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9 February 2017
Isleta Pueblo Man Sentenced to Prison for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Felipe Lucero, 25, an enrolled member of the Isleta Pueblo who resides in Los Lunas, N.M., was sentenced today in federal court in Albuquerque, N.M., to 33 months in prison followed by three years of supervised release for his conviction on an assault charge.
Lucero was arrested on May 12, 2016, on an indictment charging him with assault with a dangerous weapon, a vehicle, and assault resulting in serious bodily injury. According to the indictment, Lucero committed the crimes on Dec. 27, 2015, on the Isleta Pueblo in Valencia County, N.M.
On Nov. 14, 2016, Lucero pled guilty to assault with a dangerous weapon and admitted that on Dec. 27, 2015, he injured the victim by intentionally driving a motor vehicle towards the victim and hitting him with an open car door.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and the Pueblo of Isleta Tribal Police Department. Assistant U.S. Attorney Joseph Spindle prosecuted the case.
Hayward Resident Sentenced to over 17 Years’ Imprisonment for Trafficking CocaineRead the Press Release
SAN FRANCISCO – Leshawn Lawson was sentenced to 214 months in prison for possession with intent to distribute cocaine, announced United States Attorney Brian J. Stretch and Drug Enforcement Administration Special Agent in Charge John J. Martin. The sentenced was handed down yesterday by the Honorable Phyllis J. Hamilton, United States District Judge, who found Lawson guilty of the drug charge after a bench trial in July of last year.
According to court papers, Lawson, 41, of Hayward, Calif., acknowledged he was driving a white Bentley in Livermore, Calif., when he was pulled over by a Livermore police officer. The officer seized more than $10,000 in cash from Lawson and found packaging in the trunk of the car for ten kilograms of cocaine. Lawson admitted that at the time he was pulled over, he knew a controlled substance was in the trunk. Testing revealed that there were actually 9,957 grams of 87.6% pure cocaine in the trunk of the Bentley. A federal grand jury indicted Lawson on February 19, 2015, charging him with one count of possession with intent to distribute cocaine, in violation of 21 U.S.C. § 841(a)(1). Judge Hamilton found Lawson guilty of the charge after a bench trial on July 6, 2016.
In addition to the prison term, Judge Hamilton sentenced Lawson to a five-year period of supervised release. Lawson has been in custody since his arrest and will begin serving his sentence immediately.
Assistant U.S. Attorneys Sheila Armbrust and Aaron Wegner are prosecuting the case with the assistance of Michelle Alter and Yanira Osorio. The prosecution is the result of an investigation by the DEA and the Livermore Police Department.
Grand Jury Returns Indictment of Co-Conspirator in Scheme to Defraud Herman Miller IncRead the Press Release
Kevin Grimm of Coopersville Charged with Conspiracy and Money Laundering
GRAND RAPIDS, MICHIGAN — Acting U.S. Attorney Andrew Birge announced today that a federal grand jury handed down a two-count indictment against Coopersville, Michigan, resident Kevin John Grimm alleging that he conspired with Jerry Akers to defraud furniture manufacturer Herman Miller Inc. in a vendor invoicing scheme. Grimm also was charged with laundering proceeds of the fraud by making a $155,000 payment to a Florida yacht dealer toward the purchase of a 49-foot sailboat in 2015.
The indictment alleges that Grimm and Akers conspired with each other to devise and execute a scheme to defraud Herman Miller involving Grimm’s creation of a company, KJ Gas Transportation, LLC, to submit false and fraudulent invoices for payment. The indictment further alleges that Grimm’s company never provided any natural gas ordering or transportation services to Herman Miller as falsely represented in invoices that Grimm e-mailed to Herman Miller personnel. The indictment alleges that, between June 2010 and July 2015, the fraud scheme generated approximately $1,772,726 in payments to Grimm’s company, KJ Gas Transportation, LLC.
Akers pled guilty in December 2016 to a federal charge of conspiracy to commit mail fraud and wire fraud against Herman Miller for his role in the scheme. When Akers was charged, his alleged co-conspirator was known to the U.S. Attorney’s office but not identified in publicly-filed court documents. Akers has admitted to conspiring with Grimm to fraudulently invoice Herman Miller for natural gas transportation services never provided by Grimm’s company. United States District Judge Paul L. Maloney will sentence Akers on May 1, 2017, in Kalamazoo.
This matter is being investigated by the Grand Rapids office of the Federal Bureau of Investigation.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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Four Defendants Sentenced to Prison in Missoula Carjacking CaseRead the Press Release
MISSOULA - The United States Attorney’s Office announced today the sentencing results of four individuals for conspiracy to commit robbery, carjacking, kidnapping and other crimes. On or around May 27, 2016, in Missoula County, Thomas Earl Dempsey, Nick West, Carissa Lynn Kopp, and Hannah Nichole Parker robbed Deano’s General Store in Missoula. Kopp and Parker drove the “getaway” car, while Demspey and West entered the store and demanded money at gunpoint. They robbed Deano’s of $3,200. Meanwhile, Kopp and Parker had driven away and left Dempsey and West stranded. Dempsey and West hijacked the car of a family in the parking lot, as a member of that family was describing the heist to 911 Dispatch.
With the kidnapped family still in the car, Dempsey and West led the Missoula County Sheriff’s Office and Missoula Police Department on a high-speed chase. There were five victims in the car with the kidnappers, including a mother, father, grandmother, and two children. During the chase, Dempsey fired at the police. Eventually Dempsey and West stopped the car and ran. They were arrested a short time later.
Today, Dempsey was sentenced to 312 months in prison followed by 5 years supervised release for his plea of guilty to conspiracy to commit robbery affecting commerce, in violation of 18 U.S.C. § 1951(a), carjacking, in violation of 18 U.S.C. § 2119, kidnapping in violation of 18 U.S.C. § 1201(a)(1), and possessing and discharging of a firearm in furtherance of a crime of violence in violation of 18 U.S.C. § 924(c)(1)(A)(iii).
West was sentenced to 180 months in prison followed by 5 years supervised release for his plea of guilty to the crimes of conspiracy to commit robbery affecting commerce, in violation of 18 U.S.C. § 1951(a), carjacking, in violation of 18 U.S.C. § 2119, and possessing and brandishing of a firearm in furtherance of a crime of violence in violation of 18 U.S.C. § 924(c)(1)(A)(ii).
Kopp was sentenced to 108 months in prison followed by 3 years supervised release for the crime of conspiracy to commit robbery affecting commerce, in violation of 18 U.S.C. § 1951(a).
Parker was sentenced to 60 months in prison followed by 3 years supervised release for the crime of conspiracy to commit robbery affecting commerce, in violation of 18 U.S.C. § 1951(a).
Chief Judge Dana L. Christensen handed down the sentences in Missoula. Additionally, the defendants were jointly ordered to pay $14,891.98 in restitution.
United States Attorney Michael W. Cotter stated, “I want to thank all members of the task force, the federal agents and local law enforcement for their quick thinking and extraordinary efforts in apprehending these dangerous criminals, and ensuring that no further injuries occurred. The United States Attorney’s Office looks forward to a continued partnership with all of the state and local law enforcement agencies that support and participate on the Montana Regional violent Crime Task Force.”
FBI Special Agent Monte Shaide added, “This case is a result of the diligence of investigators and demonstrates the effectiveness of the Montana Regional Violent Crime Task Force. The FBI takes pride in our valuable partnerships with local law enforcement, who all work tirelessly to maintain the safety of our communities.”
The case was investigated by the Missoula County Sheriff’s Office, the Missoula City Police Department, and the FBI’s Montana Regional Violent Crime Task Force which consists of the agencies previously mentioned as well as the Federal Bureau of Investigation, Montana Division of Criminal Investigation, Lewis and Clark County Sheriff’s Office, and Montana Department of Corrections Probation and Parole, and prosecuted by Assistant United States Attorney Tara Elliott.
Former Tama Police Chief Pleads Guilty to Stealing Gun and Lying to Federal AgentRead the Press Release
The former police chief of the Tama Police Department, who stole and pawned a Tama police service weapon and then lied to a FBI Special Agent who was investigating that theft and other missing property, pled guilty today in federal court in Cedar Rapids.
Jeffrey Filloon, age 47, from Toledo, Iowa, was convicted of one count of possessing, selling, and disposing of a stolen firearm and one count of making false statements to a FBI Special Agent.
In a plea agreement, Filloon admitted that, while serving as the chief of the Tama Police Department, he took and sold property, including three guns and four vehicles that were in police impound, from the Tama Police Department for his own personal benefit. Filloon further admitted that he lied to a FBI Special Agent who was conducting an investigation into the missing property by claiming he had bought one of the impounded vehicles when, in fact, Filloon had not bought it from the individual he claimed sold it to him.
Sentencing before United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Filloon remains free on conditions of release previously set pending sentencing. Filloon faces a possible maximum sentence of 15 years’ imprisonment, a $500,000 fine, $200 in special assessments, and six years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Iowa Division of Criminal Investigation and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 16-CR-95.
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Former Jail Administrator Pleads Guilty to Civil Rights Violation for Depriving Inmate of Medical CareRead the Press Release
Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division and U.S. Attorney Mark A. Yancey of the Western District of Oklahoma jointly announced that a former McClain County, Oklahoma, Jail Administrator, Wayne Barnes, pleaded guilty today in federal court to a civil rights violation that resulted in the death of an inmate in his custody.
On October 4, 2016, a federal grand jury in the Western District of Oklahoma returned a one-count indictment charging Barnes with a civil rights violation arising out of the death of a detainee, K.W., who was housed at the Jail in June 2013. The indictment alleged that K.W. suffered from diabetes that he needed insulin to control, that K.W. did not have insulin at the Jail from the time of his arrival on June 16, 2013, and that K.W. was not evaluated or treated by a doctor, or taken to a hospital for evaluation or treatment until the afternoon of June 19, 2013. On that day, according to the indictment, Barnes observed K.W. lying on the floor of his cell, unresponsive. Only then did Barnes direct a corrections officer to call emergency medical services, who arrived to find K.W.’s pupils fixed and dilated. K.W. died on June 21, 2013, never having regained consciousness. The indictment alleged that Barnes knew that K.W. had a serious medical condition and willfully failed to provide him with necessary medical care, and that his failure to do so resulted in K.W.’s death.
At the change of plea hearing held today before U.S. District Judge Stephen P. Friot, Barnes admitted that he was made aware between June 16, 2013 and June 19, 2013 that K.W. had been booked into the McClain County Jail, and that K. W. represented that he was a Type-1 diabetic who required insulin. Barnes further admitted that Barnes failed to obtain medical care for K.W. and that, in so doing, he willfully denied K.W.’s Constitutional right to medical care. Barnes also admitted that his failure to obtain the required medical care resulted in K.W.’s death.
“Every person in this country, including inmates in our jails, is protected by the U.S. Constitution, which requires jailers to provide necessary medical care to all persons in their custody,” said Acting Assistant Attorney General Wheeler. “The Civil Rights Division will hold corrections officers like this defendant accountable for failing to uphold their oaths to enforce and defend our Constitution.”
“Inmates deserve and the law requires that adequate medical care be provided by penal institutions,” said U.S. Attorney Yancey. “Denying needed medical treatment to cut costs is inhuman and unconstitutional.”
At sentencing, Barnes faces a maximum sentence of life in prison. Sentencing for Barnes will be set by the court on a future date.
This case was investigated by the Oklahoma City Division of the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Julia Barry of the Western District of Oklahoma and Deputy Chief Kristy Parker of the Criminal Section of the Civil Rights Division of the Department of Justice.
Former Harris County Deputy Arrested on Federal Child Pornography ChargesRead the Press Release
HOUSTON, Texas – A 30-year-old man who was residing in Spring has been taken into federal custody on charges of production of child pornography, announced U.S. Attorney Kenneth Magidson. Andrew Craig Sustaita 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 production of child pornography. He was taken into custody today and is expected to make his initial appearance before U.S. Magistrate Judge Dena Hanovice Palermo tomorrow at 10:00 a.m.
If convicted, he faces a mandatory minimum sentence of 15 and up to 30 years for producing child pornography. The charge is 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 Fort Eustis Soldier Sentenced to 30 Years for Child PornographyRead the Press Release
NEWPORT NEWS, Va. – Daniel Joseph Salgat, 39, of Bay City, Michigan, a former Army soldier stationed at Fort Eustis, was sentenced today to 30 years in prison for production of child pornography. Salgat was also sentenced to a lifetime of supervised release and ordered to pay $1,202.58 to a victim of his crimes.
Salgat pleaded guilty on July 14, 2016. According to court documents, Salgat portrayed himself on-line as a young female in order to obtain images and videos of other young females. In several cases, Slagat blackmailed and threatened the children into producing images and videos. Salgat was ultimately identified and arrested by law enforcement after an investigation into his attempt to persuade a 10-year-old child he met online to come out of her house and perform oral sex on him.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney Lisa R. McKeel prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Justice Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:15-cr-95.
Former Altus Bank President Sentenced to Four Years in Federal Prison for Bank Fraud and Ordered to Pay $10 Million in Restitution to FDICRead the Press Release
Oklahoma City, Oklahoma –PAUL HAROLD DOUGHTY, 67, of Edmond, Oklahoma, the former president and chairman of First State Bank of Altus ("FSB"), was sentenced today to 48 months in federal prison after a jury convicted him in July of 2016 of bank fraud, conspiracy to commit bank fraud, misapplication of bank funds, making a false bank entry, and unauthorized issuance of a bank loan in connection with FSB and various loan schemes, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma. At today’s sentencing, United States District Judge David L. Russell also ordered Doughty to pay $10,120,166.58 in restitution to the Federal Deposit Insurance Corporation ("FDIC"). On December 2, 2016, FRED DON ANDERSON, 67, of Eagle Point, Oregon, was sentenced to 18 months in federal prison after pleading guilty to conspiring with Doughty to commit bank fraud. Anderson partnered with Doughty in several businesses headquartered in Altus. In July 2009, state banking regulators closed FSB due to the bank’s loan losses, and the FDIC was appointed as the bank’s receiver.
In April 2015, a federal grand jury charged Doughty and Anderson with fraud related to three alleged loan schemes: (1) a series of FSB loans to finance a real estate development in Routt County, Colorado; (2) a series of "senior life settlement loans" from FSB to support an Altus aerospace company; and (3) a $2 million unauthorized loan from FSB to a company under Doughty and Anderson’s control.
On July 1, 2016, after hearing seven days of trial evidence, a federal jury returned a guilty verdict against Doughty on ten counts relating to the three loan schemes. The jury acquitted Doughty on three charges. The jury heard that in 2006 and 2007, Doughty and Anderson recruited buyers for 19 Colorado real estate lots priced at approximately $700,000 each. Doughty approved and issued 14 lot loans to buyers, totaling more than $10,000,000 in loan proceeds for the seller, Mountain Adventure Property Investments, LLC ("MAPI"). MAPI was a Colorado company that Anderson had an indirect ownership interest in and where he served as president and manager. Evidence at trial showed that each loan exceeded Doughty’s individual lending authority at FSB, and most of the loans were issued without approval of FSB’s loan committee, including a $580,000 loan to Anderson’s personal company. The jury heard that Doughty and Anderson presented lots to borrowers as “zero money down” investments, and that the down payments for the purchases were often advanced or refunded to the buyers by Anderson on behalf of MAPI. Doughty and Anderson also assured the buyers that MAPI would make all payments on the loans to the bank. The jury heard that on the few occasions when Doughty presented a Colorado loan to FSB’s loan committee, he misrepresented the source and amount of borrowers’ down payments and the borrowers’ responsibility for making payment on the loans. In connection with these Colorado lot loans, the jury convicted Doughty of one count of bank fraud conspiracy, four counts of bank fraud relating to separate lot loans, and one count of unauthorized issuance of a loan to Anderson’s personal company.
Trial evidence also showed that Doughty funded five so-called "senior life settlement" loans through FSB in 2008. Each loan was $2.5 million, and one of the loans went to Anderson’s personal company. Doughty and Anderson recruited borrowers to take out these "self-paying" loans to provide money for investments in Altus-based Quartz Mountain Aerospace, Inc. ("QMA"). Evidence at trial showed that a portion of the loan proceeds was invested in QMA, and another portion would pay the loan’s interest. The remaining proceeds on the loans would buy and maintain third-party life insurance policies, where the death benefits on the third parties were intended to repay the loan’s principal. The jury heard that each loan exceeded Doughty’s lending authority, and that he issued at least $10,000,000 in senior life settlement loans without FSB’s loan committee or board approval. With each loan, Doughty and Anderson directed $125,000.00 in "service fees" to Altus Ventures, a company under their control. The jury heard evidence that at the time the loans were issued, the fees to Altus Ventures were not disclosed to FSB or to the borrowers taking out those loans. In connection with the senior life settlement loans, the jury convicted Doughty of one count of misapplication of bank funds and one count of a false entry in bank records related to the concealment of the fees to Altus Ventures.
Finally, the jury heard evidence that in January 2008, Doughty arranged a $2 million loan from FSB to Ethanol Products Group, LLC (“EPG”), a startup company in which both Anderson and Doughty had ownership interests. Evidence showed that Doughty advanced the $2 million from FSB, above his individual lending authority, without approval by FSB’s loan committee or board. Soon before issuing the loan, Doughty e-mailed Anderson his "cash strategy" for two other companies they controlled; the "strategy" showed all the EPG loan proceeds would be directed to companies controlled by Anderson and Doughty, ultimately diverting $100,000.00 in "officer bonuses" to Anderson and Doughty. The jury found Doughty guilty of one count of unauthorized issuance of a loan and one count of misapplication of bank funds related to the EPG loan.
At today’s sentencing, United States District Judge Russell sentenced Doughty to 48 months in federal prison, followed by three years of supervised release. Judge Russell also ordered Doughty to pay $10,120,166.58 in restitution to the FDIC. Doughty must report to federal prison on Monday, April 3, 2017.
On December 2, 2016, Judge Russell sentenced Anderson to 18 months in federal prison, followed by three years of supervised release. Anderson was also ordered to pay $3,250,409.12 in restitution to the FDIC. On April 14, 2016, Anderson pleaded guilty to a one-count Information charging him with conspiring with Doughty to commit bank fraud. As part of the plea agreement, the government agreed to dismiss at sentencing the charges against him from the indictment. Anderson testified as a witness for the government at Doughty’s trial.
These convictions are the result of an investigation conducted by the Federal Bureau of Investigation and the Federal Deposit Insurance Corporation - Office of Inspector General. The case was prosecuted by Assistant U.S. Attorneys Chris M. Stephens and K. McKenzie Anderson.
Florence Woman Sentenced for Defrauding Farm Assistance ProgramRead the Press Release
Contact Person: Winston Holliday, Jr. (803) 929-3000
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Roselyn Goodrum, age 47, of Florence, has been sentenced to 27 months imprisonment after pleading guilty to Conspiracy, a violation of 18 U.S.C. § 371, regarding the administration of farm-related disaster benefits. She also was ordered to pay over $146,000 in restitution to the federal government. United States District Judge R. Bryan Harwell of Florence presided over the hearing. Goodrum pled guilty September 1, 2016.
Evidence presented to the court established that Roselyn Goodrum was in charge of the Farm Service Agency’s (FSA) Florence office from 2006 through 2014. In February 2014, Ice Storm Pax caused extensive damage to farms in the Pee Dee. As a result, farmers could make claims to the FSA for financial assistance to clean up their land. Goodrum filed multiple false applications in the names of family members who were not entitled to these benefits, enriching herself and others. After FSA employees discovered the theft and suspended her, Goodrum surreptitiously re-entered the office and shredded incriminating documents. Overall, she illegally obtained $146,401 that she was not entitled to in fraudulent benefits.
The case was investigated by agents of the United States Department of Agriculture and prosecuted by Assistant United States Attorney Winston Holliday.
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Five Eagle Butte Residents Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that five Eagle Butte, South Dakota, residents convicted of Conspiracy to Distribute a Controlled Substance have now been sentenced by U.S. District Judge Roberto A. Lange.
On April 13, 2016, all five defendants were indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance. All five defendants pled guilty to that same charge.
Kristina Rae Lofton, a/k/a Kristina Rae Moran, age 37, pled guilty on November 8, 2016, and was sentenced on January 30, 2017, to 132 months in custody, to be followed by 5 years of supervised release.
Robert Earlwin Lofton, Jr., a/k/a Robert Erwin Lofton, Jr., a/k/a Blue Lofton, age 35, pled guilty on September 27, 2016, and was sentenced on December 19, 2016, to 78 months in custody, to be followed by 5 years of supervised release.
Tyler James Peterson, age 36, pled guilty on November 7, 2016, and was sentenced on January 30, 2017, to 70 months in custody, to be followed by 3 years of supervised release.
Stephanie Fawn Lofton, a/k/a Stephanie Fawn Clark, age 39, pled guilty on November 14, 2016, and was sentenced on January 31, 2017, to 68 months in custody, to be followed by 4 years of supervised release.
Ashley Marie Peterson, age 34, pled guilty on October 24, 2016, and was sentenced on January 23, 2017, to 38 months in custody, to be followed by 2 years of supervised release.
All of the defendants were also ordered to pay a $1,000 fine, a special assessment to the Federal Crime Victims Fund in the amount of $100, and the forfeiture of United States currency, firearms, and ammunition seized by law enforcement.
March of 2014 and July of 2016, Kristina, Robert and Stephanie Lofton, and Tyler and Ashley Peterson, knowingly and intentionally conspired and agreed with each other, and with others, to distribute methamphetamine, a Schedule II Controlled Substance, in and around the Cheyenne River Sioux Tribe Reservation and elsewhere in South Dakota. Beginning in March of 2014, the defendants received distributable quantities of methamphetamine from individuals who knew that they intended to engage in further distribution of the methamphetamine. The defendants further distributed the methamphetamine to others within South Dakota.
Kristina Lofton admitted to being the organizer or leader in the conspiracy and distributed methamphetamine to numerous participants. The Court found that Kristina Lofton was responsible for distributing between 1.5 and 5 kilograms of methamphetamine. Robert Lofton was arrested with firearms, ammunition, and U.S. currency, which were seized by law enforcement. The Court found that Robert Lofton, Stephanie Lofton, Tyler Peterson, and Ashley Peterson distributed between 350 grams and 500 grams of methamphetamine.
This case was investigated by the Federal Bureau of Investigation, the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
The defendants were immediately turned over to the custody of the U.S. Marshals Service following sentencing.
Federal Grand Jury Indicts Five in Connection with International Scheme to Fraudulently Import and Sell Filipino-Made Jewelry as Native American-MadeRead the Press Release
ALBUQUERQUE – A federal grand jury sitting in Albuquerque, N.M., returned an indictment on Tuesday charging five individuals with violating the Indian Arts and Crafts Act (IACA) by conspiring to import and fraudulently sell Filipino-made jewelry as Native American-made. This is the second indictment filed as the result of a continuing federal investigation that began in Jan. 2015 and is led by the U.S. Fish and Wildlife Service, with the assistance of the FBI and Homeland Security Investigations (HSI). The investigation targeted an international scheme to violate the IACA and has included the execution of eight search and seizure warrants and investigative activity in New Mexico, California, Alaska, Kentucky, Nevada and the Philippines.
The new indictment, which was publicly posted on the federal court’s website yesterday evening, was announced by U.S. Attorney Damon P. Martinez, Nicholas E. Chavez, Special Agent in Charge for the U.S. Fish and Wildlife Service, Office of Law Enforcement for the Southwest Region, Terry Wade, Special Agent in Charge of the Albuquerque Division of the FBI, and Waldemar Rodriguez, Special Agent in Charge of HSI in El Paso, Tex.
“The indictments filed as a result of this continuing investigation are not only about enforcing the law, but also about protecting and preserving the cultural heritage of Native Americans,” said U.S. Attorney Damon P. Martinez. “The cultural heritage of American Indians is a precious national resource and it is critically important that we provide the proper respect to those whose creations are seen by some as simple retail commodities to be exploited for profit. Eliminating the flow of counterfeit Native American art and craftwork provides a level playing field for the highly talented, dedicated, and hard-working producers of genuine Native American art.”
“The indictment we announce today is the result of the largest investigation ever into fraudulent Native American jewelry sales under the IACA,” said U.S. Fish and Wildlife Service Special Agent in Charge Nicholas E. Chavez. “We hope the charges filed as a result of this continuing investigation will deter this criminal activity, and we thank the law enforcement agencies that supported us and partnered with us during this investigation. Through these investigations, the U.S. Fish and Wildlife Service endeavors to protect and preserve the authenticity of jewelry produced by our country’s Native American artisans as it fulfills the commitment of the Secretary of the Department of the Interior to enforce this important law.”
FBI Special Agent in Charge Terry Wade said, “The FBI is proud to have worked with the U.S. Fish and Wildlife Service and the other agencies involved in this important investigation. Protecting the rich cultural heritage of Native Americans and other groups in this country is not just a law enforcement responsibility, it is the right thing to do.”
“HSI’s role in this investigation is another example of our commitment to protecting the intellectual property and cultural patrimony of Native Americans,” said HSI Special Agent in Charge Waldemar Rodriguez. “We will continue to support and assist our federal, tribal and local partners through the use of our cross border authority.”
The three-count indictment charges the following four defendants with conspiring to violate the IACA and the federal fraudulent importation, money laundering, wire fraud and mail fraud laws:
Imad Aysheh, 41, formerly of Gallup, N.M., who is identified as the owner and operator of Imad’s Jewelry, a jewelry manufacturing business in the Philippines;
Iyad Aysheh, 45, of Lodi, Calif., who is identified as the CEO and agent for IJ Wholesale, Inc., a California corporation that imports jewelry into the United States;
Nedal Aysheh, 37, formerly of Gallup, N.M., and
Raed Aysheh, 39, of American Canyon, Calif., who is identified as the owner and operator of Golden Bear & Legacy, LLC, a retail store in Calistoga, Calif., that specializes in Native American-style jewelry.
According to the indictment, from March 2014 through Oct. 2015, these four defendants conspired, to violate the IACA by displaying and offering for sale jewelry that was manufactured in the Philippines in a manner that suggested that it was Indian produced and the product of American Indian tribes. The indictment also alleges that these four defendants conspired to defraud the United States and its people of money by using the U.S. mail and wire communications to promote the importation and sale of the Filipino-made jewelry as Indian-made, and to launder the proceeds of those unlawful sales.
The indictment alleges that Imad Aysheh manufactured Indian-style jewelry using Filipino labor for import into the United States, and that Nedal Aysheh provided source material and trained the Filipino laborers who manufactured the jewelry. It further alleges that Iyad Aysheh imported the Filipino-made jewelry into the United States; Iyad Aysheh and Raed Aysheh accepted shipments of the Filipino-made jewelry in the United States; and that Iyad Aysheh, Nedal Aysheh and Raed Aysheh distributed the Filipino-made jewelry through jewelry stores purportedly specializing in the sale of Indian-made jewelry.
The indictment identifies 40 specific acts allegedly taken by the defendants in furtherance of the conspiracy, including several sales of the Filipino-made jewelry to individuals who were told that they were purchasing Indian-made jewelry in jewelry stores in Albuquerque and Santa Fe, N.M. It also identifies more than 50 financial transactions allegedly conducted by the defendants between April 2014 and Oct. 2015, involving more than $300,000, in amounts ranging from $1,100 to $60,000, in furtherance of the conspiracy.
Iyad Aysheh separately is charged with violating the IACA in Santa Fe County in the summer of 2015, by selling jewelry valued at more than $1,000 that was represented as Indian-made while knowing that the jewelry was not an Indian product.
A fifth defendant, Nael Ali, 53, of Albuquerque, who is identified as the owner and operator of Gallery 8 and Galleria Azul, two arts and crafts retail stores in Albuquerque’s Old Town, also is charged with violating the IACA in Bernalillo County in Oct. 2015. Ali is not charged in the conspiracy count.
The indictment includes forfeiture provisions which seek to forfeit to the United States any proceeds used in or traceable to the defendants’ alleged criminal activities. The indictment also seeks forfeiture of $20,109 in cash, $6,723.04 in a bank account, and more than 1,000 pieces of Indian-style jewelry seized pursuant to search and seizure warrants during the investigation.
The five defendants will be served with summonses requiring them to appear in federal court in Albuquerque to be arraigned on the indictment. If convicted of the charges against them, the defendants each face a statutory maximum penalty of five years in prison and a $250,000.00 fine. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
Nael Ali previously was charged in the first indictment filed as a result of this continuing investigation. That first indictment, filed in Oct. 2015, charged Ali and Mohammad Abed Manasra, also of Albuquerque, with conspiracy to violate the IACA and three substantive violations of the Act. Ali and Manasra have entered not guilty pleas to the charges against them and are presumed innocent unless convicted. Both are awaiting trial, which is scheduled for April 24, 2017.
The case was investigated by the Office of Law Enforcement for the Southwest Region of the U.S. Fish and Wildlife Service with assistance from the FBI and HSI. U.S. Marshals Service, DEA and New Mexico Department of Game and Fish assisted with investigation in New Mexico. The U.S. Fish and Wildlife Service’s Office of Law Enforcement for Region Eight and California Department of Fish and Wildlife provided support in Calistoga, Calif., and HSI provided support in La Habra, Calif. The U.S. Fish and Wildlife Service Attaché for Southeast Asia and the Philippine National Bureau of Investigations provided support in Cebu City, Philippines. Assistant U.S. Attorneys Kristopher N. Houghton and Sean J. Sullivan are prosecuting the case.
The IACA prohibits the offer or display for sale, or the sale of any good in a manner that falsely suggests that it is Indian produced, an Indian product, or the product of a particular Indian and Indian tribe. The law is designed to prevent products from being marketed as “Indian made,” when the products are not, in fact, made by Indians. It covers all Indian and Indian-style traditional and contemporary arts and crafts produced after 1935, and broadly applies to the marketing of arts and crafts by any person in the United States. IACA provides critical economic benefits for Native American cultural development by recognizing that forgery and fraudulent Indian arts and crafts diminish the livelihood of Native American artists and craftspeople by lowering both market prices and standards.
Aysheh IndictmentFederal Correctional Officer Indicted and Arrested for Introducing Contraband into the Metropolitan Detention Center in Guaynabo, PRRead the Press Release
San Juan, Puerto Rico – Carlos Ernesto Ochoa-Rocafort, Correctional Officer at the Metropolitan Detention Center (MDC) in Guaynabo, PR, was indicted and arrested for providing contraband in prison, announced U.S. Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. The FBI is in charge of the investigation in collaboration with the Department of Justice – Office of the Inspector General (DOJ-OIG) and ATF.
Ochoa-Rocafort is facing three counts of providing contraband in prison, one count of bribery of public officials and two counts of sale of ammunition to a prohibited person. The indictment also charges Ochoa-Rocafort along with co-defendant José Guzmán-Marrero for attempting to aid and abet possession with intent to distribute cocaine and possession of firearms in furtherance of a drug trafficking crime.
According to the indictment, in or about November 10 and 11 and December 9, 2016, Ochoa-Rocafort knowingly and intentionally provided and attempted to provide four cellular telephones to an inmate housed at MDC. In exchange he demanded and agreed to receive $2,000. On or about December 2016, Ochoa-Rocafort sold a firearm and ammunition to felons; and participated as an armed escort for what he believed was a multi-kilo transportation of narcotics.
“The defendant was supposed to provide supervision of inmates and enforce the rules and regulations governing MDC and the inmates’ conduct. Instead, he behaved like one of them, and violated federal law,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez. “This case should send a clear message to those who attempt to smuggle illegal contraband into a federal facility. We will not tolerate these type of activities and will prosecute these offenders to the full extent of the law.”
This case was investigated by the FBI with the collaboration of the Department of Justice-Office of the Inspector General and ATF and prosecuted by Assistant United States Attorney Seth Erbe.
The maximum penalties for these offenses are: one year for providing cellular phones to inmates, 15 years for bribery, 10 years for selling ammunition and gun to felon, a mandatory minimum of 10 years on the drug charge, and a mandatory consecutive five-year sentence for carrying firearms in furtherance of a drug transaction. An indictment is a formal accusation of criminal conduct, not evidence. Defendants are presumed innocent unless and until convicted through due process of law.
El Paso Behavioral Health Facility Pays $860,000 to Resolve False Claims Act Allegations Under Civil Settlement with United StatesRead the Press Release
Today, University Behavioral Health of El Paso, LLC (“UBH”) paid $860,000 under a civil settlement with the Department of Justice to resolve allegations under the False Claims Act that the hospital paid unlawful remuneration under the Anti-Kickback Act and violated the Stark Law when it improperly paid a physician who made referrals to the hospital pursuant to a personal services agreement.
That announcement was made today by United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division.
The allegations resolved in the settlement include the submission of false claims to Medicare that were tainted by the payment of kickbacks to a physician under the guise of a professional services agreement, in return for the physician’s referral of patients to UBH. Specifically, the physician received payments above fair market value, or for services not rendered, and made improper referrals to the hospital for Medicare-reimbursed services.
Federal law, including the Anti-Kickback Act and the Stark Law, seeks to ensure that services reimbursable by federal healthcare programs are based on the best interests of patients rather than the personal financial interests of referring physicians.
The settlement covers certain claims submitted to Medicare by UBH for the period from February 1, 2010, through December 31, 2013. The professional services agreement at issue was entered into by a previous owner of UBH. In October 2012, University Health Services, Inc. (“UHS”) acquired UBH, which operated the hospital known as University Behavioral Health, now known as the El Paso Behavioral Health System. UHS terminated the professional services agreement effective December 31, 2013.
The settlement announced today was the result of an investigation by the U.S. Attorney’s Office for the Western District of Texas and the Federal Bureau of Investigation with assistance from the U.S. Department of Health and Human Services, Office of Inspector General. Assistant United States Attorney Susan Strawn handled the investigation for the United States Attorney’s Office.
Correctional Officer at Federal Prison in Victorville Agrees to Plead Guilty to Taking Bribe to Smuggle Contraband to PrisonerRead the Press Release
RIVERSIDE, California – A federal correctional officer who worked at the United States Penitentiary in Victorville has agreed to plead guilty to a federal bribery charge for taking a $1,000 bribe to smuggle contraband to a prisoner inside the facility.
Ignacio Adrian Sobers Jr., 31, of San Bernardino, entered into a plea agreement that was filed today in United States District Court. Sobers agreed to plead guilty to one count of acceptance of a bribe by a public official.
Sobers was arrested by federal authorities on January 21 after receiving a $1,000 payment and a gift-wrapped package filled with contraband in a parking lot of a fast food restaurant in San Bernardino.
The contraband that Sobers received for the purpose of smuggling to the inmate included MP3 players, pornographic magazines, pornographic movies, all of which were objects prohibited from delivery to an inmate at USP Victorville and which defendant knew to be prohibited objects according to the plea agreement.
“With the full knowledge that his conduct was illegal and posed a threat to the security of the prison, this defendant betrayed his oath to the United States by accepting a bribe in exchange for smuggling contraband to a prisoner,” said United States Attorney Eileen M. Decker. “Law enforcement officers have a special duty to uphold the law and to act in the public’s interest, and this defendant’s failure to act in the public’s interest both presented an immediate threat of harm to the security of the prison and undermines public confidence in law enforcement in general.”
According to a criminal complaint filed when Sobers was arrested last month, prison officials were investigating the inmate for suspected illegal activity inside the prison. The inmate provided information that Sobers had agreed to provide him with contraband in exchange for bribes.
The inmate’s contact outside the prison cooperated with law enforcement during the January 21 incident in which Sobers accepted $1,000 in cash to smuggle the package to the inmate.
Sobers made his initial court appearance in this case on January 23, at which time he was released on a $10,000 bond.
Sobers is scheduled to be arraigned on February 22 in United States District Court.
Once he pleads guilty, Sobers will face a maximum statutory sentence of 15 years in federal prison.
The investigation in this case was conducted by the Justice Department’s Office of the Inspector General, Investigations Division, Los Angeles Field Office.
The case is being prosecuted by Assistant United States Attorney Julius J. Nam of the Riverside Branch Office.
Company Owner Admits to Supplying Butane to Make Illegal Hash OilRead the Press Release
Assistant U.S. Attorney Andrew J. Galvin (619) 546-9721
NEWS RELEASE SUMMARY – February 9, 2017
SAN DIEGO – The owner of a large butane supply company pleaded guilty to a drug charge today, admitting that his company illegally sold thousands of butane canisters to smoke shops, knowing that some of the butane would be used to illegally manufacture hash oil.
Bosco Kwon, the owner of BK Power Imports, Inc., admitted in his plea agreement that he knew the manufacture of hash oil, a marijuana concentrate, poses a significant risk of fires and explosions.
As part of his plea agreement, Kwon agreed to forfeit $1,026,614 and over 94,152 canisters of butane. Sentencing is scheduled for April 28, 2017 at 9 a.m. before U.S. District Judge Janis L. Sammartino.
Kwon pleaded guilty to a single count of selling drug paraphernalia. The Los Angeles-based business, which sold Power-branded butane, was the nation’s largest supplier of butane specifically designed for use in making hash oil.
Butane Hash Oil (BHO) is a marijuana concentrate, which is a Schedule I controlled substance. The manufacture of BHO is a violation of federal law, Title 21, US Code, Section 841. The manufacture of BHO is also a violation of California state law, Health and Safety Code, Section 11379.6
BHO is similar in appearance to honey or butter. It contains extremely high levels of tetrahydrocannabinol, or THC, and can be up to four times more potent than high grade marijuana. BHO is commonly manufactured by packing marijuana into a glass, plastic, or metal tube. Butane is then sprayed into the top of the tube. The butane strips the marijuana of its cannabinoid-containing oils, which drip from the bottom of the tube, often through a filter and into a holding container. The end product is highly-profitable and can be ingested as an oil, consumed in edibles, or solidified to make concentrated forms of cannabis known as “wax.”
According to admissions in Kwon’s plea agreement, BK Power Imports sold its butane to wholesalers and retailers in San Diego County and throughout the United States, including smoke shops “Greener Side of Life,” “Marry Jane House of Glass Inc,” “Twilight Zone,” “Smoke Tokes Inc,” “Puff and Stuff,” “Cali Kulture-Magic Glass,” and “The Grow Shop.” The butane was sold under the brand names Power, Power 5x, Power 7x, Power 9x, and Power 11x. Kwon imported in excess of 350,000 canisters of butane into the United States every month.
During the manufacture of BHO, butane, a flammable gas that is odorless, colorless, and heavier than air, can evaporate out of the substance and collect on the floor, accumulating to explosive levels without proper ventilation. This process creates an invisible, but very real, risk of fires, explosions, and chemical burns.
Since 2011, the manufacture of hash oil using Power butane has caused at least 54 fires and explosions, 29 serious injuries, and four deaths in California, Oregon, Nevada, and Washington, according to Homeland Security Investigations agents. In 2015, BK Power Imports and Kwon were sued because of an explosion and fire that occurred while two individuals made hash oil using Power butane. One of the individuals died while the other suffered third-degree and full-thickness burns over 40 percent of his body that kept him in an intensive care unit for nearly two months. Despite this lawsuit, Kwon continued to sell Power butane.
“Whatever one believes about marijuana use, the manufacture of hash oil is an extremely dangerous process and puts lives in danger,” said U.S. Attorney Alana Robinson. “We will do everything we can to safeguard the public.”
“Hash oil manufactured with butane gas has led to an alarming number of explosions and fires in recent years,” said Dave Shaw, special agent in charge for HSI San Diego. “HSI is committed to targeting the supply chains where butane gas is sold on the black market for use in hash oil labs. By going after the supply chains and the illicit proceeds, we are able to dismantle the distribution networks, which is a critical step toward shutting down a dangerous epidemic that has put the public’s safety in harm’s way for too long.”
This investigation follows the successful prosecution of the owners of the Newport Beach-based business Puretane. In that case, Puretane’s Chief Executive Officer and Chief Financial Officer admitted that they conspired to launder the proceeds of their illegal butane business. With these prosecutions, Homeland Security Investigations and the U.S. Attorney’s Office for the Southern District of California have shut down the nation’s two leading suppliers of butane designed for use in making hash oil.
DEFENDANT: Case Number 17CR331-JLS
Bosco Kwon Age: 53 La Habra, CA
SUMMARY OF CHARGES
Sale of Drug Paraphernalia – Title 21, U.S.C., Section 863
Maximum penalty: Three years in prison and $250,000 fine
AGENCY
Homeland Security Investigations
*Reporters interested in interviews may contact Assistant U.S. Attorney Andrew Galvin, at (619) 546-9721, or ICE PAO Lauren Mack at 619 719 7921.
Clarion Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
A man who received child pornography pled guilty today in federal court in Cedar Rapids.
Jonathan Sebert, age 24, from Clarion, Iowa, was convicted of one count of receipt of child pornography. At the plea hearing, Sebert admitted that, between 2012 and 2015, he knowingly received child pornography.
Sentencing before Chief United States District Court Judge Linda R. Reade will be set after a presentence report is prepared. Sebert remains in custody of the United States Marshal pending sentencing. Sebert faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, a $100 special assessment, and supervised release for 5 years to life following any imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Wright County Sheriff’s Office and the Mason City Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 16-3054.
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Chicago Man Charged with Sex Trafficking for Recruiting Minors to Engage in Sex ActsRead the Press Release
CHICAGO — A Chicago man was arrested today on federal sex trafficking charges for allegedly using Facebook to recruit minors to participate in sex acts with him and others.
BRYAN OSBORNE, 27, posed as a woman named “Lonyae Johnson” to communicate via Facebook with more than 2,000 individuals, many of them minors, according to a criminal complaint and affidavit filed in federal court in Chicago. Osborne, as Johnson, enticed several children to agree to appear in films depicting child pornography, on the promise that they would be paid thousands of dollars, the complaint states. Osborne, however, told the minors that they would first need to have sex with a producer named “Trey,” purportedly so that Trey could make sure the minors were suitable for filming, according to the charges.
Several of the minors agreed to the arrangement and met with Trey, who turned out to be Osborne, the complaint states. Osborne, posing as Trey, engaged in sex acts with the minors inside and outside of a building in the Austin neighborhood on Chicago’s West Side, according to the complaint. He later fabricated various reasons for why the minors would not be paid, the complaint states.
The complaint charges Osborne with one count of sex trafficking and one count of enticing a minor to engage in a sex act. He appeared this afternoon before U.S. Magistrate Judge Michael T. Mason and was ordered to remain in federal custody. A detention hearing was scheduled for Feb. 16, 2017, at 9:00 a.m.
The complaint was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent in Charge of the Chicago office of the Federal Bureau of Investigation; Eddie Johnson, Superintendent of the Chicago Police Superintendent; James D. Robnett, Special Agent-in-Charge of the Chicago Office of the Internal Revenue Service Criminal Investigation Division; and Cook County Sheriff Thomas J. Dart. The Cook County State’s Attorney’s Office Investigations Bureau provided valuable assistance.
The government is represented by Assistant U.S. Attorneys Bethany Biesenthal, Michelle Petersen and Rebekah Holman.
According to the charges, Osborne used the Facebook handle “lonyae.gotafattie” to pose as Johnson. Osborne told some of the minors that they could be paid larger sums if they referred even younger children to Osborne for participation in child pornography, the complaint states. Osborne also enticed some minors on Facebook to engage in prostitution with other individuals he had recruited, according to the complaint.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count is punishable by a statutory minimum sentence of ten years in prison, and a maximum of life. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children at 1-800-843-5678. The hotline is available 24 hours a day, seven days a week.
Chaves County Man Sentenced for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Jose Villa, 35, of Lake Arthur, N.M., was sentenced today in federal court in Las Cruces, N.M., to 60 months in prison for his conviction on methamphetamine trafficking charges. Villa will be on supervised release for four years after completing his prison sentence.
Villa and his co-defendant Charles Edward Gist, 57, of Artesia, N.M., were arrested in Sept. 2015, on an indictment charging them with conspiracy to distribute methamphetamine from Nov. 17, 2014 through Nov. 20, 2014, and distribution of methamphetamine on Nov. 20, 2014. Villa was also charged with distribution of methamphetamine on Dec. 10, 2014. According to the indictment, the defendants committed the crimes in Eddy County, N.M.
On April 13, 2016, Villa pled guilty to a felony information charging him with conspiracy and two counts of distribution of methamphetamine. In entering the guilty plea, Villa admitted to conspiring with Gist and others to distribute methamphetamine in Nov. 2014. Villa admitted supplying approximately 56 grams of methamphetamine that was distributed to an undercover law enforcement officer on Nov. 20, 2014. He also admitted distributing 51 grams of methamphetamine to an undercover law enforcement officer on Dec. 10, 2014.
Gist pled guilty on April 1, 2016, to a felony information charging him with conspiracy and distribution of methamphetamine. In entering the guilty plea, admitted that he conspired with Villa and others to distribute methamphetamine from Nov. 17, 2014 through Nov. 20, 2014. further admitted that on Nov. 20, 2014, he agreed to sell 56 grams of methamphetamine to an undercover law enforcement officer. was sentenced on Aug. 24, 2016, to 21 months in prison followed by two years of supervised release.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Office Las Cruces Branch Office prosecuted the case.
California Man Pleads Guilty to $460,000 Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a California man pleaded guilty in federal court today to a nearly $460,000 bank fraud scheme that involved stolen checks and false identities.
Michael Keefe White, 61, of Winnetka, Calif., pleaded guilty before U.S. District Judge Beth Phillips to bank fraud, aggravated identity theft and money laundering.
By pleading guilty today, White admitted that he obtained checks stolen from the mail, then used counterfeit identification (such as driver’s licenses with his photo and the name of a victim) to open bank accounts in Missouri and other states in which to deposit the stolen checks as well as counterfeit checks modeled from the stolen checks. White then withdrew or wire transferred the money out of the account.
White used numerous counterfeit driver’s licenses to open bank accounts in a total attempted fraud amount of at least $459,896.
The specific bank fraud to which White pleaded guilty involved an account at a Parkville, Mo., bank in which White deposited a $48,700 counterfeit check. Under the terms of today’s plea agreement, White must forfeit to the government $248,155, which represents the actual loss attributable to the fraud scheme.
Under federal statutes, White is subject to a sentence of up to 40 years in federal prison without parole for bank fraud and money laundering, plus a mandatory consecutive sentence of two years in federal prison for aggravated identity theft. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by IRS-Criminal Investigation, U.S. Department of Treasury – Office of Inspector General and the U.S. Postal Inspector Service.
Berkeley County woman pleads guilty to her role in a heroin distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Holly Hopkins, 35, of Martinsburg, West Virginia, was convicted of racketeering, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Hopkins admitted to traveling between Maryland and West Virginia to aid in a heroin distribution operation in March 2016.
Hopkins pled guilty to one count of “Aiding and Abetting Interstate Travel in Aid of Racketeering.” She faces up to five years in prison and a fine of up to $500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Anna Z. Krasinski prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Eastern Panhandle Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Bay Area Woman Sentenced to 9 Years in Federal Prison for Identity Theft Scheme to Steal State Disability BenefitsRead the Press Release
SACRAMENTO, Calif. — Jermila McCoy, 34, of Oakland, was sentenced today to nine years and two months in prison for charges related to a large identity theft scheme to defraud the State of California of disability insurance benefits, United States Attorney Phillip A. Talbert announced.
According to court documents, McCoy used stolen identities of individuals throughout California to file for disability benefits with the California Employment Development Department. She then caused those disability benefits claims to be certified using the stolen identities of doctors throughout the State of California. Many of the doctors whose identities were used do not certify any disability claims as part of their practice. For example, one physician was employed at a state prison and only treated inmates of that prison. After a claim was filed and certified, McCoy received the fraudulent disability benefits at addresses she controlled. Over 250 stolen identities were used to get fraudulent benefits as part of this scheme and the defendants took over $1.5 million of fraudulent benefits.
This case was the product of an investigation by the United States Postal Inspection Service, the U.S. Marshals Service, and the California Employment Development Department, Criminal Investigations. Assistant United States Attorney Jared C. Dolan prosecuted the case.
Authorities Arrest Six in Odessa for Credit Card Skimming Device SchemeRead the Press Release
This morning, authorities arrested six Cuban nationals for their roles in an alleged credit card skimming device scheme announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist, Texas Comptroller of Public Accounts Glen Hegar and Ector County Sheriff Mike Griffis.
A federal grand jury indictment, returned on January 25, 2017 and unsealed today, charges the following individuals with one count of access device fraud and one count of aggravated identity theft: Juan Adelmo Bermudez, age 46; Jorge Manuel Batista-Gonzalez, age 37; Michel Sarmiento, age 36; Andy Cruz-Leyva, age 45; Sandra Alva Escobar-Carballosa, age 31; and, Livan Sanchez-Leyva, age 38.
According to the indictment, since January 1, 2015, the defendants, under the direction of Livan Sanchez-Leyva and his wife, Sandra Alva Escobar-Carballosa, allegedly conspired to place skimming devices on pumps at local gas stations in order to steal credit card numbers and personal identification information from members of the public. The defendants would then use the stolen information to produce and use “cloned” credit cards to purchase hundreds of gallons of diesel fuel from local gas stations. After acquiring the diesel fuel, the defendants then sold it to others. The known loss amount resulting from the defendants’ scheme is estimated to be more than $37,000.
Upon conviction, the defendants face up to ten years in federal prison for access device fraud and a mandatory two years in federal prison for aggravated identity theft. The defendants remain in federal custody pending detention hearings scheduled for next week.
This investigation was conducted by the FBI’s Permian Basin Oilfield Theft Task Force; Texas Comptroller’s Office - Criminal Investigation Division; and, the Ector County Sheriff’s Office. Homeland Security Investigations (HSI); Immigration and Customs Enforcement (ICE); United States Marshals Service; Texas Department of Public Safety (DPS); Odessa Police Department; Midland County Sheriff’s Office; and, the Reeves County Sheriff’s Office assisted in today’s arrests. Assistant United States Attorney V. LaTawn Warsaw is prosecuting this case on behalf of the government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Armed Bank Robber Sentenced to 16 1/2 Years in Federal PrisonRead the Press Release
EUGENE, Ore. – On February 9, 2017, U.S. District Judge Michael J. McShane sentenced Jeffrey Edward Ownby, 30, of Medford, Oregon, to 198 months in federal prison for committing three armed bank robberies, using a sawed-off shotgun in committing a violent felony and unlawful possession of a destructive device. Ownby was ordered to pay restitution to his victims and will be on supervised release for five years following his prison sentence.
Ownby committed the bank robberies in Medford over a one-year span. In each instance, he wore disguises and brandished firearms in front of customers and employees. On May 16, 2014, Ownby entered the Bank of the Cascades wearing a gray bandana and carrying a drawstring bag. He pulled out a handgun, swung it around and told everyone to “get on the ground.” He said, “you know what this is” before putting the bag on a desk and demanding bank employees fill it with money. Ownby fled with approximately $5,878.
On December 22, 2014, Ownby entered the Washington Federal Bank wearing a fake beard, camouflage head covering and clear glasses. He pulled out a handgun, pointed it at the bank tellers and threw a backpack on the counter. In a similar fashion, he stated “you know exactly what this is” and demanded that tellers put money in the bag. He took approximately $7,969 from the bank before fleeing and again avoiding capture by law enforcement.
On April 1, 2015, Ownby entered the America West Bank wearing a hat and fake beard. He pulled a 12-gauge sawed-off shotgun out of his backpack, pointed it at bank personnel and once again said in a loud voice “you know what this is” as he put the backpack on the teller counter. Bank tellers put approximately $2,375 in Ownby’s bag before he fled.
Police released surveillance photos of the robber to the news media. After spotting his resemblance on a local news report, some of Ownby’s former co-workers contacted police. On April 2, 2015, police served a search warrant at Ownby’s Medford residence and found the sawed-off shotgun and a majority of the money stolen the day prior. Police also found Molotov cocktails in a bag in Ownby’s truck along with his robbery disguises. When interviewed by police, Ownby confessed to the three bank robberies and told them he had pawned the handgun he used to commit the first two. Later, police seized the handgun from a local pawnshop.
This case was investigated by the Medford Police Department and the FBI and was prosecuted by Judith Harper and Byron Chatfield, Assistant United States Attorneys for the District of Oregon.
Alleged Carjacker Rapist Under Federal CustodyRead the Press Release
SAN JUAN, P.R. – On February 8, 2017, United States Magistrate Judge Bruce McGiverin authorized a criminal complaint charging Waldemar Martínez-Ortiz with carjacking with serious bodily injury, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The FBI is in charge of the investigation.
According to the information contained in the affidavit submitted in support of the criminal complaint, on February 6, 2017, Martínez-Ortiz was detained by the Puerto Rico Police Department (PRPD) pursuant to an ongoing investigation concerning several cases reported to the PRPD of a masked man forcing entry into the homes of females, sexually assaulting them, and then taking their cars.
The investigation revealed that on January 31, 2017, at approximately 10:30 PM, Martínez-Ortiz, wearing a mask and carrying a silver gun, ran up to a female who was outside her home sitting on her porch. The defendant ordered her to go inside the apartment, where the victim’s sister was. The defendant demanded that both victims give him all their money and they complied. After the defendant went through the apartment in search of more valuables, he sexually assaulted both women. After sexually assaulting the sisters, Martinez-Ortiz took a car that belonged to one of them.
The investigation also revealed that on February 6, 2017, Martínez-Ortiz, wearing a mask, committed another home invasion in Bayamón. The defendant approached a female that was outside her home, brandished a firearm and directed her to get inside her home. Once inside the home, the victim’s brother and boyfriend were able to restrain him until officers from the PRPD arrived at the scene.
“The victims of this crime should rest assured that we will zealously protect their rights and seek justice during our prosecution of this offense,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “I commend the PRPD agents, detectives and P.R. Department of Justice prosecutors for their persistence and efforts in solving these crimes.”
The case is being prosecuted by Special Assistant United States Attorney Daynelle M. Álvarez. If convicted, the defendant faces a maximum penalty of up to 25 years in prison. A criminal complaint contains only charges and is not evidence of guilt. A defendant is presumed to be innocent unless and until proven guilty.
8 February 2017
York Man Indicted on Heroin Trafficking and Firearms ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Manuel Maldonado-Martinez, age 27, of York, Pennsylvania, was indicted by a federal grand jury on heroin trafficking and firearms charges.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Maldonado-Martinez possessed with the intent to distribute heroin on June 30, 2016, in York. The indictment also alleges that Maldonado-Martinez unlawfully possessed a firearm as a previously convicted felon and possessed the firearm in furtherance of drug trafficking.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the York City Police Department. Assistant United States Attorney Carlo D. Marchioli is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Additionally, this case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is a lifetime term of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Williamsville Man Charged in Wire Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Robert C. Logel, 53, of Williamsville, NY, was arrested and charged by criminal complaint with wire fraud. The charge carries a maximum penalty of 20 years in prison, and a $250,000 fine.
Assistant U.S. Attorney MaryEllen Kresse, who is handling the case, stated that in 2009, the defendant was convicted of wire fraud for defrauding two victims out of nearly $3,000,000 and sentenced to 48 months in prison. Logel told the victims that he invested their money in various businesses when he fact he used the funds for his own use.
According to the complaint, within months of being released from prison, Logel began to devise his next scheme. The scheme involved the alleged production, distribution, and sale of two skin and healthcare products: Nano Hydro Mist and Hot Ginger Muscle Rub. During the course of the scheme, the defendant made false representations regarding his ability to distribute and market these products. As a result, victims transferred funds to Logel which they believed would be used to ready the products for distribution and sale. The defendant did not, however, use the victims' money as promised. Rather, Logel used the vast majority of the funds for his personal use, including to pay personal expenses.
Logel appeared at a detention hearing this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and was released on conditions.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen, and the Internal Revenue Service, Criminal Investigation Division, under the direction of Acting Special Agent-in-Charge Kathy A. Enstrom.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Waltham Man Sentenced for Defrauding Customers of Former Newton Travel AgencyRead the Press Release
BOSTON – A Waltham man was sentenced today in U.S. District Court in Boston in connection with a scheme in which he defrauded hundreds of customers of the now-defunct Tom Harper Cruises of more than $2.9 million in cruise trip deposits.
Bret A. Gordon, 44, was sentenced by U.S. District Court Judge Denise J. Casper to 46 months in prison, three years of supervised release and ordered to pay $2,891,092 in restitution to victims. In November 2016, Gordon pleaded guilty to six counts of wire fraud and two counts of filing a false personal tax return.
In 2013, Gordon established and owned a 65% interest in Tom Harper Cruises, a business selling overseas river cruise vacations. As the company’s manager, Gordon had exclusive control of its bank accounts and finances. Soon after Tom Harper Cruises began operating, Gordon started to take money from its bank account for his own use, primarily for casino gambling. Most of the funds Gordon took were customer deposits for trips that the company needed to retain in order to pay the independent cruise companies that operated those trips.
As Gordon’s conversion of company funds increased, Tom Harper Cruises became unable to pay some of its regular business expenses and, inevitably, to pay the independent cruise companies for the trips ordered by customers. In June 2015, Tom Harper Cruises closed its doors and filed for bankruptcy. Between September 2013 and June 2015, Gordon took about $2,258,500 from Tom Harper Cruise’s accounts for his own use. About 400 customers were left without the trips they planned for, after paying Tom Harper Cruises a total of approximately $2.9 million.
Gordon also failed to report the money he had taken as income on his personal income tax returns. He failed to report about $165,000 that he received in 2013, and about $900,000 that he had taken in 2014.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Mark J. Balthazard of Weinreb’s Economic Crimes Unit prosecuted the case.
Veterans Affairs Employees Charged with Stealing and Selling Prescription DrugsRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, James W. Werner, Special Agent in Charge of the South Central Field Office of the Department of Veterans Affairs Office of the Inspector General (VAOIG), and Matthew R. Barden, Assistant Special Agent in Charge of the Little Rock District Office of the Drug Enforcement Administration (DEA), announced today the unsealing a federal indictment charging three Veterans Affairs (VA) employees with conspiring to steal prescription medications, including opioids, from the VA John L. McClellan Memorial Veterans Hospital in Little Rock, and conspiring to distribute those drugs.
The superseding indictment, returned by a federal grand jury on Wednesday, charges Satishkumar "Steve" Patel, 44, of North Little Rock, Alisha Pagan, 33, of Mabelvale, and Nikita Neal, 42, of Little Rock with eight counts stemming from a scheme to order oxycodone, hydrocodone, Viagra, Cialis, and promethazine syrup with codeine and divert them from the VA for street distribution.
"This case is an example of government employees using their position of trust to not only steal from the taxpayers of Arkansas, but also to poison the communities we live in with dangerous drugs," Thyer said. "Curbing the illegal distribution of opioids continues to be a primary focus for my office, and it is particularly troubling when the crime is being committed by people in the health-care industry."
This investigation began in June 2016, when VAOIG received a report that large amounts of unaccounted for prescription medications were charged to VA accounts. The VAOIG’s investigation revealed that Patel, a pharmacy technician, used his VA access to a medical supplier’s web portal to order and divert 4,000 oxycodone pills, 3,300 hydrocodone pills, 308 ounces of promethazine with codeine syrup, and more than 14,000 Viagra and Cialis pills, at a cost to the VA of approximately $77,700 dollars, with a street value of more than $160,000. It is alleged that Patel falsified payment invoices to avoid detection.
"This indictment illustrates that the Department of Veterans Affairs Office of Inspector General remains committed to stemming the diversion and abuse of opioids in VA facilities," Werner said.
During the course of the investigation, which included controlled deliveries of oxycodone at the direction of law enforcement, VAOIG and DEA determined that Patel was distributing the medications to pharmacy technician Pagan, who in turn distributed a portion of the drugs to Neal, a pharmacy technician student trainee.
"The abuse of prescription drugs, such as oxycodone and hydrocodone, remains a significant problem in our communities. For the health and safety of our citizens, DEA will continue to target the illegal diversion of these pharmaceuticals, which can result in the tearing apart of families and the destruction of individual lives," Barden said. "It is particularly egregious when the perpetrators of such illegal acts are health care professionals responsible for ensuring that potentially dangerous drugs are dispensed properly. We will continue to work with our law enforcement partners, including those at the Department of Veteran Affairs Office of the Inspector General, to ensure that if a health care provider illegally diverts pharmaceuticals, they will be held accountable for the harm they cause."
All three defendants are charged in a conspiracy to steal the medication, as well as conspiracies to distribute oxycodone and hydrocodone. Patel is also charged in four counts of possession with intent to deliver oxycodone, and Pagan is charged with one count of possession with intent to deliver oxycodone.
Conspiracy to possess with intent to distribute oxycodone and hydrocodone, and possession with intent to distribute oxycodone and hydrocodone is punishable by not more than 20 years’ incarceration in the Bureau of Prisons, with a possible fine of up to $1,000,000, and not less than 3 years supervised release. Conspiracy to steal government property is punishable by not more than five years’ incarceration in the Bureau of Prisons, with a possible fine of up to $250,000, and not more than three years supervised release.
The case against Patel, Pagan, and Neal was investigated by the VAOIG and DEA, and is being prosecuted by Assistant United States Attorney Hunter Bridges.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
Unsealed Indictment Reveals Four More Defendants Face Federal Charges Related to DAPL ProtestsRead the Press Release
FARGO - US Attorney Christopher C. Myers announced that on February 8, 2017, that an Indictment unsealed by the Court today reveals that the following defendants were Indicted for Civil Disorder and Use of Fire to Commit a Federal Crime arising out of an incident on October 27, 2016:
1. Brennon J. Nastacio a/k/a "Bravo One" – age 36
2. Brandon Aaron Miller-Castillo – age 22
3. Dion Ortiz – age 20
These defendants currently remain fugitives and their whereabouts are unknown. Law enforcement is requesting the assistance of the public in locating these individuals. Attached are photographs of these fugitives. Co-defendant James White, a/k/a "Angry Bird" was arrested on February 8, 2017 and will appear in Federal Court in Bismarck on or about February 8, 2017.
Co-defendant Michael Mateo Markus, previously appeared on these charges on February 3, 2017 and a trial will be scheduled before the Honorable Daniel J. Hovland when the remaining co-defendants appear in court.
This case is being investigated by the Morton County Sheriff’s Office, North Dakota Bureau of Criminal Investigation, Alcohol Tobacco Firearms and Explosives and the Federal Bureau of Investigation. Assistant United States Attorney Gary Delorme is prosecuting the cases.
An Indictment is an accusation and notice of charges. These defendants are presumed innocent under the law.
Brennon Nastacio
Brandon Miller-Castillo
Dion Ortiz
U.S. District Court Blocks Anthem’s Acquisition of CignaRead the Press Release
Judge Amy Berman Jackson for the District of Columbia ruled in favor of the Justice Department in its civil antitrust lawsuit to block health insurer Anthem, Inc.’s acquisition of Cigna Corp., the Justice Department announced.
“Today’s decision is a victory for American consumers,” said Acting Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division. “This merger would have stifled competition, harming consumers by increasing health insurance prices and slowing innovation aimed at lowering the costs of healthcare. In concluding that Anthem’s acquisition of Cigna would violate federal antitrust laws, the court has protected consumers and the competition on which they rely. I thank the hardworking staff of the Antitrust Division and our state partners, who conducted a thorough investigation and offered a clear and compelling presentation across a two-phase trial and never wavered in their commitment to protect competition in these markets.”
Today’s decision follows a trial that ran from Nov. 21, 2016, to Jan. 3, 2017. In July 2016, the Justice Department along with 11 states and the District of Columbia sued to stop the merger. The complaint alleged that a combined Anthem and Cigna would substantially lessen competition in the health insurance industry in dozens of markets across the country.
The district court’s opinion is temporarily under seal to allow the parties to review for confidentiality.
The United States was joined in the lawsuit by the District of Columbia and the States of California, Colorado, Connecticut, Georgia, Iowa, Maine, Maryland, New Hampshire, New York, Tennessee and Virginia.
Two St. Albans men each sentenced to seven years in federal prison for their roles in large-scale methamphetamine conspiracyRead the Press Release
CHARLESTON, W.Va. – Two St. Albans men were sentenced to federal prison today for their roles in a large-scale drug trafficking organization, announced United States Attorney Carol Casto. Mark Cobb, 30, of St. Albans, was sentenced to seven years in prison for conspiracy to distribute methamphetamine. Shayne Shamblen, 47, was also sentenced to seven years in prison for conspiracy to distribute methamphetamine.
As part of a comprehensive investigation, agents from the United States Postal Inspection Service, the Metropolitan Drug Enforcement Network Team, and Homeland Security Investigations intercepted several mail packages that contained methamphetamine, other drugs, or drug proceeds. Throughout the course of the conspiracy, several pounds of methamphetamine were transported from California and Nevada into the Southern District of West Virginia via the United States mail or through individuals driving packages of drugs into the area. Cobb and Shamblen each admitted that they worked with Joseph Cooper, a codefendant, to arrange for the shipment and transport of methamphetamine to West Virginia.
Shamblen admitted that in April 2015, he arranged for the shipment of a package sent to him by Cooper containing over 100 grams of crystal methamphetamine. Shamblen further admitted that he intended to distribute the methamphetamine contained in the package. Cobb lived with Cooper in Nevada for a short time, and also helped with the packaging and distribution of methamphetamine. Cobb’s fingerprint was found on a package containing approximately 3 grams of crystal methamphetamine that was sent to an individual in St. Albans in April 2015. The methamphetamine from both of the packages was laboratory tested and found to be over 90% pure.
Cooper was sentenced to 14 years in prison for possession with intent to distribute methamphetamine. Benjamin Childers, another individual involved with the transport of methamphetamine in this drug trafficking organization, was sentenced to 10 years and a month in prison for conspiracy to distribute methamphetamine.
Assistant United States Attorney Haley Bunn is responsible for these prosecutions. United States District Judge John T. Copenhaver, Jr., imposed the sentences and is presiding over these cases.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, 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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Two Springfield Men Indicted on Drug, Gun Charges in Separate CasesRead the Press Release
SPRINGFIELD, Ill. – A federal grand jury today returned separate, unrelated indictments that charge two Springfield men with drug and gun offenses.
Darryl D. Perkins, 38, of the 2100 block of S. Renfro St., is charged with five counts of distribution or possession with intent to distribute a controlled substance, heroin, possession of a firearm during and in relation to a drug trafficking offense, and possession of a firearm by a felon. The indictment alleges that on five separate occasions, from November 2016 to Jan. 19, 2017, Perkins distributed or possessed with intent to distribute heroin, and that he possessed a Colt Trooper MK3 .357 revolver.
Perkins was previously arrested and charged in a criminal complaint filed on Jan. 20, 2017. Perkins made his initial appearance in federal court on Jan. 23, 2017, before U.S. Magistrate Judge Tom Schanzle-Haskins. Perkins was ordered to remain detained in the custody of the U.S. Marshals Service.
The charges against Perkins were investigated by the Drug Enforcement Administration, Illinois State Police, the Springfield Police Department, and the Illinois Attorney General’s Office. Assistant U.S. Attorney Matthew Z. Weir is prosecuting the case.
In an unrelated indictment, Jamarr Moore, 20, of the 700 block of N. 14th St., is charged with one count each of possession with intent to distribute a controlled substance, crack cocaine, possession of a firearm during and in relation to a drug trafficking offense, and possession of a firearm by a felon. The indictment alleges that Moore possessed crack cocaine and a Glock .40 caliber semi-automatic firearm on Jan. 5, 2017.
Moore was arrested on state charges on Jan. 5; a federal criminal complaint was filed on Jan. 23. Moore made his initial appearance in federal court on Jan. 23, 2017. U.S. Magistrate Judge Tom Schanzle-Haskins ordered that Moore remain detained in the custody of the U.S. Marshals Service.
The charges against Moore were investigated by the Springfield Police Department Street Crimes Unit, the FBI, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Victor Yanz is prosecuting the case.
If convicted, for each count of distribution or possession with intent to distribute heroin (five counts), Perkins faces maximum statutory penalties of up to 30 years in prison. For possession with intent to distribute crack cocaine (one count), Moore faces a maximum statutory penalty of 20 years in prison. The offense of possession of a firearm during and in relation to a drug trafficking offense carries a mandatory minimum five years in prison to be served consecutive to any sentence ordered for the related drug offense. Possession of a firearm by a felon carries a statutory maximum penalty of 10 years in prison.
The maximum statutory penalty for each offense charged is prescribed by Congress and is provided for informational purposes, as sentencing is determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Two Sentences Handed Down in Northeast Georgia Methamphetamine CrackdownRead the Press Release
G.F. “Pete” Peterman, III, United States Attorney for the Middle District of Georgia, announces that two individuals were sentenced yesterday in Athens on drug and other charges by the Honorable C. Ashley Royal, Senior United States District Court Judge.
Travis Eugene Pearson, aged 40, of Spartanburg, South Carolina, was sentenced to serve 10 years (120 months) in Federal prison for conspiracy to possess with intent to distribute methamphetamine and possession of a firearm by an illegal drug user. Mr. Pearson pled guilty to the charges on October 26, 2016. According to the plea agreement, on June 10, 2015, a Franklin County Sheriff’s Deputy stopped Mr. Pearson’s vehicle on Interstate 85 in response to several traffic violations. Mr. Pearson had more than $13,000 in U.S. currency in his trousers pocket. During a subsequent search, the deputy found a loaded firearm in the driver-side panel, drugs in clear baggies and drug paraphernalia.
During an interview, Mr. Pearson admitted that he had collected the currency from at least ten individuals in South Carolina and planned to use it to pay for methamphetamine acquired in Atlanta. He further admitted that he had made trips to Atlanta three prior times for drug-related activities. Mr. Pearson also stated that the firearm found in the car was his and that he had been a daily user of methamphetamine for two years.
In a separate case, William Corey Hughes, aged 26, of Bowman, Georgia, was sentenced to serve 13.5 years (162 months) in Federal prison for possession with intent to distribute methamphetamine. Mr. Hughes entered his guilty plea on November 15, 2016.
In pleading guilty, Mr. Hughes admitted that on March 17, 2015, he was stopped by a Hart County Sheriff’s Deputy in Royston, Georgia while driving in the middle of the road. After Mr. Hughes refused to give consent for a search of the vehicle, a drug dog alerted on several spots on the car, including the front right headlight. Upon lifting the hood, the deputy found a metal box attached to the frame of the truck with magnets. Inside the box was a gallon-sized bag containing a crystalline substance later identified as methamphetamine, a substantial number of pills, and other drug paraphernalia.
The case against Mr. Pearson was investigated by the Franklin County Sheriff’s Office, Georgia Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorney Peter Leary with the participation and cooperation of the District Attorney’s Office for the Northern Judicial Circuit of Georgia.
The Hart County Sheriff’s Office, Athens-Clarke County Police Department, Northeast Georgia Regional Drug Task Force and the Georgia Bureau of Investigation investigated the case against Mr. Hughes. This case was prosecuted by Assistant United States Attorney Danial Bennett, again with the participation and cooperation of the District Attorney’s Office for the Northern Judicial Circuit of Georgia.
United States Attorney Peterman stated that “These two cases are excellent examples of what can be accomplished when federal, state and local authorities work together. In each case a major drug dealer has been taken out of the local community for a decade or more as the result of this cooperation.”
“We are grateful to the dedicated and professional prosecutors working in the United States Attorney’s Office for partnering with us to incapacitate those who peddle poison in our community. Drug dealers breed crime by profiting off of the misery of individuals who might otherwise have a chance to be productive citizens. The actions taken here by the United States Attorney’s Office sends a strong message to would be outlaws regarding the consequences of their action.” said Northern Judicial Circuit District Attorney Parks White.
Inquiries regarding this case should be directed to Pam Lightsey, Public Information Officer, United States Attorney’s Office, at 478-752-3511.
Two Men Sentenced for Smuggling $4.6 Million in CocaineRead the Press Release
CORPUS CHRISTI, Texas - Two San Antonio residents have been ordered to federal prison following their convictions of smuggling 59 kilograms of cocaine, announced U.S. Attorney Kenneth Magidson. Darin Josep Fox, 24, and Jacob Escalante, 25, pleaded guilty Oct. 31, 2016, to conspiracy to possess with intent to distribute cocaine.
Today, Senior U.S. District Judge Hayden Head ordered both Fox and Escalante to each serve 120 months in federal prison immediately be followed by five years of supervised release. In handing down the sentence, Judge Head noted that the amount of cocaine seized in this case would have had a significant impact and harm on the community.
On June 13, 2016, Fox was driving a Kenworth Tractor with Escalante as passenger. They were towing a flatbed trailer into the Sarita checkpoint on Highway 77 for primary inspection, at which time a service K9 alerted to the presence of contraband. Upon examination, agents discovered and removed 59 square bundles wrapped in black tape containing cocaine from a void located between the frame rails. The cocaine had a total weight of 59 kilograms with an estimated value of approximately $4.6 million.
Fox and Escalante will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and Border Patrol conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Two Buffalo Men Plead Guilty to Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Rodney Courton, 48, and John Davis, 44, both of Buffalo, NY, pleaded guilty to obtaining controlled substances through fraud, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of four years in prison and a $250,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that between December 2013 and April 2015, co-defendant Brandon Coburn, a licensed nurse practitioner who is legally authorized to prescribe controlled substances, provided fraudulent fentanyl, oxycodone, oxymorphone, and amphetamine prescriptions to Courton, Davis, and eight other co-defendants. Those prescriptions, however, were not used for a legitimate medical purposes and instead were filled by the defendants and others and sold on the street in the Buffalo area. Courton and Davis filled a total of 34 of the fraudulent prescriptions.
To date, four defendants charged in this investigation have been convicted. 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.
Today’s pleas are the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division.
Courton is scheduled to be sentenced on May 17, 2017 at 12:30 p.m. Davis is scheduled to be sentenced on May 18, 2017 at 12:30 p.m., both before Judge Arcara.
Tuttle Man Draws 50-year Federal Prison Sentence for Child Exploitation ConvictionRead the Press Release
BISMARCK - US Attorney Christopher C. Myers announced that on February 6, 2017, Calvin Bernhardt, 54, Tuttle, ND, was sentenced before Chief United States District Judge Daniel L. Hovland to serve 50 years in prison, followed by lifetime supervised release, on charges of: Attempted Sexual Exploitation of a Minor, Attempted Receipt of Materials Depicting the Sexual Exploitation of a Minor, Counterfeit Currency, Tampering with Witness or Evidence, and Attempted Travel with Intent to Engage in Sexual Acts with a Minor.
Bernhardt was found guilty of the above charges on October 28, 2016, following nearly four days of trial. Evidence introduced at trial demonstrated that, from approximately September 2015 to approximately March 2016, Bernhardt induced and enticed a 14-year-old minor from the Philippines to engage in and produce images of sexually explicit conduct via the internet. Bernhardt further induced the minor to send him the sexually explicit or sadistic and masochistic images. Once Bernhardt became aware of an investigation into his illegal conduct, he contacted the mother of the victim in the Philippines and instructed her to delete any images of himself and the minor on the minor’s cellphone and further instructed her to not talk to United States federal law enforcement officials in the Philippines. Communications between Bernhardt and the victim revealed that Bernhardt was attempting to arrange a meeting with the minor in a Philippines hotel with the intent of engaging in sexual acts with her.
This case was investigated by the Department of Homeland Security-Homeland Security Investigations in Bismarck; Homeland Security Investigations-Manila, Philippines; and the North Dakota Bureau of Criminal Investigation.
Assistant US Attorneys Gary Delorme and Jonathan O’Konek prosecuted the case.
Three Nigerian Nationals from South Africa Convicted in International Cyber Financial Fraud SchemeRead the Press Release
Three Nigerian nationals, who in July 2015 were extradited from South Africa to the Southern District of Mississippi, were convicted today by a federal jury for their wide-ranging Internet fraud schemes.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Gregory K. Davis of the Southern District of Mississippi made the announcement.
Oladimeji Seun Ayelotan, 30, was convicted of conspiracy to commit mail fraud, wire fraud, and bank fraud, conspiracy to commit identity theft, access device fraud, and theft of U.S. government funds, two counts of mail fraud, and conspiracy to commit money laundering. Ayelotan faces up to 95 years in prison. Rasaq Aderoju Raheem, 31 was convicted of conspiracy to commit mail fraud, wire fraud, and bank fraud, conspiracy to commit identity theft, access device fraud, and theft of U.S. government funds, three counts of mail fraud, and conspiracy to commit money laundering. Raheem faces up to 115 years in prison. Femi Alexander Mewase, 45, was convicted of conspiracy to commit mail fraud and wire fraud, and conspiracy to commit identity theft, access device fraud, and theft of U.S. government funds. Mewase faces up to 25 years in prison. Sentencing for all three is set for May 24 in the Southern District of Mississippi.
According to trial testimony and evidence presented in the three-week trial, the defendants participated in numerous complex Internet-based financial fraud schemes, including romance scams, re-shipping scams, fraudulent check scams, and work-at-home scams, as well as bank, financial, and credit card account takeovers. From as early as 2001, the defendants identified and solicited potential victims through online dating websites and work-at-home opportunities. In some instances, the defendants carried on fictitious online romantic relationships with victims for the purpose of using the victims to further objectives of the conspiracy. For example, the defendants convinced victims to ship and receive merchandise purchased with stolen personal identifying information (PII) and compromised credit card and banking information, to deposit counterfeit checks, to withdraw money from fraudulent pre-paid debit cards that were loaded with money from stolen credit cards and to transfer proceeds of the conspiracy via wire, U.S. mail, or express delivery services.
A total of 21 defendants were charged in this case. To date, defendants Adekunle Adefila, 41, of Nigeria; Anuoluwapo Segun Adegbemigun, 40, of Nigeria; Gabriel Oludare Adeniran, 30, of Nigeria; Genoveva Farfan, 45, of California; Rhulane Fionah Hlungwane, 26, of South Africa; Teslim Olarewaju Kiriji, 30, of Nigeria; Dennis Brian Ladden, 75, of Wisconsin; Olutoyin Ogunlade, 41, of New York; Taofeeq Olamilekan Oyelade, 32, of Nigeria; Olufemi Obaro Omoraka, 27, of Nigeria; and Olusegun Seyi Shonekan, 34, of Nigeria; have pleaded guilty to related conspiracy charges. Susan Anne Villeneuve, 49, of California, is awaiting trial.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the U.S. Postal Inspection Service investigated the case. Significant assistance was also provided by the Criminal Division’s Office of International Affairs, the HSI Cyber Crimes Center, HSI Attachés in Pretoria, South Africa and Dakar, Senegal, the U.S. Marshals Service’s International Investigations Branch and the Southern District of Mississippi District Office, the South African Police Service (SAPS) Directorate of Priority Crimes Investigation (DPCI) Electronic Crimes Unit, the SAPS Interpol Extradition Unit, the South African National Prosecution Authority and the South African Department of Justice and Constitutional Development. Trial Attorney Conor Mulroe of the Criminal Division’s Organized Crime and Gang Section, Senior Counsel Peter Roman of the Criminal Division’s Computer Crime and Intellectual Property Section, and Assistant U.S. Attorney Annette Williams of the Southern District of Mississippi tried the case.
If you believe that you may have been a victim of criminal fraud committed by any of the defendants, please go to http://www.justice.gov/usao-sdms/scams and complete the questionnaire. Defendants allegedly used the following email addresses and names to perpetuate the scheme:
Stacy Adams Marlon Chase
Regina Darwin Folly Edwards
Kimberly Faye Lorene M. Garrett
Mark Gentile John Gervino
Dickson Jones Anita Lauren
Samuel Maxwell Mark Miller
Adeline Piper Sarah Powell
Karen Robinson Glenn Sattelberg
Kevin Smith Mark Smith
Richard Wasser Justin Worsham
Any information that you provide through the questionnaire may be helpful in the criminal investigation and prosecution of this case. A federal investigator may contact you with additional questions or to request documents you may have. Please note that submitting the questionnaire is not a substitute for consulting with your own attorney to determine what actions and remedies may be available to you through civil litigation. If you have any questions related to this matter that are not addressed at the above websites, you may contact federal law enforcement authorities at [email protected].
Three Monroe County Men Indicted on Drug and Firearms ChargesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Deshaun Lipscomb, age 24, of Bushkill, Pennsylvania, Pablo Martinez, age 27, and Orrett Campbell, age 37, both of East Stroudsburg, Pennsylvania, were indicted on February 7, 2017, by a federal grand jury on drug trafficking and firearms charges.
The indictment was unsealed today following the arrests of defendants. The defendants were arraigned before United States Magistrate Judge Joseph F. Saporito, Jr. and were ordered detained pending a detention hearing scheduled for February 13, 2017.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Lipscomb, Martinez, and Campbell conspired to traffic marijuana and used firearms during the course of that conspiracy. The charges stem from a drug deal that turned into a shooting in East Stroudsburg in January 2016. The victim of the shooting suffered two gunshot wounds and was forced from a vehicle travelling at high speed.
The indictment further alleges that Lipscomb possessed a firearm in furtherance of heroin trafficking and trafficked heroin and cocaine, and that Martinez trafficked MDAM, commonly known as “Molly” or “ecstasy.”
The case was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police. The case is being prosecuted by Assistant U.S. Attorneys Francis P. Sempa and Sean A. Camoni.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The total maximum penalty under federal law for these offenses is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Tampa Man Pleads Guilty to Role in Stolen Identity Refund Fraud SchemeRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Weldon Malveau (41, Tampa) yesterday pleaded guilty to theft of government property. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, between January 2011 and March 2012, Malveau was involved in a scheme to file false and fraudulent income tax returns with the Internal Revenue Service (IRS) in order to generate large refunds that were deposited onto debit cards. When law enforcement officers arrested Malveau on March 15, 2012, he had 26 debit cards in the names of different individuals in his possession, along with ledgers containing names and social security numbers. The investigation revealed that the IRS had received fraudulent tax returns and issued refunds in the names of many of those individuals, totaling approximately $342,563, which was traced back to Malveau. An analysis of the debit cards in Malveau’s possession revealed that he had purchased a 2010 Porsche Panamera for $85,000 with the proceeds from his scheme. As part of the plea agreement, Malveau agreed to forfeit the Porsche.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Adam M. Saltzman.
St. Croix Man Sentenced to Probation for Unlawful Mailing of FirearmRead the Press Release
St. Croix, USVI – District Court Judge Raymond L. Finch, on February 7, 2017, sentenced Waleed Lang, 33, of St. Croix, Virgin Islands, to five years of probation for unlawful mailing of a firearm, United States Attorney Ronald W. announced. Judge Finch also ordered Lang to pay a fine of $500 along with a special assessment of $100.
On or about February 15, 2014, Lang knowingly mailed a U.S. priority mail parcel from Florida to St. Croix. The parcel contained a Titan Tier .38 caliber revolver.
The case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and was prosecuted by Assistant U.S. Attorney Alphonso Andrews, Jr.
Shawano County Man Indicted for Child Sex Offenses on Menominee Indian ReservationRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on February 7, 2017, a federal grand jury returned a three-count indictment charging William C. Wilber IV (age: 35), of Suring, Wisconsin with child sex offenses on the Menominee Indian Reservation. This is in violation of 18, United States Code, Sections 2243(a) and 1153(a). If convicted, Wilber faces a maximum sentence of up to 15 years’ imprisonment, up to a $250,000 fine, at least 5 years of supervised release, and a $5,000 special assessment, on each of the three counts.
According to the indictment, the defendant engaged in sex acts with two teenage girls near a family property on Legend Lake on the Menominee Indian Reservation. Count One charges the defendant with engaging in a sex act with a 14-year old girl in spring 2015. Counts Two and Three relate to the defendant engaging in sex acts with a 15-year old girl in summer 2015 and fall 2016.
The case was investigated by the Menominee Tribal Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Andrew J. Maier.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Shady Point Woman Sentenced to 4 Months for Conspiracy to Steal Postal OrdersRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that LADAUGHNA JEAN DUXBURY, age 54, of Shady Point, Oklahoma, was sentenced to 4 months imprisonment, and 3 years of supervised release for CONSPIRACY TO STEAL, POSSESS AND UTTER STOLEN UNITED STATES POSTAL MONEY ORDERS, in violation of Title 18, United States Code, Section 371.
The Indictment alleged that from on or about December 24, 2015, and continuing thereafter until on or about January 13, 2016, in the Eastern District of Oklahoma and elsewhere the defendant, did knowingly and willfully conspire, confederate and agree together, and with other persons both known and unknown to the Grand Jury, to commit offenses against the United States in violation of Title 18, United States Code, Section 500, namely, did knowingly steal, receive, possess, pass and utter, and attempt to pass and utter stolen United States Postal Service Money Order Forms with the intent to convert them to her own use or gain, and the use or gain of another, knowing said United States Postal Service Money Order Forms to have been stolen and converted.
The charge arose from an investigation by the Pocola Police Department and the United States Postal Service.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Kristin Harrington represented the United States.
Second Construction Company Owner Charged with Conspiring to Pay Bribes for City of Atlanta ContractsRead the Press Release
ATLANTA – Charles P. Richards, Jr., has been arraigned on conspiratorial bribery charges for paying over $185,000 to obtain City of Atlanta contracts.
“From approximately 2010 to August 2015, Richards conspired with E.R. Mitchell to buy lucrative construction-related contracts with the City of Atlanta,” said U.S. Attorney John A. Horn. “Contractors who willingly participate in a pay-to-play contracting system subvert the process for those who try to compete fairly and ultimately undermine the public’s trust in government.”
“The arraignment of Mr. Richards illustrates once again that providing bribes in order to obtain government contracts, be it city, state, or federal, can land you in the defendant’s chair as easily as for those accepting the bribes. The FBI continues to work diligently with its various law enforcement partners and federal prosecutors in identifying, investigating, and presenting for prosecution all individuals engaged in these types of criminal public corruption schemes that undermine the legitimate and established practices of government,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
“The citizens of Atlanta must be able to trust that government officials will perform their duties in the best interests of the communities they serve,” said Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “Charles Richards Jr. undermined the process of fair and open competition when he conspired with others to pay bribes in exchange for securing lucrative contracts with the City of Atlanta. Today’s announcement demonstrates our commitment to work in a collaborative effort to promote honest and ethical government at all levels.”
According to U.S. Attorney Horn, the charges, and other information presented in court: Richards serves as the owner and/or principal of the construction companies C.P. Richards Construction Co., Inc., and C.P. Richards & Associates, Inc.
In an effort to obtain construction-related contracts with the City of Atlanta, Richards and defendant Elvin R. Mitchell, Jr. conspired to pay an individual to obtain government contracts. From approximately 2010 to August 2015, Richards paid over $185,000 to an individual in exchange for City of Atlanta contracts, believing that some of the money would be paid to city official/s who exercised influence over the contracting process.
Charles. P Richards, Jr., 64, of Tucker, Georgia, was charged by information and will plead guilty on February 16, 2017, before the U.S. District Court Judge Steve C. Jones.
This case is being investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.
First Assistant United States Attorney Kurt R. Erskine and Assistant United States Attorneys Jeffrey W. Davis, and Jill Steinberg, are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Scranton Man Charged with Drug Distributions Resulting in Two Deaths and Serious Bodily Injury to A Third VictimRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Josthan Cardona, age 26, of Scranton, Pennsylvania, was indicted on February 7, 2017, by a federal grand jury for conspiracy to distribute heroin and distribution of heroin and fentanyl, resulting in two deaths and serious bodily injury to another victim.
According to United States Attorney Bruce D. Brandler, the five-count indictment alleges that beginning in or about September 2015 and continuing through December 2015, Cardona conspired with others to distribute heroin in Lackawanna County. The indictment also alleges that Cardona distributed heroin and fentanyl on December 7, 2015 and December 12, 2015, resulting in the death of two individuals and distributed heroin and fentanyl on December 12, 2015, to a third individual who overdosed as a result of the heroin causing serious bodily injury.
The investigation was conducted by the Drug Enforcement Administration – Scranton Office, the Dunmore and Scranton Police Departments, and the Lackawanna County District Attorney’s Office. Assistant United States Attorney Michelle Olshefski is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Drug distributions resulting in death or severe bodily injury require a 20 year minimum-mandatory sentence. The maximum penalty under federal law for the crimes charged in the indictment is life in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Roswell Felon Sentenced to Five Years in Prison for Unlawfully Possessing Firearm and Violating Supervised Release ConditionsRead the Press Release
ALBUQUERQUE – Enrique Chavarria, 33, of Roswell, N.M., was sentenced today in federal court in Las Cruces, N.M., to 40 months in prison for violating the federal firearms laws by unlawfully possessing a firearm and ammunition. He also was sentenced to an additional 20 months in prison for violating the terms of his supervised release on a prior conviction, for a total sentence of 60 months of imprisonment. Chavarria will be on supervised release for three years after completing his prison sentence.
Chavarria was arrested on July 21, 2016, in Chaves County, N.M., by the U.S. Marshals Service, and was charged by criminal complaint with being a felon in possession of a firearm and ammunition. At the time, was prohibited from possessing firearms or ammunition because he previously had been convicted of possession of methamphetamine and cocaine with intent to distribute.
On Sept. 16, 2016, Chavarria pled guilty to a felony information charging him with being a felon in possession of a firearm. Chavarria entered his guilty plea without the benefit of a plea agreement.
This case was investigated by the Las Cruces offices of the U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Matthew Beck of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Rochester Man Sentenced for Receipt of Child PornographyRead 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 Faycal Taouzinet, 28, of Rochester, NY, who was convicted of receipt of child pornography, was sentenced to five years in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that in June 2015, the mother of a 13-year-old minor advised the Rochester Police Department that her child was communicating with two men. According to the mother, one of the two men, Taouzinet, was a clerk at a local corner store. Officers reviewed the minor’s phone and uncovered texts between the minor and Taouzinet to include sexually explicit chats and chats where the minor had sent sexually explicit pictures to Taouzinet.
An officer, assuming the minor’s identity, engaged in texts with Taouzinet and arranged for a meeting to occur on June 22, 2015. The defendant did not show up at the arranged time but texted later and asked to meet. Taouzinet was observed by officers later that date and confronted and arrested.
The sentencing is the result of an investigation by the Federal Bureau of Investigation’s Child Exploitation Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen.
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Richmond Resident Sentenced to 12 Years’ Imprisonment for Filing Fraudulent Tax Returns and Appropriating Fraudulent and Stolen Treasury ChecksRead the Press Release
OAKLAND– Hugh Robinson was sentenced to 144 months in prison for his role in a conspiracy to commit theft of government property, announced United States Attorney Brian J. Stretch, Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf.
Robinson, 46, of San Pablo, Calif., was charged along with ten codefendants on November 5, 2015, in a 71-count indictment with conspiracy to commit theft of public money, theft of public money, wire fraud, and aggravated identity theft. On October 31, 2016, a jury convicted Robinson of all charges against him in the indictment. The sentence was handed down yesterday by the Honorable Jeffrey S. White, U.S. District Judge.
According to the indictment and evidence presented at trial, from at least August 21, 2013, through April 27, 2015, the defendants conspired with one another to commit the offenses against the United States charged in the indictment, which included theft of government money. The scheme involved obtaining the names of deceased individuals, filing false tax returns in the names of those individuals, obtaining false identifications, and illegally cashing U.S. Treasury checks.
Robinson, with the assistance of others, obtained names of deceased individuals for use in filing false tax returns. To obtain identities for use in the scheme, the defendants searched California death records and obtained the names and personal identifying information of deceased individuals. The defendants then used the identities obtained from the death records to electronically file false federal income tax returns and caused the returns to be filed in the name of the deceased individuals with the IRS. The returns falsely represented that the individuals earned wages or other income and that the individuals listed on the tax returns were entitled to tax refunds. Robinson and other individuals working with them also listed on the tax returns certain physical addresses to which the defendants had access, enabling the defendants to retrieve the refund checks.
Also described in the indictment and at trial is the process by which the defendants cashed the fraudulently obtained U.S. Treasury checks. The evidence established that a co-conspirator provided false and fraudulent California identification documents which was used to negotiate the U.S. Treasury checks. The false identifications contained the pictures of designated co-conspirators who would cash the checks. In addition, Robinson and others brought some of the checks to a Walmart store in Richmond, Calif., where other co-conspirators cashed the checks. According to the indictment, two of the coconspirators were Walmart employees who knew the checks belonged to others and the U.S. Treasury. Further, Robinson and his coconspirators obtained false identification documents that matched other names on the U.S. Treasury checks and negotiated those illegally-obtained checks at various other Walmart stores. According to the criminal complaint filed in the case, a search of the location where Robinson resided yielded $237,394 worth of uncashed U.S. Treasury checks.
U.S. Attorney Stretch and Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS–Criminal Investigation who conducted the investigation; as well as Assistant United States Attorneys Thomas Newman and Jose A. Olivera, and Trial Attorney Gregory Bernstein of the Justice Department Tax Division, who prosecuted the case.
Reno Man Sentenced to Prison for Making A Threat Against the President of the United StatesRead the Press Release
RENO, Nev. – A Reno man was sentenced today by U.S. District Judge Howard D. McKibben to 36 months in prison and three years of supervised release for making a threat against the President of the United States, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
“The U.S. Attorney’s Office takes all threats against the President of the United States seriously, and we will work with our law enforcement partners to bring those who make such threats to justice,” said U.S. Attorney Bogden.
Steven Eugene Ford, aka Job Ford, aka Eleazar Melchizedek, 51, was convicted by a jury on Nov. 16, 2016. He was charged by an indictment on March 9, 2016.
According to court documents, on or about March 1, 2016, Ford made a threat to take the life of the President of the United States. He told a White House telephone operator that “I’m going to kill that president. I hate him.” During an interview with law enforcement, Ford admitted to making the threats.
The case was investigated by the U.S. Secret Service; and prosecuted by Assistant U.S. Attorney Brian L. Sullivan.
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Puerto Rico Man Sentenced to 46 Months for Conspiracy to Possess Controlled Substance with Intent to DistributeRead the Press Release
St. Croix, USVI – District Court Judge Raymond L. Finch, on February 7, 2017, sentenced Carmelo Cruz-Velez, 52, of Puerto Rico, to 46 months in prison for conspiracy to possess a controlled substance with intent to distribute, United States Attorney Ronald W. Sharpe announced. Judge Finch also sentenced Cruz-Velez to five years of supervised release and ordered him to pay a fine of $2,000 along with a special assessment of $100.
Before October 21, 2014, Cruz-Velez and his co-conspirators agreed to import cocaine into St. Croix and deliver it to others. On October 21, 2014, his co-conspirators retrieved a mid-sea shipment of 71 kilograms of cocaine and brought it to St. Croix. Afterward, Cruz-Velez, knowing of the plan, took possession of the cocaine and delivered it to another individual for transshipment to Puerto Rico.
The case was investigated by the U.S. Drug Enforcement Administration and was prosecuted by Assistant U.S. Attorney Alphonso Andrews, Jr.