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Wednesday 7 December 2016
Two Albuquerque Residents Plead Guilty to Violating Federal Drug Trafficking LawsRead the Press Release
ALBUQUERQUE – Two Albuquerque residents pled guilty today to federal drug trafficking charges. Jovas Brown, 30, pled guilty to a federal methamphetamine trafficking charge and Desiree Otero, 23, pled guilty to a federal heroin trafficking charge.
Brown and Otero were arrested during an ATF-led investigation that resulted in the filing of 59 federal indictments and one federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. The investigation began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Brown and his co-defendant Brent Williams, 34, were arrested on July 6, 2016, on an indictment charging both with conspiracy and distribution of methamphetamine on May 16, 2016, distribution of crack cocaine on May 26, 2016, and Williams individually with distribution of methamphetamine on May 23, 2016 and June 7, 2016. During today’s change of plea hearing, Brown pled guilty to a felony information and admitted that on May 16, 2016, he distributed approximately 58.8 grams of methamphetamine.
Otero and her co-defendant Guajira Maya Lovato, 43, were charged by indictment on Aug. 9, 2016, with conspiracy to distribute heroin from July 20, 2016 through Aug. 9, 2016 and distribution of heroin on July 20, 2016. Today Otero pled guilty to possession of heroin with intent to distribute and admitted that on July 20, 2016, she distributed approximately 52 grams of heroin to an undercover law enforcement agent.
At sentencing, Brown and Otero each face a maximum penalty of 20 years in federal prison. They remain in custody pending sentencing hearings, which have yet to be scheduled.
To date, 16 of the 104 defendants charged as a result of the ATF investigation have entered guilty pleas. The remaining defendants, including Brown’s and Otero’s co-defendants, have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
These case were investigated by the Albuquerque offices of ATF and DEA. The case against Brown and Williams is being prosecuted by Assistant U.S. Attorneys David M. Walsh and Norman Cairns, and the case against Otero and Lovato is being prosecuted by Assistant U.S. Attorney Presiliano Torrez as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Truth or Consequences Man Sentenced to Prison for Violating Federal Narcotics Trafficking LawsRead the Press Release
ALBUQUERQUE – Thomas Kelsa Neal, 36, of Truth or Consequences, N.M., was sentenced yesterday in federal court in Las Cruces, N.M., to 100 months in prison followed by four years of supervised release for his conviction on a methamphetamine trafficking charge.
Neal was charged in a criminal complaint on Aug. 7, 2015, with possession of methamphetamine with intent to distribute in Sierra County, N.M., on Aug. 6, 2015. According to the complaint, law enforcement officers executed a search warrant at Neal’s residence where they seized approximately 438 grams of methamphetamine, large amounts of cash, drug paraphernalia, two rifles and ammunition.
On Oct. 27, 2015, Neal pled guilty to a felony information and admitted that on Aug. 6, 2015, he possessed approximately 438 grams of methamphetamine with intent to distribute to other people.
This case was investigated by the Las Cruces office of the DEA, the Sierra County Sheriff’s Office and the Truth or Consequences Police Department and is being prosecuted by Assistant U.S. Attorney Brock Taylor of the U.S. Attorney’s Las Cruces Branch Office.
Transient Man Sentenced for Failure to Register as Sex OffenderRead the Press Release
United States Attorney Deborah R. Gilg announced that Ozzie Scott., age 38, was sentenced by Chief United States District Court Judge Laurie Smith Camp for his conviction for failure to register as a sex offender. Scott was sentenced to 18 months of imprisonment to be followed by five years of supervised release.
Scott, a transient, was originally convicted of aggravated sexual assault of a child in Texas in 2003. In 2010, he was convicted in Texas of failure to register as a sex offender. In October of 2015, Scott came to Nebraska and began living with friends. However, he was subsequently kicked out of that residence and stayed at several different places in Omaha, but had no stable residence. During the time he was in Omaha, Scott failed to register as a sex offender with the Douglas County Sheriff’s Office.
This case was investigated by the United States Marshal’s Office.
Top Ship Engineers Receive Prison Sentences for Pollution Crimes and ObstructionRead the Press Release
Cassius Samson, 52, and Rustico Ignacio, 66, both of the Philippines, were sentenced today by U.S. District Judge Malcolm Howard for the Eastern District of North Carolina to serve jail time for obstructing a U.S. Coast Guard inspection that took place in July 2015 aboard the cargo ship Ocean Hope at the Port of Wilmington, North Carolina.
Samson was sentenced to a term of 12 months in prison followed by a year of supervised release and Ignacio to a term of nine months followed by a year of supervised release.
Ignacio was the chief engineer and Samson the second engineer of the Ocean Hope. In September 2016, both were convicted of conspiracy, violating the Act to Prevent Pollution from Ships, obstruction of justice and witness tampering, by a federal jury in Greenville, North Carolina. The evidence showed that Ignacio and Samson attempted to cover up the dumping of tons of oil sludge and machinery space bilge water into the ocean before the ship arrived in the United States. In addition, defendant Samson committed perjury at trial.
“These crewmembers egregiously violated U.S. and international pollution laws, obstructed justice and spoiled the marine waters upon which our planet and its marine life depend,” said Assistant Attorney General John C. Cruden of the Department of Justice’s Environment and Natural Resources Division. “This case shows that polluting the ocean with oily waste and sludge will land you in jail, and that we will aggressively prosecute these serious crimes.”
“Our office was pleased to partner with the Department of Justice’s Environment and Natural Resources Division in this significant case,” said U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina. “We will continue to vigorously enforce federal laws designed to prevent the pollution of the world’s oceans.”
Several lower-level engineering crewmembers testified at trial that Samson regularly ordered, with Ignacio’s knowledge and approval, the pumping of oily wastes into the ocean over a period of months. On at least two occasions, Samson ordered the connection of a bypass hose, or “magic pipe,” to pump tons of thick sludge directly overboard. Coast Guard inspectors and laboratory testing confirmed the presence of heavy oils in overboard discharge piping.
When the vessel arrived at the Port of Wilmington, the engineers ordered subordinates to lie to Coast Guard inspectors and to cover up evidence. Chief Engineer Ignacio presented inspectors with a doctored oil record book, in which false accountings of the ship’s production and disposal of oily wastes were recorded.
“The Coast Guard applauds the efforts of the Department of Justice and all parties involved in investigating this case,” said Coast Guard Rear Admiral Meredith Austin, commander, 5th Coast Guard District in Portsmouth, Virginia. “As an agency charged with the stewardship of the environment, we remain dedicated to detecting and preventing threats to the well-being of our nation's waters and marine resources.”
Also convicted at trial were Oceanic Illsabe Limited, the owner of the Ocean Hope, and Oceanfleet Shipping Limited, its managing operator. Both shipping companies are based out of Greece. Sentencing of the corporate defendants is scheduled for early January 2017.
This case was investigated by the U.S. Coast Guard Sector North Carolina, the Coast Guard Investigative Service and U.S. Coast Guard District Five. Civil Chief Norman Acker and Assistant U.S. Attorney Michael Anderson for the Eastern District of North Carolina provided additional expertise and assistance with the pretrial phase of the case. The attorneys prosecuting the case were Senior Trial Attorney Kenneth Nelson and Trial Attorney Brendan Selby, of the Department of Justice’s Environmental Crimes Section and Banu Rangarajan of the U.S. Attorney’s Office for the Eastern District of North Carolina.
Tony Torrez Arraigned on Federal Drug Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Tony Derrick Torrez, 33, of Albuquerque, N.M., was arraigned today in federal court on an indictment charging him with drug trafficking and firearms charges. Torrez waived a detention hearing and will remain in custody pending trial on the indictment, which has yet to be scheduled.
Torrez was charged in a federal criminal complaint in Oct. 2015, with possession of marijuana with intent to distribute and using and carrying firearms in relation to drug trafficking crimes. According to the complaint, Torrez committed these crimes on Oct. 21 and 22, 2015, in Bernalillo County, N.M. Torrez was subsequently charged in a five-count indictment with possessing marijuana with intent to distribute; maintaining a place for the purpose of distributing controlled substances; possession of cocaine, testosterone and its esters; possession of firearms and ammunition by an illegal drug user; and possessing firearms and ammunition in relation to a drug trafficking crime. Torrez allegedly committed these five crimes on Oct. 21, 2015, in Bernalillo County.
According to the criminal complaint, a federal investigation into Torrez began on Oct. 21, 2015, when the Albuquerque Police Department (APD) received a tip about a suspect who shot and killed a child during a road rage incident; the tipster provided a residential address for the suspect. Based on the tip, APD officers conducted surveillance at the residence where they observed a man, subsequently identified as Torrez, load items into a Toyota sedan. APD officers later conducted a traffic stop on the Toyota after a woman drove away from the residence in the Toyota. Shortly thereafter, APD officers conducted a traffic stop on a Lexus sedan that drove away from the residence and identified the driver as Torrez. APD sealed and towed the two vehicles to the APD Crime Lab.
The criminal complaint alleges that later on Oct. 21, 2015, APD executed a state search warrant at the aforementioned residence where they found shoe boxes containing U.S. currency, paraphernalia and other items consistent with the use of marijuana and a substance believed to be “wax,” a concentrated form of THC oil processed from the marijuana plant. Thereafter, the DEA executed a federal search at the residence and seized items and paraphernalia allegedly used for distributing marijuana and manufacturing THC “wax” and oil. DEA agents also seized the U.S. currency as well as documents and items allegedly confirming that Torrez resided at the residence.
On Oct. 22, 2015, DEA agents were present when state search warrants were executed on the Lexus and Toyota sedans. The Lexus allegedly contained a bag containing U.S. currency and a small amount of marijuana. The Toyota allegedly contained bags containing bulk marijuana and marijuana packaged for distribution, two revolvers, two assault rifles, ammunition, a bullet proof vest, a small amount of suspected cocaine, and drug paraphernalia. According to the criminal complaint, the U.S. currency seized from the residence and the Toyota totaled approximately $64,000.00.
If convicted on the charges in the indictment, Torrez faces the following statutory maximum penalties: five years in prison on the marijuana trafficking charge; 20 years in prison for maintaining drug-involved premises; one year in prison for possession of cocaine, testosterone and its esters; and ten years in federal prison for possession of firearms and ammunition by an illegal drug user. Torrez also faces a mandatory minimum of five years in prison if convicted of possessing a firearm in relation to a drug trafficking crime, which must be served consecutive to any other sentence imposed on the other charges.
Charges in criminal complaints and indictments are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque offices of the DEA and Bureau of Alcohol, Tobacco, Firearms and Explosives and APD, with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney Paul Mysliwiec is prosecuting the case.
Ten Men Face Dog Fighting and Narcotics ChargesRead the Press Release
WILMINGTON – The United States Attorney’s Office for the Eastern District of North Carolina announces that 10 North Carolina men were arrested yesterday and today in a coordinated law enforcement operation for allegedly engaging in illegal dog fighting and selling narcotics in the Onslow County area.
The following individuals were indicted in a 17-Count Indictment returned by a federal Grand Jury.
- Lewis Edmond Andrews, Jr., 41 of Maple Hill
- Ronnie Jeremy Thompson, 39 of Jacksonville
- William Jay Farrior, a/k/a “Bo”, 36 of Maple Hill
- Randall Jacob James, a/k/a “Slim”, 32 of Maple Hill
- Mark Anthony West, 52 of Jacksonville
- Leo Chadwick, 63 of Hubert
- Aaron Richardson, a/k/a “Jit”, 41 of Jacksonville
- Cedric Gerard Cook, 38 of Fayetteville
- James David Martin, 38 of Maple Hill
- James Leslie Golden, III, 46 of Ayden
Andrews, Thompson, West, Chadwick, Richardson, Cook, and Martin were charged with Conspiracy to Violate the Animal Welfare Act. The federal Animal Welfare Act makes it a felony punishable by up to five years in prison to fight dogs or to possess, train, sell, buy, deliver, receive or transport dogs intended for use in dog fighting.
According to the Indictment, as part of the conspiracy, the defendants and their co-conspirators purchased, received, bred, trained, conditioned, transported, and delivered dogs for the purpose of entering them in dog fights. The defendants and their co-conspirators placed bets on animal fighting ventures, sometimes wagering as much as $100,000 on a single fight. Golden was charged with a misdemeanor for attending two dog fights.
Andrews, Farrior, and James are charged with conspiracy to possess with intent to distribute cocaine, cocaine base (or “crack”), and heroin. West was also charged with distributing cocaine base (or “crack”) within one thousand feet of Jacksonville Senior High School in Jacksonville, North Carolina.
Upon the arrests of the defendants, search warrants were executed on four properties suspected of containing dogs and dog fighting paraphernalia. In that process, approximately 156 dogs were seized. The ASPCA® (American Society for the Prevention of Cruelty to Animals®) has been requested by authorities to take custody of and provide daily care for the dogs seized during the arrests at a temporary shelter in an undisclosed location. The ASPCA is also providing assistance with evidence collection and conducting forensic examinations of the dogs seized in the case.
The case is being investigated by the Federal Bureau of Investigation (FBI), Jacksonville Police Department, and Onslow County Sheriff’s Office. Additional assistance was provided by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Wilmington Police Department, New Hanover County Sheriff’s Office, North Carolina State Highway Patrol, North Carolina State Bureau of Investigation, the United States Department of Agriculture, and the Cumberland County Sheriff’s Office. Assistant United States Attorney Laura Howard is prosecuting the case for the government.
The charges and allegations contained in the Indictment are merely accusations. The defendants are considered innocent unless and until proven guilty in a court of law.
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News releases are available on the U. S. Attorney’s web page at www.usdoj.gov/usao/nce within 48 hours of release.
Tampa Sex Offender Sentenced to 20 Years in PrisonRead the Press Release
Tampa, Florida – Chief U.S. District Judge Steven D. Merryday has sentenced Windell Holton (68, Tampa) to 20 years in federal prison for attempted enticement of a minor to engage in sexual activity, and commission of the offense as a sex-offender. The Court ordered him to forfeit a cellphone and computer that he used commit the offense. Holton pleaded guilty on August 16, 2016.
According to court documents, Holton contacted an individual online who he believed to be a 13-year-old girl and asked her to engage in sexual intercourse with him. In reality, he was communicating with an undercover federal agent. Holton had previously been convicted of attempted sexual battery in Florida.
“Thanks to the tireless efforts of our HSI special agents, this sexual predator will now be behind bars where he cannot hurt another child,” said Susan L. McCormick, special agent in charge of HSI Tampa. “HSI will continue to use our unique investigative techniques to ensure criminals like this are held accountable for their actions.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Gregory T. Nolan.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Tampa Area Resident Indicted for Threatening Sandy Hook ParentRead the Press Release
A Tampa resident is indicted for threatening a Sandy Hook parent residing in the Southern District of Florida.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Lucy Richards, 57, of Tampa, was indicted in the Southern District of Florida (Case No. 16-CR-80206) on four counts of transmitting threats in interstate commerce, in violation of Title 18, United States Code, Section 875(c). If convicted, each count carries a maximum term of five years’ imprisonment. Richards was arrested on December 5, 2016 and made her initial appearance before United States Magistrate Judge Mark Pizzo in the Middle District of Florida. Richard is scheduled for an initial appearance in Fort Lauderdale on December 19, 2016.
On December 14, 2012, the Sandy Hook School shooting occurred in Newtown, Connecticut, and resulted in the death of 20 children and 6 adults. According to the court record in this case, including allegations made at the initial hearing, on or about January 10, 2016, Richards made a series of death threats to a parent of a child killed in the Sandy Hook School shooting. The parent resides in South Florida. Richards’ believed that the school shooting was a hoax and never happened allegedly motivated her to make the charged threats.
Mr. Ferrer commended the outstanding investigative efforts of the FBI. Mr. Ferrer also thanked the U.S. Attorney’s Office for the Middle District of Florida for their assistance. The case is being prosecuted in the Southern District of Florida by Assistant United States Attorney Karen E. Gilbert.
An indictment contains mere allegations and a defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Surinamese Man Sentenced in Manhattan Federal Court to More Than 11 Years in Prison for Conspiring to Import CocaineRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that EDMUND QUINCY MUNTSLAG, a citizen of Suriname, was sentenced yesterday in Manhattan federal court to 135 months in prison for conspiring to import cocaine into the United States. MUNTSLAG was convicted on March 22, 2016, after a four-day jury trial before former U.S. District Judge Shira A. Scheindlin. Sentence was imposed yesterday by U.S. District Judge Alison J. Nathan.
Manhattan U.S. Attorney Preet Bharara said: “Edmund Muntslag conspired to create a drug route for hundreds of kilograms of cocaine from his home country of Suriname to the streets of New York City. Thanks to the outstanding work of the Drug Enforcement Administration, Muntslag will join co-defendant Dino Bouterse in serving a long sentence in a federal prison.”
According to the allegations contained in the Indictment, other documents publicly filed in Manhattan federal court, and the evidence introduced at trial:
In 2013, MUNSTLAG, along with co-defendant Dino Bouterse, the son of the President of Suriname who declared himself the head of that country’s Counterterrorism Unit, conspired to sell hundreds of kilograms of cocaine to a purported Mexican cartel for importation to the U.S. In furtherance of this conspiracy, Bouterse supplied to individuals that he and MUNTSLAG believed to be representatives of the cartel, but who in fact were confidential sources working at the direction and under the supervision of the Drug Enforcement Administration (“DEA”), with genuine Surinamese passports bearing false identification information.
Approximately three weeks later, MUNTSLAG received $60,000 in cash as a payment to allow a 10-kilogram “test load” of cocaine to pass through the airport in Paramaribo, Suriname, where it was to be loaded onto a commercial airline flight concealed inside luggage. Thereafter, MUNTSLAG worked with corrupt airport employees in Suriname to send the 10-kilogram test load to Port-of-Spain, Trinidad and Tobago, from where MUNTSLAG and Bouterse believed it would be further transported and sold by the purported cartel in New York, New York. MUNTSLAG and Bouterse expected to receive proceeds from the sale of the cocaine in New York, and also expected to send additional, 100-kilogram cocaine shipments to the purported cartel using a similar method upon the successful completion of the test load.
The cocaine was seized by Trinidadian law enforcement officers, in coordination with agents of the DEA, in Port-of-Spain on July 27, 2013. MUNTSLAG was arrested in Port-of-Spain on August 29, 2013, and Bouterse was arrested in Panama City, Panama, on August 29, 2013.
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MUNTSLAG was convicted of conspiring to import five kilograms and more of cocaine into the United States. In addition to his prison term, MUNTSLAG, 33, of Suriname, was ordered to pay a $100 special assessment.
On August 29, 2014, Bouterse, 43, also of Suriname, pled guilty to attempting to provide material support to Hezbollah, a Foreign Terrorist Organization; using and carrying a firearm or during and in relation to a drug-trafficking crime; and conspiring to import five kilograms and more of cocaine into the United States. On March 10, 2015, Bouterse was sentenced principally to a term of 195 months in prison.
Mr. Bharara praised the outstanding efforts of the Special Operations Division of the DEA. Mr. Bharara also thanked the DEA’s Miami Field Division, Panama City Country Office, Port-of-Spain Country Office, and Bogota Country Office; the Government of Trinidad and Tobago; and the U.S. Department of Justice’s Office of International Affairs.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Michael D. Lockard and Andrew DeFilippis are in charge of the prosecution.
Stroudsburg Man Pleads Guilty to Heroin TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a James King, age 48, of Stroudsburg, Pennsylvania, pleaded guilty today to possession with intent to distribute heroin, before Senior U.S. District Court Judge A. Richard Caputo in Wilkes-Barre.
According to United States Attorney Bruce D. Brandler, the defendant, James King, admitted to possessing with the intent to distribute approximately 60 grams of heroin which is the equivalent of 2,000 retail bags of heroin. The heroin was found in his vehicle and residence in September of 2016.
According to the terms of the plea agreement, both the government and the defendant have agreed to recommend to the court that King be sentenced to 14 years in prison. Judge Caputo scheduled sentencing for April 17, 2017.
King was indicted by a federal grand jury in Scranton in October 2016, as a result of an investigation by the Drug Enforcement Administration and the Stroud Area Regional Police Department. Assistant U.S. Attorney Francis P. Sempa 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.
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 20 years’ 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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Stoughton Man Sentenced for Serial Bomb ThreatsRead the Press Release
BOSTON – A Stoughton man was sentenced today in U.S. District Court in Boston for emailing bomb threats to multiple schools and universities in three different states.
Anthony Rae, 25, was sentenced by U.S. District Court Judge Indira Talwani to time served, approximately 17 months, in prison and three years of supervised release. In October 2016, he pleaded guilty to five counts of sending bomb threats.
Over the course of nine months, Rae used several different email accounts to send bomb threats to educational institutions in three different states. In October 2014 Rae sent two emails from a Gmail account he created threatening to bomb an elementary school in Chicago, Ill., and several public schools in Norwood, Mass. Subsequently, Rae hacked his mother’s Hotmail account and used it to send two separate bomb threats to his own school – ITT Technical Institute in Norwood.
In June 2015, law enforcement officers obtained a search warrant for Rae’s residence and seized numerous electronic devices. The following day, Rae used a computer available to tenants in his apartment complex to send a bomb threat to Rhode Island College in Providence. On June 19, 2015, he was arrested and charged in state court for the Massachusetts’ threats and in October 2015, Rae was charged federally.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. This case was also investigated by the Chicago Police Department’s Arson Section, Norwood and Stoughton Police Departments, Rhode Island State Police Computer Crimes Unit, and the Rhode Island College and North Carolina State University Campus Police Departments. Significant assistance was also provided by the Massachusetts Metropolitan Law Enforcement Council’s Cyber Crimes Unit and the Norfolk District Attorney’s Office. Assistant United States Attorney Jordi de Llano of Ortiz’s Criminal Division prosecuted the case.
South Miami Hospital Agrees to Pay the United States $12 Million to Settle False Claims Act AllegationsRead the Press Release
South Miami Hospital, a not-for-profit regional hospital located in South Miami, Florida has agreed to pay the United States approximately $12 million to settle allegations that it violated the False Claims Act by submitting false claims to federal healthcare programs for medically unnecessary electrophysiology studies and other procedures allegedly performed by John R. Dylewski, M.D., at South Miami Hospital.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Miami Region, John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Southeast Field Office, and Scott Rezendes, Special Agent in Charge, Office of Personnel Management, Office of Inspector General (OPM-OIG), made the announcement.
“This settlement shows our continued resolve to pursue institutional providers who turn a blind eye to the systematic overutilization of medical procedures and inflated billing practices resulting in significantly increased costs to the federal government,” said Wifredo A. Ferrer, United States Attorney for the Southern District of Florida.
“This settlement highlights the commitment of the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to protect the integrity of the Department of Defense (DoD) health care program known as TRICARE,” said DCIS Special Agent in Charge John F. Khin. “DCIS aggressively investigates health care providers that defraud the DoD, to preserve American taxpayer dollars intended to care for our warfighters, their family members, and military retirees.”
“Performing medically unnecessary heart procedures is shocking to the conscience,” said Shimon R. Richmond, HHS-OIG Miami Special Agent in Charge. “Conducting cardiac catheterizations purely for profit, not patient care, seriously breaches the “do no harm” commitment physicians pledge. Together with our law enforcement partners, we will seek out, stop these practices and protect the Medicare patients who are victimized by physicians participating in these schemes.”
“It is absolutely unconscionable that anyone in the medical profession would place profit above a patient’s health and well-being,” said OPM-OIG Special Agent in Charge Rezendes. “We remain firmly committed to ensuring that Federal employees, annuitants, and their families are protected and that such unscrupulous behavior is identified and stopped.”
The allegations arose from a lawsuit filed by two whistleblowers, James A. Burks, M.D., and James D. Davenport, M.D., under the qui tam provisions of the False Claims Act. Relator Burks is a board-certified vascular surgeon and medical doctor who began his practice as a vascular surgeon at South Miami Hospital in 2003. Relator Davenport is a board-certified cardiologist and medical doctor, who was an active member of various peer review committees at South Miami Hospital between 2010 and 2014. Under the False Claims Act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. Drs. Burks and Davenport will receive approximately $ 2,748,500 from the recovery announced today.
According to court documents, plaintiffs claimed to have personal knowledge of Dr. Dylewski and South Miami Hospital engaging in a number of unnecessary cardiac procedures, including echocardiograms, electrophysiology studies, head upright tilt tests, and other treatments of arrhythmia by ablation, cryoablation, or implantation of an electronic device, for the sole purpose of increasing the amount of physician and hospital reimbursements paid by Medicare and other federally-funded programs.
The settlement was the result of a coordinated effort by the United States Attorney’s Office for the Southern District of Florida, HHS-OIG, DCIS, and OPM-OIG. The case was investigated and the settlement negotiated by Assistant U.S. Attorney John C. Spaccarotella.
The case is captioned United States of America ex. rel. James A. Burks, M.D. and James D. Davenport, M.D. v. John R. Dylewski, M.D., et al., Case No. 14-CV-22079 (S.D. Fla.). The claims settled by the lawsuit are allegations only, and there has been no determination of liability.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Shreveport man sentenced to 14 years in prison for selling methamphetamine at casinoRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Shreveport man was sentenced to 168 months in prison Tuesday for selling methamphetamine while staying at a Bossier City casino.
Kenvalleno Dixon, 33, of Shreveport, was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of distribution of methamphetamine. He was also sentenced to five years of supervised release. According to the July 11, 2016 guilty plea, Dixon was identified as a seller in a methamphetamine trafficking enterprise at a Bossier City, La., casino. Dixon was observed on June 25, 2015 meeting someone in the lobby of the casino and then bringing the person up to a room on the ninth floor where Dixon sold 26.6 grams of methamphetamine for $900. Dixon was not an employee of the casino.
The DEA conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
San Jose Gang Member Sentenced to 19 Years in Prison for Trafficking Crystal Methamphetamine and Possessing GunsRead the Press Release
SAN JOSE – Eduardo Arriaga, AKA “Moreno,” was sentenced yesterday to 228 months (19 years) in prison for trafficking crystal methamphetamine and using a firearm during his narcotics trafficking operation, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The sentence was imposed by the Honorable Edward J. Davila, U.S. District Judge, after a federal jury convicted Arriaga in December 2015 of the methamphetamine distribution and firearms charges.
Arriaga, 41, of San Jose, was the eighth defendant sentenced in a proactive operation by the FBI’s Santa Clara County Violent Gang Task Force targeting gang members selling methamphetamine in Santa Clara County. According to the evidence presented at trial, Arriaga has been a Sureño gang member for over 20 years. On April 29, 2012, Arriaga possessed a pound of crystal methamphetamine and sold a half-ounce of it to a confidential informant working for the FBI. Arriaga, believing the confidential informant was a Sureño gang member from Southern California, conducted the drug deal out of his garage in San Jose while armed with a handgun. Approximately two months later, in the same garage, the confidential informant witnessed Arriaga with approximately a half-pound of additional crystal methamphetamine and saw Arriaga sell a portion of the methamphetamine to another Sureño gang member. During that drug deal, Arriaga had two different handguns in his garage.
Arriaga was indicted on July 31, 2013, and charged with one count of distributing methamphetamine, in violation of 21 U.S.C. § 841, and one count of possessing firearms in furtherance of his drug trafficking activities, in violation of 18 U.S.C. § 924(c). After a one-week trial, a jury convicted him of both counts. In reaching its verdict, the jury found that Arriaga possessed 50 grams or more of crystal methamphetamine with the intent to distribute it.
In addition to Arriaga’s prison term, Judge Davila imposed a five-year term of supervised release and a $200 special assessment.
Arriaga’s indictment was part of the FBI’s crackdown on Sureño gangs in Santa Clara County. The FBI’s investigation into these gangs culminated in eight separate indictments alleging the distribution and conspiracy to distribute methamphetamine throughout Santa Clara County. The defendants charged in the crackdown include the following: (1) the reputed “matriarch,” of 8th Street Gilroy (Maria Salinas); (2) the co-conspirator mother and daughter combination associated with the Sureño gang “Varrio Sur Town” (Laura Garcia and Vanessa Pulido), and (3) known members of the Sureño gangs “Colonias,” “Varrio Mexicanos Locos,” “Poco Way,” and “Varrio Paisanos Locos.” The status of the matters against these additional defendants is as follows:
Defendant
Charges
Docket Number
Sentence
LAURA GARCIA
a/k/a “Blinky”
Distribution of Methamphetamine and Conspiracy to Distribute Methamphetamine
CR 13-00508 LHK
9/24/14
65 months
VANESSA PULIDO
a/k/a “Bunny”
Distribution of Methamphetamine and Conspiracy to Distribute Methamphetamine
CR 13-00508 LHK
12/9/14
24 months home detention
RAFAEL MEDINA
a/k/a “Conejo”
Distribution and Conspiracy to Distribute Methamphetamine
CR 13-00507 LHK
10/22/14
75 months
RAUL VALLE MORFIN a/k/a “Green Eyes”
Distribution of Methamphetamine
CR 13-00509 DLJ
6/19/14
78 months
JESUS QUINONES
a/k/a “Canas”
Distribution of Methamphetamine
CR 13-00503 DLJ
10/9/14
60 months
JAIRO QUINTANA
a/k/a “Hido”
Distribution of Methamphetamine and Conspiracy to Distribute Methamphetamine
CR 13-00506 LHK
7/23/14
70 months
MARIA SALINAS
a/k/a “Grumpy”
Distribution of Methamphetamine
CR 13-00504 LHK
6/4/14
26 months
Assistant United States Attorneys Marissa Harris and Stephen Meyer prosecuted the case with the assistance of Nina Burney, and Ryka Barghi. The case is the result of an investigation by the FBI.
Ravenna Man Sentenced to 11 Years for Receiving Child PornographyRead the Press Release
Jason Nielson, 23, of Ravenna, Nebraska, was sentenced in federal court in Lincoln for receiving child pornography. The Honorable John M. Gerrard, United States District Court Judge, sentenced Nielson to 11 years of imprisonment. There is no parole in the federal system. After his release from prison, Nielson will begin a 12-year term of supervised release.
After his release from the Nebraska Penitentiary, Nielson began a Facebook and texting relationship with a 14-year-old girl. The girl was known to him through an acquaintance. On February 8, 2015, Nielson sent the minor an inappropriate picture. The minor reciprocated by sending him a sexually explicit photo. He then asked for and received another.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Nebraska State Patrol.
Probation Technician Sentenced to PrisonRead the Press Release
United States Attorney Deborah R. Gilg announced that on December 7, 2016, Senior United States District Judge Richard G. Kopf sentenced Victor Ramirez, 25, of Lexington, Nebraska, to 18 months in federal prison for the felony offense of taking bribes to engage in certain actions connected with his state employment. Upon his release from prison, Ramirez will serve two years on supervised release.
Victor Ramirez was a drug technician for the Nebraska State Probation Office in Lexington, Nebraska. Between August 25, 2015, and December 16, 2015, he received approximately $2,000 - $2,400 from an offender who was on probation and being supervised by the Lexington state probation office. In return for the money Ramirez provided the offender with information, and falsified drug test results. The offender and Ramirez were life-long friends, and on several occasions Ramirez reported that the offender had passed a drug screening test when in fact no such test had been administered. On several other occasions Ramirez supplied information to the offender regarding whether other persons were the subject of state criminal investigations, and information pertaining to how other persons had posted bond to be released from jail.
This case was investigated by the Nebraska State Patrol and the Federal Bureau of Investigation.
Press Notice -“Home Front”: 7th Circuit Solicitor Barry Barnette launches a multi-disciplinary task force to take on domestic violenceRead the Press Release
Contact Person: Lance Crick (864) 282-2100
SPARTANBURG, South Carolina ---- In a courtroom filled with local, state, and federal law enforcement, as well as representatives from SAFE Homes and State Probation, 7TH Circuit Solicitor Barry Barnette, with the support and partnership of the U.S. Attorney’s Office, officially launched the state’s newest and, to date, its only focused deterrence-based effort to combat domestic violence, “Home Front”.
Modelled after a program started in High Point, NC, members of the Home Front task force began earlier this fall, meeting with representatives from every police department in Spartanburg county as well as the Sheriff’s Office. The Spartanburg County State Probation office and victim’s advocate stalwart, SAFE Homes, also serve as critical partners in this effort.
Under the guidance of Solicitor Barnette and High Point (NC) Chief Marty Sumner, Home Front has quickly gone from concept to reality. High Point’s model and research suggests that early intervention is key in stopping the cycle of violence.
The Home Front strategy identifies and focuses on offenders at the earliest stages of offending, before their violent conduct is entrenched and escalating.
According to the Center for Disease Control and Prevention, domestic violence is a community crime problem that costs the United States over $5.8 billion every year. It is a major drain on law enforcement resources as domestic violence generates a high volume of calls and repeated calls to the same location. Domestic violence homicides make up 40–50 percent of all murders of women in the United States. Women who have experienced a history of domestic violence report more health problems than other women and they have a greater risk for substance abuse, unemployment, alcoholism, and suicide attempts.
Research shows that the repeat domestic violence offender tends to have a significant criminal history that includes a wide range of both domestic violence and non-domestic violence offenses. Most of these offenders are readily identified as they are known to the criminal justice system. The Home Front initiative exposes the repeat domestic violence offender to sanctions because of his pattern of criminal behavior.
According to the 2015 Violence Policy Center When Men Murder Women report, South Carolina led the nation in rates of women murdered by men. Sixty-six percent (66%) of the victims were killed with a firearm and ninety-six percent (96%) of women murdered were killed by someone they knew.
In Spartanburg County during the 2015 calendar year, SAFE Homes serviced 6726 victims of domestic violence. In the same time frame, the Spartanburg Police Department charged 907 domestic violence cases and the Spartanburg County Sheriff’s Office charged 1068 domestic violence cases. There were fourteen (14) domestic related deaths in Spartanburg County in 2015.
Solicitor Barnette has had enough. “Domestic violence is violence, period. It continues to plague our community--so costly and harmful to families and children, persisting year after year. It is time for these offenders to get our best shot—our best efforts. That is Home Front.”
Acting United States Attorney Beth Drake agrees. “The U.S. Attorney’s Office and the Bureau of Alcohol, Tobacco and Firearms welcome the opportunity to partner with Solicitor Barnette and state law enforcement, and to use federal gun laws to pull violent offenders who are abusing their families and loved ones out of the community. The goal is simple – stop the abuse, or swift and sure, the full force of a coordinated law enforcement effort will come to bear to stop you from abusing. Home Front takes the burden of addressing abusers from the victims and shifts it to us – a very engaged group of local, state, and federal law enforcement.”
The Home Front task force began a thorough, eight-step implementation process in the fall. The steps included training officers, synchronizing the coding of calls among the law enforcement agencies to harmonize communication--to create a back stop of sorts so that no domestic calls or offenders slip through the cracks among the sixteen municipal law enforcement entities in Spartanburg County. Very early in the implementation process, the task force began creating a comprehensive list of domestic violence offenders from the previous twelve months of arrests in Spartanburg County for domestic-related incidents. Offenders were categorized from most dangerous (Class A), repeat offender (Class B), first time DV arrest (Class C), and any non-arrest domestic violence interface with law enforcement (Class D).
For the most serious or repeat offenders, pending cases are fast-tracked to ATF and the US Attorney’s Office for immediate federal prosecution or prioritized for expedited state prosecution. This process includes creating an enhanced system of tracking for offenders who are notified at any level or category. Custom notification letters, hand-delivered by law enforcement to offenders within 48 hours of the initial law enforcement contact, serve to alert offenders that they are on the Home Front radar going forward as well as detailing presumptive sentences for future acts of violence or prohibited behavior.
Solicitor Barnette is optimistic about the collaboration and is confident the focus and dedication of this task force will not waiver. “Securing our communities and ensuring that victims and children can feel safe in their own homes—breaking this horrific cycle of violence, that is our charge.”
Home Front Task Force:
City of Spartanburg Police Department
City of Campobello
City of Pacolet Police Department
City of Chesnee Police Department
City of Cowpens Police Department
City of Duncan Police Department
City of Greer Police Department
City of Inman Police Department
City of Landrum Police Department
City of Lyman Police Department
City of Wellford Police Department
City of Woodruff Police Department
Spartanburg County Sheriff’s Office
Greenville-Spartanburg International Airport Police Department
Victim Advocates
Victim Services Providers
Behavioral Health
SC Dept. of Probation, Pardon and Parole Services
U. S. Attorney's Office, District of South Carolina
Bureau of Alcohol, Tobacco and Firearms
Seventh Circuit Solicitor’s Office
SAFE Homes
Children’s Advocacy Center of Spartanburg, Cherokee, & Union
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Portsmouth Man Sentenced to 9 Years for Distributing Child PornographyRead the Press Release
NORFOLK, Va. – Joseph Downing Barnes Jr., 26, of Portsmouth, was sentenced today to 108 months in prison for distribution of child pornography, as well as 25 years of supervised release.
Barnes pleaded guilty on August 31. According to court documents, Barnes was arrested on August 3, for trading child pornography on the internet. In October 2015, Justin Clark was arrested for trading child pornography using the KIK application on his phone. The forensic examination of Clark’s cell phone revealed he regularly traded child pornography with others using KIK, including Barnes. During the investigation of Barnes, his phone was seized and revealed 74 videos and four images of child pornography. In addition to the phone and the email account, his other online accounts contained images of child pornography. Clark was sentenced separately to six years in prison.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, made the announcement after sentencing by U.S. Chief Judge Rebecca Beach Smith. Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case.
This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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. 2:16-cr-120.
Pocatello Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
BOISE - Corry Blackmoon Bischoff, 39, of Pocatello, Idaho, was sentenced yesterday in United States District Court to 33 months in prison followed by 5 years of supervised release for failing to register as a sex offender, U.S. Attorney Wendy J. Olson announced. Bischoff pleaded guilty on September 13, 2016.
According to the plea agreement, Bischoff was convicted of rape in Madison County, Idaho in 1997. As a result of the conviction, Bischoff was required to register and update his registration under the Sex Offender Registration and Notification Act (SORNA). Bischoff last registered as a sex offender in Idaho in August of 2013. In September of 2013, the State of Idaho Commissions of Pardons and Parole issued a warrant for Bischoff’s arrest for violating his parole conditions. On January 4, 2016, officers with the Vancouver, Washington police arrested Bischoff on the State of Idaho parole warrant. Bischoff had not updated his registry in Idaho prior to moving to Washington, and had not registered as a sex offender in the State of Washington.
The case was investigated by the United States Marshals Service (USMS), and the Idaho Department of Correction, Bureau of Probation and Parole.
Panamanian National Sentenced for False Statement in a Passport Application and Reentry of Removed AlienRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CAROL JOHN, a/k/a INES ISABEL RUIZ, a/k/a CAROL ATKINS (JOHN), age 56, a citizen of Panama, was sentenced after previously pleading guilty to a two-count Indictment for making a false statement in an application for a U.S. passport and reentry of a removed alien.
U.S. District Judge Ivan L.R. Lemelle sentenced JOHN to time served. JOHN was also sentenced to 2 years of supervised release, and a $200 special assessment. JOHN will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court records, on or about March 4, 2016, JOHN submitted a false passport application using a fraudulent birth certificate. Further, JOHN was found in the United States after having been officially deported. She was ordered removed and deported on or about May 24, 1996, after having been convicted of a felony drug offense.
U.S. Attorney Polite praised the work of the United States Diplomatic Security Service in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
Old Saybrook Resident Charged with Additional Tax CrimesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that a federal grand jury in New Haven has returned a six-count superseding indictment charging DAVID ADAMS, 56, of Old Saybrook, with additional tax offenses.
On May 3, 2016, the grand jury returned an indictment charging ADAMS with one count of tax evasion and one count of filing a false tax return for the 2011 tax year. The superseding indictment, which was returned yesterday, charges ADAMS with filing a false tax return for the 2009 tax year, filing a false tax return and tax evasion for the 2011 tax year, filing a false tax return and tax evasion for the 2012 tax year, and attempting to interfere with the administration of the tax laws.
As alleged in the superseding indictment, in the early 1980s, and then continuing from 1996 onward, ADAMS was substantially delinquent in filing his tax returns and paying amounts owed to the IRS. Starting at least as early as 1998, ADAMS repeatedly engaged with IRS collections officers tasked with trying to get ADAMS into compliance with the tax laws. Although he was repeatedly advised by IRS collections officers about his obligations to pay estimated taxes, ADAMS continually failed to pay those taxes on time or in sufficient amounts.
The indictment further alleges that ADAMS sold an online floral business in 2002, which accounted for a significant portion of $6,269,960 in taxable income he claimed on his 2002 tax return. Although ADAMS represented to the IRS in August 2003 that he was enclosing payment of $1,250,000, no such payment was enclosed and ADAMS never made the payment.
It is further alleged that ADAMS engaged the services of a certified public accountant to prepare his personal tax returns beginning in approximately 1993, and then repeatedly failed to give the accountant complete, accurate information. For example, for the 2009 tax year, ADAMS told his accountant that he had made $550,000 in estimated tax payments when, in fact, ADAMS knew he had only paid $425,000. Similarly, in 2011, ADAMS told his accountant that he had made $220,000 in estimated tax payments, but knew that he had only made $100,000.
The indictment further alleges that, in June 2011, ADAMS sold his partnership interest in another online floral business and received $4,708,419.20 wired into his personal bank account as part of the net proceeds owed to him as a result of the sale. Although he knew that he owed substantial taxes on that amount, ADAMS engaged in a number of affirmative acts to conceal and attempt to conceal this income in order to evade the assessment of a tax including: (1) failing to tell his accountant about the $4,708,419.20 in income ADAMS received in 2011; (2) providing the accountant with false information about ADAMS’s estimated tax payments for the year, telling the accountant that he had paid $220,000 when in fact, ADAMS knew he had only paid $100,000 in estimated taxes for 2011; (3) causing the accountant to prepare his 2011 tax return with false and fraudulent information; and (4) representing to an IRS revenue officer who was responsible for collecting ADAMS’s delinquent tax payments and securing ADAMS’s overdue tax returns, that he had hoped to have funds to pay down his back tax liability (including tax liability associated with the 2002 sale), but that nothing had been “panning out.” ADAMS failed to disclose to the revenue officer that he had received $4,708,419.20 in cash less than three weeks earlier.
It is alleged that, in June 2012, ADAMS received an additional $1,320,609.59 into his personal bank account as net proceeds of the 2011 sale. Although he knew that he owed substantial taxes on that amount, ADAMS failed to disclose the income to his accountant, and failed to declare it on his tax return for that year.
As further alleged in the superseding indictment, ADAMS engaged in a more than 16-year effort to inhibit the IRS’s efforts to collect back taxes from him. Among other things, ADAMS bounced checks to the IRS; told IRS collections officers that payment had been sent when it had not; promised to pay delinquent tax liabilities in full and then delayed payment, made only partial payment, failed to pay at all, or paid off one liability while leaving another liability unpaid; claimed that he lacked funds to pay his delinquent tax but failed to disclose that he had access to enough cash to fully pay back his tax liabilities; filed false and fraudulent returns with the IRS; overstated the amounts of estimated taxes paid to the IRS, and failed to declare more than $6 million in income to the IRS.
The indictment charges ADAMS with two counts of tax evasion, three counts of making and subscribing a false tax return, and one count of attempting to interfere with the administration of the IRS laws. Each tax evasion offense carries a maximum term of imprisonment of five years, each count of filing a false tax return carries a maximum term of imprisonment three years, and the interference charge carries a maximum term of imprisonment of three years.
ADAMS was arrested on a federal criminal complaint on April 14, 2016, and is released on a $500,000 bond secured by real property.
As of May 2016, ADAMS owed approximately $4.6 million in back taxes, interest and penalties for tax years 2002, 2006, 2007, 2008, 2009, 2011, and 2012. Interest and penalties have continued to accrue since that time.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter has been investigated by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Susan L. Wines.
Novato Man Sentenced to 84 Months’ Imprisonment for Receiving Child PornographyRead the Press Release
SAN FRANCISCO – Patrick Harvey was sentenced today to 84 months in prison for receiving child pornography announced United States Attorney Brian J. Stretch and Federal Bureau of Investigations Special Agent in Charge John F. Bennett.
Harvey, 30, of Novato, Calif., pleaded guilty on September 14, 2016, to receipt of visual depictions of minors engaging in sexually explicit conduct. In July 2014, Harvey used Facebook to contact a girl he eventually learned was fifteen years old at that time, and he persuaded her to create sexually explicit images of herself and send them to him. Harvey saved the images on his cell phone. Moreover, Harvey possessed more than 500 sexually explicit files of minors to include videos and images, some of which included depictions of pre-pubescent minors under the age of 12. Harvey also sent images of child pornography to another individual via text message.
A federal grand jury indicted Harvey on December 1, 2015, charging him with possession of child pornography, in violation of 18 U.S.C. § 2252; receipt of child pornography, in violation of 18 U.S.C. § 2251; and distribution of child pornography, in violation of 18 U.S.C. § 2252. Harvey pleaded guilty to the receipt charge.
The sentence was handed down by the Honorable Maxine M. Chesney, U.S. District Judge. In addition to the prison term, Harvey was ordered to serve a ten-year period of supervised release, including conditions prohibiting his use of computers and Internet, prohibiting him from frequenting locations where children may be present, and requiring him to submit to searches upon request of law enforcement, among other conditions. Harvey will begin serving the sentence immediately.
Assistant U.S. Attorney Sarah Hawkins is prosecuting the case with the assistance of Maria Sunga. The prosecution is the result of an investigation by the FBI.
North Platte Man Sentenced to 9 Years for Distributing Child PornographyRead the Press Release
William L. Jones, 31, of North Platte, Nebraska, was sentenced in federal court in Lincoln for conspiring to distribute child pornography. The Honorable Richard G. Kopf, Senior United States District Court Judge, sentenced Jones to 9 years of imprisonment. There is no parole in the federal system. After his release from prison, Jones will begin a ten-year term of supervised release.
Jones’s girlfriend, Rayanne Paulman, sent a number of sexually explicit images of prepubescent children over Facebook messenger to Jones. A search warrant was executed at their residence on December 11, 2015. Forensic analysis of the digital devices revealed six videos of child pornography. Some of these images had been distributed between Jones and Paulman. In addition to the images, text messages were exchanged. Those messages involved discussions about the child pornography and other messages discussed certain children known to the two of them that they could sexually abuse. Paulman was sentenced on October 13, 2016. She also received a sentence of 9 years and 10 years of supervised release.
This case was investigated by the North Platte Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Norteno Gang Members Sentenced to Federal PrisonRead the Press Release
BOISE – Mateo Salome Espinoza, 20, of Nampa, Idaho was sentenced to 51 months in federal prison yesterday for the crime of unlawful possession of ammunition, U.S. Attorney Wendy J. Olson announced. Following his term of imprisonment, he will have to serve three years of supervised release. A federal grand jury indicted Espinoza and his brother Juan on April 12, 2016.
According to the plea agreement, on February 4, 2016, officers conducted a probation search of Juan and Mateo Espinoza’s residence in Nampa, Idaho. Juan Espinoza had posted several photographs and videos on Facebook of himself around firearms. Both Juan and Mateo Espinoza were on felony probation and prohibited from possessing firearms and ammunition. Mateo Espinoza had been convicted in Canyon County for the crime of aggravated assault and Juan Espinoza had been previously convicted of burglary. Inside the residence, officers found ammunition in each man’s bedroom. During the search, Mateo arrived at the residence and was arrested on an outstanding Canyon County warrant. He was searched and two hypodermic needles were found in his pockets. His cell phone was also searched and numerous text messages were found showing that he had recently been trying to sell a 45 caliber firearm. Both men admitted to possessing the ammunition found inside their bedrooms. Juan Espinoza entered a guilty plea on August 2, 2016 and was sentenced to 30 months in prison on October 19, 2016.
This case is the result of a joint investigation by the Treasure Valley Metro Violent Crime Task Force, the Organized Crime and Drug Enforcement Task Force (OCDETF) and the Nampa Police Department. The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
This case was being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Nine More Defendants Indicted for $1 Million Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that nine more defendants have been indicted by a federal grand jury for their roles in a $1 million conspiracy to distribute at least 30 kilograms of methamphetamine, bringing the total number of defendants to 15 in an investigation that was initiated with an arrest by Buchanan County, Mo., sheriff’s deputies in St. Joseph, Mo.
Jake Ian Nixon, 19, Aaron Randall Stull, 51, and Michelle Vanne Gray, 49, all of Springfield, Mo.; Jarub Ray Baird, 27, of Carthage, Mo.; Breann Nicole Hall, 25, of Ozark, Mo.; Lanny Eugene Ham, 26, of Bakersfield, Calif.; Cindy Ann Nevatt, 62, of Gulf Shores, Ala.; and Autumn Sky Provience, 23, and Tara L. Harken, 44, both of Marion, Ill., were charged in a seven-count superseding indictment returned by a federal grand jury in Kansas City, Mo., on Nov. 17, 2016. The superseding indictment replaces the original indictment returned on April 21, 2016, and includes additional charges.
The superseding indictment adds Nixon, Stull, Gray, Baird, Hall, Ham, Cindy Nevatt, Provience and Harken to the original conspiracy charge against Michael Ryan Nevatt (the son of Cindy Nevatt), 26, Kara Rene Baze, 23, and Scott Bryan Sands, 51, all of Springfield, Kenneth Bryant Lake, 55, of Strafford, Mo., Jerry Lee Brown, 43, of Lebanon, Mo., and Travis Lee Bethel, 45, of Urbana, Mo.
The federal indictment alleges that all 15 co-defendants participated in a conspiracy to distribute methamphetamine from Jan. 1, 2014, to Nov. 17, 2016. The indictment also contains a forfeiture allegation, which would require all of the defendants (jointly and severally) to forfeit to the government $1,060,070, which represents the proceeds of drug trafficking based on a conservative average street price of $1,000 per ounce of 90 percent pure methamphetamine and the total conspiracy distribution of at least 30 kilograms of methamphetamine.
All of the defendants are also charged in a money-laundering conspiracy. They allegedly conducted financial transactions which involved the proceeds of unlawful activity in order to promote the drug-trafficking conspiracy, to conceal the nature, source, location, ownership, and control of drug-trafficking proceeds and to avoid bank reporting requirements.
For example, the indictment alleges that Michael Nevatt purchased $13,000 in chips at the Grand Casino of Biloxi. The indictment also alleges that Michael Nevatt spent $16,000 to purchase a 2003 Corvette. Michael Nevatt is charged with three counts of money laundering related to these transactions.
In addition to the drug-trafficking and money-laundering conspiracies, Michael Nevatt is charged with Cindy Nevatt and Provience in a conspiracy to possess and use various firearms during and in relation to the conspiracy to distribute methamphetamine.
Michael Nevatt, Provience and Nixon are also charged together in one count of possessing firearms in furtherance of a drug-trafficking crime. They allegedly possessed a loaded Colt .32-caliber handgun, a .22-caliber handgun, a loaded Kahr Arms 9mm semi-automatic pistol, a loaded Raven .25-caliber semi-automatic handgun, and a loaded Bond Arm .45-caliber semi-automatic handgun.
According to the affidavit filed in support of the original criminal complaint, a cooperating defendant was arrested by Buchanan County, Mo., sheriff’s deputies in St. Joseph, Mo., on July 20, 2015. The cooperating defendant, who was in possession of approximately 500 grams of methamphetamine and $5,000, allegedly identified Michael Nevatt as his source. The cooperating defendant also told investigators that s/he accompanied Michael Nevatt to Dallas, Texas, on multiple occasions to obtain multiple-pound quantities of methamphetamine, which was then transported back to Missouri for distribution.
According to the affidavit, Michael Nevatt was the middle man between Mexican methamphetamine suppliers and southern Missouri distributors. A second confidential informant told investigators that s/he had traveled to Dallas, Texas, with Michael Nevatt to pick up pound levels of methamphetamine approximately 20 to 30 times between October 2014 and July 2015. The methamphetamine allegedly was transported back to Springfield for distribution.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Buchanan County Drug Strike Force, the Buchanan County, Mo., Sheriff’s Department, the Springfield, Mo., Police Department, the Lake Area Narcotics Enforcement Group, the U.S. Postal Inspection Service, the Drug Enforcement Administration and IRS-Criminal Investigation.
New Orleans Man Sentenced to 15 Years for Cocaine DistributionRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JEFFREY WILSON, age 31, of New Orleans, was sentenced today after previously pleading guilty to two counts of distributing cocaine hydrochloride and cocaine base or "crack."
U.S. District Judge Kurt D. Engelhardt sentenced WILSON to 180 months of incarceration to be followed by 5 years of supervised release and a $200 special assessment.
According to court documents, WILSON made a sale of cocaine hydrochloride on May 13, 2014, to two confidential informants working with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in the area near the former Melpomene Housing Development near Martin Luther King Boulevard. WILSON later made a second sale of cocaine base or crack on May 30, 2014, to the same two informants.
U.S. Attorney Polite praised the work of the ATF in leading this investigation along with members of the NOPD led Multi-Agency Gang Unit (MAG UNIT). Assistant U.S. Attorneys Edward Rivera, Maurice Landrieu, Jr., Nolan Paige and Nicholas Moses were in charge of the prosecution.
New Milford Loan Shark Pleads GuiltyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JAMES BRODERICK III, 58, of New Milford, pleaded guilty today in New Haven federal court to a federal extortion charge.
According to court documents and statements made in court, in late December 2015 to early January 2016, BRODERICK lent an individual approximately $1,500 with an understanding that the individual was required to pay BRODERICK $1,500, plus an additional $500 in interest, within four days of the initial loan. When the individual failed to pay the loan within four days, BRODERICK asked Howard Hammer to assist him in collecting on the loan. Hammer then sent text messages to the victim that threatened harm to the victim if he failed to pay his debt. Hammer took screen shots of the threatening text messages and forwarded them to BRODERICK. BRODERICK and Hammer also discussed taking the victim’s car either as payment for the debt or as punishment for failure to pay the debt.
On January 25, 2016, the victim suffered permanent bodily injury in connection with this conduct.
BRODERICK also made several extortionate loans to a second victim. When the victim was unable to repay the usurious interest amounts, which were at least 10 percent of the principal per week, BRODERICK repeatedly threatened to use force to collect the debt. Over the course of three years, BRODERICK collected more than $20,000 in interest payments from this second victim.
BRODERICK pleaded guilty to one count of conspiracy to participate in the collection and attempted collection of an extension of credit by extortionate means, which carries a maximum term of imprisonment of 20 years and a fine of up to $250,000.
BRODERICK is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on March 1, 2017.
BRODERICK and Hammer were arrested on May 27, 2016. BRODERICK is released on a $200,000 bond.
Hammer, of New Milford, pleaded guilty to the same charge on December 2, 2016. He awaits sentencing, and has been detained since his arrest.
This matter is being investigated by the FBI Violent Crime Task Force, New Milford Police Department and Connecticut State Police Western District Major Crime Squad. The case is being prosecuted by Assistant U.S. Attorney Tracy Lee Dayton.
New Hampshire to Receive $1.3 Million Grant for Combating Human TraffickingRead the Press Release
Concord, N.H.— United States Attorney Emily Gray Rice and core team partners from the Manchester Police Department, Child and Family Services, Immigration and Customs Enforcement (ICE) - Homeland Security Investigations and Give Way to Freedom announced a grant of $1.3 million from the United States Department of Justice that will support the efforts of the New Hampshire Human Trafficking Collaborative Task Force as it works to formalize and enhance existing efforts, and build statewide capacity to combat human trafficking.
With this grant the Collaborative aims to create comprehensive and specialized services for all victims of human trafficking, investigate and prosecute sex and labor trafficking cases, and support data collection and analysis that will help guide the state in developing best practices for an informed response.
United States Attorney Emily Gray Rice said, “This grant brings much-needed funding that will substantially enhance our ability to pursue human trafficking investigations and prosecutions in the future. The United States Attorney’s Office is committed to working with our law enforcement and community partners to identify and prosecute individuals who are engaged in human trafficking. We will work tirelessly to bring these criminals to justice in a way that is sensitive to the needs of the victims of this very serious crime.”
“Fundamental to the Collaborative’s efforts is the understanding that human trafficking impacts vulnerable people and populations, and any true response must include support to prevent and address vulnerability in whatever form it may take,” explained Erin Albright, Regional Program Director of Give Way to Freedom.
“In order to effectively investigate human trafficking, we must give primary consideration to the needs of the victim. A victim who can tell their story and testify as a competent witness is key to a successful human trafficking investigation and prosecution. Unless we can address the needs of the victim – whether that be by facilitating long-term care, or by assisting with potential immigration benefits – our efforts to hold traffickers responsible will be hindered. To this end, combatting human trafficking requires a multi-disciplinary approach, as we have established here in New Hampshire,” added Matt Etre, Special Agent in Charge (SAC), HSI Boston.
“We’ve seen first-hand how trafficking, both sex and labor, is impacting people of all ages here in New Hampshire, especially those in vulnerable or marginalized circumstances,” says Erin Kelly, Runaway & Homeless Youth program director at Child and Family Services. “This collaborative will serve as a powerful first step and formidable force against human trafficking in New Hampshire."
Chief Nick Willard, Manchester Police Department said, "The Manchester Police Department is proud to be a part of this Collaborative Task Force that will address Human Trafficking. This grant allows us to move forward in developing a multi-disciplinary, victim centered approach to addressing the ever increasing number of Human Trafficking cases that are coming to light in the city of Manchester and throughout the state of New Hampshire."
BACKGROUND: The Manchester New Hampshire Police Department (MPD) and Child and Family Services of New Hampshire (CFS) jointly submitted a 2016 Enhanced Collaborative Model to Combat Human Trafficking Task Force grant to the U.S. Department of Justice, on behalf of the New Hampshire Human Trafficking Collaborative Task Force, which includes more than 30 NH-based law enforcement, service providers, attorneys, state agencies, and other community stakeholders gathered for the purpose of improving the statewide response to human trafficking. The Collaborative is further supported by members of a Core Team including The US Attorney’s Office for the District of New Hampshire (USAO/NH), ICE, Homeland Security Investigations (HSI), and Give Way to Freedom (GWTF). The grant was awarded to New Hampshire for $1.3 million over three years.
Additional information on the New Hampshire Human Trafficking Collaborative Task Force and the work of the Core Team’s investigation, service to survivors, data collection and training can be found at Give Way to Freedom’s website:
http://www.givewaytofreedom.org/initiatives/New-Hampshire-Task-Force.php
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Muskogee Man Sentenced to 188 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that, IKE ALEXANDER, age 34, of Muskogee, Oklahoma, was sentenced to 188 months and 5 years supervised release for FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) and 924(e)(1).
The Indictment alleged that on or about March 25, 2016, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition, which had been shipped and transported in interstate commerce.
The charge arose from an investigation by the Muskogee Police Department.
The Honorable Judge 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 the custody pending transportation to the designated federal facility at which, the nonparoleable sentence will be served.
Assistant United States Attorney Edward Snow represented the United States.
Muskogee Man Sentenced to 180 Months for Firearms Possession, Firearm with Obliterated Serial NumberRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that, MICHAEL CHRISTOPHER CONDI, age 38, of Muskogee, Oklahoma, was sentenced to 180 months and 5 years supervised release for two counts of FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) and 924(e)(1), and POSSESSION OF FIREARM WITH OBLITERATED SERIAL NUMBER, in violation of Title 18, United States Code, Sections 922(k) and 924(a)(1).
The Indictment alleged that on or about January 22, 2016 and on or about April 13, 2016, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition, which had been shipped and transported in interstate commerce.
The Indictment further alleged that on or about January 22, 2016, within the Eastern District of Oklahoma, the defendant, did knowingly possess in and affecting commerce, a firearm, with an obliterated serial number, which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Muskogee Police Department, the Muskogee County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The Honorable Judge 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 the custody pending transportation to the designated federal facility at which, the nonparoleable sentence will be served.
Assistant United States Attorney Dean Burris represented the United States.
Mexican national sentenced to federal prison for role in California-to-West Virginia drug conspiracyRead the Press Release
CHARLESTON, W.Va. – A Mexican national was sentenced today to a year and a half in federal prison for his role in a California-to-West Virginia methamphetamine conspiracy, announced United States Attorney Carol Casto. Marco Antonio Bojorquez-Rojas, 21, a Mexican national residing in California, previously pleaded guilty to interstate travel in furtherance of a drug crime.
Bojorquez-Rojas admitted that in January 2016, he traveled with some of his codefendants to Charleston from California to collect money for methamphetamine that had been delivered to West Virginia. On January 11, 2016, law enforcement executed a search warrant on a hotel room where Bojorquez-Rojas and some of his codefendants, including Rafael Garcia Serrato and Cesar Garcia, were staying and recovered a bag containing $12,000 cash. Bojorquez-Rojas also admitted that this cash was payment for a portion of the methamphetamine that had been delivered to West Virginia. Bojorquez-Rojas additionally admitted that in March 2016, he traveled from California to Huntington to collect money for methamphetamine that had been driven to Huntington by codefendants Kelly Newcomb and Cara Linn Monasmith. Shortly after the arrival of Bojorquez-Rojas in Huntington on March 19, 2016, law enforcement arrested him and three of his codefendants in a Huntington hotel room.
This prosecution is the result of a multi-agency investigation that led to an eight-count indictment implicating several defendants, some of whom have already been sentenced to prison. All of the defendants are presumed innocent unless and until proven guilty in a court of law. Newcomb, of Nevada, was sentenced to a year and a day in prison for interstate travel in furtherance of a drug crime. Danielle Dessaray Estrada, of Los Angeles, was also sentenced to a year and a day in prison for interstate travel in furtherance of a drug crime.
Several of the defendants have pleaded guilty and are awaiting sentencing. Two other women who were used as mules to transport methamphetamine, Rachel Arlene Garay, of California, and Monasmith, of Nevada, pleaded guilty to interstate travel in furtherance of a drug crime. Additionally, as part of this conspiracy, Serrato, of Los Angeles, Garcia, also of Los Angeles, Daniel Ortiz-Rivera, a Mexican national, Velarian Sylvester Carter, of Beckley, Miguel Tafolla-Montoya, a Mexican national, and Brian Ashby, of Kanawha County, previously pleaded guilty to conspiring to distribute more than 50 grams of methamphetamine.
The FBI, Homeland Security Investigations, the United States Postal Inspection Service, the Charleston Police Department, and the Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald is in charge of these prosecutions. United States District Judge John T. Copenhaver, Jr., is presiding over these cases and imposed the sentences.
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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Methamphetamine Trafficker Sentenced to Six Years in PrisonRead the Press Release
SAN FRANCISCO – David Perez Hernandez was sentenced today to six years in prison for possessing with intent to distribute methamphetamine and using, carrying, or possessing a firearm during and in relation to a drug trafficking crime, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The sentence follows a guilty plea entered September 15, 2016, in which Hernandez admitted he possessed with the intent to distribute the methamphetamine and used or carried a firearm during and in relation to the drug trafficking crime.
According to the plea agreement, Hernandez, 20, of San Francisco, admitted that on March 3, 2016, he possessed about 6.8 kilograms of a mixture and substance containing methamphetamine. Further, Hernandez acknowledged he possessed a handgun in furtherance of the drug trafficking crime. On July 5, 2016, a federal grand jury indicted Hernandez, charging him with one count of possession with intent to distribute methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C), and one count of using, carrying, or possessing a firearm during and in relation to a drug trafficking crime, in violation of 18 U.S.C. § 924(c).
The sentence was handed down by the Honorable Richard Seeborg, U.S. District Judge. In addition to the prison term, Judge Seeborg ordered Hernandez to serve a three-year period of supervised release. The defendant has been in federal custody since his arrest in July and will begin serving his sentence immediately.
Assistant U.S. Attorney Helen Gilbert is prosecuting the case with the assistance of Marina Ponomarchuk and MK Swartsfager. This case is the product of an investigation by the FBI.
Member of DeCavalcante Crime Family Admits Use of Interstate Facility to Commit MurderRead the Press Release
NEWARK, N.J. – A member of the DeCavalcante Family of La Cosa Nostra today admitted using a telephone to plan the murder of an organized crime rival, U.S. Attorney Paul J. Fishman announced.
Charles Stango, 72, of Henderson, Nevada, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with one count of knowingly using an interstate facility – the telephone – with the intent to murder a rival. He also pleaded guilty to violating the terms of his supervised release, which he was serving following his imprisonment on racketeering charges in New York.
According to documents filed in this case and statements made in court:
Stango was arrested on April 14, 2015, as part of a sweep of DeCavalcante crime family members that operated in New Jersey and elsewhere. The DeCavalcante crime family was part of a nationwide criminal organization known variously as the “Mafia” and “La Cosa Nostra,” which operated through entities called “families.” The DeCavalcante family engaged in numerous criminal activities, including conspiracy to commit murder, distribution of controlled substances, prostitution, extortion, and other crimes of violence.
Stango admitted today that he used the telephone to plan the murder of a crime family rival (identified in court papers as “Victim 1”). Based on tape recorded evidence uncovered during the investigation, Stango believed that Victim 1 had falsely held himself out to be a “made man” within the family structure. Stango refused to recognize Victim 1’s alleged new status. Stango also believed that Victim 1 had intentionally insulted a high-ranking family member, which Stango felt deserved the ultimate punishment. He offered up to $50,000 to two assassins to carry out the order. The two assassins were, in fact, undercover FBI agents. Law enforcement officials closed down the investigation to ensure Victim 1’s safety, and he was never harmed.
Six of Stango’s co-defendants, including his son, Anthony Stango, have pleaded guilty to various crimes – including distribution of significant amounts of cocaine and attempting to set up a prostitution business – to enrich the crew members and the crime family.
The count to which Stango pleaded guilty carries a maximum potential penalty of 10 years in prison and a fine of $250,000 Sentencing is scheduled for March 28, 2017.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Waterfront Commission of New York Harbor, under the direction of Executive Director Walter Arsenault; the Bayonne Police Department, under the direction of Chief Drew Niekrasz; and the N.J. State Commission of Investigation, under the direction of Acting Director Lee C. Seglem, with the investigation leading to today’s guilty plea. He also thanked the FBI’s Las Vegas office and the Union County Prosecutor’s Office for their roles in the investigation.
The government is represented by Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney’s Office Organized Crime/Gangs Unit and Assistant U.S. Attorney James Donnelly of the Criminal Division in Newark.
Defense counsel: Chester Keller Esq., Assistant Federal Public Defender, Newark
Mayor of Gurabo, Puerto Rico, Arrested for Public CorruptionRead the Press Release
Today, Victor M. Ortiz-Díaz a.k.a. “Manolito,” mayor of the municipality of Gurabo, Puerto Rico, was arrested by Federal Bureau of Investigation (FBI) agents on charges of extortion and soliciting a bribe, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico.
According to the indictment, on or about October 2012, the Municipality of Gurabo owed Company A payments for eight outstanding invoices for work performed in the municipality. Person A, co-owner of Company A, met with mayor Ortiz-Díaz to discuss the outstanding debt. The mayor solicited $125,000 from Person A to invest in a telecommunication antennas project. Because Company A did not have the money to pay the $125,000, the mayor told Person A that he would have the municipality make a payment to the company. With this money, Company A could be able to cover the “loan” to Ortiz-Díaz, as well as pay other debts it owed its suppliers.
On Oct. 19, 2012, Person A issued three post-dated Company A checks payable to three different individuals, who were employees of Miguel Merced. Merced was the individual orchestrating the telecommunications investment scheme in which Ortiz-Diaz invested the three checks totaling $125,000. On that same date, the Municipality of Gurabo issued two checks totaling $196,643.26 payable to Company A for contracting work performed.
Unbeknownst to him, Ortiz-Díaz used the money he extorted from Person A in what turned out to be a Ponzi scheme run by Merced, who is now serving a six-year prison sentence.
“Defendant Ortiz-Díaz extorted Person A, to invest in a Ponzi scheme, which resulted in losses to many victims,” said U.S. Attorney Rodríguez-Vélez. “Although he presented himself as a victim in federal court, it was the citizens of Gurabo who were the victims of his corrupt acts, as it was their money he squandered.”
“It is always a sad day when someone who enjoys the trust of the people abuses that trust,” said FBI Special Agent in Charge Douglas Leff. “It should be clear by now that those officials who have served the public dishonestly will eventually have justice delivered to their doorstep. The FBI will continue to work with its partners at the U.S. Attorney’s Office to ensure that the citizens of Puerto Rico receive the fair and honest government to which they are entitled.”
This case was investigated by the FBI and U.S. Department of Housing and Urban Development’s Office of Inspector General and is being prosecuted by Assistant U.S. Attorney Olga B. Castellón-Miranda.
If found guilty, the defendant could face up to 20 years in prison and $250,000 in fines. An indictment contains only charges and is not evidence of guilt. Defendant is presumed to be innocent unless and until proven guilty.
Mayor of Gurabo, Puerto Rico, Arrested for Public CorruptionRead the Press Release
Today, Victor M. Ortiz-Díaz a.k.a. “Manolito,” mayor of the municipality of Gurabo, Puerto Rico, was arrested by Federal Bureau of Investigation (FBI) agents on charges of extortion and soliciting a bribe, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico.
According to the indictment, on or about October 2012, the Municipality of Gurabo owed Company A payments for eight outstanding invoices for work performed in the municipality. Person A, co-owner of Company A, met with mayor Ortiz-Díaz to discuss the outstanding debt. The mayor solicited $125,000 from Person A to invest in a telecommunication antennas project. Because Company A did not have the money to pay the $125,000, the mayor told Person A that he would have the municipality make a payment to the company. With this money, Company A could be able to cover the “loan” to Ortiz-Díaz, as well as pay other debts it owed its suppliers.
On Oct. 19, 2012, Person A issued three post-dated Company A checks payable to three different individuals, who were employees of Miguel Merced. Merced was the individual orchestrating the telecommunications investment scheme in which Ortiz-Diaz invested the three checks totaling $125,000. On that same date, the Municipality of Gurabo issued two checks totaling $196,643.26 payable to Company A for contracting work performed.
Unbeknownst to him, Ortiz-Díaz used the money he extorted from Person A in what turned out to be a Ponzi scheme run by Merced, who is now serving a six-year prison sentence.
“Defendant Ortiz-Díaz extorted Person A, to invest in a Ponzi scheme, which resulted in losses to many victims,” said U.S. Attorney Rodríguez-Vélez. “Although he presented himself as a victim in federal court, it was the citizens of Gurabo who were the victims of his corrupt acts, as it was their money he squandered.”
“It is always a sad day when someone who enjoys the trust of the people abuses that trust,” said FBI Special Agent in Charge Douglas Leff. “It should be clear by now that those officials who have served the public dishonestly will eventually have justice delivered to their doorstep. The FBI will continue to work with its partners at the U.S. Attorney’s Office to ensure that the citizens of Puerto Rico receive the fair and honest government to which they are entitled.”
This case was investigated by the FBI and U.S. Department of Housing and Urban Development’s Office of Inspector General and is being prosecuted by Assistant U.S. Attorney Olga B. Castellón-Miranda.
If found guilty, the defendant could face up to 20 years in prison and $250,000 in fines. An indictment contains only charges and is not evidence of guilt. Defendant is presumed to be innocent unless and until proven guilty.
Manhattan U.S. Attorney Announces Charges Against Two Individuals in Connection with Bribery and Kickback Scheme to Secure Business from A Nonprofit Health OrganizationRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced the unsealing of charges today against NIMESH PATEL, a former information technology employee at a large national nonprofit organization (the “Society”) and DILIP VADLAMUDI, the owner of an information technology outsourcing company located in Indiana, for engaging in a bribery and kickback scheme. PATEL was arrested this morning in New Jersey, and was presented today before United States Magistrate Judge Katharine H. Parker. VADLAMUDI was arrested this morning in Indiana, and was expected to be presented
US v. Patel and Vadlamudi indictment.pdf today before a Magistrate Judge in Indianapolis.U.S. Attorney Preet Bharara said: “As alleged, the defendants conspired to defraud a national nonprofit organization. Patel allegedly abused his position at the nonprofit to funnel millions in fees to Vadlamudi’s company in exchange for hundreds of thousands in kickbacks. Thanks to the investigative work of the U.S. Postal Inspection Service, the defendants’ alleged fraud scheme has been put to an end.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “These individuals took advantage of their business relationship by devising a scheme to ‘fatten their wallets,’ while having no regard for the victimized nonprofit organization. Postal Inspectors will always be on the forefront of bringing criminals to justice for their greedy misdeeds against the American public.”
As alleged in the Indictment unsealed today in Manhattan federal court:[1]
The Society is a large nonprofit health care organization with national headquarters in Westchester, New York. PATEL was employed as a senior director in the information technology group at the Society. During the time PATEL worked at the Society, he signed acknowledgements of its conflict-of-interest policy, which prohibited employees from soliciting or accepting payments from any individual or organization that had business with the Society. VADLAMUDI owned a company headquartered in Indiana (“VADLAMUDI Company-1”) that, among other things, acted as a temporary staffing company for information technology (“IT”) professionals. VADLAMUDI Company-1 had a contract with the Society pursuant to which Society employees, including PATEL, were authorized to hire temporary employees on behalf of the Society from VADLAMUDI Company-1.
From in or about October 2012 through in or about September 2014, PATEL hired numerous temporary IT employees from VADLAMUDI Company-1, which caused the Society to pay VADLAMUDI Company-1 millions of dollars in fees. During that same time period, VADLAMUDI paid PATEL approximately $274,000 in kickbacks. PATEL and VADLAMUDI exchanged emails regarding this kickback scheme. For instance, on a regular basis PATEL and VADLAMUDI exchanged spreadsheets listing the names of VADLAMUDI Company-1 temporary IT employees hired by the Society, along with a kickback amount calculated per employee.
In order to make payments to PATEL, VADLAMUDI used a bank account associated with a different company he controlled to transfer approximately $274,000 to the bank account for a shell corporation set up by PATEL. PATEL used that money for his personal expenses, including $80,000 toward a down payment on his residence and over $100,000 transferred into his personal bank account.
When the Society conducted an investigation into allegations of bribery and kickbacks in the IT department in the fall of 2014, PATEL falsely denied receiving money from VADLAMUDI.
* * *
PATEL, 45, of Woodcliff Lake, New Jersey, and VADLAMUDI, 45, of Carmel, Indiana, are both charged in three counts: one count of conspiracy to commit honest services wire fraud; one count of conspiring to violate the Travel Act; and one count of conspiring to commit money laundering. Counts One and Three each carry a maximum sentence of 20 years in prison. Count Two carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the work of the USPIS.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Richard Cooper is in charge of the prosecution.
The allegations contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Manhattan U.S. Attorney Announces Arrests of Operators of Retail Heroin StoreRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Angel Melendez, Special Agent in Immigration and Customs Enforcement’s Homeland Security Investigations in New York (“HSI”), George P. Beach II, Superintendent of the New York State Police, and Daniel C. Cameron, the Chief of the City of Newburgh Police Department announced the arrest of VICTOR M. RIVAS, EDWARD CARDONA, JULIO A. DAVILA, and RONALD L. MATIAS a/k/a “Ronald Louis” stemming from a narcotics conspiracy to establish a retail heroin-selling organization. VICTOR M. RIVAS was arrested at his home in Newburgh, New York, and MATIAS was arrested at a motel in Newburgh. CARDONA and DAVILA were arrested at the retail shop at 427 Broadway in Newburgh. They will be presented today before U.S. Magistrate Judge Lisa Margaret Smith in White Plains federal court.
Law enforcement officers also executed search warrants on several locations where they believed the organizers were storing narcotics. They seized a brick containing a substance that appeared to be heroin from behind the shop, and approximately $250,000 in cash from a storage unit used by the defendants. Law enforcement also recovered a quantity of a substance that appeared to be heroin from DAVILA that was on his person when he was arrested.
VICTOR R. RIVAS, was also charged. He is currently incarcerated on state charges and will be transported to federal custody to face the federal narcotics conspiracy charges.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, these defendants blatantly sold heroin from a storefront on a main street in Newburgh, New York. By flouting the law and selling heroin like newspapers or lottery tickets, the Complaint alleges, they also helped fuel the tragic epidemic of opioid abuse that is devastating so many of our communities.”
HSI Special Agent-in-Charge Angel Melendez said: “This organization allegedly operated daily selling drugs out of their store while posing as a legitimate business. Using fake storefronts has been a way for criminals to hide in our neighborhoods while poisoning our communities. Whether it’s a sham barber shop or a bogus sports store, there is no place to hide. HSI and its law enforcement partners continue to work tirelessly, day and night, to find these drug pushers and take them off our streets.”
New York State Police Superintendent George P. Beach II said: “Once again, a strong law enforcement partnership has brought down an illegal narcotic operation. State Police members each day see the harmful effects of heroin on individuals, families and our neighborhoods. A drug like heroin destroys communities and puts lives at risk. I applaud our members and our partners for their strong police work. We will continue to work together to make our communities safer from crime.”
City of Newburgh Police Chief Daniel C. Cameron stated: “The City of Newburgh Police Department is proud to have played an integral role in the arrest of these defendants - alleged drug deals blatantly operating a storefront to sell heroin on the streets of our city. This arrest would not have been possible without the combined efforts of local, state, and federal law enforcement, working cooperatively and without agendas. Today, the residents of Newburgh are all a bit safer, as several alleged heroin dealers are behind bars.”
According to the Complaint[1] unsealed today in federal court:
Since January 2016, law enforcement agents have been involved in an investigation of a narcotics trafficking organization (the “Organization”) run by VICTOR M. RIVAS, with the assistance of CARDONA, DAVILA, VICTOR R. RIVAS, and MATIAS that operates in and around Newburgh, New York, and specifically at a storefront location at 427 Broadway in Newburgh that alternately operates as a soccer shop and a barbershop (the “Soccer Shop”).
During this investigation, undercover New York State Police officers (the “UCs”) and confidential sources (the “CSs”) conducted dozens of controlled buys of heroin at the Soccer Shop from several of the defendants. In aggregate, from January 2016 to November 2016, the UCs and CSs purchased approximately 515 glassine envelopes of a substance sold as, and later determined to be heroin, at the Soccer Shop. Ten glassine envelopes typically contain approximately 0.25 grams of heroin.
Law enforcement officials believe that the Organization distributed well over 1 kilogram of heroin from January 2016 through November 2016. That belief is based, in part, on: (i) the fact that, on the numerous occasions when the UCs and CSs sought to purchase heroin from the defendants, the heroin was readily available; (ii) the UCs and CSs frequently observed other customers of the Organization inside the Soccer Shop purchasing heroin; (iii) surveillance footage from a camera facing the Soccer Shop indicated that the Organization operated daily from approximately 5:30 a.m. to 6:30 p.m., and that a steady stream of customers tended to enter the shop while it was open and remain inside for only a few minutes each; and (iv) the observations of the UCs and CSs, as well as recorded audio and video surveillance, which indicate that the Soccer Shop is not engaged in any legitimate business as a barbershop, sports shop, or otherwise. During the course of this investigation, the only business observed to be conducted inside the Soccer Shop was the illegal sale of narcotics.
* * *
VICTOR M. RIVAS, 51, of Newburgh, CARDONA, 33, of Newburgh, DAVILA, 26, of Newburgh, VICTOR R. RIVAS, 28, of Newburgh, and MATIAS, 35, are each charged with one count of conspiring to violate the narcotics laws of the United States, by conspiring to distribute and possess with intent to distribute 1 kilogram and more of a mixture or substance containing a detectable amount of heroin. The charge carries a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara thanked the Drug Enforcement Administration and the City of Newburgh Police Department for their assistance with this investigation. He added that the investigation is continuing.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Jacqueline C. Kelly and Allison Nichols are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations and every fact described should be treated as an allegation.
Manhattan Deputy U.S. Attorney Announces Return to Italy of Roman Statue Stolen in 1983Read the Press Release
Joon Kim, Deputy United States Attorney for the Southern District of New York, and Michael McGarrity, Special Agent in Charge of the Criminal Division of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that a Roman marble peplophoros statue (the “Torlonia Peplophoros”), stolen from the Villa Torlonia in Rome in 1983, was returned to Italy today at a repatriation ceremony at the New York Historical Society in Manhattan. The Torlonia Peplophoros was sold in Manhattan in 2001 after being unlawfully brought into the United States in the late 1990s, and was forfeited to the United States as a result of civil forfeiture action brought by the U.S. Attorney’s Office.
Deputy U.S. Attorney Joon Kim said: “On a November night in 1983, the Torlonia Peplophoros, a marble statute listed on Italy’s national archive, was stolen from its home in a Roman villa. When it emerged in New York City more than 30 years later, having been unlawfully smuggled into the United States, our Office, working with the FBI, forfeited the statue as stolen property. Today, we have the pleasure returning the Torlonia Peplophoros home where it belongs, with the Italian people.”
FBI Special Agent in Charge Michael McGarrity said, “Today’s ceremony is just one example of the FBI’s commitment to restore significant arts and antiquities to their rightful owners, and we remind everyone of the significant role they serve in preserving the history of the world.”
According to court filings and other publically available information:
In 1797, Giovanni Torlonia, a famous Vatican banker in Rome, purchased what is now called the Villa Torlonia (the “Villa”) after inheriting the title of Marchese. The Torlonia family owned the Villa until 1977, though it was used by Benito Mussolini as his personal residence from 1925 to 1943, and then occupied by the Allied High Command from 1944 to 1947. After 1947, the Villa was abandoned and deteriorated until the Municipality of Rome purchased it from the Torlonia family in 1977.
Since 1978, the Villa has been opened to the public and restored by the Municipality of Rome. It contained various works of art and other significant cultural property, including the Torlonia Peplophoros, a statue depicting a woman wearing a body-length garment, known as a peplos (or peplum), that was common in ancient Greece.
During the night of November 11, 1983, and the following morning, an unknown number of thieves stole 15 statues and other items from the Villa. The Torlonia Peplophoros was among the stolen statues.
In the late 1990s, the Torlonia Peplophoros was imported into the United States by the owner of a New York City art gallery (the “Gallery”). In 2001, the Gallery sold the Torlonia Peplophoros to an individual residing in New York City (the “Buyer”) for approximately $75,000.
The Buyer became aware that the Torlonia Peplophoros was stolen when the Buyer attempted to offer it for sale through a New York City auction house, and voluntarily turned it over to the FBI in late 2015.
On February 25, 2016, the U.S. Attorney’s Office for the Southern District of New York filed a civil forfeiture Complaint alleging that the Torlonia Peplophoros had been imported into the United States illegally. On June 29, 2016, United States District Court Judge Katherine P. Failla entered a default judgment forfeiting the Torlonia Peplophoros to the United States.
* * *
Mr. Kim thanked the FBI’s Art Crime Team for its outstanding work on this matter.
The case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorney Alexander Wilson is in charge of the case.
Man Arrested in Springfield, Oregon Sentenced to 57 Months for Firearm PossessionRead the Press Release
EUGENE, Ore. – On December 6, 2016, Troy Joseph Minson, Jr., 28, from Madras, Oregon was sentenced by U.S. District Judge Ann Aiken to 57 months in federal prison for unlawful possession of a firearm. Minson, a convicted felon with outstanding arrest warrants, will be on supervised release for three years following his prison sentence.
On August 3, 2014, the Springfield Police Department received a call that the defendant was at a local deli with a gun. Officers responded and attempted to take Minson into custody when he pulled away from them, jumped over a counter and dropped a loaded .22 caliber Beretta pistol onto the ground. A struggle ensued when Minson resisted arrest, but he was eventually apprehended and taken into custody. Minson has prior felony convictions for burglary in the first degree, delivery of methamphetamine and eluding police.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Springfield Police Department, and was prosecuted by Nathan J. Lichvarcik, Assistant United States Attorney for the District of Oregon, along with the assistance of Jefferson County District Attorney Steven Leriche.
Louisiana Criminal Defense Attorney Pleads Guilty to Tax EvasionRead the Press Release
WASHINGTON – A Louisiana criminal defense attorney pleaded guilty today to tax evasion, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
Michael Thiel, 66, a resident of Baton Rouge, Louisiana, pleaded guilty to one count of evading the payment of federal income and employment taxes for 2003 through 2013. According to documents filed with the court, Thiel operated a criminal defense law practice in Hammond, Louisiana. Despite earning substantial income through his law practice, Thiel did not timely file income tax or employment tax returns, and did not timely pay tax due and owing to the United States. Thiel agreed that as of April 30, he owed federal income tax, penalties and interest totaling $736,527, and employment tax, penalties and interest totaling $261,725.
In January 2007, in an effort to conceal the ownership of his property and evade the payment of his tax liabilities, Thiel used nominees and the trusts he beneficially owned to purchase his principal residence for $435,000. The nominees obtained a mortgage on the principal residence, and used a nominee bank account beneficially funded by Thiel to make the payments. Thiel entered into a lease agreement with the nominees to falsely characterize the monthly mortgage payments as rent. In addition, between January 2007 and January 2014, Thiel deposited $416,283.56 into the nominee bank account with funds from the trusts and other accounts not held in his name.
“Michael Thiel, an attorney, ignored his federal tax obligations and willfully evaded payment of nearly a million dollars in income and employment tax through the use of nominee trusts and accounts,” said Principal Deputy Assistant Attorney General Ciraolo. “With today’s guilty plea, Thiel is held to account for his criminal conduct, and the Department, working with its colleagues within the IRS, sends a clear message that no one is above the law.”
“Today’s guilty plea represents a win for the U.S. taxpayers,” said Special Agent in Charge Jerome R. McDuffie of IRS – Criminal Investigation, New Orleans Field Office. “As a member of the legal profession, Michael Thiel knew his requirement to pay both his personal income and employment taxes, but chose to use alter-ego nominee trusts and bank accounts to violate the laws. IRS – Criminal Investigation will continue to work diligently to ensure that individuals such as Mr. Thiel are held accountable for their wrongdoings, as well as pay their fair share in compliance with our nation’s tax laws.”
Sentencing is scheduled for March 22, 2017. Pursuant to the plea agreement, Thiel faces a maximum sentence of 37 months in prison, as well as a period of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS-CI, who conducted the investigation, and Assistant Chief Todd A. Ellinwood and Trial Attorney Michael Hatzimichalis, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Louisiana Criminal Defense Attorney Pleads Guilty to Tax EvasionRead the Press Release
A Louisiana criminal defense attorney pleaded guilty today to tax evasion, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
Michael Thiel, 66, a resident of Baton Rouge, Louisiana, pleaded guilty to one count of evading the payment of federal income and employment taxes for 2003 through 2013. According to documents filed with the court, Thiel operated a criminal defense law practice in Hammond, Louisiana. Despite earning substantial income through his law practice, Thiel did not timely file income tax or employment tax returns, and did not timely pay tax due and owing to the United States. Thiel agreed that as of April 30, he owed federal income tax, penalties and interest totaling $736,527, and employment tax, penalties and interest totaling $261,725.
In January 2007, in an effort to conceal the ownership of his property and evade the payment of his tax liabilities, Thiel used nominees and the trusts he beneficially owned to purchase his principal residence for $435,000. The nominees obtained a mortgage on the principal residence, and used a nominee bank account beneficially funded by Thiel to make the payments. Thiel entered into a lease agreement with the nominees to falsely characterize the monthly mortgage payments as rent. In addition, between January 2007 and January 2014, Thiel deposited $416,283.56 into the nominee bank account with funds from the trusts and other accounts not held in his name.
“Michael Thiel, an attorney, ignored his federal tax obligations and willfully evaded payment of nearly a million dollars in income and employment tax through the use of nominee trusts and accounts,” said Principal Deputy Assistant Attorney General Ciraolo. “With today’s guilty plea, Thiel is held to account for his criminal conduct, and the Department, working with its colleagues within the IRS, sends a clear message that no one is above the law.”
“Today’s guilty plea represents a win for the U.S. taxpayers,” said Special Agent in Charge Jerome R. McDuffie of IRS – Criminal Investigation, New Orleans Field Office. “As a member of the legal profession, Michael Thiel knew his requirement to pay both his personal income and employment taxes, but chose to use alter-ego nominee trusts and bank accounts to violate the laws. IRS – Criminal Investigation will continue to work diligently to ensure that individuals such as Mr. Thiel are held accountable for their wrongdoings, as well as pay their fair share in compliance with our nation’s tax laws.”
Sentencing is scheduled for March 22, 2017. Pursuant to the plea agreement, Thiel faces a maximum sentence of 37 months in prison, as well as a period of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS-CI, who conducted the investigation, and Assistant Chief Todd A. Ellinwood and Trial Attorney Michael Hatzimichalis, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Los Angeles Man Who Ran Burger Restaurant Sentenced to 15 years in Federal Prison for Distributing Crack CocaineRead the Press Release
LOS ANGELES – A South Los Angeles man was sentenced this morning to 15 years in federal prison for distributing crack cocaine on two occasions, including one transaction that took place at his hamburger stand.
Brian Sawyers, 57, was sentenced by United States District Judge Ronald S.W. Lew for his conviction on two counts of distribution of cocaine base in the form of crack cocaine for selling the drug to a confidential informant working with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The sentence was based in part on Sawyers’ three prior felony drug convictions, two of which were federal convictions, which meant he faced a mandatory minimum sentence of 10 years in prison.
“Crack cocaine remains a highly addictive drug that poses a danger to its users, and the trafficking of crack poses dangers to the community at large,” said United States Attorney Eileen M. Decker. “Removing this defendant from the street for the next 15 years increases the safety of the law-abiding residents of South Los Angeles.”
“The defendant’s criminal history documents several violations of drug trafficking laws,” said ATF Special Agent in Charge Eric D. Harden. “The lengthy sentence handed down ensures Mr. Sawyer does not remain on the streets to sell drugs at the peril of his own community.”
According to court documents, Sawyers sold over an ounce of crack cocaine and, later, approximately 2½ ounces of crack cocaine to an ATF confidential informant. The first transaction took place on February 8, 2012 in the parking lot of B.D. Burgers, the restaurant that Sawyers owned in South Los Angeles. On March 1, 2012, there was a second operation in which the informant met Sawyers at the burger stand, and they went to Sawyers’ home, where they completed the transaction.
The investigation into Sawyers was conducted by the ATF’s Los Angeles Field Division, the Los Angeles Police Department, and the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorneys Anil J. Antony and Ann C. Kim.
Local Man Pleads Guilty to Stolen Identity Tax Refund and Money Laundering SchemeRead the Press Release
St. Louis, MO – Precious Agobe, St. Louis County, MO, pled guilty to charges involving his participation in a stolen identity tax fraud and money laundering scheme.
According to court documents, on three occasions in February 2015, Agobe made withdrawals from a Bank of America account which contained the proceeds of fraudulently obtained federal income tax refunds. The total amount of these withdrawals was $8,800. As part of the plea agreement in this case, the parties agreed that the loss from these fraudulently obtained income tax returns was between $250,000 and $550,000.
In December 2015, Agobe withdrew $3,000 from a Bank of America account which contained the proceeds of a scheme to defraud in which a business in Kelso, Washington, was induced by fraud to transfer $47,700 from its bank account to a bank account at Bank of the West, in Mission, Kansas. A portion of this money was subsequently transferred to the Bank of America account from which Agobe withdrew $3,000.
In February 2016, 21 counterfeit checks in amounts totaling $99,055 which purported to be drawn on an account of a business in Mustang, Oklahoma, at All America Bank, in Oklahoma City, Oklahoma, were deposited into an account at Bank of America. Agobe subsequently withdrew $1,990 from this Bank of America account. As part of the plea agreement in this case, the parties agreed that the loss from Agobe’s money laundering activity was $68,968.
Agobe pled guilty to three counts of theft of government property and two counts of money laundering before United States District Judge Ronnie L. White. Sentencing has been set for March 26, 2017.
Theft of government funds carries a maximum penalty of ten years in prison and/or fines up to $250,000. Each count of money laundering carries a maximum of 20 years and/or fines up to $500,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by Internal Revenue Service-Criminal Investigation and the Kelso, Washington Police Department. Assistant United States Attorney Steven Muchnick is handling the case for the U.S. Attorney’s Office.
Lapwai Man Sentenced for Sexual Abuse of a MinorRead the Press Release
COEUR D’ALENE – Wendall Keith Antell, 48, of Lapwai, Idaho, was sentenced today in United States District Court to 121 months in prison followed by five years supervised release for aggravated sexual abuse of a minor, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Antell to pay $50,000 in restitution. Antell pleaded guilty to the charge on May 16, 2016.
According to the plea agreement, Antell, an Indian, admitted that he began sexually abusing the victim in 1991 or 1992, when she was five or six. Antell’s sexual abuse of the victim progressed to penetrating the victim’s genital opening with his finger. This type of sexual abuse of the victim began when the victim was nine and continued until she was 17. Antell admitted that he sexually abused the victim with the intent to abuse, humiliate, harass, degrade, arouse, or gratify his sexual desire. This sexual abuse occurred within the exterior boundaries of the Nez Perce Indian Reservation.
The case was investigated by Federal Bureau of Investigation and the Nez Perce Tribal Police.
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.”
Knoxville Man Pleads Guilty to Sex Trafficking Conspiracy and Drug OffensesRead the Press Release
Marcus D. Washington of Knoxville, Tennessee, pleaded guilty today to one count of conspiracy to commit sex trafficking by force, fraud or coercion; conspiracy to possess with intent to distribute a Schedule II controlled substance; and possession with intent to distribute a Schedule II controlled substance.
According to documents submitted in connection with the plea, on Sept. 25, 2013, Washington arranged for a woman identified as K.C. to meet with a client at a hotel to perform commercial sex acts. Washington did not know that this client was actually an undercover law enforcement officer. Shortly thereafter, Washington was arrested outside of the hotel and found to be in possession of Oxycodone.
A subsequent investigation revealed that Washington and another person had recruited K.C. to engage in prostitution. Washington knew that K.C. was addicted to Oxycodone and that she feared withdrawal sickness. He withheld Oxycodone from K.C. until she engaged in commercial sex acts, and when K.C. objected to continuing to perform acts of prostitution, Washington used physical force and threats to compel her to continue.
“This defendant threatened, abused and forced a vulnerable woman to engage in prostitution,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “Human trafficking violates the law and threatens the most basic standards of human dignity and decency. No conviction can undo the harm he inflicted, but we hope this guilty plea provides a measure of relief and justice to the victim in this case.”
Washington faces a maximum sentence of life in prison, as well as up to a $250,000 fine. Sentencing has been set for March 27, 2017. As part of his plea agreement, Washington will pay restitution to two women identified as victims of his human trafficking offense.This case was investigated by the FBI, and is being prosecuted by Trial Attorneys William Nolan, Rose E. Gibson and Nicholas Durham of the Civil Rights Division’s Criminal Section, with the assistance and support of the U.S. Attorney’s Office of the Eastern District of Tennessee.
Washington PleaJustice Department Partners with Honduras to Combat Employment DiscriminationRead the Press Release
The Justice Department and the government of Honduras announced a formal partnership today to protect workers from discrimination based on citizenship, immigration status and national origin. Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and Honduran Charge D’Affaires Luís F. Cordero signed a memorandum of understanding (MOU) between the embassy and its consulates, and the Civil Rights Division’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC).
As part of the MOU, OSC and the Honduran government will collaborate to educate workers about their employment rights and provide them with the resources needed to protect those rights. The MOU also seeks to promote training for employers on their obligations under the anti-discrimination provision of the Immigration and Nationality Act (INA), which prohibits employment discrimination based on citizenship, immigration status and national origin. Specifically, the MOU provides that:
• OSC will train Honduran consular staff on the anti-discrimination provision of the INA, participate in events organized by Honduran consulates to educate workers and employers, and distribute educational materials to the embassy and its consulates.
• The embassy will establish a system for referring discrimination claims from the embassy and consulates to OSC.“We must stand in solidarity with workers who face unlawful obstacles and discriminatory barriers when seeking employment,” said Principal Deputy Assistant Attorney General Gupta. “Our country thrives when all people have an equal opportunity to succeed. Yet, all too often, we see employers refusing to hire work-authorized immigrants or requiring them to show unnecessary documentation to work. This partnership will help educate workers about their rights and funnel complaints of discrimination to the Civil Rights Division.”
This agreement is particularly relevant given that Honduran nationals with temporary protected status (TPS) may encounter discrimination by employers based on their immigration status or national origin. TPS is a temporary immigration status granted to eligible nationals of a country designated for TPS under the INA. During the TPS designation period, TPS beneficiaries are authorized to work in the United States.
In the last year, the department has also established formal partnerships with Ecuador, El Salvador and Mexico to empower and educate work-authorized individuals from those nations.
OSC is responsible for enforcing the anti-discrimination provision of the INA. Among other things, this law prohibits citizenship, immigration status and national origin discrimination in hiring, firing or recruitment or referral for a fee; discrimination in the employment eligibility verification process; retaliation and intimidation. In addition to its enforcement work, OSC educates the public on its rights and responsibilities under the INA’s anti-discrimination provision.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected] or visit OSC’s website.
MOU HondurasJury Finds Pittsburgh Man Guilty of Producing and Possessing Sexually Explicit Videos of ChildrenRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been convicted by a jury of four men and eight women in Pittsburgh, Pennsylvania, of production, attempted production, and possession of material depicting the sexual exploitation of a minor, Acting United States Attorney Soo C. Song announced today.
The seven-count Superseding Indictment named George Orbin, 61, as the sole defendant.
According to the Superseding Indictment, on or about December 10, 2011, April 8, 2013, June 10, 2013, and June 11, 2013, Orbin employed, used, persuaded, induced, enticed, and coerced minors to engage in sexually explicit conduct for the purpose of producing a visual depiction of the sexual exploitation of the minors. The Superseding Indictment further alleges that on or about August 11, 2012, and June 3, 2013, Orbin attempted to employ, use, persuade, induce, entice, and coerce minors to engage in sexually explicit conduct for the purpose of producing a visual depiction of the sexual exploitation of the minors. Also, on or about September 10, 2013, Orbin knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
The law provides for a maximum total sentence of 190 years in prison, a fine of $1,750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar and Heidi Grogan prosecuted this case on behalf of the government.
The Federal Bureau of Investigation and the Allegheny County District Attorney’s Office conducted the investigation leading to the conviction in this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Iowa Dental Clinic and Its Owners Agree to Pay More Than $300,000 to Resolve Allegations the Clinic Submitted Claims for Unnecessary Procedures or Procedures that Did Not HappenRead the Press Release
Lifepoint Dental Group, LLC, and its owners, Aaron Blass, Angelina Blass, D.D.S., Mindy Richtsmeier, D.D.S., and Brad Richtsmeier, D.D.S., have agreed to pay more than $300,000 to settle allegations that they violated the False Claims Act by submitting claims for dental procedures, including scalings and root planings, that were either medically unnecessary or did not happen. The government’s allegations concern claims submitted by Lifepoint’s Cedar Rapids location between April 1, 2015, and October 1, 2015.
Allegations of wrongdoing were made against the clinic in a qui tam, or whistleblower, lawsuit filed by two former Lifepoint employees. That lawsuit was brought under the False Claims Act, which punishes violators who submit false claims to the government or who knowingly attempt to avoid an obligation to repay federal funds. The whistleblower provisions allow private parties who have knowledge of fraud committed against the government to file suit on behalf of the government and share in any recovery. The former employees who filed this lawsuit will receive a share of the total amount recovered.
“This settlement demonstrates our office’s continued commitment to ensuring all providers play by the rules and beneficiaries receive the quality of care to which they are entitled,” said United States Attorney Kevin W. Techau. “We are also proud of our cooperation in this matter with federal and state agencies, the citizens who spoke up and filed a qui tam lawsuit alleging wrongdoing, and the clinic and its owners, who cooperated throughout the investigation. We encourage anyone aware of fraud against the government to speak up and work with us to make the system work for providers, taxpayers, and beneficiaries.”
The investigation was led by the State of Iowa Medicaid Fraud Control Unit and conducted jointly with the Health and Human Services Office of Inspector General. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 1:16-cv-00049-EJM.
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Indictment: Couple Operated Moonshine Still in NewtonRead the Press Release
WICHITA, KAN. – A Newton couple were indicted in federal court here Tuesday on charges of operating a moonshine still in the basement of their home, U.S. Attorney Tom Beall said.
Ryan Penner, 41, and Jennifer Penner, 37, both of Newton, were charged with one count of possession of an unregistered still, one count of unlawful production of distilled spirits, and one count of failing to be bonded as a distiller.
The indictment alleges the Penners produced moonshine, which is illegal liquor on which federal and state excise taxes have not been paid.
The indictment alleges the investigation began in August when the Newton Police Department learned the defendants were producing and selling moonshine from their home in the 1000 block of E. 7th in Newton. Undercover officers made several purchases. A quart of moonshine typically sold for $20. Police served a search warrant at the home and seized a still built around a 15.5-gallon beer keg with metal legs and copper tubing.
If convicted, they face up to five years in federal prison and a fine up to $250,000. The Newton Police Department, the Bureau of Alcohol, Tobacco, and Firearms and Explosives and the Kansas Alcoholic Beverage Control investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
OTHER GRAND JURY INDICTMENTS
Lori A. Spaulding, 53, Augusta, Kan., a former payroll manager at Spirit AeroSystems, is charged with one count of wire fraud. The indictment alleges she made false claims to the company for tuition reimbursement and pay for unused time off.
If convicted, she faces up to 20 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Jason P. Briscoe, 39, Salina, Kan., and Jamie L. Husley, 38, Salina, Kan., are charged with one count of unlawful possession of a firearm in furtherance of drug trafficking (count one), one count of unlawful possession of a firearm following a felony conviction (count two), one count of possession with intent to distribute methamphetamine (count three) and one count of unlawful possession of a firearm with serial number removed (count four). The crimes are alleged to have occurred Nov. 18, 2016, in Smolan, Kan.
Upon conviction the crimes carry the following penalties:
Count one: Up to life in prison and a fine up to $250,000.
Count two: Up to 10 years and a fine up to $250,000.
Count three: Up to 20 years and a fine up to $250,000.
Count four: Up to five years and a fine up to $250,000.
The Bureau of Alcohol, Tobacco, Firearms investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
Gary W. Yenzer, 34, Derby, Kan., is charged with one count of theft by a mail employee (count one), one count of possession of stolen gift cards (count two), and one count of aggravated identity theft (count three). The crimes are alleged to have occurred in September 2016 in Sedgwick County, Kan. While the defendant was a rural mail carrier for the U.S. Postal Service.
If convicted, he faces the following penalties
Count one: up to five years in federal prison and a fine up to $250,000.
Count two: Up to 10 years and a fine up to $250,000.
Count three: A mandatory consecutive two years and a fine up to $250,000.
The U.S. Postal Service-Office of Inspector investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Illegal Immigrant Miguel Angel Villasenor-Saucedo Charged with Illegal Re-Entry After Deportation. Villasenor-Saucedo Was Previously Charged in Jefferson County District Court with Leaving the Scene of A Fatal Hit and Run AccidentRead the Press Release
LOUISVILLE, Ky. – Miguel Angel Villasenor-Saucedo, a Mexican national illegally present in the United States, was charged this week by grand jury indictment with Illegal Re-entry After Deportation, announced United States Attorney John E. Kuhn, Jr.
Miguel Angel Villasenor-Saucedo, 40, residing in Louisville, Kentucky, is a citizen of Mexico who on October 22, 2016 was found to be illegally present in the United States after having been deported from the United States on May 13, 2013.
This case arose when Villasenor-Saucedo was found to be involved in a fatal hit and run accident that occurred on October 22, 2016 at Outer Loop and Grade Lane in Louisville, Kentucky. Two women were killed during this accident and Villasenor-Saucedo is alleged to be the driver of the truck that caused the deaths of these two women. Villasenor-Saucedo fled the scene and LMPD Officers later obtained a Criminal Complaint from Jefferson County District Court charging Villasenor-Saucedo with Leaving the Scene of a Fatal Hit and Run Accident. A warrant has been issued for Villasenor-Saucedo’s arrest.
Soon after the fatal accident, it was learned that Villasenor-Saucedo was a Mexican national illegally present in the United States. Upon learning of Villasenor-Saucedo’s illegal immigration status in the United States, the Immigration and Customs Enforcement (ICE) office began investigating Villasenor-Saucedo and found that he had previously been deported from the United States on eight occasions and did not have lawful authority to be present in the United States.
If convicted, Villasenor-Saucedo faces maximum potential penalty of no more than 2 years in prison.
Assistant United States Attorney Daniel P. Kinnicutt is prosecuting the case. The Department of Homeland Security (DHS), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Louisville Metropolitan Police Department (LMPD) conducted the investigation.