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Friday 18 November 2016
Franklin Family Sentenced in Tax ConspiracyRead the Press Release
United States Attorney Gregory J. Haanstad announced that Paul Bouraxis (age 67), his wife, Freida Bouraxis (age 61), son, Andreas Bouraxis (age 40), and son-in-law, Reiad “Ray” Awadallah (age 45), were sentenced in federal court today for federal tax offenses.
Previously, Paul, Freida, and Andreas Bouraxis pleaded guilty to conspiring to defraud the Internal Revenue Service, by skimming cash from various restaurants they operated in the Milwaukee area, failing to report substantial income on their personal income tax returns, paying employees under the table in cash, and failing to pay federal payroll taxes on those cash wages. As part of this scheme the defendants skimmed more than $3 million form their businesses and underreported and underpaid federal income and payroll taxes by approximately $1.4 million. Paul Bouraxis also pleaded guilty to one count of tax evasion. Awadallah pleaded guilty to one count of filing a false federal return based on his failure to report cash he was paid under the table as a general manager of one of the Bouraxis’ restaurants.
Paul Bouraxis was sentenced to two years in federal prison. Andreas Bouraxis was sentenced to 1 year and one day in prison. Freida Bouraxis and Awadallah were each sentenced to three years of probation, during which they will spend 6 months in home confinement.
Paul, Freida, and Andreas Bouraxis were also ordered to pay $1.4 million in restitution, which will be collected from funds the IRS seized from the defendants’ businesses and safe deposit boxes. The defendants agreed to forfeit an additional $442,000 of the seized funds to the United States to settle a related civil forfeiture action.
Federal agents also seized gold and silver coins and bars, as well as jewelry, from the defendants’ business and Paul and Freida’s residence. Virtually all of these items will be sold and the proceeds paid to the IRS to cover penalties and interest on the taxes the defendants attempted to evade. Finally, Paul Bouraxis will assist in transferring funds held in a bank account in Greece to the IRS. Separately, Awadallah paid approximately $40,000 to the IRS for the taxes he underpaid, as well as penalties and interest.
“Those who willfully cheat the tax system unfairly shift the tax burden to honest American taxpayers who pay their fair share,” said Shea Jones, Special Agent in Charge of IRS Criminal Investigation’s St. Paul Field Office. “IRS Criminal Investigation is committed to ensuring that those who to engage in illegal schemes to evade their income and payroll tax obligations are held accountable.”
The case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Matthew Jacobs.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Fort Thompson Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Kyle Marks, age 32, was indicted on November 9, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 14, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, at least 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between September 1, 2016, and October 12, 2016, Marks failed to register and update his registration as a sex offender.
The charge is merely an accusation and Marks is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Marks was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Fort Mill Resident Sentenced in Fraud CaseRead the Press Release
Contact Person: William Day (803) 929-3000
Columbia, South Carolina---- Acting United States Attorney Beth Drake stated today that Robert Eric Fockler, age 58, of Fort Mill, South Carolina was sentenced in federal court in Columbia, South Carolina, for wire fraud, a violation of 18 U.S.C. § 1343. Senior United States District Judge Cameron McGowan Curry sentenced Fockler to imprisonment for 37 months, 3 years supervised release, and ordered restitution of $263,457 be paid.
Evidence presented at the change of plea hearing established that from October 2008 to December 2013 Fockler defrauded Lexmark International, Inc.. While working at Lexmark as a customer service manager, Fockler created false invoices to make it appear the subcontractors had performed services for Lexmark. To hide the fact that Fockler was involved, he submitted the false invoices to a billing service operated by one of his friends who then submitted them to a corporation (Unigroup) that did business with Lexmark. Unigroup then submitted the invoices to Lexmark. Fockler also submitted false expense account claims to Lexmark for reimbursement by creating false hotel, restaurant, airline and other travel bills to falsely make it appear that he had incurred these expenses. Fockler’s fraudulent schemes caused Lexmark losses of more than $285,000.
The case was investigated by agents of the Federal Bureau of Investigation. Assistant United States Attorney William E. Day II of the Columbia office prosecuted the case.
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Former Pike County Man Sentenced for False Bankruptcy DeclarationsRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Daniel Wise, age 55, formerly of Tafton, Pennsylvania, currently residing in New York, NY, was sentenced today by United States District Court Judge James M. Munley in Scranton, to 2 years’ probation and 100 hours’ community service, for making false declarations in bankruptcy proceedings. Judge Munley also ordered Wise to pay a $30,000 fine.
According to United States Attorney Bruce D. Brandler, Wise filed three Chapter 13 bankruptcy petitions in the Middle District of Pennsylvania between August 14 and November 21, 2012. An indictment returned on October 14, 2015, alleged that Wise intentionally failed to reveal his ownership of a $2.4 million promissory note and that he was actively engaged in litigation over the note in New York. Under bankruptcy law, he was required to make those disclosures in his bankruptcy petitions.
On July 13, 2016, Wise pleaded guilty in a proceeding before Judge Munley. He admitted that he made false declarations in connection with the bankruptcy petition filed on November 21, 2012. He further admitted to making false sworn declarations during a January 14, 2013, creditors’ meeting. Wise’s bankruptcy petitions were eventually dismissed on March 13, 2013.
The case was investigated by the Scranton Office of the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Kim Douglas Daniel.
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Former Owner of Miami Based Pharmacy Convicted at Trial of $700,000 Medicare Fraud SchemeRead the Press Release
The former owner of a Miami based retail pharmacy was convicted, following a three-day trial, for his participation in a scheme that involved the fraudulent submission of approximately $700,000 dollars in false billing to Medicare.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), made the announcement.
Andres Alfonso, 54, of Miami, was convicted of three substantive counts of health care fraud. Alfonso faces a maximum possible sentence of ten years in prison for each count of conviction. Alfonso is scheduled to be sentenced on January 27, 2017, by United States District Judge James I. Cohn in Fort Lauderdale.
Evidence presented at trial showed that, for less than six months in 2014, Andres Alfonso owned a retail pharmacy called La Gloria Pharmacy, in Miami. During that time, Alfonso stole approximately $700,000 from Medicare Part D, by stealing the identities of doctors and Medicare beneficiaries and billing for prescription drugs he never purchased nor dispensed. The beneficiaries testified at trial that, although La Gloria Pharmacy had submitted claims for prescription drugs in their names, they had never heard of La Gloria Pharmacy, never received the drugs for which the pharmacy had submitted claims, and had never been treated by the doctor listed in the claim. The doctors testified that, although their names were listed as the prescribing physician in La Gloria Pharmacy’s claims submissions, they had never treated, nor prescribed medication for, any of those beneficiaries.
Mr. Ferrer commended the investigative efforts of HHS-OIG. This case is being prosecuted by Assistant U.S. Attorneys Amanda Perwin and James V. Hayes, in coordination with the Fraud Section of the Justice Department’s Criminal Division and the Medicare Strike Force.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Orange County Teacher in Sex Tourism Case Found Guilty of Traveling to Philippines to Molest Young Girls and Filming the AbuseRead the Press Release
SANTA ANA, California – A former teacher with the Santa Ana School District who traveled to the Philippines to engage in sex with two girls and produced videos of the abuse has been convicted in federal court of seven child exploitation offenses.
Robert Ruben Ornelas, 65, of Santa Ana, a onetime school teacher and girl’s softball coach, was found guilty yesterday afternoon of seven counts – two counts of engaging in sexual conduct in a foreign place, three counts of producing child pornography, and two counts of possessing child pornography.
As a result of the guilty verdicts, Ornelas faces a statutory maximum penalty of 190 years in federal prison when he is sentenced by United States District Judge Cormac J. Carney on February 27. At sentencing, Ornelas will face mandatory minimum 15-year prison terms for each of the three child pornography production charges.
The evidence presented during a six-day trial showed that Ornelas traveled to the Philippines on multiple occasions. He was convicted in relation to three specific trips – in 2006, 2008 and 2012 – where he sexually assaulted two girls who were as young as approximately 8. During all three trips, Ornelas took videos of the molestation and brought the images with him when he returned to the U.S.
The two victims travelled to the United States to testify during the trial about the sexual assaults.
“Pedophiles in the U.S. will not escape prosecution by traveling to foreign lands to victimize children,” said United States Attorney Eileen M. Decker. “Federal law contains provisions designed to protect children, whether they live in the United States or abroad. This case serves as a lesson and warning to any other person considering trips to engage in sex with minors. American law enforcement is adept at investigating this crime and will pursue a criminal case that could lead to a very lengthy prison sentence.”
The investigation into Ornelas began in 2013 when federal authorities received a tip that he possessed a large quantity of child pornography. During the execution of a search warrant, investigators found images, videos and information on Ornelas’ computer and digital media.
The federal charges are the product of an investigation by the Orange County Child Exploitation Task Force, which includes special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Federal Bureau of Investigation, the Newport Beach Police Department and the Orange County Sheriff’s Department.
“This conviction should serve as a warning to every sexual predator who mistakenly believes they can evade justice by violating the innocence of children overseas,” said Joseph Macias, special agent in charge of HSI Los Angeles. “There can be no place for the abuse of foreign children by our citizens, and HSI will seek to defend the rights of those victims no matter how far they live from our shores.”
This case is being prosecuted by Assistant United States Attorneys Sandy N. Leal and Anne C. Gannon of the Santa Ana Branch Office.
Former Ohio Music Instructor Sentenced to 25 Years for Production of Child PornographyRead the Press Release
COLUMBUS, Ohio – Brian M. Sze, 36, of Seattle, was sentenced in U.S. District Court to 25 years in prison for production of child pornography.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Marlon V. Miller, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Franklin County Sheriff Zach Scott, Columbus Police Chief Kim Jacobs and members of the Franklin County Internet Crimes Against Children (ICAC) Task Force announced the sentence handed down today by U.S. District Judge Algenon L. Marbley.
According to court documents, the investigation began in July 2015 after a tip was reported to ICAC, which indicated that Sze had engaged in sexually suggestive communications with a minor. The investigation revealed that Sze had also engaged in illicit sexual contact with a minor and caused recordings of the child engaged in sexual activity to be recorded.
“The defendant was a teacher, entrusted with the care of countless students,” U.S. Attorney Glassman said. “Mr. Sze’s abusive sexual acts with a child may forever distort the child’s understanding of healthy sexual relationships and sentence the child to a potential lifetime of distrust, anger and shame. Today’s sentence is reflective of the life-long damage his actions have caused.”
Sze pleaded guilty in March to one count of production of child pornography.
The Franklin County ICAC Task Force is a multi-agency effort dedicated to the fight against computer facilitated crimes against children. The following agencies are members:
Franklin County Sheriff’s Office
Ohio ICAC
Grove City Police Department
Columbus Police Department
Grandview Heights Police Department
Westerville Police Department
Hilliard Police Department
Franklin County Prosecutor's Office
Homeland Security Investigations (HSI)
Ohio Attorney General’s Office (BCI)
The Ohio State University Police Department
Upper Arlington Police Department
Circleville Police Department
Pickaway County Sheriff’s Office
Delaware County Sheriff’s Office
This case is being brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney's Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims.
U.S. Attorney Glassman commended the members of the ICAC Task Force for the cooperative investigation, and Assistant U.S. Attorney Heather A. Hill, who is representing the United States in this case.
Former Missouri Valley Resident Sentenced for Possession of Child PornographyRead the Press Release
Council Bluffs, IA- On November 17, 2016, Steven Robert Hill, a 33 year-old former Missouri Valley resident, was sentenced by Chief United States District Court Judge John A. Jarvey, to 54 months in prison to be followed by fifteen years of supervised release for possession of child pornography, announced United States Attorney Kevin E. VanderSchel.
Hill entered a guilty plea to the charge on June 9, 2016. The investigation began with a report of a domestic assault involving Hill as a victim. During the investigation, law enforcement learned Hill was in possession of child pornography. A search of Hill’s residence located data storage devices that contained child pornography images. Shortly after law enforcement obtained the images, Hill moved to the State of Washington.
This investigation was conducted by the Missouri Valley Police Department, the Iowa Internet Crimes Against Children Task Force -- Iowa Division of Criminal Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Former Madison County Deputy Sentenced to Three Years in Prison for Lying Under Oath to Obstruct Investigation into BeatingRead the Press Release
HUNTSVILLE – A federal judge today sentenced former Madison County Sheriff’s Deputy Justin Watson to three years in prison for lying under oath with the intent to obstruct a federal investigation, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Joyce White Vance.
U.S. District Judge Karon O. Bowdre sentenced Watson, 32, on the charge, which he pleaded guilty to in January.
According to his plea agreement, Watson, while off-duty, got into a bar fight with a handyman. Watson searched for the man over the next several weeks, and when he observed the man driving down the highway, Watson pulled him over and ordered him out of his truck. Watson proceeded to strike the man in the face, hit him with a baton and choke him until he was unconscious. At a criminal proceeding arising out of those charges, Watson knowingly and falsely claimed, under oath, that he had never seen the man before the traffic stop and that he had not gotten into a bar fight with the man.
“Watson lied under oath to obstruct an investigation into his allegedly flagrant abuse of power and violent assault,” Gupta said. “When officers deliberately try to impede rather than cooperate with federal investigations, their actions violate the law.”
“Although the vast majority of police officers perform their duties with integrity, Justin Watson did not, using his badge to interfere with an investigation into police misconduct,” Vance said. “Communities must be able to expect fair treatment from law enforcement. Watson violated the community’s trust and will now go to prison as a result.”
This case was investigated by the FBI, and was prosecuted by Assistant U.S. Attorney Mary Stuart Burrell and Trial Attorney Christopher J. Perras of the Criminal Section of DOJ’s Civil Rights Division.
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Former Doctor Sentenced in White Plains Federal Court to 18 Months in Prison for Selling Oxycodone PrescriptionsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, James Hunt, the Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), George P. Beach II, the Superintendent of the New York State Police (“NYSP”), George N. Longworth, Commissioner of the Westchester County Police Department, and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”) announced that FREDERICK WEINTRAUB was sentenced today to 18 months in prison for illegally selling Oxycodone prescriptions for cash. WEINTRAUB was a podiatrist who wrote and sold multiple prescriptions for Oxycodone, an opiate and controlled substance. WEINTRUAB pled guilty on August 5, 2016, to one count of distributing an illegal controlled substance. He was sentenced today in White Plains federal court by U.S. District Court Judge Kenneth M. Karas.
U.S. Attorney Preet Bharara said: “Illegally diverted prescription opiates feed the vicious cycle of addiction and abuse that is devastating too many of our communities. As a doctor, Frederick Weintraub was supposed to care for the health of his patients, not help fuel the country’s most acute health crisis.”
Special Agent in Charge James Hunt said: “A doctor selling prescriptions for cash in a hotel parking lot is a drug dealer perpetuating one of America’s #1 health threats - opioid abuse. Through invaluable collaboration with members of the TDS and law enforcement partners, this opioid supplier is off the streets and faces 18 months in jail.”
Superintendent George P. Beach II said: “Oxycodone is a highly addictive, often abused medication. By illegally selling prescriptions for these painkillers, Frederick Weintraub put the community he served at risk. I applaud the hard work of the members involved in this investigation. Together we will continue the fight to keep drugs off our streets and to prevent prescription drug abuse.”
Commissioner George N. Longworth said: “The successful investigation into Frederick Weintraub is just the latest example of the great partnership that exists among federal, state, county, and local law enforcement in our region. The Westchester County Police remains firmly committed to continuing our participation in these joint task forces. They are a critical way to combat the distribution and sale of illegal narcotics in our communities.”
According to the Complaint and Information filed in White Plains federal court, as well as statements made in connection with the plea and sentencing proceedings:
Weintraub was a podiatrist whose medical license was permanently suspended in 2014. Following this suspension, Weintraub began illegally selling prescriptions for controlled substances in exchange for cash. Between November 2015 and January 2016, Weintraub sold at least seven prescriptions for Oxycodone, at prices ranging between $500 and $700 per prescription, to an individual who was cooperating with law enforcement. This individual made recordings of several purchases and provided the prescriptions he purchased to law enforcement. Each sale took place in Weintraub’s car, which was parked in the lot of a Rockland County hotel, and had no connection to any medical examination. During these sales, Weintraub negotiated prices and attempted to arrange a long-term relationship with the customer in which Weintraub would provide weekly Oxycodone prescriptions to the customer, who would then fill the prescriptions and resell the pills at a premium.
In addition to his prison term Weintraub, 65, of Upper Saddle River, New Jersey, was sentenced to two years of supervised release.
Mr. Bharara praised the outstanding investigative work of the DEA’s Tactical Diversion Squad, which comprises agents and officers from the DEA, the NYPD, the New York State Police, Town of Orangetown Police Department, Rockland County Drug Task Force, Westchester County Police Department, and New York City Department of Investigation. In addition, Mr. Bharara thanked the Northvale Police Department and Town of New Windsor Police Department for their assistance on this investigation..
The prosecution of this case is being handled by the Office’s White Plains Division. Assistant United States Attorney Maurene Comey is in charge of the case.
Former Cheyenne Resident Convicted of Conspiracy to Distribute MethamphetamineRead the Press Release
U.S. Attorney Christopher A. Crofts announced today that former Cheyenne resident Scott Leslie Glover has been convicted in federal court. A jury found Glover guilty of conspiracy to distribute methamphetamine after a three-day jury trial in the United States District Court in Cheyenne. Glover is scheduled to be sentenced on January 31, 2017.
This case was prosecuted by Assistant U.S. Attorneys Thomas A. Szott and Stuart S. Healy III, with the assistance of the Wyoming Division of Criminal Investigation, the Cheyenne office of IRS Criminal Investigation and the U.S. Drug Enforcement Administration.
Florida Man Convicted of Sex Trafficking in Connection with Human Trafficking Scheme Targeting Foreign University StudentsRead the Press Release
Defendant Used False and Fraudulent Promises to Recruit Foreign Students to Further a Prostitution and Erotic Massage Enterprise
Jeffrey Jason Cooper, 46, of Miami Beach, Florida, was convicted late yesterday on all 11 counts for organizing a scheme to lure foreign university students into the United States under false pretenses of legitimate summer jobs, only to advertise the students to customers of his prostitution and erotic massage enterprise.
Cooper was convicted of sex trafficking and attempted sex trafficking by fraud, wire fraud, importation of persons for prostitution or immoral purposes and use of a facility of interstate commerce to operate a prostitution enterprise. A jury in the Southern District of Florida returned the verdict after four days of trial.
According to evidence presented in court, Cooper recruited foreign students from Kazakhstan through the State Department’s J-1 Summer Work Travel Program, using false and fraudulent promises of clerical jobs in a fictitious yoga studio in order to bring the students into the United States. After the students arrived in Miami in May 2011, Cooper revealed that the yoga studio did not exist and that he expected the students to perform erotic massages and commercial sex acts as part of his prostitution and erotic massage enterprise. According to testimony and evidence presented at trial, the students were advertised to customers from June 2011 until they were recovered by law enforcement in August 2011.
“Jeffrey Cooper used deception to lure unsuspecting foreign university students across the globe, only to be exploited for the defendant's own personal profit,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “The U.S. Attorney’s Office is fully committed to our international efforts to combat human trafficking - whether by fraud, force or otherwise.”
“Cooper preyed on students seeking to broaden their opportunities through an educational exchange program, using fraud and false promises to sell their bodies for his own profit,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “As this case demonstrates, the Civil Rights Division will continue to work vigorously with our Anti-Trafficking Coordination Team partners to bring traffickers to justice and vindicate the rights of vulnerable victims.”
“This case is the perfect example of how victims can travel half way around the world in an effort to better themselves only to be defrauded and exploited sexually,” said Special Agent in Charge Mark Selby of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami. “HSI along with our federal and international law enforcement partners will continue to work diligently to ensure that individuals like Cooper do not exploit educational work programs for their own profit.”
“Diplomatic Security is committed to using all of the tools at our disposal to prevent human trafficking,” said Director Bill A. Miller of the State Department’s Diplomatic Security Service (DSS). “Our global presence enables our agency to serve as a liaison between U.S. and foreign law enforcement counterparts assisting both in their efforts to stop those that would manipulate instruments of international travel in order to exploit international students in this way.”
Cooper faces a maximum sentence of life in prison, a fine of up to $2,750,000 and an order to pay mandatory restitution to the victims. U.S. District Court Judge K. Michael Moore of the Southern District of Florida will sentence Cooper on Feb. 16, 2017.
The case was investigated by HSI and DSS, with assistance from the Prosecutor General’s Office in Kazakhstan; the FBI Legal Attaché Office in Astana, Kazakhstan; the Justice Department’s Office of International Affairs, the Miami Dade Police Department and the North Bay Village, Florida, Police Department. The case is being prosecuted by Assistant U.S. Attorney Seth M. Schlessinger of the Southern District of Florida and Trial Attorney Matthew T. Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.
The Southern District of Florida is one of six Phase I Pilot Anti-Trafficking Coordination Teams (ACTeams) convened through an interagency collaboration of the Departments of Justice, Labor and Homeland Security to develop high-impact federal human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking of adults by force, fraud and coercion.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Florida Man Convicted of Sex Trafficking in Connection with Human Trafficking Scheme Targeting Foreign University StudentsRead the Press Release
Defendant Used False and Fraudulent Promises to Recruit Foreign Students to Further a Prostitution and Erotic Massage Enterprise
Jeffrey Jason Cooper, 46, of Miami Beach, Florida, was convicted late yesterday on all 11 counts for organizing a scheme to lure foreign university students into the United States under false pretenses of legitimate summer jobs, only to advertise the students to customers of his prostitution and erotic massage enterprise.
Cooper was convicted of sex trafficking and attempted sex trafficking by fraud, wire fraud, importation of persons for prostitution or immoral purposes and use of a facility of interstate commerce to operate a prostitution enterprise. A jury in the Southern District of Florida returned the verdict after four days of trial.
According to evidence presented in court, Cooper recruited foreign students from Kazakhstan through the State Department’s J-1 Summer Work Travel Program, using false and fraudulent promises of clerical jobs in a fictitious yoga studio in order to bring the students into the United States. After the students arrived in Miami in May 2011, Cooper revealed that the yoga studio did not exist and that he expected the students to perform erotic massages and commercial sex acts as part of his prostitution and erotic massage enterprise. According to testimony and evidence presented at trial, the students were advertised to customers from June 2011 until they were recovered by law enforcement in August 2011.
“Cooper preyed on students seeking to broaden their opportunities through an educational exchange program, using fraud and false promises to sell their bodies for his own profit,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “As this case demonstrates, the Civil Rights Division will continue to work vigorously with our Anti-Trafficking Coordination Team partners to bring traffickers to justice and vindicate the rights of vulnerable victims.”
“Jeffrey Cooper used deception to lure unsuspecting foreign university students across the globe, only to be exploited for the defendant's own personal profit,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “The U.S. Attorney’s Office is fully committed to our international efforts to combat human trafficking – whether by fraud, force or otherwise.”
“This case is the perfect example of how victims can travel half way around the world in an effort to better themselves only to be defrauded and exploited sexually,” said Special Agent in Charge Mark Selby of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami. “HSI along with our federal and international law enforcement partners will continue to work diligently to ensure that individuals like Cooper do not exploit educational work programs for their own profit.”
“Diplomatic Security is committed to using all of the tools at our disposal to prevent human trafficking,” said Director Bill A. Miller of the State Department’s Diplomatic Security Service (DSS). “Our global presence enables our agency to serve as a liaison between U.S. and foreign law enforcement counterparts assisting both in their efforts to stop those that would manipulate instruments of international travel in order to exploit international students in this way.”
Cooper faces a maximum sentence of life in prison, a fine of up to $2,750,000 and an order to pay mandatory restitution to the victims. U.S. District Court Judge K. Michael Moore of the Southern District of Florida will sentence Cooper on Feb. 16, 2017.
The case was investigated by HSI and DSS, with assistance from the Prosecutor General’s Office in Kazakhstan; the FBI Legal Attaché Office in Astana, Kazakhstan; the Justice Department’s Office of International Affairs, the Miami Dade Police Department and the North Bay Village, Florida, Police Department. The case is being prosecuted by Assistant U.S. Attorney Seth M. Schlessinger of the Southern District of Florida and Trial Attorney Matthew T. Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.
The Southern District of Florida is one of six Phase I Pilot Anti-Trafficking Coordination Teams (ACTeams) convened through an interagency collaboration of the Departments of Justice, Labor and Homeland Security to develop high-impact federal human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking of adults by force, fraud and coercion.Falmouth Doctor Convicted of Tax Evasion, Illegal Drug Distribution and Health Care FraudRead the Press Release
Contact: David B. Joyce
James W. Chapman, Jr.
Assistant United States Attorneys
Tel: (207) 780-3257Portland, Maine: The United States Attorney’s Office announced that Dr. Joel A. Sabean, 69, of Falmouth, Maine, was found guilty today following a two-week jury trial in U.S. District Court of five counts of tax evasion, 52 counts of drug distribution for other than legitimate purposes, and one count of health care fraud. He was indicted on October 20, 2015.
According to court records, between January 2008 and December 2013, the defendant sent over $2.3 million to a relative who resided in Florida and had her fabricate and send him phony medical bills so that he could write off about $3 million in medical expenses on his 2008 through 2012 income tax returns. From 2007 through 2014, the defendant also wrote invalid prescriptions for the relative, in her name and the names of others, for controlled and non-controlled drugs, some of which were illegally reimbursed by the defendant’s insurance company that did not cover the relative. These prescriptions were invalid because, among other things, they were issued to a close family member who was not a patient without a medical examination.
The defendant faces up to five years in prison and a $100,000 fine on the tax charges, up to five years in prison and a $250,000 fine on the drug charges, and up to ten years in prison and a $250,000 fine on the health care fraud charges. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
This case was investigated by the Internal Revenue Service, Criminal Investigations and the U.S. Drug Enforcement Administration, Portsmouth (NH) Tactical Diversion Squad.
Elizabeth City Woman Sentenced for Cocaine and Marijuana ConspiracyRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court on November 10, 2016, United States District Judge Terrence W. Boyle sentenced SHIRITA MARIE JAMES, 37, from Elizabeth City, NC, to 135 months in prison and 5 years of supervised release for conspiring to distribute and possess with the intent to distribute five kilograms or more of cocaine and a quantity of marijuana. JAMES pled guilty to the charge on July 19, 2016.
On June 20, 2011, JAMES, her husband, Shawn Christopher Elliott, and her brother, William Thomas James, were arrested by the Greenville Regional Drug Task Force and the Drug Enforcement Administration when they attempted to buy 1 kilogram and 100 pounds of marijuana for $106,000 from a confidential informant. On November 10, 2015, members of the Greenville Regional Drug Task Force and North Carolina State Bureau of Investigation arrested JAMES in Lewiston-Woodville, NC, when she was delivering 498 grams of cocaine to a co-conspirator. The investigation revealed that between June 20, 2011, and November 10, 2016, JAMES was responsible for conspiring to distribute approximately 16 kilograms of cocaine and 45 kilograms of marijuana.
Elliott and William James were sentenced in 2013. Elliott received 70 months in prison followed by 8 years of supervised release. William James received 71 months in prison.
The case was investigated by the Greenville Regional Drug Task Force, the North Carolina State Bureau of Investigation, the Drug Enforcement Administration and the Federal Bureau of Investigation. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office, pursuant to funding provided by the North Carolina Conference of District Attorneys, to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.
Eleven Indicted in Trans-National Methamphetamine Trafficking RingRead the Press Release
BOSTON – Eleven men have been indicted in connection with a large-scale methamphetamine trafficking and money laundering ring operating between Massachusetts and California.
Eleven men from Massachusetts and California were indicted on offenses including conspiracy to distribute and to possess with intent to distribute methamphetamine; distribution of methamphetamine; possession of methamphetamine with intent to distribute; and conspiracy to launder monetary instruments:
- Jesse Gillis, 31, of Boston;
- James Giannetta, 61, of Quincy;
- Christopher Halfond, 35, of Carlsbad, Calif.;
- Matthew Metz, 41, of Boston;
- Steven Beadles, 58, of Chelsea;
- Russell Ormiston, 50, of Chelsea;
- Jorge Grandon, 47, of Boston;
- Mario Castro, 48, of Boston;
- Jeffrey Carlo, 28, of Dorchester;
- Bruce Reisman, 57, of Boston; and
- Daniel Ponce, 38, of Boston.
The indictment alleges that beginning in at least 2013 and continuing to November 2016, Gillis, Giannetta, and their co-defendants participated in a conspiracy to transport significant quantities of methamphetamine from San Diego, Calif., to Massachusetts, where it was distributed in the greater Boston area. Proceeds from the sale of that methamphetamine were then transported and/or transferred back to California and laundered in various ways.
The charges of distribution, possession with intent to distribute, and conspiracy to distribute and possess with the intent to distribute 50 grams or more of methamphetamine each provide for a minimum mandatory sentence of 10 years and up to a lifetime in prison, a lifetime of supervised release, and a fine of $10 million. The charges of distribution, possession with intent to distribute, and conspiracy to distribute and possess with the intent to distribute a quantity of methamphetamine provides for a sentence of no greater than 20 years in prison, a lifetime of supervised release, and a fine of $1 million. The charge of conspiracy to launder monetary instruments provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the value of the funds involved, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; William Ferrara, Director of Field Operations of the U.S. Customs and Border Protection; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Boston Police Commissioner William Evans, made the announcement today. The Massachusetts Department of Correction; Norfolk County Sherriff’s Office; Suffolk County Sheriff’s Office; Reading, Watertown, Quincy, Chelsea, Braintree, Peabody, Waltham, and Woburn Police Departments; and Connecticut State Police assisted with the investigation. Karen Beausey of Ortiz’s Narcotics & Money Laundering Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Eagle Butte Man Indicted for Burglary and LarcenyRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Third Degree Burglary and Larceny.
Daniel LeBeau, age 30, was indicted on November 8, 2016. He appeared before U.S. Magistrate Judge Mark Moreno on November 11, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction for the Burglary is up to 10 years in custody, and is 5 years for the Larceny. Each offense carries a maximum fine of $250,000, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The indictment alleges that between June 2, 2016, and June 13, 2016, at Eagle Butte, LeBeau unlawfully entered or remained in an unoccupied structure and after doing so, took or carried away the personal property of another.
The charges are merely accusations and LeBeau is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
LeBeau was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
District Man Sentenced to Eight Years in Prison for Sexual Attack Against Woman in Northwest WashingtonRead the Press Release
WASHINGTON – Juwaun Evans, 21, of Washington, D.C., was sentenced today to eight years in prison on charges involving a home invasion and sexual assault at an apartment building in Northwest Washington, U.S. Attorney Channing D. Phillips announced.
Evans pled guilty in September 2016, in the Superior Court of the District of Columbia, to one count each of attempted first-degree sexual abuse and first-degree burglary. The plea, which was contingent upon the Court’s approval, called for a prison term of eight years. The Honorable Michael Ryan accepted the plea today and sentenced Evans accordingly. Upon completion of his prison term, Evans will be placed on 10 years of supervised release. Evans also must register as a sex offender for the rest of his life.
During the plea proceedings, Evans admitted that on the afternoon of Aug. 17, 2014, he encountered the victim near her apartment building in the 3900 block of Georgia Avenue NW. Evans, whom the victim did not know and had never met, followed her into the building and to her floor. There, he forced his way into her apartment against her will, overcoming her as she attempted to stop him from entering. Evans admitted that he threatened the victim, sexually assaulted her, and then fled the apartment.
Officers with the Metropolitan Police Department (MPD) identified Evans as the suspect and an arrest warrant was issued on Feb. 23, 2016. As part of his plea, Evans admitted to sexually assaulting the victim and forcing his way into her apartment against her will.
In announcing the sentence, U.S. Attorney Phillips commended the work of the detectives of the Metropolitan Police Department’s Sexual Assault Unit. He also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Lezlie Richardson and Paralegal Specialist D’Yvonne Key. Finally, he acknowledged the efforts of Assistant U.S. Attorneys Jason Park and John Timmer, who investigated and prosecuted the case.
District Man Sentenced to 40 Years in Prison for Sexual Attacks Against Women in Southeast WashingtonRead the Press Release
WASHINGTON - Darius Nelson, 28, of Washington, D.C., was sentenced today to a 40-year prison term on charges involving a series of sexual assaults in Southeast Washington, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Interim, Chief of the Metropolitan Police Department (MPD).
Nelson pled guilty in September 2016, in the Superior Court of the District of Columbia, to three counts of first-degree sexual abuse with aggravating circumstances. The plea, which was contingent upon the Court’s approval, called for a prison term of 40 years, to run consecutively to the 22-year sentence that Nelson is currently serving for other sexual assault convictions. The Honorable José M. López accepted the plea today and sentenced Nelson accordingly. Upon completion of his prison term, Nelson will be placed on supervised release for the rest of his life. He also must register as a sex offender for the remainder of his life.
In the earlier case, Nelson pled guilty in 2014 to sexually assaulting two women in separate attacks in Southeast Washington in October of 2013. In this case, in September, he pled guilty to assaulting three other women in separate incidents in 2012 and 2013.
In his guilty plea in this case, Nelson admitted that late in the evening on April 11, 2012, he was walking with the first victim when he put her into a chokehold and dragged her to the rear of a residence in the 1600 block of 21st Place SE. He threw her to the ground, punched her in the face, and sexually assaulted her. After the sexual assault, he again physically assaulted her.
Nelson further admitted that in the early morning hours of Aug. 18, 2012, the second victim was walking on Minnesota Avenue SE, near Pennsylvania Avenue, when he started a conversation with her. During that conversation, Nelson hit her in the face and put what he told the victim was a knife to her back. He then forced her to the rear of a gas station where he sexually assaulted her. Afterward, he ordered her to stay on the ground and not get up, and he fled.
Finally, Nelson admitted that late in the evening on Sept. 18, 2013, he grabbed the third victim from behind in a chokehold and forced her into an alley in the rear of the 2200 block of Nicholson Street SE. In the alley, he robbed her, then pushed her to the ground and sexually assaulted her. When finished, he told her to stay down and remain still, and he fled the scene.
The victims were all taken to Washington Hospital Center, where they each received a sexual assault examination. Swabs taken from two of the victims during their examinations were sent to Bode Technology for DNA testing. A male DNA profile found on the swabs was entered into the Combined DNA Index System (CODIS), a web of state and national databases containing DNA profiles from convicted offenders and crime scenes that is used as an investigative tool. Nelson was identified as a suspect through a CODIS search and DNA “cold hit.” His DNA profile had been loaded into the CODIS database following his 2014 convictions for sexually assaulting the other two women. During an interview with detectives from the MPD’s Sexual Assault Unit in November 2014, Nelson admitted to committing his crimes against the three women in the case that led to the plea today.
In announcing the sentence, U.S. Attorney Phillips and Interim Chief Newsham commended the work of the detectives of the Metropolitan Police Department’s Sexual Assault Unit. They also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Lezlie Richardson and Paralegal Specialists Tierra Nanches, Angelina Slagle, and Wanda Trice. Finally, they acknowledged the efforts of Assistant U.S. Attorneys Julianne Johnston, Jodi Lazarus, and Lindsay Suttenberg, who prosecuted the case.
Detroit Man Charged with Sex TraffickingRead the Press Release
A 67 year-old Detroit man was taken into custody after a criminal complaint was filed in federal court charging him with sex trafficking, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation and Chief James Craig, Detroit Police Department.
Richard Knider Jackson was charged in the complaint.
The criminal complaint alleges that on November 17, 2016, a 911 call was placed to the Detroit Police Department regarding a home on South Electric Street in Southwest Detroit. When police arrived, they found a woman who reported that Jackson had forced her and four others—2 adults and 2 juveniles—to prostitute from the home. She said that Jackson provided all of them with drugs, and that he was violent with them. Police also found a large black steel gate and lock on the stairs to the upstairs of the residence. The other two adult victims were present in the home when police arrived, but the juveniles had escaped through a bathroom window earlier in the day. They have not been recovered, and their whereabouts are unknown.
Jackson made his initial appearance this afternoon in federal court and was temporarily detained until his bond hearing on Monday, November 21 at 1pm.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
The FBI is currently looking for the two juveniles who had escaped from the house. Anyone with information about the juveniles, or with information about Jackson’s sex trafficking operation, is asked to contact the FBI at (313) 965-2323
Dallas Man Sentenced to 240 months in Federal Prison for Role in Conspiracy to Transport, or Assist in Transporting, a Substance Represented to be Cocaine on Flights from DFW Airport as part of an Undercover Law Enforcement OperationRead the Press Release
DALLAS — A Dallas-area man who admitted to his role in transporting a substance that was represented to be cocaine on flights from Dallas-Fort Worth International Airport (DFW) was sentenced today to a lengthy federal prison sentence, announced U.S. Attorney John Parker of the Northern District of Texas.
Funaki Falahola, 35, was sentenced by U.S. District Judge Jane J. Boyle to 240 months in federal prison following his guilty plea in May 2016 to one count of conspiracy to possess with intent to distribute and distribute at least five kilograms or more of cocaine. Falahola has been in custody since mid-July 2015 following a law enforcement operation, led by the Federal Bureau of Investigation, the Dallas Police Department and Internal Revenue Service Criminal Investigation, in which numerous defendants were arrested on drug distribution conspiracy and related charges outlined in a federal superseding indictment returned by a federal grand jury in Dallas the previous month.
That superseding indictment charged Funaki Falahola and three others, Moniteveti Katoa, 53, Molitoni Katoa, 34, and Janelle Isaacs, 42, with the cocaine distribution conspiracy offense. All four defendants pleaded guilty to the offense. In September 2016, Moniteveti Katoa was sentenced to 188 months and Molitoni Katoa was sentenced to 90 months in federal prison. Janelle Isaacs is scheduled to be sentenced on December 1, 2016. The statutory penalty for the offense is not less than 10 years and up to life in federal prison and a $10 million fine.
Funaki Falahola told undercover officers he had family members that could transport controlled substances via commercial airline. Funaki Falahola introduced Moniteveti Katoa to agents as his Uncle and family leader. Molitoni Katoa was also introduced as Falahola’s cousin and a person that could smuggle controlled substances into the DFW airport through his job at the cargo area at the DFW airport. Moniteveti Katoa’s wife, Janelle Isaacs, worked for American Airlines.
According to documents filed in the case, the four used their positions of employment at DFW, or contacted a person or persons who had a position or positions of employment at DFW, to bypass security in order to transport kilogram quantities of a substance that was represented to be cocaine, in what they did not know was an undercover law enforcement operation. As part of the conspiracy, that ran from approximately April 18, 2013, through July 14, 2015, the substance that was represented to be cocaine was transported on commercial airlines flying from DFW to destinations in Las Vegas, Nevada; Newark, New Jersey; Phoenix, Arizona; Chicago, Illinois; Wichita Kansas; and San Francisco, California.
Falahola introduced Moniteveti Katoa to the undercover officer who was interested in smuggling cocaine from DFW Airport. He noted that Moniteveti Katoa had worked for American Airlines for 25 years and was a leader in the Tongan community. Falahola advised the undercover officers that they could transport the cocaine to major U.S. cities as well as to Hawaii and New Zealand. Moniteveti Katoa advised the undercover officer that he was willing to fly to locations in advance of smuggling the cocaine to conduct security checks. In fact, from September 2013 through May 2015, Moniteveti Katoa smuggled what he thought was cocaine on at least six flights from DFW Airport to Las Vegas, Newark, Chicago, Wichita, San Francisco, and Tempe, Arizona. Falahola was with Moniteveti Katoa on the Las Vegas trip.
In June 2013, Falahola and other defendants provided security in a drug protection arrangement for the sale of 20 kilograms of cocaine in Dallas. Falahola was paid $2800 for his protection services, and he paid the others out of this money.
The FBI, Dallas Police Department and Internal Revenue Service Criminal Investigation led the investigation with assistance from the Texas Department of Public Safety; the DFW Department of Public Safety; the U.S. Department of State; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Transportation Security Administration; the U.S. Secret Service; U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; and the Fort Worth, McKinney, Mesquite, and Plano Police Departments.
Assistant U.S. Attorney George Leal is in charge of the prosecution.
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D.C. Heroin Dealer Sentenced for DistributionRead the Press Release
ALEXANDRIA, Va. – Anthony Taylor, 59, of Washington, D.C., was sentenced today to 42 months in prison for conspiracy to distribute heroin.
Taylor pleaded guilty on August 12. According to court documents, Taylor was a member of a crew that distributed heroin in and around the Washington, D.C. metropolitan area. The leader of the crew was Taylor’s cousin, Allen Christopher Morton, who has pleaded guilty to federal gun and drug charges. When customers drove to Morton’s residence in Washington, D.C., Taylor would walk outside, deliver heroin to the customers who were typically waiting in their vehicles and collect drug proceeds on Morton’s behalf. Taylor worked for Morton delivering heroin for approximately two-and-a-half years. During that time period, Taylor and his co-conspirators distributed between 700 grams and 1 kilogram of heroin.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Karl C. Colder, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Washing5ton Field Division, made the announcement after sentencing by U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorney J. Tyler McGaughey prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-171.
Correctional Officer and Two Others Plead Guilty to Racketeering Conspiracy at Eastern Correctional InstitutionRead the Press Release
Baltimore, Maryland – Correctional Officer Rachelle Hankerson, age 26, of Salisbury, Maryland; Ramel Chase, age 34, of Glen Burnie, Maryland; and Miguel Matos, age 46, of Ft. Washington, Maryland, pleaded guilty this week to racketeering conspiracy operating at the Eastern Correctional Institution in Westover, Maryland. Hankerson also pleaded guilty to deprivation of rights under color of law for participating in the stabbing of an inmate.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Postal Inspector in Charge Terrence P. McKeown of the U.S. Postal Inspection Service - Washington Division; Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to their plea agreements and court documents, the Eastern Correctional Institution (ECI) is the largest state prison in Maryland, operating since 1987 near Westover, in Somerset County, on Maryland’s Eastern Shore. During the conspiracy, Hankerson was a Correctional Officer (CO) at ECI, Chase was an inmate, and Matos was the father of an inmate at ECI.
Hankerson admitted that she accepted payments from facilitators and inmates to smuggle contraband into ECI, including narcotics, cell phones and tobacco. Hankerson charged at least $500 per package of contraband she smuggled into ECI. Hankerson also admitted that she approached a co-defendant who was a member of the Bloods gang at ECI for whom she smuggled contraband, and asked the inmate to confront inmate D.S., with whom Hankerson had had a verbal dispute. Hankerson twice allowed her co-defendant onto the tier where D.S. was housed. The second time that the co-defendant entered D.S.’s cell he violently attacked D.S., stabbing him multiple times. Another inmate told Hankerson about the violent confrontation, but rather than notifying prison authorities, Hankerson left the area. She later told an inmate to provide a false story to prison authorities that Hankerson had not been on the tier when the attack occurred.
Chase admitted that he bribed and attempted to bribe COs to smuggle contraband, including narcotics, into ECI. Chase managed a contraband smuggling and distribution network involving co-defendants and others. Matos admitted that he facilitated his son’s contraband smuggling in ECI by obtaining narcotics and other contraband and transferring it to co-conspirators who smuggled it into the facility. In addition, Matos performed financial transactions in furtherance of the smuggling.
Law enforcement intercepted multiple calls in which Hankerson, Chase, Matos and others working with them discussed contraband, arranging meetings with correctional officers, and payment for contraband. In calls between Matos and his son, investigators overheard them discussing COs who smuggled contraband into ECI for them. Matos was also overheard discussing the packaging and delivery of contraband with a supplier.
The defendants each face a maximum sentence of 20 years in prison for the racketeering conspiracy. Hankerson also faces a maximum of 10 years in prison for deprivation of rights under color of law for her participation in the stabbing of an inmate. U.S. District Judge James K. Bredar has scheduled sentencing for Matos on February 24, 2017, at 10:00 a.m.; for Hankerson on March 7, 2017 at 2:00 p.m.; and for Chase on January 17, 2017 at 2:00 p.m.
The U.S. Attorney expressed appreciation to Secretary Moyer whose staff initiated the ECI investigation and who has made the full resources of the DPSCS available to assist the three-year investigation. U.S. Attorney Rosenstein also recognized the efforts of the Maryland Prison Task Force which has brought together federal, state and local agencies in meetings to generate reforms in prison procedures and facilitate joint investigations of prison corruption and prison gangs. Mr. Rosenstein thanked the members of the Maryland Prison Task Force and the and other agencies who assisted in this investigation and prosecution.
United States Attorney Rod J. Rosenstein commended the FBI, U.S. Postal Inspection Service, Department of Public Safety and Correctional Services, the Baltimore Police Department and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Leo J. Wise, Robert R. Harding, and Daniel C. Gardner, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Conspirators Plead Guilty to Defrauding Columbia Health Care ProvidersRead the Press Release
Contact Person: Winston Holliday (803) 929-3000
Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Timothy Weldon Arthur, age 39, of Columbia, and Danielle Nicole Burroughs, age 35, of Duncan, entered guilty pleas in federal court in Columbia on Wednesday to Conspiracy, a violation of 18 U.S.C. § 1349. United States District Judge Mary Geiger Lewis of Columbia accepted the guilty pleas and will sentence them at a later date. Gary Lee Joiner, age 56, of Columbia, pled guilty to the same offense on September 29, 2016.
Evidence presented at the change of plea hearing established that Joiner was the Director of Orthopedic Services for Moore Orthopedic Clinic between 2006 and 2015. In 2010, when Moore Orthopedic merged with Providence Hospital, Joiner established a fake durable medical equipment (DME) company, Creative Casting Concepts (CCC). He then proceeded to submit false invoices to Moore and Providence, representing that CCC was providing orthopedic boots, when they were not. Burroughs was recruited by Joiner to put her name on CCC in order to keep Moore Orthopedic from learning of Joiner’s connection. She helped manage a bank account and post office box and received approximately $191,000 in compensation over five years. Arthur took Joiner’s position at Moore Orthopedic in January 2015, when Joiner retired. Arthur agreed to continue to submit fake invoices. He received approximately $24,000 in compensation before the scheme was discovered in June 2015. Overall, Joiner submitted $2.8 million in bogus invoices between 2011 and 2015.
Ms. Drake stated the maximum penalty for Conspiracy is imprisonment for twenty years and/or a fine of $250,000.
The case was investigated by agents of the Federal Bureau of Investigation. Assistant United States Attorney Winston David Holliday, Jr. of the Columbia office is prosecuting the case.
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Citizen of Honduras Sentenced on Illegal Reentry ChargeRead the Press Release
ROANOKE, VIRGINIA – A citizen of Honduras, who has been removed from the United States or voluntarily returned to Mexico at least five times previously, was sentenced today in Federal Court for the illegally reentering the United States after previously being deported, United States Attorney John P. Fishwick Jr. announced.
Elmer Navarro-Navarro, 37, a citizen of Honduras, previously pled guilty to one count of reentering the United States after being previously being removed due to a conviction for an aggravated felony. Today in District Court, Navarro-Navarro was sentenced to a twelve-month term of imprisonment.
“We will continue to work with our partners to enforcement our immigration laws,” United States Attorney Fishwick Jr. said today. “Ensuring that those who have been justly removed from the United States do not return is paramount to keeping our country safe.”
According to evidence presented at previous hearings by Assistant United States Attorney C. Patrick Hogeboom III and Special Assistant United States Attorney Kari Munro, Navarro-Navarro came to the attention of Immigration and Customs Enforcement after being arrested for malicious wounding in Roanoke City. Navarro-Navarro was removed from the United States on five prior occasions.
Investigation of the case was conducted by U.S. Immigration and Customs Enforcement, the Roanoke City Police Department and the Franklin County Sheriff’s Office. Assistant United States Attorney C. Patrick Hogeboom III and Special Assistant United States Attorney Kari Munro prosecuted the case for the United States.
Chief Financial Officer and Manager Plead Guilty and Another Manager Sentenced in $31 Million Fraudulent Debt Collection SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MAURICE SESSUM, the co-owner, chief financial officer, and chief operating officer of a Buffalo, New York-based debt collection company (the “Company”), pled guilty yesterday before Judge Katherine Polk Failla to orchestrating a scheme to coerce thousands of victims across the country, through false threats and representations, into paying a total of more than $31 million to the Company to resolve debts these victims purportedly owed. In addition, earlier today before Judge Faila, JIMMY STOKES, a Company manager, pled guilty, and TACOBY THOMAS, another Company manager, was sentenced to 70 months in prison for their respective roles in the scheme. All 14 defendants who were charged for their participation in this fraud have now pled guilty.
U.S. Attorney Preet Bharara said: “Now that all of the 14 defendants behind the largest debt collection scheme ever prosecuted have admitted their guilt, the process of restitution to the thousands of victims across the country can begin. Thanks to the dedicated work of our Office’s criminal investigators and the Federal Trade Commission, this so-called ‘business’ is no longer able to victimize consumers.”
According to the allegations contained in the Indictment and statements made during the plea proceedings and THOMAS’s sentencing proceeding:
Between 2010 and February 2015, SESSUM was the co-owner, chief financial officer, and chief operating officer of the Company. In that capacity, SESSUM, together with his co-defendant and co-owner, Travell Thomas, oversaw four debt collection offices operated by the Company in Buffalo and a team of managers and debt collectors. As part of the scheme, SESSUM and Travell Thomas falsely inflated the balances of debts owed by consumers in the Company’s debt collection software so that debt collectors could collect more money from the victims than the victims actually owed.
SESSUM approved debt collection scripts that contained a variety of misrepresentations and instructed his collectors to make those misrepresentations to consumers over the telephone. The Company’s debt collectors, in turn, attempted to trick and coerce thousands of victims throughout the United States into paying millions of dollars in consumer debts through a variety of false statements and false threats. Among other things, STOKES misrepresented to victims that he would have a bench warrant issued for their arrest, would contact the “county” to initiate legal proceedings, and was not calling from a collection agency. Among other things, THOMAS misrepresented to victims that he was a “process server” from “U.S. Couriers” with “legal documents” to serve on victims, that victims had committed “check fraud,” and that THOMAS was calling from an “arbitration firm.”
In total, from about January 2010 through November 2014, the Company collected over $31 million from thousands of victims across the United States. Of the money that the Company took in from victims, approximately $1.5 million was paid in cash to SESSUM and Travell Thomas, approximately $1.4 million was withdrawn from banks and ATMs, and tens of thousands of dollars were used to pay for SESSUM’s personal expenses.
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SESSUM, 40, of Buffalo, New York, and STOKES, 39, of Charlotte, North Carolina, each pled guilty to one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison and three years of supervised release. The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge. SESSUM is scheduled to be sentenced by Judge Failla on March 1, 2017, at 3:00 p.m. STOKES is scheduled to be sentenced by Judge Failla on May 18, 2017.
In addition to his prison term, THOMAS, 34, of Buffalo, New York, was sentenced to three years of supervised release, and ordered to pay forfeiture in the amount of $896,605.03.
In total, 14 individuals associated with the Company have pled guilty to defrauding consumers as part of this debt collection scheme. In addition to SESSUM, STOKES, and THOMAS, co-owner and chief executive officer Travell Thomas, former Company mangers Heather Gasta, Mark Lavin, and John Salatino, and debt collectors Jessica Mann, Charles Starks, William Clark, Anthony Caba, Columbus Simmons, Michael Calandra, and Jennifer Sherk, each pled guilty to conspiracy to commit wire fraud.
Starks, Clark, Calandra, and Mann were sentenced by Judge Failla to prison terms of 37 months, 30 months, 15 months, and one year and one day, respectively. The sentencing of the other defendants who have pled guilty is pending.
Mr. Bharara praised the efforts of the Office’s Criminal Investigators and he thanked the Federal Trade Commission for its assistance in the case.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Edward A. Imperatore, Jennifer L. Beidel, and Jordan L. Estes are in charge of the prosecution.
Chicago Restaurateur Sentenced to a Year and a Day in Federal Prison for Failing to Pay Taxes on More Than $9.8 Million in Cash ReceiptsRead the Press Release
CHICAGO — The owner of several Chinese restaurants in the Chicago area was sentenced today to a year and a day in federal prison for withholding taxes by underreporting receipts paid in cash.
HU XIAOJUN, also known as “Tony Hu,” owns and operates several restaurants in Chicago and the suburbs, including the eateries operating under the Lao Sze Chuan brand. From January 2010 to September 2014, Hu intentionally withheld sales taxes from the Illinois Department of Revenue and the city of Chicago for receipts that customers paid in cash. Hu deposited the unreported cash into his personal bank account and used the money to pay personal expenses.
All told, Hu hid more than $1 million in taxes from state and local government from more than $9.8 million in cash sales.
Hu, 49, of Chicago, pleaded guilty in May to one count of wire fraud and one count of money laundering. In addition to the prison term, U.S. District Judge Amy J. St. Eve also fined Hu $100,000.
“Business leaders like the defendant owe a special obligation to abide by our tax laws and pay their fair share,” Assistant U.S. Attorney William Ridgway argued in the government’s sentencing memorandum. “When they fraudulently hide income it erodes the public’s trust in the tax system.”
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and James D. Robnett, Special Agent-in-Charge of the Chicago Office of the Internal Revenue Service Criminal Investigation Division.
The government is represented by Mr. Ridgway.
Chapman Man Sentenced to 2½ Years for Illegally Possessing HandgunRead the Press Release
Contact: James M. Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Frank Lavway, 66, of Chapman, Maine, was sentenced yesterday in U.S. District Court by Judge John A. Woodcock Jr. to 2½ years in prison and three years of supervised release for being a felon in possession of a firearm. He was also fined $7,500. Lavway pleaded guilty on August 18, 2015.
Court records reveal that on September 13, 2014, a Maine State Trooper encountered the defendant at his Chapman residence carrying a loaded Derringer handgun in his pocket. The defendant was prohibited from possessing the handgun because he had a 2009 Maine felony drug conviction.
In sentencing the defendant, Judge Woodcock found that Lavway used the handgun in connection with maintaining a drug-involved premises where bath salts had been distributed.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Maine State Police.
Businessman Sentenced for Offering Millions to DoD Procurement OfficialRead the Press Release
ALEXANDRIA, Va. – Razak A. Dosunmu, 61, of Washington, D.C, was sentenced today to 15 months in prison for offering bribes to a procurement official with the U.S. Department of Defense (DoD), Defense Logistics Agency (DLA), while negotiating aviation fuel contracts worth over $1 billion.
Dosunmu was found guilty by a federal jury on August 18. According to court documents, Dosunmu was the owner and operator of United Globe Auto Body, LLC, a classic cars restoration and auto repair shop and international trade and business development company located in Takoma Park, Maryland. Beginning in mid-2014, on behalf of United Globe, Dosunmu solicited government contracts with DLA-Energy. DLA-Energy is responsible for the procurement of large volumes of aviation and marine diesel fuel for the military services. In May 2015, investigators received an allegation that Dosunmu, while negotiating for a supply contract with DLA-Energy, offered to buy a procurement official a house in exchange for awarding the contract to United Globe.
According to court documents, the procurement official cooperated with the investigation and over a six-month period recorded several conversations during which Dosunmu pursued two separate contracts worth hundreds of millions of dollars, including one to provide the aviation fuel needed by military forces in the Middle East. The recordings, documents, and the testimony of several witnesses confirmed the existence of the original offer and revealed that the defendant offered multi-million dollar payments for official acts by the procurement officer. In addition to offering a house, $2 million in cash, and percentage points on future contracts, Dosunmu explicitly discussed how to conceal the illicit relationship and payments.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Robert E. Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorney Jack Hanly and Special Assistant U.S. Attorney Edward P. Sullivan prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-54.
Buffalo Man Sentenced for Selling Drugs That Were Smuggled into the Attica Correctional FacilityRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jerome Tallington, 28, of Buffalo, NY, who was convicted of possession with intent to distribute and distribution of heroin and conspiracy to commit such offenses, was sentenced to 21 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Meghan A. Tokash, who handled the case, stated that the defendant sold heroin and marijuana to Elizabeth Camue Martinez. Between September 2013 and December 2013, Martinez then smuggled gram quantities of heroin and ounces of marijuana into the Attica Correctional Facility and provided it to her husband, Andres Martinez, who was at that time incarcerated in the facility. Mrs. Martinez did so knowing that her husband was, in turn, distributing the heroin and marijuana to other inmates.
Elizabeth Camue Martinez and her husband Andres Martinez have also been convicted and sentenced to 34 and 45 months in prison respectively.
Today’s sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Office, the New York State Police, under the direction of Major Steven Nigrelli, the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major Wayne C. Olson, the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard, the Wyoming Country District Attorney’s Office, under the direction of Donald O’Geen, and the New York State Department of Corrections and Community Supervision, under the direction of Commissioner Anthony Annucci.Brewer Man Pleads Guilty to Possession of Child PornographyRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Ronald Boersma, 38, of Brewer, Maine, pleaded guilty today in U.S. District Court to possession of child pornography.
According to court records, in February of 2016, law enforcement, using a peer-to-peer file sharing program, downloaded files containing images of child pornography from the defendant’s home computer. A search warrant was subsequently obtained for the defendant’s residence where a forensic examination of the defendant’s computer revealed additional images of child pornography. On the day the search warrant was executed, the defendant was interviewed and admitted that he had searched for and downloaded sexually explicit images via the internet and that his specific interest was in females between 8 and 10 years of age.
The defendant faces up to 10 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Maine State Police Computer Crimes Unit and the U.S. Secret Service.
Bolingbrook Man Sentenced to 40 Months in Federal Prison for Attempting to Provide Material Support to ISILRead the Press Release
CHICAGO — A Bolingbrook man was sentenced today to 40 months in federal prison, followed by 20 years of supervised release, for attempting to travel overseas to join a foreign terrorist organization in Syria.
MOHAMMED HAMZAH KHAN, 21, pleaded guilty last year to one count of attempting to provide material support to a foreign terrorist organization. The organization is identified in a written plea agreement as the Islamic State of Iraq and the Levant (“ISIL”).
U.S. District Judge John J. Tharp Jr. imposed the 40-month prison term and ordered that it be followed by 20 years of intensive supervised release. Among the special terms of supervised release, Khan must participate in a mental health treatment program; consent at any time to a search by a probation officer or designated law enforcement official of his home, property and electronic communication devices in his possession and control; attend violent extremism counseling; and comply with the requirements of a computer monitoring program, which includes the installation of computer-monitoring software on all devices in Khan’s possession and control that are capable of accessing the Internet.
Pursuant to the plea agreement, Khan agreed to fully and truthfully cooperate in any matter in which he is called upon by the U.S. Attorney’s Office for the Northern District of Illinois.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Mary B. McCord, Acting Assistant Attorney General for National Security; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
Khan, a U.S. citizen from southwest suburban Bolingbrook, has been detained in federal custody since his arrest on Oct. 4, 2014, at O’Hare International Airport in Chicago. According to his plea agreement, beginning no later than approximately February 2014, Khan used the Internet to obtain introductions to ISIL members in Syria and to assist him with traveling there to join the terrorist group. Khan admitted speaking with ISIL members to coordinate the logistics of his admission into ISIL-controlled territory, the plea agreement states.
Khan further admitted in the plea agreement that he knew ISIL had been designated by the United States as a foreign terrorist organization. Khan intended to work in Syria under the direction and control of ISIL, and be required to take any assignment ISIL gave him.
The case was investigated by the Chicago Joint Terrorism Task Force, which is comprised of FBI special agents, Chicago Police Department officers, and representatives from an additional 20 federal, state and local law enforcement agencies. U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), and the Illinois State Police provided significant assistance in the investigation.
The government is represented by Assistant United States Attorneys Matt Hiller, Angel Krull and Sean Driscoll; and U.S. Department of Justice Trial Attorney Michael Dittoe of the National Security Division’s Counterterrorism Section.
Bangor Man Pleads Guilty to Child Pornography ChargesRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Ernest R. Cook, 58, of Bangor, pleaded guilty today in U.S. District Court to possessing child pornography and using the internet intending to view child pornography. Cook was indicted for those crimes in November 2016.
Court records reveal that on December 21, 2014, the Waldo County Sheriff’s Office received information that the defendant had images of child pornography on his computer. The sheriff’s office executed a search warrant and seized the defendant’s computer and a flash drive. A forensic examination by the Maine State Police Computer Crimes Unit (MSPCCU) revealed that the defendant used his computer to search for child pornography on the internet and saved those images to the flash drive.
Cook faces up to 20 years in prison and a $250,000 fine on each of the two counts. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Waldo County Sheriff’s Office, the MSPCCU, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Baltimore Woman Indicted for Fraud Schemes in Which She Allegedly Returns Stolen Merchandise for a RefundRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Marie Joy Tanamor-Steffan, a/k/a Marie Joy Steffan-Tanamor and Marie Joy Acibo Tanamore, age 42, of Baltimore, for wire fraud and false use of a passport in connection with schemes to defraud two retail chains. The indictment was returned on November 16 and unsealed today upon her arrest.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Richard Ingram of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Special Agent in Charge Brian J. Ebert of the United States Secret Service - Washington Field Office.
The eight-count indictment alleges that Tanamor-Steffan defrauded a retail lingerie chain by shoplifting items from stores in Maryland, Virginia, and other states. The indictment alleges that Tanamor-Steffan then exchanged the shoplifted items at another store for items costing slightly more in total. The lingerie store allowed customers who did not have a receipt to exchange or return merchandise for store credit. Customers were required to provide a driver’s license, state identification card, or passport number, which was entered into the store’s computer system. The store limited the amount a customer could receive in non-receipted exchanges/returns in a 90-day period. Tanamor-Steffan presented a Philippine passport as her identification, but allegedly altered the passport number for each exchange to avoid triggering the store limit. Tanamor-Steffan paid the additional amount due with her debit card and received a receipt for the transaction. According to the indictment, Tanamor-Steffan then returned the items, with the refund being credited to the debit card she used during the exchange.
The indictment further alleges that Tanamor-Steffan conducted a similar scheme targeting a home improvement store. According to the indictment, Tanamor-Steffan would go to the home improvement store with a receipt for merchandise, but without the merchandise. The indictment alleges she would select the items on the receipt from inventory in the store, then take those items to customer service and “return” the items she had just selected but not purchased, using the receipt she brought to the store with her. The refund would be credited to Tanamor-Steffan’s bank account.
The indictment seeks the forfeiture of at least $61,322.42, alleged to be the proceeds of the fraud schemes.
If convicted, Tanamor-Steffan faces a maximum sentence of 20 years in prison for each of seven counts of wire fraud, and a maximum of 10 years in prison for passport fraud. Tanamor-Steffan had an initial appearance in U.S. District Court in Baltimore today and was ordered to be detained, pending a detention hearing scheduled for November 21, 2016 at 2:30.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
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 Department of State’s Diplomatic Security Service, United States Secret Service – Baltimore Field Office and Washington Field Office, and National Capitol Region Fraud Task Force for their work in the investigation and thanked HSI-Baltimore for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine and Special Assistant United States Attorney Brian Fish, on detail from the U.S. Department of Homeland Security, who are prosecuting the case.
Attorney General Loretta E. Lynch Releases Video Statement on Hate Crimes in the United StatesRead the Press Release
Attorney General Loretta E. Lynch released a video statement today on the FBI’s newly announced 2015 hate crime statistics as well as on recent media reports of alleged hate crimes and harassment around the country. The statement reminds individuals to report these incidents to both local law enforcement and the Justice Department in order to ensure that career investigators and prosecutors are able to enforce hate crime statutes at the local, state and federal level.
The video can be viewed at here, and a transcript of the video is below:
“Earlier this week, the FBI released its statistics on hate crimes committed in 2015. These numbers should be deeply sobering for all Americans. Among other alarming trends, the report showed a 67 percent increase in hate crimes committed against Muslim Americans. It also showed increases in the number of hate crimes committed against Jewish people, African Americans, and LGBT individuals. Overall, the number of reported hate crimes increased six percent – a number that does not account for the many hate crimes that may go unreported out of shame or fear.
“Beyond these 2015 statistics, I know that many Americans are concerned by a spate of recent news reports about alleged hate crimes and harassment. Some of these incidents have happened in schools. Others have targeted houses of worship. And some have singled out individuals for attacks and intimidation. The FBI is assessing, in conjunction with federal prosecutors, whether particular incidents constitute violations of federal law. We need you to continue to report these incidents to local law enforcement, as well as the Justice Department, so that our career investigators and prosecutors can take action to defend your rights. You can find information about federal hate crimes laws – and other civil rights laws that the department enforces, including protections for students in schools – on our Civil Rights Division’s website. Our site also contains resources for communities working to prevent and respond to hate crimes, as well.
“Last month marked the seventh anniversary of one of those laws: the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act. This landmark statute was named for two men who were killed for the most un-American of reasons – because they were different from their attackers – Matthew Shepard in his sexual orientation, and James Byrd Jr. in his race. The law that bears their names significantly expanded our ability to combat hate crimes by adding new federal protections against crimes based on one’s gender identity, sexual orientation, gender, or disability status – protections that we have worked tirelessly to uphold in the last seven years.
“But despite the tremendous progress we have made, we cannot lose sight of how much remains to be done. Nearly two decades after Matthew Shepard and James Byrd Jr. were brutally murdered simply for being who they were, we still have a long way to go to ensure that every American can live free from the fear of violence or harassment based what they look like, how they worship, or whom they love.
“That work is not just about enforcing the law. It’s about staying true to our highest ideals and most cherished principles. It’s about making sure that all Americans receive the protection of the law. And it’s about giving real meaning to our shared belief that all people are created equal.
“Put simply, this work is the right – and just – thing to do. And I want the American people to know that as long as that work is necessary, the Department of Justice will continue to carry it forward. We will continue to enforce our nation’s hate crimes laws to the fullest extent possible. We will continue to uphold our conviction that all men and women deserve to lead lives of safety and dignity. And we will continue to champion the values of diversity and inclusion that have always been the bedrock of our nation’s progress, and that point the way to a brighter future. Thank you.”
Arlington County Sheriff’s Office Agrees to Settle ADA ClaimRead the Press Release
ALEXANDRIA, Va. – Today the U.S. Attorney’s Office announced a $250,000 settlement agreement under the Americans with Disabilities Act (ADA) with the Arlington County Sheriff’s Office (ACSO) that it failed to provide appropriate auxiliary aids and services to an individual who is deaf.
The U.S. Attorney’s Office’s investigation began when it was made aware of allegations that during a 40-day incarceration at the Arlington County Detention Facility (ACDF), the ACSO, which operates ACDF, violated the ADA by failing to provide appropriate auxiliary aids and services, including sign language interpreter services, to a former detainee who is deaf during complex communications with the ACDF’s staff and its medical contractor. Further, the complainant, who is unable to read and write in English, alleged that the ACDF’s staff failed to furnish him with a telecommunication device that would ensure that he could communicate with individuals outside the detention facility, including his counsel.
“People who are deaf or hard of hearing must be able to communicate clearly with law enforcement officials,” said Tracy Doherty-McCormick, First Assistant U.S. Attorney for the Eastern District of Virginia. “Through this settlement agreement, the Arlington County Sheriff has taken important steps to ensure that the operations of the Arlington County Detention Facility are in compliance with the Americans with Disabilities Act.”
Under the settlement, the ACSO will pay $250,000 to the aggrieved individual. The settlement agreement also requires the ACSO to take remedial steps to bring itself into compliance with the ADA, including the appointment of an ADA Coordinator who is familiar with the ADA’s requirements; providing ADA training to its staff; adopting specific policies and procedures to ensure that auxiliary aids and services are provided promptly to individuals who are deaf or hard of hearing; procuring telecommunication devices usable by individuals who are deaf including videophones; providing hearing aid and cochlear implant processor batteries in the detention facility; ensuring that the ACSO responds promptly to disability related needs of its inmates; and adopting other policies consistent with the ADA. Significantly, the Arlington County Sheriff took several steps that improve the ADA compliance of the ACDF even before finalizing the settlement agreement.
This matter was handled by Assistant U.S. Attorney Steven Gordon, who is the Civil Rights Enforcement Coordinator for the U.S. Attorney’s Office.
The Department of Justice has a number of publications available to assist law enforcement agencies in complying with the ADA on its web site, including “Communicating with People Who Are Deaf or Hard of Hearing: ADA Guide for Law Enforcement Officers,” at http://www.ada.gov/lawenfcomm.pdf. For more information on the ADA and to access this publication, visit http://www.ada.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TDD).
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae.
Alexandria Man Sentenced to 17 Years for Production of Child PornographyRead the Press Release
ALEXANDRIA, Va. – Lucas Aronson, 31, of Alexandria, was sentenced today to 204 months in prison for production of child pornography, enticing minors to engage in sexually-explicit conduct online and recording the acts. Aronson was also ordered to serve a lifetime of supervised release, register as a sex offender upon release from prison, and to pay a total of $20,000 in restitution to his victims.
Aronson pleaded guilty on August 23. According to admissions made in connection with his plea, Aronson posed as a minor girl while using video and text chat websites to chat with minor girls online. Aronson engaged in sexually explicit chats and enticed some of the minors to engage in sexually explicit activity on web camera and recorded the videos, which he maintained on a thumb drive that was found in his residence. In January 2015, Aronson was arrested after streaming a video of an adult male engaged in sexually explicit conduct with a toddler-aged female on a chat website.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorney Jay V. Prabhu and Trial Attorney Lauren Britsch of the U.S. Department of Justice’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.
This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-138.
Alaska Inmate Sentenced for Identity Theft and Filing False Income Tax ReturnsRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Earl Worthy, 41, was sentenced to 70 months in prison for his role in a fraudulent tax refund scheme. The court also ordered Worthy to pay $159,628 in restitution to the IRS. Worthy pleaded guilty on May 9, 2016, to conspiracy to defraud the government, mail fraud, and aggravated identity theft. Worthy’s co-defendant, Tammy Jackson, was previously sentenced to five years of probation for her role in the conspiracy.
While an inmate at the Fairbanks Correctional Center, Worthy collected the names and social security numbers of individuals, many of whom were inmates. Between May 4, 2009, and Sept. 21, 2012, Worthy conspired with at least five others, chief among them Tammy Jackson, to use these identities to prepare and file false federal income tax returns with the purpose of obtaining a refund.
In some instances, the names and personal information used to file the false returns was obtained without permission. At other times, Worthy did obtain permission to use an individual’s name and information when he filed for the false tax refunds. Using the names and SSN’s of the various individuals, Worthy and Jackson prepared false individual income tax returns claiming false wages and withholding amounts listed on the tax returns for which there were no Forms W-2 issued. Worthy directed Jackson to use a template that listed amounts for wages, tax withholding, tax refund and other amounts that were essential to complete and file the tax return. Each return claimed that the taxpayer was owed thousands of dollars in refunds to which they were not entitled. In most instances, Worthy and Jackson forged the individuals' signatures on the tax returns.
Worthy and Jackson submitted the false individual income tax returns in paper. The tax returns were submitted using the addresses of the Fairbanks Correctional Center (FCC) and other addresses most of which were associated with Tammy Jackson. Many of the Treasury checks were mailed to the FCC. In other instances, Treasury checks were mailed to addresses associated with Tammy Jackson. Worthy directed Jackson to cash the fraudulent refund checks. Worthy and Jackson obtained signed Powers of Attorney to allow the cashing of the checks. At other times, the refunds for the false returns were deposited directly into a bank account under the control of Worthy or a co-conspirator. Worthy authorized the co-conspirators, including Jackson, to retain a portion of the money from the Treasury checks or direct deposits.
“Identity theft and tax refund fraud is a top priority for IRS Criminal Investigation. It is particularly disturbing when these crimes are carried out by those serving in a correctional facility,” stated Special Agent in Charge Darrell Waldon of IRS CI. “Alaska has had a recent string of refund schemes perpetrated by prisoners.”
"The Department of Corrections is dedicated to public safety and will always respect the rights and dignity of victims of crime. The successful investigation by DOC staff and our law enforcement partners which led to Mr. Worthy's conviction and sentencing shows our commitment in making sure laws are not broken inside in our institutions," stated Dean Williams, Commissioner, Alaska Department of Corrections.
The case was prosecuted by Assistant U.S. Attorney Steven Skrocki of the District of Alaska. The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI), with the assistance of the State of Alaska Department of Corrections. For more information on ways to protect against identity theft and what to do if victimized by this crime, visit www.irs.gov.
Aiken Man Pleads Guilty to Investor FraudRead the Press Release
Contact Person: Winston Holliday (803) 929-3000
Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Arthur Vann, age 65, of Aiken, South Carolina, has entered a guilty plea in federal court in Columbia to Conspiracy, a violation of 18 U.S.C. § 371. United States District Judge J. Michelle Childs, of Columbia, accepted the guilty plea and will sentence Vann at a later date.
Evidence presented at the change of plea hearing established that Vann had an interest in various offshore bank accounts and companies, primarily located in the Caribbean. As a financial adviser, he directed a number of clients to invest in a particular fund focused on the Cayman Islands. When money was transferred for this purpose, Vann diverted some of it into accounts he controlled and spent it for his own benefit. When confronted by a number of investors, he sent them fake statements purporting to reflect the investments made. The amount of loss was $1.4 million.
Ms. Drake stated the maximum penalty for Conspiracy is imprisonment for five years and/or a fine of $250,000.
The case was investigated by agents of the Federal Bureau of Investigation. Assistant United States Attorney Winston David Holliday, Jr. of the Columbia office is prosecuting the case.
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Accountant Pleads Guilty to Embezzling more than $1 MillionRead the Press Release
DAYTON – Deborah Yosick, 60, currently of Davenport, Florida, pleaded guilty in U.S. District Court to embezzling more than $1 million. She pleaded guilty to one count each of wire fraud and income tax evasion.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Division, announced the plea entered into yesterday before U.S. Magistrate Judge Sharon L. Ovington.
According to court documents, Yosick embezzled money from her employer, Donald C. Wright Investments, LLC and its sister company Don Wright Realty, LLC. Don Wright’s businesses are family-owned and are based in Centerville, Ohio. Don Wright provided various commercial, industrial, and residential services in the Dayton, Ohio-area.
Between approximately 1985 and October 2015, Yosick was Don Wright's accountant and was principally responsible for handing its accounts payables and accounts receivables, including making journal entries relating to receivables, crediting tenant accounts as rents were received and preparing deposit slips and making deposits on behalf of Don Wright. Yosick was personally responsible for depositing rental receipts (whether they were cash or check) into the appropriate Don Wright bank account.
Between 2010 and approximately October 2015, Yosick devised a scheme to defraud and embezzle money from Don Wright by using rental payments to pay her personal American Express bill, by initiating ACH transfers from a Don Wright bank account. She used a portion of the cash she embezzled to purchase money orders from supermarkets, Wal-Mart and post offices and use the money orders to pay her personal American Express credit card bills.
Also, between March 2013 and approximately October 2015, Yosick embezzled funds from Don Wright by causing approximately 70 electronic transfers (ACH payments) from a company bank account to American Express in order to pay her personal credit card bill.
In total, between 2010 and approximately October 2015, Yosick embezzled $1,098,778.23 from Don Wright.
Additionally, Yosick committed income tax evasion by filing a false income tax return for the 2014 income tax year by underreporting her taxable income by approximately $303,808, which resulted in tax due and owing of approximately $94,601, which represented the embezzled funds from Don Wright.
In total, Yosick attempted to evade paying $255,571 in federal income taxes to the IRS for the 2010, 2011, 2012, 2013 and 2014 income tax years.
Yosick agreed to pay restitution to Don Wright Realty LLC in the amount of $1,098,778.23 and to the Internal Revenue Service (IRS) in the amount of $255,571.
Wire fraud is punishable by up to 20 years imprisonment, and income tax evasion is punishable by up to 5 years imprisonment.
“Tax evasion and embezzlement schemes of this magnitude and with this degree of trickery, dishonesty and deceit, deserves to be punished,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “The IRS, FBI, and U.S. Attorney’s Office remain determined and vigilant in ferreting out such schemes to cheat the honest taxpayers.”
U.S. Attorney Glassman commended the cooperative law enforcement investigation, as well as Assistant United States Attorney Alex R. Sistla, who is prosecuting the case.
Thursday 17 November 2016
Wasilla Man Indicted by Federal Grand Jury for Threatening Planned ParenthoodRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a Wasilla man was indicted by a federal grand jury in Anchorage for using a telephone to make a threat to damage and destroy a building by means of an explosive.
Robert Joseph Klima, 52, of Wasilla, Alaska, is the sole defendant named in the one-count indictment.
According to court documents, on or about Nov. 6, 2016, Klima left three threatening voicemail messages for Planned Parenthood. In the first voicemail message, Klima stated that if Planned Parenthood performed an abortion for another individual, Klima would “treat you just as a murderer who murdered my child.” Klima also stated, “I can guarantee you I know what to do.” In the second voicemail message, Klima instructed Planned Parenthood to call him back to “avoid any kind of unpleasantries” that may result if an abortion was performed for that other individual. In the third voicemail message, Klima told Planned Parenthood “I got a message today and apparently there is an RPG trained on your position. I suggest not being open tomorrow.” On the same day, Klima texted another individual that “I have absolutely no problem killing someone who killed my child,” “I can and will put a bullet right through their forehead and go ahead and have coffee afterwards,” and “I don’t even care if you call the police to try and stop me because it won’t be able to. I’m going to kill the person who murdered my child and that’s that.”
Assistant U.S. Attorney Yvonne Lamoureux, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of up to 10 years in prison, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The FBI conducted the investigation leading to the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Warrington Man Charged with Illegal ReentryRead the Press Release
Cristhian Guerrero-Alvarez, a/k/a “Raul Hernandez,” of Warrington, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about October 18, 2016, Guerrero-Alvarez, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about August 18, 2008, February 24, 2011, March 28, 2011, April 3, 2011, April 15, 2011, July 8, 2015, January 27, 2016, and June 15, 2016.
If convicted the defendant faces a maximum possible sentence of ten years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Sean P. McDonnell.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Wallingford Woman Admits Distributing Heroin to Overdose VictimRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that BRITTANY ESPOSITO, 27, of Wallingford, pleaded guilty today before Senior U.S. District Judge Alfred V. Covello in Hartford to one count of distribution of heroin. The charge 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, on May 14, 2016, Old Saybrook Police and emergency medical personnel responded to a report of a suspected overdose at an apartment on Main Street in Old Saybrook. The victim, a 26-year-old male, was pronounced deceased at the scene. Investigators seized the victim’s iPhone, one empty wax paper fold and several syringes.
The investigation, which has included the analysis of numerous text messages, revealed that ESPOSITO purchased heroin for the victim on credit and then provided the heroin to the victim on May 13, 2016.
ESPOSITO was arrested on June 16, 2016.
Judge Covello scheduled sentencing for February 9, 2017, at which time ESPOSITO faces a maximum term of imprisonment of 20 years.
ESPOSITO is released on bond pending sentencing.
This matter is being investigated by the DEA’s New Haven Tactical Diversion Squad and the Old Saybrook Police Department, with the support and assistance of the Middlesex State’s Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorney Robert M. Spector.
Uncasville Man Pleads Guilty to Sex Trafficking of a Minor, Distributing Heroin that Led to Her OverdoseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RAMON GOMEZ, also known as “B.I.,” 40, of Uncasville, pleaded guilty today in New Haven federal court to sex trafficking of a minor and heroin distribution offenses.
According to court documents and statements made in court, in the early morning hours of May 29, 2016, members of the Groton Police Department and emergency services personnel responded to a Groton motel room on the report of a suspected drug overdose. The victim, a 17-year-old female, was administered two doses of Narcan (Naloxone), which were deemed unsuccessful, before she was transported to the hospital and died later that morning.
The investigation revealed that GOMEZ, who knew the victim was under the age of 18, brought the victim to the motel to engage in prostitution. On the morning of May 28, 2016, GOMEZ sold a quantity of heroin to another individual who then distributed the heroin to the victim.
GOMEZ was arrested on state charges on June 1, 2016.
“Two of our office’s highest priorities are aimed at protecting our youth: Rooting out child sex trafficking and stemming the opioid abuse and overdose epidemic,” said U.S. Attorney Daly. “This case tragically and maddeningly combines the two. I thank our federal partners in these efforts, notably the DEA and HSI, and the Groton Police Department and Regional Community Enhancement Task Force for their investigative work in this matter. All are working tirelessly to save the most vulnerable among us from abuse and exploitation.”
GOMEZ pleaded guilty to one count of sex trafficking of a minor, an offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life, and one count of possession with intent to distribute heroin, an offense that carries a maximum term of imprisonment of 20 years.
GOMEZ is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on February 10, 2017. He has been detained since his arrest.
The matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
The investigation is being conducted by the Drug Enforcement Administration, Homeland Security Investigations, the Town of Groton Police Department and the Regional Community Enhancement Task Force. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
U.S. Attorney’s Office Launches Smart on Crime InitiativeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. today officially launched the Western District of New York’s Smart on Crime Initiative.
At the direction of the Attorney General in early 2013, the Justice Department launched a comprehensive review of the criminal justice system in order to identify reforms that would ensure federal laws are enforced more fairly and—in an era of reduced budgets—more efficiently. Five goals were identified as a part of this review:
• To ensure finite resources are devoted to the most important law enforcement priorities;
• To promote fairer enforcement of the laws and alleviate disparate impacts of the criminal justice system;
• To ensure just punishments for low-level, nonviolent convictions;
• To bolster prevention and reentry efforts to deter crime and reduce recidivism;
• To strengthen protections for vulnerable populations.Acting U.S. Attorney Kennedy stated, “To the man who only has a hammer in the toolkit, every problem looks like a nail. To those of us who have spent our legal careers working as prosecutors in the criminal justice system, the hammer, i.e., prosecuting the defendant for the most serious readily provable offense so that the longest term of imprisonment possible may be achieved, remains, in many instances, the appropriate tool of choice. Yet, increasingly, many are coming to the realization that some of the recurring problems we see may be better addressed with tools other than—or in addition to—our hammer.”
In the Buffalo and Rochester areas, Smart on Crime funding is being dedicated to two specific job readiness programs designed to enhance employment opportunities for defendants returning to the community following completion of their prison sentences. Noting that “the inability to find meaningful employment constitutes one of the largest obstacles confronting those who are released from prison,” Kennedy directed that a portion of the Smart on Crime funds be used to provide 10 individuals—five in Buffalo and five Rochester—with training and certification in asbestos removal and remediation. In addition, another 30 individuals are receiving forklift training and certification. Once trained and certified, these individuals will be better positioned to enter the workforce.
Kennedy further stated, “These previously convicted felons are literally and figuratively being given the opportunity to clean-up and raise-up their lives and our community. It’s a win-win in the sense that the individuals are benefitted by gaining skills which will afford them the opportunity to break the cycle of crime and establish themselves as productive members of society, while the community benefits by having a better trained workforce.”
Smart on Crime funding is also being dedicated to Recycle-A-Bicycle, an educational program for at-risk youth at the Matt Urban Hope Centers in Buffalo. As part of the program, students receive a donated bicycle and strip it down part-by-part to the frame. With the help of instructors, students re-assemble the bike, making modifications as they see fit. Students then then learn rules of the road, road safety, riding etiquette, hand signals, and how to plan to travel from place to place on two wheels via bike paths and bicycle infrastructure. Following completion of the course, students receive a set of lights, a lock, and helmet, and they get to keep the bicycle.
“This after-school program promotes the development of hands-on problem-solving skills and teaches kids the fundamental notion that they have the ability to fix things that are broken,” Kennedy said. “It also affords kids with an understanding of how to use tools, while promoting independence, mobility, and a healthy lifestyle.”
The programs receiving Smart on Crime funds will be monitored by Jason Flores, the Smart on Crime Coordinator for the U.S. Attorney’s Office in Buffalo.
U.S. Attorney, Justice Department announce grant awards to Western District of Louisiana agenciesRead the Press Release
SHREVEPORT/ LAFAYETTE/ALEXANDRIA/MONROE/LAKE CHARLES, La. – United States Attorney Stephanie A. Finley and the Department of Justice announced that 14 grants totaling more than $2.3 million have been awarded to agencies within the Western District of Louisiana through the Bureau of Justice Assistance (BJA).
An individual grant of $1 million was awarded to the City of Shreveport through the BJA’s Byrne Criminal Justice Innovation Program. The Planning and Implementation Grant’s goal is to improve community safety as part of a strategy to advance neighborhood revitalization. The city is required to set up a plan to reduce crime in a target neighborhood and then begin implementation during the project period.
Nine other grants totaling $534,516 were awarded to law enforcement through the BJA as part of the Edward Byrne Memorial Justice Assistance Grant. The grant is awarded to local governments to support a broad range of activities to prevent and control crime.
They include:
Alexandria: Rapides Parish Sheriff’s Office: $85,320 to fund the Metro Narcotics Task Force and provide overtime;
Bastrop: Morehouse Parish Sheriff’s Office: $12,780 to update vehicle equipment;
Bossier City: Bossier City government: $29,153 to provide overtime, education and mobile radios;
Franklin: St. Mary Parish Sheriff’s Office: $13,164 to purchase safety and training equipment;
Lafayette: Lafayette Parish Sheriff’s Office: $97,880 to support law enforcement initiatives to purchase servers, laptops and computer workstations;
Lake Charles: Calcasieu Parish Sheriff’s Office: $71,607 to purchase rescue equipment, software, radar equipment and a patrol motorcycle;
Monroe: Ouachita Parish Sheriff’s Office: $90,640 to purchase law enforcement equipment, including vehicle wireless routers and digi-ticket devices;
Natchitoches: City of Natchitoches: $13,548 to purchase surveillance equipment for the drug task force; and
Shreveport: City of Shreveport: $120,424 to purchase police patrol boats and patrol vehicles.
Three crime labs in the District have been awarded a total of $487,989 through the DNA Capacity Enhancement and Backlog Reduction Program.
The labs awarded are:
Lake Charles: Southwest Criminalistics Laboratory: $100,000 to upgrade equipment and for training;
New Iberia: Acadiana Crime Lab: $116,875 to maintain and expand employment; and
Shreveport: North Louisiana Criminalistics Laboratory: $271,114 to increase amount of cases analyzed and for training.
The 14th Judicial District Attorney’s Office in Lake Charles was named the recipient of $350,000 through the Drug Court Discretionary Grant Program. The funds are to be used to build a single jurisdiction drug court. It is also tasked with preventing recidivism through targeted treatment, vocational services and community reintegration programs.
“The coordinated federal support will provide much needed funds for our local law enforcement partners and important initiatives for our communities to develop comprehensive crime strategies,” Finley stated. “I am especially pleased to make this announcement for the Western District of Louisiana. I want to thank the members of our grant committee who spend many hours to make sure that our law enforcement community has a chance to receive these funds.”
The Office of Justice Programs (OJP) provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. The OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking (SMART). For more information on grant award programs, visit www.bja.gov.
U.S. Attorney Names New Coordinator to Human Trafficking Task Force for the Northern District of AlabamaRead the Press Release
BIRMINGHAM – The U.S. Attorney’s Office for the Northern District of Alabama has named a new coordinator for its Human Trafficking Task Force, announced U.S. Attorney Joyce White Vance.
Assistant U.S. Attorney Xavier Carter will lead the Northern District’s task force, which works with law enforcement agencies and state and local task forces to combat human trafficking.
“Human trafficking is modern day slavery,” Vance said. “It preys on the world’s most vulnerable people ? abandoned children, runaways, illegal immigrants afraid to speak out ? forcing them into prostitution or physical labor. Mr. Carter will lead our task force as it continues to coordinate with federal and state law enforcement to raise awareness of the problem and focus resources on investigating and prosecuting human trafficking crimes.”
One of the local task forces that the U.S. Attorney’s Office task force works closely with is Cullman County’s. The U.S. Department of Homeland Security, a leading federal agency in the fight against human trafficking, recently announced a partnership with Cullman County in the department’s Blue Campaign, which DHS conducts to raise awareness of human trafficking. Cullman County is only the second county in the state of Alabama to partner with DHS. Jefferson County is also a partner.
Through the partnership, Blue Campaign materials, co-branded for the county and DHS, will be posted throughout the county as part of a public awareness campaign to educate local residents on how to recognize and report potential instances of human trafficking.
“We cannot combat human trafficking alone,” said Blue Campaign Chairwoman Maria Odom, who signed the memorandum of understanding on behalf of DHS with Cullman County Chairman Kenneth Walker. “The Blue Campaign works closely with our partners across the nation to help ensure that our communities know how to recognize and report the signs of human trafficking. We are honored to be working with Cullman County to bring an end to this heinous crime.”
Cullman County Presiding District Court Judge Kim Chaney said he is “extremely pleased and proud that, through the efforts of the Cullman Human Trafficking Task Force, Cullman County has been chosen to partner with the United States Department of Homeland Security, through the Blue Campaign, to bring awareness and education about human trafficking to our county and state.”
“This partnership will allow the Cullman County Human Trafficking Task Force to access world-class resources to inform and educate area law enforcement, medical providers, attorneys, educators, business leaders and the community about human exploitation for profit,” Chaney said.
Earlier this year, the Cullman County Human Trafficking Task Force held a free public training with the DHS Blue Campaign and partnered with the Human Trafficking Task Force for the Northern District of Alabama to provide free internet safety training. This latest partnership will build on previous training in the county by spreading public awareness materials to members of the Cullman County community, to include more targeted materials to attorneys, juveniles, and members of the trucking industry in the county.
The Blue Campaign works in partnership with law enforcement, government, non-governmental and private organizations to protect the basic right of freedom and to bring those who exploit human lives to justice.
For more information, visit https://www.dhs.gov/blue-campaign, or contact Assistant U.S. Attorney Xavier Carter at (205) 244-2001.
Two defendants appear in federal court for gun crimesRead the Press Release
CHARLESTON, W.Va. – Two defendants appeared in federal court today for gun crimes, announced United States Attorney Carol Casto. Lachance D. Woodson, 28, of Charleston, was sentenced to two years and three months in federal prison for being a felon in possession of a firearm. In a separate prosecution, Denver Clifton Julious, 66, of Hilltop, pleaded guilty to being a felon in possession of a firearm.
Woodson admitted that on December 22, 2015, he possessed a Hi-Point .40 caliber pistol in Charleston. Woodson was prohibited from possessing any firearm under federal law because of a 2010 conviction in federal court in the Southern District of West Virginia for possession of a firearm after a misdemeanor conviction for domestic violence.
In a separate prosecution, Fayette County Deputy Sheriffs arrested Julious on May 6, 2016, at his home on an outstanding arrest warrant. During a search of Julious incident to the arrest, officers found a Davis Industries .22 caliber revolver in his pocket. Julious was prohibited under federal law from possessing firearms as a result of a 1988 first-degree sexual assault conviction in Fayette County Circuit Court and a 2006 felon in possession of a firearm conviction in federal court in the Southern District of West Virginia. Julious faces up to 10 years in federal prison when he is sentenced on February 9, 2017.
The Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation of Woodson. Assistant United States Attorney Monica D. Coleman is responsible for Woodson’s prosecution. United States District Judge John T. Copenhaver, Jr., imposed Woodson’s sentence.
The investigation of Julious was conducted by the Fayette County Sheriff’s Department and the West Virginia State Police Explosive Ordinance Disposal Unit. Assistant United States Attorney Joshua Hanks is in charge of the prosecution of Julious. The plea hearing for Julious was held before United States District Judge Joseph R. Goodwin.
These cases were brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime.
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Two Winner Men Sentenced for Criminal TrespassRead the Press Release
United States Attorney Randolph J. Seiler announced that two Winner, South Dakota, men convicted of Criminal Trespass were sentenced on November 10, 2016, by U.S. Magistrate Judge Mark A. Moreno.
Jeremy Schroeder and Kirby Kartak, both age 37, were sentenced to jointly and severely pay the Rosebud Sioux Tribe $600 in restitution, to each pay a $300 fine, to write letters of apology to the Rosebud Sioux Tribe, and to pay a special assessment to the Federal Crime Victims Fund in the amount of $5.
Schroeder and Kartak were indicted by a federal grand jury on April 13, 2016. Both pled guilty at a joint plea and sentencing hearing on November 10, 2016.
The convictions stem from an incident that occurred on December 2, 2014. Schroeder and Kartak, non-Indians, drove heavy equipment into the Oyate Whacanku Spirit Camp located near Rosebud, South Dakota, and removed approximately 30 large hay bales which were being utilized to form a windbreak at the camp. Schroeder claimed to have an ownership interest in the hay, which was harvested on a separate tract of land owned by the tribe. Schroeder had previously leased the land on which the hay was harvested.
The Spirit Camp was established on land owned in trust by the Rosebud Sioux Tribe. The Spirit Camp was designed as a cultural and spiritual camp for activities associated with tribal opposition to the construction of the TransCanada Keystone XL Pipeline. Several tipis and a sweat lodge were erected at the camp and the camp was blessed by tribal spiritual leaders.
This case was investigated by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Criminal Chief Dennis R. Holmes prosecuted the case.
Two Plead Guilty in Multimillion Dollar Internet Pharmacy CaseRead the Press Release
GAINESVILLE, FLORIDA – Edward Leonforte, 55, of Gainesville, and Larry Burstein, 69, of Alachua, Florida, have pled guilty in a multimillion dollar internet pharmacy case. On September 13, Leonforte pled guilty to conspiracy, distribution of the controlled substance codeine, and money laundering. Burstein pled guilty today to conspiracy. The guilty pleas were announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Leonforte and Burstein operated multiple internet pharmacy websites from a Progress Park rental space in Alachua, Florida, and sold substantial quantities of prescription drugs without requiring customers to provide a prescription. Between 2013 and 2015 through freeworldpharmacy.com, Leonforte’s business sold more than $7.5 million in pharmaceuticals, including more than $385,000 in generic codeine in 2015 alone. On several occasions in 2012 and 2013, an undercover DEA law enforcement agent was able to order and receive hundreds of codeine pills from the freeworldpharmacy.com and medsindia.net websites without providing a prescription.
The defendants face a maximum of 20 years in prison. Leonforte’s sentencing hearing is scheduled for January 4, 2017, at 5:30 p.m. at the United States Courthouse in Gainesville. Burstein’s sentencing hearing is scheduled for February 3, 2017, at 1:30 p.m.
This case resulted from a joint investigation by the U.S. Drug Enforcement Administration and the Internal Revenue Service—Criminal Investigation, with assistance from the Gainesville Police Department, the Alachua County Sheriff's Office, the Alachua Police Department, the Columbia County Sheriff's Office, the Ocala Police Department, the Florida Department of Health, the U.S. Food and Drug Administration, and the U.S. Postal Inspection Service. Assistant United States Attorney Jason S. Beaton is prosecuting the case.
The U.S. Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]