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Wednesday 4 January 2017
Former Terrebonne Sheriff’s Detective Sentenced for Theft of Federal FundsRead the Press Release
U.S. Attorney Kenneth A. Polite, Jr. announced that former Terrebonne Parish Sheriff’s Office (TPSO) Detective DAWN C. FORET, age 38, of Houma, was sentenced today after previously pleading guilty today to a one count Bill of Information for theft of government funds.
U.S. District Judge Sarah S. Vance sentenced FORET to 3 years of probation, restitution of $14,728 to the Louisiana Highway Safety Commission, and a $100 special assessment.
According to the court documents, FORET was charged for improperly overbilling a federally funded law enforcement grant designed to curb underage drinking known as the Juvenile Underage Drinking Enforcement Grant (“JUDE”) for the years 2009 through 2012. The JUDE Grant was funded by the United States Department of Transportation to the Louisiana Highway Safety Commission, which also administered the grant. After receiving the approval to access the grant funds in October of 2009, the TPSO appointed FORET to administer the grant with regards to recruiting volunteers for the overtime work, determining the operations plan, and then writing up the reports from the evening’s work. In sum, this law enforcement grant paid overtime hours for officers to investigate bars and convenience stores to see if they were illegally providing alcohol to minors.
The focus of the inquiry concerned FORET’s billing of the JUDE grant began in the fall of 2010. Starting on November 6, 2010, FORET began including herself in the TPSO police reports/narratives that followed each JUDE operation in a way that suggested that FORET was physically participating in each operation. From that point on, FORET inserted herself into practically every TPSO JUDE grant narrative as being present and she billed for every hour of operation as the other TPSO officers who did the work. In fact, FORET billed for the full time even if the evening’s operation resulted in no summons being issued and the report was essentially a page or two in length. From November 6, 2010, through the end of the grant on July 18, 2012, TPSO conducted 130 JUDE grant overtime operations and FORET’s name appeared on every single police report except for six occasions. FORET admitted in the factual basis that she did not in fact physically participate in any of the JUDE grant operations from November 6, 2010 until the grant expired in July of 2012. The total loss to the grant is $14,728.00.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorneys Edward J. Rivera and Bill McSherry were in charge of the prosecution.
Former Postal Employee Faces Five Years in Federal Prison for Working as a Personal Trainer While Receiving Workers' Compensation Disability BenefitsRead the Press Release
DALLAS — Less than one week before her trial was scheduled to begin in federal court in Dallas, a Grand Prairie, Texas, woman, Andria Victoria Booker, a/k/a Andria Victoria Crosby, 36, pleaded guilty before U.S. District Judge Sidney A. Fitzwater to one count of making false statements or fraud to obtain federal employees’ compensation, announced U.S. Attorney John Parker of the Northern District of Texas.
Booker, who is in custody, faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. According to the plea agreement filed in the case, Booker agrees to pay $41,395 in restitution to the U.S. Department of Labor Office of Workers’ Compensation Programs (OWCP). Sentencing is set for April 21, 2017, before Judge Fitzwater.
In March 2012, Booker claimed she was injured by a dog bite on her finger through a residential mail slot while she was working for the U.S. Postal Service. OWCP accepted her injury claim and began paying her disability benefits.
As part of the OWCP benefits program, a claimant must annually truthfully complete Form EN-1032 that requires a claimant to report employment, self-employment activities, volunteer activities, or any activities that may affect the claimant’s eligibility for payments. Form EN-1032 encompasses all activities for the 15-month period preceding the date of the claimant’s signature.
According to plea documents filed in her case, Booker admits that she did not immediately report to OWCP her employment or employment activity, and she concealed the fact that she was working when she signed and dated Form EN-1032 in September 2014. Booker admits that she worked as a personal trainer at I.T. Fitness in Grand Prairie, Texas, and elsewhere, including forming her own personal training business while she was receiving disability compensation benefits from the OWCP and had stated she did not work. Booker further admitted that she did not report any of her volunteer activities to the OWCP, as she was required to do, when she regularly volunteered for her son’s football program as team representative.
The case was investigated by the U.S. Postal Service Office of Inspector General. Special Assistant U.S. Attorney Jennifer Bray is in charge of the prosecution.
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Former Joplin Police Officer Sentenced for Civil Rights ViolationRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Joplin, Mo., police officer was sentenced in federal court today for violating the civil rights of a woman he arrested by attempting to get her case dismissed in exchange for a sexual relationship.
Brian Rogers, 30, of Joplin, was sentenced by U.S. Magistrate Judge David P. Rush to three years of probation, including six months of home detention with electronic monitoring.
On Sept. 19, 2016, Rogers pleaded guilty to the misdemeanor charge of deprivation of rights under color of law. Rogers – who was a Joplin police officer at the time – arrested a woman identified in court documents as Jane Doe for driving under the influence in October 2015. She was subsequently charged with DUI by the Joplin Prosecuting Attorney’s Office.
Rogers admitted that he communicated with Jane Doe via texts and Facebook Messenger in December 2015 and offered to get the charge dismissed. Rogers said he would like to see Jane Doe’s body and asked her to send him pictures, which she refused to do. Rogers asked Jane Doe what she was offering and said he wanted her to “show me one hell of a time!” Rogers also asked her to come by his office, which she also refused to do.
On Dec. 28, 2015, Rogers approached city prosecutor Becky Seidl and suggested she dismiss the case. Rogers stated that he had experienced a maintenance issue with the breathalyzer that he had used to take the sample from Jane Doe. Rogers told Seidl they would have a hard time of making the case stick and he was inclined to give Jane Doe the benefit of the doubt.
Seidl told Rogers she agreed and the case would need to be dismissed. After speaking with Rogers, Seidl spoke to police officials, who contacted the FBI. When federal agents interviewed Jane Doe, she agreed to place a recorded phone call to Rogers. During the call Rogers stated he had spoken with the city prosecutor and he believed the charges would be dropped. Rogers also stated he would check up on the status of the case the following day.
On Jan. 25, 2016, federal agents interviewed Rogers. Rogers admitted that he had hoped his actions in helping to dismiss Jane Doe’s case would lead to him and Jane Doe developing a friendship and then a sexual relationship. Rogers had hoped that after getting the charges dropped Jane Doe would meet with him.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI and the Joplin, Mo., Police Department.
Former DHS Employee Sentenced to Prison in Scheme to Steal USDA Funds Intended to Feed Hungry Children & Little Rock Man Pleads Guilty in Same SchemeRead the Press Release
LITTLE ROCK— Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced Wednesday that United States District Court Judge James M. Moody Jr., sentenced Tonique Hatton, 39, of North Little Rock, to prison for her role in a widespread scheme to steal money intended for feeding children in low income areas.
Judge Moody sentenced Hatton, who pleaded guilty to conspiring to commit wire fraud on September 6, 2016, to 108 months’ imprisonment, to be followed by two years of supervised release. She was also ordered to pay restitution in the amount of $7,632,871.77 and to forfeit $17,681.49.
In a separate case also heard Wednesday, Michael Lee, 26, Little Rock, pleaded guilty to an Indictment charging him with wire fraud. The charges stem from a similar scheme to steal money which was intended to feed children. Lee’s plea hearing took place before Chief United States Judge Brian S. Miller, who will sentence Lee at a later date.
The United States Department of Agriculture (USDA) feeding programs in Arkansas are administered through the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. After they are approved, they can provide meals as part of the feeding programs, and they are reimbursed for the eligible meals they serve.
Lee was a sponsor for a feeding program through Our Children of Tomorrow. Lee had two approved feeding sites which were located in Arkadelphia and Little Rock. At these two sites, he claimed as many as 800 children. In truth, no more than 30 children were ever fed at the Arkadelphia site and no children were fed at the Little Rock site. Because of the inflated claims, Our Children of Tomorrow received approximately $666,428.07.
Hatton is the third defendant sentenced who was charged with involvement in this scheme to fraudulently obtain USDA feeding program funds. Kattie Jordan was sentenced to 63 months in federal prison on March 15, 2016, and Reuben Nims was sentenced to 21 months in federal prison on November 2, 2016. Gladys Waits, Christopher Nichols, Waymon Weeams, James Franklin, Francine Leon, Maria Nelson, Alexis Young, and Erica Warren have all pleaded guilty to conspiring to defraud USDA feeding programs and are awaiting sentencing. Jacqueline Mills, Dortha Harper, and Anthony Waits are scheduled for trial on March 27, 2017, before Judge Moody.
Hatton worked for DHS and her responsibilities included processing applications from sponsors who applied to participate in the feeding programs, determining their eligibility, and approving their proposed feeding sites. Hatton was responsible for approving the feeding programs for co-defendants Mills and Jordan at various times between January 2012 and August 2014. Mills and Jordan made bribe payments to Hatton to ensure those programs were approved. Some sponsors would claim that hundreds of children were fed at their sites, when few or no children were actually fed there. Hatton also helped Mills and Jordan avoid DHS’s detection of the fraud.
The investigation is ongoing and is being conducted by the USDA–Office of Inspector General, Federal Bureau of Investigation, Internal Revenue Service–Criminal Investigations, and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana K. Harris, Allison W. Bragg, and Cameron McCree. If you are aware of any fraudulent activity regarding feeding programs, please email that information to [email protected].
Former Church Youth Leader Pleads Guilty to Enticing a Minor for Illicit SexRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former church youth leader in Iberia, Mo., pleaded guilty in federal court today to attempting to entice a minor for illicit sex.
Jamey Lee Becker, 45, of Iberia, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to the charge contained in an Aug. 24, 2016, federal indictment.
By pleading guilty today, Becker admitted that he used the Internet and a cell phone in an attempt to entice an individual under the age of 17 to engage in illegal sexual activity between Feb. 1 and June 10, 2016.
Under federal statutes, Becker is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Missouri State Highway Patrol and the Miller County, Mo., Sheriff’s Department.
Foreign Currency Exchange Dealer Pleads Guilty to Antitrust ConspiracyRead the Press Release
First Individual Plea in Ongoing Investigation
A foreign currency exchange (FX) dealer pleaded guilty to participating in a price-fixing conspiracy in the FX market, the Justice Department announced today.
According to the one-count information filed in the U.S. District Court for the Southern District of New York, Jason Katz was a dealer of Central and Eastern European, Middle Eastern and African (CEEMEA) currencies on the New York FX desks of three successive financial institutions. From approximately January 2007 until July 2013, Katz and FX dealers at competing institutions conspired to suppress and eliminate competition by fixing prices in CEEMEA currencies, in violation of the Sherman Act, 15 U.S.C. § 1. As part of this conspiracy, Katz and his co-conspirators manipulated prices on an electronic FX trading platform through the creation of non-bona fide trades, coordinated the placement of bids and offers on that platform and agreed on currency prices they would quote specific customers, among other conduct. Under his plea agreement, Katz has agreed to cooperate with the department’s ongoing investigation into the FX market.
“These conspirators engaged in blatant collusion and succeeded in manipulating exchange rates for multiple currencies to their advantage,” said Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division. “Conspiracies such as this undermine the integrity of our financial markets, and the Antitrust Division is committed to ensuring that they are pursued and punished.”
“The Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG) is pleased to join the Antitrust Division and our law enforcement colleagues in pursuing this investigation of price fixing in the foreign currency exchange market,” said Acting Inspector General Frederick W. Gibson of FDIC OIG. “We are committed in our efforts to ensure that those who seek to undermine the integrity of the financial services industry will be held accountable.”
Katz is the first individual to plead guilty as a result of the department’s ongoing investigation into antitrust and fraud crimes in the FX market, and the third individual to be charged. On May 20, 2015, four major banks – Citicorp, JPMorgan Chase & Co., Barclays PLC and The Royal Bank of Scotland plc – pleaded guilty at the parent level and agreed to pay collectively more than $2.5 billion in criminal fines for their participation in an antitrust conspiracy to manipulate the price of U.S. dollars and euros exchanged in the FX market. A fifth bank, UBS AG, pleaded guilty to manipulating the London Interbank Offered Rate (LIBOR) and other benchmark interest rates and agreed to pay a $203 million criminal penalty, after breaching its December 2012 non-prosecution agreement resolving the LIBOR investigation. On July 20, 2016, fraud charges were brought by the Justice Department’s Criminal Division against two FX executives for conspiring to defraud a client of their bank through a front running scheme.
This antitrust investigation is being conducted by the Antitrust Division’s New York Office with the assistance of the FDIC OIG and the FBI’s Washington Field Office. The Criminal Division’s Fraud Section also provided substantial assistance in this matter.
A violation of the Sherman Act, 15 U.S.C. § 1, carries a maximum penalty of ten years in prison and a $1 million fine. The maximum fine for a Sherman Act violation may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than the statutory maximum.
The charge was brought in connection with the President Obama’s Financial Fraud Enforcement Task Force. The president established the task force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.
For more information about the task force, please visit www.StopFraud.gov. Anyone with information concerning price fixing or other anticompetitive conduct in the FX market should contact the New York Office of the Antitrust Division at (212) 335-8000, call the Antitrust Division’s Citizen Complaint Center at (888) 647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Katz InformationFinal Conspirator Pleads Guilty to Federal Gun and Drug OffensesRead the Press Release
Greenbelt, Maryland – Nathan Antonio Davis, age 37, of Capitol Heights, Maryland, pleaded guilty late on January 3, 2017, to conspiracy to possess with the intent to distribute 500 grams or more of cocaine; and conspiracy to possess firearms in furtherance of a drug trafficking crime.
Co-defendants Raymond Dexter Parker, age 37, of District Heights, Maryland; Adrian A. Vinson, a/k/a Buck Man, age 37, and Wayne Ellis Hampton, Jr., age 40, both of Laurel, Maryland; and Tavon Lee Crews, age 19, of District Heights, previously pleaded guilty to their roles in the conspiracy.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Henry P. Stawinski of the Prince George’s County Police Department.
According to their plea agreements, from at least November 2015 through May 3, 2016, Davis, Parker, Vinson, Hampton, and Crews conspired to rob certain drug dealers operating in Maryland, to possess with the intent to distribute cocaine, and to possess firearms in furtherance of drug trafficking. On April 13, 2016, at a location in Maryland, Davis and Parker met with an undercover agent (UC) working for the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) to discuss the upcoming armed robbery of a drug stash house.
During a follow-up meeting on April 21, 2016, Davis, Parker, Vinson and Crews met with the UC to discuss how they would execute the robbery and obtain the cocaine. Davis stated that he and Parker committed robberies like this, as did Vinson. Vinson stated that he would use a badge to pose as a police officer to facilitate the robbery.
On May 3, 2016, the day of planned robbery, the UC met with Davis and his co-conspirators. On the way to the meeting location Crews was a passenger in Parker’s vehicle and picked up a gun which was on the floor of the vehicle. Crews then put the gun back on the floor underneath the front passenger seat. After arriving at the final meeting place, Davis, Parker, Vinson, Hampton, and Crews, discussed, in detail, plans for the upcoming robbery with the UC. Davis informed the robbery crew that he was in possession of a 60,000-volt taser, revolver, gloves, and duct tape; and asked whether the robbery crew should leave the armed guards alive in the stash house. As part of the plan, Crews was to remain in the car as a lookout for the robbery crew. During the conversation, the UC observed Parker with a firearm and saw Parker wiping off the firearm with his shirt. The UC told Parker to put the firearm back in the vehicle because it was not yet needed. Hampton instructed his co-conspirators to remove the license plates from a rental vehicle that they planned to use for the robbery and replace them with license plates from an unaffiliated vehicle parked in the parking lot to evade detection by law enforcement during and after the armed robbery of the stash house. At some point during the conversation, Parker began to remove the license plates.
Law enforcement arrested Davis, Parker, Vinson, Hampton, and Crews. Law enforcement recovered nylon stockings, blue nitrile gloves, disinfecting wipes, duct tape, a stun gun box, paracord, screwdrivers, and a pocket knife from the vehicle that Davis had driven that day. Law enforcement also recovered a stun gun from the scene and the following loaded firearms from the vehicle driven by Parker: two .38 special caliber revolvers; and a Ruger 9 millimeter caliber semi-automatic handgun. During the investigation, law enforcement determined that the Ruger handgun was stolen.
Davis was detained after his arrest. During his detention, Davis wrote a letter to an individual in Waldorf, Maryland, and instructed that person to retrieve a firearm from a residence in Suitland, where Davis had been staying prior to his arrest, and take it back to the individual’s home for safe keeping. At Davis’ direction, the same individual had previously recovered narcotics, drug paraphernalia and cash, while Davis was detained.
While he was detained, Davis also wrote to an individual at a residence in Washington, D.C., where Davis had also stayed prior to his arrest. Davis instructed that individual to get cocaine from a package in a dresser in the residence and sell the cocaine. Davis further stated that a portion of the proceeds from the sale of the cocaine were to be sent to Davis in jail, and the rest was to be used to fund the marijuana grow operation in the Washington, D.C. residence. Davis also discussed the marijuana grow operation with this individual on recorded jail calls.
After intercepting Davis’ letters, law enforcement executed search warrants at the residences in Waldorf, Suitland, and Washington, D.C. on June 9 and 10, 2016. From the residence in Waldorf, law enforcement recovered, among other items, drug paraphernalia (including items needed to maintain a marijuana grow operation), and $2,480 in cash. From the residence in Suitland, law enforcement recovered: 28 grams or more of crack cocaine; powder cocaine; marijuana; four firearms, including a firearm located in the exact location that Davis had described in his jail letter; 38 rounds of ammunition; and $900 in cash. From the residence in Washington, D.C., law enforcement recovered: cocaine; marijuana and a marijuana plant; a firearm; and 28 rounds of ammunition. Davis had previous felony convictions which made it illegal for him to possess a firearm and ammunition.
Davis, Vinson, Parker and the government have agreed that if the Court accepts their plea agreements Davis and Vinson will each be sentenced to between 12 and 15 years in prison, and Parker will be sentenced to 10 years in prison. U.S. District Judge Roger W. Titus has scheduled sentencing for Davis on May 10, 2017; for Parker on May 1, 2017; and for Vinson on May 11, 2017.
Crews is scheduled to be sentenced on March 23, 2017, and Hampton on March 24, 2017, both at 8:30 a.m.
United States Attorney Rod J. Rosenstein commended the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Jennifer R. Sykes and Menaka Kalaskar, who prosecuted the case.
Developer Pleads Guilty to Defrauding Investors seeking Citizenship under Federal Immigration ProgramRead the Press Release
A Bellevue developer who raised more than $150 million from immigrant investors pleaded guilty today to fraud charges in U.S. District Court in Seattle, announced U.S. Attorney Annette L. Hayes. LOBSANG DARGEY, 43, entered guilty pleas to two federal felonies alleging that DARGEY defrauded immigrant investors, federal regulators, and institutional investors. The charges allege that DARGEY promised to use the immigrant investors’ investment funds to construct two Puget Sound-area developments in compliance with a federal immigration program designed to stimulate growth and create jobs. DARGEY admitted at the court hearing that, contrary to his promises to investors, regulators and others, he secretly diverted tens of millions of dollars of investor funds to unauthorized uses and attempted to make up the resulting funding shortfall by raising additional capital using falsified financial records.
“Mr. Dargey exploited the dreams of his investors to line his own pockets,” said U. S. Attorney Annette L. Hayes. “He promised to use the money he received in a way that would allow investors to apply to become permanent U.S. residents. Instead, Mr. Dargey secretly sent millions of dollars overseas and used millions more for his own pet projects. In doing so, he harmed his investors financially and risked their dreams of legal status in the United States.”
According to records filed in the case, between 2012 and 2015, DARGEY recruited overseas investors, primarily in China, to fund two development projects – one in Everett, Washington known as the “Path American Farmer’s Market” and one in Seattle’s Belltown neighborhood known as the “Potala Tower.” DARGEY promoted the projects under a federal program known as the “EB-5” program, which allows immigrant investors to qualify for permanent residency if they create American jobs by investing $500,000 in a qualifying American business project. DARGEY represented to the immigrant investors and to the U.S. Department of Homeland Security that he was investing all of investors’ funds in the Everett and Seattle projects in compliance with program requirements.
DARGEY admitted at the court hearing that, contrary to his promises, he used tens of millions of investor dollars for uses not allowed under the federal program and not disclosed to investors. This included approximately $11.5 million of investor funds that DARGEY secretly used to pay unauthorized sales expenses, including sales commissions to Asian brokers, as well as $16.8 million that DARGEY used for unrelated real estate projects. In addition, DARGEY told investors and the United States government that DARGEY would contribute $32.5 million of his own money toward the projects. DARGEY admitted at the hearing that, in fact, he made no contribution to the projects. DARGEY’s fraud resulted in tens of millions of dollars in funding shortfalls for the projects. DARGEY admitted that he attempted to fill these shortfalls by using a falsified bank statement to obtain a $25 million construction loan, and by using altered financial statements to obtain $60 million in additional funding from a private institutional investor.
DARGEY’s fraudulent conduct came to an end in August 2015 when the Securities and Exchange Commission filed a civil suit and won a court order freezing his assets. The FBI simultaneously executed search warrants at DARGEY’s offices in Bellevue and Everett.
Each of the two criminal counts carries a prison term of up to five years, for a total maximum term of ten years. DARGEY has agreed to provide restitution of more than $24 million to the investors. Sentencing is currently scheduled in front of U.S. District Judge Thomas S. Zilly on April 6, 2017.
The case is being investigated by the FBI and is being prosecuted by Assistant United States Attorneys Justin Arnold and Seth Wilkinson. The Department of Justice appreciates the assistance of the Securities and Exchange Commission and United States Citizenship and Immigration Services in connection with this matter.
Clarion Man Charged with Child Sexual Exploitation OffensesRead the Press Release
Jonathan Sebert, age 24, of Clarion, Iowa, has been charged with sexual exploitation of a child, receipt of child pornography, and possession of child pornography. The charges are contained in an Indictment unsealed on December 28, 2016, in United States District Court in Cedar Rapids.
The Indictment alleges that, between 2012 and 2016, Sebert produced, received, and possessed child pornography.
If convicted, Sebert faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 70 years’ imprisonment, a $750,000 fine, $15,300 in special assessments, and at least five years and up to life on supervised release following any imprisonment.
Sebert appeared for a detention hearing on December 30, 2016, in federal court in Cedar Rapids and was held without bond. Sebert’s next appearance for trial is set for February 27, 2017.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Wright County Sheriff’s Office and the Mason City Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 16-3054.
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Cincinnati Man Charged with Promoting Child PornographyRead the Press Release
CINCINNATI – A federal grand jury has charged James Denney, 30, of Cincinnati, with two counts related to the promotion of child pornography in an indictment returned in Cincinnati.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Steve Francis, Acting Special Agent in Charge, Homeland Security Investigations (HSI) announced the indictment returned today.
The indictment alleges that in December Denney knowingly promoted a URL on the DarkWeb containing child pornography and that Denney allegedly aided another in accessing the pornography of a minor engaging in sexually explicit conduct.
According to investigators, Denney allegedly provided an undercover agent with web links to an online board featuring dozens of links to child pornography chat rooms, video/image board sites, as well as “community” support groups and online security advice for child pornographers.
Promoting a URL that contains child pornography is punishable by a range of five to 20 years in prison. Aiding in accessing child pornography carries a maximum potential penalty of 20 years in prison. Each crime also includes a potential lifetime of supervised release.
U.S. Attorney Glassman commended the investigation of this case by HSI, and Assistant United States Attorney Karl P. Kadon, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Charleston man pleads guilty to making false statement to FBI agentRead the Press Release
CHARLESTON, W.Va. – A Charleston man who falsely told the FBI that he did not get any money from anyone related to the West Virginia Prep Academy pleaded guilty today, announced United States Attorney Carol Casto. Daniel Andrew Hicks, 43, entered his guilty plea to making a materially false statement to an FBI agent.
In 2013, the FBI, along with the South Charleston Police Department, investigated whether any federal criminal violations had occurred in connection with the operation of the West Virginia Prep Academy, a college preparatory school purportedly set up to give students the opportunity to compete for college football and basketball scholarships. When an FBI Special Agent, along with an officer with the South Charleston Police Department, served a federal grand jury target letter on Hicks in the course of that investigation, Hicks stated that he “did not get a dime” from anyone related to the Prep Academy. Hicks later admitted that this statement was materially false, as he had deposited a check from the mother of a student into the bank account of the Prep Academy. Hicks further admitted that he did not return those funds to the mother when her son did not attend the Prep Academy. As part of the plea agreement, Hicks agreed to pay restitution of $11,808.59 to 23 individuals.
As part of a separate prosecution, Hicks previously pleaded guilty to a federal heroin crime, admitting that on several occasions in January and February of 2016, he sold heroin to a confidential informant working with law enforcement. Following his arrest on February 18, 2016, law enforcement found Hicks with close to five grams of heroin that he intended to distribute. Additionally, officers executed a search warrant on an apartment Hicks had rented at 112 Henson Avenue in South Charleston and seized $4,924 in cash stored in a shoe box on the kitchen counter. Next to the shoe box, officers also discovered three sets of digital scales and three cell phones.
Hicks faces a total of up to 25 years in federal prison for his crimes - up to five years for making a false statement to an FBI agent and up to 20 years for distribution of heroin. Hicks will be sentenced for both federal crimes in a consolidated proceeding on April 4, 2017.
The investigation of Hicks for his involvement in the West Virginia Prep Academy was conducted by the South Charleston Police Department and the FBI. Assistant United States Attorneys Meredith George Thomas and John File are in charge of the false statement prosecution. The Metropolitan Drug Enforcement Network Team conducted the heroin investigation. Assistant United States Attorney Monica D. Coleman is handling the prosecution of the drug crime. United States District Judge Thomas E. Johnston is presiding over these cases.
The drug case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of pain pills and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Bellevue Man Indicted on Methamphetamine ChargesRead the Press Release
United States Attorney Gregory J. Haanstad announced that on January 4, 2017, a federal grand jury returned an indictment against Darren M. Warner, also known as, “Krazy” (age: 54) of Bellevue, Wisconsin.
Warner faces a charge alleging he possessed actual methamphetamine (“Ice”) with the intent to distribute contrary to Title 21, United States Code, Sections 841(a) and 841(b)(1)(A). He faces a mandatory ten years’ imprisonment and up to a lifetime of imprisonment, a $10,000,000 fine, and between five years and a lifetime on supervised release.
This case was investigated by the U.S. Drug Enforcement Administration, the Wisconsin State Patrol, and the Brown County Drug Task Force comprised of investigators from the Brown County Sheriff’s Department, Green Bay Police Department, Ashwaubenon Public Safety Department, and the De Pere Police Department. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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For Additional Information Contact:
Acting Public Information Officer Elizabeth Makowski
(414) 297-1700
Attorney Admits Role in Life Insurance SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID QUATRELLA, 61, of Trumbull, waived his right to be indicted and pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to a conspiracy charge stemming from a scheme to defraud insurance companies into issuing insurance policies on the lives of elderly people for the benefit of QUATRELLA and other investors, also known as a stranger-originated life insurance (“STOLI”) scheme.
According to court documents and statement made in court, between approximately June 2008 and January 2016, QUATRELLA and others, including insurance brokers based in California, New Jersey and Florida, assisted elderly persons in applying for multimillion dollar life insurance policies. QUATRELLA, who is an attorney, and his co-conspirators offered the insureds the promise of free life insurance for two years, after which QUATRELLA and his co-conspirators would attempt to sell the policy and provide a share of the proceeds to the insured. The insured was not obligated to pay anything and was commonly told that the premiums were being borrowed from a third-party source. As part of the scheme, QUATRELLA and others recruited investors to finance the payment of premiums on the life insurance policies, with the understanding that the investors would earn a profit upon the sale of the policy.
QUATRELLA and his co-conspirators then caused to be submitted to various life insurance providers applications containing false and misleading information, and which failed to disclose the third-party premium funding arrangements for the policies.
QUATRELLA and his co-conspirators received large commissions from the providers as a result of the issuance of insurance policies on the lives of the insureds, and QUATRELLA personally profited approximately $272,000 as a result of the scheme. QUATRELLA and his co-conspirators attempted to sell the life insurance policies to life settlement investment funds or brokers but, in certain cases, they could not find a buyer and the policies lapsed.
QUATRELLA pleaded guilty to one count of conspiracy to commit wire fraud. Judge Thompson scheduled sentencing for April 28, 2017, at which time, QUATRELLA faces a maximum term of imprisonment of five years. QUATRELLA also has agreed to forfeit $272,000.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Arkansas State Representative Pleads Guilty to Bribe ConspiracyRead the Press Release
WASHINGTON – An Arkansas state representative pleaded guilty today to conspiring to authorize and direct a total of $600,000 in state government funds to two non-profit entities in exchange for tens of thousands of dollars in kickback payments, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Elser of the Western District of Arkansas.
Micah Neal, 42, of Springdale, Arkansas, pleaded guilty today before U.S. District Judge Timothy L. Brooks of the Western District of Arkansas to one count of conspiracy to commit honest services fraud. Sentencing will be scheduled at a later date.
As part of his guilty plea, Neal admitted that, between January 2013 and January 2015, while serving in the Arkansas House of Representatives, he conspired with an Arkansas state senator to use their official positions to appropriate government money known as General Improvement Funds (GIF) to a pair of non-profit entities in exchange for bribes. Specifically, Neal and the senator authorized and directed the Northwest Arkansas Economic Development District, which was responsible for disbursing the GIF, to award a total of $600,000 in GIF money to the two non-profit entities. Of the $600,000, Neal personally authorized and directed a total of $175,000 to the entities. In return for his official actions, Neal received approximately $38,000 in bribes from officials at those non-profit entities.
The Federal Bureau of Investigation and the Internal Revenue Service investigated the case. Trial Attorney Sean Mulryne of the Criminal Division’s Public Integrity Section and U.S. Attorney Elser and Assistant U.S. Attorney Kyra Jenner of the Western District of Arkansas are prosecuting the case.
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Arkansas State Representative Pleads Guilty to Bribe ConspiracyRead the Press Release
An Arkansas state representative pleaded guilty today to conspiring to authorize and direct a total of $600,000 in state government funds to two non-profit entities in exchange for tens of thousands of dollars in kickback payments, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Elser of the Western District of Arkansas.
Micah Neal, 42, of Springdale, Arkansas, pleaded guilty today before U.S. District Judge Timothy L. Brooks of the Western District of Arkansas to one count of conspiracy to commit honest services fraud. Sentencing will be scheduled at a later date.
As part of his guilty plea, Neal admitted that, between January 2013 and January 2015, while serving in the Arkansas House of Representatives, he conspired with an Arkansas state senator to use their official positions to appropriate government money known as General Improvement Funds (GIF) to a pair of non-profit entities in exchange for bribes. Specifically, Neal and the senator authorized and directed the Northwest Arkansas Economic Development District, which was responsible for disbursing the GIF, to award a total of $600,000 in GIF money to the two non-profit entities. Of the $600,000, Neal personally authorized and directed a total of $175,000 to the entities. In return for his official actions, Neal received approximately $38,000 in bribes from officials at those non-profit entities.
The Federal Bureau of Investigation and the Internal Revenue Service investigated the case. Trial Attorney Sean Mulryne of the Criminal Division’s Public Integrity Section and U.S. Attorney Elser and Assistant U.S. Attorney Kyra Jenner of the Western District of Arkansas are prosecuting the case.
Tuesday 3 January 2017
Winchester Man Indicted on Federal Drug ChargeRead the Press Release
Harrisonburg, VIRGINIA – A federal grand jury, sitting in the United States District Court for the Western District of Virginia in Harrisonburg, has charged a Winchester man with a federal drug conspiracy charge, United States Attorney John P. Fishwick Jr. announced today.
Joshua Dillon Burkhart, 26, of Winchester, Va., was charged today in an indictment returned in the United States District Court in Harrisonburg with one count of conspiring with others to distribute and possess with the intent to distribute 1,000 grams or more of heroin and to distribute and possess with the intent to distribute cocaine.
The investigation of the case was conducted by Drug Enforcement Administration and the Northwest Virginia Regional Drug and Gang Task Force, which is comprised of the Virginia State Police, the Winchester Police Department, the Front Royal Police Department, the Strasburg Police Department, the Frederick County Sheriff’s Office, the Page County Sheriff’s Office, the Warren County Sheriff’s Office, the Shenandoah County Sheriff’s Office and the Clarke County Sheriff’s Office. Assistant United States Attorney Erin M. Kulpa will prosecute the case for the United States.
U.S. Attorney Kerry B. Harvey Announces ResignationRead the Press Release
LEXINGTON, Ky. – Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, has announced his resignation, effective Friday, January 13, 2017. U.S. Attorney Harvey has served in office since May 14, 2010.
“The opportunity to serve as United States Attorney for the Eastern District of Kentucky has been a distinct honor,” United States Attorney Harvey said today. “I will be forever grateful for the trust placed in me by President Obama and the opportunity to serve in the Department of Justice during such consequential times. I am inspired by the tremendous work of the state, local and federal law enforcement communities with which I have served, and I will always treasure the chance to work alongside the exceptional staff of the United States Attorney’s Office for the Eastern District of Kentucky. We have accomplished a great deal together, and their commitment to the cause of justice will continue.”
“As United States Attorney for the Eastern District of Kentucky since 2010, Kerry Harvey has been an indispensable partner in our work to build a stronger and safer nation for all Americans," said Attorney General Loretta E. Lynch. "Under Kerry's leadership, his office has played a crucial role in the Justice Department's initiatives to prosecute fraud, corruption, and white-collar crime. And he has been a visionary leader in our work to end the devastating opioid epidemic, joining with state and local authorities to hold accountable those who illegally distribute heroin, prescription drugs, and other substances that ravage our communities. Kerry's work with the families of those who have fallen victim to this epidemic has given voice to those who have suffered and helped to steer countless others way from the same path. His efforts are in the highest traditions of the Department of Justice. I want to thank Kerry for his tireless efforts on behalf of the American people over the last seven years, and I wish him the very best as he begins the next chapter of his distinguished career."
Harvey’s efforts include serving on the National Heroin Task Force; serving three years on the Attorney General’s Advisory Committee (AGAC), a select group appointed by the Attorney General to serve as advisors to the Attorney General and as the voice for all United States Attorneys nationwide; serving as Co-Chairman of the AGAC’s Healthcare Fraud Working Group; establishing the highly successful U.S. Attorney’s Heroin Education Action Team (“USA HEAT”), an initiative to increase public awareness of the opioid epidemic in Kentucky; achieving landmark criminal convictions and civil recoveries for fraudulent healthcare practices; prosecuting significant public corruption cases; and prosecuting large-scale drug trafficking organizations. Under Harvey’s leadership, his office has become a national leader in federal prosecution of drug-overdose cases. His time in office has seen significant change – twenty-one of the forty-four Assistant United States Attorneys allocated to the office have been hired under Harvey’s leadership.
Signature achievements under Harvey’s leadership include:
Securing a number of public-corruption convictions against former state and local officials, including Richie Farmer, former Kentucky Commissioner of Agriculture; Timothy Longmeyer, former Secretary of the Commonwealth of Kentucky’s Personnel Cabinet and former Deputy Attorney General of Kentucky; Timothy Conley, former County Judge -Executive of Morgan County; Keith Hall, former member of the Kentucky House of Representatives; Robert Porter, former Mayor of Paintsville; Arch Turner, former superintendent of the Breathitt County Public Schools, and Tim Fegan, former Director of the Buffalo Trace Narcotics Task Force;
Securing landmark civil recoveries under the False Claims Act against two hospitals – $40.9 million from King’s Daughters Medical Center in Ashland and $16.5 million from Saint Joseph’s Hospital in London – to settle allegations of unnecessary cardiac procedures; and securing the criminal convictions of Dr. Richard Paulus and Dr. Sandesh Patil for their roles in performing unnecessary cardiac procedures;
Securing a $15.75 million civil recovery against an addiction treatment center (“SelfRefind”), a clinical laboratory (“PremierTox”), and two physician owners to resolve allegations that they fraudulently billed federal healthcare programs for medically unnecessary and excessive urine screens;
Securing a $16 million civil judgment against Nurses’ Registry Home Health Corporation and the estate of its former owner Lennie House, resolving allegations of widespread healthcare fraud;
Collecting more than $182 million on behalf of taxpayers during 2014 alone, an amount that represents the highest annual recovery in the Office’s history and more than twenty times the Office’s annual budget;
Securing criminal convictions of numerous pain clinic owners, pharmacists, doctors, and other health care professionals for the illegal distribution of prescription pain medication and other controlled substances, including pain-clinic owners William Singleton, Joel Shumrack and Michael Leman, pharmacist Charles Terry Tenhet, and Dr. James “Ace” Chaney;
Securing the criminal conviction of Lexington attorney Bryan Coffman and his co-defendant Gary Milby on charges relating to a fraudulent $36-million-dollar oil-and-gas investment scheme;
Developing an Overdose Prosecution Initiative to combat Kentucky’s opioid epidemic. The Initiative employs significant federal penalties for drug trafficking that results in death or serious bodily injury. It has resulted in dozens of prosecutions involving overdoses and has become a national model for other U.S. Attorney’s Offices; and
Creating the Office’s Civil Rights Program to prosecute criminal and civil violations of federal civil rights law, including prosecution of the first case in the nation charged under the Shepard-Byrd Hate Crimes Act.
As of January 14, 2017, Carlton S. Shier, IV, will assume leadership of the Office as Acting United States Attorney. Shier has been the First Assistant United States Attorney since April of 2013 and has been with the Department of Justice since 2010.
Two New Castle Men Charged with Sex Trafficking a Minor, Producing Child PornographyRead the Press Release
PITTSBURGH - Two residents of Lawrence County, Pennsylvania, have been indicted by a federal grand jury in Pittsburgh on charges of production of material depicting the sexual exploitation of a minor, interstate transportation of a minor for purpose of engaging in unlawful sexual activity, conspiracy to commit sex trafficking, and sex trafficking of a child, Acting United States Attorney Soo C. Song announced today.
The four-count Indictment named Ronald Kyle Hartman, 27, of New Castle, Pennsylvania, and David Michael Monrean, 24, of New Castle, Pennsylvania, as the defendants.
According to the Indictment, on August 15, 2016, Hartman produced image files of the sexual exploitation of a minor. From August 14, 2016 to August 16, 2016, for the purpose of private financial gain, Hartman and Monrean did knowingly and willfully transport or arrange, induce, procure, or facilitate the travel of Minor A, who had not attained the age of 18 years, in interstate commerce, from Pennsylvania to Ohio, with the intent that Minor A would engage in prostitution and other sexual activity for which a person could be charged with a criminal offense, and aided and abetted such conduct. Also, from August 14, 2016 to August 16, 2016, Hartman and Monrean knowingly entered into a conspiracy to recruit for sex trafficking a female minor who had not attained the age of 18 years. The Indictment further alleges that from August 14, 2016, to August 16, 2016, Hartman and Monrean knowingly recruited, enticed, harbored, transported, provided, obtained and maintained by any means, in and affecting interstate commerce, a female minor under the age of 18 years, and did benefit financially or by receiving anything of value from participation in a venture engaged in commercial sexual acts, knowing and in reckless disregard of the fact, and having had a reasonable opportunity to observe Minor A, that Minor A had not attained the age of 18 years and that Minor A would be caused to engage in a commercial sex act.
For Hartman, the law provides for a maximum total sentence of life imprisonment, a fine of $1,000,000.00, and a term of supervised release for any term of years not less than five, and up to life, or any or all. For Monrean, the law provides for a maximum total sentence of life imprisonment, a fine of $750,000.00, and a term of supervised release for any term of years not less than five, and up to life, or any or all. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Grove City Police conducted the investigation leading to the indictment in this case.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Two Men Convicted in Unrelated Cases for Producing and Distributing Child Porn Sentenced to Lengthy Federal Prison SentencesRead the Press Release
FORT WORTH, Texas — Two men who were convicted in unrelated cases earlier this year on child pornography offenses have been sentenced to lengthy federal prison sentences by federal judges in Fort Worth, Texas, announced U.S. Attorney John Parker of the Northern District of Texas.
Today, U.S. District Judge Reed C. O’Connor sentenced Ronald Eric Ary, 55, of Erath County, Texas, to 360 months in federal prison. Ary pleaded guilty in September 2016 to one count of distributing child pornography. He has been in custody since his arrest in July 2016 on a related federal criminal complaint. According to documents filed in his case, Ary admitted that he used the Internet and an instant messaging application to distribute and trade child pornography, including a sexually explicit video of an infant child and adult man. The FBI and the Erath County Sheriff’s Office investigated this case.
On Friday, December 30, 2016, Friday, U.S. District Judge John McBryde sentenced Robert Eugene Sanders, 74, of Hood County, Texas, to 360 months in federal prison, fined him $10,000, and ordered him to pay nearly $65,000 in restitution. Sanders pleaded guilty in July 2016 to one count of production of child pornography, and he has been in custody since his arrest in May 2016 on a related federal criminal complaint. According to documents filed in his case, in August 2011, Sanders knowingly used, persuaded, and induced two prepubescent female victims to engage in sexually explicit conduct that he photographed. U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Keller Police Department and the Hood County Sheriff’s Office investigated this case.
These cases were brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
Assistant U.S. Attorney A. Saleem prosecuted both cases.
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St. Joseph Man Pleads Guilty to Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a St. Joseph, Mo., man pleaded guilty in federal court today to robbing UMB Bank.
Terry L. Hager, 49, of St. Joseph, pleaded guilty before U.S. District Judge Fernando J. Gaitan to the charge contained in a May 19, 2016, federal indictment.
By pleading guilty today, Hager admitted that he stole $13,957 from UMB Bank, 1211 N. Belt Hwy., St. Joseph, on March 5, 2016.
Under federal statutes, Hager is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Alison D. Dunning. It was investigated by the St. Joseph, Mo., Police Department and the FBI.
Roanoke Man Sentenced on Federal Drug ChargeRead the Press Release
Roanoke, VIRGINIA – United States Attorney John P. Fishwick Jr. announced the sentencing of a local man on a federal drug charge.
Herbert Lee Childs, of Roanoke, Va., previously pled guilty to one count of distribution of cocaine. Today in District Court, Childs was sentenced to 151 months in federal prison.
“Keeping our communities free of illegal drugs in the first step to allowing residents to lead safer, more productive lives,” United States Attorney Fishwick said today.
According to evidence presented at previous hearings by Assistant United States Attorney Andrew Bassford, Childs previously sold cocaine to a police informant out of his Roanoke apartment.
The investigation of the case was conducted by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Roanoke City Police Department. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Registered Sex Offender Sentenced to More Than 19 Years for Second Offense Involving the Sexual Abuse of MinorsRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard today sentenced Michael Ray Enzor (34, Jacksonville) to 19 years and 6 months in federal prison for transporting, and aiding and abetting the transportation of, child pornography. He also was ordered to serve a supervised release term of 15 years, register as a sex offender, and pay restitution to a victim of his offense. Enzor pleaded guilty on October 4, 2016.
According to court documents, in 2007, Enzor was convicted in Duval County of attempted capital sexual battery on a child less than 12 years old. Consequently, he was sentenced to 10 years in state prison and was released in June 2014. In October 2014, while under conditional release for the state conviction, law enforcement officers discovered that Enzor was sharing child pornography on a social networking chat website based out of Canada.
In addition to sharing child pornography, Enzor had also solicited young girls and mothers and daughters to connect with him on social media for the purpose of providing “extreme” videos to him.
On March 24, 2015, agents from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations executed a search warrant at a residence Enzor shared with other convicted sex offenders. Forensic analyses of Enzor’s electronic media revealed more than 100 video files depicting child pornography.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the York Regional Police in Ontario, Canada. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Phillip Wilson Pleads Guilty in Vermont to Drug and Gun ChargesRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Phillip Wilson, age 36, originally of the Bronx, New York and recently a resident of Chittenden County, Vermont, pled guilty today in federal court in Brattleboro to drug and gun charges arising from his heroin-related drug trafficking activity.
Wilson, who is being detained, appeared before Judge J. Garvan Murtha and pled guilty to a Superseding Information charging him with (1) distributing heroin in Vermont on or about February 23, 2016, (2) possessing heroin with intent to distribute on or about July 6, 2016, and (3) possessing firearms on or about July 6, 2016, in furtherance of a drug trafficking crime.
Under the terms of the proposed plea agreement filed with the Court—acceptance of which was deferred until sentencing proceedings on May 10, 2017 in Brattleboro—Wilson will be sentenced to 7 years in prison if the Court accepts the agreement.
As described during the change of plea proceedings in Court, in February 2016, law enforcement agents became aware that Wilson, who also goes by the aliases “Cody” and “Moscow,” was distributing heroin in Chittenden County, Vermont. Over the next few months, the Vermont Drug Task Force investigated Wilson and made five controlled purchases of heroin from Wilson. Subsequently, the Task Force obtained warrants to search two properties associated with Wilson. During the execution of those warrants on July 6, 2016, agents seized 160 bags of heroin, drug distribution paraphernalia, thousands of dollars in U.S. currency, and three firearms. Wilson has two prior convictions in state court for drug distribution.
The collaborative team investigating Wilson included agents from the Vermont Drug Task Force, the Vermont State Police, the Drug Enforcement Administration, the Federal Bureau of Investigation, and the South Burlington Police Department. This case is part of the U.S. Attorney’s Office’s Vermont Heroin Initiative, which is a coordinated effort by the U.S. Attorney’s Office and federal, state, and local law enforcement agencies to combat heroin distribution in Vermont. United States Attorney Miller again applauded the efforts of the agencies involved in the Heroin Initiative.
The United States is represented in this case by Assistant United States Attorney Kunal Pasricha. Wilson is represented by attorney Mark Oettinger.
Ohio woman sentenced for heroin distributionRead the Press Release
WHEELING, WEST VIRGINIA – Amanda Elaine Wright, 31, of East Liverpool, Ohio was sentenced to 30 months incarceration today for distributing heroin, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Wright collaborated with other individuals to possess and distribute heroin in Hancock County, West Virginia. She pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin.”
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Hancock, Brooke, Weirton Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Ohio Man Charged in July 2016 Gate-Crashing Incident at FBI-Pittsburgh HeadquartersRead the Press Release
PITTSBURGH - One resident of New Waterford, Ohio, has been indicted by a federal grand jury in Pittsburgh on a charge of willfully injuring or committing depredation against any property of the United States, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Thomas Ross, as the sole defendant.
According to Indictment, on July 26, 2016, Thomas Ross drove his vehicle through the gate of the FBI Pittsburgh Field Office, located at 3311 East Carson Street, Pittsburgh, Pennsylvania. Ross proceeded to ram through the security barriers at a high rate of speed, causing his vehicle to become airborne while inflicting extensive damage to the security barrier. Upon hitting the ground, the vehicle struck a nearby light post in the interior parking lot of the FBI Pittsburgh, causing the light post to fall.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses, the extent of the property damage, and the prior criminal history, if any, of the defendant.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
The Pittsburgh FBI and Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
North Side Man Charged with Disposing of Car Used in Killing of Federal WitnessRead the Press Release
PITTSBURGH - A resident of Pittsburgh has been indicted by a federal grand jury in Pittsburgh on charges of being an accessory after the fact, Acting United States Attorney Soo C. Song announced today.
The two-count superseding indictment named Glenn Lee Thomas, 27, of Pittsburgh, Pennsylvania, as the sole defendant.
According to the superseding indictment, Thomas was an accessory after the fact in relation to offenses committed by Price Montgomery in August of 2014. The superseding indictment specifically alleges that Thomas assisted Montgomery, after Montgomery and another person killed Tina Crawford on August 22, 2014. The nature of that assistance, as alleged in the superseding indictment, was that Thomas caused the getaway vehicle used in that homicide to be transported, after the homicide, outside of Pennsylvania to Virginia.
The law provides for a maximum total sentence of 30 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Thomas has been detained pending trial.
Assistant United States Attorneys Gregory J. Nescott and Shaun E. Sweeney are prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service – Criminal Investigation, Drug Enforcement Administration, Office of the Pennsylvania Attorney General and the Pittsburgh Police conducted the investigation leading to the superseding indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
New York Oil Futures Trader Sent to PrisonRead the Press Release
HOUSTON – A 33-year-old resident of the Bronx, New York, has been ordered to federal prison following his convictions of wire and mail fraud, announced U.S. Attorney Kenneth Magidson. A federal jury convicted Christopher Donrick Daley Sept. 21, 2016, following a two-day trial.
Today, U.S. District Judge Lynn Hughes, who presided over the trial, handed Daley a total sentence of 120 months in prison. He was further ordered to pay restitution in the amount of $614,950 and will serve three years of supervised release following completion of the prison term. In handing down the sentence, the court noted that Daley tried to appear as a family man when he ate with his victims. “You actually sat down with their children when you knew you were stealing them blind,” Hughes said.
Daley devised a scheme to defraud investors by falsely representing he operated a commodity pool which invested in oil futures contracts which would pay investors return of at least 20% per month and had never had a losing month. The evidence at trial showed that Daley received more than $1.4 million in investor funds, but he only invested approximately $195,000.
Daley lost all the investors funds he did invest.
The evidence also proved that Daley emailed monthly statements to his investors showing significant monthly returns when there were none. Daley also used money from the investor funds to purchase a new BMW and Range Rover.
Judge Hughes ordered Daley into custody immediately after the verdict was returned where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorneys John Braddock and Charles Escher prosecuted the case.
Navajo Woman Pleads Guilty to Federal Child Abuse ChargeRead the Press Release
ALBUQUERQUE – Sho’Nee Ganadonegro, 26, an enrolled member of the Navajo Nation who resides in Albuquerque, N.M., pled guilty today in federal court to a child abuse charge. Under the terms of her plea agreement, Ganadonegro will be sentenced to a term of probation to be determined by the court.
Ganadonegro was arrested in Jan. 2016, on an indictment charging her with engaging in child abuse by operating a motor vehicle recklessly on Nov. 1, 2015, in Indian Country in Cibola County, N.M.
During today’s proceedings, Ganadonegro entered a guilty plea to the indictment. In entering the guilty plea, Ganadonegro admitted that on Nov. 1, 2015, she negligently operated a motor vehicle recklessly within Laguna Pueblo while under the influence of alcohol. Ganadonegro admitted that her actions endangered the lives and health of the four Indian children who were passengers in the vehicle. A sentencing hearing has yet to be scheduled.
This case was investigated by the Laguna/Acoma Agency of the BIA’s Office of Justice Services and the Laguna Pueblo Tribal Police Department. Assistant U.S. Attorney Joseph Spindle is prosecuting the case.
Monitor finds Seattle Police Department in Initial Compliance with Supervisor Requirements of Consent DecreeRead the Press Release
SEATTLE – A formal assessment of the Seattle Police Department’s (SPD) implementation of supervision-related provisions of the consent decree has found SPD to be in initial compliance with requirements of the Court-ordered agreement with the Department of Justice (DOJ), announced U. S. Attorney Annette L. Hayes. Federal Monitor Merrick Bobb on December 31st filed the assessment with the U.S. District Court and concluded that the progress to date and “current quality and extent of supervision” within SPD in four main areas supports a finding of initial compliance.
“Effective internal supervision is critical to the successful implementation of reform and to the successful management of the day-to-day operations of SPD,” said U. S. Attorney Annette L. Hayes. “The results of this assessment demonstrate that the Department is making progress in supervising, investigating, and counselling officers to help them do their jobs effectively and increase accountability.”
This was the tenth assessment conducted to date by the Monitor and DOJ. Previous assessments found SPD to be in initial compliance with requirements relating to crisis intervention, the Office of Professional Accountability, use of force reporting and investigation (finding initial compliance in three of the four areas assessed), and the Force Review Board. The Monitor also examined and found many positive developments and trends in public confidence and community trust regarding SPD.
The supervisor assessment filed today and attached below focused on four areas:
- The adequacy of supervision by the chain of command for a period from June 2014 through September 2016;
- Whether SPD personnel are assigned to a single, consistent, clearly identified first-line supervisor, also known as “unity of command”;
- The quality of sergeant training and ensuring that any personnel assigned as long-term “acting sergeants” receive specific training within 60 days of their appointment; and
- Whether SPD is deploying an adequate number of qualified supervisors to assure that the provisions of the Consent Decree are implemented, also known as “adequate span of control.”
The assessment found that in all four areas, SPD was in initial compliance. For example, the assessment found that the chain of command receives timely notice of and reviews and tracks uses of force. It also shows supervisors are taking appropriate action with their officers when the use of force is found to be problematic, including counseling officers, initiating referrals up the chain of command, noting performance issues in appropriate systems, and referring incidents that may implicate policy violations to the Office of Professional Accountability. Viewed from the officer’s perspective, the Monitor found that over 90% of officers surveyed reported receiving feedback from their sergeants, finding their sergeants to be “very available” to them, and feeling comfortable asking questions about day-to-day issues and seeking advice.
With respect to unity of command, the assessment found that 97% of the time officers are assigned to a single, clearly-identified supervisor, with each squad assigned to the same daily work schedule. This kind of consistent management structure is understood to lead to better policing and better morale in police organizations. In contrast, during DOJ’s investigation in 2011, the average officer saw his or her sergeant twice per week.
The Monitor also found that sergeant training materials prepare their sergeants for effective supervision and leadership and that supervisors reported finding these trainings valuable.
Finally, as to span of control, sergeant to officer ratios, which are now at 1:6 on average across the SPD precincts, were found to be more than adequate and, indeed, continue to trend downwards.
Although the Monitor made a finding of initial compliance regarding supervision, the assessment also identified a number of areas that either need improvement – including the Field Training Officer selection for which SPD will be setting forth new criteria – or require further examination. Notably, the previous use of force reporting and investigation assessment found deficiencies in supervisory review of Type II force cases based on a 2014 sample. A follow-up assessment is currently underway to determine if the quality and rigor of Type II investigations and reviews by supervisors have improved over the past two years. Moreover, the Monitor, as part of the evaluation of SPD’s search and seizure activity, will explore whether supervisors are sufficiently reviewing documentation of stops and appropriately flagging those stops that have incomplete documentation or for which officers articulated inadequate reasonable suspicion to make the stop.
Additional upcoming assessments in 2017, in addition to the above-referenced follow-up assessment regarding Type II investigations, will examine SPD’s use of force, Early Intervention System, and the use of Terry stops.
Filed assessmentMercer County, New Jersey, Man Sentenced to 135 Months in Prison for Distributing Images of Child Sexual AbuseRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man was sentenced today to 135 months in prison for distributing images of child sexual abuse from his home computer, U.S. Attorney Paul J. Fishman announced.
Shawn Brown, 35, of Ewing, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson to one count of a three-count an indictment charging him with distributing child pornography over the Internet. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Brown admitted that on July 14, 2013, he distributed a video depicting child sexual abuse on the Internet to another individual via instant messaging software. Authorities were first alerted to Brown’s conduct when an undercover agent discovered and downloaded images and videos containing child pornography that Brown had made available to users of a peer-to-peer file sharing network. Law enforcement traced the username and IP address of the sharer back to Brown’s residence. A review of Brown’s electronic devices, seized pursuant to a search warrant, revealed that Brown had been using aliases to contact underage girls online via instant messaging software and social media, where he had created a fake profile posing as a teenage boy.
In addition to the prison term, Judge Thompson sentenced Brown to lifetime supervised release.
U.S. Attorney Fishman credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Molly Lorber of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Lisa Van Hoeck Esq., Assistant Federal Public Defender, Trenton
Kyle Man Indicted for Child AbuseRead the Press Release
United States Attorney Randolph J. Seiler announced that a Kyle, South Dakota, man has been indicted by a federal grand jury for Felony Child Abuse and Neglect.
Matthew Harold Iron, Sr., 32, was indicted on December 20, 2016, and appeared before U.S. Magistrate Judge Daneta Wollmann on December 29, 2016. He pleaded not guilty to the charge.
The penalty upon conviction is up to 15 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Iron exposing a child under the age of 7 to an environment constituting mistreatment, and threatening him with substantial harm near Kyle. The charge is merely an accusation and Iron is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Iron was detained pending trial. A trial date has not been set.
Kyle Man Indicted for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Kyle, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon.
Lloyd Yankton, Jr., 36, was indicted on December 20, 2016, and appeared before U.S. Magistrate Judge Daneta Wollmann on December 30, 2016. He pleaded not guilty to the charge.
The penalty upon conviction is up to 10 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Yankton assaulting a woman near Kyle with a wooden board during an argument, causing multiple injuries. The charge is merely an accusation and Yankton is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Yankton was detained pending trial. A trial date has not been set.
Justice Department Files Brief to Address Solitary Confinement of Juvenile Offenders in New YorkRead the Press Release
The Justice Department filed a statement of interest today addressing the harmful effects of subjecting juvenile offenders to solitary confinement. The statement of interest was filed in V.W. et al. v. Conway et al., a class action brought by six juveniles and their parents and natural guardians to challenge the placement of youth in solitary confinement in the Onondaga County Justice Center in Syracuse, New York.
The statement of interest, filed in the U.S. District Court for the Northern District of New York, advances the United States’ position that juveniles should not be placed in restrictive housing, including solitary confinement, as explained in the department’s January 2016 Report and Recommendations Concerning the Use of Solitary Confinement. That report provided that in very rare circumstances, juveniles may be separated from others, but only as a temporary response to behavior posing a serious and immediate risk of physical harm. This statement of interest states that accordingly, the Federal Bureau of Prisons has ended the practice of using restrictive housing for juveniles. The filing also explains that, consistent with scientific consensus from many child psychology experts and researchers that solitary confinement should be banned for juveniles, courts have recognized the developmental vulnerability of juvenile brains and the irreversible damage that solitary confinement can inflict on adolescents.
In V.W. et al. v. Conway et al., the plaintiffs allege that the Onondaga County Sheriff’s Office unconstitutionally imposes solitary confinement on juveniles in its custody at the Justice Center. Plaintiffs describe this practice as involving at least 23 hours a day in an approximately 60 square foot cell with minimal furnishings, inadequate mental health care and virtually no contact with others except for adult inmates in neighboring cells who routinely harass and intimidate them. Plaintiffs allege that between Oct. 1, 2015 and Aug. 31, 2016, at least 86 juveniles were placed in solitary confinement. As a result, the juvenile plaintiffs allege they regularly experience anxiety, hopelessness, irritability, stress, sadness, post-traumatic symptoms, agitation and suicidal ideations.
“Both the Supreme Court and experts in the field agree that juveniles are developmentally different from adults,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “Accordingly, they must be treated differently and provided additional protections while in custody. This brief advances the Justice Department’s efforts to protect juveniles from serious harm to their physical, psychological and social development.”
In recent years, the department has taken several steps to address the use of solitary confinement on juveniles in jails, including the ongoing investigation of the Jefferson County Jail in Alabama and the 2016 investigation and subsequent consent decree in which the Hinds County Jail in Mississippi agreed to eliminate solitary confinement as a disciplinary sanction for juveniles. In 2015, the department investigated and entered into a consent decree with the New York City Department of Correction Jails on Rikers Island, in which the jails agreed to ban punitive solitary confinement for juveniles. In 2014, the department investigated and reached an agreement with the state of Ohio to reduce significantly, and ultimately eliminate, its use of seclusion on young people in its custody.
V.W. et al. v. Conway et al. was filed in December 2015. Plaintiffs filed a motion for class certification in September 2016, and a motion for preliminary injunction in December 2016. The court will hold a hearing on plaintiffs’ motion for preliminary injunction on Jan. 27, 2017.
For more information on the Civil Rights Division, please visit www.justice.gov/crt.
V.W. v. Conway Statement of InterestJamaican Charged with Immigration ViolationRead the Press Release
PITTSBURGH - A citizen of Jamaica, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal immigration laws, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Victor Palmer, a/k/a Patrick Brown, age 33, of Jamaica, as the sole defendant.
According to the indictment, on or about December 2, 2016, Palmer was found in Monroeville, Allegheny County, Pennsylvania, after having unlawfully re-entered the United States following removal on four previous occasions.
The law provides for a maximum total sentence of two years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
United States Immigration and Customs Enforcement (ICE) conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Inmate with Marijuana Gets Two More Months in Federal PrisonRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., pleaded guilty in federal court to a charge of possession of contraband in prison, and immediately was sentenced to two months in prison, consecutive to the current prison term he is serving, followed by three years’ supervised release, to run concurrent with his present sentence, Acting United States Attorney Soo C. Song announced today.
Charles Jones, 30, pleaded guilty before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on November 21, 2015, Jones was in possession of marijuana.
Assistant United States Attorney Stephanie L. Haines, prosecuted this case on behalf of the government.
Ms. Song commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Federal Correctional Institution, Special Investigative Staff, for the investigation leading to the successful prosecution of Jones.
Huntington man sentenced to federal prison for role in multistate drug conspiracyRead the Press Release
HUNTINGTON, W.Va. – A Huntington man who participated in a multistate drug ring was sentenced today to a year and a day in federal prison, announced United States Attorney Carol Casto. Parker Wyatt Mays, 27, previously pleaded guilty to conspiracy to distribute marijuana.
Mays admitted that from the summer of 2014 to May of 2016, he conspired with others, including codefendants Corey Bruce Toney and Roy Bills, to distribute marijuana from California in the Huntington area. Mays and others regularly acquired large quantities of marijuana from a source in California. The marijuana was transported to Huntington by automobile and through the mail. Once in Huntington, Mays and others distributed the marijuana to various customers and then pooled the proceeds to acquire additional marijuana. Mays admitted that the group distributed up to 400 kilograms of marijuana during the conspiracy.
Toney pleaded guilty in September 2016 to distributing heroin and is awaiting sentencing. Toney admitted that he conspired with others to distribute large quantities of drugs that were transported from California and Michigan to Huntington, including heroin, crack, marijuana, and Xanax. Bills pleaded guilty in November 2017 to conspiracy to distribute marijuana and is also awaiting sentencing.
This prosecution arose out of a long-term investigation led by the Drug Enforcement Administration, with assistance from the West Virginia State Police, the Putnam County Sheriff’s Department, the Huntington Police Department, the Huntington FBI Drug Task Force, the Ohio Highway Patrol, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Postal Inspection Service.
In addition to Mays, Toney, and Bills, seven additional defendants have been convicted for their roles in this drug ring. Atari Seantay Brown, Sean Lee Braggs, Samuel E. Nelson, III, Tanisha Lynette Wooding, and Deandra Sheen Jones have all pleaded guilty to federal drug charges and are awaiting sentencing. Arthur James Canada was sentenced to three years and 10 months in federal prison and Matthew Michael Meadows was sentenced to a year and a half in federal prison for their roles in the conspiracy.
Assistant United States Attorney Joseph F. Adams is in charge of the prosecutions. Chief United States District Judge Robert C. Chambers imposed the sentences and is presiding over these cases.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Harvey Man Pleads Guilty to Conspiracy to Commit Financial Aid FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that BOBBY R. LOWE, age 66, a resident of Harvey, pled guilty today to one count of conspiracy to commit mail fraud.
According to court documents, LOWE owned and operated a printing company in Harvey. In early 2013, LOWE conspired with student applicants to produce fraudulent high school transcripts and diplomas, as well as fraudulent GED certificates and transcripts, which were sent to the Office of Admissions at Delgado Community College in New Orleans. LOWE also provided his co-conspirators with envelopes with return addresses for the Department of Education and the Louisiana Community & Technical College System in Baton Rouge. LOWE instructed his co-conspirators to mail the documents from Baton Rouge, so the documents would look more legitimate. The purpose of the scheme was to obtain federal financial aid from the United States Department of Education and Delgado Community College.
LOWE faces up to five years imprisonment and/or a fine of not more than $250,000, a period of supervised release after imprisonment of up to three years, plus a mandatory special assessment of $100.00. U.S. District Judge Jay C. Zainey set sentencing for April 10, 2017.
U.S. Attorney Polite praised the work of the United States Department of Education-Office of Inspector General and the United States Secret Service in investigating this matter. Assistant U.S. Attorney Julia K. Evans is in charge of the prosecution.
Guilford Man Sentenced to 21 Months in Prison for Distributing Heroin and 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 Willie Harper, 48, of Guilford was sentenced today in U.S. District Court to 21 months in prison to be followed by three years of supervised release for distribution of heroin and oxycodone. Harper pleaded guilty to the charges on June 1, 2016.
According to court records, on August 13, 2015, Harper sold a quantity of heroin to an undercover law enforcement officer at a location in Guilford, Maine. Two weeks later, Harper sold the undercover officer ten oxycodone pills at a different location in Guilford. In imposing the sentence, Judge John Woodcock noted that Harper had contributed to Maine’s ongoing heroin problem and that Harper has “a horrible criminal record.” Harper’s criminal record includes felony convictions in Illinois for armed robbery, unlawful use of a weapon by a felon, and unlawful delivery of a controlled substance, and in Maine for sexual abuse of a minor.
The investigation was conducted by the Drug Enforcement Administration and the Greenville, Maine Police Department.
Former physician pleads guilty to obtaining pain pills by fraudRead the Press Release
HUNTINGTON, W.Va. – A former physician who practiced in Barboursville pleaded guilty today to a federal drug charge, announced United States Attorney Carol Casto. Gregory Donald Chaney, 52, entered his guilty plea to obtaining a controlled substance by fraud.
Chaney was the owner of Tri-State Medical Center, which is now out of business. On December 1, 2015, Chaney wrote a prescription for one of his employees for 120 thirty milligram oxycodone pills. Chaney admitted that he wrote the prescription without any physical examination of the employee and without medical necessity. Chaney then instructed the employee to have the prescription filled at Ross Drug Pharmacy in Ceredo in Wayne County. Prior to having the prescription filled, it was agreed between Chaney and the employee that the pills would be turned over to him in exchange for approximately $830 in lieu of unpaid wages. The next day, the employee had the prescription filled and gave the pills to Chaney in exchange for the money as planned. Chaney admitted that he wrote the prescription with the intent to illegally obtain oxycodone and to conceal the true recipient of the pain pills.
Chaney faces up to four years in federal prison and a $250,000 fine when he is sentenced on April 3, 2017.
The Drug Enforcement Administration conducted the investigation. Assistant United States Attorney R. Gregory McVey handled the prosecution. Chief United States District Judge Robert C. Chambers presided over the plea hearing.
This prosecution was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Former New York City Human Resources Administration Employee Pleads Guilty to Fraud and Cocaine TraffickingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that PETRONILA PERALTA, a/k/a “Petra,” a former employee with the New York City Human Resources Administration (“HRA”), pled guilty to defrauding a public assistance program that she had administered during the time when she worked for HRA, resulting in the theft of more than $600,000 in public funds, and to trafficking more than 50 kilograms of cocaine following her separation from HRA. PERALTA, who was arrested in December 2015, entered her pleas today before U.S. District Judge Gregory H. Woods, and was ordered remanded. She is scheduled to be sentenced by Judge Woods on April 4, 2017.
U.S. Attorney Bharara stated: “As she admitted today, in addition to cocaine trafficking, Petronila Peralta defrauded the public by stealing more than $600,000. This money was intended to aid the neediest New Yorkers, including children, by helping to defray the costs of basic nutrition and housing.”
According to the Complaint, Indictment, plea agreement, other information in the public record, and today’s proceeding:
HRA is an agency of the City of New York responsible for administering various public assistance programs. Among other things, HRA provides temporary help to individuals and families with social service and economic needs to assist them in reaching self-sufficiency. Its services include, among others, administering the federally funded Supplemental Nutrition Assistance Program (more commonly known as “food stamps”), administering the federally funded Temporary Aid to Needy Families Program, and providing rental assistance to low-income families and individuals.
Between 2005 and August 2014, PERALTA worked at HRA, most recently as a Job Opportunity Specialist in a job center in Queens, New York. In that capacity, PERALTA was supposed to provide economic support and employment-related services to persons in need. Starting by approximately 2009, PERALTA abused her position by fraudulently issuing more than approximately 800 supplemental issuances to individuals who were not entitled to such payments. A “supplemental issuance” is a supplemental transmission of funds to a public assistance beneficiary who did not receive the amount of funds he or she was due previously. Between approximately 2009 and May 2011, PERALTA repeatedly issued such funds not to individuals who were entitled to them, but to co-conspirators, and took steps to conceal her conduct, including by using the computer system log-in information of a former employee of HRA, rather than her own. The scheme led by PERALTA resulted in the loss of more than approximately $600,000 in public funds.
Following her separation from HRA, between approximately January 2013 and March 2015, PERALTA agreed to and did receive, and help others to receive, through the mail more than 50 kilograms of cocaine meant for re-distribution.
* * *
PERALTA, 52, of the Bronx, New York, pled guilty to one count of conspiracy to commit wire fraud, which carries a statutory maximum of 20 years in prison, and one count of conspiracy to distribute and possess cocaine, which carries a statutory maximum of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
U.S. Attorney Bharara praised the work of the New York City Department of Investigation, the Drug Enforcement Administration, and the United States Postal Inspection Service.
The case is being prosecuted by the Office’s Public Corruption and Narcotics Units. Assistant U.S. Attorneys Daniel C. Richenthal and Shawn G. Crowley are in charge of the prosecution.
Former Director of Child and Adult Care Food Program Sponsor Agency Pleads Guilty to $1.5 Million FraudRead the Press Release
LaShane Hayes, 44, of La Vergne, Tennessee, pleaded guilty today to conspiracy and wire fraud after being charged with defrauding the United States Department of Agriculture’s Child and Adult Care Food Program (CACFP) through her sponsor agency, All About Giving, Inc., announced David Rivera, United States Attorney for the Middle District of Tennessee.
The Child and Adult Care Food Program was created to reimburse child care providers for meals served to low-income children and other qualifying individuals. The program is funded by the USDA and administered in Tennessee by the Tennessee Department of Human Services. Program sponsor organizations are responsible for, among other things, enlisting child care providers into the program, communicating the total amount of reimbursement funds the providers were entitled to receive each month to the Tennessee Department of Human Services and distributing reimbursement funds to child care providers.
According to the charging document and plea agreement, between March 2015 and July 2016, Hayes made monthly CACFP reimbursement requests to the Tennessee Department of Human Services knowing that these requests overstated the number of providers enrolled in CACFP through All About Giving; overstated the number of meals served to children by All About Giving providers and, therefore, caused the State of Tennessee to deposit more money into All About Giving’s bank account than All About Giving and its providers were entitled to receive.
During the same time frame, Hayes and her co-conspirators created fictitious provider records which, among other things, overstated the number of meals served to children and listed fictitious children’s names in an effort to create the appearance that All About Giving’s monthly reimbursement requests to the Tennessee Department of Human Services were accurate. Hayes and her co-conspirators also created fictitious provider lists which included individuals who were not providing any child care and physical addresses which do not exist. Hayes also wrote checks from All About Giving’s bank accounts to alleged child care providers in an effort to create the appearance that she was distributing meal reimbursement money to child care providers, however, after receiving these checks, many of the alleged providers would cash them and return a portion of the money they received to Hayes. Over $1.5 million of CACFP funds was defrauded by Hayes and her co-conspirators.
Hayes faces up to 20 years in prison and a $250,000 fine. She will be sentenced by U.S. District Judge Aleta Trauger on April 12, 2017. Her sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
This case was investigated by the United States Department of Agriculture’s Office of Inspector General and the Tennessee Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Henry C. Leventis.
Five More Sentenced as Part of Federal Methamphetamine CaseRead the Press Release
ABINGDON, VIRGINIA – Five more defendants who were part of a conspiracy that trafficked methamphetamine in and around Virginia and Kentucky, were sentenced today in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced.
Robert Holman, 35, of Winder, Georgia, previously pled guilty to one count of conspiracy to possess with the intent to distribute and distribute methamphetamine. Today in District Court, Holman was sentenced to 100 months in federal prison.
Billy Ray Marlow, 43, of Middlesboro, Kentucky, previously pled guilty to one count of conspiring to possess with the intent to distribute and distribute methamphetamine. Today in District Court, Marlow was sentenced to 216 months in federal prison.
Jeremy Reden, 38, of Tazewell, Va, previously pled guilty to one count of conspiring to possess with the intent to distribute and distribute methamphetamine and one count of possessing a firearm in furtherance of a drug trafficking crime. Today in District Court. Reden was sentenced to 188 months in federal prison.
Rebeca Metcalf, 32, of Middlesboro, Kentucky, previously pled guilty to one count of conspiring to possess with the intent to distribute and distribute methamphetamine. Today in District Court, Metcalf was sentenced to 27 months in federal prison.
Kaelea Meagan Thomas V, 27, of Middlesboro, Kentucky, previously pled guilty to one count of possessing and using a firearm in furtherance of a drug trafficking crime. Today in District Court, Thomas was sentenced to 36 months in federal prison.
“These defendants, and the others they conspired with to bring methamphetamine into Southwest Virginia and Kentucky, will be held accountable for their actions,” United States Attorney Fishwick said today. “We will continue to work with our federal, state and local law enforcement partners to stop the flow of this dangerous drug into our communities.”
Along with the five individuals sentenced today, a total of 15 defendants have been charged with being part of the conspiracy, three of which have already been sentenced to federal prison terms. Tracie Cartwright was previously sentenced to 188 months in federal prison for her role in the conspiracy, Amanda Szemac was sentenced to 12 months and one day in prison for her role in the conspiracy and Curtis Howerton was sentenced to 57 months in federal prison for his role in the conspiracy.
Several other defendants previously convicted as part of the conspiracy will be sentenced later this week in federal court in Abingdon.
The investigation of the case was conducted by the Bell County, Kentucky Sheriff’s Office, the Middlesboro, Kentucky Police Department, the Lee County Virginia Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms and Explosives Bristol and Atlanta Field Divisions. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Federal Inmate Admits Possessing ContrabandRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., pleaded guilty in federal court to a charge of attempting to obtain contraband in prison, Acting United States Attorney Soo C. Song announced today.
Douglas Vines, 45, pleaded guilty before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on July 20, 2015, Vines attempted to obtain a quantity of suboxone.
Judge Gibson scheduled sentencing for April 18, 2017, at 10 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Stephanie L. Haines, is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Federal Correctional Institution, Special Investigative Staff, conducted the investigation leading to the prosecution of Vines.
East Lyme Resident Charged with Filing False Tax ReturnsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, announced that on December 7, 2016, a federal grand jury in New Haven returned an indictment charging REGAN TIPPETT, 41, of East Lyme, with filing false tax returns.
According to the indictment and statements made in court, TIPPETT is a partner in the bails bonds company, Statewide Bail Bonds. It is alleged that, for the 2009 through 2012 tax years, TIPPETT failed to report approximately $260,000 in taxable income that was derived from bail bond fees.
The indictment charges TIPPETT with four counts of filing a false tax return, an offense that carries a maximum term of imprisonment three years on each count.
TIPPETT appeared today before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and pleaded not guilty to the charges. He was released on a $50,000 bond.
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.
This matter has been investigated by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Columbus, Ohio woman sentenced for transporting stolen items across state linesRead the Press Release
WHEELING, WEST VIRGINIA – Kasie A. Morgan, 24, of Columbus, Ohio was sentenced to 35 months in federal court today for transporting stolen goods across state lines, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Morgan conspired to steal smart phones, tablets, head phones, game stations, and computers from Walmart, Target, and Meijer stores in eight different states, including West Virginia and Ohio. The value of the stolen goods are estimated to be in excess of $500,000. She pled guilty to one count of “Conspiracy to Transport Stolen Goods in Interstate Commerce” in October 2016.
Assistant U.S. Attorney Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Columbus Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Columbus man sentenced to prison for possessing heroin in HuntingtonRead the Press Release
HUNTINGTON, W.Va. – A Columbus man caught with heroin in Huntington in 2015 was sentenced today to eight months in federal prison, announced United States Attorney Carol Casto. Tyshawn Desmeon Davis, 28, previously pleaded guilty to possession with intent to distribute heroin.
On June 29, 2015, law enforcement executed a search warrant at 1751 Buffington Avenue in Huntington after a confidential informant purchased heroin at the residence. Agents located Davis in the residence during the search and found him in possession of approximately 18 grams of heroin. Davis admitted to agents that he had been involved with other individuals in distributing heroin from the residence.
The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution. Chief United States District Judge Robert C. Chambers imposed the sentence.
This prosecution was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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California Man Pleads Guilty to Sexual AssaultRead the Press Release
G.F. “Pete” Peterman, III, United States Attorney for the Middle District of Georgia, announces that Alberto F. Islas, age 59, from the Los Angeles, California area, today entered a guilty plea to assault with intent to commit aggravated sexual abuse before the Honorable Clay D. Land, Chief United States District Judge for the Middle District of Georgia, in Columbus.
In pleading guilty, Mr. Islas admitted that on September 25, 2016, he assaulted a woman on the Fort Benning Military Reservation by threatening her with a firearm in an effort to coerce sexual relations.
Mr. Islas faces a maximum sentence 20 years in prison, a maximum fine of $250,000, or both. Sentencing will take place in about 60 days following a presentence investigation. Mr. Islas remains in custody, as he has been since the day of the incident.
United States Attorney Peterman said “This matter was resolved through swift action by the Military Police at Fort Benning and rapid investigation by the FBI, which arrested Mr. Islas and obtained the physical and testimonial evidence necessary to this successful prosecution on the day of the incident.”
This case was investigated by the Columbus office of the Federal Bureau of Investigation. Assistant United States Attorney Melvin E. Hyde, Jr. is handling the prosecution for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Brewer Man Sentenced to Five Years Probation for Failure to Register as a Sex OffenderRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Charles Roberson, 44, of Hermon, Maine, was sentenced today in U.S District Court by Judge John A. Woodcock, Jr. to five years probation for Failure to Register as a Sex Offender. The defendant pled guilty to the charge on July 21, 2016.
According to court records, in 2004, Roberson was convicted in Minnesota of Criminal Sexual Conduct in the First Degree. This felony conviction made Roberson a lifetime sex offender registrant. In or about the fall of 2015, Roberson moved from Minnesota and began living and working in Hermon, Maine. He did not notify the Minnesota Predatory Offender Registration unit that he was moving. Further, up until his arrest on February 23, 2016, he made no attempt to register with the Maine State Police Sex Offender Registry.
The case was investigated by the United States Marshals Service.
Boardman man charged with defrauding investors out of $1.2 millionRead the Press Release
A Boardman man was charged in federal court with defrauding investors out of nearly $1.2 million and related tax violations, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the FBI and Troy Stemen, Acting Special Agent in Charge of the IRS’s Cincinnati Field Office.
George N. Krinos was charged in a two-count criminal information with engaging in a securities fraud scheme and willfully failing to collect and pay taxes for his employees.
The information alleges that Krinos, through his various companies known as Krinos Holdings, engaged in a securities fraud scheme in which he sold through false and deceptive practices securities to numerous victims in the Northern District of Ohio. These securities consisted of debenture notes and private placement memoranda that were not properly registered with the Securities and Exchange Commission. Because the securities were not registered with and therefore subject to greater scrutiny by the SEC, Krinos was limited to selling them to “accredited investors” who were generally individuals having a net worth in excess of $1 million or who met specific, high-dollar income thresholds.
The information alleges that from 2011 through 2014, Krinos sold these unregistered securities to at least 10 investors in Ohio, causing them financial losses. Krinos sold the securities under the pretense that his investors’ funds would be used for legitimate business purposes, including to provide venture capital to various client companies seeking funding from Krinos Holdings. Rather than use these funds for their intended uses, Krinos instead used the money for personal expenses and to engage in unauthorized foreign currency transactions. To entice his victims, Krinos made promises that their initial investments of $.10 per share would rise in value to as much as $5 or $6 per share. Krinos also falsely told investors and others that he managed approximately $600 million in an investment account when he in fact had only $5 in the account.
The information further alleges that Krinos submitted falsified letters and statements to reflect high balances in his accounts. Krinos also falsely told investors that they were making high returns on their investments and that his relationships with the client companies was on good terms. Contrary to his representations to his investors, Krinos actually used their funds on for his own personal use at restaurants, bars, casinos, adult entertainment clubs and hotels. Rather than disclose these personal expenses, Krinos later characterized them as “sales and marketing” costs in a budget given to his shareholders at a meeting in Boardman, in 2013.
Over the course of his securities fraud scheme, Krinos caused more than ten victims to lose nearly $1.2 million.
The information also alleges that, in addition to the securities fraud scheme, Krinos improperly withheld taxes, including federal income taxes and Federal Insurance Contribution Act taxes from his employees without paying over those taxes to the IRS. Over the course of approximately two years, Krinos improperly withheld and kept approximately $91,495 of his employees’ tax contributions from the IRS.
“This defendant lied to investors as means to funding a lavish lifestyle for himself,” Rendon said.
“Krinos’ victims extend not only include those who entrusted their financial assets to Mr. Krinos, but his employees and the taxpayers whose payroll taxes were squandered to further his personal gain,” Stemen said. “IRS-Criminal Investigation will continue devote our investigative resources to ensure honesty and integrity in the financial and tax systems and hold those accountable who threaten them.”
If convicted, the defendant’s sentence will be determined by the court after review of the factors unique to this case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the criminal conduct. In all cases, the sentence will not excess the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorneys Om Kakani and Robert J. Patton, following an investigation by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove the defendant guilty beyond a reasonable doubt.
Blacksburg Man Pleads Guilty to Pair of Federal ChargesRead the Press Release
ROANOKE, VIRGINIA – A Blacksburg man pled guilty today in the United States District Court for the Western District of Virginia in Roanoke to a pair of federal charges, United States Attorney John P. Fishwick Jr. announced today.
Matthew Jeremey Holland, 23, of Blacksburg, Va., pled guilty today to one count of distribution of cocaine and one count of possessing a firearm by a previously convicted felon.
“Drugs and guns are a deadly combination,” United States Attorney Fishwick said today. “We will continue to work to make our communities safer by ridding them of illegal drugs and taking guns out of the hands of prohibited users like Mr. Holland.”
According to evidence presented at today’s hearing by Assistant United States Attorney Andrew Bassford, Holland was charged after attempting to sell cocaine and a firearm to an informant with the New River Regional Drug Task Force.
The investigation of the case was conducted by New River Regional Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.