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6 January 2017
U.S. Citizen Living in Mexico Sentenced to Federal Prison for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Elizabeth Gallardo, 37, a U.S. citizen living in Mexico, was sentenced today in federal court in Las Cruces, N.M., to 30 months in prison followed by three years of supervised release for her methamphetamine trafficking conviction.
Gallardo and co-defendant Yuriria Anahid Ramirez-Moreno, 33, a Mexican national, were arrested on May 13, 2016, on a criminal complaint charging them with conspiracy and possession of methamphetamine with intent to distribute. According to the criminal complaint, an officer of the Las Cruces Police Department (LCPD) arrested the women after finding them in possession of methamphetamine; Gallardo possessed 100.6 grams of methamphetamine and Ramirez-Moreno possessed 108.5 grams of methamphetamine.
Gallardo and Ramirez-Moreno were subsequently indicted on July 20, 2016, and charged with conspiracy to distribute methamphetamine on May 12, 2016, in Doña Ana County, N.M.
On Aug. 29, 2016, Gallardo and Ramirez-Moreno both entered guilty pleas to felony informations charging them with conspiracy to possess methamphetamine with intent to distribute. In entering her guilty plea, Gallardo admitted that on April 29, 2016, she delivered 54.7 grams of methamphetamine to an undercover agent. Ramirez-Moreno admitted that on May 5, 2016, she delivered 56 grams of methamphetamine to the undercover agent. Both women admitted that they intended to deliver the 209 grams of methamphetamine seized from them on May 12, 2016, to the same undercover agent.
At sentencing, Ramirez-Moreno faces a maximum penalty of 20 years in prison followed by not less than three years of supervised release. Ramirez-Moreno remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA and the Las Cruces Police Department. Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
U.S. Attorney Wifredo Ferrer to Participate in Human Trafficking Panel Discussion with Department of Justice Employees on Monday in Washington, DC to Commemorate National Slavery and Human Trafficking Prevention MonthRead the Press Release
U.S. Attorney Wifredo Ferrer of the Southern District of Florida will join the “Human Trafficking: Preventing the Crime, Prosecuting the Perpetrators, Protecting the Survivors” panel discussion with U.S. Department of Justice employees to commemorate National Slavery and Human Trafficking Prevention Month in Washington, DC on MONDAY, JAN. 9, AT 1:00 P.M. EST. Attorney General Loretta E. Lynch Attorney General Loretta E. Lynch will deliver opening remarks.
WHAT: A panel discussion on human trafficking with department employees to commemorate National Slavery and Human Trafficking Prevention Month at the U.S. Department of Justice.
WHO: Attorney General Loretta E. Lynch to deliver opening remarks
Panelists:
U.S. Attorney Wifredo Ferrer of the Southern District of Florida
U.S. Attorney Kenneth Polite of the Eastern District of Louisiana
U.S. Attorney Carole Rendon of the Northern District of Ohio
Director Hilary Axam of the Civil Rights Division’s Human Trafficking Prosecution Unit
Acting Director Marilyn Roberts of the Office of Justice Programs’ Office for Victims of Crime
WHEN: MONDAY, JANUARY 9, 2017
1:00 p.m. EST
WHERE: Department of Justice
7th Floor Conference Center
950 Pennsylvania Avenue, NW
Washington, DC 20530
OPEN PRESS (Media Gather Time: 12:00 p.m. EDT; Final Access: 12:50 p.m. EDT)
LIVESTREAMED AT: HTTPS://WWW.JUSTICE.GOV/LIVE
NOTE: Media should RSVP to [email protected]. Questions regarding logistics should be directed to the Office of Public Affairs at [email protected] or (202) 514-2007. All media will use the main visitor’s entrance on Constitution Avenue, between 9th and 10th Streets. All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials.
Two convicted killers from Canton indicted for drug and firearms crimesRead the Press Release
Two Canton men with prior homicide convictions were indicted on firearms and drug trafficking charges, law enforcement officials said.
Named in the seven-count indictment are Maurice A. Stewart, 39 and William W. Moore, 37. A third man, Jason E. Cousins, 45, also of Canton, was also indicted on a firearms charge.
Stewart and Moore are charged with possession with intent to distribute at least 500 grams of methamphetamine, cocaine and crack cocaine.
Stewart and Moore are also charged with using firearms in furtherance of drug trafficking crimes.
Moore was charged with being a felon in possession of a firearm. The indictment alleges that he had a Glock model 23 handgun, a Smith and Wesson SD9 handgun and ammunition on Nov. 17, 2016, despite a 2000 conviction for murder in Michigan.
Stewart was charged with being a felon in possession of a firearm. The indictment alleges that he had a Glock model 23 handgun, a Smith and Wesson SD9 handgun and ammunition on Nov. 17, 2016, despite a 2002 conviction for involuntary manslaughter in the Franklin County Court of Common Pleas.
Cousins was charged with being a felon in possession of a firearm. The indictment alleges that he had a Windham Weaponry AR-15 and Mossberg 12-gauge shotgun despite 2006 convictions for possession of cocaine and carrying a concealed weapon in the Summit County Court of Common Pleas.
The indictment seeks to forfeit the aforementioned firearms and ammunition, as well as Bullet Safe body armor and $10,904 in cash.
This case is being prosecuted by Assistant U.S. Attorney Aaron P. Howell following an investigation by the US Marshals Fugitive Task Force, the Canton Police Department, the FBI’s Canton office and the Drug Enforcement Administration’s Akron office.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two Texas Men Plead Guilty to KidnappingRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that KALVIN KYLE MCCOWN, age 43, of Longview, Texas, and TRAVIS LEE HILL, age 27, of Ore City, Texas, pled guilty to KIDNAPPING, in violation of Title 18, United States Code, Sections 1201(a)(1), punishable by any term of years up to life imprisonment, and up to a $250,000.00 fine or both.
The Superseding Indictment alleged that on or about July 13, 2011, in the Eastern District of Oklahoma and elsewhere, the defendants, and others known and unknown to the Grand Jury, aiding and abetting each other, did unlawfully and willfully seize, confine, kidnap, abduct, carry away and hold for the purpose of punishment and retribution, and, in committing or in furtherance of the commission of the offense, did willfully transport Kenneth Earl Ayres in interstate commerce from Texas to Oklahoma, regardless of whether he was alive when transported, and in committing this offense, did cause the death of Kenneth Earl Ayres.
The charges arose from a joint investigation by the Homeland Security Investigations Operation Community Shield Gang Task Force, Oklahoma State Bureau of Investigation, Longview Police Department, Texas Department of Public Safety, Carrollton Texas Police Department, McCurtain County Sheriff’s Office, Panola County Texas Sheriff’s Office, United States Bureau of Prisons, and the Texas Rangers.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendants will remain in custody pending a sentencing hearing.
Assistant United States Attorney Rob Wallace, and Assistant United States Attorney Kristin Harrington represented the United States.
Two New York Salesmen Sentenced to Prison for Fraudulently Selling Vending Machine BusinessesRead the Press Release
A federal judge sentenced two Long Island, New York, sales representatives to prison for fraudulently selling vending machine businesses, the Justice Department announced today. The defendants worked at Multivend, LLC, d/b/a/ Vendstar, based in Deer Park, New York. Before closing in July 2010, Vendstar made approximately $10 to $12 million in sales per year.
The sentences were imposed this week by U.S. District Court Judge Joan M. Azrack of the Eastern District of New York.
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Scott M. Doumas, 44, of Setauket-East Setau, New York, was sentenced to serve four years in prison and ordered to pay $290,664 in restitution. Doumas worked as a sales representative and sales manager at Vendstar from 1999 to 2009. Doumas was found guilty of mail fraud and conspiracy after a six-week jury trial in 2015.
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Paul E. Raia, 65, of Brookhaven, New York, was sentenced to serve three years in prison and ordered to pay $339,354 in restitution. Raia was a salesman at Vendstar from 2006 to 2010. Raia was found guilty at trial of wire fraud and conspiracy.
The Vendstar investigation began in 2010 and resulted in criminal charges filed against 22 individuals in 2012 and 2013. All 22 of those defendants were convicted, and 18 of them have now been sentenced.
“The Department of Justice will work relentlessly to bring fraudsters to justice and to secure restitution for their victims,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The prison sentences imposed this week are the result of more than six years of hard work, and demonstrate the Department’s commitment to investigating, prosecuting, and punishing those who lie to steal other people’s money without remorse.”
Four additional defendants convicted of fraud in connection with Vendstar are awaiting sentencing.
Vendstar sold business opportunities for plastic bulk vending machines that, for 25 cents, dispensed loose candy and nuts. Vendstar advertised nationwide in newspapers and on the Internet. Vendstar promised to provide everything its customers would need to be successful, including the machines, candy, assistance in finding profitable locations, and ongoing customer support. The sales representatives – with the knowledge and approval of Vendstar’s managers – misrepresented the business opportunity’s likely profits, the amount of money that Vendstar’s prior customers were earning, how quickly customers were likely to recover their investment, the quality of locations that were available for the vending machines, and the level of location assistance that customers would receive from locating companies recommended by Vendstar. Vendstar referred customers to locating companies that did not find profitable locations and regularly changed their names to stay ahead of constant complaints. Vendstar sales representatives also falsely claimed to operate their own profitable vending routes, according to evidence introduced during the trial.
Principal Deputy Assistant Attorney General Mizer commended the U.S. Postal Inspection Service for its thorough investigation. The case was prosecuted by Senior Litigation Counsel Patrick Jasperse and Alan Phelps of the Civil Division’s Consumer Protection Branch. During the last 10 years, approximately 170 individuals have been convicted of fraudulently selling business opportunities in cases prosecuted by the Consumer Protection Branch.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
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Sterling Man Sentenced for Smuggling Weapons to BoliviaRead the Press Release
ALEXANDRIA, Va. – Joan Manuel Ramirez Lema, 41, of Sterling, was sentenced today to 20 months in prison for charges related to smuggling guns from the United States to Bolivia.
Ramirez Lema pleaded guilty on Sept. 22. According to court documents, from Jan. 2010 to Aug. 2015, Ramirez Lema smuggled 115 firearms from the United States to Bolivia. Ramirez Lema, a U.S. citizen, shipped used vehicles with multiple firearms hidden in door panels. In a statement to federal agents, Ramirez Lema said he shipped merchandise and cars to Bolivia via freight forwarding companies in Baltimore, Maryland and Newark, New Jersey. He stated that he usually purchased between two and three guns a month and bought most of the guns in Leesburg and Sterling.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington; and Michael Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Washington Field Division, made the announcement after the plea was accepted by U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorney Ronald L. Walutes, Jr. 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-206.
St. Francis Man and Rosebud Woman Charged with KidnappingRead the Press Release
United States Attorney Randolph J. Seiler announced that a St. Francis, South Dakota, man and a Rosebud, South Dakota, woman have been indicted by a federal grand jury for Kidnapping.
Benjamin Young, age 35, and Stefanie Long, age 27, were indicted on December 13, 2016. Both have appeared before U.S. Magistrate Judge Mark A. Moreno and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about September 10, 2016, Young and Long kidnapped and held a woman near St. Francis, for the purpose of assaulting her.
The charge is merely an accusation and Young and Long are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Long was released on bond, and Young was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been scheduled for March 7, 2017.
Seven Time Drug Felon sentenced to 21 Years in Federal Prison for Illegally Possessing a FirearmRead the Press Release
ATLANTA - Quinton Jackson, a/k/a Quinton Smith, a/k/a Jaquavious Dixon, has been sentenced to 21 years and 10 months’ imprisonment for possessing a firearm after having been convicted of six prior drug felony offenses. Because of his extensive prior criminal record, Jackson was sentenced as an Armed Career Criminal under federal law.
“Jackson reached for a firearm when stopped for routine traffic violation, and fortunately APD officers quickly subdued him and resolved the situation without injury to anyone involved,” said U.S. Attorney John Horn. “Unlawfully possessed weapons are a serious threat to the safety and security of our communities, especially in the hands of dangerous criminals.”
“This sentence is another reminder that ATF and our law enforcement partners will hold individuals accountable for any criminal behavior, especially that which threatens the safety of innocent civilians,” said ATF Assistant Special Agent in Charge John Schmidt.
“For Atlanta to be a safe city, we must continue to get repeat offenders off our streets,” said Atlanta Police Chief Erika Shields. “A routine traffic stop was the key to holding Mr. Jackson accountable for his various crimes. Our relationships with our law enforcement partners allow us to remove not only weapons but serious criminals from the City of Atlanta.”
According to U.S. Attorney Horn, the charges and other information presented in court: On August 22, 2014, Jackson was traveling through the Boulevard Corridor in Atlanta’s Old Fourth Ward neighborhood. Atlanta police officers patrolling the area stopped Jackson’s vehicle for a traffic violation. While approaching the vehicle, an officer noticed Jackson reaching under the driver’s seat. Police then ordered Jackson to stop reaching and open the driver’s window so that an officer could speak with Jackson. After Jackson refused, officers removed Jackson from his vehicle and seized a firearm from underneath the driver’s seat where Jackson had been reaching. Heroin, crack cocaine, and methamphetamine also were discovered in a bag concealed within the console.
Law enforcement later questioned Jackson who admitted that he sold drugs, notwithstanding his six previous felony drug convictions. Jackson also admitted that he had been reaching under the seat for the firearm because he did not want to return to prison, suggesting to the officers that Jackson would have resorted to violence to escape the law. Later investigation revealed that during a traffic stop earlier that summer Jackson had dragged another Atlanta police officer down the road when that officer’s arm became trapped in Jackson’s vehicle as Jackson fled the traffic stop.
Because five of Jackson’s drug convictions constituted “serious drug offenses” under federal law, Jackson qualified as an Armed Career Criminal subject to an enhanced sentence.
Quinton Jackson, a/k/a Quinton Smith, a/k/a Jaquavious Dixon, 36, of Atlanta, Georgia, was sentenced to 21 years, 10 months in prison to be followed by five years of supervised release. Jackson had been found guilty by a jury on July 13, 2016.
This case was investigated by the federal Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Atlanta Police Department.
Assistant United States Attorney Ryan M Christian prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Seattle Man Sentenced for Threatening Congressman over Democratic Primary ElectionRead the Press Release
A 28-year-old Seattle man was sentenced to two months in prison and three years of supervised release including six months of home confinement and 240 hours of community service for threatening former Congressman Jim McDermott, announced U.S. Attorney Annette L. Hayes. JASPER KILMER HILLMAN BELL made multiple phone calls to the staff of Congressman Jim McDermott in mid-April 2016, and in one call threatened to cut out the congressman’s tongue. Later he went to the Congressman’s Seattle office demanding to be let in. BELL expressed outrage over how delegates were being allocated between the two Democratic candidates for President and the role of Congressman McDermott as a ‘Super Delegate.’ U.S. District Judge Robert S. Lasnik said BELL’s actions were “Just so wrong on so many levels… This was somebody who knew better… The reaction (of law enforcement) was proportionate to the threat.”
According to records in the case, in mid-April 2016, protestors went to Congressman McDermott’s office unhappy about his support for a particular Democratic presidential candidate as a ‘Super Delegate.’ BELL had written to the Congressman three times about the Super Delegate controversy, and had called the office on multiple occasions. On April 22, 2016, BELL called the Congressman’s office in Seattle seventeen times, and his Washington DC office an additional six times in one fifty-minute period. In the calls BELL expressed his outrage that protestors had been arrested at the Congressman’s office. Speaking with staffers BELL demanded to know the Congressman’s home address and said he would “track him down and cut his (expletive) tongue out.” BELL told one staffer he would find Congressman McDermott’s home address and “…he would not be safe.” Following the angry phone calls BELL went to the Congressman’s office and pounded on the locked exterior doors demanding to be admitted to the offices. Seattle Police arrested BELL later that evening.
Telling BELL that Congressman McDermott deserved BELL’s “admiration and respect,” Judge Lasnik ordered BELL to do 240 hours of community service working with AIDS patients and the poor – two groups Congressman McDermott worked to assist during his career. Judge Lasnik then ordered BELL to research and produce two reports for the court – one on McDermott’s long career and another on Jack Hammann’s book ‘On American Soil.’ The book investigates how African-American soldiers were wrongly convicted of manslaughter at what was then Fort Lawton in Seattle. Congressman McDermott was instrumental in getting the Army to reopen the investigation, reverse the wrongful convictions and restore the honorable service record of the soldiers. Judge Lasnik said he plans to schedule a hearing after receiving the reports to ensure BELL has used his time on supervision as a learning experience.
The case was investigated by the Seattle Police Department, U.S. Capitol Police and the FBI. The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
San Antonio Man Sentenced to Federal Prison for Embezzling from InvestorsRead the Press Release
In San Antonio this afternoon, 28-year-old William Brandon Cate was sentenced to 51 months in federal prison for defrauded approximately 15 investors out of more than $280,000 announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher B. Combs, San Antonio Division.
In addition to the prison term, Senior United States District Judge David A. Ezra ordered that Cate pay restitution totaling $253,869.84 and be placed on supervised release for a period of three years after completing his prison term.
On September 29, 2016, Cate pleaded guilty to one count of wire fraud. By pleading guilty, Cate admitted that in January 2012, he and others created and managed CT Trading, LLC. Through a series of wire transfers in 2013 and 2014, Cate embezzled investors’ funds to pay for personal expenses. While managing the investments, Cate also experienced substantial trading losses. During the scheme, Cate created fraudulent account summaries for investors which showed inflated revenue.
This investigation was conducted by agents with the Federal Bureau of Investigation together with the Texas Department of Public Safety. Assistant United States Attorney Greg Surovic prosecuted this case on behalf of the Government.
San Antonio Man Sentenced to Federal Prison for Aiming Laser Pointer at Local News HelicopterRead the Press Release
In San Antonio this afternoon, a federal judge sentenced 25-year-old Christopher B. Evans to eight months in federal prison followed by three years of supervised release for pointing a laser in the flight path of a helicopter announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher B. Combs, San Antonio Division.
Senior United States District Judge David A. Ezra also ordered that Evans surrender to federal authorities on or before February 27, 2017, to begin serving his prison term.
On September 13, 2016, Evans pleaded guilty to one count of aiming a laser pointer at an aircraft in flight. By pleading guilty, Evans admitted that on October 27, 2015, he aimed the beam of a laser pointer at a local television news helicopter as it was flying north of the San Antonio International Airport.
According to the FBI, in 2015, San Antonio ranked among the top 15 cities in the nation for laser strikes, with almost 100 reported. Laser strikes can blind pilots of airborne aircraft, jeopardizing the lives of persons aboard.
If you have information about a lasing incident, contact the San Antonio FBI at 210-225-6741. If you see someone pointing a laser at an aircraft, call the nearest local law enforcement agency immediately by dialing 911. Tips can also be submitted online at https://tips.fbi.gov.
This investigation was conducted by agents with the Federal Bureau of Investigation together with the San Antonio Police Department. Assistant United States Attorney Michael R. Hardy prosecuted this case on behalf of the Government.
Sacramento Man Sentenced to over 7 Years in Prison for Distribution of Child PornographyRead the Press Release
SACRAMENTO, Calif. — John K. Cabrera, 35, of Sacramento, was sentenced today by United States District Judge Garland E. Burrell Jr. to over seven years in prison for distribution of child pornography, United States Attorney Phillip A. Talbert announced.
According to court documents, between April 24, 2014, and April 27, 2014, Cabrera used the internet to transmit images of prepubescent children engaged in sexually explicit conduct with another person.
This case was the product of an investigation by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorney Rosanne Rust prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Sacramento Man Sentenced to over 7 YearsRead the Press Release
SACRAMENTO, Calif. — John K. Cabrera, 35, of Sacramento, was sentenced today by United States District Judge Garland E. Burrell, Jr. to over 7 years in prison for distribution of child pornography, United States Attorney Phillip A. Talbert announced.
According to court documents, on or about April 24, 2014, and continuing through on or about April 27, 2014, Cabrera used the Internet to transmit images of prepubescent children engaged in sexually explicit conduct with another person.
This case was investigated by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorney Rosanne Rust prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
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Rose Hill Man Pleads Guilty to Federal Identity Theft ChargeRead the Press Release
WICHITA, KAN. B A Rose Hill man pleaded guilty Friday to a federal identity theft charge, U.S. Attorney Tom Beall said.
Justin Alan Vanley, Rose Hill, Kan., pleaded guilty to one count of aggravated identity theft. In his plea, he admitted a co-defendant gave him a U.S. Postal Service roster with personal information for two postal service employees. Vanley used the identity of one of the postal workers to apply for a Chase Marriott credit card with a $32,000 credit limit. He waited for the card to arrive in the mail and intercepted the card before it reached the victim.
Vanley was one of 13 people charged in an indictment returned in May alleging they were part of a $3.5 million identity theft scheme.
Sentencing is set for March 24. Vanley faces a penalty of two years in federal prison and a fine up to $250,000.
Beall commended the U.S. Postal Inspection Service, the Sedgwick County Sheriff’s Department, the Wichita Police Department, the Bureau of Alcohol, Tobacco, Firearms and Assistant U.S. Attorney Alan Metzger for their work on the case.
Owner of Utah-Based Pharmaceutical Distributer Pleads Guilty to $100 Million Health Care Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that RANDY CROWELL, a/k/a “Roger,” pled guilty today before United States District Judge Edgardo Ramos to fraudulently distributing more than $100 million worth of prescription drugs obtained on a nationwide black market. CROWELL used a Utah-based wholesale distribution company to sell illicitly procured drugs to pharmacies, which in turn dispensed them to unsuspecting customers. As part of his guilty plea, CROWELL agreed to forfeit more than $13 million in personal profits from the scheme.
Manhattan U.S. Attorney Preet Bharara said: “Randy Crowell perverted for profit a health care system designed to get safe and effective medications to patients who need them. He exposed people with life-threatening illnesses to medicines they had no idea had been diverted from the normal stream of commerce, all the while defrauding healthcare companies and government benefit programs like Medicaid. Crowell has now pled guilty to a federal crime and has agreed to forfeit more than $13 million he made from his criminal scheme.”
According to the allegations contained in the Indictment and other documents filed in the case, as well as statements made during the plea proceedings:
From early 2010 until at least July 2012, CROWELL, who was the owner and operator of a licensed wholesale distributor of prescription medications based in St. George, Utah (“Wholesaler-1”), participated in a sophisticated scheme to defraud health insurance companies and government programs such as Medicaid out of hundreds of millions of dollars by trafficking prescriptions through a nationwide black market. CROWELL, through Wholesaler-1, purchased more than $100 million worth of prescription medications from this black market at a fraction of the legitimate prices for these drugs, before selling the same as new, legitimate bottles of medication to pharmacies all over the country.
To maximize their profits, CROWELL and his co-conspirators focused on some of the most expensive medications on the market, including those used to treat HIV/AIDS. The profitable scheme was potentially dangerous to the tens of thousands of patients ultimately receiving and taking these prescription drugs. As detailed below, many of the bottles purchased through the underground market and then distributed as safe, legitimate medications by CROWELL and Wholesaler-1 had in fact been previously dispensed to others, including individuals based in the Southern District of New York. To conceal the fact that they had been previously dispensed, the bottles were typically “cleaned” with hazardous chemicals such as lighter fluid before being transported and stored in conditions that were frequently insanitary and insufficient to ensure the safety and efficacy of the medication.
THE SCHEME TO DEFRAUD
The fraudulent scheme charged in the Indictment operated by distorting the legitimate flow of medications from manufacturer to pharmacy. Rather than purchasing medications from manufacturers or legitimate authorized distributors at full price, scheme participants, including CROWELL, created and exploited an underground market for these same prescription drugs. Scheme participants targeted the cheapest possible source of supply for these drugs – Medicaid patients and other individuals who received these prescription drugs on a monthly basis for little or no cost, and who were then willing to sell their medicines rather than taking them as prescribed (the “Insurance Beneficiaries”).
Insurance Beneficiaries had prescriptions filled for medications each month at pharmacies across the country, including in Manhattan and the Bronx, and then sold their medications to low-level participants (“Collectors”) in the scheme who worked on street corners and bodegas and would pay cash – typically as little as $40 or $50 per bottle. Every major health care benefit program, including Medicaid, expressly prohibits a beneficiary from seeking care under such circumstances, and health care benefit programs would not have paid for the medications issued by pharmacies to the Insurance Beneficiaries had these health care benefit programs known that the Insurance Beneficiaries were selling their drugs to others, rather than taking them as prescribed.
Because the ultimate goal of the scheme was to resell these medications as new at full price, Collectors and other scheme participants used lighter fluid and other potentially hazardous chemicals to remove the patient labels affixed when the bottles were initially dispensed to the Insurance Beneficiaries. This process, referred to as “cleaning” the bottles, was dangerous, as these hazardous chemicals could infiltrate the bottles, rendering the medication unfit for human consumption.
Collectors then sold these second-hand drugs to higher-level scheme participants (“Aggregators”) who bought dozens, and sometimes hundreds, of bottles at a time from multiple collectors before selling them to higher-level scheme participants with direct access to legitimate distribution channels, including corrupt wholesale companies like Wholesaler-1. The corrupt wholesale companies, including Wholesaler-1, then resold the bottles as new, at full price, to pharmacies, including potentially the very same pharmacies that initially dispensed these medications. In so doing, and as described below, CROWELL and other corrupt wholesale companies intentionally misrepresented where these medications were coming from and, in particular, concealed the fact that these prescription drugs had been obtained from an illegal and illegitimate black market.
CROWELL AND WHOLESALER-1
Central to the scheme’s success was the participation of corrupt, licensed wholesale distributors willing to buy the “second-hand” medications at a fraction of their legitimate price and then resell them as new to pharmacies that would in turn dispense these medications to unsuspecting patients. CROWELL and Wholesaler-1 were among the largest of these corrupt wholesalers.
Between 2010, when Wholesaler-1 was created by CROWELL, and July 2012, Wholesaler-1 had no legitimate sources of supply. Instead, CROWELL caused Wholesaler-1 to purchase exclusively from illegitimate sources – including the so-called “Aggregators” – who sold to CROWELL at substantially reduced rates, sometimes as much as 50 percent less than the price of acquiring these medications from legitimate sources. Consistent with their illegitimate origins, inbound shipments of prescription drugs frequently arrived at Wholesaler-1 improperly packaged in unsealed, unsecure cardboard boxes. On some occasions, bottles of medication arrived at Wholesaler-1 with the initial patient labels still affixed to them. On other occasions, bottles arrived having already been opened, or containing what appeared to be the wrong medication. At the direction of CROWELL, employees of Wholesaler-1 then inventoried these bottles, attempted to remove any bottles that still had patient labels affixed to them or were otherwise visibly used or damaged, and then arranged for the medications to be shipped out to Wholesaler-1’s customers – i.e., pharmacies all over the country, including pharmacies in Manhattan and the Bronx.
To effectuate the scheme – and, in particular, to convince pharmacies to buy these medications, and health care benefit programs to pay for them, CROWELL and others made false and fraudulent representations about the origins of these medications. Specifically, CROWELL and others acting at his direction created false and fraudulent documents known as “pedigrees” for these medications, which purported to document the legitimate movement of these medications bought and sold by Wholesaler-1 from a manufacturer to the pharmacy. In truth, none of the medications purchased or distributed by Wholesaler-1 had come from legitimate sources of supply, and the pedigrees created by Wholesaler-1 and signed by CROWELL were intentionally fabricated so that the medications could be sold, as new, to pharmacies and so that health care benefit programs would be duped into paying for these illegitimate second-hand drugs.
In order to evade detection, CROWELL took additional steps to conceal the unlawful nature of his activities, including using the name “Roger,” frequently changing or “dropping” the phones he used to communicate with co-conspirators, and paying co-conspirators through front or “sham” companies.
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CROWELL pled guilty to one count of conspiracy to commit health care fraud, which carries a maximum term of 10 years in prison. As a part of the plea, CROWELL also consented to the forfeiture of more than $13 million in scheme proceeds, including the full contents of Wholesaler-1’s primary operating account. CROWELL will be sentenced by Judge Ramos on May 11, 2017, at 12:30.
Mr. Bharara praised the investigative work of the New York FBI’s Health Care Fraud Task Force, which comprises agents, officers, and investigators from the Federal Bureau of Investigation, the New York City Police Department, the New York State Insurance Fraud Bureau, U.S. Department of Labor, U.S. Office of Personnel Management’s Inspector General, U.S. Food and Drug Administration, U.S. Health and Human Services Office of Inspector General, New York State Office of Medicaid Inspector General, New York Health and Hospitals Corporation Inspector General, and the National Insurance Crime Bureau.
The prosecution of this case is being overseen by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorneys Edward B. Diskant and Matthew Podolsky are in charge of the prosecution.
Orangevale Man Sentenced to 15 Years in Prison for Receipt and Distribution of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Theodore Allen Leleaux, 34, of Orangevale, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 15 years in prison for distribution of child pornography with a prior conviction relating to the sexual abuse of a minor, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in December 2013, agents in Maine and Wyoming investigating distribution of child pornography received unsolicited emails from Leleaux seeking to trade child pornography with accounts that the agents had taken over. On February 2014, a search warrant was executed at Leleaux’s residence. On his cellphone, agents found at least 5,000 images and 400 videos of child pornography. At the time he sent the emails, Leleaux had been convicted in the Superior Court of Contra Costa County of having unlawful sex with a minor who was more than three years younger than him.
“While the internet has positively transformed the lives of millions, some have chosen to use it as a tool to prey on innocent victims,” said Ryan L. Spradlin, Special Agent in Charge of HSI San Francisco. “This sentence reflects the seriousness of the crimes of the defendant who repeatedly disregarded the law while causing long-lasting damage to his young victims.”
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Matthew G. Morris prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
North Carolina Man Pleads Guilty to Hacking Conspiracy That Targeted Senior U.S. Government OfficialsRead the Press Release
ALEXANDRIA, Va. – Justin G. Liverman, 24, of Morehead City, North Carolina, pleaded guilty today for his role in a harassment scheme that targeted senior U.S. government officials. Liverman’s plea admits guilt to a conspiracy to commit unauthorized computer intrusions, identity theft, and telephone harassment.
According to the statement of facts filed with the plea agreement, beginning in November 2015, Liverman conspired to attempt to intimidate and harass U.S. officials and their families by gaining unauthorized access to victims’ online accounts, among other things. For example, Liverman publicly posted online documents and personal information unlawfully obtained from a victim’s personal account; sent threatening text messages to the same victim’s cellphone; and paid an unlawful “phonebombing” service to call the victim repeatedly with a threatening message. In November 2015, the conspiracy used that victim's government credentials to gain unlawful access to a confidential federal law enforcement database, where Liverman obtained information relating to dozens of law enforcement officers and uploaded this information to a public website.
Liverman faces a maximum penalty of five years in prison when sentenced on May 12. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. Co-defendant Andrew Otto Boggs, also from North Carolina, is expected to enter a plea of guilty for his role in the conspiracy on January 10.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Brian J. Ebert, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Gerald Bruce Lee. The case is being prosecuted by Assistant U.S. Attorneys Maya D. Song and Jay V. Prabhu, and Special Assistant U.S. Attorney Joseph V. Longobardo. The U.S. Attorney’s Offices for the Eastern and Western Districts of North Carolina, and the FBI’s Charlotte Division provided significant assistance with the investigation.
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-313.
New York Woman Sentenced to Prison for Two Armed Bank RobberiesRead the Press Release
SCRANTON -The United States Attorney=s Office for the Middle District of Pennsylvania announced that Dorian Whitehead, age 31, of Binghamton, New York, was sentenced on January 5, 2017, by United States District Court Judge James M. Munley, to 51 months’ imprisonment for aiding and abetting two armed bank robberies. Judge Munley also ordered Whitehead to pay $169,099 in restitution.
According to United States Attorney Bruce D. Brandler, Whitehead pleaded guilty on March 30, 2016, to aiding and abetting co-defendants Jule Futrell, age 44, of Endicott, New York, Jemel Laquan King, age 40, and Jeremy West, age 41, both of Binghamton, New York, in committing the following armed bank robberies:
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First National Community Bank (FNCB), Jenkins Township, Pennsylvania, on March 13, 2014; and
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NBT Bank, Keyser Avenue, Scranton, Pennsylvania, on November 26, 2014.
Whitehead aided and abetted West and Futrell in the commission of the FNCB robbery and Futrell and King in the commission of the NBT Bank robbery. Whitehead’s role in both bank robberies was the monitoring of police channels via a cell phone application while she remained in her home in New York. She maintained voice contact with Futrell, present inside of both banks, by using a second cell phone and an ear piece worn by Futrell during the commission of the robberies. Whitehead’s job was to alert codefendants of alarms or police notifications during the progress of the robberies to enable them to flee the scene.
The defendants stole approximately $57,469 in cash from FNCB, and approximately $111,630 in cash from NBT bank.
West was sentenced to serve 126 months’ imprisonment on charges of armed bank robbery, a pharmacy robbery, and use of a firearm in furtherance of a violent crime. West previously pleaded guilty to committing the armed bank robbery of FNCB and the April 18, 2014, armed robbery of the CVS Pharmacy located in Stroudsburg, Pennsylvania.
King was convicted for his crimes by a federal jury on April 8, 2016, and was sentenced on July 26, 2016, to 157 months’ imprisonment. Futrell pleaded guilty to conspiracy, armed bank robbery, robbery of a pharmacy, and use of a firearm in furtherance of a crime of violence and is scheduled to be sentenced on March 7, 2017.
The case was investigated by the Federal Bureau of Investigation - Scranton and Binghamton offices. Assistant United States Attorney Michelle Olshefski prosecuted the case.
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New York Man Pleads Guilty to Drug Trafficking Conspiracy and Firearms ChargesRead the Press Release
Contact: Daniel J. Perry
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Malcolm Cowart, a/k/a “Prince”, 37, of Harlem, New York, pleaded guilty today in U.S. District Court to conspiracy to possess with intent to distribute a kilogram or more of heroin, cocaine base, and oxycodone and to discharging a firearm during and in furtherance of that drug trafficking conspiracy.
According to court records, from about November 2011 until March 2014, Cowart conspired with others to distribute heroin, cocaine base, and oxycodone in Portland. The drugs were brought from the New York area by managers of the drug conspiracy. The managers stayed with Portland residents who were paid drugs and money for allowing the conspirators to use their apartments to distribute drugs. Managers dispatched runners to distribute the drugs throughout the Portland area.In March 2013, Cowart had a falling out with Wayman Sparrow that led to the two of them engaging in a shootout inside the Lafayette Arms Apartments in Portland. In March 2014, agents with the U.S. Drug Enforcement Administration (“DEA”) and the Maine Drug Enforcement Agency (“MDEA”) searched an apartment in Portland, encountered a manager fleeing out the back door, and seized about $25,000 in drug proceeds from him. Later that day, agents apprehended another manager traveling by bus from New York and seized about 400 grams of heroin from her.
Cowart faces between 20 and 25 years in prison, up to five years of supervised release and a $10,000,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
This is the ninth federal conviction arising from this investigation; numerous state convictions of other individuals have also arisen from this investigation.
This joint investigation was conducted by the DEA, the MDEA and the Portland Police Department, with valuable assistance provided by Maine State Police Crime Laboratory and the Cumberland County District Attorney’s Office.
Neopit Man Indicted for Drug Trafficking and Firearm Offenses on Menominee Indian ReservationRead the Press Release
Gregory J. Haanstad, United States Attorney, announced that on January 4, 2017, a federal grand jury returned a three-count indictment against a man involved in drug trafficking on the Menominee Indian Reservation. The indictment named Joseph Komanekin, Jr. (age: 33) of Neopit. Count One of the indictment charged Komanekin with Possession with Intent to Distribute a Schedule I Controlled Substance in violation of 21 United States code, Section 841. Count Two charged Komanekin with Possession of a Firearm in Furtherance of a Drug Trafficking Offense in violation of 18 United States Code, Section 924(c). Count Three charged Komanekin with Possession of a Short-Barreled Shotgun in violation of 26 United States Code, Section 5861(d). On Count One Komanekin faces a maximum sentence of up to 20 years’ imprisonment, up to a $1,000,000 fine, and between 3 years and a lifetime of Supervised Release. On Count Two Komanekin faces a mandatory 10-year consecutive sentence and up to life in prison, up to a $250,000 fine and up to 5 years of Supervised Release. On Count Three Komanekin faces a maximum sentence of up to 10 years’ imprisonment, up to a $10,000 fine and up to 3 years of Supervised Release.
According to the indictment, the defendant possessed just under 40 grams of a substance containing a Schedule I analogue called AB-FUB, which is a synthetic cannabinoid known locally as “Ish.” The synthetic drugs were discovered along with shotgun ammunition and a short-barreled shotgun during the February 6, 2016 execution of a search warrant at Komanekin’s residence.
The case was investigated by the Menominee Tribal Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Andrew J. Maier.
An indictment is only a charge and not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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For additional information contact:
Acting Public Information Officer Elizabeth Makowski at 414 297-1700
More Than Fifty Pounds of Methamphetamine Seized During Four Drug Interdiction InvestigationsRead the Press Release
ALBUQUERQUE – Seven defendants are facing federal methamphetamine trafficking charges in four cases involving seizures last week of more than 52 pounds of methamphetamine. Three of the cases are the result of interdiction investigations at the Greyhound Bus Station and Amtrak Train Station in Albuquerque, N.M. The fourth case arose out of a traffic stop on Interstate 40 in Bernalillo County, N.M.
Four men were arrested on Dec. 28, 2016, and charged with methamphetamine trafficking offenses after the DEA and New Mexico State Police (NMSP) seized a total of 10.75 kilograms (23.7 pounds) of methamphetamine during two interdiction investigations at the Greyhound Bus Station. The methamphetamine was allegedly concealed in various bundles inside luggage and a locked safe. Alvan Raylon Tillman, 26, of Phoenix, Ariz., is charged with possession of more than two pounds of methamphetamine in one case, while Lewayne Deray Jennings, 28, of Dayton, Ohio, Jerell Leveine Whitman-Crutcher II, 29, of Warren, Mich., and Marcus Bernard Harris, Jr., 21, of Southfield, Mich., are jointly charged with possession of more than 21 pounds of methamphetamine in a separate case.
Also on Dec. 28, 2016, Mario Sanchez-Ceja, 27, was arrested and charged with possessing approximately 8.28 kilograms (18.25 pounds) of methamphetamine in Bernalillo County. According to the criminal complaint, Sanchez-Ceja was arrested after law enforcement agents allegedly seized the methamphetamine from Sanchez-Ceja’s vehicle following a routine traffic stop on Interstate 40.
On Dec. 30, 2016, April Luna-Contreras, 21, and Esthela Contreras-Luna, 44, both of San Diego, Calif., were arrested on methamphetamine trafficking charges after the DEA and NMSP seized approximately 4.75 kilograms (10.47 pounds) of methamphetamine from them during an interdiction investigation at the Amtrak Train Station in Albuquerque. The methamphetamine was allegedly contained in bundles concealed under Luna-Contreras and Contreras-Luna’s clothes.
If convicted, each of the seven defendants faces a statutory mandatory minimum of ten years to a maximum of life imprisonment.
The cases against Tillman, Jennings, Whitman-Crutcher and Harris were investigated by the Albuquerque office of the DEA and the NMSP and are being prosecuted by Assistant U.S. Attorney Kimberly A. Brawley. The case against Sanchez-Ceja was investigated by the Albuquerque office of Homeland Security Investigations and the NMSP and is being prosecuted by Assistant U.S. Attorney Paul H. Spiers, and the case against Luna-Contreras and Contreras-Luna was investigated by the Albuquerque office of the DEA and NMSP and is being prosecuted by Assistant U.S. Attorney Rumaldo R. Armijo.
Mission Woman Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, woman has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Heather DuBray, age 45, was indicted on December 13, 2016. She appeared before U.S. Magistrate Judge Mark A. Moreno on January 6, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about November 7, 2016, DuBray did forcibly assault, resist, oppose, impede, intimidate, and interfere with two corrections officers from the Rosebud Sioux Tribe while they were engaged in the performance of their official duties.
The charge is merely an accusation and DuBray is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
DuBray was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mescalero Apache Woman Sentenced for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Corinne Delphine Kinzhuma, 31, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to 30 months in prison followed by three years of supervised release for her conviction on federal assault charges.
Kinzhuma was arrested on Feb. 26, 2015, on a criminal complaint charging her with assaulting a Mescalero Apache man on Dec. 12, 2014, by stabbing him repeatedly in neck, chest, arm and cheek. The assault occurred on the Mescalero Apache Indian Reservation in Otero County, N.M. As a result of the assault, the victim required a chest tube and admission to the surgical intensive care unit for continuous monitoring of his neck wound; he also suffered a fracture of the left radius.
Kinzhuma was subsequently indicted on June 17, 2015, and charged with assault with a dangerous weapon, a knife, with intent to do bodily harm and assault resulting in serious bodily injury on Dec. 12, 2014, in Indian Country in Otero County. On March 9, 2016, Kinzhuma entered a guilty plea to the indictment without the benefit of a plea agreement.
This case was investigated by the Las Cruces office of the FBI and the Mescalero Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
Marrero Men Indicted on Firearms and Drug ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that HECTOR MATA, JR., age 30, and FERNANDO ORDONEZ, age 38, both of Marrero, were indicted today for charges of conspiracy to distribute cocaine, heroin, and marijuana, possessing of a firearm during a drug trafficking crime, and other offenses.
According to the Indictment, on December 15, 2016, MATA JR. and ORDONEZ conspired to possess 500 grams or more of cocaine, 100 grams or more of heroin, and a quantity of marijuana, along with other drug offenses. MATA JR. and ORDONEZ are also each charged with possessing two firearms during a drug trafficking crime: a .38 caliber Smith and Wesson revolver and a .223 caliber Olympic Arms model MFR assault rifle. MATA JR. is separately charged with possessing an additional firearm during a drug trafficking crime: a .40 caliber Smith and Wesson handgun.
In connection with their possession of firearms, MATA JR. is also charged with being a felon in possession of a firearm, and ORDONEZ is charged with being an illegal alien in possession of a firearm. Finally, MATA JR. is charged with obstruction of justice for attempting to bribe a Detective from the Jefferson Parish Sheriff’s Office.
If convicted on the drug conspiracy, MATA JR. and ORDONEZ are facing a minimum of 5 years to a maximum of 40 years imprisonment. On the weapons charge, each defendant is facing a minimum of 5 years to a maximum of life imprisonment. Additionally, MATA JR. faces up to 20 years for the obstruction of justice charge.
U.S. Attorney Polite reiterated that the Indictment is merely an allegation and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the U.S. Homeland Security Investigations and the Jefferson Parish Sheriff’s Office in investigating this case. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
Man from Many sentenced to 30 months in prison for firearm chargeRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a man from Many was sentenced to 30 months in prison for illegally possessing a shotgun.
John Michael Murphy, 30, Many, La., was sentenced by U.S. District Judge Elizabeth E. Foote on one count of possession of a firearm and ammunition by a convicted felon. He was also sentenced to three years of supervised release. According to the September 14, 2016 guilty plea, Many police initiated a traffic stop on a vehicle Murphy was riding in on January 9, 2016. Once the police activated their patrol car’s overhead lights, a shotgun was thrown from the vehicle. When the vehicle came to a stop, Murphy exited and fled into a wooded area. Police retrieved the firearm, which was determined to be a 12-gauge shotgun loaded with ammunition. The defendant was later arrested at his residence in Many.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to promote firearm safety and to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm.
The ATF, Many Police Department and Zwolle Police Department conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Maine Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A Westbrook, Maine, man was sentenced yesterday in U.S. District Court in Springfield for failing to register as a sex offender.
Phillip Jordan, 51, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 25 months in prison and five years of supervised release. In October 2016, Jordan pleaded guilty to one count of failure to register as a sex offender.
Jordan was convicted in 1984 of rape with a knife, gross sexual misconduct, and kidnapping in York County Superior Court in Maine. He was sentenced to 17 years in prison and required to register as a sex offender for the rest of his life. In August 2015, Jordan traveled from Maine to Springfield, Mass., and remained in the Springfield area until October 2015. Jordan failed to register as a sex offender in Massachusetts despite knowing his obligation to do so.
United States Attorney Carmen M. Ortiz and John Gibbons, U.S. Marshal for the District of Massachusetts made the announcement. Assistant U.S. Attorneys Alex J. Grant and Katharine A. Wagner of Ortiz’s Springfield Branch Office prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by 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.projectsafechildhood.gov.
Lisbon man sentenced to eight years in prison for defrauding investors out of $1 millionRead the Press Release
A Lisbon man was sentenced to more than eight years in prison for defrauding people out of more than $1 million and using the money to pay for luxury cars and expensive vacations, said U.S. Attorney Carole S. Rendon and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Paul L. Shockley, 24, was found guilty last year of three counts of mail fraud.
“This defendant lived the high life by stealing the fruits of other peoples’ labor,” Rendon said. “His days of fleeing responsibility for his actions are over.”
Shockley operated multiple fraud schemes.
He established several companies, known collectively as D’Legato, that was a purported start-up venture that would operate an assisted living center. Neither Shockley nor any of his associates had operated an assisted-living center before. Shockley defrauded four New York residents between 2013 and 2015 by causing them to invest in D’Legato through false and fraudulent misrepresentations, according to court documents.
Shockley persuaded one of the victims to use part of her retirement savings to make payments on unauthorized credit card transactions, falsely telling the victim the payments would be credited as investments in D’Legato.
The combined loss to victims in the D’Legato fraud scheme was approximately $563,000, according to court documents.
Shockley also induced victims to provide him with credit card information, which he used to make more than $308,000 in unauthorized purchases on at least 17 different credit cards, according to court documents.
In 2015, Shockley and others defrauded two other people by enticing them to invest in We Love Snobs, which purported to be an online luxury consignment store. Shockley routinely misled investors and told them investments would result in high returns, when in fact he used the money to pay personal expenses, unreasonably high salaries and luxury shopping sprees. The combined losses of the We Love Snobs scheme is $280,000, according to court documents.
Shockley also removed his ankle monitor and fled Ohio while out on bond after pleading guilty, according to court documents.
This case was prosecuted by Assistant U.S. Attorney Paul M. Flannery following an investigation by the FBI, with assistance from the US Postal Inspection Service.
Lincoln Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney, Deborah R. Gilg, announced that on January 6, 2017, Tiffany Alice Wolfe, 33, of Lincoln, was sentenced to 10 years and three months (123 months) for her role in a conspiracy to distribute and possess with the intent to distribute 500 grams or more of a substance containing methamphetamine between September of 2013, and December of 2015. Information obtained by law enforcement indicated that Wolfe was responsible for the distribution of at least 1.5 kilograms, (approximately three pounds) of methamphetamine during that time. In September of 2015, Wolfe was contacted by Lincoln Police officers and told officers she had been selling methamphetamine for two years. In December of 2015, she was found in possession of over ten grams of methamphetamine outside the Lancaster County Jail. At that time, Wolfe said she had five to ten customers, at least three of whom were reselling methamphetamine purchased from her to other persons.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney, Deborah R. Gilg, announced that on January 6, 2017, Ryan Homer Dittmer, 40, of Lincoln, was sentenced to eight years and one month (97 months) for his role in a conspiracy to distribute and possess with the intent to distribute 50 grams or more of a substance containing methamphetamine between October of 2013, and February of 2016. Information obtained by law enforcement indicated that Dittmer was responsible for the distribution of at least 1.5 kilograms, (approximately three pounds) of methamphetamine during that time. In January of 2016, Dittmer was contacted by Lincoln Police officers, and he was found in possession of approximately 1 ⅔ ounces of methamphetamine. At that time, he told officers that he had been selling quantities of methamphetamine of one ounce or more for over a year, and the majority of his customers were buying quantities large enough to sell to other persons.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Leaders of an Orlando-Area Heroin Trafficking Organization Sentenced to Federal PrisonRead the Press Release
Orlando – United States District Judge Carlos E. Mendoza today sentenced Angel Manuel Fontanez (32, Clermont) and his brother, Alexis Fontanez Nieves (29, Orlando), to 17 years and 2 months and 14 years in federal prison, respectively, for conspiracy to distribute and possession with the intent to distribute heroin. Fontanez pleaded guilty on October 12, 2016, and Nieves pleaded guilty on October 21, 2016.
According to court documents and sentencing testimony, Fontanez and Nieves were leaders of an Orlando-based drug trafficking organization whose members referred to themselves as “La Compania” or “The Company.” The organization used a telephone number (“the heroin line”) that frequently changed to sell heroin to customers primarily in the Orlando tourist district, near International Drive. Customers would call the heroin line and arrange to purchase heroin from a member of the organization. The line changed hands from one member of the organization to the next, as heroin was sold during two 12-hour shifts, seven days a week.
Fontanez was the leader of the organization, and he traveled out-of-state to acquire kilograms of heroin that he transported back to the Orlando area and then repackaged into smaller, street-level quantities for distribution. He also managed and directed the activities of the organization’s street dealers.
Nieves helped Fontanez run the organization by repackaging bulk heroin into smaller baggies and supplying both heroin and cocaine to the street-level sellers. After Fontanez was arrested, Nieves directed the organization’s day-to-day activities by recruiting individuals to work for the organization, controlling the heroin line, providing heroin to the organization’s low-level sellers, and collecting money from the sellers at the conclusion of their shifts. The organization distributed approximately one kilogram of heroin every two weeks. During the time of the conspiracy, Fontanez was responsible for distributing at least 30 kilograms of heroin and Nieves was responsible for distributing at least 10 kilograms of heroin.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation entitled “La Compania.” The investigation was conducted by the Drug Enforcement Administration, with assistance from the Orange County Sheriff’s Office, the Metropolitan Bureau of Investigation, the United States Marshals Service, the Federal Bureau of Investigation, the Orlando Police Department, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Kissimmee Police Department, the Osceola County Investigative Bureau, and the Virginia State Police. It was prosecuted by Assistant United States Attorney Andrew C. Searle.
The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation's drug supply.
Keshena Man Indicted for Domestic Abuse Offenses on Menominee Indian ReservationRead the Press Release
Gregory J. Haanstad, U.S. Attorney, announced that on January 4, 2017, a federal grand jury returned a two-count indictment against a man involved in habitual domestic violence offenses on the Menominee Indian Reservation. The indictment named Jeffrey Matchopatow (age: 22) of Keshena. Count One of the indictment charged Matchopatow with Domestic Assault by a Habitual Offender in violation of 18 United States Code, Section 117. Count Two of the indictment charged Matchopatow with Assault Resulting in Serious Bodily Injury in violation of 18 United States Code, Section 113. On each count Matchopatow faces a maximum sentence of up to 10 years’ imprisonment, up to a $250,000 fine, and up to 3 years of supervised release.
According to the indictment, on September 11, 2016, the defendant assaulted a person with whom he lived, resulting in a facial laceration requiring sutures and a fractured jaw. Prior to September 11, 2016, Matchopatow had been convicted in Menominee Tribal Court of at least two cases involving domestic violence, which according to the indictment makes him a habitual offender under federal law.
The case was investigated by the Menominee Tribal Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Andrew J. Maier.
An indictment is only a charge and not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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For additional information contact:
Acting Public Information Officer Elizabeth Makowski at 414 297-1700
Justice Department Announces Department-Wide Procedures for Eyewitness IdentificationRead the Press Release
Deputy Attorney General Sally Q. Yates announced today that the Justice Department is issuing, for the first time, department-wide procedures on eyewitness identification, which will apply to agents at FBI, Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the U.S. Marshals Service, and which will guide federal prosecutors when deciding whether to charge a case involving an eyewitness identification. The new procedures were outlined in a memo from Yates to the heads of the department’s law enforcement agencies. The procedures address the use of “photo arrays,” the most common methods used by law enforcement to determine whether a witness can identify the perpetrator of a crime, and are designed to ensure that law enforcement personnel do not suggest to a witness, even unintentionally, that they know which photograph contains the image of the suspect.
“Eyewitness identifications play an important role in our criminal justice system, and it’s important that we get them right,” said Deputy Attorney General Yates. “With today’s procedures, we’re taking one more step to ensure that law enforcement officers obtain the most reliable evidence possible during a criminal investigation and that all Americans can have confidence in the fairness of our criminal justice system.”
The memo issued today establishes a department-wide policy directing that, except in exceptional circumstances, agents should administer photo arrays using either “blind” procedures (where the administrator is not involved in the investigation and does not know what the suspect looks like) or “blinded” procedures (where the administrator takes steps to ensure he or she cannot see the order or arrangement of the photographs viewed by the witness). In addition, the new policy stresses the importance of documenting a witness’s self-reported confidence at the moment of the initial identification, reflecting a growing body of research that such confidence is often a more reliable predictor of eyewitness accuracy that a witness’s confidence at the time of trial. The department’s new procedures call on agents to document the identification either by video- or audio-recording the test, or by having the administrator transcribe the witness’s statement as close to verbatim as possible.
In the memorandum, Yates directed the heads of the department’s law enforcement agencies to update their internal policies to reflect the new guidance and called on all department prosecutors to review the procedures prior to making a decision about whether to charge a suspect who was identified in part through the use of a photo array, whether obtained by federal, state, or local law enforcement officers.
DAG Memo - Procedures for Photo ArraysInstitutional Pharmacy Solutions to Settle Civil Penalty Claims Acknowledging Violations of Controlled Substances ActRead the Press Release
NORFOLK, Va. – Institutional Pharmacy Solutions, LLC (IPS), headquartered in Montgomery, Alabama, has agreed to pay $500,000 to settle civil penalty claims involving controlled substances being dispensed by IPS’s Virginia Beach Retail Pharmacy.
In a parallel administrative proceeding, IPS will surrender its DEA registration for the Virginia Beach Retail Pharmacy, which will foreclose that pharmacy location from dispensing controlled substance medications.
IPS fills prescriptions for patients in long term care facilities and operates pursuant to a certificate of registration issued by the DEA. Through its Virginia Beach Retail Pharmacy, IPS uses Automated Dispensing Systems (ADS) to provide prescription drugs, including controlled substance medications, to residents at long-term care facilities.
In accordance with the DEA’s regulatory authority over registered pharmacies, DEA Diversion Investigators conducted a two-year investigation that examined the controlled substances prescriptions filled by IPS’s Virginia Beach Retail Pharmacy. This investigation revealed numerous instances where IPS’s Virginia Beach Retail Pharmacy violated the Controlled Substance Act (CSA). The failure to comply with prescription and recordkeeping requirements can cause the potential for unauthorized persons to access controlled substances and compromise effective accountability for controlled substances.
Under the terms of a parallel administrative proceeding, IPS will surrender its DEA registration for the Virginia Beach Retail Pharmacy, which will foreclose that pharmacy location from dispensing controlled substance medications on January 12, 2017. Until January 12, 2017, IPS will be allowed to continue to dispense prescribed controlled substances to its ADS from the IPS Virginia Beach Retail Pharmacy. The extended surrender deadline is to provide the long-term care facilities with adequate time to make alternative arrangements to address their controlled substance medication needs.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia and the DEA’s Washington Division. Assistant U.S. Attorneys Richard Sponseller and Clare Wuerker handled the CSA civil penalty matter. The resolution also resolves a parallel administrative action, In the Matter of Institutional Pharmacy Solutions, LLC, Docket No. 16-35 (Drug Enforcement Admin. August 2016). The administrative action was handled by Scott Levin and Krista Tongring of the DEA Diversion & Regulatory Litigation Office of Chief Counsel.
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.
Indianapolis man charged in child pornography caseRead the Press Release
Alleged to have sexually exploited four children under the age of seven
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler, announced today that Indianapolis resident Christopher A. Abraham, 38, was charged with sexually exploiting four children, all under the age of seven years old, and with possessing child pornography.
“Protecting trusting children from predators who would sexually exploit them continues to be a top priority in my office,” said Minkler. “In this office, child victims will always have an advocate to hold their abusers accountable.”
On January 2, 2017, detectives from the Indianapolis Metropolitan Police Department received information that Abraham had images of child pornography on his computer at his residence on the Eastside of Indianapolis. Law enforcement officials obtained search warrants for computers, external drives and other electronic devices at Abraham’s residence and found thousands of images of child pornography.
Investigators learned that, in addition to commercially produced child-pornography, Abraham’s collection contained images that Abraham is alleged to have produced of minor children which whom he had contact. The images, alleged to have been produced by Abraham, are of victims ranging in age from two to seven years old.
This case was investigated by the Indianapolis Metropolitan Police Department, Indiana State Police, and the Indiana Crimes Against Children Task Force.
Assistant United States Attorney Kristina Korobov who is prosecuting this case for the government said Abraham’s maximum sentencing exposure would be 140 years imprisonment if convicted of all charges contained in the complaint.
Abraham had his initial appearance earlier this week and remains in the custody of the United States Marshal’s Service.
A complaint is only a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
Independence Man Pleads Guilty to Distributing Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man pleaded guilty in federal court today to distributing child pornography.
Eric A. Jackson, 53, of Independence, pleaded guilty before U.S. District Judge Stephen R. Bough to the charge contained in a Nov. 17, 2015, federal indictment.
By pleading guilty today, Jackson admitted that he sent images of child pornography to a 16-year-old female in Illinois. According to today’s plea agreement, an aunt discovered the images on her niece’s cell phone and made a report to the Schuyler County, Ill., Sheriff’s Department. Among the pornographic images sent by Jackson was a 10-year-old female who was “hog tied.”
The 16-year-old to whom Jackson sent the child pornography images told investigators they had been communicating via social media for approximately a year, and had exchanged nude photos of each other.
Law enforcement officers executed a search warrant at Jackson’s residence and seized a Samsung tablet and a Samsung cell phone. Examiners found 1,028 photos and 130 videos of child pornography on the devices. Examiners also found evidence that Jackson had sent more than 70 attachments, which included both adult and child pornography.
Under federal statutes, Jackson is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney David Luna. It was investigated by the FBI Child Exploitation Task Force and the Schuyler County, Ill., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Haitian National Charged with International Narcotics and Money Laundering ConspiracyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Adolphus P. Wright, Special Agent in Charge, United States Drug Enforcement Administration (DEA), Miami Field Division, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office announced that the indictment against Guy Philippe, 48, of Haiti, was unsealed this morning in the Southern District of Florida.
Philippe was indicted in 2005 on one count of conspiracy to import narcotics; one count of conspiracy to launder monetary instruments and engage in monetary transactions in property derived from unlawful activity; and one substantive count of engaging in monetary transactions derived from unlawful activity. This afternoon, Philippe was ordered held without bond during an initial hearing before U.S. Magistrate Judge Barry L. Garber of the Southern District of Florida. Philippe’s arraignment hearing is scheduled for January 13, 2017.
According to the indictment, from approximately 1997 through 2001, Philippe conspired with others to import more than five kilograms of cocaine into the United States. From approximately June 1999 through April 2003, Philippe also allegedly conspired with others to engage in money laundering to conceal their participation in criminal activity, including narcotics trafficking. The indictment alleges that in 2000, Philippe transferred a $112,000 check through a financial institution, affecting interstate and foreign commerce, that included monies derived from the illicit drug trafficking enterprise.
An indictment is merely an allegation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The DEA and IRS-CI investigated the case. The Criminal Division’s Office of International Affairs, U.S. Marshals Service Fugitive Task Force, U.S. Customs and Border Protection’s Miami Office of Field Operations and the Haitian Government, including the Haitian Ministry of Justice, Haitian National Police and La Brigade de Lutte contre le Trafic de Stupéfiants (BLTS), provided assistance in this matter. Assistant U.S. Attorneys Lynn M. Kirkpatrick and Andy R. Camacho of the Southern District of Florida and Senior Trial Counsel Mark A. Irish of the Criminal Division’s Asset Forfeiture and Money Laundering Section are prosecuting the case.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
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.
Haitian National Charged with International Narcotics and Money Laundering ConspiracyRead the Press Release
An indictment was unsealed today in connection with the arrest of a Haitian national charged with conspiracy to import narcotics and money laundering offenses.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Adolphus P. Wright of the Drug Enforcement Administration’s (DEA) Miami Field Division and Special Agent in Charge Kelly R. Jackson of Internal Revenue Service – Criminal Investigation’s (IRS-CI) Miami Field Office made the announcement.
Guy Philippe, 48, of Haiti, was indicted in 2005 on one count of conspiracy to import narcotics; one count of conspiracy to launder monetary instruments and engage in monetary transactions in property derived from unlawful activity; and one substantive count of engaging in monetary transactions derived from unlawful activity. This afternoon, Philippe was ordered held without bond during an initial hearing before U.S. Magistrate Judge Barry L. Garber of the Southern District of Florida. Philippe’s arraignment hearing is scheduled for Jan. 13, 2017.
According to the indictment, from approximately 1997 through 2001, Philippe conspired with others to import more than five kilograms of cocaine into the United States. From approximately June 1999 through April 2003, Philippe also allegedly conspired with others to engage in money laundering to conceal their participation in criminal activity, including narcotics trafficking. The indictment alleges that in 2000, Philippe transferred a $112,000 check through a financial institution, affecting interstate and foreign commerce, that included monies derived from the illicit drug trafficking enterprise.
An indictment is merely an allegation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The DEA and IRS-CI investigated the case. The Criminal Division’s Office of International Affairs, U.S. Marshals Service Fugitive Task Force, U.S. Customs and Border Protection’s Miami Office of Field Operations and the Haitian Government, including the Haitian Ministry of Justice, Haitian National Police and La Brigade de Lutte contre le Trafic de Stupéfiants (BLTS), provided assistance in this matter. Senior Trial Counsel Mark A. Irish of the Criminal Division’s Asset Forfeiture and Money Laundering Section and Assistant U.S. Attorneys Lynn M. Kirkpatrick and Andy R. Camacho of the Southern District of Florida are prosecuting the case.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Guatamalan man charged with citizenship violationRead the Press Release
A one-count information was filed charging Alonso Ramos Ciprian, 20, of Guatamala, with false claim to U.S. citizenship, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
The information charges that from on or about November 16, 2015, through on or about November 16, 2016, Ciprian, a citizen of Guatemala and therefore an alien in the United States, falsely and willfully represented himself to be a citizen of the United States.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the information was conducted by the Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations and the Salem Police Department. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Greenfield Man Agrees to Plead Guilty to Child Pornography ChargesRead the Press Release
BOSTON – Derek Lecompte, 26, agreed to plead guilty yesterday in U.S. District Court in Springfield to three counts of sexual exploitation of a child. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for March 30, 2017.
Lecompte admitted that he befriended a 10-year-old boy, took sexually explicit pictures of him, and posted the pictures on the internet.
The charging statute provides a mandatory minimum sentence of 15 years and no greater than 30 years in prison, five years of supervised release, a fine of $250,000. If the Court accepts the plea agreement, Lecompte will be sentenced to 15 years in prison, and 10 years of supervised release. 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; Northwestern District Attorney David Sullivan; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Greenfield Police Chief Robert H. Haigh Jr., made the announcement today. Assistant U.S. Attorney Alex J. Grant of Ortiz’s Springfield Branch Office is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Four-Time Felon Sentenced to 68 Months for Possessing 26 FirearmsRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick Miles announced that 43-year-old Khamdeng Sam Phanthourath, of Holland, was sentenced recently to 68 months in prison, following his conviction for possessing firearms and ammunition as a felon. He also received a $1,500 fine. A three-year term of supervised release will follow Phanthourath’s prison term.
The U.S. Attorney brought charges against Phanthourath after the West Michigan Enforcement Team (WEMET) executed a search warrant at his home on June 15, 2016. At the sentencing hearing before Chief U.S. District Judge Robert Jonker, the U.S. Attorney’s Office introduced evidence that investigating officers found 26 firearms, muzzle loader guns, thousands of rounds of ammunition, a homemade silencer, body armor, marijuana, more than 800 pills (including narcotics, suboxone, and methylphenidate), more than $9,000 cash, and a police scanner set to the Ottawa County Sheriff’s Frequency. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) determined that at least one of the firearms was stolen. Phanthourath had previously been convicted of, among other things, breaking and entering a building with intent and being a felon in possession of a firearm.
"The U.S. Attorney’s Office is dedicated to the mission of keeping firearms out of the hands of dangerous felons and drug dealers," said U.S. Attorney Patrick Miles. "The U.S. Attorney’s Office and ATF work closely with local law enforcement to investigate, identify, and prosecute individuals who pose a threat to our community."
"Holland Township residents can sleep better tonight knowing another dangerous criminal is behind bars," said Special Agent in Charge Robin Shoemaker. "ATF will continue to partner with local and state law enforcement agencies to bring criminals to justice and restore peace in our neighborhoods."
"The West Michigan Enforcement Team has shared a great relationship with the U.S. Attorney’s Office for the Western District of Michigan for several years," said Detective First Lieutenant Andrew Fias, Section Commander of WEMET. "It is a partnership that has led to successful prosecutions at the federal level. We are also very fortunate to have excellent relationships with ATF and our other federal law enforcement partners. WEMET has investigated numerous cases in the Holland area with ATF, curbing violent crime that has plagued this community. This case is a great example of many."
The case was investigated by WEMET and ATF. Assistant U.S. Attorney Sally Berens prosecuted the case.
END
Four Defendants Sentenced to Prison for Stolen Identity Tax Fraud SchemeRead the Press Release
Four defendants were sentenced to federal prison for their participation in a stolen identity tax fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Steve Steinberg, Chief, Aventura Police Department, made the announcement.
Wolf Obin, 32, of Miami-Dade, was sentenced to 64 months in prison, to be followed by 3 years of supervised release. Stanley Moscova, 28, of Miami-Dade, was sentenced to 60 months in prison, to be followed by 3 years of supervised release. Rosny Muller, 29, of Broward County, was sentenced to 33 months in prison, to be followed by 3 years of supervised release. These three defendants were previously convicted at trial of one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286, and one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3). Obin and Moscova were also convicted of three counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to evidence presented at trial, beginning in October 2011, Obin, Moscova, and Muller fraudulently obtained Electronic Filing Identification Numbers (EFINs) in the names of other individuals who acted as “straw” EFIN holders which allowed the defendants to submit tax returns in the names of other individuals. The defendants then used those EFINs, as well as EFINs in their own names, to file fraudulent federal income tax returns with the IRS using the stolen personal identifying information (PII) of other individuals without their knowledge and authority. During a search warrant of the defendants’ Aventura apartment, law enforcement discovered the PII of more than 1,600 individuals. Through their tax filings, the defendants claimed approximately $2,300,000 in fraudulent federal tax refunds from the IRS.
In a separate but related case, defendant Leonard Rosalvo Obin (Case Number 16CR20525), was sentenced to 30 months in prison, to be followed by 3 years of supervised release. Leonard Obin previously pled guilty to one count of possession of fifteen or more unauthorized access devices, and one count of aggravated identity theft. During the search warrant, law enforcement found a phone and flash drive in Leonard Obin’s pants pockets. The phone and flash drive contained the names, dates of birth, and Social Security numbers of 86 and 91 individuals, respectively.
Mr. Ferrer commended the investigative efforts of the IRS-CI and the Aventura Police Department. These cases were prosecuted by Assistant U.S. Attorneys Matthew J. Langley and Luis M. Perez.
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 Vice President of Publicly Traded Company Charged with Orchestrating $100 Million Securities Fraud SchemeRead the Press Release
A former vice president of U.S. operations at a now-defunct publicly traded Canadian oil-services company was indicted with orchestrating a scheme to fraudulently inflate the company’s reported revenue by approximately $100 million.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Inspector in Charge Terrence P. McKeown of the U.S. Postal Inspection Service’s (USPIS) Washington, D.C., Division made the announcement.
Joseph A. Kostelecky, 55, of Dickinson, North Dakota, was charged in an indictment filed yesterday in the District of North Dakota with five counts of wire fraud and one count of securities fraud for his alleged role in the scheme. Kostelecky, who previously worked at Poseidon Concepts Corporation’s field office in Dickinson, made his initial appearance earlier today before U.S. Magistrate Judge Charles S. Miller Jr. of the District of North Dakota.
“The defendant is charged with a $100 million fraud that led to the collapse of an entire company and harm to thousands of individual investors,” said Assistant Attorney General Caldwell. “Today’s indictment again makes clear the department's commitment to protecting the investing public against those who manipulate the markets to enrich themselves.”
“Postal Inspectors will continue to aggressively protect the U.S. mail from being used by fraudsters to further their stock market manipulation schemes,” said Inspector in Charge McKeown.
The indictment alleges that between November 2011 and December 2012, Kostelecky, the sole executive in Poseidon Concepts Corporation’s U.S. division, engaged in conduct that caused the company to falsely report approximately $100 million in revenue from purported contracts with oil and natural gas companies. Kostelecky’s alleged misconduct included fraudulently directing the company’s accounting staff at the U.S. corporate headquarters in Denver to record revenue from such contracts and then assuring management that the associated revenue was collectable, when he knew that such contracts either did not exist or that the associated revenue was not collectable.
When the inflated revenue came to light at the end of 2012, the company’s stock fell precipitously, with shares losing close to $1 billion in value, and the company was forced into bankruptcy. The indictment alleges that Kostelecky perpetrated the scheme in order to inflate the value of the company’s stock price and to enrich himself through the continued receipt of compensation and appreciation of his own stock and stock options.
An indictment is merely an allegation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the USPIS Washington, D.C. Division. Trial Attorneys Anna G. Kaminska and Henry P. Van Dyck of the Criminal Division’s Fraud Section are prosecuting the case. The Securities and Exchange Commission and the U.S. Attorney’s Office of the District of North Dakota provided assistance in this matter.
The Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country. Today’s indictment is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 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 is 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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Former E.P.I.S.D. Associate Superintendent Pleads Guilty to Fraud SchemeRead the Press Release
In El Paso today, 50–year-old former El Paso Independent School District (EPISD) Associate Superintendent Damon Murphy admitted to defrauding the U.S. Department of Education (DOE) by artificially inflating state and federal student accountability scores announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division; and, U.S. Department of Education Inspector General Kathleen S. Tighe.
Appearing before Senior United States District Judge David Briones, Murphy pleaded guilty to one count of conspiracy to defraud the United States. By pleading guilty, Murphy admitted that he and others implemented a scheme between February 2006 to September 2013 to violate the No Child Left Behind (NCLB) portion of the federal Elementary and Secondary Education Act (ESEA) in order to keep EPISD compliant with program requirements. Fraudulent misrepresentations regarding EPISD's Federal Adequate Yearly Progress standards (AYP) were submitted to the Texas Education Agency and the DOE in order to make it appear as though EPISD was meeting and exceeding AYP standards. In the 2008/2009 school year, Murphy, admittedly, gave EPISD high school principals “marching orders” to “put up barriers” to prevent 9th grade Limited English Proficiency (LEP) students and others who they perceived would perform poorly on the TAKS test from going on to the 10th grade. Later, Murphy and others implemented a plan using partial course credits for the 10th grade to reclassify and promote those held-back students to the 11th grade thereby circumventing all mandated testing/accountability procedures including the 10th grade TAKS test.
Murphy, who remains on bond pending sentencing, faces up to five years in federal prison. No sentencing date has been scheduled.
All five of Murphy’s co-defendants remain under a six-count federal grand jury indictment unsealed in April 2016. They are: 41-year-old former EPISD Assistant Superintendent James Anderson; 52-year-old former Austin High School (AHS) Principal John Tanner; 52-year-old former AHS Assistant Principal Mark Phillip Tegmeyer; 53-year-old former AHS Assistant Principal Diane Thomas; and, 48-year-old former AHS Assistant Principal Nancy Love. Jury selection is scheduled for February 13, 2017, before Judge Briones in El Paso.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Department of Education Office of Inspector General. Assistant United States Attorneys Debra Kanof, Robert Almonte and Rifian Newaz are prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. Anderson, Tanner, Tegmeyer, Thomas and Love are presumed innocent until proven guilty in a court of law.
Former Bank Employee Re-Sentenced for TheftRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza today re-sentenced Ane Plate (60, DeLand) to 27 months in federal prison for theft by a bank employee. As part of her sentence, the Court also entered a money judgment in the amount of $176, 079.70, the proceeds of the charged criminal conduct.
Plate pleaded guilty on May 20, 2015. On August 19, 2015, she was initially sentenced by U.S. District Judge Kendall G. Sharp to 27 months’ imprisonment. Plate appealed that sentence, and on October 5, 2016, the Eleventh Circuit Court of Appeals remanded the case for re-sentencing.
According to court documents, between October 8, 2013, and continuing through May 3, 2014, Plate, who was an officer and employee of Wells Fargo Bank, stole $176,079.70 in bank deposits. Specifically, she induced an elderly couple, who had been her clients for several years, to sign an ACH Authorization Agreement allowing Plate to transfer funds from the couple’s Wells Fargo Trust Account to their personal checking account. Plate then manipulated the elderly couple into writing checks to her from that account. Plate would replenish the funds in the couple’s personal account by selling off their securities, without authorization, and transferring the proceeds into the couple’s personal account. Plate then used the stolen money to make improvements to her home, pay her mortgage, and make large cash withdrawals. At the time of the offense, the elderly victims, who were in their nineties, had diminished mental capacities and were living in an assisted living facility.
This case was investigated by the U.S. Secret Service. It was prosecuted by Assistant United States Attorney Kara M. Wick.
Florida Man Sentenced to Prison for Scheming to Collect Compensation for Active-Duty Military Members Who Suffer Foreclosure LossesRead the Press Release
WASHINGTON – David Bernier, 52, of Fort Lauderdale, Fla., was sentenced today to six months in prison on a federal charge stemming from a scheme in which he forged military records and made false statements in an attempt to collect over $700,000 under a federal law meant to protect active duty military members from suffering losses through mortgage foreclosures.
The sentence was announced by Channing D. Phillips, U.S. Attorney for the District of Columbia, Lewe F. Sessions, Special Agent in Charge of the Department of Justice Office of the Inspector General’s Fraud Detection Office, and James Springs, Inspector General for the National Archives and Records Administration.
Bernier pled guilty on June 20, 2016, in the U.S. District Court for the District of Columbia to making a false statement. He was sentenced by the Honorable Colleen Kollar-Kotelly. Following his prison term, Bernier will be placed on two years of supervised release.
The scheme involved Bernier’s claims that he was entitled to protection under the Servicemembers Civil Relief Act, a law that provides protections for military members as they enter active duty. Among other things, the law prohibits non-judicial foreclosures against service members who are in military service or within the applicable post-service period, as long as they originated their mortgages before their period of military service began.
In 2012, the United States settled two lawsuits against financial institutions accused of improperly foreclosing on mortgages of active duty military service personnel. The court agreements led to the creation of settlement funds out of which payments would be made to qualified individuals whose homes had been wrongfully foreclosed upon.
Bernier filed two such claims in 2014, involving foreclosures that took place in 2008 and 2009 of two condominiums he owned in Fort Lauderdale. In both claims, Bernier stated that the properties were foreclosed upon while he was on active duty in the U.S. Air Force in Iraq. He also provided documentation claiming he had received the Defense Meritorious Service Medal and Citation for conduct in Iraq from July 2008 to March 2010. Under the settlement agreements, if the claims were valid, Bernier could have received a total of $730,000.
However, the financial institutions were unable to substantiate Bernier’s claims, leading him to submit follow-up documents and make statements attesting to his service. In fact, an investigation determined that the documents Bernier had submitted were forgeries. At the time that Bernier supposedly was in Iraq, he was in fact working in the state of Washington. No money was paid to Bernier, whose actions became the subject of a criminal investigation.
“This defendant went to great lengths in his brazen attempts to defraud financial institutions of $730,000 that was meant to protect veterans from foreclosures while they were in service to our country,” said U.S. Attorney Phillips. “Fortunately, the banks and the Department of Justice fully vetted the defendant’s many forgeries on documents and he was never paid. We will continue to hold people accountable for attempting to cash in on benefits meant for others.”
“By falsely claiming mortgage relief benefits reserved for those on active duty, the defendant not only sought to defraud the government, his actions resulted in a delay of payments to those who actually deserved to receive them -- the brave men and women who lost their homes to foreclosure while serving their country overseas,” said Special Agent in Charge Sessions. “We will continue to investigate all those who try to cheat the system in this manner.”
In announcing the sentence, U.S. Attorney Phillips, Inspector General Horowitz, and Inspector General Springs commended those who investigated the case from the Offices of Inspector General for the Department of Justice and the National Archives and Records Administration. They also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Peter C. Lallas, who prosecuted the matter.
Five More Defendants Plead Guilty to Crimes Charged in Shrimp Boy IndictmentRead the Press Release
SAN FRANCISCO- Gary Kwong Yiu Chen, Anthony John Lai, and Xiu Ying Ling “Elaine” Liang pleaded guilty to money laundering charges; Tong Zao Zhang pleaded guilty to dealing in contraband cigarettes; and Bryan Tilton pleaded guilty to conspiracy to transport stolen goods in interstate commerce announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The five plea agreements, accepted Wednesday by the Honorable Charles R. Breyer, U.S. District Judge, resulted from charges leveled against the defendants in the same original indictment that eventually led to the trial and conviction of Raymond “Shrimp Boy” Chow.
According to their plea agreements, Chen and Lai, both of San Francisco, admitted that from October through December of 2013, they facilitated eight separate financial transactions for the purpose of disguising the proceeds of illegal drug sales. The defendants admitted they engaged in drug trafficking from which the profits were obtained and that the purpose of the financial transactions was to promote ongoing criminal activity. The defendants also acknowledged that part of their objective was to transport profits from the East Coast to the West Coast and to conceal and disguise the funds from law enforcement. Chen and Lai each acknowledged that the amount of money involved in the transactions was over $635,000. They both pleaded guilty to two counts of money laundering, in violation of 18 U.S.C. § 1956(a)(1)(A)(i). Elaine Liang pleaded guilty, without a written agreement, to a single count of money laundering related to arranging the transactions that were carried out by Chen and Lai.
In addition, Zhang, of Brooklyn, N.Y., pleaded guilty to dealing in contraband cigarettes. According to his plea agreement, Zhang admitted that in July of 2013, he received more than 10,000 Marlboro cigarettes that he knew were contraband. He transported the cigarettes, none of which bore evidence of the payment of applicable New York state taxes, and delivered them to another location for resale and distribution as contraband cigarettes. Zhang acknowledged the amount of taxes avoided because of the transaction was approximately $292,500. Zhang was charged in a Superseding Information filed January 3, 2017, with one count of dealing in contraband cigarettes, in violation of 18 U.S.C. § 2342(a) and 2344. Pursuant to Wednesday’s plea agreement, he pleaded guilty to the charge.
Tilton, of San Francisco, admitted that between December of 2011 and March of 2013, he agreed with others including Chow and George Nieh, to purchase stolen Hennessy XO cognac alcohol. On March 9, 2012, Tilton met in San Francisco with Nieh and others, including an undercover FBI agent, for the purpose of making arrangements for the purchase of purportedly stolen Hennessey XO. Tilton provided the undercover agent with a purple bag containing $30,000 in cash, tasted a sample of the liquor to confirm that it was not counterfeit, and arranged for the liquor to be unloaded from the undercover agent’s van. Tilton admitted he later delivered an envelope containing $5,000 to Chow in exchange for Chow’s involvement in arranging the purchase of the purportedly stolen liquor. Tilton pleaded guilty to one count of conspiracy, in violation of 18 U.S.C. § 371.
Chen, Lai, Liang, Zhang, and Tilton all were named in an indictment filed April 3, 2014. The indictment was amended several times and eventually led to the trial and January 8, 2016, conviction of Raymond Chow, 55, of San Francisco, for racketeering, murder, money laundering, and conspiracy. Among the crimes with which Chow was charged and convicted were arranging the murder of Allen Leung and conspiring with others to murder Jim Tat Kong. The jury found Chow guilty of every one of the 162 charges leveled against him.
The maximum statutory sentence for money laundering is 20 years in prison and $250,000 or twice the value of the property laundered, whichever is greater. The maximum statutory sentence for dealing in contraband cigarettes is five years in prison and a $250,000 fine. The maximum statutory sentence for a violation of 18 U.S.C. § 371 is five years in prison and $250,000. In each case, additional terms of supervised release, restitution, and forfeiture may apply. However, any sentence would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. Judge Breyer is scheduled to sentence the defendants on the following dates: Zhang—April 12, 2017; Chen, Lai, and Liang—May 10, 2017; Tilton—June 7, 2017.
Assistant U.S. Attorneys William Frentzen, Susan Badger, S. Waqar Hasib, and David Countryman prosecuted the case with the assistance of Rosario Calderon, Kurk Kosek, Ana Guerra, Marina Ponomarchuk, Victoria Etterer, Lance Libatique, and Bridget Kilkenny. The prosecution is the result of an investigation by Federal Bureau of Investigation; the U.S. Marshal Service, San Francisco Police Department Gang Task Force; Oakland Police Department; Internal Revenue Service, Criminal Investigation; New York Police Department; Mercer County New Jersey Sheriff's Office; and the San Francisco and Alameda County Sheriff’s Departments.
Federal Officials Close Review into the Death of Jeremy McDoleRead the Press Release
WASHINGTON -- The Justice Department announced today that there is insufficient evidence to pursue federal criminal civil rights charges against the Wilmington Police Department (WPD) Corporals involved in the fatal shooting of 28-year-old paraplegic Jeremy McDole on Sept. 23, 2015.
Officials from the U.S. Attorney’s Office of the District of Delaware, the Justice Department’s Civil Rights Division and the FBI met today with representatives of the McDole family to inform them of this determination. The department makes this decision based on the determination that the evidence does not indicate that the corporals willfully used excessive force in shooting McDole.
Federal authorities devoted significant time and resources to reviewing the events surrounding McDole’s death. This involved reviewing detailed and lengthy analysis of voluminous materials, including police reports, law enforcement accounts, witness statements, dispatch logs, physical evidence reports, the autopsy report and an enhanced cell phone video of the incident.
The team of experienced federal prosecutors from the Civil Rights Division Criminal Section and the U.S. Attorney’s Office reviewed thousands of pages of documents and other evidence to determine whether the subject corporals violated federal law. Under the applicable federal criminal civil rights statute, prosecutors must establish, beyond a reasonable doubt, that a law enforcement officer willfully deprived an individual of a Constitutional right. To establish willfulness, federal authorities must show that the officer acted with the deliberate and specific intent to do something the law forbids. This is the highest standard of intent imposed by law. Mistake, misperception, negligence or poor judgment are not sufficient to establish a federal criminal civil rights violation.
The evidence developed during the investigation revealed that corporals Thomas Silva, James MacColl, Thomas Lynch and Joseph Dellose were dispatched pursuant to a 911 call reporting that a male suspect in a wheelchair, later identified as McDole, was armed with a handgun and may have sustained self-inflicted gunshot wounds. Silva arrived first at the scene, and the 911-caller pointed out McDole and said McDole was still in possession of a gun. Silva commanded McDole to show his hands and drop the gun, but McDole instead rolled his wheelchair into the street and reached into his waistband. MacColl arrived next and saw that McDole was not responding to Silva’s commands. Dellose arrived and immediately approached McDole from the opposite direction of Silva and MacColl. Dellose also ordered McDole to show his hands; however, McDole continued to reach into his waistband. Dellose stated that he observed the handle of a gun, so he fired a round at McDole from his shotgun. Lynch arrived immediately after Dellose fired.
After the shotgun blast, McDole continued moving his hands around his lap and waistband. McDole then reached into the right side of his waistband as if to grab something and began withdrawing his right hand, in which he held what the corporals believed to be a handgun. Silva, MacColl and Lynch each fired four shots at McDole from their service pistols. McDole fell to the ground and a responding officer approached him and removed from his waistband a handgun.
The incident was recorded in a cell phone video, which was enhanced at the FBI Laboratory. The video shows McDole continuously moving his hands around his waistband as WPD officers yell for him to show his hands and drop the gun. The camera pans away from McDole the instant before the shotgun blast. Toward the end of the video, McDole reaches into his waistband with his right hand, then begins pulling his right hand upward. A volley of shots is heard, but the camera pans away from McDole for a moment while the shots are being fired. Several law enforcement officers and civilians witnessed the shooting and the events leading up to it. These witnesses corroborated the claim of the corporals who fired at McDole that McDole failed to respond to law enforcement commands and continued moving his hands around his waistband when the shots were fired. The investigation also revealed that McDole’s DNA was located on the grip of the handgun recovered from his waistband and that there was gunshot residue was on McDole’s right palm and shirt sleeve.
There is insufficient evidence to disprove the corporals’ claims that they shot McDole in self-defense and in defense of nearby civilians and fellow officers. Other witnesses also corroborate Dellose’s claim that McDole was reaching into his side immediately before Dellose fired his shotgun, even though the video does not capture that precise moment. Accordingly, the government cannot disprove that Dellose saw a handgun or believed he saw a handgun. When Silva, MacColl and Lynch fired their weapons a few moments later, they had reason to believe that McDole had a gun that he had recently fired. They also knew that McDole had not responded to repeated commands to show his hands and drop the gun, was reaching into his waistband and was at that moment pulling his hand upward. The testimonial, video and physical evidence corroborates the corporals’ version of the events.
Accordingly, after extensive investigation into this incident, the federal review of this incident has been closed without prosecution. This decision is limited strictly to an application of the high legal standard required to prosecute the case under the federal civil rights statute; it does not reflect an assessment of any other aspect of the incident that led to McDole’s death.
The U.S. Attorney’s Office of the District of Delaware and the Civil Rights Division are committed to investigating allegations of civil rights violations by law enforcement officers and will continue to devote the resources required to ensure that all allegations of serious civil rights violations are fully and completely investigated. The department will aggressively prosecute criminal civil rights violations whenever there is sufficient evidence to do so.
Federal Jury Convicts Fort Hall Man of Second Degree MurderRead the Press Release
POCATELLO – Demetrius Gomez, 29, of Fort Hall, Idaho, was convicted yesterday by a federal jury in Pocatello of second degree murder, U.S. Attorney Wendy J. Olson announced. Gomez was charged by indictment on May 24, 2016.
to the evidence presented at trial, on May 9, 2016, Gomez shot and killed his cousin at a residence in Fort Hall, Idaho. The evidence showed that Gomez murdered the victim deliberately and intentionally at close range by a shotgun.
Sentencing is set for March 21, 2017, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello. Gomez faces up to life in prison, a maximum fine of $250,000, and up to three five of supervised release.
The case was investigated by the Federal Bureau of Investigation (FBI), Fort Hall Tribal Police and the Pocatello Police Department.
Dupree Man Sentenced for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Dupree, South Dakota, man convicted of Assault by Striking, Beating, and Wounding was sentenced on January 4, 2017, by U.S. Magistrate Judge Mark A. Moreno.
Kelly Gene Clown, age 41, was sentenced to 6 months in custody, 1 year of supervised release, and a $25 special assessment to the Federal Crime Victims Fund.
Clown was indicted by a federal grand jury on March 15, 2016, for Assault With a Dangerous Weapon. He pled guilty to Assault by Striking, Beating, and Wounding on October 4, 2016.
The conviction stemmed from an incident that took place near Thunder Butte on May 23, 2015, when Clown assaulted the victim by hitting and kicking him in the face.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Clown was ordered to self-report to the U.S. Marshals Service by January 20, 2017, to begin serving his sentence.
Doctor Sentenced to Probation, Community Service for Illegally Distributing Controlled Substance and Health Care FraudRead the Press Release
PITTSBURGH - A resident of Hermitage, Pennsylvania has been sentenced in federal court to three years’ probation, ordered to pay restitution in the amount of $15,695, a $6,000 fine and to serve 150 hours of community service focused on the amelioration of the opioid epidemic, on his conviction of possession with intent to distribute and distribution of Tramadol, a Schedule IV controlled substance, and health care fraud, Acting United States Attorney Soo C. Song announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Dr. Anthony Rossi, 66, of Hermitage, Pennsylvania.
According to information presented to the court, Rossi, a medical doctor, illegally distributed a controlled substance, Tramadol, for cash. Further, Dr. Rossi submitted false claims to Medicaid for health care services, including injections, which were never provided.
Assistant United States Attorney Robert S. Cessar prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Federal Bureau of Investigation, the Drug Enforcement Administration and the U.S. Department of Health and Human Services – Office of Inspector General for the investigation leading to the successful prosecution of Rossi.