imprisonment; 3 years of supervised release; maximum $250,000 fine; $100 special assessment
17
Use and carrying of a firearm during and in relation to a crime of violence and a drug trafficking crime
(Jamal Smith)
Guilty: OWNEY
Not guilty: LEROY PRICE, WALKER, and LEWIS
Maximum of life imprisonment; 5 years supervised release; $250,000 fine; $100 special assessment
18
Murder in aid of racketeering
(Donald Daniels)
Guilty: LEROY PRICE and OWNEY
Mandatory life
19
Causing death through the use of a firearm
(Donald Daniels)
Guilty: OWNEY
Not guilty: LEROY PRICE
Maximum sentence of life imprisonment;
maximum 5 years supervised release;
maximum $250,000 fine; $100 special assessment
20
Murder in aid of racketeering
(Anthony Charles Brown, Jr.)
Not guilty: PERRY, ASHTON PRICE, and LEWIS
Mandatory life
21
Causing death through the use of a firearm
(Anthony Charles Brown, Jr.)
Not guilty: PERRY, ASHTON PRICE, and LEWIS
Maximum sentence of life imprisonment;
maximum 5 years supervised release;
maximum $250,000 fine; $100 special assessment
22
Murder in aid of racketeering
(Elton Fields)
Guilty: LEROY PRICE and OWNEY
Mandatory life
23
Causing death through the use of a firearm
(Elton Fields)
Guilty: OWNEY
Not guilty: LEROY PRICE
Maximum sentence of life imprisonment;
maximum 5 years supervised release;
maximum $250,000 fine; $100 special assessment
24
Murder in aid of racketeering
(Jerome Hampton)
Guilty: WALKER and OWNEY
Mandatory life
25
Causing death through the use of a firearm
(Jerome Hampton and Renetta Lowe)
Guilty: WALKER and OWNEY
Maximum sentence of life imprisonment;
maximum 5 years supervised release;
maximum $250,000 fine; $100 special assessment
26
Murder in aid of racketeering
(Renetta Lowe)
Guilty: WALKER and OWNEY
Mandatory life
27
Murder in aid of racketeering
(Terrance Dennis)
Not guilty: PERRY and ASHTON PRICE
Mandatory life
28
Causing death through the use of a firearm
(Terrance Dennis)
Not guilty: PERRY and ASHTON PRICE
Maximum sentence of life imprisonment;
maximum 5 years supervised release;
maximum $250,000 fine; $100 special assessment
29
Murder in aid of racketeering
(Littlejohn Haynes)
Guilty: LEWIS and NEVILLE
Not Guilty: PERRY and DOYLE
Mandatory life
30
Causing death through the use of a firearm
(Littlejohn Haynes)
Guilty: LEWIS and NEVILLE
Not guilty: PERRY and DOYLE
Maximum sentence of life imprisonment;
maximum 5 years supervised release;
maximum $250,000 fine; $100 special assessment
31
Murder in aid of racketeering
(Floyd Moore)
Not guilty: BARNES
Mandatory life
32
Causing death through the use of a firearm
(Floyd Moore)
Not guilty: BARNES
Maximum sentence of life imprisonment;
maximum 5 years supervised release;
maximum $250,000 fine; $100 special assessment
33
Assault with a dangerous weapon in aid of racketeering
(Albert Hardy)
Guilty: PERRY and NEVILLE
Maximum 20 years imprisonment; 3 years of supervised release; maximum $250,000 fine; $100 special assessment
34
Use and carrying of a firearm during and in relation to a crime of violence and a drug trafficking crime
(Albert Hardy)
Guilty: PERRY and NEVILLE
Maximum of life imprisonment; 5 years supervised release; $250,000 fine; $100 special assessment
35
Assault with a dangerous weapon in aid of racketeering
(Kelvin Baham)
Guilty: PERRY and NEVILLE
Maximum 20 years imprisonment; 3 years of supervised release; maximum $250,000 fine; $100 special assessment
36
Use and carrying of a firearm during and in relation to a crime of violence and a drug trafficking crime
(Kelvin Baham)
Guilty: PERRY and NEVILLE
Maximum of life imprisonment; 5 years supervised release; $250,000 fine; $100 special assessment
37
Assault with a dangerous weapon in aid of racketeering
(Carrie Henry)
Guilty: PERRY and NEVILLE
Maximum 20 years imprisonment; 3 years of supervised release; maximum $250,000 fine; $100 special assessment
38
Use and carrying of a firearm during and in relation to a crime of violence and a drug trafficking crime
(Carrie Henry)
Guilty: PERRY and NEVILLE
Maximum of life imprisonment; 5 years supervised release; $250,000 fine; $100 special assessment
39
Murder in aid of racketeering
(Gregory Keys)
Guilty: PERRY
Mandatory life
40
Causing death through the use of a firearm
(Gregory Keys)
Guilty: PERRY
Maximum sentence of life imprisonment;
maximum 5 years supervised release;
maximum $250,000 fine; $100 special assessment
41
Assault with a dangerous weapon in aid of racketeering
(Kendrick Smothers)
Guilty: PERRY
Maximum 20 years imprisonment; 3 years of supervised release; maximum $250,000 fine; $100 special assessment
42
Use and carrying of a firearm during and in relation to a crime of violence and a drug trafficking crime
(Kendrick Smothers)
Guilty: PERRY
Maximum of life imprisonment; 5 years supervised release; $250,000 fine; $100 special assessment
43
Possess with intent to distribute heroin
Guilty: NEVILLE
Maximum 20 years imprisonment;
Minimum 3 years supervised release;
$1,000,000 fine
44
Possession of a firearm in furtherance of a drug trafficking crime
Guilty: NEVILLE
5 years to life imprisonment; 3 years supervised release; $250,000 fine; $100 special assessment
45
Murder in aid of racketeering
(Michael Marshall
Guilty: LEROY PRICE and ASHTON PRICE
Mandatory life
46
Causing death through the use of a firearm
(Michael Marshall)
Guilty: ASHTON PRICE
Not guilty: LEROY PRICE
Maximum sentence of life imprisonment;
maximum 5 years supervised release;
maximum $250,000 fine; $100 special assessment
47
Murder of a federal informant
(Michael Marshall)
Guilty: LEROY PRICE and ASHTON PRICE
Maximum of life imprisonment;
Maximum of 5 years supervised release; $250,000 fine; $100 special assessment
U.S. Attorney Polite stated, "Today's guilty verdicts represent important victories for the victims and communities that these defendants once terrorized.”
Special Agent in Charge of the FBI Jeff Sallet stated, "Today's verdict regarding the violent and ruthless 39ers gang members clearly demonstrates that our city and its citizens will not tolerate this type of activity anymore. Through dedicated partnerships with federal, state, and local law enforcement, as well as the U.S. Attorney's Office, the 39ers gang was brought to justice and will ultimately be held accountable for their many transgressions."
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation New Orleans Gang Task Force, Bureau of Alcohol, Tobacco, Firearm and Explosives, New Orleans Police Department, and the Jefferson Parish Sheriff’s Office. Assistant Attorneys Myles Ranier, David Haller, Brittany Reed, and Jeff Sandman were in charge of the prosecution.
Federal Court Shuts Down South Florida-Area Tax Return PreparerRead the Press Release
Preparer Allegedly Claimed False Earned Income Tax and Education Credits for His Customers
A federal court in Fort Lauderdale, Florida has permanently barred Billy Philippe from preparing federal tax returns for others, the Justice Department announced today. In its complaint, the government alleged that Billy Philippe of Broward County, Florida prepared fraudulent tax returns for his customers. The court found that, for purposes of entering an injunction only, Philippe engaged in tax return preparer conduct subject to penalty under the tax laws. Philippe agreed to the civil injunction order entered against him, which requires him to turn over to the United States a list of all persons for whom he prepared federal tax returns since 2012. The court also authorized the United States to monitor Philippe’s compliance with the terms of the injunction.
The government’s complaint against Philippe, the majority owner of Advantage Tax Center Plus Inc., alleged that he prepared income tax returns for customers that fraudulently overstated the amount of the refunds due by falsely claiming refundable credits, including the Earned Income Tax Credit (EITC) and credits for education expenses. The complaint further alleged that Philippe frequently claimed fraudulently inflated wages or self-employment income in order to maximize the amount of EITC, a customer claimed.
According to the complaint, Philippe prepared at least 899 returns from 2011 and 2015. The complaint alleged that audits of 44 returns prepared in 2014 and 2015 revealed that Philippe claimed credits his customers were not entitled to take and/or understated their correct tax liability by more than $300,000 in the aggregate.
The Internal Revenue Service (IRS) is reminding taxpayers that the 2017 individual income tax return filing season began on Jan. 23, and there is information available on the IRS’s website. Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2017 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Philippe Permanent InjunctionFBI Impersonator Sentenced to Federal PrisonRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Anthony Tyrone Jones (36, Jacksonville) to five years and six months in federal prison for impersonating an FBI agent, wire fraud, and failure to appear. He was also ordered to pay restitution in the amount of $21,700 to a victim of his offenses.
Jones pleaded guilty on February 29, 2016.
According to court documents, Jones falsely represented himself to be an investment advisors claiming that he had helped another individual become a millionaire. In February 2011, at Jones’s direction, one victim provided him with $21,700 to invest in the stock market. Instead of investing the funds, Jones cashed the victim’s checks and used the money for his own personal enjoyment.
Jones defrauded another individual by posing as an FBI agent to induce a woman to have sex with him at no charge after he had previously promised to pay her for sex. Jones was arrested on January 9, 2013, and released on bond subject to electronic monitoring. On April 23, 2013, he removed his monitoring bracelet and absconded. He remained a fugitive until his capture on August 13, 2015, by the U.S. Marshals Service in Jacksonville.
This case was investigated by the Federal Bureau of Investigation and the U.S. Marshals Service. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
Eighth Conspirator in Treasure Valley Drug Distribution Ring Sentenced to Seven YearsRead the Press Release
BOISE – Jason Lee Burgess, 44, of Boise, Idaho, was sentenced today to 84 months imprisonment, U.S. Attorney Wendy J. Olson announced. After his release from prison, Burgess will be placed on supervised release for three years. Burgess was originally indicted on December 8, 2015, and entered his guilty plea to a superseding information on November 16, 2016.
Burgess, one of eleven individuals involved in a drug distribution ring, aided a co-defendant in selling methamphetamine to an undercover officer. The drug distribution ring was led by Stacy Wilfong, who is now serving over 18 years in federal prison for his leadership role in the conspiracy. In addition to methamphetamine, Wilfong and his co-conspirators sold heroin, and a synthetic controlled substance called Alpha-pyrrolidinopentiophenone, known as "a-PVP," or “bath salts” to individuals throughout the Treasure Valley.
Six other co-conspirators have already been sentenced. Anthony “Tony” Kitchen, 47, is serving a 71-month sentence in federal prison, Jocelin Jessica Gonzalez, 19, is serving 40 months, Elizabeth Ann Gaytan, 37, is serving 100 months, Regina Wade, 50, is serving 41 months, Breannyn Nicole Pederson, 25, is serving 18 months, and Isela Garza, 36, is serving 48 months.
Two co-defendants are awaiting sentencing. David Anthony Wales, 31, of Boise is scheduled to be sentenced on June 14, 2017, and Adam William Dillon, 28, of Nampa is scheduled to be sentenced on March 8, 2017. One co-defendant, John Matthew Caviness, Jr., 34, of Caldwell, is scheduled to plead guilty on February 23, 2017.
These cases are the result of a joint investigation by the Treasure Valley Metro Violent Crime Task Force and the Organized Crime and Drug Enforcement Task Force (OCDETF). The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
These cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Eight Defendants Charged in Manhattan Federal Court with Narcotics Trafficking in the BronxRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, James J. Hunt, Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), today announced the unsealing of an Indictment charging a total of eight defendants with engaging in the distribution of crack cocaine and marijuana in the vicinity of the Soundview Houses housing project in the 43rd Precinct, in the Bronx, New York. One of the defendants, ELLIOT JAMES, a/k/a “L Boogie,” a/k/a “Ace,” was also charged with using a firearm in furtherance of his drug trafficking crimes. Seven defendants were arrested today, and one defendant remains at large. The seven defendants who are in custody will be presented and arraigned before U.S. Chief Magistrate Judge Debra Freeman later today. The case is assigned to U.S. District Judge Naomi Reice Buchwald.
Manhattan U.S. Attorney Preet Bharara said: “The Soundview Houses residents deserve to live free of drug-dealing and guns in their neighborhood, something that the eight defendants charged today allegedly made difficult. We thank our partners at the DEA and NYPD for their efforts in this and other investigations aimed at keeping our communities safe from drugs and gun violence.”
DEA Special Agent in Charge James J. Hunt said: “These eight defendants allegedly made the Soundview Houses their stomping ground for drug trafficking. No one chooses to live next door to drug dealers and today’s arrests have paved ground for a safer neighborhood with less drugs and drug-related crimes.”
Police Commissioner James P. O’Neill said: “As alleged, these individuals distributed narcotics in and around the Soundview Houses and by doing so, endangered the safety of surrounding residents with their criminal enterprise. An investigation conducted by the NYPD’s Gun Violence Suppression Division and our law enforcement partners strategically targeted this illegal activity and as a result, effected the arrests of several individuals responsible for trafficking narcotics. I commend the work of the investigators and prosecutors who committed themselves to this investigation.”
As alleged in the Indictment unsealed today in Manhattan federal court[1]:
Between 2014 and February 2017, ELLIOT JAMES, a/k/a “L Boogie,” a/k/a “Ace,” JAMEL DAVIS, a/k/a “Pootie,” TYLER MASSEY, a/k/a “Gordo,” DONOVAN MOSS, a/k/a “Don,” JONATHAN NUNEZ, a/k/a “Munna,” BRANDON RAMSEUR, a/k/a “BR,” JONATHAN REYES, a/k/a “Grillz,” and JAMEL SIMS, a/k/a “Jamal Brown,” conspired to sell crack cocaine and marijuana in the vicinity of the Soundview Houses in the Bronx. During the course of the conspiracy, the defendants sold crack cocaine to confidential informants and undercover law enforcement officers on numerous occasions. Certain defendants also sold crack cocaine to the undercover officers on behalf of their co-conspirators or worked together to complete the sales to the undercover officers.
* * *
The defendants face maximum terms of life in prison and mandatory minimum terms of 10 years in prison. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the Court.
A chart containing the names, ages, and residences of the defendants who were arrested today is below.
Mr. Bharara praised the outstanding investigative work of the DEA and the NYPD.
These cases are being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Michael Longyear, Jessica Fender, and Scott Hartman are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
United States v. Elliot James, et al.
NAME
AGE
RESIDENCE
Elliot James, a/k/a “L Boogie,” a/k/a “Ace”
27
Bronx, NY
Jamel Davis, a/k/a “Pootie”
25
Bronx, NY
Tyler Massey, a/k/a “Gordo”
22
Bronx, NY
Donovan Moss, a/k/a “Don”
22
Bronx, NY
Jonathan Nunez, a/k/a “Munna”
19
Bronx, NY
Brandon Ramseur, a/k/a “BR”
19
Bronx, NY
Jonathan Reyes, a/k/a “Grillz”
21
Bronx, NY
Jamel Sims, a/k/a “Jamal Brown”
25
Bronx, NY
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Edwardsville Man Charged in O'Fallon, Illinois Bank RobberyRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that on February 16, 2017, Marcus J. Thornton, a thirty-six-year-old man from Edwardsville, Illinois, was charged by complaint in United States District Court, in East St. Louis, with Bank Robbery. Thornton, who on February 21, 2017, made his first appearance in United States District Court, faces up to 20 years’ in prison, a fine of up to $250, 000, and not more than 3 years supervised release after his term of imprisonment, if convicted.
In court proceedings, and through charging documents, prosecutors alleged that on February 9, 2017, at approximately 1:11p.m., Thornton wearing a white construction dust mask, entered the U.S. Bank located at 400 South Lincoln Avenue O’Fallon, Illinois, brandished a silver and black semi-automatic handgun and demanded money from the bank tellers. Bank tellers gave the U.S. currency to Thornton, who then put the U.S. currency into a white plastic bag. Before leaving the bank, Thornton inserted what appeared to be a telescopic magnet into the white plastic bag, presumably to detect a tracking device. Thornton was witnessed driving off in a dark blue Sport Utility Vehicle. Law enforcement officers later reviewed U.S. Bank surveillance video and were able to locate and arrest Thornton.
A complaint is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent
of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
This case is being investigated by the Federal Bureau of Investigation and is assigned to Assistant United States Attorney Daniel T. Kapsak for prosecution.
Dubuque Man Detained on Federal Firearms Charge after Using Drugs and Refusing to Take a Drug TestRead the Press Release
Jeremy Michael Kieffer, 36, from Dubuque, Iowa, has been charged with one count of possessing a firearm while a marijuana user. The charge is contained in an Indictment filed last month in United States District Court in Cedar Rapids.
The Indictment alleges that on November 7, 2016, Kieffer possessed a Glock Model 22 .40 caliber pistol. The Indictment further alleges that Kieffer was a marijuana user when he possessed the pistol. If convicted, Kieffer faces a possible maximum sentence of ten years’ imprisonment, a $250,000 fine, $100 in special assessments, and 3 years of supervised release following any imprisonment.
Kieffer was initially released pending his trial but was arrested last week after a drug test showed he was positive for methamphetamine. Following his arrest, a probation officer asked Kieffer for a urine sample, which he was required to provide pursuant to an order of a United States Magistrate Judge. Kieffer refused to provide a urine sample. Following yesterday’s detention hearing, the Court detained Kieffer pending his trial in April 2017.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Tim Vavricek and was investigated by the Dubuque Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-1003. Follow us on Twitter @USAO_NDIA.
Doctor Pleads Guilty to Selling Prescriptions of Suboxone and KlonopinRead the Press Release
PHILADELPHIA – Dr. Alan Summers, 78, of Ambler, PA, pleaded guilty to an indictment charging him in a scheme to sell commonly abused prescription drugs in exchange for cash payments. Dr. Summers pleaded guilty to conspiracy to distribute controlled substances, distribution of controlled substances, health care fraud, and money laundering, and was announced by Acting United States Attorney Louis D. Lappen, Drug Enforcement Administration Special Agent-in-Charge Gary Tuggle, and Special Agent-in-Charge Nick DiGiulio with Health and Human Services Office of Inspector General.
Dr. Summers operated a medical clinic on South Broad Street in Philadelphia, and sometimes operated under the business name “NASAPT” (National Association for Substance Abuse-Prevention & Treatment). Dr. Summers employed numerous other doctors, including co-defendants Dr. Azad Khan and Dr. Keyhosrow Parsia. The defendants sold prescriptions for Suboxone and Klonopin in exchange for cash payments. Suboxone is a brand name for a drug used to treat opiate addiction. None of the defendants conducted medical examinations or mental health examinations as required by law in order to legally prescribe these controlled substances. Dr. Summers also assisted his customers in obtaining health insurance benefits for these illegally prescribed controlled substances by providing false information to health insurance companies so that his customers could fill the prescriptions using their health insurance. Many of the customers who frequented this clinic were, in fact, drug dealers or drug addicts who sold the prescribed medications. During the duration of the conspiracy, Dr. Summers illegally sold over $5 million worth of controlled substances.
“We have a public health crisis in this county involving prescription drug abuse that is exacerbated by doctors like Alan Summers,” said Lappen. “Every doctor who abandons his or her ethics to engage in the prescription-for-pay culture is breaking the law. They need to ask themselves whether it is worth the money to put people in danger, to risk the loss of their medical licenses, and to lose their freedom. Our office will continue to investigate and prosecute those individuals whose unscrupulous and illegal conduct contributes to this deadly epidemic.”
“The charges that Dr. Summers have plead to are serious and the penalties for such crimes are severe. Doctors take an oath to uphold specific ethical and medical standards; Dr. Summers failed to maintain those standards when he made the decision to engage in the criminal distribution of controlled substances,” said Gary Tuggle, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Division. “We are in the midst of the worst drug epidemic in our country’s history -- rogue doctors play a key role in the illegal diversion of controlled substances that all too often leads to abuse and heroin use.”
“Doctors who enable addicts betray their profession,” said DiGiulio. “In this case the defendants illegally prescribed dangerous controlled drugs and caused government health care programs to pay the fraudulent bills, while the drugs were sold on the streets. We will continue to work with our partners to dismantle dangerous pill mills, protect government funds, and keep the public safe.”
Sentencing has been set for May 22, 2017.
The case was investigated by the Drug Enforcement Administration, the Department of Health and Human Services Office of the Inspector General, and the Internal Revenue Service Criminal Investigations, with assistance from the Philadelphia Police Department and the Pennsylvania Bureau of Narcotics Investigations. It is being prosecuted by Assistant United States Attorney Robert Livermore.
Dental Office Manager Sentenced for Fraudulently Obtaining over 100,000 Hydrocodone PillsRead the Press Release
NEWPORT NEWS, Va. – Donna Byrd Talley, 54, of Yorktown, was sentenced today to five years in prison, followed by three years of supervised release, after being convicted at trial on charges of acquiring or obtaining a controlled substance, possession with intent to distribute a controlled substance, and mail fraud.
According to court records and evidence presented at trial, Talley worked as a long-time office manager for Dr. Steven Becker, a Hampton dentist. Talley had control over Dr. Becker’s bank accounts and was responsible for all office administration. From 2002 through 2011, Talley used Dr. Becker’s DEA license to fraudulently obtain over 100,000 pills of hydrocodone from two dental supply companies. Talley distributed the hydrocodone to her husband and others and used it to feed her own addiction. In 2011, Talley made various cash deposits to bank accounts she owned or controlled in amounts over $7,000.
On Aug. 18, 2011, investigators with the Virginia Department of Health Professions and the Virginia State Police interviewed Talley, who admitted to ordering hydrocodone. Later that same day, an investigator recovered a pill bottle containing hydrocodone from Talley’s residence, matching shipments of hydrocodone ordered by Talley and received by Dr. Becker’s office two days earlier. The investigation was conducted by the Drug Enforcement Administration, Richmond District Office Diversion Unit.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Ruth A. Carter, Diversion Program Manager (DEA), made the announcement after the defendant was sentenced by U.S. District Judge Mark S. Davis. Assistant U.S. Attorneys Brian J. Samuels and Megan M. Cowles prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-cr-21.
Defendant Sentenced to 37 Months on Gun ChargeRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced today that Unterrio Cartrelle Tate, 22, of Mobile, Alabama, was sentenced today by Chief U.S. District Judge William H. Steele to 37 months imprisonment for being a felon in possession of a firearm. The judge ordered that Tate pay a $100 special assessment, undergo 3 years of supervised release, and pay restitution totaling $4,994.10.
In July 2016, the U.S. Marshal Service – Gulf Coast Regional Fugitive Task Force was assigned a felony warrant for Tate’s arrest for a probation revocation. On July 20, 2016, officers found Tate at a gas station in Prichard, Alabama in the driver’s seat of a vehicle. A second occupant was in the front passenger seat. A task force vehicle pulled in front of Tate’s car, while a second task force vehicle pulled in behind Tate’s car. Officers gave commands to the occupants inside Tate’s car to show their hands. Tate’s car went in reverse and struck the task force vehicle behind Tate, damaging that vehicle. When officers got Tate out of the driver’s seat, they saw in plain view a pistol wedged between the right side of the driver’s seat and the center console. Officers later determined there was 1 round in the pistol’s chamber at the time the gun, a .40 caliber Taurus, was seized.
Tate is a twice convicted felon who is prohibited from knowingly possessing a firearm. On May 19, 2014, Tate was convicted in Mobile County Circuit Court for discharging a firearm into an occupied building or vehicle and for assault in the second degree. Tate was indicted in August 2016 by a federal grand jury for the Southern District of Alabama on 1 count of being a felon in possession. He pleaded guilty to the offense on November 17, 2016.
The case was investigated by the U.S. Marshal Service – Gulf Coast Regional Fugitive Task Force. The case was prosecuted by Assistant United States Attorney Sinan Kalayoglu.
David Eisenhart Imprisoned for Central Vermont FraudsRead the Press Release
The United States Attorney for the District of Vermont announced that David Eisenhart, 44, of Barre, was sentenced today in United States District Court in Rutland to one year and one day of imprisonment based upon his guilty plea to a charge that he defrauded a Vermont credit union. United States District Judge Geoffrey Crawford also ordered that Eisenhart serve three years of supervised release following completion of his prison term and pay restitution totaling more than $68,000. The court ordered Eisenhart to surrender to the Bureau of Prisons to begin serving his sentence on April 3.
On December 16, 2015, a federal grand jury in Rutland returned a three-count indictment charging Eisenhart with wire fraud and making false statements in loan applications. Last September, Eisenhart pled guilty to a related charge of bank fraud. According to the indictment, between 2011 and March 31, 2015, Eisenhart was employed as the business manager of Wilkins Harley-Davidson, a motorcycle dealership in Barre. Eisenhart handled all paperwork relating to motorcycle sales. He prepared bills of sale and collected cash, check and credit card deposits from customers buying bikes. According to the indictment, starting in about 2013 and continuing up through March 2015, Eisenhart embezzled more than $15,500 in cash deposits made by Wilkins customers. He then attempted to conceal the thefts by not reporting or underreporting the amount of the deposit in Wilkins' accounting system, and falsifying the dealership copy of the bill of sale to understate the amount of the deposit.
The indictment further alleged that Eisenhart made false statements to the New England Federal Credit Union in connection with his purchases of an SUV and a motorcycle. According to the indictment, in October 2013, Eisenhart bought a used Cadillac Escalade for $47,095. Two months later, he refinanced the purchase through NEFCU and obtained a loan for almost $59,000. He obtained this loan by submitting to NEFCU a falsified invoice which purported to show the purchase price of the Escalade had been $58,777 rather than $47,095. In May 2015, although NEFCU had a lien on the vehicle, Eisenhart sold the Escalade for $26,000 and pocketed all of the proceeds. Eisenhart obtained a clean replacement title for the Escalade under false pretenses, by submitting to the Vermont Department of Motor Vehicles a forged document purportedly showing NEFCU had released its lien on the SUV.
Finally, the indictment accused Eisenhart of fraudulently inducing NEFCU to loan him nearly $12,000 to refinance the purchase of a used BMW motorcycle. Eisenhart had bought the bike for $8000 in July 2014. The next month, he obtained a loan for almost $12,000 from NEFCU. In connection with this refinancing, Eisenhart submitted to NEFCU a falsified bill of sale which asserted the purchase price was $11,983.
This case was investigated by the Barre Police Department and the Vermont Department of Motor Vehicles.
Eisenhart is represented by Mark Kaplan. The prosecutor is Assistant U.S. Attorney Gregory Waples.