Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
26 January 2017
Media Advisory: U.S. Department of Justice Partners with Linn County and Cedar Rapids Law Enforcement and Community Agencies to Host Forum: Protecting Arab, Muslim, Sikh, and South Asian Communities and the Community Response to Hate CrimesRead the Press Release
CEDAR RAPIDS, IA – The United States Attorney’s Office for the Northern District of Iowa is joining with the Department of Justice’s Community Relations Service, the Iowa Department of Human Rights, the Anti-Defamation League, the Linn County Attorney’s and Sheriff’s Offices, the Federal Bureau of Investigation, the Cedar Rapids Police Department, and the Cedar Rapids Civil Rights Commission to host a forum designed to identify and address key issues related to reporting, investigating, prosecuting and preventing hate crimes against Arab, Muslim, Sikh, and South Asian Communities. The forum is designed to build collaboration among key partners in an effort to prevent and respond to bias incidents and hate crimes.
U.S. Attorney Kevin W. Techau will be present and joined by Darryck Dean, a DOJ Conciliation Specialist with the Community Relations Service located in Kansas City.
Mr. Dean was actively involved in community conciliation efforts following the incidents in Ferguson, Mo. A flyer announcing the forum is attached.
Event Details
When: Monday, January 30, 2017
Where: Cedar Rapids Public Library, Whipple Auditorium, 450 5th Avenue SE, Cedar Rapids, IA
Time: Starts at 1:00 p.m., ends at 4:00 p.m.
This is a “pen and pad” opportunity for the press. Photography permitted. A press release will be provided and interview opportunities will be available.
Follow us on Twitter @USAO_NDIA.
1-30-17_flyer.pdfManchester Man Pleads Guilty to Child Pornography PossessionRead the Press Release
CONCORD, N.H.: Allan Yianakopolos, 49, of Manchester, New Hampshire, pled guilty on Thursday in United States District Court for the District of New Hampshire to possessing child pornography, announced United States Attorney Emily Gray Rice.
A joint investigation by the New Hampshire Crimes Against Children Task Force, Homeland Security Investigations Manchester, the Manchester, New Hampshire Police Department, and the Bedford, New Hampshire Police Department resulted in the seizure of various electronic devices from Yianakopolos’s Manchester residence. A search of those devices revealed hundreds of images and videos of child pornography.
Sentencing is scheduled for May 10, 2017.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the New Hampshire Crimes Against Children Task Force in conjunction Homeland Security Investigations Manchester, and the police departments of Manchester and Bedford, New Hampshire. The case is being prosecuted by Assistant United States Attorney Georgiana Konesky.
###
Man Pleads Guilty to Coercing Female Minor to Engage in Sexual ActivityRead the Press Release
Memphis, TN – A Memphis area man has pleaded to using the internet to coerce an underage teen into engaging in sexual intercourse. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty plea today.
According to information presented in court, Matthew Marr, 23, used messaging apps to communicate with a 14-year-old female minor in July and August of 2016. The minor revealed that she was underage during one of their initial conversations. However, Marr assured the minor that her age was not an issue.Marr eventually met the minor in person to have sexual intercourse and, on at least one occasion, was armed with a knife. Additionally, Marr sent sexually explicit images to the minor. He also told the victim she had to send him sexually explicit videos and images of herself if she wanted to be in a relationship with him, and pressured her to introduce him to even younger girls.
On Thursday, January 26, 2017, Marr pleaded guilty before U.S. District Court Judge John T. Fowlkes Jr. to one count of coercing and enticing a female minor to engage in sexual activity.
Marr is scheduled to be sentenced on April 27, 2017.
He faces a mandatory minimum sentence of 10 years in federal prison and a fine of up to $250,000.
This case is being investigated by the FBI's Memphis Child Exploitation Task Force and the BPD.
Assistant U.S. Attorney Deb Ireland is prosecuting this case on the government’s behalf.
Anyone who believes they may have information about related activities is asked to contact the Memphis Child Exploitation Task Force at 901.747.4300.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
Man Arrested at Dulles International Airport with Fake PassportRead the Press Release
ALEXANDRIA, Va. – Kofi Kyei Asare Takyi, 44, a citizen of Ghana, was arrested Monday after attempting to enter the United States with a false passport at Dulles International Airport.
“Violating U.S. immigration law is a very serious offense, and one that has the potential to threaten our nation’s security,” said Wayne Biondi, Customs and Border Protection (CBP) Port Director of the Area Port of Washington Dulles. “We hope that this criminal prosecution deters would-be impostors, and reminds them that Customs and Border Protection officers are skilled at detecting fraudsters and that we remain ever vigilant at our nation’s 328 ports of entry.”
Takyi was charged with false statements in application and use of a passport. According to allegations in the criminal complaint, on January 22, Takyi arrived at Dulles International Airport on a flight from Brussels, Belgium, and presented a false passport in the name of Michael Christopher Wilson to a CBP agent. After questioning and a search of Takyi’s baggage, CBP agents found several identifying documents, including a Georgia driver’s license; a Maryland driver’s license; a social security card all in the name of Michael Christopher Wilson. Additionally, CBP agents found a Ghanaian passport, a Maryland driver’s license, and several credit cards in the name of Michael Christopher Wilson and Kofi Kyei Asare . A finger print identification examination returned positive results which included an FBI number having multiple arrests and at least three identities. After being advised of his Miranda rights, admitted that Michael Christopher Wilson was not his true identity, and that he was a citizen of Ghana and not the United States.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Wayne Biondi, Customs and Border Protection Port Director of the Area Port of Washington Dulles, made the announcement. Special Assistant U.S. Attorney Marina C. Fernandez is 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. 1:17-mj-26.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
MEDIA ADVISORY-- Federal and City Officials to Hold Press Conference Regarding Destruction of Forfeited Drug ParaphernaliaRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez, U.S. Marshal Conrad E. Candelaria, Albuquerque Mayor Richard J. Berry, DEA Assistant Special Agent in Charge Sean R. Waite, and FBI Assistant Special Agent in Charge Derek A. Fuller will hold a press conference tomorrow afternoon immediately preceding the destruction of a large quantity of drug paraphernalia seized and forfeited in connection with several federal narcotics trafficking investigations.
The press conference will take place at 2:00 p.m., Friday, January 27, 2017, at City of Albuquerque Solid Waste Facility located at 18000 Cerro Colorado SW (Cerro Colorado Landfill) in Albuquerque, N.M. The media will have the opportunity to film the destruction of the drug paraphernalia, which consists primarily of glassware, including numerous bongs and crack pipes, seized from “smoke shops” and “head shops,” and is valued at more than $220,000.
The destruction of drug paraphernalia is part of the U.S. Marshals Service’s asset forfeiture mission. It is a vital part of the federal government’s efforts to combat crime by stripping criminals of the tools of their trade and their ill-gotten gains.
WHO:
U.S. Attorney Damon P. Martinez
U.S. Marshal Conrad E. Candelaria
Albuquerque Mayor Richard J. Berry
DEA Assistant Special Agent in Charge Sean R. Waite
FBI Assistant Special Agent in Charge Derek A. Fuller
WHEN:
Friday, January 27, 2017 at 2:00 p.m.
WHERE:
City of Albuquerque Solid Waste Facility
Cerro Colorado Landfill
18000 Cerro Colorado SW
Albuquerque, NM 87121
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (i.e., driver’s license) and valid media credentials.
Louisville Physician Convicted of Unlawful Distribution of Controlled Substances and Health Care FraudRead the Press Release
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr., today announced the conviction of a Louisville physician, in United States District Court, before Chief District Judge Joseph H. McKinley, Jr., on multiple charges including unlawful distribution of controlled substances and health care fraud.
“The criminal actions of George Kudmani contributed to untold suffering and hardships for patients and their families in his care,” stated U.S. Attorney John Kuhn. “A physician takes an oath to do no harm, yet in this case Dr. Kudmani recklessly prescribed drugs to those suffering from opioid use disorders with no legitimate medical purpose. We thank the DEA, Louisville Metro Police Department, the Medicaid Fraud Control Unit of the Kentucky Attorney General’s Office and the FBI for the persistence and hard work that led to today’s conviction.”
Following a seven-day trial, the jury deliberated approximately nine hours before finding the former physician, George Kudmani, 71, guilty on 26 of 29 charges. Sentencing is scheduled before Chief Judge McKinley on June 6, 2017 at 11 a.m., in Louisville.
The jury found Kudmani guilty of unlawfully distributing and dispensing controlled substances, not for a legitimate medical purpose and beyond the bounds of a professional medical practice between July 2009 and September 2012. The controlled substances prescribed were Oxycodone, a schedule II controlled substance, and Hydrocodone, a schedule III controlled substance.
Further, Kudmani was convicted of committing health care fraud for falsely and fraudulently billing Kentucky Medicaid (Passport) by submitting claims for medically unnecessary Transvaginal Ultrasounds (TVS), TVSs not performed, and billing for TVS reports that were never prepared for patients, between January 2009 and September 2012.
Kudmani operated an obstetrician/gynecological medical practice located at 9702 Stonestreet Road, in Louisville, Kentucky from December of 1980 until 2012. The practice did not employ any other individual with medical training. A typical first-time patient would pay $75 for a gynecological exam, and each visit thereafter, the patient would typically pay $35 in cash and receive a Schedule II-V controlled substance prescription without a physical examination. Patients testified to paying cash and being prescribed controlled substances for years.
Kudmani faces a maximum potential penalty of no more than 30 years in prison, a fine of $13,750,000, and a 3-year period of supervised release.
This case is being prosecuted by Assistant United States Attorneys Joseph Ansari and Lettricea Jefferson-Webb, assisted by paralegal Lori Cracknell and was investigated by the United States Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Kentucky Medical Fraud Control Unit and Louisville Metro Police Department (LMPD).
Los Zetas Cartel Operative Sentenced to Federal Prison for Cocaine TraffickingRead the Press Release
In San Antonio today, 44-year-old Sergio Heredia (aka “Keko,” “Sobrino”) of Piedras Negras, Mexico, was sentenced to 15 years in federal prison for trafficking hundreds of kilograms of cocaine announced United States Attorney Richard L. Durbin, Jr., Drug Enforcement Administration (DEA) Special Agent in Charge Joseph Arabit, Houston Division and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division.
In August 2015, Heredia pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine. By pleading guilty, Heredia admitted that from January 2007 to May 2015, he conspired with others to distribute more than five kilograms of cocaine in the United States.
According to evidence in this case, Heredia and others trafficked cocaine and marijuana for distribution in San Antonio, Fort Worth and elsewhere. It was done, in part, through a San Antonio-based network of drug distributors and money launderers led by 34–year-old San Antonio resident Walter Jacobo. This investigation revealed that the source of drug supply to Jacobo’s organization, as well as several other organizations involved in this scheme, was the Los Zetas Cartel. Together, they were responsible for the trafficking of more than 180,000 pounds of marijuana, hundreds of kilograms of cocaine, in excess of $18 million in U.S. currency, dozens of firearms and thousands of rounds of ammunition.
This investigation has resulted in the conviction of 18 individuals on federal charges. Twelve (12) have been sentenced; six (6) remain in custody pending sentencing. Sentences range from 20 years in federal prison to probation. On January 19, 2017, Jacobo was sentenced to ten years in federal prison followed by five years of supervised release for his role in the scheme.
This case resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by a High Intensity Drug Trafficking Area (HIDTA) San Antonio group comprised of investigators from DEA, HSI, Internal Revenue Service-Criminal Investigation, San Antonio Police Department, Hollywood Park Police Department and the Bexar County Sheriff’s Office.
The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations, and those primarily responsible for the nation’s illegal drug supply.
Lincoln Man Sentenced for Conspiracy to Distribute Methamphetamine and Possession of GunRead the Press Release
United States Attorney, Deborah R. Gilg, announced that on January 26, 2017, Cole James Adams, 34, of Lincoln, was sentenced to a total of 18 years (216 months) in prison for his involvement in a conspiracy to distribute and possess with intent to distribute 50 grams or more of a substance containing methamphetamine between January of 2014 and September of 2015 and his possession of a firearm in furtherance of that offense on September 4, 2015. Adams was sentenced to 13 years (156 months) on the drug charge and received a consecutive 5-year sentence (60 months) on the gun charge. Following the prison terms, Adams will serve five years on supervised release. He was also ordered to pay $200 in special assessments.
Information obtained by law enforcement indicated that Adams was responsible for the distribution of at least 500 grams (approximately 18 ounces) of methamphetamine in the Lincoln area. On September 4, 2015, Adams allowed Lincoln Police officers to search his bedroom. Officers found over 200 grams of methamphetamine, two handguns, 2 shotguns, a scale, and packaging materials. Adams admitted he had been selling methamphetamine, saying he had 10-20 customers, and that he believed some of them were re-selling the methamphetamine.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
League City Woman Convicted on Child Pornography ChargeRead the Press Release
GALVESTON, Texas - A 46-year-old woman has entered a guilty plea to one count of receipt of child pornography, announced U.S. Attorney Kenneth Magidson.
Tracey Lynn Bautista came to the attention of law enforcement after investigators found evidence she was receiving child pornography from an individual who had been arrested for the promotion of child pornography. Investigators found several child pornography images and videos which were sent to Bautista via text messaging and the online messaging application known as Kik Messenger. Bautista acknowledged receipt of these images by responding “nice” and “[w]ow. [g]ood pic.”
Additionally, investigators found text messages in which Bautista discusses a minor relative with this individual. Bautista offered to get pictures of the minor relative for him and later sent a photo of a 16-year-old female relative who is topless with her breasts exposed for the camera’s viewing.
U.S. District Judge George C. Hanks Jr. accepted the plea and set sentencing is set for April 29, 2017. At that time, Bautista faces a minimum of five and up to 20 years in federal prison as well as a possible $250,000 maximum. She was permitted to remain on bind pending that heating.
Immigration and Customs Enforcement’s Homeland Security Investigations and the Montgomery County Precinct 1 Constable’s Office conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Kimberly Ann Leo, 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."
Leader and Two Co-Conspirators Admit to Their Roles in Six Year Scam Using Fake Companies and False Documentation to Defraud Car Dealers and LendersRead the Press Release
Baltimore, Maryland – Sean Stanley Jackson, age 44, of Baltimore, pleaded guilty today to wire fraud and money laundering charges as the leader of a scheme to defraud auto dealers and lenders in Anne Arundel, Howard, Baltimore and Montgomery counties. Co-defendants Erika Patrice Ryles, age 35, of Baltimore; and Walter Jermaine Perry, III, age 39, of Owings Mills previously pleaded guilty to their roles in the scheme.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Thomas J. Holloman of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Chief Terrence B. Sheridan of the Baltimore County Police Department; and Commissioner Kevin Davis of the Baltimore Police Department.
According to their plea agreements, from January 2010 to February 2016, Jackson, Ryles, and Perry conspired to make false representations on loan applications to lenders in order to obtain loans to purchase vehicles from dealers, for which they were not financially qualified. Jackson and his co-conspirators organized and registered shell entities, including The Black Group LLC, which they used to make false representations in loan applications. For example, the conspirators falsely represented that The Black Group was a legitimate, thriving business with millions of dollars in annual revenues. To support their false representations, the defendants created fake documents, including paystubs, bank account statements, utility bills and corporate tax returns and schedules for the shell entities, which they submitted with auto loan applications, and to banks and other lenders.
Jackson admitted that on December 5, 2013, he sent a message to Ryles asking her to create a fake bank account statement showing specific deposits and balance, which she did. Jackson and another co-conspirator, who was an elderly family member, then used the fraudulent bank statement to apply for loans on behalf of The Black Group on two different 2014 Ford F450 trucks, a Chevrolet Express Van, and a 2009 Audi A8. After obtaining more than $246,349 to purchase the four vehicles, Jackson and the co-conspirator defaulted on the loans, causing losses to the lender. In June 2014, Ryles again prepared false bank statements at Jackson’s request. Jackson and the co-conspirator then used the false bank statement in support of a loan application to purchase a 2006 5900i International Dump Truck. After receiving the financing to purchase the dump truck, Jackson and the co-conspirator again defaulted on the loan, causing a loss to the lender.
Jackson also used The Black Group to launder proceeds he obtained from the sale of a 2012 Chevrolet Avalanche. On May 10, 2012, Jackson submitted a false loan application and obtained $63,067.38, to finance the purchase of a 2012 Chevrolet Avalanche. After a few months, Jackson stopped making payments on the loan and the lender attempted to repossess the vehicle, but was unsuccessful since Jackson did not live at the address he provided on the loan application. Jackson continued using the vehicle. On November 29, 2014, Jackson went to a title shop in Maryland and presented a Mississippi title for the Avalanche which reflected that the vehicle had been sold to The Black Group on November 24, 2014, by the original owner, Thomas Mack, and that the vehicle did not have any outstanding liens. In order to conceal the true ownership of the vehicle, Jackson used the Mississippi title to obtain a Maryland MVA title on the Avalanche in the name of The Black Group. On December 15, 2014, Jackson, acting as a representative of The Black Group, sold the Avalanche to a car dealership in Maryland for $34,000, receiving a check in that amount made payable to The Black Group.
The next day, Jackson directed Perry to open two bank accounts representing that Perry owned a company called “Black Group,” and had Perry deposit the check from the sale of the Avalanche into one of those accounts. On December 18, 2014, at Jackson’s direction, Perry use the funds in that account to purchase three cashiers’ checks totaling $23,000, each made payable to Jackson. In addition, Perry withdrew $8,000 in cash and gave the money to Jackson. On January 9, 2015, Jackson had Perry purchase the Avalanche from the dealership where he’d sold it. At Jackson’s direction, Perry applied for a loan to purchase the vehicle, falsely stating that he was president of the Black Group LLC. Jackson provided Perry with two fake pay stubs, which Perry used as part of his loan application.
As a result of his conduct, Jackson caused a loss of at least $250,000 to lenders and car dealers. As part of their plea agreements, Jackson, Ryles and Perry are required to pay restitution in the full amount of the loss, which will be determined by the Court.
Jackson and Ryles each face a maximum sentence of 20 years in prison for wire fraud conspiracy. Jackson and Perry face a maximum sentence of 20 years in prison for money laundering. Chief U.S. District Judge Catherine C. Blake scheduled sentencing for Jackson on April 28, 2017 at 10:30 a.m.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the IRS - Criminal Investigation and Baltimore County and City Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Phil Selden and Dana J. Brusca, who are prosecuting the case.
Lawson Man Charged with Illegal Pipe BombRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lawson, Mo., man was charged in federal court today with illegally possessing a pipe bomb.
Josh Louis Dubrel, 20, of Lawson, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo. Dubrel, who was arrested today, remains in federal custody pending a detention hearing scheduled for Tuesday, Jan. 31, 2017.
Today’s criminal complaint alleges that Dubrel possessed a pipe bomb that was not registered to him. The complaint describes the pipe bomb as “a six to eight-inch-long, one-inch nominal diameter metal pipe with metal end caps attached, containing explosive material, complete with a green pyrotechnic fuse extending out the top opening.”
According to an affidavit filed in support of the complaint, Dubrel has been making and storing pipe bombs at his residence, which is directly across the street from Lawson High School and Lawson Middle School.
Law enforcement officers executed a search warrant at Dubrel’s residence today and placed him under arrest. During a search of the residence, officers discovered a brown briefcase in Dubrel’s bedroom that contained a completed metal pipe bomb as well as five metal pipe nipples, five metal end caps, a pyrotechnic fuse, plumber putty, an electronic firing system, two light bulbs, and apparent explosive material.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Adam Caine and Justin Davids. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Las Vegas Woman Sentenced for Filing over 80 False Tax ReturnsRead the Press Release
LAS VEGAS, Nev.—A Las Vegas woman was sentenced Wednesday to eight months in prison, eight months of home confinement, and three years of supervised release for filing 83 false tax returns totaling approximately $450,000, announced U.S. Attorney Daniel G. Bogden of the District of Nevada and Special Agent in Charge Tara Sullivan of the Internal Revenue Service.
“The defendant defrauded the U.S. Government and taxpayers each time she filed a false income tax return,” said U.S. Attorney Bogden. “This sentencing shows that such greed based criminal behavior does come with a cost. We will continue to pursue individuals who commit tax fraud in Nevada.”
"The sentencing of Roxanne Pitts reflect the continued efforts of IRS Criminal Investigation to prosecute those stealing from the government," said SAC Sullivan.
Roxanne Pitts, 51, was charged by a criminal information and pleaded guilty to conspiracy to defraud the government with respect to claims on Oct. 16, 2016.
According to the plea agreement, Pitts admitted that, from June 2011 to about Feb. 2013, she conspired with others to file 83 false U.S. Individual Income tax returns with the IRS. She obtained the identities of deceased individuals through genealogy websites and placed fictitious amounts of wages, withholding, and various deductions on the false tax returns. Pitts electronically filed the false tax returns and directed the IRS to deposit the fraudulent income tax refunds onto pre-paid debit cards that she had obtained in the names of the deceased individuals. In some instances, she directed the IRS to mail U.S. Treasury checks to various Las Vegas addresses. She paid others to receive the checks and to cash the U.S. Treasury checks that she and others fraudulently obtained from the U.S. Treasury.
The case was investigated by the IRS and prosecuted by Assistant U.S. Attorney Nicholas Dickinson.
###
Las Vegas Resident Charged with Murder in Aid of RacketeeringRead the Press Release
SAN FRANCISCO- A federal grand jury indicted Las Vegas resident Wen Bing Lei, aka Raymond Lei, aka Black Raymond, aka Skinny Raymond, for murder in aid of racketeering, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. According to the indictment filed today, the defendant was a member of the Chee Kung Tong (CKT), a predominantly Chinese-American association based in San Francisco’s Chinatown. The indictment accuses Lei, 50, of aiding, abetting, and causing the death of Allen Leung, one of the association’s previous leaders.
According to the indictment, the CKT is an organization formed in the late 1800s primarily for civic purposes. The indictment alleges that while some of CKT’s members are involved strictly in legal functions and activities of the organization, other members were involved in illegal activities including narcotics distribution, assault, robbery, extortion, collection of unlawful debts, murder for hire, money laundering, trafficking in stolen goods, illegal firearms possession, and obstruction of justice. The indictment further alleges that members protected and expanded the enterprise’s criminal operation by using violence, including murder, solicitation to commit murder, assaults, intimidation, and threats of violence directed against those who would act against CKT, its members, and its associates. Allegedly, on February 27, 2006, Lei conspired with other members of CKT to aid, abet, and commit the murder of Allen Leung. Among the purposes listed in the indictment for Lei’s involvement in the murder is to gain entrance to, and to maintain and increase his position in, the CKT. Lei is charged with one count of murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(1).
Lei currently is in the custody of the Bureau of Prisons on other charges and will be transported to the Northern District of California to make his initial appearance before U.S. Magistrate Judge Sallie Kim on January 31, 2017.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a mandatory minimum sentence of life in prison. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney William Frentzen is prosecuting the case with the assistance of Bridget Kilkenny. The prosecution is the result of an investigation by the FBI.
Las Vegas Man Sentenced to Nearly Six Years for Possession with Intent to Distribute Heroin and MethamphetamineRead the Press Release
LAS VEGAS, Nev.— A Las Vegas man was sentenced today by U.S. District Judge Robert C. Jones to 70 months in prison and four years of supervised release for possession with intent to distribute 400 grams of heroin and methamphetamine, announced U.S. Attorney Daniel G. Bogden of the District of Nevada.
“The defendant concealed the drugs in his vehicle with the intent to avoid law enforcement detection,” said U.S. Attorney Bogden. “We remain committed to working with the DEA and other law enforcement partners in keeping dangerous drugs off our streets.”
Paulino Rafael Quirazco-Valencia, 30, pleaded guilty to possession with intent to distribute a controlled substance. Co-defendant Arnold Gutierrez, 30, of Las Vegas, pleaded guilty to two-counts of possession with intent to distribute a controlled substance. Gutierrez was sentenced to 24 months in prison per count to run concurrent. They were indicted on Feb. 9, 2016.
According to court documents, in January 2016, during an ongoing investigation into the distribution of drugs, DEA Special Agents observed Quirazco-Valencia and Gutierrez manipulating the driver’s side area inside a vehicle parked at an apartment complex and acting in a manner consistent with drug trafficking. They drove off in the vehicle and were stopped by law enforcement. After obtaining consent to search the vehicle, officers located approximately 277 grams of heroin in the center console and a Sig Sauer .38 caliber handgun underneath the front middle seat. The drugs were found in colored balloons and baggies of various sizes consistent with drug distribution. Quirazco-Valencia was arrested and stated that the drugs in the vehicle belonged to him and he was delivering them to a customer. He consented to the search of his residence. The total amount of drugs and money seized from the traffic stop and residence was 395.4 grams of heroin, 4.6 grams of methamphetamine, and $19,290 in cash.
The case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Brandon Jaroch.
###
Kaysville CPA Pleads Guilty to Tax Evasion and is Sentenced to PrisonRead the Press Release
SALT LAKE CITY – David Brian Bybee, age 56, of Kaysville, Utah, a Utah businessman and CPA, pleaded guilty Wednesday afternoon to one count of attempt to evade and defeat payment of taxes, U.S. Attorney John W. Huber announced today.
According to the plea agreement, Bybee managed and controlled several companies from his home in Kaysville or at other business addresses in Davis County. Bybee hired and managed employees for the Bybee companies. His duties included generating revenue, keeping books and records, paying expenses, making employee payroll, withholding and paying over taxes from employee payroll, and filing all required business returns. The Bybee companies offered various services, including membership in various business professional associations and groups, along with bookkeeping, accounting, and tax management training and services.
As a part of the plea agreement executed Wednesday, Bybee admitted he formed the National Association of Certified Bookkeepers, LLC (NACPB) on or about July 21, 2006, with himself and D.B. as its only members. From at least Jan. 7, 2007, to Aug. 7, 2008, NACPB held a business account at Wells Fargo Bank. Bybee and D.B. were the only authorized signers on the Wells Fargo account. Bybee also formed the National Bookkeepers Association, LLC (NBA) about Jan. 9, 2008, listing his sons, B.B. and L.B., as NBA’s only members. From Jan. 16, 2008, to at least March 1, 2016, NBA held a business account at America First Credit Union. B.B. and L.B. were the only authorized signers on the account. Revenues generated by the two associations were received primarily through credit card sales deposited into the Wells Fargo and America First Credit Union accounts.
Bybee further admitted, as a part of the plea agreement, that he and D.B. filed a Form 1040 joint personal return with the IRS for tax years 2000 through 2002 and 2005 through 2009, and for which the IRS assessed Bybee $153,569.41 as of March 14, 2011. Bybee admitted he had willfully failed to pay those taxes due and owing the United States.
During the period from 2008 to 2011, substantial revenues from credit card sales were deposited into the America First Credit Union account, Bybee admitted as a part of the plea agreement. Despite not being an authorized signer on the account, Bybee controlled significant electronic funds transfers out of the account for, among other things, various personal expenditures. The expenditures included a mortgage, cars, jet skis, and a boat. He also admitted that on many occasions, he also issued checks from the America First Credit Union Account, signing B.B.’s signature on the checks. In taking or causing these acts, Bybee acknowledged he acted willfully, intending to evade and defeat payment of tax due and owing the United States.
District Judge Dee Benson also accepted and imposed a stipulated sentence of 12 months and one day during Wednesday’s hearing. Bybee also agreed to pay $469,381.19 in restitution. This figure includes individual income tax obligations totaling $370,661.96 and $98,719.23 in payroll tax obligations. The $98,719.23 stems from Bybee’s failure, as a person with corporate responsibilities, to deduct and collect payroll taxes, deposit payroll taxes with the IRS, and truthfully account for payroll taxes to the IRS for several companies he controlled. Bybee will be on supervised release for 36 months when he finishes his prison sentence. He was ordered to report to the Bureau of Prisons to begin serving his sentence at noon on March 22, 2017.
The case was prosecuted by the U.S. Attorney’s Office in Salt Lake City and investigated by special agents of IRS-Criminal Investigation.
Jefferson County Men Convicted of Drug Trafficking Charges in Federal CourtRead the Press Release
BEAUMONT, Texas – Acting U.S. Attorney Brit Featherston announced today that three Beaumont men have been convicted by a jury following a three-day trial and lengthy investigation into drug trafficking in the Eastern District of Texas.
Kristopher George Ardoin, 30; Kody Dwayne Ardoin, 22; and Zerrick Edward Walker, 32; were found guilty of conspiracy to possess with intent to distribute 280 grams or more of crack cocaine. The verdict was reached by a jury late on Jan. 25, 2017 following a trial before U.S. District Judge Marcia Crone. Kristopher Ardoin was also found guilty of a firearms conspiracy.
According to information presented in court, for over a decade the Ardoin family and others openly distributed crack cocaine from their home at 1107 Avenue A in Beaumont. In the last ten years, the Beaumont Police Department has received over 2,000 calls for service to the neighborhood block controlled by the Ardoin organization, including approximately 139 calls to the crack house itself. An estimated 280 grams of crack cocaine is believed to have been distributed from the location during this time. A federal grand jury returned a four-count indictment on May 4, 2016 charging 13 individuals with federal drug and firearms violations. The other ten defendants have already pleaded guilty to their crimes.
"This is a great example of federal, state and local law enforcement coming together to make the community a safer place to live,” said Acting U.S Attorney Featherston. “I appreciate the hard work of the investigators and prosecutors who worked day and night to put this case together."
Under federal statutes, the defendants each face a minimum of 10 years and up to life in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Beaumont Police Department. The U.S. Marshals Service also assisted in today’s law enforcement activities. This case was prosecuted by Assistant U.S. Attorneys Lesley A. Woods and Robert L. Rawls.
Huntsville Man Sentenced to Nearly Four Years in Prison for $600,000 Tax Fraud SchemeRead the Press Release
HUNTSVILLE – A federal judge today sentenced a Huntsville man to nearly four years in prison for his scheme to have more than $600,000 in fraudulent federal and Washington, D.C., tax refund checks deposited into his bank accounts.
U.S. District Judge Abdul K. Kallon sentenced MARTIN TYRONNE WOODS, 36, to three years and 10 months in prison on one count of theft of government property. Woods pleaded guilty in October. He already is in custody.
Acting U.S. Attorney Robert O. Posey, IRS Special Agent in Charge Veronica Hyman-Pillot, FBI Special Agent in Charge Roger C. Stanton, District of Columbia Chief Financial Officer Jeffrey S. DeWitt, and D.C. Office of Tax and Revenue Criminal Investigation Division Chief Gilbert R. Garza announced the sentence.
“Tax fraud and attempted tax fraud are an increasingly serious problem and criminals are becoming more skillful at committing this type of crime,” Posey said. “The U.S. Attorney’s Office is fortunate to work with law enforcement partners who are adept at identifying and investigating such fraud, and we will continue to prosecute criminals who steal from the government and the taxpayers.”
“Every taxpayer is affected by refund fraud when tax dollars are stolen from the government,” Hyman-Pillot said. “Martin Woods learned the hard way that participating in refund schemes and stealing taxpayer funds will result in punishment.”
“I want to express my appreciation to my agents and to our IRS-Criminal Investigation partners for their hard work in bringing Mr. Woods to justice,” Stanton said. “The FBI will continue to work with our partners to hold accountable those who defraud the government.”
Garza expressed his gratitude to IRS-Criminal Investigation, the FBI and the U.S. Attorney’s Office for the Northern District of Alabama for their partnership in the investigation.
DeWitt said, “The D.C. Office of Tax and Revenue will vigorously pursue justice against individuals who commit stolen identity theft and tax fraud. As chief of the Criminal Investigation Division for Washington, D.C., we are committed to tracking down these criminals who steal money from the government and thus harm the honest taxpayers and the communities we serve.”
From September 2012 through April 2013 in Madison County, Woods and others, not named in the court documents, submitted the fraudulent federal and District of Columbia tax refund checks for deposit into Woods’ bank accounts. Many of the refunds were in the names of deceased individuals, according to the government’s sentencing memorandum.
The IRS and FBI investigated the case, which Assistant U.S. Attorney Russell E. Penfield prosecuted.
###
Holt Man Sentenced for Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Holt, Mo., man was sentenced in federal court today for sharing child pornography over the Internet.
Jeffrey T. Pachl, 54, of Holt, was sentenced by U.S. District Judge Howard F. Sachs to eight years in federal prison without parole.
On July 25, 2016, Pachl pleaded guilty to attempting to distribute child pornography over the Internet. He admitted that he used peer-to-peer file-sharing software to share images of child pornography over the Internet. An FBI agent identified Pachl’s computer as making child pornography available for other users to download and FBI agents executed a search warrant at his residence on April 18, 2014. Agents seized two desktop computers, an external hard drive and seven USB drives from the residence.
Agents contacted Pachl at his workplace and interviewed him. Pachl admitted that he used a desktop computer in the basement office of his home to search for and download child pornography, and that he had been using the file-sharing program for approximately 10 years.
Investigators found more than 27,000 images and more than 300 videos of child pornography on the USB drives. Several dozen images of child pornography were located on the computers and external drive, including images of bondage and torture, many of prepubescent victims. Evidence was located related to extensive Internet browsing of files indicating access to hundreds of files of possible child pornography.
Pachl also used an alias to communicate with females via Facebook. Investigators discovered numerous messages with females, most of whom appeared to be under the age of 18. Pachl discussed sexual photos with most of the females and asked for additional photographs from many of them. Agents also discovered Pachl’s e-mail account, which he used to receive photographs and spoke explicitly via e-mail with a person who claimed she was 14 years old.
Under the terms of his plea agreement, Pachl must pay restitution to six victims who have petitioned for restitution from every person who received or possessed pictures of their childhood sexual abuse. Pachl must pay $5,000 in restitution to each victim, or $3,000 to each victim if he can pay within 30 days.
This case was prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Gretna Woman Pleads Guilty to Theft of Federal FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DANIELLE RANDALL, 42, of Gretna, pled guilty today to Count One of an Indictment charging her with theft of federal funds.
According to court documents, on or about August 29, 2012, Hurricane Isaac struck southeastern Louisiana and shortly thereafter, the Federal Emergency Management Agency (“FEMA”) declared a major disaster in parts of southeastern Louisiana, including the Eastern District of Louisiana. To assist individuals in coping with damage to their personal property and primary residences, FEMA established an application process for temporary disaster assistance. RANDALL submitted an application for Disaster Assistance for damage to her apartment and personal property. After she received an initial disbursement of approximately $3,000, RANDALL continued to apply for housing assistance while falsely representing her rental address and housing expenses. In total, RANDALL’s false submissions to FEMA allowed her received four U.S. Treasury checks totaling $10, 953 to which she was not entitled.
RANDALL faces a maximum penalty of 10 years imprisonment, a maximum fine of $250,000 and a special assessment of $100. Additionally, RANDALL also faces mandatory restitution of at least $10,953. U.S. District Judge Carl J. Barbier set sentencing for May 4, 2017.
U.S. Attorney Polite praised the work of the Department of Homeland Security, Office of Inspector General in investigating this matter. Assistant U. S. Attorney Sharan E. Lieberman is in charge of the prosecution.
Grand Rapids Man to Spend Five Years in Prison for Trafficking FirearmsRead the Press Release
GRAND RAPIDS, MICHIGAN - Donte Timothy Bacon, 31, of Grand Rapids, was sentenced to 60 months’ imprisonment, Acting U.S. Attorney Andrew Birge announced today. In August, Bacon pled guilty to selling a firearm to a prohibited person and possession of a firearm with an obliterated serial number. Charles Lee Samuels, 28, earlier was sentenced to 18 months in prison for his lesser role in the crimes.
On five different occasions in August and September 2014, Bacon sold a firearm to a person who was not permitted to possess it under federal law. One of the firearms was sold with a high-capacity magazine. Two of those firearms had been purchased by Bacon and Samuels and were sold after Bacon removed the serial numbers. During the final transaction, Bacon and Samuels used a hand-grinder to remove the serial number at the time of sale.
In his final sentencing before retiring from the bench, U.S. District Judge Robert Holmes Bell observed the seriousness of trafficking firearms. Judge Bell ordered Bacon to serve three years of supervised release following his term of custody and expressed his hope that Bacon will return as a productive member to his community.
"The diversion of firearms for unlawful purposes or to those who cannot legally possess them endangers each and every member of our society," said Acting U.S. Attorney Birge. "The U.S. Attorney’s Office will prosecute those who willfully circumvent federal firearms laws designed to protect the public."
"Selling firearms to prohibited individuals contributes to the cycle of gun violence plaguing our neighborhoods," said Special Agent in Charge Robin Shoemaker of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. "ATF will continue to use all available resources to put a stop to illegal gun sales. Let this conviction stand as a warning to others willing to put profit before public safety."
The ATF conducted the investigation, with assistance from the Grand Rapids Police Department. Assistant U.S. Attorneys Justin M. Presant and Alexis M. Sanford prosecuted the case.
END
Gainesville Pharmacy Technician Found Guilty of Attempted Online Enticement of A Minor and Pornography OffensesRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that a federal jury in Jacksonville has found Matthew Bryan Caniff (33, Gainesville) guilty of attempted online enticement of a minor child to engage in illegal sexual activity, online solicitation of child pornography, and attempted production of child pornography. On the attempted online enticement count, Caniff faces a mandatory minimum penalty of 10 years, up to life, in prison. He also faces a minimum of 15 years, up to 30 years’ imprisonment each on the solicitation and the attempted production charges. Prior to his arrest, Caniff had worked as a pharmacy technician at UF Health Shands Hospital in Gainesville. A sentencing hearing is scheduled for April 26, 2017.
According to testimony and evidence introduced during the trial, from March 31, 2016, through April 1, 2016, Caniff engaged in a series of text conversations over the Internet with a person he believed to be a 13-year-old child. Unbeknownst to Caniff, this "child" was actually an undercover FBI agent. During the course of these online conversations, Caniff discussed his desire to have sex with the “child” in detail. He also made several requests for the “child” to send him images engaging in sexually explicit conduct.
In the early morning hours of April 1, 2016, Caniff drove his vehicle from his residence in Gainesville to a residence in St. Johns County to meet the “child” for sex. He was arrested at the meeting location by St. Johns County Sheriff's deputies. A search of his person revealed that Caniff had brought a plastic bag containing several prescription pills that he had taken from UF Health Shands Hospital and had intended to share with the “child” during their planned sexual encounter.
This case was investigated by the St. Johns County Sheriff’s Office and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Four School Bus Company Owners Convicted for Bid Rigging and Mail Fraud Conspiracies Involving Puerto Rico Public School Bus ServicesRead the Press Release
Following a week-long trial, a federal jury in Puerto Rico convicted four individuals for participating in bid rigging and fraud conspiracies at an auction for public school bus transportation services in Puerto Rico’s Caguas municipality, the Department of Justice announced.
Gavino Rivera Herrera, Luciano Vega Martínez, Alfonso Gonzalez Nevarez and René Garay Rodríguez were found guilty today in the U.S. District Court of the District of Puerto Rico, in San Juan, for conspiring to rig bids and allocate the market for public school bus transportation contracts in the municipality of Caguas from approximately August 2013 until May 2015. Each individual was also found guilty of conspiracy to commit mail fraud and four counts of mail fraud for defrauding the municipality of Caguas to fraudulently obtain contracts for school bus transportation services. Sentencing is set for May 30, 2017.
“These defendants enriched themselves at the expense of Puerto Rico schools and have been held accountable by a jury of their peers,” said Acting Assistant Attorney General Brent Snyder of the Department of Justice’s Antitrust Division. “The division will continue to work with our law enforcement partners to ensure that school districts and other consumers benefit from competitive markets.”
“These convictions should serve as a reminder that Federal law enforcement agencies intend to vigorously prosecute those who manipulate government bidding processes to enrich themselves illegally,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico. “Federal law enforcement agencies will continue their ongoing efforts to investigate and prosecute these crimes, in order to promote and protect free and fair competition in the marketplace.”
“The defendants’ actions in depriving the citizens of Caguas of the right to choose what is best for the transportation of their schoolchildren, while also putting the defendants’ own financial interests above those of equally deserving Puerto Rican business owners, were particularly harmful during these difficult economic times.” said Special Agent in Charge Douglas A. Leff of the FBI’s San Juan Division. “The FBI is grateful for its partnership with the Antitrust Division and the U.S. Department of Education Office of Inspector General for their endless dedication to protecting the rights of all businesses, large and small, to compete in a fair marketplace.”
“Today's action demonstrated that these business owners willfully and intentionally sought to enrich themselves at the expense of students and taxpayers. That is unacceptable,” said Special Agent in Charge Yessyka Santana of the U.S. Department of Education Office of Inspector General’s Southeastern Regional Office. “The Office of Inspector General will continue to work with our law enforcement partners to aggressively pursue anyone who games the system for their own selfish purpose and protect these vital funds from this type of calculated plunder.”
According to evidence presented at trial, the four school bus company owners and other co-conspirators carried out the conspiracy by agreeing during meetings and communications to allocate contracts for transportation routes awarded by the municipality of Caguas. Trial evidence showed that the conspirators submitted fraudulent certifications and received award letters by certified mail in connection with their conspiracy to defraud the Municipality of Caguas.
The defendants were convicted of bid rigging and market allocation in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine. They were also convicted of one count of conspiracy to commit mail fraud and four counts of mail fraud. Each count of mail fraud, and conspiracy to commit mail fraud, carries a maximum sentence of 20 years in prison and a $250,000 fine.
Today’s conviction arose from a federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in Puerto Rico’s school bus transportation services industry. This investigation is being conducted by the Antitrust Division’s Washington Criminal I Section, the District of Puerto Rico U.S. Attorney’s Office, the FBI’s Puerto Rico Field Office and the U.S. Department of Education Office of Inspector General. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal I Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Puerto Rico Field Office at 787-754-6000.
Former Washington Area Man Sentenced to Prison for False Statements to a Financial InstitutionRead the Press Release
DAVENPORT, IA - On January 26, 2017, Thomas D. Gretter, 66, formerly of Washington, Iowa, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 13 months in federal prison for two counts of making a false statement to a financial institution, announced United States Attorney Kevin E. VanderSchel. The 13-month sentences were ordered to be served at the same time. Gretter was also ordered to serve five years of supervised release following his prison term, pay $200 to the Crime Victims’ Fund, and pay a total of $1,185,704.77 in restitution to Hills Bank & Trust Company (“Hills Bank”).
Gretter pleaded guilty to these charges on September 20, 2016. According to the plea agreement, on or about December 18, 2013, and October 6, 2014, Gretter obtained loans from Hills Bank. As security for each of these loans, Gretter pledged multiple items of collateral that he knew included false statements, and were unavailable to Hills Bank as security. Specifically, Gretter forged the signatures of multiple people on items of pledged collateral and provided those documents to Hills Bank in order to influence Hills Bank to make the loans.
This matter was investigated by the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
-END-
Learn more about this release by contacting Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected]
Former Shelby County Man Agrees to Plead Guilty to Illegally Accessing Women's Computers to Obtain Explicit PhotographsRead the Press Release
BIRMINGHAM – Federal prosecutors today charged a former Shelby County resident with illegally accessing e-mail and cloud storage accounts of at least 50 women to obtain personal data, including explicit photographs, announced acting U.S. Attorney Robert O. Posey and FBI Special Agent in Charge Roger C. Stanton.
In a one-count information filed in U.S. District Court, the U.S. Attorney’s Office charges KEVIN M. MALDONADO, 35, now living in North Carolina, with intentionally accessing the Gmail account of K.M., and the documents and images therein, without her permission in order to invade her privacy. Maldonado has agreed to plead guilty to the charge. Prosecutors filed a plea agreement, under seal, in conjunction with the charging document.
The information charges that Maldonado was able to get into the accounts of K.M. and the other women by obtaining their logins and passwords through a “phishing” attack, or by using open-source information or information obtained from the victims to determine their login and password information, or to answer security questions necessary to reset their login and password information. Maldonado knew some, but not all of the women victimized, according to the charges.
“Predators use the internet to target innocent victims,” Posey said. “We continue to work with our law enforcement partners to track and prosecute online criminals, but anyone who has an e-mail or other online account should protect themselves by protecting their login and password information. Don’t share it with friends or acquaintances or respond to unsolicited requests for that, or other personal information.”
“This case is a good reminder for all of us to maintain good computer security practices,” Stanton said. “Always be cautious of unsolicited telephone calls, e-mails and text messages, especially those asking you to supply account information. If you feel you have been a victim of a computer crime, please report it to the FBI’s Internet Crime Complaint center, www.IC3.gov.”
Maldonado phished for some of the victims’ login and password information by creating fictitious e-mail addresses and posing as an administrator for an e-mail provider, according to the information. Using the fictitious e-mail addresses, he sent the victims e-mails telling them their accounts may have been compromised and requesting their passwords.
Once the defendant accessed the victims’ accounts, he downloaded their data, including personal identifying information and personal photographs and videos, including images of the victims nude, partially nude, or engaged in sexual activity, according to the information.
In at least one instance, Maldonado responded to an e-mail from a victim’s contact, posing as the victim, and requested explicit photographs, according to the information. Maldonado organized and catalogued, by victim, the information he obtained through unauthorized computer access and stored the information on an external hard drive, the information charges.
The maximum penalty for unauthorized computer access in furtherance of an invasion of privacy is five years in prison and a $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney Erica Barnes is prosecuting.
###
Former Inmate at FCI-Berlin Pleads Guilty to Drug PossessionRead the Press Release
CONCORD, N.H. – United States Attorney, Emily Gray Rice, announced today that Jason Ponder, 36, an inmate who had been at the Federal Correctional Institution in Berlin, New Hampshire, pleaded guilty today to possessing contraband in the prison. Ponder possessed a quantity of the synthetic cannabinoid known as AB-Fubinaca, a controlled substance. Ponder was transferred to another federal prison after the incident.
On March 12, 2016, Ponder was visited by his girlfriend and a minor child. While the three were in the prison’s Visitation Room, the girlfriend passed three small white packages to Ponder. The correctional staff monitoring the visitation room saw the activity and it was captured on the prison’s security cameras. Ponder’s visit was immediately terminated and the girlfriend surrendered two packages of material to prison officials. Laboratory analysis of the material confirmed it was a AB-Fubinaca.
Synthetic cannabinoids are green leafy materials that have been sprayed with chemicals. These products (commonly referred to as “spice” or “K2”) are often marketed as incense or potpourri. Although the products are often sold in packages labeled as “not for human consumption,” the products are smoked in order to obtain a high. The chemicals that are sprayed on the products to produce the high are often illegal controlled substances or analogues of illegal controlled substances. The ingestion of these types of illegal products has caused some users to experience a variety of medical side effects and has led to numerous hospitalizations.
A sentencing hearing has been scheduled for May 8, 2017 at 2:00 p.m. Ponder has agreed to serve an eight-month sentence that will be begin after he completes his current sentence.
The case was investigated by the Federal Bureau of Prisons and was prosecuted by AUSA Don Feith.
###
Former Fort Leonard Wood Man Pleads Guilty to Sexually Abusing a ChildRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Brattleboro, Vt., man pleaded guilty in federal court today to aggravated sexual abuse of a 6-year-old child at Fort Leonard Wood, Mo.
Paul Kickery, Sr., 67, of Brattleboro, formerly of Fort Leonard Wood, pleaded guilty before U.S. District Judge M. Douglas Harpool to aggravated sexual abuse of a child.
According to court documents, the victim’s father contacted the Brattleboro, Vt., Police Department, to report that his daughter had been sexually assaulted by Kickery over the course of approximately a year. During the time of the sexual assaults, between July 1, 2013, and July 31, 2014, both Kickery and the then-6-year-old victim were residing in the same residence at the U.S. Army Military Base at Fort Leonard Wood. The child victim disclosed the abuse to a family member about a year later.
Under federal statutes, Kickery is subject to a mandatory minimum sentence of 30 years, up to a life term of imprisonment in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI and the Brattleboro, Vt., Police Department.
Former Davenport Man Sentenced to Prison for ArsonRead the Press Release
DAVENPORT, IA – On January 26, 2017, Gramann Richard Barnes, 44, formerly of Davenport, Iowa, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 84 months in prison after pleading guilty to arson, announced United States Attorney Kevin E. VanderSchel. Barnes was ordered to serve three years of supervised release following his prison term, and pay $100 to the Crime Victims’ Fund.
On March 15, 2016, the Davenport Fire and Police Departments were dispatched to a duplex on Locust Street in Davenport. A victim reported earlier in the day, Barnes had assaulted the victim, injured a child, and caused the victim and child to flee the residence. The victim called 911 from a friend’s residence, and later returned to the residence to discover a strong gas odor and heat coming from the kitchen. When the victim entered the kitchen, the oven was glowing, the gas stove burners were on, and all the knobs were removed; inside the oven was a roll of burning paper towels.
The victim located the knobs and turned off the stove and oven. Additionally, the victim observed the inside of the apartment had been trashed with broken dishes, broken household items, and glass shattered throughout the residence. The victim also later discovered a number of jewelry items were missing. The victim left the residence and again called 911. The Davenport Fire and Police Departments arrived and cleared the apartment.
A fire department investigator found a makeshift wick consisting of a paper towel rolled tightly and placed down inside the oven, where the flame for the gas burner was located. Investigators concluded the knobs on the stove were removed and combustible materials consisting of paper towels were intentionally placed in the oven for the purpose of causing ignition, which would have likely resulted in a fire or explosion. The investigation also determined at the time the stove and oven were turned on, two upstairs neighbors were home, heard an argument, the sound of breaking dishes, and detected a gas odor.
When Barnes left the scene at the apartment, he stole a pick-up truck belonging to the victim’s father and fled to Texas. Barnes was arrested in Texas on April 5, 2016. After returning for a court appearance in Iowa, Barnes admitted he had rigged the apartment to explode.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Davenport Fire Department, and the Davenport Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
-END-
Learn more about this release by contacting Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected]
Fmr. Providence Plan Finance Director to Plead Guilty to FraudRead the Press Release
PROVIDENCE – According to signed documents filed in U.S. District Court in Providence, Charles F. Denno, 66, of East Providence, a former finance director for the Providence Plan, has agreed to plead guilty to devising and executing a scheme in which he fraudulently converted more than $500,000 of Providence Plan funds for his own use.
Providence Plan is a non-profit educational entity which receives federal, state and private grant funds, including funds from the United States Department of Education and the Bloomberg Family Foundation. These grant funds are to be used to support educational and other programs for adults and children in Rhode Island. Annually, the federal grant funds awarded to the Providence Plan totaled in excess of four million dollars.
United States Attorney Peter F. Neronha; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; Brian Hickey, Special Agent in Charge of the U.S. Department of Education Office of Inspector General; and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division announced the filing today of an Information charging Denno with wire fraud.
United States Attorney Peter F. Neronha commented, “The Providence Plan receives a tremendous amount of federal, state and private funds each year for a laudable purpose: to provide educational and other programs to children and adults who would otherwise not have access to them. Every dollar the defendant stole – and he stole an outlandish amount – could have served someone who really needed it. It is precisely this type of conduct that gives rise to unwarranted public cynicism regarding such worthy programs. I want to thank the Providence Plan for their assistance and cooperation in this matter, once the defendant’s criminal conduct was discovered.”
According to court documents, from 2012 through July 2016, Denno used his authority to cause the U.S. Department of Education and the Bloomberg Family foundation to deposit funds into Providence Plan bank accounts and fraudulently converted those funds to his own personal use. The total amount of funds fraudulently converted from the Providence Plan to Denno’s personal use was more than $500,000.
In addition, according to court documents, Denno fraudulently prepared and issued Providence Plan checks made payable to CMG Enterprises, an entity he owned. The payments issued to CMG and deposited into a CMG bank account were not authorized and contained a forgery of the authorized check signing official at the Providence Plan. Denno subsequently made multiple withdrawals from the CMG bank account in various forms, including credit card payments, check payments and ATM cash withdrawals at Twin River Casino.
An information is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Wire fraud is punishable by statutory penalties of up to 20 years imprisonment; 3 years supervised; and a fine of up to $250,000.
The matter, being prosecuted by Assistant U.S. Attorney John P. McAdams, was investigated by the Rhode Island State Police Gaming Enforcement Unit, the U.S. Department of Education Office of Inspector General and the FBI.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Federal Jury Finds Roswell Felon Guilty of Illegally Possessing Firearms and AmmunitionRead the Press Release
ALBUQUERQUE – A federal jury sitting in Las Cruces, N.M., returned a verdict yesterday evening finding Michael Dalton, 34, of Roswell, N.M., guilty of unlawfully possessing firearms and ammunition after a three-day trial. The verdict was announced by U.S. Attorney Damon P. Martinez, 5th Judicial District Attorney Dianna Luce, Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Phil Smith of the Roswell Police Department (RPD).
Dalton, who has seven prior felony convictions, is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Dalton was arrested on a federal criminal complaint in June 2016, after he was transferred to federal custody from state custody where he was detained on related state charges. The state charges subsequently were dismissed in favor of federal prosecution.
The complaint charged Dalton with illegally possessing firearms and ammunition on Aug. 28, 2015, in Chaves County, N.M. Dalton was indicted on the same charge on June 30, 2016. The indictment was superseded on Oct. 25, 2016, to add a second offense charging Dalton with being a drug addict unlawfully in possession of firearms and ammunition on Aug. 28, 2015, in Chaves County. According to court documents, Dalton was prohibited from possessing firearms or ammunition because he had prior felony convictions for burglary, breaking and entering, forgery, aggravated fleeing from a law enforcement officer, possessing burglary tools, tampering with evidence, larceny, and possession of a controlled substance.
Dalton’s trial on the two-count superseding indictment began Jan. 23, 2017 and concluded yesterday evening when the jury returned a guilty verdict on both counts. The evidence at trial established that on Aug. 28, 2015, officers of the Roswell Police Department responded to Dalton’s residence after receiving a call from Dalton’s neighbor. The neighbor reported hearing Dalton threaten to shoot his girlfriend in the head during a fight between the couple that occurred outside Dalton’s residence. The neighbor also reported witnessing Dalton attempt to run over his girlfriend with his car before going into his residence with his three-year-old child. The neighbor then heard gunshots coming from Dalton’s residence.
Dalton barricaded himself in his residence, requiring a SWAT team to be dispatched to coax Dalton out of the residence. After an hour-long standoff, came out of the residence and he was identified as a convicted felon, leading the officers to obtain a search warrant for his residence. While executing the search warrant, the officers seized two rifles, a handgun and approximately 240 rounds of ammunition from ’s residence.
The evidence at trial also established that in addition to being a convicted felon, Dalton was a methamphetamine addict.
The jury deliberated approximately two hours before returning a guilty verdict.
Dalton has been in federal custody since his arrest in June 2016, and will remain detained pending a sentencing hearing which has yet to be scheduled. At sentencing, Dalton faces a statutory maximum penalty of ten years in prison on each of the two offenses.
This case was investigated by the Las Cruces office of the ATF and the Roswell Police Department. Assistant U.S. Attorneys Alexander B. Shapiro and Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case.
Fairfield Man to Be Arraigned Today for Tax Refund Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Brandon Anderson-Lacy, 29, of Fairfield, is scheduled to be arraigned today for a tax refund fraud scheme, U.S. Attorney Phillip A. Talbert announced.
On January 12, 2017, a federal grand jury returned a nine-count indictment charging Anderson‑Lacy with conspiring to submit false claims for tax refunds to the Internal Revenue Service.
According to court documents, from February 2011 through March 2012, Anderson-Lacy and others participated in a conspiracy to submit false tax returns to the IRS by obtaining personal identifying information of others, and then submitting returns seeking refunds to which the people listed on the returns were not entitled. To pursue the refunds, false statements were placed on the tax returns regarding income, withholding from income, dependent care, and education expenses, among other things. In addition to the conspiracy charge, Anderson-Lacy is charged with making false claims in connection with eight returns filed in January 2012, each of which falsely listed $18,909 in wages and sought thousands of dollars in refunds. More than $319,000 in refunds were claimed in connection with the conspiracy.
This case is the product of an investigation by the IRS Criminal Investigation with the assistance from the Vacaville Police Department. Assistant U.S. Attorney Christopher S. Hales is prosecuting the case.
If convicted of conspiracy to submit false claims, Anderson-Lacy faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. If convicted on the false claims counts, Anderson-Lacy faces a maximum statutory penalty of five years in prison and a $250,000 fine for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Esteban Santiago Ruiz Indicted on Federal Charges in Connection with Shooting at Fort Lauderdale-Hollywood International AirportRead the Press Release
A federal grand jury sitting in Broward County returned a twenty-two count indictment against Esteban Santiago Ruiz (Santiago) in connection with the mass-shooting at Fort Lauderdale-Hollywood International Airport on January 6, 2017. Santiago’s arraignment on the charges has been scheduled for Monday, January 30, 2017 at 10:00 a.m., before United States Magistrate Judge Barry L. Seltzer in Fort Lauderdale, Florida.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO) made the announcement.
Santiago is charged in a federal indictment with eleven counts of performing an act of violence against a person at an airport serving international civil aviation that caused death or serious bodily injury, in violation of Title 18, United States Code, Section 37(a)(1); six counts of use and discharge of a firearm during and in relation to a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A); and five counts of causing the death of a person through the use of a firearm in the course of a violation of Title 18, United States Code, Section 924(c), in violation of Title 18, United States Code, Section 924(j). The statutory charges authorize a maximum penalty, upon conviction, of death or imprisonment for life or any term of years.
According to the criminal complaint previously filed in court, shortly before 1 p.m. on January 6, 2017, Santiago carried out an armed attack on newly-arrived passengers retrieving their luggage in the Terminal 2 baggage claim area of the Fort Lauderdale-Hollywood International Airport in Fort Lauderdale, Florida. Santiago pulled out a handgun and started shooting at numerous victims, aiming at the victims’ heads and bodies until he was out of ammunition. Santiago killed five people and wounded six more. Moments later, Santiago was confronted by a BSO deputy. He dropped his handgun on the ground and was arrested by BSO deputies.
The case is being prosecuted by Assistants United States Attorney Ricardo A. Del Toro and Lawrence LaVecchio, with assistance from Department of Justice Trial Attorney Larry Schneider.
An indictment is a formal charging document notifying the defendant of the criminal charges. All persons charged in an indictment are presumed innocent until proven guilty in a court of law. Court documents and information related to this case 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.
Energy Scientest Settles Allegations That He Improperly Double-Billed Government for His TimeRead the Press Release
DENVER – Dr. Miguel A. Contreras, a senior scientist at the National Renewable Energy Lab located in Golden, Colorado, has paid the United States $80,000 to settle allegations that he violated the False Claims Act by knowingly double-billing his work-time and submitting false timesheets and false travel reimbursement forms to his employer while he privately consulted for three energy companies.
The National Renewable Energy Lab (“NREL”) is a Department of Energy-owned facility and is managed and operated by The Alliance for Sustainable Energy under contract to the Department of Energy.
According to the Government, Dr. Contreras improperly used his NREL work-time, the work-time of other NREL employees, NREL-owned equipment, and NREL-owned resources for his own personal financial gain while consulting with three private energy companies. The United States found that Dr. Contreras knowingly submitted false timesheets and travel reimbursement claims to fraudulently “double-bill” his time without seeking the proper approvals from his NREL supervisors. This conduct occurred on numerous occasions during 2008 through 2009.
In the settlement agreement, Dr. Contreras acknowledges that had this matter gone to trial, the United States would be able to prove these facts by a preponderance of the evidence.
The government further asserted that Dr. Contreras also misled his supervisors and investigators about the nature of his private consulting work. As a result of these acts, the United States claimed that Dr. Contreras committed up to thirty-seven separate violations of the False Claims Act.
This matter was investigated by the Department of Energy’s Office of the Inspector General, in conjunction with the United States Attorney’s Office, District of Colorado.
Assistant U.S. Attorneys Jacob Licht-Steenfat and Chris Larson handled this matter on behalf of the government.
Eleven Defendants Plead Guilty to Drug Trafficking and Money Laundering ConspiracyRead the Press Release
St. Thomas, USVI – On January 26, 2017, five defendants pleaded guilty before District Court Judge Curtis V. Gomez to drug trafficking and money laundering conspiracy, United States Attorney Ronald W. Sharpe announced. Dellana Magner, 23, and Kinia Blyden, 23, both of St. Thomas, pleaded guilty to possession with intent to distribute cocaine. Rasheem Morton, 36, of St. Thomas; Monique David, 40, of St. Thomas, and Te’Nae George, 23, of St. Thomas, pleaded guilty to money laundering conspiracy.
The following individuals also pleaded guilty to cocaine possession on January 23, 2017, before Judge Gomez: Nilda Morton, 32, of St. Thomas; Vanier Murraine, 34, a native of St. Thomas and resident of Detroit; Christopher Butler, 30, and Drue Williams, III, 35, of Twinsburgh, Ohio; and Taheeda George, 37, and Roniqua Hart, 24, of St. Thomas. All defendants were remanded to the custody of the United States Marshals pending sentencing on June 1, 2017.
According to the plea agreements filed with the court, from October 2015 through July 2016, Nilda Morton, the leader of the drug trafficking organization, supplied cocaine to Vanier Murraine utilizing Delta Airlines employees Taheeda George and Roniqua Hart. The Delta employees then used their security clearances at the Cyril E. King Airport to smuggle cocaine to Dellana Magner, Kanya Tirado, Kinia Blyden, and Jerrisha Rawlins after they had completed their pre-boarding security clearances, but before they boarded their commercial flights to the U.S. mainland.
On three occasions between June and July 2016, airport security surveillance footage captured the defendants in the public restroom removing vacuum-sealed packages of cocaine from their bodies and placing them in the couriers’ carry-on bags before they boarded their flights. After the cocaine was sold stateside, Nilda Morton arranged for her brother, Rasheem Morton, Dellana Magner, Te’Nae George, Kinia Blyden, Jerrisha Rawlins, Roniqua Hart and Monique David to transport the cash proceeds back to St. Thomas, where she took possession of the money. The investigation culminated on July 1, 2016, with the arrest of Dellana Magner after she smuggled three kilograms of cocaine onboard an American Airlines flight destined for Miami.
This case is the result of a joint investigation by the Federal Bureau of Investigations in Pittsburgh, New York, Cleveland, Detroit, and St. Thomas. It was prosecuted by Assistant United States Attorney Delia L. Smith.
District of Montana Collects $4.5 Million in Civil and Criminal Actions in FY 2016Read the Press Release
HELENA - U.S. Attorney Michael W. Cotter announced today that the Montana United States Attorney’s Office collected $4.5 million in Fiscal Year (FY) 2016 related to criminal and civil actions. In some cases, the U.S. Attorney’s Office worked in conjunction with litigating components of the U.S. Department of Justice.
Attorney General Loretta E. Lynch announced on December 14, 2016 that the Justice Department collected $15.3 billion in civil and criminal actions in the fiscal year ending September 30, 2016. The $15.3 billion in collections in FY 2016 represents more than five times the approximately $3 billion appropriated budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period. Collections in Montana totaled $55.3 million for the past five fiscal years combined, more than twice the operating budget for Montana’s U.S. Attorney’s Offices for those years.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
“The collections program illustrates an important aspect of the USAO’s public service mandate that is often overlooked,” said U.S. Attorney Michael W. Cotter. “It is important to all of us in the U.S. Attorney’s Office that we maintain a positive balance sheet. This office, like the Department of Justice overall, pays for itself. Considering the many things we do, from defending torts and environmental lawsuits on the one hand, to prosecuting violent crime on our six American Indian reservations of the other hand, the American taxpayers are getting value for their money.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid directly to the victim, criminal fines and felony assessments are paid to the departments Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
Occasionally, assets from criminals are forfeited by court action. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes. Forfeited assets include currency or bank accounts, real property and cars purchased with illegal proceeds or used to facilitate crimes, guns held by convicted felons, and computers used for child pornography.
Those who regularly follow the news are aware of the function of the United States Attorney’s Office (USAO) regarding federal criminal prosecution. Equally important, but perhaps not as well known, is the mission, function and success of the Montana USAO in recovering money for the benefit of victims of crime and the U.S. Treasury. This critical mission is accomplished in large part by the Financial Litigation Unit (FLU). The FLU collects criminal restitution, fines, and penalties ordered to be paid to federal agencies when federal programs are defrauded. In addition the FLU Unit helps federal prosecutors identify and forfeit assets that represent the proceeds of or that were used to facilitate federal crimes.
Cuban National who had Attempted to Flee the Country Sentenced for Conspiring to Steal Credit Card Numbers, Aggravated Identity TheftRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JULIET ESTRADA PEREZ, 24, a Cuban national, was sentenced today after previously pleading guilty to conspiracy to commit access device fraud and aggravated identity theft. ESTRADA PEREZ had resided in Florida before traveling to the New Orleans area to steal credit card information.
U.S. District Judge Nannette Jolivette Brown sentenced ESTRADA PEREZ to 36 months imprisonment to be followed by 3 years of supervised release. As part of sentencing, ESTRADA PEREZ was ordered to pay restitution of $7,873.97 jointly and severally with her codefendants and a $100 special assessment.
According to court records, in April 2016, while on bond in this case, ESTRADA PEREZ and a codefendant were arrested in the Southern District of Florida on new state charges of committing credit card fraud. She and two other codefendants were later found in the Florida Strait between Florida and Cuba by the United States Coast Guard and subsequently arrested. In total, six defendants have pleaded guilty in the case to conspiring among themselves and with others to with possessing fifteen or more unauthorized and counterfeit access devices, as well as producing, possessing, and trafficking device-making equipment. Additionally, court records indicate the defendants traveled from Florida in late July, 2015 and agreed to place card skimming devices on gas pumps in the New Orleans area. They also admitted to, among other things, possessing a card encoding machine, a card embossing machine, and a laptop computer containing stolen credit card information.
U.S. Attorney Polite commended the work of Jefferson Parish Sheriff’s Office, the United States Secret Service, and Homeland Security Investigations, who investigated the case. Assistant Attorney Hayden Brockett was in charge of the prosecution.
Convicted Felon Sentenced to Prison After Taking Law Enforcement Official’s GunRead the Press Release
LAREDO, Texas – A Laredo man has been sentenced to federal prison after he took a firearm from a Webb County Sheriff’s officer inside her home in the course of a domestic dispute, announced U.S. Attorney Kenneth Magidson. Jose Genaro Contreras pleaded guilty Oct. 6, 2016, admitting to being a felon in possession of a firearm.
Today, U.S. District Judge Diana Saldana handed Contreras a 60-month sentence. He was further ordered to serve a three-year-term of supervised release following completion of the prison term. In handing down the sentence, Judge Saldana noted the defendant’s “horrible record” and described his conduct as “egregious.”
On May 29, 2016, Contreras became angry at his girlfriend, who was then a deputy with the Webb County Sheriff’s Office. Contreras pushed the woman to the floor, took the .40 caliber gun out of her purse and, according to her written statement, took her into a back restroom and locked the door. Two children were also inside the home.
Authorities later responded to a 911 call from the woman’s sister who stated that Contreras had a gun and she was worried he was going to kill her sister. When police arrived and questioned Contreras, he denied that any firearms were inside the residence. At the time Contreras possessed the firearm, he was a convicted felon who was prohibited from possessing any firearms.
Contreras will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Laredo Police Department. Assistant U.S. Attorney Chris Howard is prosecuting the case.
Columbus, Ohio woman sentenced for her role in a smash and grab schemeRead the Press Release
WHEELING, WEST VIRGINIA – Jolisha McDonald, 25, of Columbus, Ohio, was sentenced today to 30 months incarceration for transporting stolen goods across state lines. Acting United States Attorney Betsy Steinfeld Jividen made the announcement.
McDonald conspired to steal smart phones, tablets, head phones, game stations, and computers from Walmart, Target, and Meijer stores in eight different states, including West Virginia and Ohio. The value of the stolen goods are estimated to be in excess of $500,000. She pled guilty to one count of “Conspiracy to Transport Stolen Goods in Interstate Commerce” in November 2016.
Assistant U.S. Attorney Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Columbus Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Columbia Man Sentenced to 360 months for Aggravated Sexual Assault on a ChildRead the Press Release
Contact Person: J.D. Rowell (803) 929-3036
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Ricardo Favela (age 44) was sentenced yesterday in federal court in Columbia, South Carolina, for two counts of aggravated sexual abuse on a child and one count of abusive sexual contact with a child. Senior United States District Judge Cameron McGowan Currie of Columbia sentenced Favela to 360 months (30 years) incarceration. The defendant was also sentenced to a term of supervised release, sex offender rehabilitation, and will be required to register with the South Carolina Sex Offender register upon his release.
Evidence presented at the trial established that beginning sometime in early 2015 through April of 2016, Favela was the primary care taker of the child. Trial testimony included a videotaped confession conducted by the FBI, wherein Favela admitted to allowing the child to perform sexual acts on himself multiple times from early 2015 through 2016. Favela was convicted in October of 2016 on three of the four counts contained in his indictment.
United States Attorney Beth Drake noted that the US Attorney’s Office prosecutes sexual assault cases when they occur in areas of federal jurisdiction (military bases, national parks, etc.), and that the sexual assault cases receive the full focus of the capable investigators and prosecutors that work them. “This sentence reflects the repugnant nature of the offense and serves as a significant deterrent to all sex offenders.”
The case was investigated by agents of the Federal Bureau of Investigation and Fort Jackson Criminal Investigation Division. Assistant United States Attorneys JD Rowell and Jay Richardson of the Columbia office prosecuted the case.
#####
Columbia Man Pleads Guilty to Hoax Bomb ThreatRead the Press Release
Contact Person: Stacey D. Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Karry Max Taylor, III, age 21, of Columbia plead guilty in federal court yesterday to making a hoax bomb threat, in violation of Title 18, United States Code, Section 1038(a). Senior United States District Judge Cameron McGowan Currie of Columbia accepted the plea and will impose sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented in court established that on January 4, 2016, three individuals, two in South Carolina and one in New York, each received a text message from an unknown South Carolina telephone number advising them that someone had placed a bomb in the parking lot of the Veterans Affairs Medical Center on Garners Ferry Road. One of the texts stated, “Hey Montana, this is Sosa. Omar said he put a bomb in the parking lot or something…in the VA hospital on Garners Ferry Road. I am scared and I don’t know what to do.” The three individuals each notified law enforcement authorities, who were able to discern that the texts were referring to the Veterans Affairs Medical Center in Columbia. As a result, the Columbia Police Department, the Columbia Fire Department, and the Veterans Affairs Medical Center Police Department responded and placed the Veterans Affairs Medical Center in lock-down and swept the parking area for explosives. Law enforcement was on the scene for three hours and ultimately determined that the texts were a hoax as no explosive was located. Thereafter, the Federal Bureau of Investigation, through investigative means, was able to link the texts back to a cellular telephone and email account belonging to Taylor. Agents approached Taylor, a volunteer with the Columbia Fire Department, and he admitted to sending the texts to random numbers in an effort to draw other fire engines to the Veterans Affairs Medical Center in hopes that his fire station would then be called to respond to any other calls that occurred during that time frame.
Taylor faces a statutory maximum of five years imprisonment and/or a fine of $250,000, in addition to three years of supervised release. The statute also requires that Taylor reimburse the state and local agencies who responded to the incident on January 4, 2016. The case was investigated by the FBI Joint Terrorism Task Force in Columbia. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
#####
Colombian National Extradited to North Dakota from PanamaRead the Press Release
FARGO - US Attorney Christopher C. Myers, along with US Attorney Billy J. Williams, District of Oregon, announced on January 26, 2017, that Daniel Vivas Ceron, 36, of Colombia, was extradited to the United States after Panamanian authorities authorized the extradition of Vivas Ceron. Vivas Ceron arrived in North Dakota on January 25, 2017, and is scheduled to appear before Magistrate Judge Alice Senechal on January 26, 2017 at 3:15pm in Fargo, N.D.
Vivas Ceron was taken into custody in Panama City, Panama, on July 17, 2015, pursuant to the arrest warrant in connection with an Indictment out of the District of North Dakota charging him with: (1) Conspiracy to Distribute Controlled Substances and Controlled Substance Analogues Resulting in Serious Bodily Injury and Death; (2) Conspiracy to Import Controlled Substances and Controlled Substance Analogues into the United States Resulting in Serious Bodily Injury and Death; (3) Aiding and Abetting the Distribution of a Controlled Substance Resulting in Death; (4) Money Laundering Conspiracy, and (5) Continuing Criminal Enterprise. Since Vivas Ceron’s arrest in July of 2015, the United States Attorney’s Office, working with the Office of International Affairs of the Department of Justice, has been working diligently to extradite Vivas Ceron.
The arrest comes as part of “Operation Denial,” an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation into the international trafficking of fentanyl and other lethal drugs, and was significantly aided by the national and international coordination led by the multi-agency Special Operations Division (S.O.D.) near Washington D.C. as part of
“Operation Deadly Merchant.” The investigation started in North Dakota on January 3, 2015,
with the overdose death in Grand Forks of 18-year-old Bailey Henke.
Additional defendants charged in Federal court in this investigation include:
District of North Dakota
-
Jameson Robert Sele, 20, Grand Forks, ND – Pled guilty to Conspiracy to Distribute Controlled Substances and was sentenced on 7/27/15 to 36 months’ in federal prison.
-
Ryan Jon Jensen, 20, Grand Forks, ND – Pled guilty on 2/27/15 to: Conspiracy to Distribute Controlled Substances Resulting in Serious Bodily Injury and Death; two Counts of Distribution of a Controlled Substance Resulting in Death; and Distribution of a Controlled Substance Resulting in Serious Bodily Injury and Money Laundering Conspiracy. Sentenced on 2/2/2016 to 20 years in federal prison.
-
David Todd Noye Jr., 18, Grand Forks, ND – Pled guilty on 5/4/15 to Conspiracy to Distribute Controlled Substances. Sentenced on 1/25/2016 to serve 3 years and 3 months in federal prison.
-
Joshua Tyler Fulp, 20, Grand Forks, ND – Pled guilty on 6/23/15 to Conspiracy to Distribute Controlled Substances Resulting in Serious Bodily Injury and Death and was sentenced to 12 years in federal prison.
-
Kain Daniel Schwandt, 19, Grand Forks, ND - Pled guilty on 7/24/15 to Conspiracy to Distribute Controlled Substances. Sentenced on 1/25/2016 to serve 3 years and 6 months in federal prison.
-
Brandon Corde Hubbard, 40, Portland, OR - Indicted on charges of: Conspiracy to Distribute Controlled Substances Resulting in Serious Bodily Injury and Death; Distribution of a Controlled Substance Resulting in Death; and Money Laundering Conspiracy. Sentenced on 07/13/2016 to serve life in federal prison.
-
Ronnie Lee Helms, 30, Acworth, GA - Indicted on charges of: Conspiracy to Possess with Intent to Distribute and Distribution of a Controlled Substance and Controlled Substance Analogues Resulting in Serious Bodily Injury and Death. Jury trial is set for 3/7/2017.
-
Braden James Foley, 28, Olympia, WA - Pled guilty on 8/11/2016 to Conspiracy to Possess with Intent to Distribute and Distribution of a Controlled Substance and was sentenced to 30 months in in federal prison on 11/21/2016
District of Oregon
-
Steven Fairbanks Locke – Charges with: Conspiracy to Distribute and Possess with Intent to Distribute a Controlled Substance. Trial pending.
-
Channing Lacey – Charged with: Conspiracy to Distribute a Controlled Substance Resulting in Serious Bodily Injury; Distribution of a Controlled Substance Resulting in Death; Possession of a Controlled Substance with Intent to Distribute. Trial pending.
-
Carissa Marie Laprall – Charged with: three Counts of Distribution of a Controlled Substance Resulting in Serious Bodily Injury and Possession of a Controlled Substance with the Intent to Distribute. Trial pending.
This case is being investigated by the Department of Homeland Security - Homeland Security Investigations, Drug Enforcement Administration, United States Postal Inspection Service, Grand Forks Narcotics Task Force, Royal Canadian Mounted Police, Portland Oregon Police Bureau – Drugs and Vice Division, Portland HIDTA Interdiction Task Force, Oregon State Police, and the Grand Forks Police Department.
United States Attorney Christopher C. Myers is prosecuting the cases in North Dakota; Assistant U.S. Attorney Scott Kerin is prosecuting the cases in the District of Oregon and will be assisting as a Special Assistant U.S Attorney (SAUSA) in North Dakota as the investigation moves forward.
The Indictment and Order of Extradition in this case are not evidence of guilt. The defendant is presumed innocent unless or until proven guilty beyond a reasonable doubt at trial.
-
Businessman Pleads Guilty to Federal Charge for Conspiring to Take and Sell State Department VehiclesRead the Press Release
WASHINGTON – The manager of an auto restoration and collision center pled guilty today to charges that he conspired with others to sell vehicles that were brought to the business by the U.S. Department of State, announced U.S. Attorney Channing D. Phillips, Steve A. Linick, Inspector General for the U.S. Department of State, and Timothy R. Slater, Special Agent in Charge of the Criminal Division of the FBI’s Washington Field Office.
James Ratcliffe, 67, of Fairfax Station, Va., pled guilty in the U.S. District Court for the District of Columbia to a charge of conspiracy to commit theft of government property and wire fraud. The charge carries a statutory maximum of five years in prison and potential financial penalties. Under federal sentencing guidelines, he faces a potential range of 18 to 24 months of incarceration and a fine of $4,000 to $40,000. The plea agreement calls for Ratcliffe to pay $416,020 in restitution and an equal amount in a forfeiture money judgment.
The Honorable Amit P. Mehta scheduled sentencing for May 3, 2017.
According to a statement of offense, signed by the defendant as well as the government, Ratcliffe is the manager of the Car Collision Center, located in Springfield, Va. He and the owner of the Collision Center, who is identified in court documents as “Person A,” also have a license to sell automobiles in Virginia under the name of Collector’s Auto Restoration.
Through the Car Collision Center, Ratcliffe and others performed legitimate work on vehicles for government agencies, including the U.S. Department of State. Vehicles that came to the Collision Center from the State Department were delivered by State Department employees. The Collision Center provided estimates for the work requested, and, if approved, employees of the Collision Center prepared work tickets, performed the work, and billed the State Department.
Apart from legitimate work for the State Department, Ratcliffe admitted in the statement of offense that he conspired with a State Department employee, identified in court documents as “Person B,” who worked in the Defensive Equipment and Armored Vehicle Division, to misappropriate and sell vehicles and other State Department property. This employee was responsible for the acquisition, repair, and maintenance of armored vehicles. “Person B” also was involved in record-keeping with respect to the State Department’s armored vehicles.
According to the statement of offense, on at least two occasions in 2011 and 2012, “Person B” caused truckloads of State Department tires and wheels to be delivered to the Collision Center. “Person B” told Ratcliffe that he could sell them and keep the proceeds. Ratcliffe kept the full proceeds of his sales, which amounted to at least $7,500.
Also, beginning in or before June 2011, and continuing through at least November 2013, “Person B” and Ratcliffe took a Hummer and 12 Chevrolet Suburbans from the State Department motor pool; these vehicles were unarmored. They agreed that Ratcliffe would sell the vehicles and split the proceeds with “Person B.” Ratcliffe typically sold the misappropriated vehicles for at or near market prices. The total sales price of the misappropriated vehicles was $408,520, according to the statement of offense. Ratcliffe and “Person A” kept the majority of these proceeds for their personal benefit and the remainder went to “Person B.” Additionally, in 2015, “Person B” provided Ratcliffe with two unarmored Suburbans that Ratcliffe kept at his place of business or home. The base price of these vehicles was $48,200 each, for a total of $96,400. The two vehicles were recovered during a law enforcement investigation of the criminal activities.
All told, the value of the property that Ratcliffe misappropriated through the schemes was at least $512,420.
In announcing the plea, U.S. Attorney Phillips, Inspector General Linick, and Special Agent in Charge Slater commended the work of those who are investigating the case from the U.S. Department of State, Office of the Inspector General, as well as the FBI’s Washington Field Office. They also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Andrea L. Hertzfeld, Special Assistant U.S. Attorney Vesna Harasic-Yaksic, and Paralegal Specialist Jessica Mundi. Finally, they commended the work of Assistant U.S. Attorney John P. Marston, who is prosecuting the matter.
Bridgeport Man Sentenced to Prison for Distributing Fentanyl-Laced Heroin to Overdose VictimsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ERICK DELGADO, 39, of Bridgeport, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 13 months of imprisonment, followed by three years of supervised release, for distributing fentanyl-laced heroin that led to overdoses in April 2016.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, in the morning of April 25, 2016, Bridgeport Police and medical personnel responded to a location on Washington Avenue on a report of a possible drug overdose. The overdose victim was revived with two doses of Narcan and was transported to the hospital. A friend of the victim, who was with the victim at the time and contacted medical professionals after the overdose, told investigators that he and the victim purchased heroin from an individual he knew as “Eric” in the area of Brooks Street and Ogden Street in Bridgeport. The victim subsequently identified DELGADO as the source of the heroin he used.
In the evening of April 25, 2016, Monroe Police and emergency medical personnel responded to a report of an unresponsive 48-year-old male at a residence in Monroe. The victim was pronounced dead at the scene. A subsequent interview with an acquaintance of the victim revealed that, on April 25, the victim and his acquaintance traveled to the area of Brooks Street and Ogden Street where the victim purchased heroin from DELGADO.
The Office of the Chief Medical Examiner subsequently determined the victim’s cause of death to be acute fentanyl intoxication.
On May 3, 2016, an individual working with law enforcement contacted DELGADO to arrange the purchase of heroin. When the individual and an undercover officer arrived in the area of Brooks Street and Ogden Street, they were met by DELGADO’s brother, Anoris Delgado, who subsequently provided them with 20 bags of heroin. The undercover officer purchased another 20 bags of heroin from Anoris Delgado on May 20.
DELGADO has been detained since his arrest on June 21, 2016. On October 27, 2016, he pleaded guilty to one count of distribution of heroin.
On October 25, 2016, Anoris Delgado pleaded guilty to the same charge. He awaits sentencing.
This matter was investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, and the Monroe and Bridgeport Police Departments. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Boise Man Sentenced to 20 Years for Sex Trafficking of a MinorRead the Press Release
BOISE – Michael Wayne Wade, 31, of Boise was sentenced today in United States District Court to 240 months in prison followed by 10 years of supervised release for sex trafficking of a minor, U.S. Attorney Wendy J. Olson announced. Wade pleaded guilty on August 16, 2016.
According to the plea agreement, agents with the Idaho Department of Probation and Parole arrested Wade for a felony probation violation in July of 2014. A Nokia Lumina cell phone was seized from Wade and examined by a detective with the Boise Police Department. The cell phone contained texts with a minor and images of the minor, including one that was sexually explicit. The detective conducted open-source internet searches on Backpage.com and discovered that the images of the minor on Wade’s phone had been posted in an ad for “escort services” in Boise in July and November of 2014. The postings were made using a Backpage.com account for another individual, J.K.
J.K. was arrested by the Boise Police Department in December of 2014, and admitted she worked as a prostitute in Boise, and that Wade was the “boss” who “pimped her.” She admitted Wade asked her to use the minor for a two-girl “date,” which she refused. She admitted posting the minor as an escort on Backpage.com, using the images sent to her by Wade. She further admitted that Wade spoke to her about taking the minor “under her wing,” assisting her in “escorting,” and ensuring that she was “working.” J.K. admitted that she took the minor on at least two “dates” where the minor engaged in commercial sex acts, and that she received money from the minor in exchange for posting the ad and transporting her.
The minor was interviewed and admitted that she participated in a prostitution enterprise with J.K. She stated she sent the images of herself to Wade for the purpose of being posted on Backpage.com as an escort. The minor stated that J.K. posted her images on Backpage.com, and drove her on at least two “calls” where she engaged in a commercial sex act when she was sixteen years old.
“This defendant callously victimized a minor,” said Olson. “This sentence demonstrates that such conduct will be punished severely, and that the law protects our children from those who seek to exploit and profit from them. This office and its law enforcement partners in Idaho are unwavering in our commitment to seek justice on behalf of vulnerable victims and to hold sex traffickers accountable.”
Further investigation by the Boise Police Department and the FBI revealed recorded phone calls and text messages from Wade to J.K. and the minor. The text messages revealed that Wade knew the minor was sixteen years old, that he told her she would be a “star by the time I’m done with you,” encouraged her to “hustle all day,” and told her that J.K. would teach her “the tricks of the trade” and “how to hustle.” Wade also told the minor that she had “mad potential,” could “turn tricks,” and that J.K. would “buy you a room” and “have you get to work this weekend.” Wade then told J.K. that the minor was “all open” and “down to work for the team.”
The case was investigated by the Boise Police Department, the FBI, and the Idaho Department of Probation and Parole, and was prosecuted with assistance from the Ada County Prosecutor’s Office. The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Birmingham Man Indicted on Counterfeiting and Firearms ChargesRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Birmingham man on counterfeiting and firearms charges, announced Acting U.S. Attorney Robert O. Posey and U.S. Secret Service Special Agent in Charge Michael Williams.
A three-count indictment filed in U.S. District Court charges HOLLIS NIKIA BULLARD, 22, with making counterfeit $100 bills, dealing in counterfeit $100 bills and possessing a Smith & Wesson Model 10 revolver as a convicted felon, all on Jan. 4.
According to the indictment, Bullard was convicted of a felony burglary offense in Jefferson County Circuit Court in August 2015, and of felony receipt of stolen property in February 2014.
Police arrested Bullard on the federal counterfeiting and firearm possession charges on Jan. 4 at his apartment on Center Point Parkway in Birmingham, where they found counterfeited $100 bills, according to a Jan. 5 arrest complaint filed in U.S. District Court. Secret Service agents recovered counterfeit bills totaling more than $15,000 in the course of the investigation, according to the complaint.
The maximum penalty for both making counterfeit U.S. currency and dealing in counterfeit currency is 20 years in prison and a $250,000 fine. The maximum penalty for being a convicted felon in possession of a firearm is 10 years in prison and a $250,000 fine.
The Secret Service and the Jefferson County Regional Fraud Task Force investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Berkeley County woman pleads guilty to heroin distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Danielle Ey, 29, of Hedgesville, West Virginia, admitted to assisting in heroin distribution in federal court in Martinsburg today, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Ey pled guilty to one count of “Aiding and Abetting Possession with the intent to Distribute Heroin.” She faces up to twenty years in prison and a fine up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Anna Z. Krasinski and Special Assistant U.S. Attorney Stephanie S. Taylor prosecuted the case on behalf of the government. The Federal Bureau of Investigation, along with Eastern Panhandle Drug and Violent Crime Task Force, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Belarus Native Involved in Credit Card Processing ‘Scareware’ Scheme Sentenced to 4 Years in PrisonRead the Press Release
A 37-year-old citizen of Belarus was sentenced today in U.S. District Court in Seattle to four years in prison for conspiracy to commit wire fraud, announced U.S. Attorney Annette L. Hayes. ALEXANDER MIHAILOVSKI was indicted in August 2012 for his role as a payment processor in a $71 million cybercrime scheme. He was arrested in Vienna, Austria in late 2015. MIHAILOVSKI was extradited to the U.S. to face charges a year ago. He pleaded guilty in August 2016. At the sentencing hearing U.S. District Judge Thomas S. Zilly said, “You provided an important part of the total scheme… by making it appear legitimate…. People who commit these crimes will be apprehended and will be punished.”
“Just like a bank robber needs a get-away driver, cyber fraudsters need people to turn their electronic scams into cash,” said U.S. Attorney Annette L. Hayes. “This defendant ran a credit card processing company that was essentially ripping off nearly $71 million dollars from unsuspecting computer users. Like so many others, he thought he would get away with his crimes. Instead, close cooperation with our worldwide law enforcement partners allowed us to track him down and get him back to the United States to face justice.”
According to records in the case, MIHAILOVSKI operated a credit card payment processing company called Mystique Enterprises, LTD, doing business as PSBILL, Smart Systems, and Failsafe Payments. MIHAILOVSKI and his company were part of an international cybercrime ring that netted $71 million by infecting victims’ computers with “scareware” and selling fraudulent antivirus software that was supposed to secure victims’ computers but was, in fact, useless.
The prosecution of MIHAILOVSKI is part of Operation Trident Tribunal, a coordinated enforcement action targeting international cybercrime rings that caused more than $71 million in total losses to more than one million computer users through the sale of fraudulent computer security software known as “scareware.” The scareware used in this scheme was malicious software that posed as legitimate computer security software. The scareware caused popup notices to appear on the victims’ computers with false warnings that the computers had been infected and prompted the victims to purchase fake anti-virus software with a credit card at a cost of up to $129. The scareware would often disable legitimate anti-virus software and lock-down other features of the computers, effectively preventing the victims from using their computers until they purchased the fake anti-virus software or reformatted their computers. An estimated 960,000 users were victimized by this scareware scheme, leading to $71 million in actual losses.
MIHAILOVSKI is the second foreign national prosecuted in this particular scareware scheme. In December 2012, Mikael Patrick Sallnert, 40, a citizen of Sweden, was also sentenced to four years in prison and was ordered to pay $650,000 in forfeiture. Sallnert also served as a credit card payment processor for the crime ring.
This case is being investigated by the FBI Seattle Division Cyber Task Force and other FBI entities. The case is being prosecuted by Assistant U.S. Attorneys Norman Barbosa and Francis Franze-Nakamura. Substantial assistance was provided by the Criminal Division’s Office of International Affairs and the Computer Crime and Intellectual Property Section.
Critical assistance in the investigation was provided by the Security Service of Ukraine, German Federal Criminal Police, Netherlands National High-Tech Crime Unit, London Metropolitan Police, Latvian State Police, Lithuanian Criminal Police Bureau, Swedish National Police Cyber Unit, French Police Judiciare, Royal Canadian Mounted Police, Romania’s Directorate for Combating Organized Crime, Cyprus National Police in cooperation with the Unit for Combating Money Laundering, the Danish National Police, and the Austrian Federal Ministry of Justice.
Bay Area Resident Pleads Guilty to Concealing Assets in A Bankruptcy ProceedingRead the Press Release
SAN JOSE – Steve McVay pleaded guilty to concealing assets in a bankruptcy proceeding announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The plea was accepted yesterday by the Honorable Lucy H. Koh, United States District Judge.
According to the plea agreement, McVay, 68, whose last known address was in Morgan Hill, Calif., admitted he filed a voluntary petition for bankruptcy in the United States Bankruptcy Court for the Northern District of California, on February 9, 2010, through which he sought relief for approximately $1.5 million in debts. McVay acknowledged that in connection with the petition, he signed documents under penalty of perjury that he knew contained false and fraudulent information. Further, McVay acknowledged he signed the documents with the intent to hide assets from his creditors, the United States Trustee, the court, and other persons charged with control or custody of the bankruptcy estate. Information about the false and fraudulent information in McVay’s bankruptcy filings is contained in the plea agreement. For example, as part of the agreement McVay admitted that prior to filing for bankruptcy, he had opened a bank account in his wife’s name, without either her knowledge or consent, and that he had been using the account to receive and transmit monies under his exclusive control; McVay further admitted he failed to disclose the account in his bankruptcy filings. Further, McVay admitted he knowingly concealed multiple additional bank accounts that he was required to disclose as part of his filings.
McVay was indicted on April 28, 2016, and charged with two counts of concealing assets in bankruptcy proceedings, in violation of 18 U.S.C. § 152(1), and one count of false testimony in bankruptcy proceedings, in violation of 18 U.S.C. § 152(2). Pursuant to his plea agreement, McVay pleaded guilty to one count of concealing assets in bankruptcy proceedings.
McVay is scheduled to appear before Judge Koh for sentencing on May 17, 2017. The maximum statutory penalty for a violation of 18 U.S.C. § 152(1) is five years in prison and $250,000 or twice the amount of gain or loss resulting from the scheme. In addition, a term of supervised release and restitution may be imposed. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Timothy J. Lucey is prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by the FBI.
Ambulance Company Owner Sentenced for Health Care FraudRead the Press Release
CINCINNATI – Terry Johnson, 43, of Hamilton Ohio, was sentenced in U.S. District Court to 24 months in prison for health care fraud and money laundering in a scheme to defraud Medicare and Medicaid.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Troy N. Stemen, Acting Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office, Lamont Pugh, Special Agent in Charge, Health and Human Services Office of Inspector General (HHS-OIG), and Ohio Attorney General Mike DeWine announced the plea sentence handed down today by U.S. District Judge Michael R. Barrett.
According to court documents, Johnson is the owner and operator of Community Angels Ambulance Service, LLC, which provided medical transportation to dialysis patients from at least 2007 through 2012. He also operated the ambulance company Starlite Transportation.
For approximately seven years, Johnson fraudulently billed Medicare and Medicaid for ambulance and ambulette transports. Approximately $1.1 million was fraudulently billed to Medicare for Community Angels. The loss to Medicaid from both companies totaled more than $354,000.
In addition, Johnson was ordered to file amended personal and corporate (Community Angels Ambulance) income tax returns with the IRS for the 2008-2011 income tax years.
U.S. Attorney Glassman commended the cooperative investigation by the IRS, HHS-OIG and the Ohio Attorney General’s Medicaid Fraud Control Unit, as well as Assistant United States Attorney Timothy Mangan, who is representing the United States in this case.
Alton Man Sentenced to 10 Years for Possession of Child PornographyRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that James Allen Ridder, 34, of Alton, Illinois, was sentenced in federal court today to ten years’ imprisonment, ten years’ supervised release, and a $100 special assessment, following his plea of guilty to possession of child pornography – that is, still images and video images of two minors, ages 15 and 17. The minor victims were children known to Ridder.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was investigated by the Madison County Sheriff’s Office, which has a detective assigned to the Federal Bureau of Investigations Metro East Cybercrime Task Force. The case was prosecuted by Assistant United States Attorneys Ali Summers and Stephen Clark.
###
Alleged Prison Escapee Charged with Attempted Bank RobberyRead the Press Release
BOSTON – A former Army Reservist who was previously charged with the theft of military weapons, and then later escaped while in federal custody, has now been charged with two counts of attempted bank robbery.
James W. Morales, 35, of Cambridge, was first arrested in November 2015 on federal weapons charges arising from the theft of military weapons from a U.S. Army Reserve facility in Worcester, Mass. Morales then escaped from federal custody while detained at the Donald W. Wyatt Detention Facility in Central Falls, Rhode Island on Dec. 31, 2016.
On the morning of Jan.5, 2017, at approximately 9:21 a.m., it is alleged that Morales entered a branch of Bank of America in Cambridge and passed the teller a note that read, “I WANT ALL OF THE LARGE DENOMINATIONS W/BAND’S FROM THE 2ND (BOTTOM) TILL NOW BE CALM – BE COOL – NO DYE PACKS.” The teller was able to flee to the back of the bank behind a locked door, and Morales exited the bank without any money. The bank’s video surveillance system recorded Morales’ attempted robbery.
Later that same day, at approximately 3:11 p.m., Morales allegedly entered a branch of Citizen’s Bank in Somerville and passed the teller a note that read “I WANT THE MONEY IN THE TILL NOW!! 100’s 50’s 20’s Be Calm, Be Cool, be Quick.” When the teller stated, “I can’t,” Morales wished the teller a nice day and exited the bank. The bank’s video surveillance system recorded Morales’ attempted robbery.
At approximately 3:40 p.m., Massachusetts State Police troopers responding to the report of the bank robbery observed Morales who had fled. After a foot pursuit, Morales was apprehended.
The charge of bank robbery provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 and restitution on each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge bases upon the US Sentencing guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; United States Marshal John Gibbons for the District of Massachusetts; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Cambridge Police Commissioner Brent Larabee; and Somerville Police Chief David Fallon, made the announcement today. Assistant U.S. Attorneys Mark Grady of Weinreb’s Worcester Branch Office and Kelly Lawrence of Weinreb’s Major Crimes Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.