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Wednesday 7 December 2016
Houston Men Charged in Attempted Heist of Armored CarRead the Press Release
HOUSTON – A total of four men have been taken into custody and charged in relation to the attempted robbery of an armored car at an Amegy Bank today in Houston, announced U.S. Attorney Kenneth Magidson.
The Houston Police Department (HPD) conducted a law enforcement operation today that resulted in the arrest of Marc Anthony Hill, 46, Trayvees Duncan-Bush, 29, and Nelson Alexander Polk, 37. A fourth man - John Edward Scott, 40 – fled, but was later apprehended. They are expected to make their initial appearances before U.S. Magistrate Judge Dena Palermo tomorrow at 10:00 a.m.
The federal criminal complaint filed today alleges the men conspired for weeks and planned the robbery of the armored car that was scheduled to service the Amegy Bank located at 400 North Sam Houston Tollway East in Houston. The defendants also allegedly planned an attempted murder of the armored car courier.
With the exception of Scott, all were taken into custody at the location. During the enforcement action, another suspect fired at officers as they attempted his arrest. He was shot and later died as a result of his injuries.
The defendants are charged with conspiracy to commit interference with commerce by robbery and aiding and abetting the use of a firearm during a crime of violence. If convicted, they face up to 20 years in federal prison for the robbery and a mandatory minimum five-year-term of imprisonment for the firearm charge.
The FBI and HPD conducted the investigation with assistance by the Harris County District Attorney’s Office. Assistant U.S. Attorneys Richard Hanes and Heather Winter are prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Honduran National Pleads Guilty to Illegal Re-EntryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that OLVIN CASTILLO-CRUZ, age 34, pleaded guilty today to a one count indictment that charged him with illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a).
According to court documents, CASTILLO-CRUZ reentered the United States after he was previously deported on January 19, 2011.
CASTILLO-CRUZ faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment. U. S. District Judge Martin Feldman set sentencing for February 8, 2017.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Grant Man Sentenced to 77 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced today that, DUSTIN KYLE HARVEY, age 27, of Grant, Oklahoma, was sentenced to 77 months imprisonment and 3 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).
The Indictment alleged that on or about April 15, 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, which had been shipped and transported in interstate commerce.
The charge arose from an investigation by the Choctaw Tribal Police, and the Federal Bureau of Investigation.
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.
Gardiner Man Sentenced to Seven Years for Trafficking Bath Salts and HeroinRead the Press Release
Contact: Daniel J. Perry
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Luke Greenlaw, 43, of Gardiner, Maine, was sentenced today in U.S. District Court by Judge Jon D. Levy to seven years in prison and five years of supervised release for distributing bath salts and heroin.
According to Court records, from at least February through July 2015, Greenlaw was part of a conspiracy that distributed bath salts and heroin throughout the state. The heroin was obtained from New Hampshire and Massachusetts and bath salts were obtained through the mail from a source outside the United States.
This case was investigated by the U.S. Drug Enforcement Administration, the Scarborough and Portland Police Departments and the Maine Drug Enforcement Agency.
GNC Enters into Agreement with Department of Justice to Improve its Practices and Keep Potentially Illegal Dietary Supplements Out of the MarketplaceRead the Press Release
The world’s largest dietary supplement retailer, GNC Holdings Inc. (GNC), has entered into a wide-ranging agreement with the Department of Justice to reform its practices related to potentially unlawful dietary ingredients and dietary supplements, and has further promised to embark on a series of voluntary initiatives designed to improve the quality and purity of dietary supplements, the Department of Justice announced today. The non-prosecution agreement resolves GNC’s liability for selling certain dietary supplements produced by a firm currently under indictment. As part of the agreement, GNC has agreed to pay $2.25 million to the U.S. government and cooperate in dietary supplement investigations conducted by the government.
A lengthy investigation conducted by the U.S. Food and Drug Administration (FDA), the U.S. Attorney’s Office for the Northern District of Texas, and the Consumer Protection Branch of the Department of Justice’s Civil Division revealed that GNC’s practices related to ensuring the legality of products on its shelves were lacking.
According to an agreed-upon statement of facts that accompanies the non-prosecution agreement, GNC engaged in acts and omissions that allowed a misbranded supplement— OxyElite Pro Advanced Formula, a product of Dallas-based USPlabs LLC (USP Labs)—to be sold at GNC locations nationwide in 2013. The statement of facts notes that GNC sold the product based on representations from USP Labs that ingredients contained in the product complied with the law. It further notes that GNC did not undertake additional testing or require additional certifications to confirm such representations or to verify that the ingredients in the product were as represented.
USP Labs was indicted in November 2015 and is awaiting trial. The indictment alleges, among other things, that USP Labs engaged in a conspiracy to import ingredients from China using false certificates of analysis and false labeling, and then lied about the source and nature of those ingredients after it put them in its products. According to the indictment, USP Labs told some of its retailers and wholesalers that it used natural plant extracts in some of its products, when in fact it was using synthetic stimulants manufactured in a Chinese chemical factory.
Today’s resolution requires GNC to commit to certain changes designed to prevent unlawful dietary supplements from reaching its shelves:
- First, GNC has agreed that, upon learning that the FDA has issued a public written notice indicating that a purported dietary supplement or an ingredient contained in a purported dietary supplement is not legal and/or not safe, GNC will take immediate action to suspend the sale of such a product or products.
- Second, GNC will establish two lists—a “restricted list” containing ingredients that are not to be used in dietary supplements and a “positive list” containing ingredients that are approved for sale. Although GNC has agreed that the lists it creates will not have the force of law, GNC will use these lists to guide the company in determining what products it will approve for sale. Products containing novel ingredients that do not appear on either list will, GNC agreed, require further internal action and approval before being offered for sale.
- Third, GNC will substantially revise its internal approach to dealing with the vendors whose products GNC sells, including requiring more explicit guarantees from its vendors that their products do not contain ingredients on the “restricted list” and that their products comply with federal law.
- Fourth, GNC will voluntarily work to develop an industry-wide quality seal program. When this quality seal is implemented, GNC has agreed to stop paying its retail salespeople bonus commissions, or “promotional money,” to direct customers to products in its stores not carrying the seal.
- Finally, GNC will update its adverse event reporting policy to ensure that its employees understand the proper procedures to employ if a customer complains of injuries associated with a dietary supplement bought at GNC.
“Unlawful dietary supplements are an important enforcement priority for the department,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Today’s resolution is a significant step forward in reforming an industry rife with alarming practices. Companies like GNC need to do more to ensure that they are not selling products containing questionable and untested ingredients. The American public deserves better, and the Department of Justice appreciates GNC’s efforts in resolving its issues and moving forward in the best interests of American consumers.”
“I am pleased with this agreement and hold steadfast that those engaged in the sale of dietary supplements to the public must adhere to higher standards to ensure consumers are protected from lax business practices that could endanger them,” said U.S. Attorney John R. Parker of the Northern District of Texas.
“Protecting the public from unsafe ingredients in dietary supplements is one of FDA’s most important responsibilities,” said Director George M. Karavetsos of FDA Office of Criminal Investigations. “We will continue to work with industry to ensure that supplements distributed in the U.S. marketplace do not contain harmful ingredients.”
The matter was handled by Consumer Protection Branch Trial Attorneys David Sullivan and Patrick Runkle, and Northern District of Texas Assistant U.S. Attorney Errin Martin. FDA Office of Chief Counsel Attorneys Nathan Sabel and Michael Shane supported the matter, which was investigated by the FDA Office of Criminal Investigations, Dallas Domicile.
Today’s action is part of the government’s efforts, in collaboration with the Uniformed Services University of the Health Sciences’ Consortium for Health and Military Performance (CHAMP), to provide educational resources for service members and the general public to protect them from risky dietary supplements. Through its Operation Supplement Safety (OPSS), and in partnership with the U.S. Anti-Doping Agency (USADA) and Supplement 411, OPSS provides important information to service members and consumers about dietary supplements. In 2015, OPSS launched a High-Risk Supplement List mobile application (accessible on iOS and Android). For more information, consult the OPSS website. To access the educational resources USADA provides for athletes and general consumers to help realize, recognize and reduce the risks associated with using supplement products, visit USADA’s website at http://www.supplement411.org.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of Texas, visit its website at https://www.justice.gov/usao-ndtx.
Gnc Enters into Agreement with Department of Justice to Improve Its Practices and Keep Potentially Illegal Dietary Supplements Out of the MarketplaceRead the Press Release
WASHINGTON - The world’s largest dietary supplement retailer, GNC Holdings Inc. (GNC), has entered into a wide-ranging agreement with the Department of Justice to reform its practices related to potentially unlawful dietary ingredients and dietary supplements, and has further promised to embark on a series of voluntary initiatives designed to improve the quality and purity of dietary supplements, the Department of Justice announced today. The non-prosecution agreement resolves GNC’s liability for selling certain dietary supplements produced by a firm currently under indictment. As part of the agreement, GNC has agreed to pay $2.25 million to the U.S. government and cooperate in dietary supplement investigations conducted by the government.
A lengthy investigation conducted by the U.S. Food and Drug Administration (FDA), the U.S. Attorney’s Office for the Northern District of Texas, and the Consumer Protection Branch of the Department of Justice’s Civil Division revealed that GNC’s practices related to ensuring the legality of products on its shelves were lacking.
According to an agreed-upon statement of facts that accompanies the non-prosecution agreement, GNC engaged in acts and omissions that allowed a misbranded supplement— OxyElite Pro Advanced Formula, a product of Dallas-based USPlabs LLC (USP Labs)—to be sold at GNC locations nationwide in 2013. The statement of facts notes that GNC sold the product based on representations from USP Labs that ingredients contained in the product complied with the law. It further notes that GNC did not undertake additional testing or require additional certifications to confirm such representations or to verify that the ingredients in the product were as represented.
USP Labs was indicted in November 2015 and is awaiting trial. The indictment alleges, among other things, that USP Labs engaged in a conspiracy to import ingredients from China using false certificates of analysis and false labeling, and then lied about the source and nature of those ingredients after it put them in its products. According to the indictment, USP Labs told some of its retailers and wholesalers that it used natural plant extracts in some of its products, when in fact it was using synthetic stimulants manufactured in a Chinese chemical factory.
Today’s resolution requires GNC to commit to certain changes designed to prevent unlawful dietary supplements from reaching its shelves:
- First, GNC has agreed that, upon learning that the FDA has issued a public written notice indicating that a purported dietary supplement or an ingredient contained in a purported dietary supplement is not legal and/or not safe, GNC will take immediate action to suspend the sale of such a product or products.
- Second, GNC will establish two lists—a “restricted list” containing ingredients that are not to be used in dietary supplements and a “positive list” containing ingredients that are approved for sale. Although GNC has agreed that the lists it creates will not have the force of law, GNC will use these lists to guide the company in determining what products it will approve for sale. Products containing novel ingredients that do not appear on either list will, GNC agreed, require further internal action and approval before being offered for sale.
- Third, GNC will substantially revise its internal approach to dealing with the vendors whose products GNC sells, including requiring more explicit guarantees from its vendors that their products do not contain ingredients on the “restricted list” and that their products comply with federal law.
- Fourth, GNC will voluntarily work to develop an industry-wide quality seal program. When this quality seal is implemented, GNC has agreed to stop paying its retail salespeople bonus commissions, or “promotional money,” to direct customers to products in its stores not carrying the seal.
- Finally, GNC will update its adverse event reporting policy to ensure that its employees understand the proper procedures to employ if a customer complains of injuries associated with a dietary supplement bought at GNC.
“Unlawful dietary supplements are an important enforcement priority for the department,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Today’s resolution is a significant step forward in reforming an industry rife with alarming practices. Companies like GNC need to do more to ensure that they are not selling products containing questionable and untested ingredients. The American public deserves better, and the Department of Justice appreciates GNC’s efforts in resolving its issues and moving forward in the best interests of American consumers.”
“I am pleased with this agreement and hold steadfast that those engaged in the sale of dietary supplements to the public must adhere to higher standards to ensure consumers are protected from lax business practices that could endanger them,” said U.S. Attorney John R. Parker of the Northern District of Texas.
“Protecting the public from unsafe ingredients in dietary supplements is one of FDA’s most important responsibilities,” said Director George M. Karavetsos of FDA Office of Criminal Investigations. “We will continue to work with industry to ensure that supplements distributed in the U.S. marketplace do not contain harmful ingredients.”
The matter was handled by Consumer Protection Branch Trial Attorneys David Sullivan and Patrick Runkle, and Northern District of Texas Assistant U.S. Attorney Errin Martin. FDA Office of Chief Counsel Attorneys Nathan Sabel and Michael Shane supported the matter, which was investigated by the FDA Office of Criminal Investigations, Dallas Domicile.
Today’s action is part of the government’s efforts, in collaboration with the Uniformed Services University of the Health Sciences’ Consortium for Health and Military Performance (CHAMP), to provide educational resources for service members and the general public to protect them from risky dietary supplements. Through its Operation Supplement Safety (OPSS), and in partnership with the U.S. Anti-Doping Agency (USADA) and Supplement 411, OPSS provides important information to service members and consumers about dietary supplements. In 2015, OPSS launched a High-Risk Supplement List mobile application (accessible on iOS and Android). For more information, consult the OPSS website. To access the educational resources USADA provides for athletes and general consumers to help realize, recognize and reduce the risks associated with using supplement products, visit USADA’s website at http://www.supplement411.org.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of Texas, visit its website at https://www.justice.gov/usao-ndtx.
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Frederick County Man Pleads Guilty in Federal Court to Sexually Exploiting a Toddler to Produce Child PornographyRead the Press Release
Baltimore, Maryland –William H. Steinhaus IV, age 34, of Brunswick, Maryland, pleaded guilty on December 6, 2016, to sexual exploitation of a child to produce child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation; Frederick County Sheriff Charles A. “Chuck” Jenkins; Frederick County State’s Attorney J. Charles Smith; and Interim Chief Peter Newsham of the Metropolitan Police Department.
According to his plea agreement, between December 8 and 9, 2014, Steinhaus had a number of sexually explicit conversations on Kik, an instant messaging application, with other Kik users regarding their shared sexual interest in prepubescent children. Steinhaus took pictures using his iPhone or iPad of a two year old girl engaged in sexually explicit conduct and distributed them to approximately 25 other Kik users.
Steinhaus admitted that during those two days, he and another Kik user exchanged approximately 290 messages, including a discussion as to how Steinhaus could best sexually abuse the toddler. Steinhaus sent the user images of the child and Steinhaus engaged in sexually explicit conduct; and pictures of a couch, stating “That’s where tw[sic] assault will happen.”
Also on December 8, 2014, Steinhaus and a second Kik user exchanged approximately 293 messages. Steinhaus sent pictures of the child and Steinhaus engaged in sexually explicit conduct; and pictures of a couch, stating “That’s where the assault is going to happen.”
According to his plea agreement, between December 8 and 9, 2014, Steinhaus exchanged approximately 419 messages on Kik with an undercover law enforcement officer, whom Steinhaus had emailed earlier on December 8, 2014. Steinhaus sent the undercover officer approximately 30 pictures he had taken of the toddler, several of which contained images of the child and Steinhaus engaged in sexually explicit conduct.
Through emergency legal requests, on December 9, 2014, officers identified Steinhaus as the subscriber to the Kik and Yahoo accounts used to communicate with the undercover officer. Officers began surveillance of Steinhaus’ residence in advance of the execution of a search warrant. During the surveillance, Steinhaus began sending the undercover officer images of himself with the victim in the background. Steinhaus told the undercover officer that he would be alone with the victim and would continue the sexual abuse of the child. Officers used a ruse to get Steinhaus out of the residence. Steinhaus came out of the house with his iPhone, and the officers identified themselves. Steinhaus fought with the officers as they tried to secure his iPhone, but they were able to secure and access the device. Steinhaus was arrested and the victim was rescued by the officers.
As part of his plea agreement, Steinhaus must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA). In addition, a provision of his plea agreement in the federal case is that Steinhaus must plead guilty to related charges pending against him in the Circuit Court for Frederick County, Maryland.
Steinhaus and the government have agreed that if the Court accepts the plea agreement Steinhaus will be sentenced to between 23 and 38 years in prison, followed by lifetime supervised release. Chief U.S. District Judge Catherine C. Blake has scheduled sentencing for February 24, 2017, at 9:15 a.m.
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. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Frederick County Sheriff’s Office, Frederick County State’s Attorney’s Office and Metropolitan Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Judson T. Mihok, who are prosecuting the case.
Former Teacher’s Assistant Sentenced to 8 Years in Federal Prison for Distribution of Child PornographyRead the Press Release
LOS ANGELES – A West Los Angeles man who previously worked as a teacher’s assistant was sentenced today to 96 months in federal prison for distributing child pornography via a peer-to-peer file-sharing system on his computer. The images involved in this case depicted children under the age of 15, including child images deemed to be “sadistic” under the federal sentencing rules.
Steven Petlak, 53, was sentenced by United States District Judge Michael W. Fitzgerald. Following the completion of his prison term, Petlak will be on supervised released for the rest of his life.
Petlak pleaded guilty in July to one count of distribution of child pornography. In a plea agreement filed with the court, Petlak admitted that, on multiple dates, he used peer-to-peer software on his computer hard drive to share graphic images of child molestation.
“Predators who seek out child pornography online threaten the safety and well-being of the most vulnerable in our real-world community,” said United States Attorney Eileen M. Decker. “This defendant’s conduct exemplifies a horrific and dark part of our society, and the sentence today reflects the harm caused by defendants who trade in these heinous materials.”
In court filings, Petlak admitted that he made an effort to seek out the worst types of child pornography he could find – in Petlak’s words, “the really dark stuff.” While on pretrial release in this matter, Petlak was caught by law enforcement looking at what appeared to be graphic images of a juvenile female.
Following his release from prison, Petlak will be required to register as a sex offender and to avoid places where children are present.
This investigation was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Reema M. El-Amamy of the Organized Crime Drug Enforcement Task Force Section.
Former TSA Employee Sentenced to 20 Years in Prison for Child PornographyRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Raymond Kinney, age 55, of Jacksonville, was sentenced to 20 years’ imprisonment for distribution of child pornography. Kinney, a former Transportation Security Administration (TSA) employee, was arrested while attempting to meet who he believed were two minors for sex after contacting them on the internet.
“Protecting the children of Arkansas is one of our highest priorities, and our office will never stop working to bring child predators like Kinney to justice,” Thyer said. “I often emphasize that parents must be aware of the dangers children face online and protect them on the internet just as they would in any other public place, and this case demonstrates exactly why.”
Kinney was arrested in Russellville in January 2015, when he drove to meet two minors with whom he planned to have sex, according to online chats that were recovered from his account. Prior to his arrest, Kinney was a Transportation Security Inspector for the TSA.
The investigation began when officers monitoring a social networking site discovered an individual who was seeking a minor for sexual contact. Officers, posing as minors, began undercover conversations with this individual, later discovered to be Raymond Kinney. Kinney sent several pictures and videos of child pornography over the internet to the undercover officers.
The parties ultimately arranged a meeting at a Russellville motel, and Kinney told the undercover officers about his sexual plans for the two minor children. When Kinney arrived at the hotel, instead of meeting the two minors, he was arrested. A search revealed that Kinney had brought sex toys and children’s clothing with him.
“Child predators come from all walks of life, and parents everywhere must be vigilant because these threats aren’t always easily seen,” Homeland Security Investigations New Orleans Special Agent in Charge Raymond R. Parmer Jr. said “This case shows HSI is committed to investigating and seeking prosecution of dangerous criminals regardless of a person’s position in society in order to protect our children.”
Kinney was indicted in February 2015 and pleaded guilty in May 2016. At his change of plea hearing he admitted to using the online username “luvsyngteengirls” and sending several pictures and videos of child pornography over the internet.
On Wednesday, United States District Judge Susan Webber Wright imposed the sentence of 20 years, the maximum sentence allowed by law, which was jointly recommended by the parties in exchange for the United States not charging Kinney with additional criminal conduct that was also discovered during the investigation, including sexual enticement of a minor.
In addition to his federal sentence, Kinney was also convicted of attempted rape in state court and received a sentence of 244 months, which will run concurrently with his federal sentence.
The investigation was conducted by the Russellville Police Department and Homeland Security Investigations. The case was prosecuted by Assistant United States Attorneys Allison W. Bragg and Kristin Bryant.
Former TDCJ Parole Officer Sentenced to 24 years for Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A former parole officer with the Texas Department of Criminal Justice (TDCJ) has been ordered to federal prison following her conviction of sexual exploitation of a child, announced U.S. Attorney Kenneth Magidson. Saralyn Ann Proschko, 48, of Victoria, pleaded guilty June 7, 2016.
Today, U.S. District Judge John D. Rainey ordered her to serve 288 months in prison. In handing down the sentence, Judge Rainey noted that the crime was terrible and shouldn’t have happened, further mentioning it was one of the most difficult cases to address as a judge, defense attorney and as a prosecutor. Proschko was further ordered to pay $2,537 in restitution to the victim and will serve five years of supervised release following completion of her prison term, during which times she will have to comply with numerous requirements designed to restrict her access to children and the Internet. She will also be ordered to register as a sex offender.
Her boyfriend - David Ray McGee, 49, of Wallis – was also convicted and later sentenced to 27 years in federal prison.
In July 2015, authorities with the Victoria Police Department (VPD) responded to the TDCJ - District Parole Office in Victoria in reference to allegations of possession of child pornography. Officers met with Proschko and discovered an electronic video on her cellular telephone of a juvenile female engaged in a sexual act. Further investigation led to the discovery and charging of McGee in relation to the allegations.
The court heard that McGee had met Proshko on a dating website. During their conversations, he had indicated he had a sexually fantasy. Soon after, Proschko began texting him photos of herself penetrating a young girl with various sexual objects. Eventually, that led to him sexually assaulting the young girl who had begged him to stop during the attack. In at least one instance, Procshko had actually held the toddler down while McGee assaulted her.
Proschko will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of the investigative efforts of Homeland Security Investigations, Texas Attorney General’s Office - Internet Crimes Against Children (ICAC), Houston-Metro ICAC Task Force and the Victoria Police Department.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, 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."
Former President of the Nicaraguan Soccer Federation and FIFA Development Officer Pleads Guilty to Racketeering and Corruption ChargesRead the Press Release
Earlier today in federal court in Brooklyn, Julio Rocha pleaded guilty to racketeering conspiracy and wire fraud conspiracy in connection with his receipt of bribes in exchange for his awarding contracts for the media and marketing rights to FIFA World Cup qualifier matches. Rocha, the president of the Nicaraguan soccer federation (FENIFUT) from 1998 to 2012, was the FIFA development officer for Central America and the Spanish-speaking Caribbean at the time of his arrest in Zurich, Switzerland on May 27, 2015. As part of his plea, Rocha also agreed to forfeit over $292,000. At sentencing, Rocha faces a maximum sentence of 20 years for each count. Today’s plea proceeding took place before United States District Judge Pamela K. Chen.
The guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director in Charge, FBI, New York Field Office; and Acting Special Agent in Charge Anthony J. Orlando, IRS Criminal Investigation, Los Angeles Field Office.
According to court filings and facts presented during the plea proceeding, Rocha negotiated and accepted bribes totaling over $150,000 in exchange for exercising his influence as the president of FENIFUT to award a Florida sports marketing company named Traffic Sports USA, Inc. (Traffic) a contract for the media and marketing rights to the Nicaraguan national soccer team’s home World Cup qualifier matches for multiple editions of the World Cup, including the 2014 and 2018 editions. These bribes were transmitted from U.S. bank accounts, often through intermediaries, to accounts Rocha controlled. After he stepped down as president of FENIFUT and was employed by FIFA as a development officer, Rocha attempted to facilitate Traffic’s negotiations with a high-ranking FENIFUT official for the rights to Nicaragua’s World Cup qualifier matches for the 2022 edition of the World Cup in an effort to receive for himself a portion of any bribe money paid for those rights.
In addition, Rocha used his position as FENIFUT president to further enrich himself through other schemes, including one in which he took kickbacks from a Miami company that he had contracted with on behalf of FENIFUT for the purpose of obtaining assistance in securing corporate sponsorships for the federation.
The guilty plea announced today is part of an investigation into corruption in international soccer being led by the U.S. Attorney’s Office for the Eastern District of New York, the FBI New York Field Office, and the IRS-CI Los Angeles Field Office. The prosecutors in Brooklyn are receiving considerable assistance from attorneys in various parts of the Justice Department’s Criminal Division in Washington, D.C., including the Office of International Affairs, the Organized Crime and Gang Section, the Asset Forfeiture and Money Laundering Section, and the Fraud Section, as well as from INTERPOL Washington.
Assistant U.S. Attorneys Evan M. Norris, Paul Tuchmann, Keith D. Edelman, and Brian D. Morris of the Eastern District of New York are in charge of today’s prosecution.
The government’s investigation is ongoing.
The Defendant:
JULIO ROCHA
Age: 66
Nationality: NicaraguaE.D.N.Y. Docket No. 15 CR 252 (S-1)
Former O'Fallon, Missouri Man Pleads Guilty to Operating Large Stolen Property Fraud RingRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that yesterday, in federal court in Benton, Illinois, Jason J. Parmeley, 42, formally of O’Fallon, MO, pled guilty to numerous federal crimes arising from his leadership of a large stolen property ring that operated in the Metro East and other locations.
The charges against Parmeley arose from an indictment that was returned by a federal grand jury in East St. Louis, IL, on October 20, 2015. In addition to Parmeley, the indictment charged fourteen other individuals with participating in the stolen property ring.
At his plea hearing today, Parmeley admitted he used the internet to obtain credit account numbers that individuals and businesses had with retail stores, such as Home Depot, Lowes, Menards, and rental stores, such as SunBelt Rentals. Using this information, Parmeley placed orders with the stores in the names, and under the credit accounts, of the individuals and businesses. The items Parmeley ordered frequently consisted of appliances, computers, expensive tools, and construction equipment. Parmeley further admitted that, after he placed the orders, he dispatched drivers to go to the stores and pick up the items. The items were then sold at prices substantially below retail. The profits were wire transferred back to Parmeley in Mexico, where
Parmeley lived and from where he controlled the fraud ring. Parmeley pled guilty to one count of conspiracy to commit wire fraud, one count of conspiracy to transport property obtained by fraud in interstate commerce, four counts of wire fraud, two counts of interstate transportation of property obtained by fraud, six counts of money laundering, and two counts of aggravated identity theft.
In late August of 2015, Mexican Immigration Authorities deported Parmeley from Mexico. Parmeley has been held in federal custody since that time.
Earlier this year, five defendants in the case were sentenced to prison for their roles in this conspiracy. On June 7, 2016, James D. Litchfield, 59, owner of Big Jim’s Autorama in Madison, Illinois, was sentenced to three years in prison, and his brother, Ryan P. Litchfield, 37, of O’Fallon, MO, was sentenced to one year in prison. Both of the brothers had admitted to receiving large quantities of stolen property. On October 4, 2016, Shannan M. Flora, 42, of O’Fallon, MO, and Rigoberto Gutierrez, 28, of Compton, CA, were both sentenced to fifteen months in prison. Flora performed a wide variety of tasks for the conspiracy, including arranging sales of stolen goods. Gutierrez coordinated shipments of stolen goods in California. On October 12, 2016, Russell J. Witt, 34, of Mount Clemens, Michigan, was sentenced to 12 months in prison. Witt worked as a driver for the conspiracy for over a year. Three other defendants, Nicholas A. Brockman, 20, of Wentzville, MO, and Benedict G. Pellerito, 56, of Troy, Missouri, and Bryce E. Atkinson, 22, of Lake Saint Louis, Missouri, received sentences of probation. Brockman, Pellerito, and Atkinson all worked as drivers for the conspiracy for short periods of time.
Five additional defendants have pled guilty to their roles in the conspiracy and are awaiting sentencing. They are: Tony G. Robertson, 44, of O’Fallon, Missouri; Sean A. Shields, 48, of Springfield, Missouri; Alice J. Hembree, 44, of Moscow Mills, Missouri; Steven J. Belcher, 44, of
Wentzville, Missouri; and Jesse S. Urias, 36, of Los Angeles, California. The trial of the remaining defendant, Angel Speed, 25, formerly of O’Fallon, Missouri, is scheduled to begin on February 6, 2017.
The investigation is being conducted by agents from the St. Louis Division of the Federal Bureau of Investigation ("FBI"). The FBI has received substantial assistance from many state and local police departments in numerous jurisdictions, including the Metro East Auto Theft Task Force and the California Highway Patrol. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
Former Gate City Woman Pleads Guilty in Tax Refund and Identity Theft SchemeRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced that Gladys Maria Pena Dominguez pleaded guilty in federal court to participating in an illegal scheme to use stolen personal identifying information to file false federal income tax returns and steal hundreds of thousands of dollars from the U.S. Treasury. Pena pleaded guilty to one count each of the federal crimes of Theft of Government Property, Aggravated Identity Theft, and Conspiracy. Pena, 34 years old, is a resident of the Bronx, N.Y., and a former resident of Nashua, N.H.
According to statements made during the hearing, from January 2012 to December 2013, Pena couriered at least 130 U.S. Treasury tax refund checks from New York, N.Y., to a co-conspirator in New Hampshire, who gave Pena cash in return. As Pena knew, the checks had been obtained from the Internal Revenue Service by conspirators who induced the IRS to issue the checks based upon false tax returns that the co-conspirators had filed using the names and Social Security numbers of real people without their consent or knowledge. The co-conspirators also reported false mailing addresses on the tax returns to cause the IRS to mail the fraudulently derived Treasury tax refund checks to locations that they controlled. The government alleged that the aggregate face value of the checks exceeds $1.1 million.
United States District Judge Landya McCafferty took Pena’s guilty plea and scheduled her sentencing for March 16, 2017. Pena is subject to a statutory maximum sentence of seventeen years in prison, fines of up to $750,000 or both.
This matter was investigated by the Internal Revenue Service’s Criminal Investigation unit, principally by its Manchester, N.H., field office, with assistance from its field office in New York, N.Y. The case is being prosecuted by Assistant United States Attorney Bill Morse.
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Former Des Moines Tax Preparer Charged with Tax FraudRead the Press Release
DES MOINES, IA – On November 21, 2016, Lony Tap Gatwas, 47, of Ames, Iowa, was charged in an 18-count indictment with preparing and presenting false tax returns, wire fraud, and aggravated identity theft, announced United States Attorney Kevin E. VanderSchel.
According to the indictment, from on or about February 2011, through at least March 2013, Gatwas operated a tax preparation business in Des Moines and prepared and filed federal personal income tax returns on behalf of taxpayers. Gatwas devised a scheme to defraud by claiming dependents on taxpayers’ returns when he knew the dependents did not meet IRS requirements, such as living with the taxpayers for a certain length of time out of the year, and being supported financially by the taxpayer. Gatwas charged taxpayers an additional fee for each dependent he put on their return.
Gatwas has a trial date of January 30, 2017, before United States District Court Judge Rebecca Goodgame Ebinger, at the Des Moines Federal Courthouse. Preparing and presenting a false tax return is punishable by a maximum of three years imprisonment and a maximum $100,000 fine. The crime of wire fraud has a maximum prison term of 20 years, and up to a $250,000 fine. Gatwas faces a minimum prison term of two years and up to a $250,000 fine for the crime of aggravated identity theft.
An indictment is only an accusation, and the defendant is presumed innocent unless and until proven guilty.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Former Canadian MoneyGram and Western Union Agent Sentenced on Fraud and Money Laundering Conspiracy ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Western Union and MoneyGram agent,
Chima Nneji, age 55, of Toronto, Canada, was sentenced by Chief United States District Court Judge Christopher C. Conner in Harrisburg, to 45 months in prison for conspiring to defraud hundreds of American residents out of more than $900,000 via mass marketing consumer fraud schemes.
Chief Judge Conner also ordered Nneji to pay restitution in the amount of $381,729. The lower restitution amount is due in part to monies compensated to victims as part of the U.S. v. MoneyGram deferred prosecution agreement which established a $100 million restitution fund for MoneyGram customers that were victims of consumer fraud.
According to United States Attorney Bruce D. Brandler, in September 2012, Chima Nneji conspired with his codefendant brother, William Nneji, codefendant Alex Mgbolu, and other unnamed individuals between July 2002 and May 2010 to commit the crimes. Chima Nneji was extradited to the United States from Canada and was arraigned on his charges in Harrisburg in July 2015.
Chima Nneji was the owner/operator of a Western Union agency called Advanced Computer and a MoneyGram agency known as Hallmark Services, in Toronto, Canada. Between November 2004 and April of 2007, international mass marketing fraudsters instructed hundreds of consumer fraud victims across the United States to send Western Union and MoneyGram money transfers to Advanced Computer Service and Hallmark Services. The transfers were then paid out by Chima Nneji, and his brother. Nneji and his brother cashed out the money transfers in a manner that maintained the anonymity of the fraudsters, by entering false names and identification data into the Western Union and MoneyGram computer data bases. Analysts from the Toronto Police Service and U.S. Postal Inspection Service determined that over 90% of the payee addresses and identification numbers entered at Advanced Computer Service and Hallmark Services were invalid. For his role in the scheme, Chima Nneji retained a portion of the money transfers before sending the balance of the funds on to the fraudsters.
Law enforcement personnel sent questionnaires to hundreds of MoneyGram customers in the United States whose $1,000 plus money transfers were paid out at Hallmark Services. Not a single sender reported that their transfer was sent for a legitimate purpose. One hundred ninety-eight customers reported that their money transfers, which totaled $579,436, were fraud-induced. The known total dollar loss associated with all consumer fraud induced money transfers paid out at Advanced Computer Service and Hallmark Services is $915,978.
Codefendant William Nneji is a fugitive from justice. Codefendant Alex Mgbolu pled guilty to the charges before Judge Conner in August 2016, and is awaiting sentencing.
The case is part of an ongoing investigation by the Harrisburg Office of the U.S. Postal Inspection Service and is being prosecuted by Assistant United States Attorney Kim Douglas Daniel.
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Former Buffalo Police Officer Sentenced for Deprivation of Civil RightsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Robert Eloff Jr., 41, of Buffalo, NY, who was convicted of deprivation of rights under color of law, was sentenced to three months in prison and one year supervised release to include three months home detention by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joseph M. Guerra, who handled the case, stated that the defendant pleaded guilty in connection with an incident at Molly’s Pub in Buffalo in 2014. In the early morning hours of May 11, 2014, William Sager was pushed down a flight of stairs at Molly’s Pub by Jeffrey Basil. Sager later died of his injuries and Basil pleaded guilty in state court to manslaughter.
At the time Sager was pushed by Basil, Eloff was in Molly’s Pub working security for the bar. Eloff had been employed as a Buffalo Police Officer since 2007. While employed at Molly’s Pub, Eloff wore clothing and articles of equipment which identified him as an off-duty police officer.
A victim identified as D.H. was with William Sager the night Sager was pushed down the stairs. D.H saw people carry Sager outside after he was pushed down the stairs, and upon leaving the bar, saw Sager propped up against a wall. When D.H. asked BPD officers what happened, Eloff grabbed D.H. and told him to get out of there. D.H. then walked away and called 911. When other officers arrived, D.H. asked for Eloff’s name and badge number. Eloff, in response arrested and handcuffed D.H. and seated him next to Sager. D.H. was later taken from the scene by other officers.
Eloff told BPD officers that D.H. had physically interfered with Eloff and others inside the bar and had refused to leave the bar when directed to do so. A later review of surveillance video from Molly’s Pub revealed that D.H. never interfered with Eloff in the bar and never refused a command to leave the bar. In essence, Eloff caused D.H. to be falsely arrested for trespassing, a crime D.H. never committed.
The sentencing is the culmination of an investigation by Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Florida Resident Pleads Guilty to Conspiracy in Connection with Jamaican Based Lottery Fraud SchemeRead the Press Release
Cassandra Althea Palmer, a resident of Florida, pleaded guilty for her role in a Jamaican-based fraudulent lottery scheme, the Department of Justice announced today.
Palmer, 33, pleaded guilty before U.S. District Court Judge Marcia G. Cooke in the Southern District of Florida to one count of conspiracy to commit mail and wire fraud in connection with a fraudulent lottery scheme. An Information was filed on Oct. 26, charging Palmer with conspiracy to commit mail and wire fraud.
“The Justice Department is committed to combatting international lottery fraud schemes preying on innocent Americans,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The help of a co-conspirator in the United States makes it easier for these international fraud schemes to succeed. We will continue to investigate and often prosecute individuals residing in the United States or abroad when they commit fraud against Americans.”
As part of her guilty plea, Palmer agreed that, had the case gone to trial, the United States would have proved the following facts beyond a reasonable doubt: In February 2014, a woman from Worcester County, Maryland, was contacted by an individual in Jamaica and told that she had won a multi-million dollar lottery prize, and that in order to collect her lottery prize, she first had to pay taxes and fees. The victim did not win a lottery prize and would not collect any winnings. Palmer knew about the fraud scheme and agreed with her co-conspirator in Jamaica to participate in the scheme. Palmer participated in the fraudulent scheme in a number of ways. Among other things, she worked with her co-conspirator in Jamaica, to recruit a friend in Maryland to receive $7,500 of the victim’s money. She and her friend kept a portion of the money, and Palmer wire transferred the rest to her Jamaican co-conspirator.
The fraudulent scheme ended when law enforcement officials learned of the fraud. Officials set up a sting, in which an undercover police officer posed as the victim and met Palmer’s friend at a fast food restaurant parking lot in Maryland. The purpose of the meeting was for the victim to hand over $32,500 in cash to Palmer’s friend in order for the victim to claim her purported lottery winnings. Law enforcement arrested Palmer’s friend on the spot, after she received $32,500 in cash from the officer.
Palmer faces a statutory maximum punishment of 20 years in prison, and a fine of $250,000 or twice the gross gain or loss resulting from the offense. Palmer must also pay restitution to the victim. Palmer’s sentencing is scheduled for March 22, 2017.
“The U.S. Postal Inspection Service is dedicated as part of its mission to ensure that these types of predatory schemes are investigated aggressively,” said U.S. Postal Inspector in Charge Antonio J. Gomez of the Miami Division. “It is imperative that we continue to work with our partners, both domestically and internationally, to protect our citizens who fall prey to these schemes so that the U.S. mail isn’t used in furtherance of them.”
This prosecution is part of the Department of Justice’s effort to work with federal and local law enforcement to combat fraudulent lottery schemes in Jamaica that prey on American citizens. According to the U.S. Postal Inspection Service, Americans have lost tens of millions of dollars to fraudulent foreign lotteries.
Principal Deputy Assistant Attorney General Mizer commended the U.S. Postal Inspection Service, the U.S. Department of Homeland Security and the Maryland State Police, who conducted the investigation, as well as the U.S. Attorney’s Office for the Southern District of Florida. The case was prosecuted by Trial Attorney David A. Frank and Counsel Melanie Singh of the Civil Division’s Consumer Protection Branch.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Florida, visit its website at https://www.justice.gov/usao-sdfl.
First Charges Brought in Investigation of Collusion in the Packaged Seafood IndustryRead the Press Release
Senior Vice President Agrees to Plead Guilty to Price-Fixing Conspiracy
The current senior vice president of sales of a leading packaged seafood company has agreed to plead guilty for his role in a conspiracy to fix the prices of packaged seafood such as canned tuna sold in the United States, the Department of Justice announced.
According to a one-count felony charge filed today in the U.S. District Court for the Northern District of California in San Francisco, Walter Scott Cameron and his co-conspirators agreed to fix the prices of packaged seafood from as early as 2011 until about 2013. In addition to his guilty plea, which is subject to court approval, Cameron has agreed to pay a criminal fine and cooperate with the division’s ongoing investigation.
“Today’s charge is the first to be filed in the Antitrust Division’s ongoing investigation into price fixing among some of the largest suppliers of canned tuna and other packaged seafood,” said Acting Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division. “All consumers deserve competitive prices for these important kitchen staples, and companies and executives who cheat those consumers will be held criminally accountable.”
“FBI San Francisco Division echoes the comments of the Justice Department’s Antitrust Division,” said Special Agent in Charge John F. Bennett of the FBI’s San Francisco Division. “These charges demonstrate our continued commitment to investigate and pursue those individuals and companies seeking to victimize consumers through illegal business practices that threaten our community’s ability to pay fair prices for food for their families.”According to the charge, Cameron and his co-conspirators discussed the prices of packaged seafood sold in the United States and agreed to fix the prices of those products. The defendant and his co-conspirators negotiated prices and issued price announcements for packaged seafood in accordance with the agreements they reached.
Today’s charge is the first to result from an ongoing federal antitrust investigation into the packaged seafood industry, which is being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Field Office. Anyone with information on price fixing, bid rigging or other anticompetitive conduct related to the packaged seafood industry should contact the Antitrust Division’s Citizen Complaint Center at (888) 647-3258, visit www.justice.gov/atr/contact/newcase.html, or call the FBI tip line at (415) 553-7400.
Cameron Information
Federal Inmate Indicted for Assaulting Corrections OfficerRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Daryl Johnson, age 32, an inmate at United States Penitentiary Canaan (USP Canaan), was indicted on December 6, 2016, by a federal grand jury on a charge of assaulting a federal employee.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Johnson kicked a corrections officer in the face during an altercation at the prison in September. The officer suffered minor injuries.
The case was investigated by the Federal Bureau of Investigation and officers at USP Canaan, and is being prosecuted by Assistant U.S. Attorney Sean A. Camoni.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Essex County, New Jersey, Man Sentenced to Five Years in Prison for Role in Oxycodone Distribution RingRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 60 months in prison for his role in a conspiracy to illegally obtain and distribute oxycodone in New Jersey, U.S. Attorney Paul J. Fishman announced.
Matthew Policarpio, 29, of Newark, New Jersey, previously pleaded guilty before U.S. District Judge Esther Salas to an indictment charging him with conspiracy to distribute oxycodone. Judge Salas imposed the sentence today in Newark federal court. His federal prison term will be served consecutively to his five-year state prison term for car theft.
According to documents filed in this case and statements made in court:
Using confidential sources, physical surveillance, and recorded text messages and telephone calls, investigators with the Drug Enforcement Administration (DEA) discovered that members and suppliers of a drug trafficking organization secured prescriptions for oxycodone and other controlled substances from various doctors in New Jersey, filled them at pharmacies in Belleville and elsewhere, and sold the drugs for a profit. The investigation identified Policarpio as a member of the drug trafficking organization.
Policarpio admitted that from Feb. 5, 2014, to Aug. 13, 2014, he personally purchased pills containing oxycodone from conspirators and then sold the pills to others. He admitted that in one instance, he arranged to buy 180 pills containing oxycodone from conspirators on June 12, 2014. He traveled to a pharmacy in East Orange, New Jersey, with conspirators and gave them $450, which they used to purchase 180 Endocet pills from the pharmacy. The pills were then provided to Policarpio, who resold them.
Oxycodone is a Schedule II controlled substance – meaning that it has a high potential for abuse, has a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence. The Endocet pills obtained and re-sold by Policarpio each contained 10 milligrams of oxycodone.
In addition to the prison term, Judge Salas sentenced Policarpio to three years of supervised release. His federal prison term will be served consecutively to the five-year state prison term he is now serving for car theft.
U.S. Attorney Fishman credited the DEA’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the OCDETF/Narcotics Unit of the U.S. Attorney’s Office in Newark. This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Defense counsel: Jef Henninger Esq., Tinton Falls, N.J
El Departamento de Justicia Colabora con la República de Honduras para Combatir la Discriminación en el EmpleoRead the Press Release
WASHINGTON – El Departamento de Justicia y el gobierno de Honduras anunciaron una asociación formal hoy para proteger a trabajadores de la discriminación por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen. La Secretaria de Justicia Auxiliar Adjunta Principal Vanita Gupta, directora de la División de Derechos Civiles del Departamento de Justicia, y el Encargado de Negocios de Honduras, Luís F. Cordero, firmaron un memorando de entendimiento (MOU, por sus siglas en inglés) entre la embajada y sus consulados y la Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas con la Inmigración (OSC, por sus siglas en inglés), que pertenece a la División de Derechos Civiles.
Como parte del MOU, la OSC y el gobierno hondureño se comprometen a colaborar para educar a los trabajadores acerca de sus derechos laborales y brindarles los recursos necesarios para proteger tales derechos. Asimismo, el MOU procura promover la capacitación para empleadores en cuanto a sus obligaciones al amparo de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés), que prohíbe la discriminación en el empleo por motivos de ciudadanía, estatus migratorio o nacionalidad de origen. En concreto, el MOU dispone que:
- La OSC capacitará al personal consular hondureño en lo que se refiere a la disposición antidiscriminatoria de la INA, participará en eventos organizados por los consulados hondureños para educar a los trabajadores y empleadores y distribuirá materiales educativos a la embajada y sus consulados.
- La embajada establecerá un sistema para referir denuncias de discriminación recibidas en la embajada y sus consulados a la OSC.
“Debemos demostrar nuestra solidaridad con los trabajadores que enfrentan obstáculos ilegales y barreras discriminatorias cuando buscan empleo,” declaró la Secretaria de Justicia Auxiliar Adjunta Principal Vanita Gupta. “Nuestro país prospera cuando toda la gente tiene igualdad de oportunidades para tener éxito. Sin embargo, en demasiadas ocasiones vemos cómo los empleadores se niegan a contratar a los inmigrantes con autorización para trabajar, o les obligan a presentar documentación innecesaria para poder trabajar. Esta asociación ayudará a educar a los trabajadores acerca de sus derechos y canalizará sus denuncias de discriminación hacia la División de Derechos Civiles.”
Este acuerdo resulta particularmente pertinente dado que los nacionales hondureños con el estatus de protección temporal (TPS, por sus siglas en inglés) podrían enfrentar discriminación por parte de empleadores por motivos de su estatus migratorio o por su origen nacional. El TPS es un estatus migratorio temporal que se extiende a nacionales elegibles de un país designado para el TPS al amparo de la INA. Durante el período de designación del TPS, los beneficiarios del TPS están autorizados para trabajar en los Estados Unidos.
Durante el último año, el departamento también ha establecido asociaciones formales con el Ecuador, El Salvador y México para empoderar y educar a las personas provenientes de esas naciones que tienen autorización para trabajar.
La OSC es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, esta ley prohíbe la discriminación por motivos de ciudadanía, estatus migratorio y origen nacional en los procesos de contratación, despido o reclutamiento o recomendación por comisión; la discriminación en el proceso de verificación de la elegibilidad para trabajar; las represalias y la intimidación. Además de sus esfuerzos de cumplimiento, la OSC educa al público en cuanto a los derechos y las responsabilidades al amparo de la disposición antidiscriminatoria de la INA.
Para mayor información sobre las protecciones contra la discriminación en el empleo conforme a las leyes de inmigración, llame a la línea directa de la OSC para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para las personas con discapacidades auditivas); llame a la línea directa de la OSC para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para las personas con discapacidades auditivas); inscríbase en un seminario en línea gratuito; envíe un correo electrónico a [email protected]; o visite la página web de la OSC.
Memorandum of Understanding (en inglés)
Eight Chicago People Indicted on Federal Charges in Connection with Plaza Frontenac RobberyRead the Press Release
St. Louis, MO – Eight individuals arrested on November 26, 2016, for their part in a robbery at Plaza Frontenac were indicted today for interstate transportation of stolen property.
Dejuan Wingard, Mario Washington, Jacob Lee, Derrick Crowder, Darius Bowdry, Terrence Bell, Julian Campbell and Keyshyala Thomas, all of Chicago, Illinois, were each indicted by a federal grand jury on one felony count each of interstate transportation of stolen property, which follows a criminal complaint filed Monday.
According to court records, the eight named defendants and others entered the Saks Fifth Avenue department store soon after it opened on the Saturday after Thanksgiving and ran to the Chanel counter, grabbing thirty handbags and smashing fixtures in the process. The group then left the store and entered two waiting vehicles, which left the shopping center and traveled east on Highway 64/40. The Frontenac, Missouri, police department pursued the vehicles but disengaged due to safety concerns as the defendants’ vehicle was exceeding 100 miles per hour on the highway.
Later that morning, the Illinois State Police and other local departments from southern Illinois were able to stop the defendants’ car, which contained sixteen of the stolen handbags, and take the defendants into custody. The defendants remain in federal custody on the government’s motion to detain them pending trial.
Interstate transportation of stolen property carries a maximum penalty of 10 years in prison and/or fines up $250,000. Restitution is mandatory and the government is seeking the criminal forfeiture of all the stolen merchandise. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case is being investigated by the Federal Bureau of Investigation, the Frontenac Police Department, the Illinois State Police, the Montgomery (IL) County Sheriff’s Department, the Montgomery (IL) County Prosecutor’s Office and the St. Louis County Office of the Prosecuting Attorney. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Delmar Woman Sentenced to Prison for Workers’ Compensation Fraud SchemeRead the Press Release
SYRACUSE, NEW YORK – Carol-Lisa Gutman, age 62, of Delmar, New York, was sentenced today to 22 months in prison after a jury found her guilty earlier this year of conducting a 15-year fraud scheme in which she received about $429,000 in federal disability benefits.
The announcement was made by United States Attorney Richard S. Hartunian and Eileen Neff, Special Agent in Charge for the Northeast Area of the United States Postal Service Office of Inspector General.
In June, Gutman was convicted of five counts of wire fraud, two counts of federal employees’ compensation fraud, and one count of theft of government money after a six-day jury trial in Albany presided over by Senior United States District Judge Frederick J. Scullin, Jr. In addition to the 22-month prison sentence, Judge Scullin ordered Gutman to be placed on supervised release for 2 years after her release from prison and to pay restitution to the United States Department of Labor in the amount of $429,677.93.
The evidence at trial demonstrated that Gutman began receiving federal workers’ compensation benefits in 1987, after claiming to have injured her back while working for the United States Postal Service. From that time forward, Gutman claimed to be completely disabled, regularly reporting to her doctors that she was essentially housebound and lacked the ability to do any substantial amount of bending, lifting, carrying, or even sitting. Gutman also reported that she spent 15 hours each day in a large hot tub in order to obtain relief for her back pain and that she did not perform household-related tasks.
The evidence at trial included hours of video recordings from 2011, 2012 and 2013, showing Gutman working in her yard, performing activities such as raking leaves, mowing the lawn, carrying large pails of yard waste, and bending over repeatedly. As a result of her fraud, between September 2001 and April 2016, Gutman received more than $429,000 in workers’ compensation benefits to which she was not entitled.
This case was investigated by the United States Postal Service Office of Inspector General, and was prosecuted by Assistant United States Attorney Michael F. Perry.
Craigslist Robbery Crew Member Sentenced to over 30 Years’ Imprisonment Following Conviction on Multiple CountsRead the Press Release
OAKLAND – Michael Anthony Martin, 42, of Tracy, Calif., was sentenced today to 370 months in prison for his role in a conspiracy to commit robbery affecting interstate commerce and robbery affecting interstate commerce announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The sentence follows Martin’s conviction of multiple counts of robbery on February 4, 2016, after a three-week jury trial before the Honorable Jeffrey S. White, U.S. District Judge.
Martin was one of five defendants indicted by a federal grand jury on April 10, 2014, in connection with robberies that targeted individuals selling high-end jewelry, such as diamonds and Rolex watches, on Craigslist. Additional defendants were indicted in other related cases. The evidence at trial demonstrated that between November 2012 and December 2013, the defendants were part of a crew that targeted victims nationwide whom they identified on Craigslist. The crew members contacted the targeted victims via e-mail or cellular telephone and negotiated to purportedly purchase the jewelry item. The robbers frequently posed as music producers or pretended to be in the market for diamond engagement rings. The crew members then induced the victims to travel to the Bay Area to sell the jewelry item by offering to pay for the victim’s airplane ticket or promising to reimburse the victim for travel. Often a robbery crew member posed as an airport limousine driver and picked up the victim at the airport using a rental SUV. The victim believed he or she was going to meet the buyer at a jewelry store or bank to complete the sale. Instead, the driver took the victims to a different, predetermined location where two or more additional robbers, using guns and physical violence, robbed the victims of the jewelry items and other personal property.
The evidence at trial showed the robbery crew is estimated to have been responsible for stealing more than $500,000 worth of jewelry from victims traveling from more than six states, including Arizona, California, Colorado, Oregon, Washington, and Wisconsin. For his role in the robberies, Martin was charged with one count of conspiracy to commit robbery affecting interstate commerce, in violation of 18 U.S.C. § 1951, and four counts of substantive robbery, in violation of 18 U.S.C. § 1951(a) and 2. Pursuant to the jury’s February 4, 2016, verdict, Martin was found guilty of all counts.
In calculating Martin’s prison term, Judge White imposed a sentence based in part on the finding that the defendant committed perjury while testifying during his trial. The perjury finding resulted in an obstruction enhancement and a higher sentence. Further, in addition to the prison term, Judge White ordered Martin to serve a three-year period of supervised release and to pay restitution in the amount of $191,863.93.
Martin is in federal custody and will begin serving his sentence immediately.
Other crew members that have been sentenced include the following:
NAME/
CASE NO.
AGE
NUMBER OF ROBBERIES/ ATTEMPTED ROBBERIES ADMITTED
SENTENCING DATE
SENTENCE
Rafael Lamont Davis/
CR 14-00093 JSW
19
1
October 14, 2014
41 months
Jaedon Eric Evans/
CR 14-00093 JSW
19
1
December 2, 2014
46 months
Keegan Leecodi Cotton/
CR 14-00093 JSW
20
5
June 2, 2015
70 months
Clarence Lee Andrews/
CR 14-00094 YGR
38
5
December 18, 2014
210 months
Assistant U.S. Attorneys Brigid S. Martin and Claudia A. Quiroz are prosecuting the case with the assistance of Melissa Dorton, Katie Turner, Patty Lau, Yvette Baird, Maria Sunga, and Maureen French. The prosecution is the result of an investigation by the U.S. Attorney’s Office, the Federal Bureau of Investigation (San Francisco Division, assisted by Sacramento, St. Louis, San Antonio, and Mobile, Alabama Divisions), U.S. Bureau of Prisons, Fremont Police Department, California Department of Corrections, El Cerrito Police Department, Richmond Police Department, San Francisco Police Department, Alameda County Sheriff’s Office, Oakland Police Department, Berkeley Police Department, Danville Police Department, Concord Police Department, Livermore Police Department, Manteca Police Department, Tracy Police Department, Contra Costa Sheriff’s Office, Hayward Police Department, Burlingame Police Department, San Leandro Police Department, Berkeley, Missouri Police Department; Olivette, Missouri Police Department; and the Northern California Regional Intelligence Center.
Convicted Search Engine Optimizer Indicted for Retaliating Against Former VictimRead the Press Release
DALLAS, Texas — Less than one year after being sentenced to 37 months in federal prison for attempting to extort money from a Dallas-based business (victim Company) and ordered to pay $174,888 in restitution to the numerous victims of his extortive conduct in U.S. v. William Laurence Stanley, 3:14-CR-113-N, former search engine optimizer William Laurence Stanley, 53, was indicted this week for retaliating against the principle victim in the 2014 case. The indictment was announced today by U.S. Attorney John Parker of the Northern District of Texas.
This week’s indictment alleges that from approximately September 6 through September 28, 2016, Stanley, knowingly and with the intent to retaliate against a person for providing law enforcement information about the commission of a federal offense, posted false and derogatory comments and reviews online about the victim Company from the 2014 case.
Stanley’s conviction in the above-referenced case, stemmed from his and his sister, Lynn Faust’s online and telephone threats from 2013 through 2014 to ruin the reputation of the victim Company because of his pretense that the victim Company refused to pay him approximately $30,000. Stanley threatened to post negative things online about the victim Company that had the potential to cause significant revenue losses. Stanley’s search engine optimization skills caused any items he posted online to rank high on the various search engines. During the early stages of the extortion in 2014, the victim Company notified the FBI in Dallas, which opened an investigation. Several victim Company officers and employees subsequently provided truthful information to the FBI regarding Stanley’s commission of a federal offense – the offense to which he ultimately pled guilty in July 2015.
In early August 2016, after serving the majority of his imprisonment term, Stanley was transferred by the Bureau of Prisons (BOP) to a halfway house in Houston. In early September 2016, the BOP placed Stanley on home confinement at his daughter’s residence in Angleton, Texas.
On approximately September 21, 2016, according to the affidavit filed with the criminal complaint, Stanley posted derogatory online articles/blogs/complaints intended to portray the victim Company in a negative light. Several of the articles/blogs/complaints had titles and photographs added to place the victim Company in an even more negative light. Stanley also allegedly encouraged others to duplicate the negative content in as many places as possible. The investigation revealed, among other things, that Stanley created the derogatory blogs while he was on home confinement in Angleton.
The affidavit further notes that as a result of the recent derogatory online postings, the victim Company has suffered a significant loss of revenue, with the potential for additional loss of revenue so long as the postings remain online.
Stanley has been held in custody on the complaint filed on October 20, 2016, since he completed his previous BOP sentence on November 4, 2016. Following a detention hearing held on December 2, 2016, U.S. Magistrate Judge David L. Horan ordered that Stanley remain in custody. Judge Horan found there was no condition or combination of conditions that would reasonably assure Stanley’s appearance as required. He noted that Stanley has a house and family in Romania, and he has expressed an interest in returning there. A family member also told law enforcement that he would definitely flee the country if released from custody.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, Stanley faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Restitution could also be ordered.
The FBI is investigating the case. Assistant U.S. Attorney C.S. Heath is in charge of the prosecution.
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Columbia Man Sentenced to 15 Years for Child Sex TraffickingRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was sentenced in federal court today for child sex trafficking.
Kenyata D. Miles, 35, of Columbia, was sentenced by U.S. District Judge Stephen R. Bough to 15 years and eight months in federal prison without parole.
Miles, who owned and operated Precision Commercial and Residential Cleaning, pleaded guilty on May 16, 2016. Miles admitted that he booked two rooms for two nights at the Quail’s Nest Motel in Osage Beach, Mo., in April 2013. Law enforcement officers found a 16-year-old female who had been reported as missing in one of the rooms; Miles and two women were in an adjacent room.
Advertisements had been posted on Backpage.com advertising the availability of the child victim and one of the women for sexual services. Miles arranged hotel reservations and provided transportation to hotels for their prostitution activities.
According to court documents, the minor victim also had traveled with Miles and a woman identified as “K.M.” to St. Louis, where they engaged in prostitution. When they returned to Columbia, the minor victim again engaged in prostitution. Miles became increasingly violent, according to K.M., and assaulted her and threatened her with a gun. Miles initially split the prostitution proceeds with her and the minor victim, K.M. told investigators, but had recently only been giving them money for necessities.
According to court documents, Miles has an extensive criminal history, including a history of violent criminal behavior and drug abuse. He has been incarcerated or under court supervision for much of his adult life.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the FBI, the Boone County, Mo., Sheriff’s Department and the Osage Beach, Mo., Police Department in conjunction with the Human Trafficking Rescue Project.
Chief Executive of Florida-Based Financial Firm Guilty of Fraud in $179 Million Sham Loan SchemeRead the Press Release
CHICAGO — The CEO of a Florida-based financial firm has pleaded guilty to fraud charges in connection with the sale of $179 million in sham loans to a Milwaukee investment company.
NIKESH A. PATEL was the Chief Executive Officer of First Farmers Financial LLC when the company sold three fabricated loans totaling approximately $20 million to a Tennessee-based investment firm, and 26 fabricated loans to a Milwaukee investment firm for $179 million. Between November 2012 and September 2014, Patel created and assisted in creating false documents sent to the investment firms in support of these loans. Patel submitted documents to the Milwaukee investment firm that falsely created the appearance that his company had lent money to borrowers in Florida and Georgia – in amounts ranging from $2.5 million to $10 million – and that a portion of the loans were guaranteed by the federal government under a program administered by the U.S. Department of Agriculture. All 26 loans were completely fabricated with no actual borrower, no pre-existing loan, and no government guarantee.
Patel, 33, of Windermere, Fla., pleaded guilty on Tuesday to five counts of wire fraud. The conviction carries a maximum sentence of 100 years in prison and a fine of $1,250,000. U.S. District Judge Charles P. Kocoras set sentencing for April 6, 2017, at 9:45 a.m.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Jeffrey A. Monhart, Regional Director of the Chicago Regional Office of the U.S. Department of Labor, Employee Benefits Security Administration.
First Farmers’ president, TIMOTHY G. FISHER, was also convicted in connection with the fraud. Fisher, of Pasadena, Calif., pleaded guilty last month to one count of money laundering. Fisher faces up to ten years in prison when he is sentenced by Judge Kocoras on May 4, 2017, at 9:45 a.m.
Evidence in the case revealed that Patel created fictitious business names and false USDA loan identification numbers, and forged the signatures of USDA employees and purported borrowers. Patel also assisted in creating false financial documents, including what purported to be a certified audit by a fictitious accountant that he submitted to the investment firm to obtain the funds.
Based upon the false statements, the Milwaukee firm’s clients, which included community banks, retirement plans, municipalities and subdivisions in Illinois and elsewhere, suffered a loss of $179 million. Although a portion of the funds were used to make interest payments to the investors, the bulk of the funds were used to pay existing debts, acquire assets, pay personal expenses, invest in other unrelated businesses, and repurchase loans that Patel had previously sold to the Tennessee investment advisor.
The government is represented by Assistant U.S. Attorneys Patrick King and Rick Young.
Cedar Rapids Drug Dealer Sentenced to 30 Years ImprisonmentRead the Press Release
A Cedar Rapids man who was found in possession of marijuana and a firearm was sentenced today to 30 years in federal prison.
Anthony Steven Hall, Jr., 31, from Cedar Rapids, Iowa, received the prison term after a June 14, 2016, jury verdict finding him guilty of three crimes: possession of marijuana with intent to distribute, possession of a firearm by a felon and drug user, and possession of a firearm in furtherance of a drug trafficking crime.
Evidence at trial showed that on April 13, 2015, police conducted a routine traffic stop on a vehicle driven by Hall. Police searched the vehicle and located 63 individually wrapped bags of marijuana and a .40 caliber pistol in the vehicle’s center console. Police also seized a cell phone used by Hall. During the traffic stop, Hall provided police with a false name and date of birth. When police attempted to place Hall under arrest, Hall attempted to flee and physically assaulted one of the police officers. Investigators eventually searched the cell phone and located numerous text messages discussing the distribution of marijuana. Investigators also located cell phone video depicting Hall with a firearm on a previous occasion.
Hall was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Hall was sentenced to 360 months imprisonment. A special assessment of $300 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Hall is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation, United States Marshal Service, and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-55.
Follow us on Twitter @USAO_NDIA.
California methamphetamine trafficker sentenced to 10 years in federal prisonRead the Press Release
CHARLESTON, W.Va. – A California man who traveled to West Virginia to facilitate methamphetamine trafficking was sentenced today to 10 years in federal prison for a drug crime, announced United States Attorney Carol Casto. Gary Liberty, 52, previously pleaded guilty to possession with intent to distribute methamphetamine.
Liberty admitted that in January 2012, he made arrangements with a confidential informant working with law enforcement to ship crystal methamphetamine from California to West Virginia. On January 5, 2012, Liberty traveled from California to West Virginia by airplane. The next day, Liberty provided the confidential informant with a U.S. Postal Service tracking number for a package containing crystal methamphetamine that Liberty had arranged to be sent from California to the informant’s residence in Sissonville. On January 7, 2012, officers intercepted the package and seized over 80 grams of methamphetamine. Officers then conducted a controlled delivery of the package to the confidential informant’s residence with a fake substance in the package. After the informant took delivery of the package, officers entered the informant’s home and found Liberty standing over the package with the package open and several items from inside the package on the table. Liberty then gave a statement to law enforcement and admitted his involvement with methamphetamine trafficking.
The Metropolitan Drug Enforcement Network Team and the United States Postal Inspection Service conducted the investigation. Assistant United States Attorney Monica D. Coleman is responsible for the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
This case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of 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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Businessman Pleads Guilty to Bribery Charges Involving Government ContractsRead the Press Release
ALEXANDRIA, Va. – James C. Bedford, 50, of Dumfries, pleaded guilty today to charges of conspiracy to commit bribery and bribery of a public official.
According to the statement of facts filed with the plea agreement, in 2006, the computer systems of the Bureau of Industry and Security (BIS), a bureau within the Department of Commerce, were infected by a computer virus that required BIS to shut down internet access to its computer systems and to construct a new computer network that had not been infected by the virus. Because BIS employees needed access to files that resided on the old system, files needed to be migrated from the old, infected network to the new, uninfected network.
According to the statement of facts, from May 2010 through October 2011, Bedford conspired with Raushi J. Conrad, then a BIS employee, to pay bribes to ensure that Bedford’s companies were awarded and maintained a lucrative subcontract and contract to perform the data migration work. Conrad was then serving within the Office of the Chief Information Officer for BIS and had been designated to oversee the data migration project. Conrad has been indicted for his role in the conspiracy and bribery scheme.
According to the statement of facts, Bedford made $208,000 in payments through a construction company he owned to a restaurant business owned by Conrad, many payments were concealed through false and fictitious invoices created by Conrad. The fake invoices made it appear that Conrad’s restaurant business had performed various services for Bedford’s construction company, when in fact no such services ever had been provided. Bedford also paid for over $7,000 worth of renovation work performed at Conrad’s residence. In exchange, Bedford’s companies reaped over $1 million in profits from the data migration subcontract and contract.
Bedford faces a maximum penalty of 20 years in prison sentenced on March 31, 2017. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Duane E. Townsend, Special Agent in Charge of the U.S. Department of Commerce, Office of Inspector General; and Robert Craig, Special Agent in Charge for Defense Criminal Investigative Service Mid-Atlantic Field Office made the announcement after the plea was accepted by U.S. District Judge Gerald Bruce Lee. Assistant U.S. Attorneys Matthew Burke and Jamar K. Walker are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-264 and 1:16-cr-169.
Buffalo Man Sentenced for Committing Multiple Bank RobberiesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Casey Swain, 38, of Buffalo, NY, who was convicted of bank robbery, was sentenced to 57 months in prison by U.S. District Court Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Brendan T. Cullinane, who handled the case, stated that, on five different dates, the defendant robbed First Niagara Bank branches in Buffalo, Lackawanna, Niagara Falls, Kenmore, and Bellevue, Pennsylvania. During each of the robberies, Swain passed a note to a bank teller demanding United States currency. Some of the notes included the words “no sudden movements” or “eye contact” or things would turn bad.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation, under the direction on the part of Adam S. Cohen, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Lackawanna Police Department, under the direction of Chief James Michel, the Niagara Falls Police Department, under the direction Chief Bryan DalPorto, the Kenmore Police Department, under the direction of Chief Peter Breitnauer, and the Bellevue (PA) Police Department, under the direction of Chief Matthew Sentner.
Buffalo Gang Member Pleads Guilty to Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Oscar Romero, 35, of Buffalo, NY, pleaded guilty to possession with intent to distribute and distribution of cocaine before Senior U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 20 years in prison and a $2,000,000 fine.Assistant U.S. Attorney Thomas S. Duszkiewicz, who is handling the case, stated that the defendant was a member of a gang known as the Loiza Boys which has been distributing cocaine and heroin on Buffalo’s West Side since at least 2006.
Romero was charged in 2013 along with nine other defendants following a long term investigation that involved the interception of telephone calls of the defendants and the use of undercover drug purchases from some of those charged. During the investigation, law enforcement officers seized over 450 grams of heroin, three firearms, and over $70,000 in U.S. currency.
Romero is the first to be convicted. The remaining defendants are scheduled to go to trial on January 3, 2017. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen.
Sentencing is scheduled for March 15, 2017 at 2:00 p.m. before Judge Skretny.
Broward County Resident Sentenced in Identity Theft Tax Fraud Scheme Involving the Use of Unauthorized Debit Card Account NumbersRead the Press Release
A Broward County resident was sentenced to 24 months in prison, to be followed by three years of supervised release for his involvement in an identity theft tax fraud scheme involving the trafficking in, use, and possession of unauthorized debit card account numbers.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Dan Giustino, Chief, Pembroke Pines Police Department, made the announcement.
Maraldy Necker Jean, 39, previously pled guilty to one count of trafficking in and using one or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(2), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, fraudulent tax returns were filed using the names and Social Security numbers of individuals without their permission. On February 6, 2014, Jean and co-defendant Wilna Joseph, 36, of Broward County, drove to a Wells Fargo Bank in Pembroke Pines, and Joseph attempted to withdraw cash from the ATM using a debit card encoded with an account number belonging to one of the tax return victims. The defendants then drove to a Citibank, located in Pembroke Pines, where Joseph made four withdrawals, totaling approximately $1,200.00, using a debit card encoded with an account number belonging to another one of the tax return victims.
At the time of their arrest, on February 6, 2014, the defendants, between them, had fifteen unauthorized debit cards registered in the names of other persons. The debit cards had been funded with fraudulently obtained federal income tax refunds totaling approximately $76,249.20.
Wilna Joseph was sentenced on November 18, 2016 to 10 months in prison, to be followed by one year of supervised release.
Mr. Ferrer commended the investigative efforts of IRS-CI, the FBI, and the Pembroke Pines Police Department. The case is being prosecuted by Assistant United States Attorneys Daya Nathan and Jonathan K. Osborne and Special Assistant United States Attorney Tyler Jett.
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.
Bronson Man to Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced December 6, 2016, to twelve years in federal prison.
Andrew Tucker-Moreno, 30, from Bronson, Iowa, received the prison term after an August 24, 2016, guilty plea to one count of conspiracy to distribute methamphetamine.
At the guilty plea, Tucker-Moreno admitted that from about 2015 through March 2016 he and others distributed more than 500 grams of actual (pure) methamphetamine. During a March 2016 search warrant at Tucker-Moreno’s residence in Moville, Iowa, law enforcement officers seized 679 grams of actual (pure) methamphetamine, .25 caliber pistol, two digital scales as well as other indicia of drug trafficking.
Tucker-Moreno was sentenced in Sioux City by United States District Court Judge Leonard T. Strand. Tucker-Moreno was sentenced to 144 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Tucker-Moreno is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-4047. Follow us on Twitter @USAO_NDIA.
Boston Man Pleads Guilty to Multi-Million Dollar Scheme to Defraud Brokerage FirmsRead the Press Release
BOSTON – A Boston man pleaded guilty today in U.S. District Court in Boston in connection with a three-year, multi-million-dollar fraud scheme.
Nathanial Ponn, 28, pleaded guilty to three counts of wire fraud. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for March 1, 2017.
From 2012 to April 2015, Ponn opened more than 400 brokerage accounts at nine investment firms throughout the United States, using false names, Social Security numbers, assets and income to open many of them. These firms allowed customers to transfer funds from one financial institution into the customer’s brokerage account through an Automated Clearing House (ACH) transfer, by providing the account number and financial institution where the account was held and the amount to be transferred. Between February 2014 to April 2015, Ponn provided ACH transfer information to brokerage firms for accounts he opened on more than 350 occasions, totaling more than $8.5 million in attempted transfers. In each instance, the bank account Ponn provided did not have the amount of funds requested or, in some circumstances, did not even exist. Although the ACH transfers were rejected, the fraudulent transfers created the false appearance that the brokerage accounts had cash available to purchase securities.
Through this scheme, Ponn was able to purchase securities totaling more than $2.7 million in accounts at eight investment firms. When the firms discovered that the ACH transfers were rejected, they liquidated the securities in Ponn’s accounts. As part of the scheme, Ponn also attempted, unsuccessfully, to get the brokerage firms to send him checks totaling about $250,000, based on the same false ACH information.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $1 million on each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Attorney’s Office received valuable assistance from the Securities and Exchange Commission, which filed a civil action against Ponn in March 2016 arising out of the scheme to defraud investment firms.
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. Assistant U.S. Attorney Mark J. Balthazard of Ortiz’s Economic Crimes Unit is prosecuting the case.
Boise Federal Jury Convicts Texas Residents in Retail Fraud SchemeRead the Press Release
BOISE – On December 5, 2016, a federal jury returned guilty verdicts on all counts against Alejandro Hidalgo, 27, Dilcia Martinez-Marquez, 26, Enrique Matos-Herrera, 30, and Jose Salazar-Quintana, 29, of Amarillo, Texas for using stolen debit card numbers to make over $30,000 of fraudulent purchases at local Walmart stores and other businesses, U.S. Attorney Wendy J. Olson announced. All defendants were convicted of conspiracy to commit wire fraud. Hidalgo also was convicted of six counts each of wire fraud and aggravated identity theft. Martinez-Marquez also was convicted of four counts of wire fraud. Matos-Herrera was convicted of four counts each of wire fraud and aggravated identity theft. And Salazar-Quintana was convicted of seven counts each of wire fraud and aggravated identity theft.
The week-long trial before Senior U.S. District Judge Edward J. Lodge established that the defendants, and their co-defendants, Luis Mejias-Fiz, 25, and Eslay Monzon, 43, traveled to Idaho for the purpose of executing their scheme. Mejias-Fiz and Monzon previously pleaded guilty. The group rented hotel rooms and traveled to at least seven Walmart stores and a couple of Walgreens stores in the Treasure Valley on October 15 and 16, 2015. They obtained stolen debit card numbers from “dark web” internet sites that traffic in stolen account numbers. The defendants targeted Idaho residents by obtaining stolen debit card account numbers from Idaho Independent Bank. They fraudulently encoded the stolen account numbers onto the magnetic strips of stock gift cards and then used the re-encoded cards to purchase new gift cards and other merchandise. On October 16, 2015––thanks in part to tips from members of the public––the Meridian Police Department apprehended the defendants in the vehicle they were sharing. Through the investigation, law enforcement recovered thousands of dollars-worth of gift cards, merchandise, and a computer that the defendants used to execute their scheme.
Mejias-Fiz’s sentencing is scheduled for January 11, 2017. Monzon’s sentencing is scheduled for January 19, 2017. The defendants convicted at trial are set to be sentenced on March 9, 2017.
Conspiracy to commit wire fraud and wire fraud are punishable by up to 20 years in prison, a $250,000 fine, and three years of supervised release. Aggravated identity theft is punishable by a mandatory two years in prison, to be served consecutively to the sentence imposed for the underlying felony.
The case was investigated by the Meridian Police Department and the United States Secret Service.
Bay Stater Pleads Guilty in Illegal Scheme to Buy Firearms in HooksettRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced that Michael Younge pleaded guilty in federal court to participating in an illegal scheme to purchase firearms. Younge pleaded guilty to one count of the federal crime of Aiding and Abetting the Making of a False Statement in Connection with the Attempted Acquisition of a Firearm. Younge, 26 years old, lived in Framingham and Boston, Massachusetts, prior to his arrest.
According to court documents and statements made during the hearing, Younge, two associates and Younge’s girlfriend, Tasha Gardner, visited a federally licensed firearms dealer in Hooksett, N.H., on July 15, 2015. Younge and the one of the associates, facilitated by the second associate, solicited Gardner to buy hand guns for Younge and the first associate. Gardner agreed. Younge and the first associate were both convicted felons and therefore could not legally buy a firearm themselves. Younge and the first associate were also both residents of Massachusetts. Under federal law, it is illegal for a firearms dealer to sell hand guns to out-of-staters. Gardner attempted to purchase the firearms for Younge and the first associate. In connection with that attempt Gardner filled out a form legally required for all intrastate over-the-counter gun purchases. On that form, Gardner falsely certified that she was the “actual purchaser” of the two hand guns. The transfer of firearms was never accomplished because employees of the firearms dealer became suspicious and declined to complete the transaction.
United States District Judge Landya McCafferty took Younge’s guilty plea and scheduled his sentencing for March 16, 2017. He is subject to a statutory maximum sentence of ten years imprisonment, a fine of up to $250,000 or both. Younge is detained pending trial. Gardner pleaded guilty to a related charge on November 4, 2016, and is scheduled for sentencing on February 21, 2017.
This matter was investigated by the Bedford Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Manchester (N.H.) Police Department. The case is being prosecuted by Assistant United States Attorney Bill Morse.
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Atlanta Police Sergeant Charged with using Excessive Force against Walmart CustomerRead the Press Release
ATLANTA – Trevor King, a sergeant with the Atlanta Police Department (APD), has been indicted by a federal grand jury on charges of using excessive force against a customer at an Atlanta Walmart store.
“We work closely with APD and its dedicated officers every day to make our city safer. This indictment, however, alleges conduct that is so far outside the bounds of an appropriate police-citizen encounter that this officer must be held accountable,” said U.S. Attorney John Horn.
According to U.S. Attorney Horn, the indictment, and other public information: In 2014, APD Sgt. Trevor King was working off-duty as a security officer at the Walmart store located on Martin Luther King, Jr., Boulevard in downtown Atlanta. On the evening of October 13, 2014, King, dressed in his APD uniform, and carrying an expandable baton, stopped a customer from exiting the store because he wrongfully believed the customer had shoplifted. King allegedly grabbed the customer’s shirt and began to strike the man with his baton. King struck the customer multiple times, breaking the customer’s leg.
Trevor King, 48, of Rex, Georgia, is expected to be arraigned on these charges in federal court within the next week.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Brent Alan Gray and DOJ Civil Rights Division Trial Attorney Sanjay Patel are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Atlanta Police Sergeant Charged with Using Excessive ForceRead the Press Release
Atlanta Police Sergeant Trevor King, 48, of Rex, Georgia, was charged by a federal grand jury with violating the rights of a man by using excessive force against him on Oct. 13, 2014.
The indictment was announced today by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, and U.S. Attorney John Horn of the Northern District of Georgia.
According to the indictment and other publicly available information, in 2014, King was working off-duty as a security officer at a Walmart store located on Martin Luther King Jr. Boulevard in downtown Atlanta. On the evening of Oct. 13, 2014, King, dressed in his APD uniform and carrying an expandable baton, stopped a customer from exiting the store because he wrongfully believed the customer had shoplifted. King allegedly grabbed the customer’s shirt and began to strike the man with his baton. King struck the customer multiple times, breaking the customer’s leg.
An indictment is merely an accusation and the defendant is presumed innocent unless proven guilty.
The case is being investigated by the FBI and is being prosecuted by Trial Attorney Sanjay Patel of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Brent Alan Gray of the Northern District of Georgia.
Albany Man Pleads Guilty to Firearm and Drug ChargesRead the Press Release
ALBANY, NEW YORK – Calvin Strong, age 24, of Albany, New York, pled guilty today to unlawfully possessing a handgun, and to possessing and intending to distribute cocaine, crack cocaine and heroin.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge Ashan M. Benedict of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
As part of his guilty plea, Strong admitted that on October 18, 2015, while in an apartment in Troy, New York, he unlawfully possessed a Kimber Ultra Raptor II, a .45 caliber handgun, and cocaine, crack cocaine, and heroin, with the intent to distribute those drugs. As a felon, Strong could not lawfully possessing the handgun.
Strong faces up to 30 years in prison, a maximum fine of $2 million, and a term of post-imprisonment supervised release of at least 6 years and up to life when he is sentenced on May 8, 2017 by Senior U.S. District Judge Thomas J. McAvoy.
This case was investigated by the ATF and the Albany Police Department, and is being prosecuted by Assistant U.S. Attorney Richard Belliss.
Alabama Man Sentenced to 10 Years in Prison for Child ExploitationRead the Press Release
OXFORD – Wesley Scott Greene, 25, of Opelika, Alabama, was sentenced by Chief U.S. District Judge Sharion Aycock in Aberdeen, Mississippi, today to serve 120 months in prison for child exploitation, and 120 months in prison for crossing state lines to engage in sexual activity with a minor. Greene will serve the two sentences concurrently.
Greene will also serve 10 years of supervised release following his incarceration. Greene was remanded to the custody of the United States Marshals Service to begin his sentence.
U.S. Attorney Felicia C. Adams of the Northern District of Mississippi, Special Agent in Charge Christopher Freeze of the FBI’s Jackson, Mississippi Division, and Mississippi Attorney General Jim Hood made the announcement.
“The United States Attorney’s Office for the Northern District of Mississippi is committed to the protection of our children and we will vigorously prosecute those predators who seek to exploit and abuse them. Our office appreciates the hard work of all the federal, state, and local agencies that participated in this investigation,” said U.S. Attorney Adams.
“As technology advances, criminals continue to find new ways to prey on children,” said Christopher Freeze, Special Agent in Charge of the FBI in Mississippi. “The FBI will remain vigilant to technological advances to stay one step ahead of those attempting to exploit children.”
"The conclusion of this case is another good example of how effective law enforcement agencies can be when they work collaboratively to take criminals off the streets and away from our children,” said Mississippi Attorney General Jim Hood. “It’s extremely important for us to continue working together as state, federal and local partners to protect kids from those who would exploit and abuse them.”
Greene was arrested by FBI Agents and Task Force Officers on March 24, 2016 in his former hometown of Opelika, Alabama. In April 2016, the federal grand jury returned a two count indictment charging Greene with violations of 18 USC 2422(b), using facilities in interstate commerce to entice or coerce a minor to engage in sexual activity, and 18 USC 2423(b), traveling in interstate commerce to engage in sexual activity of a minor. On July 25, 2016, Greene pled guilty to both charges.
The FBI Jackson Division’s Child Exploitation Task Force conducted the investigation with assistance from the Itawamba County Sheriff’s Department and the FBI in Auburn, Alabama. The task force is composed of agents from the FBI and the Mississippi Attorney General’s Office and prosecutors from the United States Attorney’s Offices in Oxford and Jackson.
Akron Man Pleads Guilty to Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Robert J. Strach, 54, of Akron, NY, pleaded guilty to possession of child pornography, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years and a $250,000 fine.
Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that Strach was part of an online community dedicated to the exchange and discussion of child pornography. On March 7, 2016, Special Agents from Homeland Securities Investigations, Child Exploitation Unit, executed a search warrant at the defendant’s residence and seized a desktop computer. Forensic examination of the computer revealed that Strach was in possession of two hard drives containing 76 videos and 273 images of child pornography, some of which depicted children less than 12 years old, and some of which contain depictions of violence.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, Child Exploitation Unit, under the direction of Special Agent-in-Charge James C. Spero.
Sentencing is scheduled for March 24, 2016 at 12:30 before Judge Arcara.
Active Duty Member of U.S. Military Charged with Stealing and Selling Military-Issued Night Vision TechnologyRead the Press Release
Defendant Zachary Sizemore, an active-duty service member of the United States Air Force, made his initial appearance this morning before United States Magistrate Judge Marilyn Go at the U.S. Courthouse in Brooklyn, New York, on charges of theft and sale without authority of night-vision devices and components stolen from the Air Force. He was released on a $50,000 bond.
On November 29, 2016, the defendant was arrested on the Wright-Patterson Air Force Base in Dayton, Ohio, where he is stationed. He appeared that afternoon before United States Chief Magistrate Judge Sharon L. Ovington at the U.S. Courthouse in Dayton, Ohio, and was ordered to appear at the federal courthouse in Brooklyn this morning.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, Craig Rupert, Special Agent-in-Charge for the Department of Defense, Defense Criminal Investigative Service (DCIS) and Angel M. Melendez, Special Agent-in-Charge for the U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York.
“Our military’s night vision technology is among the most advanced in the world. As alleged, the defendant made stolen, military-issued, night vision devices available on the internet to anyone with the means to purchase them. Such technology gives our soldiers a critical advantage on the battlefield. Stealing that technology and selling it to the highest bidder puts our soldiers at risk. We will continue to use all of the law enforcement tools at our disposal to help protect our soldiers abroad,” stated United States Attorney Capers. Mr. Capers expressed his grateful appreciation to the U.S. Attorney’s Office for the Southern District of Ohio, the Air Force Office of Special Investigations, and Customs and Border Protection for their assistance.
DCIS Special Agent-in-Charge Rupert stated, “Continued cooperation with our military and federal law enforcement partners guarantees success in pursuing those who threaten the security of our American warfighters, their families, and our facilities, not to mention the investment of the American taxpayer in state-of-the-art technology for personal gain. This complaint highlights a continuing threat that DCIS will not be deterred in pursuing.”
“As an active duty member of the United States Air Force, Sizemore allegedly broke the sacred military oath of protecting this nation when he stole and sold high-tech military technology on the internet,” stated Special Agent-in-Charge Melendez of HSI New York. “This night vision equipment is highly advanced, giving our military a much deserved edge on today’s battlefield. HSI is committed to making sure this technology does not fall into the wrong hands.”
Night vision devices acquired by the United States military, such as the items allegedly stolen and sold by the defendant, contain components made to military specifications. They are required by the military to be rendered useless for their intended purpose prior to leaving government control. United States military policies prohibit the private sale of fully functional military-issued night vision equipment.
According to the complaint, between July 2013 and November 2016, Sizemore sold or attempted to sell at least three night vision devices that were stolen from the United States military, including an AN/PVS-7D night vision goggle and two mini-thermal monoculars. In addition, he created online postings for, and sold or attempted to sell, approximately 45 items described as night vision equipment or thermal equipment. Of those postings, Sizemore sold at least 38 such items for approximately $50,000.
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces up to 10 years in prison, forfeiture, and a fine of up to $250,000.
The government’s case is being prosecuted by Assistant United States Attorney Nomi D. Berenson.
The Defendant:
ZACHARY SIZEMORE
Dayton, Ohio
Age: 24E.D.N.Y. Docket No. 16-M-1051
Tuesday 6 December 2016
York Man Guilty of Allowing His Home to Be Used as Drug Distribution SiteRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Frederick Gladfelter, age 46, of York, Pennsylvania, pleaded guilty today before United States District Court Judge John E. Jones, III, to allowing his home to be used as a site for the distribution of heroin and crack cocaine.
According to United States Attorney Bruce D. Brandler, in January 2015, a York City man died after buying and using heroin sold at Gladfelter’s residence.
Co-defendant Dameon Lattimore of New York pled guilty before Judge Jones in May 2016 to a charge of distributing heroin that resulted in death. Sentencing has not yet been scheduled. Co-defendant Yushonda Durant, also of New York, remains a fugitive.
The investigation was conducted by the Drug Enforcement Administration, the York City Police Department and the York County District Attorney’s Office. Prosecution is assigned to Assistant U.S. Attorney William A. Behe.
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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Winner Woman Charged with AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Winner, South Dakota, woman has been indicted by a federal grand jury for Assault by Striking, Beating, and Wounding.
Mary Marso, age 64, was indicted on November 9, 2016. She appeared before U.S. Magistrate Judge Mark A. Moreno on December 2, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to one year in custody and/or a $100,000 fine, one year of supervised release, and $25 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about December 10, 2015, Marso struck a juvenile student at the Todd County Elementary School in Mission, South Dakota.
The charge is merely an accusation and Marso is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Carrie G. Sanderson is prosecuting the case.
Marso was released on bond pending trial, which has not been set.
Wilmington Man Sentenced to 48 Months Imprisonment for Illegal Oxycodone DistributionRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that Lawrence Brinkley, age 51, of Wilmington, was sentenced on December 2, 2016, by U. S. District Court Judge Richard G. Andrews to 48 months of imprisonment and three years of supervised release.
The sentencing came after Mr. Brinkley pled guilty on August 2, 2016 to conspiracy to distribute and possess with intent to distribute oxycodone.
Between July 2014 and January 2016, Mr. Brinkley was the ringleader of a group of individuals that obtained prescriptions for oxycodone pills and filled those prescriptions in Delaware pharmacies. Brinkley and his co-conspirators then illegally sold those pills on the street.
After the sentencing, U.S. Attorney Oberly stated, “We are satisfied with this substantial sentence. The abuse of prescription drugs is an epidemic in Delaware. Anyone tempted to make money by selling oxycodone illegally should know that the punishment will be severe.”
“The illegal diversion and sale of prescription opioids is a violation of federal law and of great concern to the DEA,” said Gary Tuggle, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “All too often the abuse of prescription opioids leads to heroin use, overdoses, and even death. The DEA will remain vigilant in pursuing criminal groups that seek to distribute prescription drugs such as these.”
The case was investigated by the Drug Enforcement Administration and Task Force Officers from the Newark Police Department, the New Castle County Police Department, the Delaware State Police, and the Maryland State Police. It was prosecuted by Assistant United States Attorney Jennifer Hall. U.S. Attorney Oberly thanked the investigators for their hard work in pursuing this investigation.
Wilmington Man Sentenced for Drug Trafficking and Possession of A Firearm by A FelonRead the Press Release
NEW BERN – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today, United States District Judge Louise W. Flanagan sentenced KRISTOPHER OWEN DANIELS, 32, of a Wilmington, North Carolina to 152 months of imprisonment followed by 5 years of supervised release.
DANIELS, was convicted in a jury trial on September 13, 2016 of Possession with Intent to Distribute a Quantity of Cocaine Base (Crack) and Marijuana; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and two-counts of Possession of a Firearm by a Felon.
On May 31, 2014, officers with the Wilmington Police Department, responded to the scene of a reported domestic incident involving an individual threatening the use of a gun. Investigation revealed that DANIELS engaged in a verbal argument with his mother, in their residence regarding money. His mother’s boyfriend, intervened on her behalf and DANIELS began arguing with him.
Investigators encountered DANIELS outside of the residence. DANIELS fled the scene on foot and was observed running with his hands in his pockets. Investigators challenged DANIELS to stop; however, DANIELS continued to run until he crashed into a nearby set of bushes where he was observed throwing items onto the ground. Upon searching the area, investigators recovered a loaded .38 caliber pistol, ammunition, an estimate of 23.094 grams of cocaine base (crack), $2,100 in U.S. currency, and approximately 5.32 grams of marijuana. Investigation determined that DANIELS is a convicted felon, which prohibits him from possessing firearms and ammunition. A search of DANIELS’ bedroom resulted in the seizure of a stolen .38 caliber revolver, ammunition, and $399 in U.S. currency. DANIELS stated that he purchased the stolen revolver from a neighbor.
The criminal investigation of this case was conducted by Wilmington Police Department, New Hanover County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF). Assistant United States Attorney S. Katherine Burnette is handling the case on behalf of the government.
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News releases are available on the U. S. Attorney’s webpage at www.usdoj.gov/usao/nce within 48 hours of release.
West Virginia man guilty of failing to register as sex offenderRead the Press Release
ELKINS, WEST VIRGINIA – Timothy A. Yeigh, 28, of Camden on Gauley, West Virginia, pled guilty in federal court today for failing to register as a sex offender, United States Attorney William J. Ihlenfeld, II, announced.
Yeigh admitted to traveling in interstate commerce from West Virginia to Florida and failing to update his registration as a sex offender. He faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah W. Montoro prosecuted the case on behalf of the government. The United States Marshals Service investigated.
U.S. Magistrate Judge Michael John Aloi presided.
West Manchester Man Pleads Guilty to Distributing Child Pornography After Having Been Convicted of Prior Sex OffenseRead the Press Release
DAYTON, Ohio – Ronald Scott Gibson, 46, of West Manchester, Ohio, pleaded guilty in U.S. District Court to distributing child pornography after having been convicted of a prior related state sex offense.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea entered into today before U.S. District Walter H. Rice.
According to court documents, Gibson’s illegal activity was discovered when the Swiss Federal Criminal Police conducted an investigation to identify those possessing and sharing child pornography through an online file sharing program. A search warrant of Gibson’s computers uncovered hundreds of files of child pornography. Gibson was previously convicted of Gross Sexual Imposition in Preble County Common Pleas Court in 1998.
Distributing child pornography after being convicted of a prior offense related to aggravated sexual abuse, sexual abuse or abusive sexual conduct involving a minor is a crime punishable by at least 15 years up to 40 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Assistant United States Attorney Andrew J. Hunt, who is representing the United States in this case.
United States Settles with Eyeland Optical Centers over Medicaid False ClaimsRead the Press Release
PHILADELPHIA – The United States announces that it has settled allegations under the False Claims Act with Eyeland Optical Centers, a chain of eye care centers in Pennsylvania. The settlement resolves allegations that Eyeland had billed Medicaid for more than four lenses per year, in violation of Pennsylvania’s Medicaid regulations, and retained those payments even once it became aware that it had done so. Eyeland has agreed to pay $135,328.56 to resolve these claims.
The case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. It was prosecuted by Assistant United States Attorneys Paul W. Kaufman and David A. Degnan.