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13 February 2017
Kankakee Felon Sentenced to Six Years in Prison for Possession of GunsRead the Press Release
URBANA, Ill. - U.S. District Judge Colin S. Bruce today sentenced Santos Salgado, 31, of the 800 block of E. Station St., Kankakee, Ill., to serve 72 months in federal prison for illegal possession of a firearm by a felon. Salgado was also ordered to serve three years of supervised release upon his release from prison. Salgado has been in the custody of the U.S. Marshals Service since his arrest in June 2016. On Aug. 15, 2016, Salgado pled guilty to two counts of possession of a firearm by a felon as charged in the indictment.
Salgado pled guilty to possession of firearms: on Feb. 1, 2016, possession of a .22 caliber handgun and a .22 caliber rifle; and, on Mar. 24, 2016, possession of a .45 caliber handgun. At the time Salgado possessed the guns, he had prior felony convictions in Kankakee County.
The charges were investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Kankakee Police Department; the Kankakee County Sheriff’s Office; ISP/KAMEG; and, the Kankakee County State’s Attorney’s Office. The case was prosecuted in the Urbana Division by Assistant U.S. Attorney Bryan Freres.
Judge Sentences Erie Man to 5 Years in Prison for Possessing Child PornographyRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to 60 months in jail and 7 years supervised release on his conviction of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Soo C. Song announced today.
United States District Judge David S. Cercone imposed the sentence on Bruce Johnson, 61, of Erie, Pennsylvania.
According to information presented to the court, Johnson possessed computer images and movies depicting minors engaging in sexually explicit conduct.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Federal Bureau of Investigation and the Pennsylvania State Police for the investigation leading to the successful prosecution of Johnson.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Houston Doctor Sentenced to Prison for Distributing Prescription NarcoticsRead the Press Release
HOUSTON – A 72-year-old doctor has been ordered to federal prison for distributing large amounts of oxycodone and hydrocodone, announced U.S. Attorney Kenneth Magidson. A federal jury convicted Richard Arthur Evans, of Houston, July 27, 2016, on all 19 counts as charged following approximately eight hours of deliberation. Co-defendant David Devido, 78, of Houston, pleaded guilty on the first day of trial.
Today, U.S. District Judge Kenneth Hoyt handed Evans a total sentence of 60 months in federal prison to be immediately followed by three years of supervised release. Evans was also ordered to pay a $250,000 fine and forfeit $268,000 in assets. In handing down the sentence, Judge Hoyt noted that Evans had previously surrendered his medical license and he had no previous criminal record. He was also ordered to serve three years of supervised release following completion of the prison term.
At the hearing, additional evidence was presented including the testimony of former patients who explained that they drove for six hours from the Baton Rouge, Louisiana, area to see Evans to obtain prescriptions for oxycodone and others drugs. The evidence also showed that Evans met patients at Winrock Clinic and New Haven Clinic in Houston. He invited patients to come to his office for oxycodone prescriptions after those clinics were closed.
Devido will be sentenced tomorrow.
During the trial, the jury heard testimony for 14 days from 15 witnesses, including other doctors who appeared as expert witnesses. The government presented more than 175 exhibits during the course of the trial.
The two defendants conspired to distribute oxycodone, a highly addictive and highly abused pain medication. Oxycodone is a semi-synthetic opiate which can be only acquired legally by prescription and dispensed by a pharmacist. As a physician, Evans wrote prescriptions and Devido, a pharmacist, dispensed the drugs. Witnesses testified these pill are sold for approximately $40 each on the street.
Evans distributed these drugs outside the course of professional practice and not for a legitimate medical purpose. He saw patients from Louisiana and other states, prescribed oxycodone and hydrocodone products and directed patients to the pharmacy Devido had owned.
Some of the patients testified as to lax procedures at the clinic and the ease with which they were able to obtain prescriptions. Evans charged patients $200-$240 cash for an initial office visit, at which time they would obtain a first prescription. Refills are not permitted for narcotics. However, the jury heard that patients were told they could obtain a new prescription in 30 days without an office visit as long as the patient sent a money order to Evans for $200-$240. Patients were also told they could obtain a third prescription without an office visit as long as they again sent the payment to Evans.
Once the patients sent in their money orders, Evans and his staff delivered the prescriptions to Devido at Briargrove Pharmacy. Devido and his staff would then send these drugs through the U.S. mail and FedEx to patients in Louisiana and other states.
The jury saw an undercover video depicting Evans signing off on prescriptions the nurse wrote without any examination or questioning of the patient. The jury also saw an undercover video depicting Evans signing off on prescriptions the nurse wrote without any examination or questioning of the patient. They also heard from a defense expert witness physician who testified he was surprised that more than 800 of the patients were from the Baton Rouge, Louisiana, area. The expert could only bring himself to say that a doctor who pre-signs prescriptions is practicing “poorly.”
As a result of the conspiracy, Evans prescribed and Devido dispensed approximately 1.6 million dosage units of oxycodone in a two-year-period. The jury heard that the total money attributed to the diversion scheme was approximately $2.4 million.
The jury convicted Evans on one count of conspiracy, five counts of illegal distribution of narcotics, eight counts of mail fraud and five counts of money laundering.
Evans was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, U.S. Postal Inspection Service, Department of Health and Human Services and the Texas State Board of Pharmacy conducted the investigation, which was dubbed Operation Oxy Overload. Assistant U.S Attorneys Cedric L. Joubert and Quincy L. Ollison prosecuted the case.
Greenbrier County business owner sentenced to federal prison for failing to pay employment taxesRead the Press Release
BECKLEY, W.Va. – A Greenbrier County man was sentenced today to two years in prison for a federal tax crime, announced United States Attorney Carol Casto. Brandon J. Black, 32, of Maxwelton, previously pleaded guilty to failing to pay employment taxes. He was also ordered to pay $632,583.18 in restitution to the Internal Revenue Service.
Black owned and operated a private security business in Lewisburg that provided services to businesses and individuals throughout West Virginia. The business underwent name changes, initially beginning as Professional Security Services and then operating as CLB Security as of 2014. Black admitted that he was responsible for collecting, accounting for, and paying over to the IRS federal income taxes and Social Security and Medicare taxes that were withheld from the wages of employees. Black further admitted that between January 2010 and June 2015, he withheld over $400,000 from employee paychecks and failed to pay over the money to the IRS. He also admitted that he failed to pay over more than $230,000 to account for his share of additional taxes as an employer. Black admitted that the total tax loss for his criminal conduct is over $630,000, and he also admitted that he owes that same amount to the IRS as restitution.
This case was investigated by agents of the IRS – Criminal Investigation Division, the FBI, and the West Virginia Office of the Insurance Commissioner – Fraud Unit. Assistant United States Attorney Eric Bacaj is handling the prosecution. United States District Judge Irene C. Berger imposed the sentence.
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Four People Charged Federally for Bank Robbery Conspiracy Using Hoax BombRead the Press Release
BIRMINGHAM –Four people involved in a conspiracy to rob a bank by placing a hoax bomb at an elementary school to divert police were in federal court last week after their January indictment was unsealed, announced Acting U.S. Attorney Robert O. Posey and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Steven L. Gerido.
A four-count indictment filed Jan. 25 in U.S. District Court charges ZACHARY EDWARDS, 35, RALPHEL MAURIE EDWARDS, 34, QUINESE NICOLE NICHOLS, 30, AND WENDELL ROY NICHOLS JR., 27, all of Birmingham, with conspiring in November to take money from a BBVA Compass Bank in Trussville by “force, violence, and intimidation.” The indictment also charges Zachary Edwards and Quinese Nichols with conspiring on Nov. 16 in Jefferson County to carry a firearm in furtherance of a crime of violence, that being bank robbery. The indictment further charges Zachary Edwards with two counts of being a convicted felon in possession of a firearm – a Ruger 9mm semi-automatic pistol on Nov. 16, and a Mossberg 12-gauge shotgun on Nov. 21.
Zachary Edwards was convicted in Jefferson County Circuit Court in April 2000 of assault, first degree, and discharging a firearm into an occupied dwelling, according to the indictment.
Zachary and Ralphel Edwards, who lived together but are not related, are both in the Jefferson County Jail on unrelated charges and are scheduled for arraignment in federal court on Thursday. Quinese and Wendell Nichols, who are siblings, turned themselves in to U.S. Marshals Friday and both were released on bond following court hearings.
The defendants carried out the conspiracy as follows, according to the indictment:
In early November, Zachary and Ralphel Edwards and Quinese Nichols discussed plans to rob a bank. Soon thereafter, Zachary and Ralphel Edwards obtained a cardboard box, a stopwatch, strands of wire, gunpowder, Play-Doh and duct tape, which Zachary Edwards used to construct a hoax explosive device. On Nov. 16, Zachary Edwards and Quinese Nichols drove to Magnolia Elementary School in Trussville, where Zachary Edwards placed the hoax device on the hood of a truck in the school’s parking lot. He then called 911 and, while disguising his voice, falsely reported to Trussville Police that he had just seen a Hispanic male place a suspicious package on a vehicle at the school.
Armed with the Ruger pistol, the two then drove to a parking lot near the Compass Bank on Chalkville Mountain Road, which they had visited two days earlier to familiarize themselves with the location. Ralphel Edwards and Wendell Nichols were parked nearby in separate vehicles to serve as lookouts for their co-conspirators.
Zachary Edwards and Quinese Nichols left Trussville without attempting to rob the bank after seeing what they believed to be a police officer close to where they were parked near the bank.
The maximum penalty for the bank robbery conspiracy is five years in prison and a $250,000 fine. The maximum penalty for conspiracy to possess a firearm during a violent crime is 20 years in prison and a $250,000 fine, and the maximum penalty for being a felon in possession of a firearm is 10 years in prison and a $250,000 fine.
The ATF investigated the case in conjunction with Trussville Police and the Alabama State Fire Marshal's Office. Assistant U.S. Attorneys William G. Simpson and Michael A. Royster are prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Former ZeekRewards CEO Sentenced to More Than 14 Years for Operating $900 Million Internet Ponzi SchemeRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Jill Westmoreland Rose announced today that U.S. District Court Judge Max O. Cogburn, Jr. sentenced the former CEO of ZeekRewards to 176 months in prison for operating a $900 million Internet Ponzi scheme. Paul Burks, 70, of Lexington, N.C. was also ordered to serve three years of supervised release and to pay $244,000,000 as restitution. A federal jury convicted Burks in July 2016 of wire and mail fraud conspiracy, wire and mail fraud, and tax fraud conspiracy following a three-week trial.
Michael Rolin, Special Agent in Charge of the United States Secret Service, Charlotte Field Division and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI) join U.S. Attorney Rose in making today’s announcement.
According to filed court documents, evidence introduced at Burks’ trial and today’s sentencing hearing:
From January 2010 through August 2012, Paul Burks was the owner of Rex Venture Group, LLC (RVG), through which he owned and operated Zeekler, a sham Internet-based penny auction company, and its purported advertising division, ZeekRewards (collectively “Zeek”). Burks and his conspirators induced more than 900,000 victims – including over 1,500 victims in the Charlotte area – to invest in their fraudulent scheme, by falsely representing that Zeekler was generating massive retail profits from its penny auctions, and that the public could share in such profits through investment in ZeekRewards. Burks and his conspirators, including Zeek’s former Chief Operating Officer Dawn Wright Olivares and her step-son and Zeek’s Senior Technology Officer Daniel C. Olivares, claimed at one point that investors would be guaranteed a 125% return on their investment.
Burks and his conspirators represented that victim-investors in ZeekRewards could participate in the Retail Profit Pool (RPP), which supposedly allowed victims collectively to share 50% of Zeek’s daily net profits. Burks and his conspirators did not keep books and records needed to calculate such daily figures. Instead, Burks simply made up the daily “profit” numbers. Contrary to the conspirators’ claims, the true revenue from the scheme did not come from the penny auction’s “massive profits.” Instead, approximately 98% of all incoming funds came from victim-investors, which were then used to make Ponzi-style payments to earlier victim investors.
In addition to promising massive returns on investments, Burks and his conspirators used a number of ways to promote Zeek to current and potential investors. For example, the conspirators hosted weekly conference calls and leadership calls, where participants could call in listen to Burks and others make false representations intended to encourage victim-investors to continue to invest money and to recruit others to invest in Zeek. Burks also organized and attended “Red Carpet Events,” where victim investors came to hear details of the scheme in person. During these events, Burks and his conspirators made false representations about the massive retail profits generated by Zeek. They also used electronic and print media, including websites, emails and journals, to make false and misleading statements about the success of Zeekler to recruit victim investors.
As the Ponzi scheme grew in size and scope it became unsustainable and it eventually began to unravel as the outstanding liability resulting from the bogus 125% return on investment continued to rise beyond control. By August 2012, Burks and his conspirators fraudulently represented to the collective victims that their investments were worth nearly $3 billion, but had no accurate books and records to even determine how much cash on hand was available to pay such liability. Contrary to representations made to victim investors, at that time, Burks and his conspirators had only $340 million available to pay out investors. Over the course of the scheme, Burks diverted approximately $10.1 million to himself.
Burks also failed to file corporate tax returns or to make corporate tax payments for his companies, among other things. In addition, for tax year 2011, Burks issued fraudulent IRS Forms 1099s, causing victim-investors to file inaccurate tax returns for phantom income they never actually received.
At sentencing, Judge Cogburn stated that for the defendant’s scheme to work would have required a miracle on the order of the “loaves and fishes.” Judge Cogburn stated that a significant sentence was necessary to promote respect for the law, provide just punishment, and also deter others considering committing fraud. Judge Cogburn further noted that the scheme was “almost breathtaking” and emphasized that the defendant had time to stop it.
Burks will be ordered to report to the Federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility. All federal sentences are served without the possibility of parole.
Burks’ co-conspirators, Dawn Wright Olivares, Zeek’s Chief Operating Officer, and her step-son and Zeek’s Senior Technology Officer, Daniel C. Olivares, were previously sentenced to 90 and 24 months in prison and three years of supervised release, respectively, for their involvement in the scheme.
In making today’s announcement, U.S. Attorney Rose thanked the U.S. Secret Service and IRS-CI for investigating the case, and the U.S. Securities & Exchange Commission, Division of Enforcement for its assistance with the investigation.
The prosecution is handled by Assistant United States Attorneys Jenny Grus Sugar and Corey Ellis of the U.S. Attorney’s Office in Charlotte.
Additional information and updated court filings about this and related cases filings can be accessed at the district’s website: http://www.justice.gov/usao/ncw/ncwvwa.html.
Former Ville Platte detective sentenced for filing false police report to cover up civil rights violationRead the Press Release
LAFAYETTE – A former detective with the Ville Platte Police Department was sentenced today to 18 months in prison for filing a false report to cover up a civil rights violation, announced U.S. Attorney Stephanie A. Finley of the Western District of Louisiana and Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division.
Nathaniel Savoy, 39, pleaded guilty to the crime in November 2016. At the plea hearing, Savoy admitted that he conspired with a civilian to burglarize a local hardware store, and used his official authority as a law enforcement officer to cover up his criminal activity. Around midnight on March 8, 2015, Savoy and his accomplice drove to Doug Ashy Building Materials in Ville Platte, La., in Savoy’s police department-issued truck. An on-duty police officer who was patrolling the area noticed their suspicious behavior and drove over to investigate. Savoy falsely told the officer that he was checking on local businesses to prevent burglaries. Satisfied with Savoy’s explanation, the police officer drove away. Savoy then dropped off his accomplice and instructed him to break in and steal 20 packs of shingles for a construction project Savoy was working on in his spare time. Savoy then responded to a traffic stop across town to create an alibi, and as the senior officer on the scene, ordered the other officers to check houses and local businesses on that side of town, which was miles from the hardware store. Savoy then returned to the hardware store with his accomplice and loaded the shingles onto the bed of his pickup truck and drove off. The next day, having realized that he might have been caught on surveillance video, Savoy wrote and filed a police report in which he falsely stated that he happened to find several packs of shingles by the side of the road, and he loaded them onto his truck for safekeeping. Savoy filed the false police report with the intent to obstruct an investigation into his conspiracy to deprive the hardware store of property.
“The vast majority of American law enforcement officers conduct themselves with honor,” said Acting Assistant Attorney General Wheeler. “But when an officer violates his or her oath and breaks the law, as did Mr. Savoy, the Department of Justice stands ready to enforce the law and protect the civil rights of all Americans.”
“The people of this District deserve to have law enforcement officers working in their communities who follow the laws they are sworn to uphold,” said U.S. Attorney Finley. “Savoy’s actions are not representative of the majority of officers who risk their lives every day to protect and serve. We will continue to work with our local and federal partners to investigate and prosecute those who violate their oath to protect and serve their communities.”
This case was investigated by the FBI’s Lafayette Division and was prosecuted by Trial Attorney Christopher J. Perras of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Jamilla Bynog of the Western District of Louisiana.
Former Porstmouth Resident Sentenced for Distribution of Child PornographyRead the Press Release
PROVIDENCE, R.I. – Adam C. Cobb, 48, formerly of Portsmouth, RI, was sentenced today in U.S. District Court in Providence to 5 years in federal prison for distributing child pornography. Cobb was arrested in April 2015, following an investigation by agents from Homeland Security Investigations (HSI) and members of the Rhode Island State Police Internet Crimes Against Children Task Force (RI ICAC).
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Cobb to serve 10 years supervised release upon completion of his prison term and to pay a fine of $25,000. Cobb pleaded guilty on February 24, 2016, to one count of distribution of child pornography.
Cobb’s sentence is announced by United States Attorney Peter F. Neronha; Matthew J. Etre, Special Agent in Charge of HSI for New England; and Colonel Ann S. Assumpico, Superintendent of the Rhode Island State Police.
According to court documents and information presented to the court, in January 2015, The National Center for Missing and Exploited Children reported to the RI ICAC that an individual in Rhode Island uploaded images of child pornography to Tumblr.com. The investigation determined that an Internet address at Adam Cobb’s then Portsmouth residence was the address used to upload the images.
On March 5, 2015, ICAC Task Force members and HSI agents, supported by Naval Criminal Investigative Service agents, executed a court-authorized search warrant at Cobb’s residence and seized various digital media, computers and cellular phones. Additionally, the next day, a cell phone was seized from Mr. Cobb by Customs and Border Patrol agents at the Dallas/Fort Worth International Airport as Mr. Cobb entered the United States, having traveled from Tokyo, Japan.
A forensic examination of the digital media seized resulted in the discovery of photos and videos of child pornography depicting two juvenile females. With the assistance of the Baltimore, Maryland Police Department and HSI offices in Baltimore and in London, England, the RI ICAC determined the identity of both females.
Adam Cobb, who was arrested on April 3, 2015, has been detained in federal custody since December 21, 2015, after the court revoked his release on $1,000,000 surety bond after he admitted to violating the court imposed terms of his pre-trial release.
The case was prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Former Harris County Deputy Ordered into Custody on Federal Child Pornography ChargesRead the Press Release
HOUSTON – The 30-year-old former law enforcement official taken into federal custody last week has been ordered detained on allegations of production and possession of child pornography, announced U.S. Attorney Kenneth Magidson. Andrew Craig Sustaita, who resided in Spring, was previously a Harris County deputy sheriff, but is no longer employed there.
A federal grand jury indicted Sustaita Feb. 1, 2017, on charges of possession and production of child pornography. He was taken into federal custody Thursday, Feb. 9. Today, he appeared before U.S. Magistrate Judge Frances H. Stacy who found he was a danger to the community and a risk of flight and ordered him to remain in custody pending further criminal proceedings. In making that determination. Judge Stacy noted the characteristics of the defendant, the substantial prison sentence he potentially faces as well as the nature and strength of the evidence. She found no condition or set of conditions that would assure the safety of the community and his continued appearances in court. She also noted that the crimes he is charged with committing would constitute a crime of violence.
During the hearing, the government contended that Sustaita has access to weapons, is dangerous and believes he is above the law. The court heard that Sustaita allegedly used his position of trust to abuse at least two children. The court heard arguments that he is facing at least 15 years in prison and, with his law enforcement training, he could be in a position to avoid capture and possible flee.
The court considered arguments from the prosecution that contended Sustaita posted images to a known child pornography website that are believed to be child erotica and that he had commented on other images on that same site. According to the information presented in court today, the investigation into the user name allegedly belonging to Sustaita found items on the Internet in various places including a pay-to-play bestiality website. Further information presented to the court included discussions of the amount and types of images authorities have discovered on two devices believed attributable to Sustaita. The court heard that one video includes a known young girl showering. Other images contain adult male genitalia allegedly of the defendant placed on or near another known young female’s head while she appears to be sleeping and others that include allegedly the same male attempting to expose that child’s genitalia.
If convicted of the sexual exploitation of a child charge (aka production of child pornography), Sustaita faces a mandatory minimum sentence of 15 and up to 30 years in federal prison. He also faces an additional 10-year-maximum sentence upon conviction of possessing child pornography. The charges are also punishable by a $250,000 maximum possible fine. Upon completion of any prison term imposed, Sustaita could also face up to life on supervised release during which the court can impose a number of special conditions designed to protect the children and prohibit the use of the Internet. Sustaita would also be required to register as a sex offender upon conviction.
The Harris County Sheriff’s Office and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorney Sherri Zack is prosecuting the case, which 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."
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Former Detective Convicted and Sentenced for Filing False Police Report to Cover up Civil Rights ViolationRead the Press Release
A former detective with the Ville Platte Police Department in Ville Platte, Louisiana, was sentenced today to 18 months in prison for filing a false report to cover up a civil rights violation, announced Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division and U.S. Attorney Stephanie A. Finley of the Western District of Louisiana.
Nathaniel Savoy, 39, pleaded guilty to the crime in November 2016. At the plea hearing, Savoy admitted that he conspired with a civilian to burglarize a local hardware store, and used his official authority as a law enforcement officer to cover his tracks. Around midnight on March 8, 2015, Savoy and his accomplice drove to Doug Ashy Building Materials in Ville Platte, Louisiana, in Savoy’s department-issued truck. An on-duty police officer who was patrolling the area noticed their suspicious behavior and drove over to investigate. Savoy falsely told the officer that he was checking on local businesses to prevent burglaries. Satisfied with Savoy’s explanation, the police officer drove away. Savoy then dropped off his accomplice and instructed him to break in and steal 20 packs of shingles for a construction project Savoy was working on in his spare time. Savoy then responded to a traffic stop across town to create an alibi. Savoy, the senior officer on the scene, ordered the other officers to check houses and local businesses on that side of town, which was miles from the hardware store. Savoy then returned to the hardware store, his accomplice loaded the shingles into the bed of Savoy’s pickup truck, and they drove off. The next day, having realized that he might have been caught on surveillance video, Savoy wrote and filed a police report in which he falsely stated that he just happened to find several packs of shingles by the side of the road and he loaded them onto his truck for safekeeping. Savoy filed the false police report with the intent to obstruct an investigation into his conspiracy to deprive the hardware store of property under color of law.
“The vast majority of American law enforcement officers conduct themselves with honor,” said Acting Assistant Attorney General Wheeler. “But when an officer violates his or her oath and breaks the law, as did Mr. Savoy, the Department of Justice stands ready to enforce the law and protect the civil rights of all Americans.”
“The people of this District deserve to have law enforcement officers working in their communities who follow the laws they are sworn to uphold,” said U.S. Attorney Finley. “Savoy’s actions are not representative of the majority of officers who risk their lives every day to protect and serve. We will continue to work with our local and federal partners to investigate and prosecute those who violate their oath to protect and serve their communities.”
This case was investigated by the FBI’s Lafayette Division, and was prosecuted by Trial Attorney Christopher J. Perras of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Jamilla Bynog of the Western District of Louisiana.
Former Des Moines, Washington Resident Convicted of Production and Possession of Child PornographyRead the Press Release
A U.S. District Court jury found a former Des Moines, Washington man guilty of producing and possessing images of child pornography, announced U.S. Attorney Annette L. Hayes. ROBERT D. THORSON, 58, was arrested May 30, 2016, after his girlfriend called Des Moines police after finding sexually explicit images of minors on THORSON’s phone. Over the three-day trial jurors heard testimony about images on THORSON’s phone, computer, thumb drives and DVDs. Chief U.S. District Judge Ricardo S. Martinez scheduled sentencing in the case for March 12, 2017.
According to records in the case and testimony at trial, THORSON’s girlfriend examined his phone looking for evidence he was seeing other women. Instead she found images of THORSON molesting young girls who resided in her home. The woman called Des Moines Police and THORSON was arrested. When investigators examined THORSON’s electronic devices they found images showing THORSON disturbing the clothing and bedding of sleeping children so he could make sexually explicit photos. THORSON’s clothing, tatoos and body parts appear in some of the images. THORSON’s electronic devices also contained images from a hidden camera installed in a bathroom at the home that captured minor children using the bathroom and the shower. While THORSON was in custody he sent letters to his former girlfriend threatening her and demanding she change her statements to police.
Production of child pornography carries a mandatory minimum sentence of fifteen years in prison.
The case was investigated by the Des Moines Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
The case was prosecuted by Assistant United States Attorney Stephen Hobbs and Special Assistant United States Attorney Cecelia Gregson. Ms. Gregson is Senior Deputy Prosecuting Attorney specially designated to prosecute child exploitation cases in federal court.
Former Charleston Job Corps Center employee sentenced to federal prison for misappropriating government fundsRead the Press Release
CHARLESTON, W.Va. – A Texas man, formerly of Charleston, was sentenced today to six months in federal prison for a financial crime, announced United States Attorney Carol Casto. Kevin Mabone, 56, previously pleaded guilty to misappropriating government funds. He was also ordered to pay $6,684.40 in restitution.
Mabone admitted that in 2014 and 2015, while he was the director of social development at the Charleston Job Corps Center, he used government credit cards to fuel his personal vehicle, rather than using the credit cards for legitimate, work-related purchases. He further admitted that from 2007 through 2012, while he was employed at the Miami Job Corps Center in Florida, he stole from the government in the same manner—by misusing government credit cards for personal fuel purchases. Mabone admitted that the total amount stolen from both locations was at least $6,684.40.
The sentencing hearing in this matter was originally scheduled for January 24, 2017. United States District Judge John T. Copenhaver, Jr., continued the sentencing until February 13, 2017, pending the United States Probation Office’s further investigation into this case. In the interim, the Court found that Mabone violated the conditions of his pretrial release because a felony warrant was issued for Mabone’s arrest in Dallas County, Texas, for theft of property. As a result, Mabone has been in federal custody since January 30, 2017.
The General Services Administration Office of Inspector General and the Department of Labor Office of Inspector General conducted the investigation. Assistant United States Attorney Gabriele Wohl is handling the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
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Former CEO of Nebraska Pharmaceutical Benefits Manager Guilty in Kickback SchemeRead the Press Release
TYLER, Texas – The former CEO of a Nebraska pharmaceutical benefits manager has pleaded guilty to engaging in illegal kickbacks in the Eastern District of Texas, announced Acting United States Attorney Brit Featherston today.
Douglas M. Pick, 57, of Omaha, Nebraska, pleaded guilty to making unlawful kickback payments today before United States Magistrate Judge John D. Love. At sentencing, Pick faces up to three years in federal prison. A sentencing date has not been set.
According to information presented in court, Pick was the founder and long-time President and CEO of Pharmaceutical Technologies, Inc. (PTI). The company, which operates as a pharmacy benefits manager (PBM), provides for the administration and delivery of pharmacy products and services. PTI uses a network of pharmacies to service employee welfare benefit plans and health care benefit programs across the United States. During Pick’s tenure, PTI contracted with certain individuals, known as “Producers,” who had close business relationships with benefit plans. These benefit plans require administrative services in connection with the delivery of pharmacy products and services to their members. Agreements between PTI and certain Producers were used to facilitate the payment of illegal kickbacks. These Producers unlawfully used their positions to steer the benefit plans to PTI in exchange for kickback payments. The payments by Pick and PTI were based on the volume of business the Producers steered to PTI. Such agreements and the related payments violate the Employee Retirement Income Security Act of 1974 (ERISA). Pick, as PTI’s President and CEO, was primarily responsible for the negotiations with Producers.
Between 2001 and 2013, Pick, acting on PTI’s behalf, entered into agreements with several Producers who unlawfully used their positions to refer benefit plan business to PTI in exchange for illegal kickback payments. These Producers collectively received illegal payments in excess of $3.5 million.
One such Producer was Tom Slack of Tyler, Texas. From 1998-2011, Slack served as the CEO of Tyler-based HealthFirst and its subsidiaries, including HealthFirst RX Solutions (HFRX). HealthFirst, a subsidiary of East Texas Medical Center, provides administrative services to employee benefit plans in East Texas. The plans include health care benefits, such as pharmacy products. HFRX, a private label PBM located in Tyler, provides pharmacy benefit services to HealthFirst’s client plans. In early 2004, Pick and Slack executed a contract in which PTI agreed to administer the pharmacy benefits of HealthFirst’s client plans through HFRX. The agreement specified that HealthFirst would pay PTI an administrative fee for every claim made for the filling of prescriptions. During April and May of 2004, Slack expressed to Pick that he wanted to personally receive money on the pharmacy business from HealthFirst in exchange for directing more business to PTI and automatic renewal of the PTI-HealthFirst agreement each year. Pick agreed that PTI would pay Slack in exchange for this commitment. To do so, Pick and Slack agreed that Slack would approve an increase of the PTI administrative fee imposed on HealthFirst’s clients for each prescription filled. PTI would then pay the increase to a shell company that Slack had established. Slack, who was fired by HealthFirst in July 2011 and later passed away in 2012, received more than $1.5 million in illegal payments/kickbacks from Pick and PTI.
Gary Gustafson, a Producer from Eden Prairie, Minnesota, received close to $750,000 in illegal payments/kickbacks from Pick and PTI. He pleaded guilty to federal health care fraud charges in the District of Minnesota in May 2016 and is awaiting sentencing.
To resolve the matter, PTI entered into a non-prosecution agreement with the United States and agreed to pay over $8.5 million. As part of the agreement, PTI agreed to cooperate with the government in the investigation and prosecution of individuals involved in the illegal kickback arrangements and to maintain internal controls, including compliance with ERISA, the Anti-Kickback Statute, and all other applicable statutes.
The case was investigated by the U.S. Department of Health and Human Services, the U.S. Department of Labor - Employee Benefits Security Administration, and the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant U.S. Attorneys Nathaniel Kummerfeld and Frank Coan and Special Assistant U.S. Attorney Kenneth McGurk prosecuted the case.
Federal inmate sentenced to prison for escapeRead the Press Release
BECKLEY, W.Va. – A federal inmate who was caught approximately a mile from Raleigh General Hospital was sentenced today to a year and a day in prison, announced United States Attorney Carol Casto. Jody Ladd Dellenback, 30, previously pleaded guilty to escape.
Dellenback admitted that on August 25, 2016, he ran away from his Bureau of Prisons escort after the completion of his medical examination at Raleigh General Hospital. Law enforcement authorities searched the area and found him about two hours later, slightly over a mile from the hospital. Dellenback was serving an 18-month sentence at the Federal Correctional Institution at Beckley for unauthorized use of a credit card.
This case was investigated by the Federal Bureau of Prisons with assistance from the Beckley Police Department, the Raleigh County Sheriff’s Office, and the West Virginia State Police. Assistant United States Attorney John File is handling the prosecution. United States District Judge Irene C. Berger imposed the sentence.
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Federal Jury Convicts Man for Robbing Multiple BusinessesRead the Press Release
Memphis, TN – A Memphis man has been convicted on seven counts of armed robbery affecting interstate commerce. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the verdict today.
According to information presented in court, during the month of January 2016, Eugene Cox, 23, and Squantivia S. Patterson, 23, both of Memphis; and Terry Farris, 38, of Millington, participated in multiple armed robberies of seven Memphis businesses: Shoney’s, Family Dollar, Krystal’s, Circle K, Church’s, Subway and Beauty and Beyond.
The guilty verdict followed a jury trial before the Honorable Sheryl Lipman, U.S. District Judge. Evidence at trial showed Terry Farris, along with Eugene Cox and Squantivia Patterson committed two robberies together.
On January 13, 2016, the trio robbed the Shoney’s at 308 Covington Pike. Later that evening, the men robbed Circle K at 6133 Macon. Cox and Patterson were captured on surveillance video inside the Circle K, while Farris remained outside of the business and served as the lookout. After the robbery of Circle K, the men parted ways.
On January 14, 2016, Farris robbed Family Dollar at 2711 Getwell and Krystal’s at 3675 Lamar. On January 16, 2016, he robbed Church’s at 925 Poplar. That same day, Cox and Patterson robbed Subway at 2938 Covington Pike. While committed on the same day, the robberies were unrelated. Cox and Patterson committed their last robbery on January 23, 2016, at the Beauty and Beyond beauty supply, 9024 Covington Pike.
As a result of the Memphis Police Department’s investigation, latent prints lifted from the crime scene at Family Dollar were determined to be the same inked impressions belonging to Farris. The investigation also yielded surveillance video from Family Dollar, Krystal’s and Church’s along with victims’ identification of Farris from photo line-ups.
For the seven counts, the penalty is a mandatory minimum of 35 years and up to life in prison. Sentencing is set for May 26, 2017, at 9:00 a.m.
The case was investigated by detectives from the Memphis Police Department’s Safe Streets Task Force. Assistant U.S. Attorneys Karen Hartridge and Kevin Whitmore prosecuted this case on the government’s behalf.
Erie Felon Sentenced to Prison for Illegally Possessing Shotgun and AmmunitionRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 32 months in jail on his conviction of violating federal firearm laws, Acting United States Attorney Soo C. Song announced today.
United States District Judge David S. Cercone imposed the sentence on Mark Anthony Gnacinski, Jr., 30.
According to information presented to the court, Gnacinski unlawfully possessed a 12 gauge shotgun and ammunition while being prohibited from firearm possession because he is a convicted felon. Gnacinski unlawfully possessed the shotgun and ammunition at approximately 2:30 a.m. while in Erie, Pennsylvania.
This case was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Erie Bureau of Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Gnacinski.
Erie County Man Admits Having Child Pornography on His ComputerRead the Press Release
ERIE, Pa. - A resident of Fairview, Pennsylvania, pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Soo C. Song announced today.
Ian Matthew Ahenger, 43, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Ahenger possessed computer images depicting minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Judge Cercone scheduled sentencing for June 5, 2017 at 11:30 a.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Ahenger on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Pennsylvania State Police conducted the investigation that led to the prosecution of Ahenger.
District Man Sentenced to Seven Years in Prison for Series of Burglaries in Northwest WashingtonRead the Press Release
WASHINGTON – Melvin Anthony Turner, 49, of Washington, D.C., was sentenced today to a seven-year prison term for a series of burglaries of commercial establishments in Northwest Washington last summer, U.S. Attorney Channing D. Phillips announced.
Turner pled guilty in November 2016, in the Superior Court of the District of Columbia, to three counts of second-degree burglary. He was sentenced by the Honorable Maribeth Raffinan. Following his prison term, he will be placed on three years of supervised release.
The charges stemmed from a series of burglaries last summer targeting small businesses in the Washington area. In his plea, Turner admitted to three separate burglaries. First, he admitted to entering the Thai Pad restaurant, in the 4400 block of Connecticut Avenue NW, on July 11, 2016, and stealing $350 from the cash register. He also admitted attempting to take items from desk drawers in other locations in the restaurant. Second, he admitted to forcibly entering the Circle Yoga studio, in the 3800 block of Northampton Street NW, on July 16, 2016, and stealing a laptop computer. Finally, he admitted to entering the Sudhouse bar and restaurant, in the 1300 block of U Street NW, on July 21, 2016, and stealing approximately $4,000 in cash and a laptop computer.
After his arrest July 24, detectives with the Metropolitan Police Department (MPD) linked Turner to a number of additional burglaries between April and July of 2016 targeting small business that the government was prepared to prosecute if the case had gone to trial.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Tiffany Fogle and Tiffany Jones. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Laura Crane and J. Matt Williams, who investigated the case and handled the sentencing.
Dallas Man Sentenced to 30 Months in Federal Prison after Pleading Guilty to Felony Offense Stemming from his Work with FAIM Economic Development CorporationRead the Press Release
DALLAS — Kevin Kenard Howard of Dallas, Texas, was sentenced today by U.S. District Judge Jane J. Boyle to serve 30 months in federal prison and pay $1,850,000 in restitution following his guilty plea in May 2016 to a felony offense stemming from his work with co-defendant Ellis Wamsley, IV and the FAIM Economic Development Corporation, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Howard, 34, pleaded guilty to one count of wire fraud and aiding and abetting. Judge Boyle ordered that he surrender to the Bureau of Prisons on April 26, 2017.
Co-defendant Wamsley, 47, of Grand Prairie, Texas, pleaded guilty in May 2016 to one count of engaging in a monetary transaction with property derived from specified unlawful activity and aiding and abetting and. Wamsley was sentenced to 54 months in federal prison and ordered to pay $1,850,000 in restitution in October 2016.
According to documents filed in the case, Wamsley formed FAIM in 2003, and in 2010, as its CEO, hired Howard to work as a financial consultant to assist in recruiting investors for FAIM. In summer 2010, while trying to recruit these investors to supply additional cash revenue for FAIM, Howard and Wamsley recruited “M.R.,” the owner/operator of “Company R,” in Flower Mound, Texas. They advised M.R. that a proposed joint venture between FAIM and Company R would generate funding for FAIM economic development projects in the southern sector of Dallas and throughout the U.S.
In August 2010, M.R. wired $2 million to a FAIM brokerage account at Charles Schwab. Approximately one month later, Wamsley transferred $1,791,703 in Company R’s investment funds from that account to a FAIM Merrill Lynch brokerage account that he had established and to which M.R. did not have access.
Wamsley told Howard that Howard would be FAIM’s primary point of contact with M.R. After the first few trades, the joint venture began to lose money. Wamsley told Howard to hide the investment losses from M.F. Howard agreed to, and did, lie to M.R. about the trading losses and the true balance of the investment account.
Howard knowingly participated in the fraud scheme by sending lulling emails to M.R. that contained false information about the true balance and value of the account. In November 2010, Howard sent an email to M.R. falsely assuring M.R. that profits in the investment account had increased. In December 2010, Howard sent an email to M.R. in which he falsely represented that the account balance was $2,436,611. In January 2011, Howard sent another email saying the total account balance was $2,500,000. In fact, from October 2010 to August 2011, Howard, at Wamsley’s instruction, sent several emails to M.R. with the specific intent to deceive, mislead and confuse M.R. about the account’s true balance. Wamsley and Howard also concealed that fact that Wamsley was diverting some of the funds in the account for his own personal benefit and use.
For instance, from October 2010 through April 2012, Wamsley fraudulently transferred more than $1.7 million of Company R investment funds to FAIM’s business accounts, and he unlawfully spent those funds for his, Howard’s and others’ personal benefits. For example, in November 2010, Wamsley used $40,024 in Company R investment funds to purchase a 2008 Cadillac Escalade for Howard; $41,764 of investment funds to purchase a 2008 Cadillac Escalade for a family member; and $125,477 in investment funds to purchase a 2007 Aston Martin for himself. Wamsley also used more than $200,000 in investment funds to host a Super Bowl fund-raising event in 2011.
This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas. This defendant is the 16th defendant convicted since August 2013 as part of that initiative.
Internal Revenue Service Criminal Investigation investigated the case. Assistant U.S. Attorney David Jarvis was in charge of the prosecution.
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Cross Lanes couple prosecuted for methamphetamine conspiracyRead the Press Release
CHARLESTON, W.Va. – A Cross Lanes man was sentenced today to 12 years in federal prison for conspiring to distribute methamphetamine with his wife, announced United States Attorney Carol Casto. Matthew Little, 39, previously pleaded guilty to conspiracy to distribute five grams or more of methamphetamine. Sherri Little, the wife of Matthew Little, was previously sentenced to three years and fourth months in prison for a federal drug charge.
Matthew Little admitted that from early 2014 until December 2014, he conspired to distribute methamphetamine with his wife, Sherri Little. Matthew Little further admitted that he and his wife would sell methamphetamine, either from their residence in Cross Lanes or at different locations throughout Cross Lanes. On September 9, 2014, Matthew Little told a confidential informant working with law enforcement to go to his home for a drug deal. Once the confidential informant arrived at the house, Sherri Little called her husband to confirm the details of the drug deal. After the conversation with her husband, Sherri Little sold methamphetamine to the confidential informant.
On December 11, 2014, Matthew Little was arrested and law enforcement recovered several bags of methamphetamine from his vehicle. Matthew Little also admitted that he possessed three guns that were located in a backpack containing additional methamphetamine found during a search of a vehicle registered to his wife.
The cases against Matthew and Sherri Little were investigated by the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney John J. Frail is in charge of the prosecution. United States
District Judge Thomas E. Johnston presided 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, including methamphetamine. 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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Cleveland man faces 15 years in prison for administering group that shared images of toddlers being sexually abusedRead the Press Release
A Cleveland man who administered an online group that shared images and videos of toddlers being sexually assaulted pleaded guilty today, said U.S. Attorney Carole S. Rendon.
Brian Keeling, 34, faces a mandatory minimum sentence of 15 years in prison after admitting to charges of advertising, receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.
He is scheduled to be sentenced on May 26.
Keeling was the administrator of a group on Kik named “Toddlers” which included 50 members that shared images and videos of young children being raped and sexually assaulted, according to court documents.
A search of Keeling’s home at 3438 West 59th Street revealed he had more than 30 movie files and hundreds of images of toddlers being raped and sexually assaulted, according to court documents.
This case is being prosecuted by Assistant U.S. Attorney Michael A. Sullivan following an investigation by the U.S. Department of Homeland Security, Homeland Security Investigations.
Civilian Army Police Officer Pleads Guilty to Armed Bank RobberyRead the Press Release
Baltimore, Maryland – Alan Kemp, age 38, of District Heights, Maryland, pleaded guilty today to armed bank robbery and to using a firearm in relation to a crime of violence. Kemp was employed as a civilian police officer by the Department of the Army at Fort Myer in Arlington, Virginia, at the time of the crime.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Gary Gardner of the Howard County Police Department.
According to the information presented by the government at today’s plea hearing, on August 26, 2016, Kemp entered a bank in the 8400 block of Baltimore National Pike in Ellicott City wearing all black, a mask over his mouth, glasses over his eyes, black gloves, and a Baltimore Ravens hat, and was carrying a loaded black and tan handgun. Kemp pointed the gun at the teller and demanded money. The teller set the cash box on the counter and backed up, as Kemp had ordered. Kemp took the money and placed it in a black trash bag. Detectives were able to track Kemp to the intersection of Thunder Hill and Twin Knolls Roads, where they saw him walk out of the woods and get into a vehicle. Police stopped the vehicle and Kemp was arrested and searched. An empty brown leather holster was found on Kemp’s waistband. In the woods nearby police found a cooler which contained the black trash bag with the money in it. Subsequent investigation identified Kemp’s fingerprints inside the cooler. The gun was found in the trunk of Kemp’s car, unsecured. The gun was loaded with 12 rounds in the magazine and a round in the chamber.
Kemp faces a maximum sentence of 25 years in prison for armed bank robbery, and a mandatory minimum sentence of five years, consecutive to any other sentence, and up to life in prison for using a firearm in relation to a crime of violence. U.S. District Judge George L. Russell III has scheduled sentencing for May 12, 2017, at 2:00 p.m.
United States Attorney Rod J. Rosenstein commended the FBI and Howard County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Aaron S. J. Zelinsky, who is prosecuting the case.
Citizen of Haiti Admits Role in Insurance Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JACQUES FLEURIJEUNE, 27, also known as “Magic,” last residing in New London, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of conspiracy to commit mail and wire fraud stemming from his involvement in an insurance fraud scheme.
According to court documents and statements made in court, between April 2011 and February 2014, FLEURIJEUNE and others conspired to stage approximately 50 car crashes in southeastern Connecticut for the purpose of defrauding automobile insurance companies and enriching themselves. A high percentage of these planned crashes were single-vehicle accidents on remote roads where there were no witnesses other than the occupants of the crashed vehicle. After each staged accident, the defendants filed fraudulent property damage and bodily injury claims with various automobile insurance companies. They then collected payouts on the fraudulent claims from the victim insurance companies. These payouts typically ranged from approximately $10,000 to $30,000 per accident.
In pleading guilty, FLEURIJEUNE admitted his personal involvement in one staged crash that occurred on October 22, 2013, in Norwich. After another scheme participant crashed the vehicle, FLEURIJEUNE replaced the other participant in the driver’s seat and falsely reported to responding law enforcement officers that FLEURIJEUNE had been driving the car at the time of the crash, and that the crash occurred because he swerved into a tree to avoid hitting a deer in the road.
After the crash, FLEURIJEUNE and his co-conspirators submitted fraudulent insurance claims that misrepresented the conditions that caused the crash, who was driving the vehicle at the time of the crash, and whether and to what extent the occupants of the vehicle suffered injuries as a result of the crash. As a result, FLEURIJEUNE and others collected a total of $31,334.52 from the insurer.
Judge Meyer scheduled sentencing for May 10, 2017, at which time FLEURIJEUNE faces a maximum term of imprisonment of 20 years. FLEURIJEUNE, a citizen of Haiti, is detained.
This matter is being investigated by the Federal Bureau of Investigation, the Norwich Police Department and the National Insurance Crime Bureau, with the assistance of the Mohegan Tribal Police Department. The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Chief of Maintenance Employee at Paradise #9 Mine Located in Muhlenberg County, Kentucky, Charged with Falsifying A Safety Record and Lying to Federal InspectorsRead the Press Release
BOWLING GREEN, Ky. – The Chief of Maintenance at Paradise #9 Mine located in Muhlenberg County, Kentucky was recently charged, by Grand Jury Indictment, for falsifying a safety record and lying to federal inspectors about making the fraudulent statement, announced Untied States Attorney John E. Kuhn, Jr.
According to the indictment, Daniel L. Couch, Jr., whose job it was to make a weekly inspection of electric equipment, specifically of the belt drive of coal seal 11 at Paradise #9 Mine, did not in fact make the required fire suppression checks for the week of May 1 through 7, in 2016.
On about May 17, 2016, an Inspector from the United States Department of Labor, Mine Safety & Health Administration, inspected the record book for fire suppression checks conducted on the belt drives for coal seam 11, which contains seven separate belt drives at seven different locations, and found that no fire suppression checks had occurred for the week of May 1 through 7, 2016.
On or about May 19, 2016, the Inspector returned to Paradise #9 mine and re-examined the record book for inspections for the belt drive for coal seam 11, at which time the book revealed that the belt drives had been examined on May 7, 2016 by “D. Couch,” and that no hazards had been observed.
Couch is further charged with knowingly making a false statement to an inspector of the United States Department of Labor, Mine Safety & Health Administration, by stating that he had been underground, and had made an inspection on the belt drive of coal seam 11 at Paradise #9 Mine on May 7, 2016, when the statement and representation was false, because the defendant had not been underground at the mine on that date, and had not conducted said inspection.
If convicted at trial, Couch could face no more than 5 years in prison. Couch’s whereabouts is unknown.
This case is being prosecuted by Assistant United States Attorney Randy Ream and is being investigated by the Mine Safety and Health Administration (MSHA) U.S. Department of Labor.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
California Mother and Son Convicted for Fraudulent Corporate Income Tax ReturnsRead the Press Release
A San Francisco, California mother and son were convicted today following a six-day trial for conspiring to file fraudulent corporate income tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Brian J. Stretch for the Northern District of California.
According to the evidence presented at trial, Howard Hsu owned and operated Didsee Corporation (Didsee), a Nevada company that provided advertisement marketing services to online websites and marketplaces. Tracy Chang, Hsu’s mother, was Didsee’s bookkeeper and was listed as the President, Secretary, Treasurer and Director. Chang opened bank accounts for the business, transferred money between the various accounts, and paid Didsee’s bills.
Hsu and Chang conspired together to file fraudulent 2008 through 2009 corporate income tax returns, and an amended 2007 corporate tax return, cheating the Internal Revenue Service (IRS) out of approximately $400,000. provided false summaries to Didsee’s return preparers, which claimed business expenses that were never incurred and included Hsu’s personal expenses. Chang signed the fraudulent returns as Didsee’s President.
“Owners can’t use their businesses as piggybanks, paying personal expenses out of their corporate accounts and falsely claiming them as business expenses,” said Acting Deputy Assistant Attorney General Goldberg. “All employers are legally required to file accurate and complete returns and pay their fair share – just like their employees.”
“This case was not about a mistake or a misunderstanding, it was about greed,” said Special Agent in Charge Michael T. Batdorf of IRS Criminal Investigation (CI). “Tracy Chang agreed to help her son, Howard Hsu and his business cheat the IRS. Hsu fabricated millions of dollars in expenses and Chang knew the expenses were false. She maintained the books and signed the tax returns while Hsu gave the CPA the “cooked books”. In today’s economic environment, it’s more important than ever that the American people feel confident that everyone is playing by the rules and paying the taxes they owe.”
A sentencing date has not been scheduled. Hsu and Chang face a statutory maximum sentence of five years in prison for the conspiracy count and three years in prison for the false return counts. Hsu and Chang also face a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Stretch thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Colin Sampson and Trial Attorney Matthew Kluge of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
California Mother and Son Convicted for Fraudulent Corporate Income Tax ReturnsRead the Press Release
SAN FRANCSICO – San Francisco residents Howard Hsu and his mother, Tracy Chang, were convicted today following a one-week trial for conspiring to file fraudulent corporate income tax returns, announced U.S. Attorney Brian J. Stretch and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the evidence presented at trial, Hsu, 36, owned and operated Didsee Corporation (Didsee), a Nevada company that provided advertisement marketing services to online websites and marketplaces. Tracy Chang, 65, was Disdee’s bookkeeper and was listed as the President, Secretary, Treasurer and Director. Chang opened bank accounts for the business, transferred money between the various accounts, and paid Didsee’s bills.
Hsu and Chang conspired together to file fraudulent 2008 through 2009 corporate income tax returns, and an amended 2007 corporate tax return, cheating the Internal Revenue Service (IRS) out of approximately $400,000. Hsu provided false summaries to Didsee’s return preparers, which claimed business expenses that were never incurred and included Hsu’s personal expenses. Chang signed the fraudulent returns as Didsee’s President.
“Owners can’t use their businesses as piggybanks, paying personal expenses out of their corporate accounts and falsely claiming them as business expenses,” said Acting Deputy Assistant Attorney General Goldberg. “All employers are legally required to file accurate and complete returns and pay their fair share – just like their employees.”
“This case was not about a mistake or a misunderstanding, it was about greed ,” said Special Agent in Charge Michael T. Batdorf of IRS Criminal Investigation (CI). “Tracy Chang agreed to help her son, Howard Hsu and his business cheat the IRS. Hsu fabricated millions of dollars in expenses and Chang knew the expenses were false. She maintained the books and signed the tax returns while Hsu gave the CPA the “cooked books”. In today’s economic environment, it’s more important than ever that the American people feel confident that everyone is playing by the rules and paying the taxes they owe.”
A date for sentencing has not yet been scheduled. Hsu and Chang face a statutory maximum sentence of five years in prison for the conspiracy count and three years in prison for the false return counts. Hsu and Chang also face a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Stretch thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Colin Sampson and Trial Attorney Matthew Kluge of the Tax Division, who are prosecuting the case.
Belleville Man Charged with Bank Robbery of Regions Bank in Collinsville, IllinoisRead the Press Release
Michael S. Putman, 50, of Belleville, was charged on Saturday, February 11, 2017, with a one-count criminal complaint of Bank Robbery. The alleged violation took place on Friday, February 10, 2017 in Collinsville, Madison County, Illinois. Today, the Court ordered that Putman be detained without bond pending indictment.
The offense charged in the complaint alleges that on February 10, 2017, Michael Putman committed the offense of Bank Robbery in that he by force, violence and intimidation, took from the presence of another, money belonging to and in the care and custody, control, management, and possession of the Regions Bank in Collinsville, Illinois.
If convicted, the defendant faces a term in prison of up to 20 years, a fine up to $250,000 and a term of supervised release of up to five (5) years.
A criminal complaint is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The case was investigated by the Collinsville Police Department and the Federal Bureau of Investigation with assistance from the Illinois State Police, East St. Louis Police Department and the United States Marshal Service. The case is assigned to Assistant United States Attorney Ali Summers.
Bank Manager Admits Stealing More Than $500K from Customer AccountsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CARRIE CAESAR, 46, of New Britain, pleaded guilty today in New Haven federal court to embezzling funds from Webster Bank Corporation.
According to court documents and statements made in court, CAESAR was a long-time employee of Webster Bank where she served in a variety of roles, including bank teller, account manager and, most recently, as manager of the Avon branch office. Between 2003 and 2016, CAESAR withdrew at least $535,600 from account holders’ certificate of deposit (CD) accounts at Webster Bank, without the knowledge or consent of the account holders, used the embezzled funds for her own purposes, and took steps to conceal her misconduct.
CAESAR targeted primarily six customers, all of whom were at least 79 years old and with whom she had developed a relationship as an account manager.
CAESAR pleaded guilty to one count of theft, embezzlement and misapplication by a bank officer and employee, an offense that carries a maximum term of imprisonment of 30 years. She is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on May 8, 2017.
CAESAR is released on a $150,000 bond.
This matter is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Albuquerque-Area Construction Contractor Pleads Guilty to Federal Tax Evasion and Fraud ChargesRead the Press Release
ALBUQUERQUE – Joseph Dubois, 37, of Albuquerque, N.M., pled guilty last week in federal court to evading federal taxes evasion and fraudulently presenting a fictitious surety bond. The guilty plea was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Ismael Nevarez Jr. of the Phoenix Field Office of IRS Criminal Investigation, and Special Agent in Charge David A. House of the Department of the Interior, Office of Inspector General.
Dubois, the owner and operator of Regency Development Group (RDG), a construction contractor located in Albuquerque, was charged by felony information with tax evasion and presenting a fictitious surety bond. According to the information, Dubois evaded his federal corporate tax obligations from Nov. 2011 to Oct. 2013, by opening and concealing a new bank account to circumvent tax liens, removing and dissipating assets to avoid their seizure, and by underreporting income and gross receipts. The information also alleged that Dubois created a materially false document, a surety bond, and fraudulently presented it as an actual security and financial instrument under the authority of a surety company.
On Feb. 8, 2017, Dubois pled guilty to the two charges in the information. In entering the guilty plea, Dubois admitted that as owner and operator of RDG, he evaded payment of $237,251 in federal employment taxes for tax years 2010 through 2012. Specifically, Dubois admitted that from Nov. 2011 through Oct. 2013, he opened a bank account which he used to divert funds in an attempt to circumvent liens and levies, and to evade payment of his tax liabilities. Dubois also acknowledged underreporting income and gross receipts to the IRS.
According to Dubois’s plea agreement, in Dec. 2011, RDG entered into contracts with the Ramah Navajo School Board to renovate a building at the Pine Hill School. The contracts required RDG to obtain and provide a surety bond. On Feb. 10, 2012, Dubois produced a materially false and fictitious surety bond which appeared to be an actual security under the authority of the Western Surety Company.
At sentencing, Dubois faces a statutory maximum penalty of 25 years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Albuquerque office of IRS Criminal Investigation and Department of the Interior, Office of Inspector General, and is being prosecuted by Assistant U.S. Attorney Jeremy Pena.
Albuquerque Man Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Jorge Chacon, 33, of Albuquerque, N.M., pled guilty today in federal court to violating the federal firearms laws by unlawfully using and carrying a firearm in furtherance of a drug trafficking crime.
Chacon was arrested during an ATF-led investigation that resulted in the filing of 59 federal indictments and one federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. The investigation began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Chacon was charged in a seven-count indictment filed on June 30, 2016. The indictment charged Chacon with distributing methamphetamine, carrying a firearm in relation to a drug trafficking crime, and being a felon in possession of a firearm on May 16, 2016; being a felon in possession of a firearm on May 19, 2016; being a felon in possession of a firearm and possession of firearms with obliterated serial numbers on May 26, 2016. According to the indictment, Chacon committed the offenses in Bernalillo County. Chacon was prohibited from possessing firearms or ammunition because of his prior felony convictions for burglary, aggravated battery and aggravated battery with a deadly weapon.
During today’s proceedings, Chacon pled guilty to Count 2 of the indictment charging him with carrying a firearm in relation to a drug trafficking crime. In entering the guilty plea, Chacon admitted that on May 16, 2016, he carried a firearm in furtherance of the sale of methamphetamine. At sentencing, Chacon faces a statutory mandatory minimum penalty of five years in federal prison. A sentencing hearing has yet to be scheduled.
To date, 27 of the 104 defendants have entered guilty pleas and two have been sentenced. The remaining defendants have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The case was investigated by the Albuquerque office of ATF. Assistant U.S. Attorney Norman Cairns is prosecuting the case.
Albuquerque Man Pleads Guilty to Aiding and Abetting Armed Bank RobberyRead the Press Release
ALBUQUERQUE – Christopher Gallegos, 33, of Albuquerque, N.M., pled guilty this morning in federal court to aiding and abetting the armed robbery of an Albuquerque-area bank.
Christopher Gallegos was arrested in March 2016, on a criminal complaint charging him and four co-defendants, Greg Miera, 51, Martin Huerta, 43, Christian Herrera, 20, and Isaiah Gallegos, 20, all of Albuquerque, with bank robbery. According to the complaint, a source identified the co-defendants as the individuals involved in robbing the US Bank branch located at 5620 Wyoming Blvd. NE in Albuquerque, on March 30, 2016. The complaint alleged that Albuquerque Police Department (APD) officers conducted surveillance as a vehicle with four men pulled up to the US Bank on the afternoon of March 30, 2016. The complaint alleged that three of the men remained in the vehicle while the fourth entered the bank, threatened to shoot the bank employees, and demanded that two bank tellers place cash into a plastic bag.
Miera, Huerta, Herrera, Isaiah Gallegos and Christopher Gallegos were subsequently indicted on an armed bank robbery charge on April 27, 2016.
During today’s proceedings, Christopher Gallegos entered a guilty plea to the indictment. In entering the guilty plea, Christopher Gallegos admitted aiding and abetting the armed robbery of the U.S. Bank branch on March 30, 2016, by conducting surveillance of various potential banks in the two days leading up to the robbery.
Co-defendant Huerta previously entered a guilty plea to the indictment on Sept. 9, 2016, and Miera entered a guilty plea on Oct. 11, 2016.
At sentencing, Christopher Gallegos, Miera and Huerta each face a statutory maximum penalty of 25 years in federal prison. The co-defendants remain in custody pending sentencing hearings.
The two remaining co-defendants have entered pleas of not guilty to the indictment. Charges in complaints and indictments are merely accusations and defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney Letitia Simms is prosecuting the case.
11 February 2017
New England HIDTA Recognized for Investigative ExcellenceRead the Press Release
BOSTON – The New England High Intensity Drug Trafficking Area (HIDTA) was recognized on Thursday, Feb. 9, 2017, with the National HIDTA of the Year Award for its outstanding work in reducing drug trafficking in the region.
“The New England HIDTA has been instrumental in disrupting the flow of dangerous drugs in the region,” said Acting United States Attorney William D. Weinreb. “Their work is unquestionably demanding, dangerous and at times thankless, but through their dogged determination communities across New England are safer places for children and families to call home. I hope this award validates their hard work and reaffirms their commitment in these challenging times. Congratulations to the leadership and each member of the NEHIDTA team.”
“New England HIDTA is both honored and humbled to be recognized as HIDTA of the year for 2016,” said Jay Fallon, Executive Director of New England HIDTA. “This award serves to honor the efforts of all entities affiliated with the HIDTA Program. We will continue to address the burgeoning drug threat in New England holistically with our partners in law enforcement, treatment, prevention and education.”
In 2015, the New England HIDTA disrupted or dismantled 170 drug trafficking organizations (DTOs) and 19 money laundering organizations (MLOs). This represents 6% of all DTOs and 10% of all MLOs disrupted or dismantled nationwide. In addition, in 2015, the New England HIDTA trained more than 3,400 students, supported more than 12,000 de-conflictions, and provided analytical support to nearly 400 cases.
The New England HIDTA has also championed innovative and progressive approaches to law enforcement and counterdrug policy. The HIDTA’s SCOPE of Pain initiative, conducted in collaboration with Boston University School of Medicine, has become a model for public health and public safety partnerships to combat the opioid epidemic. The New England HIDTA also is recognized as one of the founding members of the HIDTA Heroin Response Strategy, which now encompasses eight regional HIDTAs and 20 states.
The New England HIDTA and its leadership have also been reliable and trusted partners to the White House Office of National Drug Control Policy (ONDCP) and to the entire National HIDTA Program. They frequently host events in collaboration with ONDCP leadership and support the implementation of the National Drug Control Strategy priorities throughout the New England region.
The HIDTA program, created by Congress through the Anti-Drug Abuse Act of 1988, facilitates cooperation and intelligence sharing between federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. There are currently 28 HIDTAs, which include approximately 16% of all counties in the United States and 60% of the U.S. population. The New England HIDTA was designated in 1999 to eliminate DTOs and improve efficiency and effectiveness of law enforcement. For more information on the New England HIDTA, visit their website.
Former U.S. Attorney honored at national HIDTA award ceremonyRead the Press Release
WHEELING, WEST VIRGINIA – Former U.S. Attorney William J. Ihlenfeld, II, was presented with the Outstanding Support to the National HIDTA Program award this week, Acting United States Attorney Betsy Steinfeld Jividen, announced.
In presenting him with this prestigious award, The Office of National Drug Control Policy stated that:
“Mr. Ihlenfeld demonstrated a remarkable commitment to the HIDTA program. In addition to serving on the executive boards of both the Appalachia and the Washington/Baltimore HIDTAs, he advocated for expansion of the HIDTA program to the counties in his state that were among the hardest hit by the opioid epidemic. Mr. Ihlenfeld also is noteworthy for championing drug use prevention initiatives in his state and throughout the HIDTA regions he served. Mr. Ihlenfeld is recognized as a powerful advocate of and steadfast partner to the National HIDTA Program.”
Jividen said, “Those of us who worked with Bill are glad to see him honored for his hard work and many achievements in this area during his tenure as United States Attorney.”
10 February 2017
Woman Sentenced in Prison Bribery and Drug Trafficking CaseRead the Press Release
MISSOULA —Lauren Jane Hoskins, 26, of Somerville, Tennessee, was sentenced to 14 months in prison, 3 years supervised release, and a $100 special assessment by Chief United States District Court Judge Dana L. Christensen on Friday, February 10, 2017 for aiding and abetting the possession with intent to distribute controlled substances—methamphetamine and Suboxone—into the Montana State Prison The charges were part of a scheme where Erin Bernhardt, an employee in the prison laundry, smuggled the controlled substances into inmates at the prison in exchange for bribes. The crimes occurred between April and August 2015.
The court previously sentenced other members of the scheme to the following sentences: Cordero Robert Metzker, to three years in prison; Erin Bernhardt, to 14 months in prison; and Ian Scott Barclay to 92 months in prison.
The charge against Hoskins is the result of an investigation by the Federal Bureau of Investigation, the United States Postal Inspector, the Montana Department of Corrections-Division of Investigations, Montana State Prison Warden Leroy Kirkegard and his staff, and the Montana Division of Criminal Investigations. Criminal Chief Assistant United States Attorney Joseph Thaggard and Assistant United States Attorney Jeffrey Starnes prosecuted the case.
United States Attorney Michael Cotter stated, “This is an important case aimed at an ongoing effort to root out public corruption and exclude unlawful controlled substances from the Montana State Prison. The sentence issued by the court sends a powerful message that those who introduce drugs into the prison will be investigated, prosecuted, and imprisoned.” Cotter also praised the cooperation of the various agencies that worked in unison to conduct the investigation and prosecution.
Westerly Resident Sentenced for Operating Butane Hash Oil LabRead the Press Release
PROVIDENCE, R.I. – Scott Slagel, 41, of Westerly, RI, was sentenced today by U.S. District Court Judge John J. McConnell, Jr., to three years probation for operating a butane hash oil lab in his Westerly residence. Slagel pleaded guilty on May 13, 2016, to endangering human life while illegally manufacturing a controlled substance.
In court filings and at today’s sentencing hearing, the government recommended a sentence of 27 months imprisonment, which falls within the sentencing guideline range in this matter of 24 to 30 months imprisonment.
According to court documents and information presented to the court, in the early morning hours of November 27, 2015, in the wake of a fire in a multi-unit apartment building on Apache Drive in Westerly, investigators discovered an active butane hash oil lab in the unit where the fire originated. After extinguishing the fire and securing the scene, investigators located a number of items related to a butane hash oil manufacturing laboratory, including marijuana plants, multiple cans of butane, glass tubes and a vacuum oven containing butane hash oil, commonly referred to as “shatter.”
At the time of his guilty plea, Slagel admitted to the court that he used the above-described items to manufacture butane hash oil, in what is known as the open-blast method - a dangerous and potentially explosive process.
In March 2016, in announcing federal criminal charges in four cases against five individuals all of whom, it is alleged, were involved in the operation of unrelated BHO labs in South Kingstown, Westerly, Providence, and West Warwick, including the lab discovered in Slagel’s residence, United States Attorney Peter F. Neronha said then, and reiterates now, “This activity poses an enormous threat to human life. Where BHO manufacturing is going on, no one is safe: not those involved in the illegal operation themselves; not those who happen to be living or visiting nearby; not first responders. The demand for BHO, whether for purported medical purposes or otherwise, cannot justify its production, given the magnitude of risk. Second, those who continue to engage in the production of BHO, notwithstanding what ought to be abundantly clear by now, will be the strong focus of our collective law enforcement efforts.”
This case was prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and Richard B. Myrus.
This matter was investigated by the Westerly Police Department, DEA and the Rhode Island State Fire Marshal’s Office.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Virginia Attorney Convicted of Defrauding Local Construction Company Out of More Than A Million DollarsRead the Press Release
FRANKFORT, Ky. – Daniel R. Goodwin, an attorney from McLean, Virginia, has been convicted of defrauding a Laurel County construction company, in connection with a purported project to build a “green recycling center” in Manchester, Ky. The company, Elza Construction, LLC, lost $1.32 million upfront and incurred several million dollars more in excavation and site preparation costs, but nothing was ever built at the site.
Late Thursday, a federal jury in Frankfort delivered a guilty verdict on four counts of wire fraud and one count of conspiracy to commit wire fraud. The verdict came after a week of trial and a day-and-a-half of deliberation.
The evidence at trial established that from 2008 until at least 2011, a company called “Waste Not Technologies,” which also went by the name “Global Green Holdings,” made false promises to the city of Manchester and several would-be contractors who wanted to work on building a green recycling center that would turn municipal waste into useful products like railroad ties and insulation. David Bennett, the chief executive officer of Global Green Holdings, promised the project would create 1,400 jobs and bring in millions in revenue.
Part of this scheme was to require contractors like Elza Construction to send money to an escrow account in lieu of a traditional construction performance bond, with the promise that the money would be used to release financing for the project and that the money would be returned on a set schedule, typically within 3 to 4 months. Daniel Goodwin controlled the escrow account that received money from Elza Construction and others. Instead of following the terms of written agreements, he distributed the money among his co-conspirators and kept some of it for himself. The money was never returned to Elza Construction or any of the other contractors.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky, and Amy Hess, Special Agent in Charge, Federal Bureau of Investigation, jointly announced the verdict. The case was investigated by the FBI and Assistant U.S. Attorneys Gregory Rosenberg and Andrew Trimble prosecuted the case on behalf of the federal government.
Goodwin is scheduled to be sentenced on June 14, 2017. He faces a maximum sentence of 20 years on each count of wire fraud, and a maximum of five years on the count of conspiracy to commit wire fraud. However, any sentence would be imposed only after the Court has considered the U.S. Sentencing Guidelines and the applicable statutes.
U.S. Attorney's Office Concludes Investigation into Fatal Shooting in Northeast WashingtonRead the Press Release
WASHINGTON - The U.S. Attorney’s Office for the District of Columbia announced today that it has completed its review of the fatal shooting of Peter John, Jr., by a Metropolitan Police Department (MPD) officer on Feb. 1, 2016, in the Clay Terrace area of Northeast Washington. After a careful review of all of the evidence, the U.S. Attorney’s Office has concluded that there is insufficient evidence to pursue federal criminal civil rights or District of Columbia charges against the officer involved in the fatal shooting of Mr. John.
The U.S. Attorney’s Office and the Metropolitan Police Department conducted a comprehensive review of the incident, including interviews of civilian and law enforcement witnesses as well as a review of autopsy and toxicology reports, Mobile Crime and District of Columbia Department of Forensic Sciences reports, photographs, and diagrams; video footage enhanced by the FBI; DNA analysis; audio transmissions; and physical evidence collected on the scene, including a BB pistol that is virtually identical in appearance to a real firearm.
According to the evidence, the shooting took place Feb. 1, 2016, at approximately 2:07 a.m., in the 5300 block of Clay Terrace NE. The officer, who was assigned to patrol the area in a marked MPD sport utility vehicle, first encountered Mr. John, 36, in the vicinity of the 300 block of 53rd Street NE. When the officer rolled down his window to ask Mr. John if he lived in the area, Mr. John started running and disappeared on nearby Cloud Place NE. As the officer continued his patrol, he saw Mr. John again, this time standing by a parking lot in the 300 block of 53rd Street NE. As the officer pulled up, Mr. John ran past the officer’s SUV and into the Clay Terrace housing area. After unsuccessfully trying to block Mr. John’s path by driving around the block, the officer drove back to the parking lot area and again saw Mr. John.
As the officer was pulling over, Mr. John ran past the officer’s SUV. The officer got out of his vehicle and pursued Mr. John on foot. As Mr. John turned left into the 5300 block of Clay Terrace, he slipped on the wet ground. According to the officer, as Mr. John fell, he saw a black gun, later determined to be a BB gun, fall from Mr. John’s hand. Mr. John landed on top of the gun. The officer, who was right behind Mr. John, could not stop his momentum and ended up straddling Mr. John while activating the emergency button on his radio for help. The officer ordered Mr. John to show his hands. Instead, Mr. John struggled repeatedly to push himself up from the ground while reaching under his body in the direction of the gun. As Mr. John raised up, the officer fired one round, fatally wounding Mr. John in the neck area. In less than 30 seconds, another officer arrived on the scene and observed the gun next to Mr. John’s body. DNA testing further confirmed that Mr. John’s DNA was on the weapon.
While the shooting was not captured on video, the footage of the dimly lit area shows furtive movements by Mr. John, to include Mr. John emerging from behind a building near Cloud Place, and his unprovoked flight from the officer.
After a careful, thorough, and independent review of the evidence, federal prosecutors have found insufficient evidence to prove beyond a reasonable doubt that the officer used excessive force under the circumstances. To the contrary, there is sufficient evidence to corroborate the officer’s account that he was acting in self-defense at the time of the shooting.
Use-of-force investigations generally
The U.S. Attorney’s Office reviews all police-involved fatalities to determine whether sufficient evidence exists to conclude that any officers violated either federal criminal civil rights laws or District of Columbia law. To prove such violations, prosecutors must typically be able to prove that the involved officers willfully used more force than was reasonably necessary. Proving “willfulness” is a heavy burden. Prosecutors must not only prove that the force used was excessive, but must also prove, beyond a reasonable doubt, that the officer acted with the deliberate and specific intent to do something the law forbids. A conclusion that “there is insufficient evidence” is not meant to suggest anything further about what evidence, if any, exists.
The U.S. Attorney’s Office remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources necessary to ensure that all allegations of serious civil rights violations are fully and completely investigated. The Metropolitan Police Department’s Internal Affairs Division investigates all police-involved fatalities in the District of Columbia.
Two Rochester Men Indicted on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y.-Acting U.S. James P. Kennedy, Jr. announced today that a federal grand jury has indicted Brian Donaldson, 50, of Webster, NY, and Pablo Ulloa, 33, of Rochester, NY, on a charge of conspiracy to possess with intent to distribute five grams or more of methamphetamine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years and a $5,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the indictment and a previously filed complaint, the Drug Enforcement Administration received a tip regarding the drug trafficking activities of the defendants. On October 27, 2016, Hamburg Police conducted surveillance at a local motel where the defendants were staying. At approximately 9:15 p.m., Donaldson left the motel and was subsequently pulled over in a traffic stop by Hamburg officers. A search of the vehicle recovered a small quantity of methamphetamine, and a lock box which contained a much larger quantity of methamphetamine.
A search was then conducted of the motel room where Donaldson and Ulloa were staying. During that search, officers recovered more containers of methamphetamine, several cellular telephones, drug packaging materials, a scale and pipes.
The defendants will be arraigned at a later date before U.S. Magistrate judge Michael J. Roemer.
The indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division and the Hamburg Police Department, under the direction of Chief Gregory Wickett.
The fact that defendants have been charged with crimes are merely accusations and defendants are presumed innocent until and unless proven guilty.
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Two New York City Residents Pleaded Guilty to All Charges in Terrorism CaseRead the Press Release
Earlier today, Munther Omar Saleh, 21, of Queens, New York, pleaded guilty at the federal courthouse in Brooklyn, New York, to all charges in an indictment charging him with conspiring and attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, and with assaulting and conspiring to assault federal officers. Saleh’s co-defendant, Fareed Mumuni, 22, of Staten Island, New York, pleaded guilty yesterday, on Thursday, February 9, to conspiring and attempting to provide material support to ISIL, assaulting and conspiring to assault federal officers and attempted murder of federal officers. Saleh faces up to 53 years of imprisonment at sentencing, while Mumuni faces up to 85 years of imprisonment at sentencing. Saleh’s and Mumuni’s guilty pleas were accepted by U.S. District Judge Margo K. Brodie, who has scheduled both sentencing hearings for May 16.
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Robert L. Capers for the Eastern District of New York, Assistant Director in Charge William F. Sweeney, Jr. of the FBI’s New York Field Office and Commissioner James P. O’Neill of the New York City Police Department (NYPD).
“Munther Omar Saleh and Fareed Mumuni conspired to provide material support to ISIL and devised a plan to conduct an attack in New York. During his arrest, Mumuni stabbed an FBI agent numerous times, but thankfully the agent’s body armor protected him from the defendant’s attack and the defendant was safely apprehended by law enforcement,” said Acting Assistant Attorney General McCord. “Counterterrorism is the National Security Division’s highest priority. We will continue to seek justice against any individuals who conspire to provide material support to designated foreign terrorist organizations, and those who attempt to harm the brave law enforcement officials who risk their lives to protect us.”
“In the name of ISIL’s false and hateful ideology, these defendants attacked the law enforcement officers who work tirelessly to preserve the safety of our communities,” stated U.S. Attorney Capers. “We are especially grateful that an FBI Special Agent survived the violent attack perpetrated by Fareed Mumuni, who repeatedly stabbed the agent in the chest during the execution of a search warrant in a terrorism investigation. We and our partners on the Joint Terrorism Task Force remain ever-vigilant in our efforts to protect our citizens and allies and by bringing terrorists to face justice. Today’s convictions will help incapacitate these defendants and sends a strong message to those who would follow in their footsteps.” Mr. Capers thanked the West Midlands Police in the United Kingdom for their assistance in providing evidence related to foreign coconspirators.
“Today’s guilty pleas show just how close the threat of homegrown terrorism exists for New York City. From their respective homes in Queens and Staten Island, Saleh and Mumuni conspired to place a pressure cooker bomb in the New York metro area on behalf of ISIL. Mumuni even attacked an FBI agent when a court-authorized search was being conducted by the Joint Terrorism Task Force at his home in Staten Island. Threats like this are exactly why protecting the United States from a terrorist attack remains the FBI’s number one priority,” stated Assistant Director in Charge Sweeney.
“Saleh and Mumumi engaged in plotting attacks against New York City in the name of ISIL. They received instructions from senior ISIL leaders in Syria. They were committed to violence. When the arrests were made the defendants were armed. One attacked an FBI agent with a large knife. The detection and disruption of these plots is a credit to the partnership between the FBI-NYPD Joint Terrorism Task Force and the NYPD's Intelligence Bureau,” said Police Commissioner O'Neill.
As alleged in the indictment and in other court filings, Saleh and Mumuni conspired to support ISIL by helping their co-conspirators attempt to travel to ISIL-controlled territory in order to join ISIL, and by plotting to use a pressure-cooker bomb to conduct a terrorist attack in the New York metropolitan area on behalf of ISIL. As part of their support for ISIL, Saleh and Mumuni, together with other co-conspirators, assisted New Jersey resident Nader Saadeh’s planned travel to ISIL-controlled territory. Saleh personally accompanied Saadeh to John F. Kennedy International Airport where Saadeh departed on a flight for Jordan in the first leg of a planned trip to ISIL-controlled territory. Saadeh was subsequently apprehended and pleaded guilty in the U.S. District Court for the District of New Jersey to conspiring to provide material support to ISIL. Working with ISIL fighters located overseas, Saleh and Mumuni also coordinated their plot to conduct a terrorist attack in New York City. Saleh sought and received instructions from an ISIL attack facilitator to create a pressure-cooker bomb and discussed with the same ISIL attack facilitator potential targets for a terrorist attack in New York City.
As detailed in court documents, Saleh informed ISIL fighters that his co-conspirators, five individuals located in New York and New Jersey, had confronted law enforcement officers who were continuously surveilling them. Saleh also sought and received religious authorization from an ISIL fighter permitting Mumuni to conduct a suicide “martyrdom” attack by using a pressure-cooker bomb against law enforcement officers who were following the co-conspirators and thus preventing them from traveling to join ISIL.
On June 13, 2015, Saleh and another individual were arrested in Queens after they charged at a federal officer who was performing physical surveillance of Saleh. Saleh and the other individual were armed with knives. Following his arrest, Saleh admitted to agents that he had discussed with Mumuni physically attacking the law enforcement officers who were surveilling Mumuni. On June 17, 2015, during the execution of a search warrant at his residence in Staten Island, Mumuni was arrested after he repeatedly stabbed an FBI agent in the torso with a large kitchen knife. Fortunately, the knife did not penetrate the agent’s protective body armor and he sustained only minor injuries.
During a search of the vehicle used by Mumuni, investigators recovered a second large knife. In his post-arrest interview, Mumuni admitted that Saleh had informed him that an ISIL member had sanctioned Mumuni’s planned suicide attack on law enforcement and that Saleh and Mumuni had discussed using a pressure-cooker bomb to carry out the attack. Mumuni further admitted that he had kept the knife he used to attack the agent wrapped in a t-shirt in his bed, as well as the knife recovered from the vehicle, specifically for use in an anticipated confrontation with law enforcement officers.
The government’s case is being prosecuted by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon, Douglas M. Pravda and Ian C. Richardson for the Eastern District of New York are in charge of the prosecution, with assistance provided by Trial Attorneys Justin Sher and Robert Sander of the National Security Division’s Counterterrorism Section.
Two New York City Residents Plead Guilty to All Charges in Terrorism CaseRead the Press Release
Earlier today, Munther Omar Saleh of Queens, New York, pleaded guilty at the federal courthouse in Brooklyn, New York, to all charges in an indictment charging him with conspiring and attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), and with assaulting and conspiring to assault federal officers. Saleh’s co-defendant, Fareed Mumuni, of Staten Island, New York, pleaded guilty yesterday, on Thursday, February 9, 2017, to conspiring and attempting to provide material support to ISIL, assaulting and conspiring to assault federal officers, and attempted murder of federal officers. Saleh faces up to 53 years of imprisonment at sentencing, while Mumuni faces up to 85 years of imprisonment at sentencing. Saleh’s and Mumuni’s guilty pleas were accepted by United States District Judge Margo K. Brodie, who has scheduled both sentencing hearings for May 16, 2017.
The pleas were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, Acting Assistant Attorney General for National Security Mary B. McCord, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Commissioner James P. O’Neill of the New York City Police Department (NYPD).
As alleged in the indictment and in other court filings, Saleh and Mumuni conspired to support ISIL by helping their coconspirators attempt to travel to ISIL-controlled territory in order to join ISIL, and by plotting to use a pressure-cooker bomb to conduct a terrorist attack in the New York metropolitan area on behalf of ISIL. As part of their support for ISIL, Saleh and Mumuni, together with other coconspirators, assisted New Jersey resident Nader Saadeh’s planned travel to ISIL-controlled territory. Saleh personally accompanied Saadeh to John F. Kennedy International Airport where Saadeh departed on a flight for Jordan in the first leg of a planned trip to ISIL-controlled territory. Saadeh was subsequently apprehended and pleaded guilty in the United States District Court for the District of New Jersey to conspiring to provide material support to ISIL. Working with ISIL fighters located overseas, Saleh and Mumuni also coordinated their plot to conduct a terrorist attack in New York City. Saleh sought and received instructions from an ISIL attack facilitator to create a pressure-cooker bomb and discussed with the same ISIL attack facilitator potential targets for a terrorist attack in New York City.
As detailed in court documents, Saleh informed ISIL fighters that his coconspirators—five individuals located in New York and New Jersey—had confronted law enforcement officers who were surveilling them continuously. Saleh also sought and received religious authorization from an ISIL fighter permitting Mumuni to conduct a suicide “martyrdom” attack by using a pressure-cooker bomb against law enforcement officers who were following the coconspirators and thus preventing them from traveling to join ISIL.
On June 13, 2015, Saleh and another individual were arrested in Queens after they charged at a federal officer who was performing physical surveillance of Saleh. Saleh and the other individual were armed with knives. Following his arrest, Saleh admitted to agents that he had discussed with Mumuni physically attacking the law enforcement officers who were surveilling Mumuni. On June 17, 2015, during the execution of a search warrant at his residence in Staten Island, Mumuni was arrested after he repeatedly stabbed an FBI agent in the torso with a large kitchen knife. Fortunately, the knife did not penetrate the agent’s protective body armor, and he sustained only minor injuries. During a search of the vehicle used by Mumuni, investigators recovered a second large knife. In his post-arrest interview, Mumuni admitted that Saleh had informed him that an ISIL member had sanctioned Mumuni’s planned suicide attack on law enforcement and that Saleh and Mumuni had discussed using a pressure-cooker bomb to carry out the attack. Mumuni further admitted that he had kept the knife he used to attack the agent wrapped in a t-shirt in his bed, as well as the knife recovered from the vehicle, specifically for use in an anticipated confrontation with law enforcement officers.
“In the name of ISIL’s false and hateful ideology, these defendants attacked the law enforcement officers who work tirelessly to preserve the safety of our communities,” stated United States Attorney Capers. “We are especially grateful that an FBI Special Agent survived the violent attack perpetrated by Fareed Mumuni, who repeatedly stabbed the agent in the chest during the execution of a search warrant in a terrorism investigation. We and our partners on the Joint Terrorism Task Force remain ever-vigilant in our efforts to protect our citizens and allies by bringing terrorists to justice. These convictions will help incapacitate these defendants and send a strong message to those who would follow in their footsteps.” Mr. Capers thanked the West Midlands Police Counterterrorism Unit in the United Kingdom for their assistance with regard to foreign coconspirators.
“Munther Omar Saleh and Fareed Mumuni conspired to provide material support to ISIL and devised a plan to conduct an attack in New York. During his arrest, Mumuni stabbed an FBI agent numerous times, but thankfully the agent’s body armor protected him from the defendant’s attack and the defendant was safely apprehended by law enforcement,” said Acting Assistant Attorney General McCord. “Counterterrorism is the National Security Division’s highest priority. We will continue to seek justice against any individuals who conspire to provide material support to designated foreign terrorist organizations, and those who attempt to harm the brave law enforcement officials who risk their lives to protect us.”
“Today’s guilty pleas show just how close the threat of homegrown terrorism exists for New York City. From their respective homes in Queens and Staten Island, Saleh and Mumuni conspired to place a pressure cooker bomb in the New York metro area on behalf of ISIL. Mumuni even attacked an FBI agent when a court-authorized search was being conducted by the Joint Terrorism Task Force at his home in Staten Island. Threats like this are exactly why protecting the United States from a terrorist attack remains the FBI’s number one priority,” stated Assistant Director-in-Charge Sweeney.
“Saleh and Mumumi engaged in plotting attacks against New York City in the name of ISIL. They received instructions from senior ISIL leaders in Syria. They were committed to violence. When the arrests were made the defendants were armed. One attacked an FBI agent with a large knife. The detection and disruption of these plots is a credit to the partnership between the FBI-NYPD Joint Terrorism Task Force and the NYPD’s Intelligence Bureau,” said Police Commissioner O'Neill.
The government’s case is being prosecuted by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon, Douglas M. Pravda, and Ian C. Richardson are in charge of the prosecution, with assistance provided by Trial Attorneys Justin Sher and Robert Sander of the National Security Division’s Counterterrorism Section.
The Defendants:
MUNTHER OMAR SALEH
Age: 21
Queens, New York
FAREED MUMUNI
Age: 22
Staten Island, New York
E.D.N.Y. Docket No. 15-CR-393 (MKB)
Twin Cities Man Sentenced to 41 Months in Prison for Filing Fraudulent Tax ReturnsRead the Press Release
United States Attorney Andrew M. Luger announced the sentencing of JULIUS LEE BOSTON, 37, to 41 months in prison for filing false income tax returns seeking approximately $135,000. BOSTON pleaded guilty on August 31, 2016, before U.S. District Judge Patrick J. Schiltz.
“At the IRS, protecting taxpayer dollars is a serious matter. Detecting and catching fraudulent tax refund claims is an integral part of our mission,” said IRS Criminal Investigation Special Agent in Charge Shea Jones of the St. Paul Field Office. “The 41-month sentencing for Julius Boston serves as a strong warning to those who are considering filing false tax returns to obtain fraudulent refunds this filing season.”
According to the defendant’s guilty plea, between July 2011 and at least August 6, 2012, BOSTON filed almost 100 fraudulent income tax returns with the IRS. In order to file the fraudulent income tax returns, BOSTON convinced various people to provide him with their personal identifying information, including dates of birth and social security numbers, to use in filing the returns. He filed returns in the names of those individuals which reported false or inflated W-2 wage income, false withholding amounts, and other fraudulent information.
According to his guilty plea and documents filed in court, during the course of executing the scheme, BOSTON filed fraudulent claims for tax refunds seeking approximately $135,000. The IRS paid more than $64,000 in tax refunds, which BOSTON had mailed to his home or other addresses to which he had access. He later shared a portion of the proceeds of his fraud with the taxpayers who had provided him with their personal identifying information.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS, and the United States Postal Inspection Service.
Assistant U.S. Attorney Michelle E. Jones prosecuted the case.
Defendant Information:JULIUS LEE BOSTON, 37
Convicted: • Making false claims for tax refunds, two counts
Sentenced: • 41 months in prison
• Supervised release for a term of three years
• Restitution of $64,139Twin Cities Man Sentenced to 15 Years in Prison for Conspiring to Sell HeroinRead the Press Release
United States Attorney Andrew M. Luger announced the sentencing of JAIME EDWARD MCCLELLAN, a/k/a “Goldie Armani Callaway,” a/k/a, “Jaime Edward McClennan,” a/k/a, “Armando Blanco,” a/k/a, “Red,” 32, to 15 years in prison for conspiring to distribute heroin and related charges. MCCLELLAN pleaded guilty on October 17, 2016.
According to the defendant’s guilty plea and documents filed in court, between January 2014 and December 2015, MCCLELLAN conspired with others in Minnesota to distribute more than two pounds of heroin. In December 2015, MCCLELLAN sold heroin on at least four separate occasions to undercover law enforcement agents. When arrested on December 16, 2015, the defendant was in possession of 10mm semi-automatic pistol, which he was prohibited from owning because he had previously been convicted of a felony.
This case is the result of an investigation conducted by the Anoka-Hennepin Narcotics and Violent Crime Task Force, West Metro Drug Task Force, Anoka County Sheriff’s Office, Hennepin County Sheriff’s Office, Sherburne County Sheriff’s Office, Blaine Police Department, Coon Rapids Police Department, Elk River Police Department, Maple Grove Police Department, Medina Police Department, Mounds View Police Department, and U.S. Drug Enforcement Administration.
Assistant U.S. Attorney David Steinkamp prosecuted the case.
Defendant Information:JAIME EDWARD MCCLELLAN, a/k/a, “Goldie Armani Callaway,” a/k/a, “Jaime Edward McClennan,” a/k/a, “Armando Blanco,” a/k/a, “Red,” 32
Brooklyn Park, Minn.
Convicted: • Conspiring to distribute heroin, 1 count
• Possession of a firearm during and in relation to a drug trafficking crime, 1 countSentenced: • 15 years in prison
• Supervised release for a term of five yearsTexas Man Guilty of Interference with Flight AttendantRead the Press Release
HONOLULU – A federal jury today found William Clark Turner, 53, of Kemp, Texas, guilty of one count of interference with a flight attendant. The verdict followed a four-day jury trial. Sentencing is scheduled for June 5, 2017, before Senior District Judge Susan Oki Mollway.
Florence T. Nakakuni, United States Attorney, said that according to information produced in court, on March 14, 2016, Turner, a physician, was flying on American Airlines from Dallas-Fort Worth International Airport non-stop to Maui, when he interfered with the ability of the flight attendant to perform her duties. According to witness testimony, Turner was threatening and verbally abusive toward other passengers, diverting a flight attendant from her normal duties to manage the situation. When Turner’s actions were communicated to the pilot, he placed the cockpit in lockdown, locking the doors for the duration of the flight so that no one could enter or exit the cockpit.
Turner faces a maximum term of imprisonment of 20 years. The jury also found him not guilty of two counts of simple assault.
The investigation was led by the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorneys Margaret Nammar and Jill Otake.
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Swanville Man Sentenced to Time Served for Illegally Possessing FirearmsRead the Press Release
Contact: Jim Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that John T. Hines, 50, of Swanville, Maine was sentenced yesterday in U.S. District Court by Judge John A. Woodcock, Jr. to time served in prison (about 10 months) for unlawfully possessing firearms. He pled guilty to the charge on August 30, 2016.
According to court records, two Waldo County Sheriff’s deputies went to Hines’ residence to investigate a neighbor’s complaint of hearing gunfire coming from the property and found Hines in possession of a loaded .357 Ruger revolver, two rifles and a shotgun. Hines was prohibited under federal law from possessing any firearms because he had previously been convicted of domestic violence assault, a misdemeanor crime of domestic violence.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Waldo County Sheriff’s Office.Stamford Man Sentenced to More Than 5 Years in Federal Prison for Illegally Possessing FirearmRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CHARLES BARNES, 35, of Stamford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 63 months of imprisonment, followed by three years of supervised release, for illegally possessing a loaded firearm.
According to court documents and statements made in court, on December 29, 2015, Stamford Police stopped a car BARNES was driving. A subsequent search of the vehicle revealed a Berretta 9 millimeter pistol loaded with 12 rounds of ammunition, which was found in the glove box. The search also revealed 16 bags of marijuana packaged for sale.
Prior to December 2015, BARNES had sustained a felony conviction for possession of marijuana with intent to sell, and two felony convictions for second degree assault. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
BARNES has been detained since December 29, 2015. On November 17, 2016, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.
This matter was investigated by the Stamford Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Rochester Men Charged with Distributing OxycodoneRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
ROCHESTER, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Daniel Volonino, Jr., 29, Ronald Lockwood, 43, and Michael Ingham, 23, all of Rochester, NY, were arrested and charged by criminal complaint with conspiracy to distribute and distributing oxycodone, a Scheduled II controlled substance. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that according to the complaint, between October 2016 to January 2017, Lockwood was prescribed oxycodone by a health care provider. The prescription included 500 30 mg pills per month. Law enforcement officers received an anonymous letter stating that Lockwood was selling the oxycodone pills to “someone named Dan-last name unknown.”
As a result of this anonymous letter, the Drug Enforcement Administration and the New York State Attorney General’s Office began an investigation which included surveillance of Lockwood and the use of a GPS tracking device. A search warrant was also obtained for text messages on Lockwood’s cellular telephone.
During the investigation, defendant Volonino was identified as the buyer of the oxycodone pills. As a result, law enforcement officers began conducting surveillance on Volonino as well. During that surveillance, defendant Ingham was also identified as a member of the conspiracy.
The three defendants were arrested Thursday morning at which time 498 oxycodone pills were seized and a large amount of cash. In addition, a Cadillac Escalade driven by Volonino was also seized.
Volonino, Lockwood and Ingham made an initial appearance Thursday afternoon before U.S. Magistrate Judge Marian W. Payson and were released.
The complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge, James J. Hunt, New York Field Division, the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen, and the New York State Attorney General’s Office, Medicaid Fraud Control unit, under the direction of Eric Schneiderman.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Readout of Second Day Events for Attorney General SessionsRead the Press Release
Attorney General Jeff Sessions today met with department heads and their staff in the Civil Rights and Civil Divisions, discussing ongoing cases and how each division can strengthen relationships with the department's law enforcement and regulatory partners and steps the department can take to combat the rise in violent crime.
As part of his meeting with the Civil Division, he received a briefing on the status of litigation surrounding president’s executive order protecting our nation from foreign terrorists entering the United States.
Rapid City Man Pleads Guilty to Tax ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man has pled guilty to Failure to Collect and Pay Over Tax.
Kenneth E. Orrock, age 48, was charged on January 30, 2017. He appeared before U.S. Magistrate Judge Daneta Wollman on February 10, 2017, and pled guilty pursuant to a plea agreement reached with federal prosecutors.
The maximum penalty is 5 years 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.
charges stem from Orrock’s failure to collect and pay over federal employee tax withholdings related to his private security company, Black Hills Asset Protection Group, which does business under the trade name Black Hills Patrol. Orrock, the sole owner of Black Hills Asset Protection Group, is also a licensed attorney and served as the Bennett County State’s Attorney until January 2017.
This case was investigated by the Internal Revenue Service Criminal Investigation Division. Assistant U.S. Attorney Kirk W. Albertson is prosecuting the case.
Orrock was released pending sentencing. A sentencing date has not been set.
Plattsburgh Man Charged in Fatal Heroin OverdoseRead the Press Release
PLATTSBURGH, NEW YORK – Thomas A. Burnell, age 34, of Plattsburgh, New York, was charged today with distributing heroin resulting in another person’s death.
The announcement was made by United States Attorney Richard S. Hartunian, Plattsburgh Acting Chief of Police Michael Branch, and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA).
Burnell is detained pending a detention hearing before Magistrate Judge Gary L. Favro on February 14, 2017.
Burnell has been incarcerated since January 18, 2016, on state charges arising out of the same allegations charged in the federal complaint. According to the criminal complaint, on January 16, 2016, Burnell sold heroin to a man identified as “J.G.” who died later that night. The cause of death was an opiate overdose.
The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.
If convicted of the offense of distributing heroin resulting in death, Burnell faces at least 20 years and up to life in prison. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the Plattsburgh Police Department and the DEA, and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.
Platte City Man Sentenced for Child Porn after Attempting to Meet Two Minors for SexRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Platte City, Mo., man was sentenced in federal court today for distributing child pornography following an undercover operation in which he attempted to meet two minor girls for sex.
Daniel C. Irwin, 39, of Platte City, was sentenced by U.S. District Judge Roseann Ketchmark to 13 years and nine months in federal prison without parole. The court also sentenced Irwin to 20 years of supervised release following incarceration.
On July 7, 2016, Irwin pleaded guilty to distributing a video of child pornography over the Internet. Irwin was an assistant vice president of accounting at a Kansas City, Mo., corporation at the time of the offense.
Irwin admitted that he sent the child pornography video to an undercover detective with the Kansas City, Mo., Police Department. Irwin met with the undercover detective and attempted to exchange incest pornography for the opportunity to have sex with the undercover detective’s two minor daughters (ages 12 and 16). Irwin sent additional videos of child pornography to the undercover detective on Aug. 4, 2014.
This case was prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."